Kewaunee Scientific Reports Results for First Quarter of Fiscal Year 2025

Core Viewpoint - Kewaunee Scientific Corporation reported a decline in sales and earnings for the first quarter of fiscal year 2025, but maintains a strong order backlog and positive outlook for future performance [2][9]. Financial Performance - Sales for the first quarter were $48,393,000, down 2.9% from $49,839,000 in the same quarter last year [2]. - Pre-tax earnings decreased by 28.8% to $2,430,000 compared to $3,412,000 in the prior year [2]. - Net earnings were $2,193,000, a decrease from $2,474,000 in the previous year [2]. - EBITDA for the quarter was $3,325,000, down from $4,305,000 in the prior year [2]. Segment Performance - Domestic Segment: - Sales increased slightly to $35,523,000, up 0.3% from $35,420,000 in the prior year [4]. - Net earnings rose to $2,871,000 from $2,711,000 [4]. - EBITDA improved to $4,738,000 compared to $4,578,000 in the previous year [4]. - International Segment: - Sales decreased by 10.7% to $12,870,000 from $14,419,000 [5]. - Net earnings were slightly lower at $463,000 compared to $469,000 [5]. - EBITDA increased to $696,000 from $670,000 [5]. - Corporate Segment: - Pre-tax net loss increased to $1,992,000 from $1,004,000 [6]. - Corporate segment EBITDA was ($2,109,000), worsening from ($943,000) in the prior year [6]. Order Backlog - The order backlog stood at $159.4 million as of July 31, 2024, up from $140.8 million a year earlier and $155.6 million as of April 30, 2024 [3]. Cash and Debt Position - Total cash on hand was $25,186,000, down from $25,938,000 on April 30, 2024 [7]. - Working capital increased to $56,012,000 from $49,291,000 a year ago [7]. - Short-term debt rose to $3,627,000 from $3,099,000 [8]. - Long-term debt was $28,293,000, slightly down from $28,479,000 [8]. - The debt-to-equity ratio was 0.68-to-1, improved from 0.70-to-1 [8]. Management Commentary - The CEO noted that the financial performance was solid despite challenges, particularly due to site delays in India affecting product shipments [9]. - The company remains optimistic about its backlog and quoting for new projects, indicating potential for a strong year ahead [9].