|
☒
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
38-0715562
|
(State or other jurisdiction of
incorporation or organization)
|
|
(IRS Employer
Identification No.)
|
|
|
|
2700 West Front Street
Statesville, North Carolina
|
|
28677-2927
|
(Address of principal executive offices)
|
|
(Zip Code)
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Title of Each Class
|
Trading Symbol(s)
|
Name of Exchange on which registered
|
Common Stock $2.50 par value
|
KEQU
|
NASDAQ Global Market
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐ (Do not check if a smaller reporting company)
|
Smaller reporting company
|
☒
|
|
|
Emerging growth company
|
☐
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|
Table of Contents
|
|
Page or
Reference
|
|
|
|
|
|
|
|
|
|
|
|
|
•
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Failing to anticipate the need for, appropriately invest in and effectively manage the human, information technology and logistical resources necessary to support our business, including managing the costs associated with such resources;
|
•
|
Increased costs, and the need to devote additional resources to comply with more stringent SEC reporting requirements if we become an “accelerated filer” under applicable SEC rules;
|
•
|
Failing to generate sufficient future positive operating cash flows and, if necessary, secure adequate external financing to fund our growth; and
|
•
|
Interruptions in service by common carriers that ship goods within our distribution channels.
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
2019
|
|
|
|
|
|
|
|
High
|
$38.80
|
|
$35.05
|
|
$34.84
|
|
$32.70
|
Low
|
$30.50
|
|
$25.97
|
|
$22.00
|
|
$20.21
|
Close
|
$31.60
|
|
$29.21
|
|
$32.16
|
|
$22.63
|
|
|
|
|
|
|
|
|
2018
|
|
|
|
|
|
|
|
High
|
$25.75
|
|
$31.20
|
|
$30.67
|
|
$34.95
|
Low
|
$22.75
|
|
$25.10
|
|
$24.56
|
|
$25.15
|
Close
|
$25.37
|
|
$28.50
|
|
$28.80
|
|
$34.95
|
|
|
||||||||
$ and shares in thousands, except per share amounts
|
2019
|
|
2018
As Adjusted
|
|
|
||||
OPERATING STATEMENT DATA:
|
|
|
|
|
|
||||
Net sales
|
$
|
146,550
|
|
|
$
|
158,050
|
|
|
|
Cost of products sold
|
121,231
|
|
|
125,891
|
|
|
|
||
Gross profit
|
25,319
|
|
|
32,159
|
|
|
|
||
Operating expenses
|
23,207
|
|
|
22,240
|
|
|
|
||
Operating earnings
|
2,112
|
|
|
9,919
|
|
|
|
||
Other income (expense), net
|
389
|
|
|
(1
|
)
|
|
|
||
Interest expense
|
(367
|
)
|
|
(299
|
)
|
|
|
||
Earnings before income taxes
|
2,134
|
|
|
9,619
|
|
|
|
||
Income tax expense
|
446
|
|
|
4,161
|
|
|
|
||
Net earnings
|
1,688
|
|
|
5,458
|
|
|
|
||
Less: net earnings attributable to noncontrolling interest
|
159
|
|
|
177
|
|
|
|
||
Net earnings attributable to Kewaunee Scientific Corporation
|
$
|
1,529
|
|
|
$
|
5,281
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
||||
Basic
|
2,742
|
|
|
2,720
|
|
|
|
||
Diluted
|
2,794
|
|
|
2,777
|
|
|
|
||
PER SHARE DATA:
|
|
|
|
|
|
||||
Net earnings attributable to Kewaunee Scientific Corporation stockholders
|
|
|
|
|
|
||||
Basic
|
$
|
0.56
|
|
|
$
|
1.94
|
|
|
|
Diluted
|
$
|
0.55
|
|
|
$
|
1.90
|
|
|
|
Cash dividends
|
$
|
0.74
|
|
|
$
|
0.66
|
|
|
|
Year-end book value
|
$
|
17.15
|
|
|
$
|
