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Kewaunee Scientific Declares Quarterly Dividend
and Reports Results for Third Quarter
|Thomas D. Hull III|
STATESVILLE, N.C. February 26, 2019PRNewswire / Kewaunee Scientific Corporation (NASDAQ: KEQU) today reported results for its third quarter of fiscal year 2019, ended January 31, 2019.
Sales for the quarter were $32,372,000, a 15.2% decrease from sales of $38,190,000 in the prior year third quarter. Domestic sales for the quarter were $25,217,000, down 15.2% from sales of $29,734,000 in the third quarter of last year. International sales for the quarter were $7,155,000, down 15.4% from sales of $8,456,000 in the third quarter last year.
Domestic sales decreased year-over-year as the activity in the marketplace slowed dramatically throughout the quarter. The slowdown, felt across the Companys direct, dealer, and distribution channels, reduced production below the rate necessary to generate favorable financial results. International sales decreased similarly, with strength in the Indian market being offset by softness in the Middle East and Asian markets. Also negatively impacting Kewaunees International segment performance was a year-over-year decline in the exchange rate of the Indian rupee versus the US dollar.
Pre-tax earnings for the quarter were $35,000 compared to $2,484,000 for the prior year period. Pre-tax earnings were impacted by the year-over-year decline in sales, increases in raw material costs and the previously mentioned foreign exchange impact. Net earnings decreased 103% for the quarter to a loss of ($22,000), or ($0.01) per diluted share, as compared to net earnings of $883,000, or $0.31 per diluted share, for the quarter ended January 31, 2018.
The Companys order backlog is $96 million at January 31, 2019, as compared to $101 million at October 31, 2018 and $116 million at January 31, 2018. The Company continues to have a strong volume of outstanding quotations globally and is aggressively pursuing these projects.
The Companys balance sheet and financial condition remain strong. Unrestricted cash on hand was $10.8 million at the end of the quarter, as compared to $9.2 million at the end of the third quarter last year. Working capital was $36.1 million, as compared to $36.2 million at the end of the third quarter last year. Short-term debt and interest rate swaps were $5.1 million at the end of the quarter, as compared to $4.8 million at the end of the third quarter last year, and long-term debt was $526,000 as compared to $1.6 million at the end of the third quarter last year. The debt-to-equity ratio at January 31, 2019 was .14-to-1, as compared to .16-to-1 at January 31, 2018.
The following information was filed by Kewaunee Scientific Corp (KEQU) on Wednesday, February 27, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.