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31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________
FORM 10-Q
_________________________
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 2021
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number 0-5286
_________________________
KEWAUNEE SCIENTIFIC CORPORATION
(Exact name of registrant as specified in its charter)
_________________________
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)

Registrant's telephone number, including area code: (704) 873-7202
Securities registered pursuant to Section 12(b) of the Act:

    Title of Each Class            Trading Symbol(s)    Name of Exchange on which registered
Common Stock, $2.50 par value                 KEQU             NASDAQ Global Market
            
_________________________
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer   ☐    Accelerated filer  
☐
Non-accelerated filer  
☒
   Smaller reporting company  
☒
     Emerging growth company  
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒
As of December 13, 2021, the registrant had outstanding 2,789,873 shares of Common Stock.



KEWAUNEE SCIENTIFIC CORPORATION
INDEX TO FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2021
    Page Number
1
2
3
4
5
6
12
14
14
16
16
17

i

Part 1. Financial Information
Item 1.    Condensed Consolidated Financial Statements

-Kewaunee Scientific Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
($ and shares in thousands, except per share amounts)
  Three Months Ended
October 31, 		Six Months Ended October 31,
  2021 2020 2021 2020
Net sales $ 39,031  $ 39,000  $ 78,524  $ 75,423 
Cost of products sold 35,434  32,605  69,253  63,147 
Gross profit 3,597  6,395  9,271  12,276 
Operating expenses 6,487  6,406  13,252  12,563 
Operating loss (2,890) (11) (3,981) (287)
Pension income (expense) 89  (289) 178  (577)
Other income, net 46  66  98  120 
Interest expense (132) (128) (238) (205)
Loss before income taxes (2,887) (362) (3,943) (949)
Income tax expense (benefit) 195  (197) 446  (176)
Net loss (3,082) (165) (4,389) (773)
Less: Net earnings attributable to the non-controlling interest 18  15  56  5 
Net loss attributable to Kewaunee Scientific Corporation $ (3,100) $ (180) $ (4,445) $ (778)
Net loss per share attributable to Kewaunee Scientific Corporation stockholders
Basic $ (1.11) $ (0.07) $ (1.60) $ (0.28)
Diluted $ (1.11) $ (0.07) $ (1.60) $ (0.28)
Weighted average number of common shares outstanding
Basic 2,789  2,759  2,783  2,757 
Diluted 2,789  2,759  2,783  2,757 









See accompanying notes to Condensed Consolidated Financial Statements.
1

Kewaunee Scientific Corporation
Condensed Consolidated Statements of Comprehensive Loss
(Unaudited)
($ in thousands)
  Three Months Ended
October 31, 		Six Months Ended October 31,
  2021 2020 2021 2020
Net loss $ (3,082) $ (165) $ (4,389) $ (773)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments (83) (35) (159) (48)
Other comprehensive loss (83) (35) (159) (48)
Comprehensive loss, net of tax (3,165) (200) (4,548) (821)
Less: Comprehensive income attributable to the non-controlling interest 18  15  56  5 
Comprehensive loss attributable to Kewaunee Scientific Corporation $ (3,183) $ (215) $ (4,604) $ (826)





















See accompanying notes to Condensed Consolidated Financial Statements.
2

Kewaunee Scientific Corporation
Condensed Consolidated Statements of Stockholders' Equity
(Unaudited)
($ in thousands, except per share amounts)
  Common
Stock 		Additional
Paid-in
Capital 		Treasury
Stock 		Retained
Earnings 		Accumulated
Other
Comprehensive
Loss 		Total Kewaunee
Scientific
Corporation
Stockholders'
Equity
Balance at April 30, 2021 $ 6,915  $ 3,807  $ (53) $ 34,149  $ (3,577) $ 41,241 
Net loss attributable to Kewaunee Scientific Corporation —  —  —  (1,345) —  (1,345)
Other comprehensive loss —  —  —  —  (76) (76)
Stock-based compensation 67  171  —  —  —  238 
Balance at July 31, 2021 $ 6,982  $ 3,978  $ (53) $ 32,804  $ (3,653) $ 40,058 
Net loss attributable to Kewaunee Scientific Corporation —  —  —  (3,100) —  (3,100)
Other comprehensive loss —  —  —  —  (83) (83)
Stock-based compensation 1  129  —  —  —  130 
Balance at October 31, 2021 $ 6,983  $ 4,107  $ (53) $ 29,704  $ (3,736) $ 37,005 