17.46
|
|
|
|
Contractual Cash Obligations
|
Total
|
|
1 Year
|
|
2-3 Years
|
|
4-5 Years
|
|
After 5 years
|
||||||||||
Operating Leases
|
$
|
5,565
|
|
|
$
|
1,246
|
|
|
$
|
1,602
|
|
|
$
|
981
|
|
|
$
|
1,736
|
|
Long-term Debt and Capital Lease Obligations
|
1,413
|
|
|
1,185
|
|
|
138
|
|
|
50
|
|
|
40
|
|
|||||
Total Contractual Cash Obligations
|
$
|
6,978
|
|
|
$
|
2,431
|
|
|
$
|
1,740
|
|
|
$
|
1,031
|
|
|
$
|
1,776
|
|
|
Page
|
Consolidated Financial Statements
|
|
Years Ended April 30
|
|
Kewaunee Scientific Corporation
|
||||||||
|
|
|
|
|
|
|
||||
$ and shares in thousands, except per share amounts
|
|
2019
|
|
2018
As Adjusted
|
|
|
||||
Net sales
|
|
$
|
146,550
|
|
|
$
|
158,050
|
|
|
|
Cost of products sold
|
|
121,231
|
|
|
125,891
|
|
|
|
||
Gross profit
|
|
25,319
|
|
|
32,159
|
|
|
|
||
Operating expenses
|
|
23,207
|
|
|
22,240
|
|
|
|
||
Operating earnings
|
|
2,112
|
|
|
9,919
|
|
|
|
||
Other income (expenses), net
|
|
389
|
|
|
(1
|
)
|
|
|
||
Interest expense
|
|
(367
|
)
|
|
(299
|
)
|
|
|
||
Earnings before income taxes
|
|
2,134
|
|
|
9,619
|
|
|
|
||
Income tax expense
|
|
446
|
|
|
4,161
|
|
|
|
||
Net earnings
|
|
1,688
|
|
|
5,458
|
|
|
|
||
Less: net earnings attributable to the noncontrolling interest
|
|
159
|
|
|
177
|
|
|
|
||
Net earnings attributable to Kewaunee Scientific Corporation
|
|
$
|
1,529
|
|
|
$
|
5,281
|
|
|
|
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders
|
|
|
|
|
|
|
||||
Basic
|
|
$
|
0.56
|
|
|
$
|
1.94
|
|
|
|
Diluted
|
|
$
|
0.55
|
|
|
$
|
1.90
|
|
|
|
Weighted average number of common shares outstanding
|
|
|
|
|
|
|
||||
Basic
|
|
2,742
|
|
|
2,720
|
|
|
|
||
Diluted
|
|
2,794
|
|
|
2,777
|
|
|
|
Years Ended April 30
|
|
Kewaunee Scientific Corporation
|
||||||||
|
|
|
|
|
|
|
||||
$ in thousands
|
|
2019
|
|
2018
As Adjusted
|
|
|
||||
Net earnings
|
|
$
|
1,688
|
|
|
$
|
5,458
|
|
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
||||
Foreign currency translation adjustments
|
|
(464
|
)
|
|
(430
|
)
|
|
|
||
Change in unrecognized actuarial loss on pension obligations
|
|
(46
|
)
|
|
812
|
|
|
|
||
Change in fair value of cash flow hedges
|
|
3
|
|
|
37
|
|
|
|
||
Comprehensive income, net of tax
|
|
1,181
|
|
|
5,877
|
|
|
|
||
Less comprehensive income attributable to the noncontrolling interest
|
|
159
|
|
|
177
|
|
|
|
||
Total comprehensive income attributable to Kewaunee Scientific Corporation
|
|
$
|
1,022
|
|
|
$
|
5,700
|
|
|
|
Kewaunee Scientific Corporation
|
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
$ in thousands, except shares and per share amounts
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Treasury
Stock
|
|
Retained
Earnings As Adjusted
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Stockholders’
Equity
|
||||||||||||
Balance at April 30, 2017
|
|
6,789
|
|
|
2,695
|
|
|
(53
|
)
|
|
40,349
|
|
|
(6,319
|
)
|
|
43,461
|
|
||||||
Net earnings attributable to Kewaunee Scientific Corporation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,281
|
|
|
—
|
|
|
5,281
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
419
|
|
|
419
|
|
||||||
Cash dividends paid, $0.66 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,794
