EX-99.1 3 e16300ex99_1.txt PRESS RELEASE Exhibit 99.1 Kewaunee Scientific Announces Second Quarter Results STATESVILLE, N.C., Nov. 21 /PRNewswire-FirstCall/ -- Kewaunee Scientific Corporation (Nasdaq: KEQU) today reported results for its second quarter ended October 31, 2003. Sales for the quarter were $24,384,000, an increase of 22.5% from sales in the same period last year. Sales of laboratory products increased 24.7% to $22,741,000, with increased sales occurring across all major product lines. Sales of technical products were flat with the same period last year. The order backlog remained healthy at $46.3 million at October 31, 2003. Net earnings for the quarter were $418,000, or $.17 per diluted share. Earnings for the quarter were reduced by after-tax employee severance costs of $92,000. For the same period last year, a net loss of $124,000, or $.05 per diluted share, was reported. The prior year net loss included after-tax non- recurring charges of $470,000. Excluding the non-recurring costs in each period, net earnings in the current quarter improved 47% over last year. Earnings for the quarter benefited from the increased sales volume, improved manufacturing efficiencies, and expense reduction activities. "The second quarter was an excellent sales quarter," said William A. Shumaker, President and Chief Executive Officer of Kewaunee. "Strong sales increases occurred in all of our major laboratory markets. Our manufacturing operations performed significantly better than the previous quarter, but we are not satisfied with the level of earnings. A number of actions have been taken to reduce costs and improve our profitability. We recently reduced our workforce in Statesville by 9%. Additionally, we have reduced our raw material costs, improved certain manufacturing processes, and reduced our on- going overhead expenses in a number of areas. With these lower costs and the volume of orders in the backlog scheduled for delivery in the third and fourth quarters, we expect improved operating results for the remainder of our fiscal year, particularly for the fourth quarter." Sales for the six months ended October 31, 2003 were $48,597,000, an increase of 23.6% from sales in the comparable period last year. Sales of laboratory products increased 25.0%, while sales of technical products increased 7.4%. Net earnings for the six months were $879,000, or $.35 per diluted share, as compared to net earnings of $200,000, or $.08 per diluted share, in the comparable period last year. Net earnings for the current year were reduced by after-tax severance costs of $92,000 and were increased by a net after-tax gain of $189,000 resulting from the resolution of a disputed claim for laboratory furniture sold by the Company. Net earnings for the comparable period last year were reduced by after-tax non-recurring charges of $470,000. Kewaunee Scientific Corporation is a recognized leader in the design, manufacture, and installation of scientific and technical furniture. The Company's corporate headquarters and manufacturing facilities are located in Statesville, North Carolina. Kewaunee Scientific's website is located at http://www.kewaunee.com. Certain statements in this release constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could significantly impact results or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, economic, competitive, governmental, and technological factors affecting the Company's operations, markets, products, services, and prices. [see financial information on back of page] Condensed Consolidated Statements of Operations (unaudited) (in thousands, except per share data) 3 Months Ended 6 Months Ended October 31 October 31 2003 2002 2003 2002 Net sales $24,384 $19,905 $48,597 $39,310 Cost of products sold 20,280 16,762 40,890 32,726 Gross profit 4,104 3,143 7,707 6,584 Operating expenses 3,321 3,362 6,322 6,260 Operating earnings (loss) 783 (219) 1,385 324 Other (expense) income (130) 27 (12) (14) Earnings (loss) before income taxes 653 (192) 1,373 310 Income tax expense (credit) 235 (68) 494 110 Net earnings (loss) $418 $(124) $879 $200 Net earnings (loss) per share Basic $0.17 ($0.05) $0.35 $0.08 Diluted $0.17 ($0.05) $0.35 $0.08 Weighted average number of common shares outstanding (in thousands) Basic 2,486 2,479 2,485 2,475 Diluted 2,491 2,485 2,490 2,485 Condensed Consolidated Balance Sheets (in thousands) October 31 April 30 Assets 2003 2003 (unaudited) Cash and cash equivalents $796 $520 Receivables, less allowances 21,930 16,138 Inventories 4,740 5,958 Prepaid expenses and other current assets 1,433 2,370 Total current assets 28,899 24,986 Net property, plant and equipment 11,965 11,791 Other assets 6,461 6,877 Total Assets $47,325 $43,654 Liabilities and Stockholders' Equity Short-term borrowings $4,740 $1,416 Current portion of long-term debt 1,118 681 Accounts payable 5,558 8,338 Other current liabilities 4,583 2,893 Total current liabilities 15,999 13,328 Long-term debt 1,490 1,249 Other non-current liabilities 3,303 3,139 Total stockholders' equity 26,533 25,938 Total Liabilities and Stockholders' Equity $47,325 $43,654 Contact: D. Michael Parker 704/871-3290 SOURCE Kewaunee Scientific Corporation -0- 11/21/2003 /CONTACT: D. Michael Parker of Kewaunee Scientific Corporation, +1-704-871-3290/ /Web site: http://www.kewaunee.com / (KEQU) CO: Kewaunee Scientific Corporation ST: North Carolina IN: CPR SU: ERN