  Common
Stock 		Additional
Paid-in
Capital 		Treasury
Stock 		Retained
Earnings 		Accumulated
Other
Comprehensive
Loss 		Total Kewaunee Scientific Corporation Stockholders' Equity
Balance at April 30, 2020 $ 6,885  $ 3,360  $ (53) $ 37,821  $ (9,598) $ 38,415 
Net loss attributable to Kewaunee Scientific Corporation —  —  —  (598) —  (598)
Other comprehensive loss —  —  —  —  (13) (13)
Stock-based compensation 20  78  —  —  —  98 
Balance at July 31, 2020 $ 6,905  $ 3,438  $ (53) $ 37,223  $ (9,611) $ 37,902 
Net loss attributable to Kewaunee Scientific Corporation —  —  —  (180) —  (180)
Other comprehensive loss —  —  —  —  (35) (35)
Stock-based compensation —  143  —  —  —  143 
Balance at October 31, 2020 $ 6,905  $ 3,581  $ (53) $ 37,043  $ (9,646) $ 37,830 















See accompanying notes to Condensed Consolidated Financial Statements.
3

Kewaunee Scientific Corporation
Condensed Consolidated Balance Sheets
($ and shares in thousands, except per share amounts)
October 31, 2021 April 30, 2021
  (Unaudited)  
Assets
Current Assets:
Cash and cash equivalents $ 4,715  $ 5,206 
Restricted cash 817  525 
Receivables, less allowance; $404; $636, on each respective date
37,069  32,882 
Inventories 18,120  16,517 
Income tax receivable 774  955 
Prepaid expenses and other current assets 5,325  4,372 
Total Current Assets 66,820  60,457 
Property, plant and equipment, at cost 59,744  58,804 
Accumulated depreciation (44,229) (42,822)
Net Property, Plant and Equipment 15,515  15,982 
Right of use assets 8,454  9,279 
Other assets 3,504  3,666 
Total Assets $ 94,293  $ 89,384 
Liabilities and Stockholders' Equity
Current Liabilities:
Short-term borrowings $ 13,695  $ 6,828 
Current portion of financing lease liability 22  21 
Current portion of operating lease liabilities 1,356  1,348 
Accounts payable 20,228  16,780 
Employee compensation and amounts withheld 4,084  4,726 
Deferred revenue 3,052  3,123 
Other accrued expenses 1,334  1,355 
Total Current Liabilities 43,771  34,181 
Long-term portion of financing lease liability 80  91 
Long-term portion of operating lease liabilities 7,031  7,860 
Accrued pension and deferred compensation costs 4,563  4,652 
Deferred income taxes 380  307 
Other non-current liabilities 1,165  806 
Total Liabilities 56,990  47,897 
Commitments and Contingencies
Stockholders' Equity:
Common stock, $2.50 par value, Authorized – 5,000 shares; Issued – 2,793 shares; 2,766 shares; – Outstanding – 2,790 shares; 2,763 shares, on each respective date
6,983  6,915 
Additional paid-in-capital 4,107  3,807 
Retained earnings 29,704  34,149 
Accumulated other comprehensive loss (3,736) (3,577)
Common stock in treasury, at cost, 3 shares, on each respective date
(53) (53)
Total Kewaunee Scientific Corporation Stockholders' Equity 37,005  41,241 
Non-controlling interest 298  246 
Total Stockholders' Equity 37,303  41,487 
Total Liabilities and Stockholders' Equity $ 94,293  $ 89,384 