|
)
|
|
—
|
|
|
(1,794
|
)
|
||||||
Stock options exercised, 36,800 shares
|
|
52
|
|
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
||||||
Stock based compensation
|
|
—
|
|
|
351
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
351
|
|
||||||
Balance at April 30, 2018
|
|
6,841
|
|
|
3,006
|
|
|
(53
|
)
|
|
43,836
|
|
|
(5,900
|
)
|
|
47,730
|
|
||||||
Net earnings attributable to Kewaunee Scientific Corporation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,529
|
|
|
—
|
|
|
1,529
|
|
||||||
Other comprehensive income (expense)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(507
|
)
|
|
(507
|
)
|
||||||
Cash dividends paid, $0.74 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,030
|
)
|
|
—
|
|
|
(2,030
|
)
|
||||||
Stock options exercised, 19,800 shares
|
|
27
|
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock based compensation
|
|
7
|
|
|
154
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161
|
|
||||||
Cumulative adjustment for adoption of ASC 606, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
217
|
|
|
—
|
|
|
217
|
|
||||||
Balance at April 30, 2019
|
|
$
|
6,875
|
|
|
$
|
3,133
|
|
|
$
|
(53
|
)
|
|
$
|
43,552
|
|
|
$
|
(6,407
|
)
|
|
$
|
47,100
|
|
April 30
|
|
Kewaunee Scientific Corporation
|
|
|||||
$ and shares in thousands, except per share amounts
|
|
2019
|
|
2018 As Adjusted
|
||||
ASSETS
|
|
|
|
|
||||
Current Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
10,647
|
|
|
$
|
9,716
|
|
Restricted cash
|
|
509
|
|
|
1,242
|
|
||
Receivables, less allowance: $361 (2019); $384 (2018)
|
|
33,259
|
|
|
32,660
|
|
||
Inventories
|
|
17,206
|
|
|
18,549
|
|
||
Prepaid expenses and other current assets
|
|
3,736
|
|
|
2,224
|
|
||
Total Current Assets
|
|
65,357
|
|
|
64,391
|
|
||
Property, Plant and Equipment, Net
|
|
16,462
|
|
|
14,661
|
|
||
Other Assets
|
|
|
|
|
||||
Deferred income taxes
|
|
1,829
|
|
|
1,869
|
|
||
Other
|
|
3,575
|
|
|
4,162
|
|
||
Total Other Assets
|
|
5,404
|
|
|
6,031
|
|
||
Total Assets
|
|
$
|
87,223
|
|
|
$
|
85,083
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Current Liabilities
|
|
|
|
|
||||
Short-term borrowings and interest rate swaps
|
|
$
|
9,513
|
|
|
$
|
3,885
|
|
Current portion of long-term debt and lease obligations
|
|
1,184
|
|
|
1,167
|
|
||
Accounts payable
|
|
15,190
|
|
|
14,754
|
|
||
Employee compensation and amounts withheld
|
|
3,737
|
|
|
3,810
|
|
||
Deferred revenue
|
|
1,599
|
|
|
1,884
|
|
||
Other accrued expenses
|
|
1,510
|
|
|
2,116
|
|
||
Total Current Liabilities
|
|
32,733
|
|
|
27,616
|
|
||
Long-term debt and lease obligations
|
|
229
|
|
|
1,264
|
|
||
Accrued pension and deferred compensation costs
|
|
5,878
|
|
|
7,465
|
|
||
Other non-current liabilities
|
|
680
|
|
|
546
|
|
||
Total Liabilities
|
|
39,520
|
|
|
36,891
|
|
||
Commitments and Contingencies (Note 8)
|
|
|
|
|
||||
Stockholders’ Equity
|
|
|
|
|
||||
Common stock, $2.50 par value, Authorized—5,000 shares;
|
|
|
|
|
||||
Issued—2,750 shares (2019); 2,736 shares; (2018);
|
|
|
|
|
||||
Outstanding—2,747 shares (2019); 2,733 shares (2018);
|
|
6,875
|
|
|
6,841
|
|
||
Additional paid-in-capital
|
|
3,133
|
|
|
3,006
