Kewaunee Scientific Reports Results for First Quarter of Fiscal Year 2025
Fiscal Year 2025 First Quarter Results:
Sales during the first quarter of fiscal year 2025 were
The Company's order backlog was
Domestic Segment
- Domestic sales for the quarter were
International Segment
- International sales for the quarter were
Corporate Segment
– Corporate segment pre-tax net loss was
Total cash on hand on
The Company had short-term debt of
"Our financial performance for the first quarter of fiscal year 2025 was solid," said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer. "Domestic segment operating performance was improved when compared to last year's first quarter as our manufacturing loadings remain at a consistent level. Site delays in
"Looking ahead, our backlog remains strong and quoting for new projects remains high, providing a line of sight to another strong year for the Company."
______________________________ |
1 EBITDA is a non-GAAP financial measure. See the table below for a reconciliation of EBITDA and segment EBITDA to net earnings (loss), the most directly comparable GAAP measure. |
EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA Reconciliation
Quarter Ended |
|
Domestic |
|
International |
|
Corporate |
|
Consolidated |
Net Earnings (Loss) |
|
$ 2,711 |
|
$ 469 |
|
$ (706) |
|
$ 2,474 |
Add/(Less): |
|
|
|
|
|
|
|
|
Interest Expense |
|
380 |
|
36 |
|
14 |
|
430 |
Interest Income |
|
— |
|
(213) |
|
(1) |
|
(214) |
Income Taxes |
|
913 |
|
282 |
|
(298) |
|
897 |
Depreciation and Amortization |
|
574 |
|
96 |
|
48 |
|
718 |
EBITDA |
|
$ 4,578 |
|
$ 670 |
|
$ (943) |
|
$ 4,305 |
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Domestic |
|
International |
|
Corporate |
|
Consolidated |
Net Earnings (Loss) |
|
$ 2,871 |
|
$ 463 |
|
$ (1,141) |
|
$ 2,193 |
Add/(Less): |
|
|
|
|
|
|
|
|
Interest Expense |
|
441 |
|
21 |
|
10 |
|
472 |
Interest Income |
|
— |
|
(174) |
|
(173) |
|
(347) |
Income Taxes |
|
764 |
|
279 |
|
(851) |
|
192 |
Depreciation and Amortization |
|
662 |
|
107 |
|
46 |
|
815 |
EBITDA |
|
$ 4,738 |
|
$ 696 |
|
$ (2,109) |
|
$ 3,325 |
Professional Fees |
|
— |
|
— |
|
7302 |
|
730 |
Adjusted EBITDA |
|
$ 4,738 |
|
$ 696 |
|
$ (1,379) |
|
$ 4,055 |
____________________ |
2 Professional fees not related to our core business |
Adjusted Consolidated Statement of Operations Reconciliation
|
Three Months Ended
|
|||
|
As Reported |
Professional |
Adjusted
|
2023 |
Net sales |
$ 48,393 |
$ — |
$ 48,393 |
$ 49,839 |
Cost of products sold |
35,905 |
— |
35,905 |
37,925 |
Gross profit |
12,488 |
— |
12,488 |
11,914 |
Operating expenses |
9,913 |
7303 |
9,183 |
8,106 |
Operating profit |
2,575 |
730 |
3,305 |
3,808 |
Pension expense |
— |
— |
— |
(41) |
Other income, net |
327 |
— |
327 |
75 |
Interest expense |
(472) |
— |
(472) |
(430) |
Profit before income taxes |
2,430 |
730 |
3,160 |
3,412 |
Income tax expense |
192 |
1534 |
345 |
897 |
Net earnings |
2,238 |
577 |
2,815 |
2,515 |
Less: Net earnings attributable to the non-controlling interest |
45 |
— |
45 |
41 |
Net earnings attributable to |
$ 2,193 |
$ 577 |
$ 2,770 |
$ 2,474 |
|
|
|
|
|
Net earnings per share attributable to |
|
|
|
|
Basic |
$ 0.77 |
$ 0.20 |
$ 0.97 |
$ 0.87 |
Diluted |
$ 0.74 |
$ 0.19 |
$ 0.93 |
$ 0.86 |
___________________ |
3 Professional fees not related to our core business |
4 Estimated tax impact of professional fees not related to our core business |
About Non-GAAP Measures
The Company includes non-GAAP financial measures such as adjusted net earnings and adjusted net earnings per share, in the information provided with this press release as supplemental information relating to its operating results. Adjusted net earnings represents GAAP net earnings adjusted for professional fees not related to its core business and the corresponding tax impact. This financial information is not in accordance with, or an alternative for, GAAP-compliant financial information and may be different from the operating or non-GAAP financial information used by other companies. The Company believes that this presentation of adjusted net earnings and adjusted net earnings per share provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations.