See accompanying notes to Condensed Consolidated Financial Statements.
4

Kewaunee Scientific Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)
($ in thousands)
  Six Months Ended
October 31,
  2021 2020
Cash flows from operating activities:
Net loss $ (4,389) $ (773)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation 1,396  1,346 
Bad debt provision (2) 93 
Stock-based compensation expense 366  256 
Deferred income taxes 72  257 
Change in assets and liabilities:
Receivables (2,971) (4,243)
Inventories (1,603) (794)
Income tax receivable 180  (503)
Accounts payable and other accrued expenses 3,145  4,379 
Deferred revenue (72) 260 
Other, net (2,193) (794)
Net cash used in operating activities (6,071) (516)
Cash flows from investing activities:
Capital expenditures (930) (1,292)
Net cash used in investing activities (930) (1,292)
Cash flows from financing activities:
Dividends paid to non-controlling interest in subsidiaries —  (57)
Proceeds from short-term borrowings 28,641  37,599 
Repayments on short-term borrowings (21,774) (34,726)
Payments on long-term lease obligations (10) (9)
Net proceeds from exercise of stock options —  (15)
Net cash provided by financing activities 6,857  2,792 
Effect of exchange rate changes on cash, cash equivalents and restricted cash (55) 41 
(Decrease) increase in cash, cash equivalents and restricted cash (199) 1,025 
Cash, cash equivalents and restricted cash, beginning of period 5,731  5,215 
Cash, cash equivalents and restricted cash, end of period $ 5,532  $ 6,240 










See accompanying notes to Condensed Consolidated Financial Statements.
5

Kewaunee Scientific Corporation
Notes to Condensed Consolidated Financial Statements
(unaudited)
A. Financial Information
The unaudited interim Condensed Consolidated Financial Statements of Kewaunee Scientific Corporation (the "Company") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "Commission"). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted, although the Company believes that the disclosures are adequate to make the information presented not misleading.
These interim Condensed Consolidated Financial Statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of these financial statements and should be read in conjunction with the Consolidated Financial Statements and Notes included in the Company's 2021 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. The Condensed Consolidated Balance Sheet as of April 30, 2021 included in this interim period filing has been derived from the audited consolidated financial statements at that date, but does not include all of the information and related notes required by GAAP for complete financial statements.
The preparation of the interim Condensed Consolidated Financial Statements requires management to make certain estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates.

B. Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less. During the periods ended October 31, 2021 and April 30, 2021, the Company had cash deposits in excess of FDIC insured limits. The Company has not experienced any losses from such deposits. Restricted cash includes bank deposits of subsidiaries used for performance guarantees against customer orders.
The Company includes restricted cash along with the cash balance for presentation in the Condensed Consolidated Statements of Cash Flows. The reconciliation between the Condensed Consolidated Balance Sheet and the Condensed Consolidated Statement of Cash Flows is as follows:
October 31, 2021 April 30, 2021
Cash and cash equivalents $ 4,715  $ 5,206 
Restricted cash 817  525 
Total cash, cash equivalents and restricted cash $ 5,532  $ 5,731 

C. Revenue Recognition
The Company recognizes revenue when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. The majority of the Company's revenues are recognized over time as the customer receives control as the Company performs work under a contract. However, a portion of the Company's revenues are recognized at a point-in-time as control is transferred at a distinct point in time per the terms of a contract.
6

Disaggregated Revenue
A summary of net sales transferred to customers over time and at a point in time for the periods ended October 31, 2021 and October 31, 2020 is as follows (in thousands):
Three Months Ended
  October 31, 2021 October 31, 2020
  Domestic International Total Domestic International Total
Over Time $ 28,450  $ 9,097  $ 37,547  $ 26,950  $ 10,228  $ 37,178 
Point in Time 1,484  —  1,484  1,822  —  1,822 
Total $ 29,934  $ 9,097  $ 39,031  $ 28,772  $ 10,228  $ 39,000 
Six Months Ended
  October 31, 2021 October 31, 2020
  Domestic International Total Domestic International Total
Over Time $ 57,102  $ 18,927  $ 76,029  $ 56,030  $ 16,593  $ 72,623 
Point in Time 2,495  —  2,495  2,800  —  2,800 
Total $ 59,597  $ 18,927  $ 78,524  $ 58,830  $ 16,593  $ 75,423 