|
|
||
Retained earnings
|
|
43,552
|
|
|
43,836
|
|
||
Accumulated other comprehensive loss
|
|
(6,407
|
)
|
|
(5,900
|
)
|
||
Common stock in treasury, at cost: 3 shares
|
|
(53
|
)
|
|
(53
|
)
|
||
Total Kewaunee Scientific Corporation Stockholders’ Equity
|
|
47,100
|
|
|
47,730
|
|
||
Noncontrolling Interest
|
|
603
|
|
|
462
|
|
||
Total Stockholders' Equity
|
|
47,703
|
|
|
48,192
|
|
||
Total Liabilities and Stockholders’ Equity
|
|
$
|
87,223
|
|
|
$
|
85,083
|
|
Years Ended April 30
|
|
Kewaunee Scientific Corporation
|
||||||||
$ in thousands
|
|
2019
|
|
2018
As adjusted
|
|
|
||||
Cash Flows from Operating Activities
|
|
|
|
|
|
|
||||
Net earnings
|
|
$
|
1,688
|
|
|
$
|
5,458
|
|
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
|
||||
Depreciation
|
|
2,571
|
|
|
2,761
|
|
|
|
||
Bad debt provision
|
|
65
|
|
|
344
|
|
|
|
||
Stock based compensation expense
|
|
197
|
|
|
355
|
|
|
|
||
Provision for deferred income tax expense
|
|
202
|
|
|
1,127
|
|
|
|
||
Change in assets and liabilities:
|
|
|
|
|
|
|
||||
Receivables
|
|
(664
|
)
|
|
(3,115
|
)
|
|
|
||
Inventories
|
|
456
|
|
|
(2,866
|
)
|
|
|
||
Accounts payable and other accrued expenses
|
|
(55
|
)
|
|
4,606
|
|
|
|
||
Deferred revenue
|
|
(285
|
)
|
|
(3,922
|
)
|
|
|
||
Other, net
|
|
(1,685
|
)
|
|
(1,565
|
)
|
|
|
||
Net cash provided by operating activities
|
|
2,490
|
|
|
3,183
|
|
|
|
||
Cash Flows from Investing Activities
|
|
|
|
|
|
|
||||
Capital expenditures
|
|
(4,213
|
)
|
|
(3,395
|
)
|
|
|
||
Net cash used in investing activities
|
|
(4,213
|
)
|
|
(3,395
|
)
|
|
|
||
Cash Flows from Financing Activities
|
|
|
|
|
|
|
||||
Dividends paid
|
|
(2,030
|
)
|
|
(1,794
|
)
|
|
|
||
Dividends paid to noncontrolling interest in subsidiaries
|
|
(51
|
)
|
|
(74
|
)
|
|
|
||
Proceeds from short-term borrowings
|
|
62,646
|
|
|
59,069
|
|
|
|
||
Repayments on short-term borrowings
|
|
(57,018
|
)
|
|
(58,775
|
)
|
|
|
||
Payments on long-term debt and lease obligations
|
|
(1,177
|
)
|
|
(918
|
)
|
|
|
||
Net proceeds from exercise of stock options (including tax benefit)
|
|
(36
|
)
|
|
8
|
|
|
|
||
Net cash provided by (used in) financing activities
|
|
2,334
|
|
|
(2,484
|
)
|
|
|
||
Effect of exchange rate changes on cash, net
|
|
(413
|
)
|
|
(287
|
)
|
|
|
||
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
|
|
198
|
|
|
(2,983
|
)
|
|
|
||
Cash, Cash Equivalents and Restricted Cash at Beginning of Year
|
|
10,958
|
|
|
13,941
|
|
|
|
||
Cash, Cash Equivalents and Restricted Cash at End of Year
|
|
$
|
11,156
|
|
|
$
|
10,958
|
|
|
|
Supplemental Disclosure of Cash Flow Information
|
|
|
|
|
|
|
||||
Interest paid
|
|
$
|
352
|
|
|
$
|
295
|
|
|
|
Income taxes paid
|
|
$
|
2,460
|
|
|
$
|
2,872
|
|
|
|
$ in thousands
|
|
2019
|
|
2018
|
||||
Balance at beginning of year
|
|
$
|
384
|
|
|
$
|
191
|
|
Bad debt provision
|
|
65
|
|
|
344
|
|
||
Doubtful accounts written off (net)
|
|
(88
|
)
|
|
(151
|
)
|
||
Balance at end of year
|
|
$
|
361
|
|
|
$
|
384
|
|
$ in thousands
|
|
2019
|
|
2018
|
|
Useful Life
|
||||
Land
|
|
$
|
41
|
|
|
$
|
41
|
|
|
N/A
|
Building and improvements
|
|
16,594
|
|
|
16,489
|
|
|
10-40 years
|
||
Machinery and equipment