EBITDA and Segment EBITDA are calculated as net earnings (loss), less interest expense and interest income, income taxes, depreciation, and amortization. Adjusted EBITDA and Adjusted Segment EBITDA are calculated as EBITDA or Segment EBITDA less the impact of the professional fees not related to the Company's core business that were incurred during FY25, as discussed in more detail above. We believe EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA allow management and investors to compare our performance to other companies on a consistent basis without regard to depreciation and amortization or the costs incurred related to our one-time pension termination transaction executed during fiscal year 2024, which can vary significantly between companies depending upon many factors. EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA are not calculations based upon generally accepted accounting principles, and the method for calculating EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA can vary among companies. The amounts included in the EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA calculations, however, are derived from amounts included in the historical consolidated statements of operations. EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA should not be considered as alternatives to net earnings (loss) or operating earnings (loss) as an indicator of the Company's operating performance, or as an alternative to operating cash flows as a measure of liquidity.
About
Founded in 1906,
The Company's corporate headquarters are located in
This press release contains statements that the Company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors that could significantly impact results or achievements expressed or implied by such forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to: competitive and general economic conditions, including disruptions from government mandates, both domestically and internationally, as well as supplier constraints and other supply disruptions; changes in customer demands; technological changes in our operations or in our industry; dependence on customers' required delivery schedules; risks related to fluctuations in the Company's operating results from quarter to quarter; risks related to international operations, including foreign currency fluctuations; changes in the legal and regulatory environment; changes in raw materials and commodity costs; acts of terrorism, war, governmental action, and natural disasters and other Force Majeure events. The cautionary statements made pursuant to the Reform Act herein and elsewhere by us should not be construed as exhaustive. We cannot always predict what factors would cause actual results to differ materially from those indicated by the forward-looking statements. Over time, our actual results, performance, or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such difference might be significant and harmful to our stockholders' interest. Many important factors that could cause such a difference are described under the caption "Risk Factors," in Item 1A of our Annual Report on Form 10-K for the fiscal year ended
Condensed Consolidated Statements of Operations (Unaudited) ($ and shares in thousands, except per share amounts) |
|||
|
|||
|
Three Months Ended
|
||
|
2024 |
|
2023 |
Net sales |
$ 48,393 |
|
$ 49,839 |
Cost of products sold |
35,905 |
|
37,925 |
Gross profit |
12,488 |
|
11,914 |
Operating expenses |
9,913 |
|
8,106 |
Operating profit |
2,575 |
|
3,808 |
Pension expense |
— |
|
(41) |
Other income, net |
327 |
|
75 |
Interest expense |
(472) |
|
(430) |
Profit before income taxes |
2,430 |
|
3,412 |
Income tax expense |
192 |
|
897 |
Net earnings |
2,238 |
|
2,515 |
Less: Net earnings attributable to the non-controlling interest |
45 |
|
41 |
Net earnings attributable to |
$ 2,193 |
|
$ 2,474 |
|
|
|
|
Net earnings per share attributable to |
|
|
|
Basic |
$ 0.77 |
|
$ 0.87 |
Diluted |
$ 0.74 |
|
$ 0.86 |
Weighted average number of common shares outstanding |
|
|
|
Basic |
2,849 |
|
2,860 |
Diluted |
2,967 |
|
2,885 |
Condensed Consolidated Balance Sheets ($ in thousands) |
|||
|
|||
|
|
|
|
|
(Unaudited) |
|
|
Assets |
|
|
|
Cash and cash equivalents |
$ 24,211 |
|
$ 23,267 |
Restricted cash |
975 |
|
2,671 |
Receivables, less allowances |
43,545 |
|
45,064 |
Inventories |
19,285 |
|
20,679 |
Prepaid expenses and other current assets |
4,683 |
|
5,136 |
Total Current Assets |
92,699 |
|
96,817 |
Net Property, Plant and Equipment |
17,112 |
|
17,649 |
Right of use assets |
6,944 |
|
7,454 |
Deferred income taxes |
8,091 |
|
7,401 |
Other assets |
7,172 |
|
5,445 |
Total Assets |
$ 132,018 |
|
$ 134,766 |
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Short-term borrowings |
$ 3,627 |
|
$ 3,099 |
Current portion of lease obligations |
2,144 |
|
2,234 |
Current portion of financing liability |
731 |
|
713 |
Accounts payable |
20,619 |
|
23,262 |
Other Current Liabilities |
9,566 |
|
11,472 |
Total Current Liabilities |
36,687 |
|
40,780 |
Long-term portion of lease obligations |
5,333 |
|
5,669 |
Long-term portion of financing liability |
27,227 |
|
27,420 |
Other non-current liabilities |
5,258 |
|
4,688 |
Total Liabilities |
74,505 |
|
78,557 |
Kewaunee Scientific Corporation Equity |
56,023 |
|
54,760 |
Non-controlling interest |
1,490 |
|
1,449 |
Total Stockholders' Equity |
57,513 |
|
56,209 |
Total Liabilities and Stockholders' Equity |
$ 132,018 |
|
$ 134,766 |
Contact: |
Donald T. Gardner III |
|
704/871-3274 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/kewaunee-scientific-reports-results-for-first-quarter-of-fiscal-year-2025-302245693.html
SOURCE