Kewaunee Scientific Reports Results for Second Quarter of Fiscal Year 2025

Core Insights - Kewaunee Scientific Corporation reported a decrease in sales for the second quarter of fiscal year 2025, with total sales of $47.76 million, down 5.3% from $50.44 million in the same quarter last year [2] - The company experienced a decline in pre-tax earnings, which fell by 18.9% to $3.93 million compared to $4.85 million in the prior year quarter, while net earnings increased to $3.01 million from $2.73 million [2][9] - The order backlog reached a record high of $184.4 million as of October 31, 2024, compared to $146.3 million a year earlier, indicating strong future demand [3] Financial Performance - Domestic sales increased by 6.5% to $36.41 million, driven by higher product demand, while net earnings for the domestic segment rose to $4.52 million from $3.05 million [4] - International sales saw a significant decline of 30.1%, totaling $11.36 million, attributed to construction site delays in India, impacting delivery schedules [5] - The corporate segment reported a pre-tax net loss of $2.44 million, worsening from a loss of $1.24 million in the prior year, primarily due to increased professional service fees related to the acquisition of Nu Aire, Inc. [6] Cash and Debt Position - The company had total cash on hand of $29.66 million as of October 31, 2024, an increase from $25.94 million on April 30, 2024 [7] - Short-term debt decreased to $805,000 from $3.10 million, while long-term debt slightly decreased to $28.05 million from $28.48 million [8] - The debt-to-equity ratio improved to 0.59-to-1 from 0.70-to-1, indicating a stronger balance sheet [8] Strategic Developments - The acquisition of Nu Aire, Inc. was completed on November 1, 2024, which is expected to enhance Kewaunee's capabilities in laboratory furnishings and expand its market reach [9][14] - The company incurred $2.3 million in expenses related to the acquisition during the current fiscal year, which will impact future financial results [9][12] - Kewaunee's management expressed confidence in the company's backlog and market position, anticipating a strong performance in the upcoming fiscal year [9]