|
|
40,041
|
|
|
38,118
|
|
|
5-10 years
|
||
Total
|
|
56,676
|
|
|
54,648
|
|
|
|
||
Less accumulated depreciation
|
|
(40,214
|
)
|
|
(39,987
|
)
|
|
|
||
Net property, plant and equipment
|
|
$
|
16,462
|
|
|
$
|
14,661
|
|
|
|
Level 1
|
Quoted prices in active markets for identical assets or liabilities as of the reporting date.
|
Level 2
|
Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities as of the reporting date.
|
Level 3
|
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
|
|
2019
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Trading securities held in non-qualified compensation plans
(1)
|
$
|
3,057
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,057
|
|
Cash surrender value of life insurance policies
(1)
|
—
|
|
|
76
|
|
|
—
|
|
|
76
|
|
||||
Total
|
$
|
3,057
|
|
|
$
|
76
|
|
|
$
|
—
|
|
|
$
|
3,133
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Non-qualified compensation plans
(2)
|
$
|
—
|
|
|
$
|
3,519
|
|
|
$
|
—
|
|
|
$
|
3,519
|
|
Interest rate swap derivatives
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Total
|
$
|
—
|
|
|
$
|
3,520
|
|
|
$
|
—
|
|
|
$
|
3,520
|
|
|
2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Trading securities held in non-qualified compensation plans
(1)
|
$
|
4,050
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,050
|
|
Cash surrender value of life insurance policies
(1)
|
—
|
|
|
65
|
|
|
—
|
|
|
65
|
|
||||
Total
|
$
|
4,050
|
|
|
$
|
65
|
|
|
$
|
—
|
|
|
$
|
4,115
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Non-qualified compensation plans
(2)
|
$
|
—
|
|
|
$
|
4,462
|
|
|
$
|
—
|
|
|
$
|
4,462
|
|
Interest rate swap derivatives
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||
Total
|
$
|
—
|
|
|
$
|
4,467
|
|
|
$
|
—
|
|
|
$
|
4,467
|
|
(1)
|
The Company maintains
two
non-qualified compensation plans which include investment assets in a rabbi trust. These assets consist of marketable securities, which are valued using quoted market prices multiplied by the number of shares owned, and life insurance policies, which are valued at their cash surrender value.
|
(2)
|
Plan liabilities are equal to the individual participants’ account balances and other earned retirement benefits.
|
Shares in thousands
|
|
2019
|
|
2018
|
|
||
Weighted average common shares outstanding
|
|
|
|
|
|
||
Basic
|
|
2,742
|
|
|
2,720
|
|
|
Dilutive effect of stock options and RSUs
|
|
52
|
|
|
57
|
|
|
Weighted average common shares outstanding—diluted
|
|
2,794
|
|
|
2,777
|
|
|
•
|
Under the modified retrospective approach, the Company elected to reassess revenue recognition under ASC 606 for only those contracts open as of the adoption date.
|
•
|
The portfolio approach was applied in evaluating the accounting for the cost of obtaining a contract.
|
•
|
Payment terms with the Company's customers which are one year or less are not considered a significant financing component.
|
•
|
The Company excludes from revenues taxes it collects from customers that are assessed by a government authority. This is primarily relevant to domestic sales but also includes taxes on some international sales which are also excluded from the transaction price.