Contract Balances
The closing and opening balances of contract assets included $8,102,000 in accounts receivable and $1,568,000 in other assets at October 31, 2021. The opening balance of contract assets arising from contracts with customers included $5,716,000 in accounts receivable and $1,213,000 in other assets at April 30, 2021. The closing and opening balances of contract liabilities included in deferred revenue arising from contracts with customers were $3,052,000 at October 31, 2021 and $3,123,000 at April 30, 2021. The timing of revenue recognition, billings and cash collections results in accounts receivable, unbilled receivables, and deferred revenue which are disclosed in the Condensed Consolidated Balance Sheets and in the Notes to the Condensed Consolidated Financial Statements. In general, the Company receives payments from customers based on a billing schedule established in its contracts. Unbilled receivables represent amounts earned which have not yet been billed in accordance with contractually stated billing terms and are included in receivables on the Condensed Consolidated Balance Sheets. Receivables are recorded when the right to consideration becomes unconditional and the Company has a right to invoice the customer. Deferred revenue relates to payments received in advance of performance under the contract. Deferred revenue is recognized as revenue as (or when) the Company performs under the contract. Approximately 100% of the contract liability balances at April 30, 2021 and October 31, 2021 are expected to be recognized as revenue during the respective succeeding 12 months.
D. Inventories
The Company measures inventory using the first-in, first-out ("FIFO") method at the lower of cost or net realizable value. Inventories consisted of the following (in thousands):
October 31, 2021 April 30, 2021
Finished products $ 4,541  $ 2,988 
Work in process 2,322  1,832 
Raw materials 11,257  11,697 
Total $ 18,120  $ 16,517 
The Company's International subsidiaries' inventories were $2,214,000 at October 31, 2021 and $2,560,000 at April 30, 2021 and are included in the above tables.
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E. Fair Value of Financial Instruments
The Company's financial instruments consist primarily of cash and equivalents, mutual funds, cash surrender value of life insurance policies, and short-term borrowings. The carrying value of these assets and liabilities approximates their fair value. The following tables summarize the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2021 and April 30, 2021 (in thousands):
  October 31, 2021
Financial Assets Level 1 Level 2 Total
Trading securities held in non-qualified compensation plans (1)
$ 1,323  $ —  $ 1,323 
Cash surrender value of life insurance policies (1)
—  1,487  1,487 
Total $ 1,323  $ 1,487  $ 2,810 
Financial Liabilities
Non-qualified compensation plans (2)
$ —  $ 3,258  $ 3,258 
Total $ —  $ 3,258  $ 3,258 
  April 30, 2021
Financial Assets Level 1 Level 2 Total
Trading securities held in non-qualified compensation plans (1)
$ 1,299  $ —  $ 1,299 
Cash surrender value of life insurance policies (1)
—  1,458  1,458 
Total $ 1,299  $ 1,458  $ 2,757 
Financial Liabilities
Non-qualified compensation plans (2)
$ —  $ 3,169  $ 3,169 
Total $ —  $ 3,169  $ 3,169 
(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.

F. Long-term Debt and Other Credit Arrangements
At October 31, 2021, advances of $12.5 million were outstanding under the Company's revolving credit facility, compared to advances of $6.8 million outstanding as of April 30, 2021. The Company had standby letters of credit outstanding of $704,000 at October 31, 2021, unchanged from April 30, 2021. Amounts available under the revolving credit facility were $2.5 million and $7.5 million at October 31, 2021 and April 30, 2021, respectively.
On July 30, 2021, the Company entered into a Twelfth Amendment to Credit and Security Agreement (the “Amendment”) with Wells Fargo Bank, National Association (the “Bank”). The Amendment made certain changes to the Credit and Security Agreement, dated as of May 6, 2013, as amended (the “Credit Agreement”), between the Company and the Bank, and to the Revolving Line of Credit Note, dated May 6, 2013, made by the Company and payable to the order of the Bank, as amended (the “Revolving Note”). The changes included (i) extending the maturity date under the Credit Agreement and Revolving Note from July 30, 2021 to April 30, 2022; (ii) removing the minimum EBITDA covenant; (iii) in addition to the existing Minimum Monthly Liquidity requirement as of the end of each calendar month of not less than $2,000,000, adding an additional covenant that the Company will maintain Supplemental Liquidity (as defined in the amended Credit Agreement) as of the first day of each calendar month not less than (a) during the period from August 1, 2021 through December 31, 2021, $1,000,000 and (b) thereafter $1,500,000; and (iv) restating the amended Credit Agreement to reflect all amendments to date.
At October 31, 2021 and April 30, 2021, the Company was in compliance with all the financial covenants under its revolving credit facility.

