Core Insights - Kewaunee Scientific Corporation reported a strong sales increase of 43.6% in Q3 FY2025, reaching $67.17 million compared to $46.78 million in the same quarter last year [2] - Despite the sales growth, pre-tax earnings decreased by 63.7% to $1.28 million, and net earnings fell to $1.35 million from $2.52 million year-over-year [2][4] - The company completed the acquisition of Nu Aire, which significantly impacted financial results due to associated costs and integration efforts [3][6] Financial Performance - Sales for Q3 FY2025 were $67.17 million, a 43.6% increase from $46.78 million in Q3 FY2024 [2] - Pre-tax earnings were $1.28 million, down 63.7% from $3.52 million in the prior year [2] - Net earnings decreased to $1.35 million from $2.52 million year-over-year [2] - EBITDA for the quarter was $3.73 million, compared to $4.41 million in the prior year [2] Adjusted Financial Metrics - After adjusting for acquisition-related costs, adjusted pre-tax earnings were $3.79 million, up 7.8% from $3.52 million in the prior year [4] - Adjusted net earnings were $3.26 million compared to $2.52 million in the prior year [4] - Adjusted EBITDA for the quarter was $5.73 million, an increase from $4.41 million in the prior year [4] Segment Performance - Domestic sales increased by 63.6% to $51.98 million, with net earnings of $2.88 million compared to $2.63 million in the prior year [7] - International sales saw a modest increase of 1.2% to $15.19 million, but net earnings fell to $476,000 from $923,000 due to customer site delays [8] - The corporate segment reported a pre-tax net loss of $3.03 million, worsening from a loss of $1.07 million in the prior year [9] Order Backlog and Strategic Initiatives - The company's order backlog reached $221.6 million, up from $152.3 million a year ago, indicating strong demand [5][13] - The acquisition of Nu Aire is expected to enhance Kewaunee's product offerings and market position, particularly in the domestic segment [6][12] - Kewaunee emphasizes investments in manufacturing and strengthening dealer relationships to drive growth [12] Cash and Debt Position - Total cash on hand was $12.34 million, down from $25.94 million at the end of April 2024 [10] - Short-term debt decreased to $1.13 million, while long-term debt increased significantly to $65.82 million, reflecting the impact of the Nu Aire acquisition [11] Management Commentary - The CEO highlighted the company's operational performance and strategic focus on manufacturing investments and market leadership [12] - The company is committed to delivering strong results for the remainder of FY2025, with a focus on operational excellence and customer success [12][13]
Kewaunee Scientific Reports Results for Third Quarter of Fiscal Year 2025