|
•
|
The Company's incremental cost to obtain a contract is limited to sales commissions. The Company applies the practical expedient to expense commissions as incurred for contracts having a duration of one year or less. Sales commissions related to contracts with a duration of greater than one year are immaterial to the Company’s consolidated financial position and results of operations and are also expensed as incurred.
|
|
Twelve Months Ended April 30, 2019
|
|||||||||||
|
Domestic
|
International
|
|
Total
|
||||||||
Over Time
|
$
|
110,338
|
|
|
$
|
29,964
|
|
|
$
|
140,302
|
|
|
Point in Time
|
|
6,248
|
|
|
|
—
|
|
|
|
6,248
|
|
|
Total Revenue
|
$
|
116,586
|
|
|
$
|
29,964
|
|
|
$
|
146,550
|
|
|
|
Twelve Months Ended April 30, 2019
|
||||||||||
|
($ in thousands, except per share amounts)
|
||||||||||
|
As Reported
|
|
Adjustments
|
|
Balance Without
Adoption of
ASC 606
|
||||||
Net sales
|
$
|
146,550
|
|
|
$
|
(1,226
|
)
|
|
$
|
145,324
|
|
Cost of products sold
|
121,231
|
|
|
|
(403
|
)
|
|
|
120,828
|
|
|
Gross profit
|
25,319
|
|
|
|
(823
|
)
|
|
|
24,496
|
|
|
Operating expenses
|
23,207
|
|
|
|
(35
|
)
|
|
|
23,172
|
|
|
Operating earnings
|
2,112
|
|
|
|
(788
|
)
|
|
|
1,324
|
|
|
Other income
|
389
|
|
|
|
—
|
|
|
|
389
|
|
|
Interest expense
|
(367
|
)
|
|
|
—
|
|
|
|
(367
|
)
|
|
Earnings before income taxes
|
2,134
|
|
|
|
(788
|
)
|
|
|
1,346
|
|
|
Income tax expense
|
446
|
|
|
|
(182
|
)
|
|
|
264
|
|
|
Net earnings
|
1,688
|
|
|
|
(606
|
)
|
|
|
1,082
|
|
|
Net earnings attributable to the noncontrolling interest
|
159
|
|
|
|
—
|
|
|
|
159
|
|
|
Net earnings attributable to Kewaunee Scientific Corporation
|
$
|
1,529
|
|
|
$
|
(606
|
)
|
|
$
|
923
|
|
Basic Earnings Per Share
|
$
|
0.56
|
|
|
$
|
(0.22
|
)
|
|
$
|
0.34
|
|
Diluted Earnings Per Share
|
$
|
0.55
|
|
|
$
|
(0.22
|
)
|
|
$
|
0.33
|
|
|
April 30, 2019
|
||||||||||
|
($ in thousands)
|
||||||||||
|
As Reported
|
|
Adjustments
|
|
Balance Without
Adoption of
ASC 606
|
||||||
Assets
|
|
|
|
|
|
||||||
Receivables, less allowances
|
|
33,259
|
|
|
|
(3,354
|
)
|
|
|
29,905
|
|
Inventories
|
|
17,206
|
|
|
|
2,331
|
|
|
|
19,537
|
|
Total Current Assets
|
|
65,357
|
|
|
|
(1,023
|
)
|
|
|
64,334
|
|
Total Assets
|
$
|
87,223
|
|
|
$
|
(1,023
|
)
|
|
$
|
86,200
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
||||||
Accounts payable
|
|
15,190
|
|
|
|
(59
|
)
|
|
|
15,131
|
|
Deferred revenue
|
|
1,599
|
|
|
|
117
|
|
|
|
1,716
|
|
Other accrued expenses
|
|
1,510
|
|
|
|
(258
|
)
|
|
|
1,252
|
|
Total Current Liabilities
|
|
32,733
|
|
|
|
(200
|
)
|
|
|
32,533
|
|
Total Liabilities
|
|