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G. Leases
In accordance with ASC 842, "Leases," the Company recognizes lease assets and lease liabilities reflecting the rights and obligations created by operating type leases for real estate and equipment in both the U.S. and internationally and a financing lease for a truck in the U.S. At October 31, 2021 and April 30, 2021, right-of-use assets totaled $8,454,000 and $9,279,000, respectively. Operating cash paid to settle lease liabilities was $1,006,000 and $848,000 for the six months ended October 31, 2021 and October 31, 2020, respectively. The Company's leases have remaining lease terms of up to 8 years. In addition, some of the leases may include options to extend the leases for up to 5 years or options to terminate the leases within 1 year. Operating lease expenses were $707,000 and $1,555,000 for the three and six months ended October 31, 2021, respectively, inclusive of period cost for short-term leases, not included in lease liabilities, of $201,000 and $549,000, respectively. Operating lease expenses were $683,000 and $1,315,000 for the three and six months ended October 31, 2020, respectively, inclusive of period cost for short-term leases, not included in lease liabilities, of $245,000 and $467,000, respectively.
At October 31, 2021, the weighted average remaining lease term for the capitalized operating leases was 5.7 years and the weighted average discount rate was 4.1%. For the financing lease, the remaining lease term was 3.8 years and the discount rate was 10.0%. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of those lease payments. The Company uses the implicit rate when readily determinable.
Future minimum lease payments under non-cancelable leases as of October 31, 2021, excluding the future minimum lease payments for those leases that have not yet commenced as of October 31, 2021, were as follows:
Operating Financing
Remainder of fiscal 2022 $ 1,005  $ 16 
2023 1,840  32 
2024 1,484  32 
2025 1,440  32 
2026 1,230  12 
Thereafter 2,858  — 
Total Minimum Lease Payments 9,857  124 
Imputed Interest (1,470) (22)
Total $ 8,387  $ 102 
As of October 31, 2021, the Company has entered into a new lease that has not yet commenced with future minimum lease payments of $219,000 that are not yet reflected on the Condensed Consolidated Balance Sheets. This lease is expected to commence in the second half of fiscal year 2022 with a lease term of 5 years.
H. Earnings Per Share
Basic earnings per share is based on the weighted average number of common shares outstanding during the year. Diluted earnings per share reflects the assumed exercise of outstanding options and the conversion of restricted stock units ("RSUs") under the Company's various stock compensation plans, except when RSUs and options have an antidilutive effect. There were 128,704 and 116,575 antidilutive RSUs and options outstanding at October 31, 2021 and October 31, 2020, respectively. The following is a reconciliation of basic to diluted weighted average common shares outstanding (in thousands):
Three Months Ended Six Months Ended
October 31, 2021 October 31, 2020 October 31, 2021 October 31, 2020
Basic 2,789  2,759  2,783  2,757 
Dilutive effect of stock options and RSUs —  —  —  — 
Weighted average common shares outstanding - diluted 2,789  2,759  2,783  2,757 
I. Stock Options and Stock-based Compensation
Under ASC 718, "Compensation-Stock Compensation," compensation costs related to stock options and other stock awards granted by the Company are charged against operating expenses during their vesting period.
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In June 2021, the Company granted 5,500 RSUs under the 2017 Omnibus Incentive Plan ("2017 Plan"). These RSUs include a service component that vests over a two-year period. The Company also granted 51,471 RSUs under the 2017 Omnibus Incentive Plan in June 2021 that include a service component that vests over a three-year period. The recognized expense is based upon the vesting period for service criteria. The Company recorded stock-based compensation expense during the three and six months ended October 31, 2021 of $131,000 and $325,000, respectively, with the remaining estimated stock-based compensation expense of $1,148,000 to be recorded over the remaining vesting periods. The Company recorded stock-based compensation expense during the three and six months ended October 31, 2020 of $141,000 and $200,000, respectively. Directors' fees paid with shares of common stock in lieu of cash in accordance with Director compensation guidelines were $41,000 for each of the six month periods ended October 31, 2021 and October 31, 2020 and were also included in the stock-based compensation on the Condensed Consolidated Statements of Cash Flows.
J. Income Taxes
Income tax expense of $195,000 and $446,000 was recorded for the three and six months ended October 31, 2021, respectively. Income tax benefit of $197,000 and $176,000 was recorded for the three and six months ended October 31, 2020, respectively. The effective tax rates were (6.8)% and (11.3)% for the three and six months ended October 31, 2021, respectively. The effective tax rates were 54.4% and 18.5% for the three and six months ended October 31, 2020, respectively. The change in the effective tax rate for the three- and six-month periods is primarily due to the impact of foreign operations which are taxed at different rates than the U.S. tax rate of 21% and the recording of a valuation allowance against the deferred tax asset which resulted in the elimination of any U.S. income tax benefit.
In August 2019, the Company revoked its indefinite reinvestment of foreign unremitted earnings position in compliance with ASC 740 "Income Taxes" and terminated its indefinite reinvestment of unremitted earnings assertion for the Singapore, China, and Kewaunee Labway India Pvt. Ltd. international subsidiaries. The Company has a deferred tax liability of $860,000 and $776,000 for the withholding tax related to Kewaunee Labway India Pvt. Ltd. as of October 31, 2021 and April 30, 2021, respectively. The Company recorded all deferred tax assets and liabilities related to its outside basis differences in its foreign subsidiaries consistent with ASC 740.
K. Defined Benefit Pension Plans
The Company has non-contributory defined benefit pension plans covering substantially all domestic salaried and hourly employees. These plans were amended as of April 30, 2005; no further benefits have been, or will be, earned under the plans, subsequent to the amendment date, and no additional participants will be added to the plans. There were no Company contributions paid to the plans for the three and six months ended October 31, 2021 and October 31, 2020. The Company assumed an expected long-term rate of return of 7.75% for the periods ended October 31, 2021 and October 31, 2020.
Pension (income) / expense consisted of the following (in thousands):
Three Months Ended
October 31, 2021 October 31, 2020
Service cost $ 0  $ 0 
Interest cost 177  181 
Expected return on plan assets (401) (321)
Recognition of net loss 135  429 
Net periodic pension (income) expense $ (89) $ 289 
Six Months Ended
October 31, 2021 October 31, 2020
Service cost $ 0  $ 0 
Interest cost 354  362 
Expected return on plan assets (802) (642)
Recognition of net loss 270  857 
Net periodic pension (income) expense $ (178) $ 577 
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L. Segment Information
The Company's operations are classified into two business segments: Domestic and International. The Domestic business segment principally designs, manufactures, and installs scientific and technical furniture, including steel and wood laboratory cabinetry, fume hoods, laminate casework, flexible systems, worksurfaces, workstations, workbenches, and computer enclosures. The International business segment, which consists of the Company's foreign subsidiaries, provides products and services, including facility design, detailed engineering, construction, and project management from the planning stage through testing and commissioning of laboratories. Intersegment transactions are recorded at normal profit margins. All intercompany balances and transactions have been eliminated. Certain corporate expenses shown below have not been allocated to the business segments.
The following tables provide financial information by business segments for the periods ended October 31, 2021 and 2020 (in thousands):
Domestic
Operations 		International
Operations 		Corporate /
Eliminations 		Total
Three months ended October 31, 2021
Revenues from external customers $ 29,934  $ 9,097  $ —  $ 39,031 
Intersegment revenues 170  571  (741) — 
Earnings (loss) before income taxes (2,095) 578  (1,370) (2,887)
Three months ended October 31, 2020
Revenues from external customers $ 28,772  $ 10,228  $ —  $ 39,000 
Intersegment revenues 601  1,099  (1,700) — 
Earnings (loss) before income taxes 595  786  (1,743) (362)
Domestic
Operations 		International
Operations 		Corporate /
Eliminations 		Total
Six Months Ended October 31, 2021
Revenues from external customers $ 59,597  $ 18,927  $ —  $ 78,524 
Intersegment revenues 345  1,136  (1,481) — 
Earnings (loss) before income taxes (2,304) 1,242  (2,881) (3,943)
Six Months Ended October 31, 2020
Revenues from external customers $ 58,830  $ 16,593  $ —  $ 75,423 
Intersegment revenues 1,252  1,910  (3,162) — 
Earnings (loss) before income taxes 1,588  921  (3,458) (949)
M. New Accounting Standards
In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," which replaces the current incurred loss method used for determining credit losses on financial assets, including trade receivables, with an expected credit loss method. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022. The Company will adopt this standard in fiscal year 2024. The Company does not expect the adoption of this standard to have a significant impact on the Company's consolidated financial position or results of operations.
In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes ("Topic 740"): Simplifying the Accounting for Income Taxes." This update simplifies the accounting for income taxes through certain targeted improvements to various subtopics within Topic 740. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. The Company adopted this standard effective May 1, 2021. The adoption of this standard did not have a significant impact on the Company's consolidated financial position or results of operations.
N. Reclassifications