39,520
|
|
|
|
(200
|
)
|
|
|
39,320
|
|
Total Kewaunee Scientific Corporation Stockholders’ Equity
|
|
47,100
|
|
|
|
(823
|
)
|
|
|
46,277
|
|
Total Stockholders’ Equity
|
|
47,703
|
|
|
|
(823
|
)
|
|
|
46,880
|
|
Total Liabilities and Stockholders’ Equity
|
$
|
87,223
|
|
|
$
|
(1,023
|
)
|
|
$
|
86,200
|
|
(in thousands)
|
2019
|
2018
|
||||
Finished goods
|
$
|
4,139
|
|
$
|
4,987
|
|
Work-in-process
|
2,179
|
|
2,393
|
|
||
Materials and components
|
10,888
|
|
11,169
|
|
||
Total inventories
|
$
|
17,206
|
|
$
|
18,549
|
|
|
Twelve Months Ended April 30, 2018
|
|
Effect of Accounting Change
|
|
Twelve Months Ended April 30, 2018
|
||||
(in thousands, except per share data)
|
As Previously Reported
|
|
LIFO/FIFO
|
|
As Adjusted
|
||||
Cost of products sold
|
|
126,030
|
|
|
(139
|
)
|
|
125,891
|
|
Gross profit
|
|
32,020
|
|
|
139
|
|
|
32,159
|
|
Earnings from continuing operations before income taxes
|
|
9,480
|
|
|
139
|
|
|
9,619
|
|
Income tax expense
|
|
4,115
|
|
|
46
|
|
|
4,161
|
|
Net earnings
|
|
5,365
|
|
|
93
|
|
|
5,458
|
|
Net earnings attributable to Kewaunee Scientific Corporation
|
$
|
5,188
|
|
$
|
93
|
|
$
|
5,281
|
|
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders
|
|
|
|
|
|||||
Basic
|
$
|
1.91
|
|
$
|
0.03
|
|
$
|
1.94
|
|
Diluted
|
$
|
1.87
|
|
$
|
0.03
|
|
$
|
1.90
|
|
|
April 30, 2018
|
|
|
Effect of Accounting Change
|
|
|
April 30, 2018
|
||||
(in thousands)
|
As Previously Reported
|
|
|
LIFO/FIFO
|
|
|
As Adjusted
|
||||
|
|
|
|
|
|
|
|
|
|||
Inventory
|
$
|
17,662
|
|
|
$
|
887
|
|
|
$
|
18,549
|
|
Total Current Assets
|
|
63,504
|
|
|
|
887
|
|
|
|
64,391
|
|
Deferred income taxes
|
|
2,031
|
|
|
|
(162
|
)
|
|
|
1,869
|
|
Total Other Assets
|
|
6,193
|
|
|
|
(162
|
)
|
|
|
6,031
|
|
Total Assets
|
$
|
84,358
|
|
|
$
|
725
|
|
|
$
|
85,083
|
|
|
|
|
|
|
|
|
|
|
|||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
||||
Other accrued expenses
|
$
|
2,062
|
|
|
$
|
54
|
|
|
$
|
2,116
|
|
Total Current Liabilities
|
|
27,562
|
|
|
|
54
|
|
|
|
27,616
|
|
Total Liabilities
|
|
36,837
|
|
|
|
54
|
|
|
|
36,891
|
|
Retained earnings
|
|
43,165
|
|
|
|
671
|
|
|
|
43,836
|
|
Total Kewaunee Scientific Corporation Stockholders' Equity
|
|
47,059
|
|
|
|
671
|
|
|
|
47,730
|
|
Total Equity
|
|
47,521
|
|
|
|
671
|
|
|
|
48,192
|
|
Total Liabilities and Stockholders' Equity
|
$
|
84,358
|
|
|
$
|
725
|
|
|
$
|
85,083
|
|
|
Twelve Months Ended April 30,
|
|
Effect of Accounting Change
|
|
Twelve Months Ended April 30,
|
|||||||
|
2018
|
|
|
2018
|
||||||||
(in thousands)
|
As Previously Reported
|
|
LIFO/FIFO
|
|
As Adjusted
|
|||||||