The Company reclassified certain amounts in the Condensed Consolidated Balance Sheet for the period ended April 30, 2021 and the Condensed Consolidated Statements of Cash Flows for the six-month period ended October 31, 2021 to conform to the current period presentation.
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O. Subsequent Events
On November 5, 2021, the Company experienced a criminal network cyber attack that led to a disruption of its domestic operations, including manufacturing, engineering, administration, and sales operations. As of November 15, 2021 the Company had substantially restored its operations. The Company engaged third party experts, including a cybersecurity firm, to perform a fulsome forensic investigation of the attack; among other things, the cybersecurity firm assessed whether any confidential or sensitive data had been compromised. Based on the results of the investigation to date, the Company does not believe any confidential or sensitive data has been downloaded, stolen from the Company's systems, or otherwise exfiltrated. The Company will continue to evaluate the incident and determine the appropriate actions to take, if any, in light of what is discovered. The investigation is on-going. The Company has insurance coverage against recovery costs and business interruption resulting from cyber-attacks. However, the Company may have incurred, and may incur in the future, expenses and losses related to this attack that are not covered by insurance. The total amount of such expenses or losses cannot be estimated at this time; however, it is likely that the costs related to this event will exhaust the Company's existing insurance coverage related to cyber attacks. While the Company will seek to obtain insurance for losses related to any similar future events, there can be no assurance that such insurance will be available to the Company.
Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations
The Company's 2021 Annual Report to Stockholders on Form 10-K contains management's discussion and analysis of the Company's financial condition and results of operations as of and for the year ended April 30, 2021. The following discussion and analysis describes material changes in the Company's financial condition since April 30, 2021. The analysis of results of operations compares the three and six months ended October 31, 2021 with the comparable periods of the prior year.
Results of Operations
Sales for the quarter were $39,031,000, relatively flat from sales of $39,000,000 in the comparable period of the prior year. Domestic sales for the quarter were $29,934,000, up 4.0% from sales of $28,772,000 in the comparable period of the prior year. Domestic sales were favorably impacted by $1,213,000 of raw material surcharges implemented during the most recent quarter. International sales for the quarter were $9,097,000, down 11.1% from sales of $10,228,000 in the comparable period of the prior year. International sales decreased when compared to the prior year period due to non-availability of site clearances and billings being delayed until the next quarter coupled with a strong prior year period that benefited from higher billings as reduced COVID-19 related restrictions in markets allowed access to project sites.
Sales for the six months ended October 31, 2021 were $78,524,000, a 4.1% increase from sales of $75,423,000 in the comparable period of the prior year. Domestic sales for the six month period were $59,597,000, up 1.3% from sales of $58,830,000 in the comparable period of the prior year. Domestic sales were favorably impacted by $1,613,000 of raw materials surcharges implemented during the most recent quarter. International sales for the period were $18,927,000, up 14.1% from sales of $16,593,000 in the comparable period of the prior year. International sales increased when compared to the prior year due to strong demand in the current year coupled with COVID-19 related restrictions and government mandated shut-downs in India that limited access to project sites that significantly impacted the first quarter of the prior year.
The Company's order backlog was $139.7 million at October 31, 2021, as compared to $96.0 million at October 31, 2020, and $114.5 million at April 30, 2021. This is the highest order backlog in the Company's history. The Company's backlog increased significantly due to a large greenfield project located in India awarded to our international subsidiaries.
The gross profit margin for the three months ended October 31, 2021 was 9.2% of sales, as compared to 16.4% of sales in the comparable quarter of the prior year. The gross profit margin for the six months ended October 31, 2021 was 11.8%, as compared to 16.3% of sales in the comparable quarter of the prior year. The decrease in gross profit margin percentage for the three and six months ended October 31, 2021 is a result of supplier constraints resulting from COVID-19, as well as other supply chain disruptions, that led to increases in steel, wood, and epoxy resin raw material costs when compared to the prior year of approximately $2,112,000 and $3,763,000, respectively, net of surcharges implemented.