Net earnings
|
$
|
5,365
|
|
|
$
|
93
|
|
|
$
|
5,458
|
|
|
Change in assets and liabilities:
|
|
|
|
|
|
|
|
|
||||
Inventories
|
|
(2,727
|
)
|
|
|
(139
|
)
|
|
|
(2,866
|
)
|
|
Accounts payable and other accrued expenses
|
|
4,560
|
|
|
|
46
|
|
|
|
4,606
|
|
|
Net cash provided by operating activities
|
$
|
3,183
|
|
|
$
|
—
|
|
|
$
|
3,183
|
|
|
Twelve Months Ended April 30, 2019
|
||||||||||
(in thousands, except per share amounts)
|
As Reported
Under FIFO
|
|
Adjustments
|
|
As Computed
Under LIFO
|
||||||
Cost of products sold
|
$
|
121,231
|
|
|
$
|
444
|
|
|
$
|
121,675
|
|
Income tax expense
|
446
|
|
|
(104
|
)
|
|
342
|
|
|||
Net earnings
|
1,688
|
|
|
(340
|
)
|
|
1,348
|
|
|||
Net earnings attributable to Kewaunee Scientific Corporation
|
$
|
1,529
|
|
|
$
|
(340
|
)
|
|
$
|
1,189
|
|
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders
|
|
|
|
|
|
||||||
Basic
|
$
|
0.56
|
|
|
$
|
(0.12
|
)
|
|
$
|
0.44
|
|
Diluted
|
$
|
0.55
|
|
|
$
|
(0.12
|
)
|
|
$
|
0.43
|
|
|
Twelve Months Ended April 30, 2019
|
||||||||||
(in thousands)
|
As Reported
Under FIFO
|
|
Adjustments
|
|
As Computed
Under LIFO
|
||||||
Net earnings
|
$
|
1,688
|
|
|
$
|
(340
|
)
|
|
$
|
1,348
|
|
Change in assets and liabilities:
|
|
|
|
|
|
||||||
Inventories
|
456
|
|
|
444
|
|
|
900
|
|
|||
Other, net
|
(1,685
|
)
|
|
(104
|
)
|
|
(1,789
|
)
|
|||
Net cash provided by operating activities
|
$
|
2,490
|
|
|
$
|
—
|
|
|
$
|
2,490
|
|
|
April 30, 2019
|
||||||||||
(in thousands)
|
As Reported
Under FIFO
|
|
Adjustments
|
|
As Computed
Under LIFO
|
||||||
Inventories
|
$
|
17,206
|
|
|
$
|
(1,331
|
)
|
|
$
|
15,875
|
|
Total Current Assets
|
65,357
|
|
|
(1,331
|
)
|
|
64,026
|
|
|||
Deferred Income Taxes
|
1,829
|
|
|
156
|
|
|
1,985
|
|
|||
Prepaid Expenses and Other Assets
|
3,736
|
|
|
164
|
|
|
3,900
|
|
|||
Total Assets
|
87,223
|
|
|
(1,011
|
)
|
|
86,212
|
|
|||
Retained Earnings
|
43,552
|
|
|
(1,011
|
)
|
|
42,541
|
|
|||
Total Kewaunee Scientific Corporation Stockholders’ Equity
|
47,100
|
|
|
(1,011
|
)
|
|
46,089
|
|
|||
Total Stockholders’ Equity
|
47,703
|
|
|
(1,011
|
)
|
|
46,692
|
|
|||
Total Liabilities and Stockholders’ Equity
|
$
|
87,223
|
|
|
$
|
(1,011
|
)
|
|
$
|
86,212
|
|
$ in thousands
|
|
2019
|
|
2018
|
||||
Term Loan A payable
|
|
$
|
1,024
|
|
|
$
|
1,970
|
|
Term Loan B payable
|
|
240
|
|
|
461
|
|
||
Less: current portion
|
|
(1,167
|
)
|
|
(1,167
|
)
|
||
Long-term debt
|
|
$
|
97
|
|
|
$
|
1,264
|
|
$ in thousands
|
|
2019
|
|
2018
|
|
||||
Current tax expense (benefit):
|
|
|
|
|
|
||||
Federal
|
|
$
|
(571
|
)
|
|
$
|
1,719
|
|
|
State and local
|
|
(75
|
)
|