Operating expenses for the three months ended October 31, 2021 were $6,487,000, or 16.6% of sales, as compared to $6,406,000, or 16.4% of sales, in the comparable period of the prior year. Operating expenses for the six months ended October 31, 2021 were $13,252,000, or 16.9% of sales, as compared to $12,563,000, or 16.7% of sales, in the comparable period of the prior year. The increase in operating expenses for the three months ended October 31, 2021 was primarily for increases related to wages, benefits, incentive and stock-based compensation of $681,000 partially offset by decreases of $179,000 in marketing expenses, $142,000 in consulting and professional fees, and $288,000 of international expenses. The increase in operating expenses for the six months ended October 31, 2021 was primarily for increases related to wages, benefits,
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incentive and stock-based compensation of $863,000 and increases in international expenses of $109,000, partially offset by decreases of $254,000 in marketing expenses and $149,000 in consulting and professional fees.
Interest expense, net was $132,000 and $238,000 for the three and six months ended October 31, 2021, as compared to $128,000 and $205,000 for the comparable periods of the prior year. The changes in interest expense were primarily attributable to changes in borrowing levels.
The effective income tax rates for the three and six months ended October 31, 2021 were (6.8)% and (11.3)% as compared to 54.4% and 18.5% for the three and six months ended October 31, 2020. Income tax expense of $195,000 and an income tax benefit of $197,000 was recorded for the three months ended October 31, 2021 and 2020, respectively. Income tax expense of $446,000 and an income tax benefit of $176,000 was recorded for the six months ended October 31, 2021 and 2020, respectively. The change in the effective tax rate for the three and six months ended October 31, 2021 reflects the impact of international operations which are taxed at different rates, combined with no U.S. tax benefit being recorded for the most recent quarter due to the Company's full valuation allowance position. See Note J, Income Taxes, of the Notes to Condensed Consolidated Financial Statements for additional information.
Non-controlling interests related to the Company's subsidiaries not 100% owned by the Company increased net loss by $18,000 and $56,000 for the three and six months ended October 31, 2021, respectively, as compared to $15,000 and $5,000 for the comparable periods of the prior year. The change in the net earnings attributable to the non-controlling interest in the current period was due to changes in earnings of the subsidiaries in the related period.
Net loss was $3,100,000, or $(1.11) per diluted share, for the three months ended October 31, 2021, compared to $180,000, or $(0.07) per diluted share, in the prior year period. A net loss of $4,445,000, or $(1.60) per diluted share, was reported for the six months ended October 31, 2021, compared to a net loss of $778,000, or $(0.28) per diluted share, in the prior year period.
Liquidity and Capital Resources
Historically, the Company's principal sources of liquidity have been funds generated from operations, supplemented as needed by short-term borrowings under the Company's revolving credit facility. Additionally, certain machinery and equipment are financed by non-cancellable operating leases. The Company believes that these sources will be sufficient to support ongoing business requirements in the current fiscal year, including capital expenditures.
The Company had working capital of $23,049,000 at October 31, 2021, compared to $26,276,000 at April 30, 2021. The ratio of current assets to current liabilities was 1.5-to-1.0 at October 31, 2021, compared to 1.8-to-1.0 at April 30, 2021. The Company's short-term debt and working capital were significantly impacted by the $3,763,000 of increased raw material costs that the Company was not able to pass along to customers due to the fixed price nature of our contracts. At October 31, 2021, advances of $12.5 million were outstanding under the Company's credit facilities, compared to advances of $6.8 million outstanding as of April 30, 2021. The Company had standby letters of credit outstanding of $704,000 at October 31, 2021, unchanged from April 30, 2021. Amounts available under the $15.0 million revolving credit facility were $2.5 million and $7.5 million at October 31, 2021 and April 30, 2021, respectively. For additional information concerning our credit facility, see Note F, Long-Term Debt and Other Credit Arrangements.
As previously reported in the Company's 2021 Annual Report on Form 10-K, the Company was compliant at April 30, 2021 with all of the financial covenants under the revolving credit facility. At October 31, 2021, the Company was in compliance with all the financial covenants under its revolving credit facility.
The Company used cash of $6,071,000 during the six months ended October 31, 2021 primarily for operations, increases in receivables of $3.0 million, inventory of $1.6 million and other, net of $2.2 million, partially offset by an increase in accounts payable and other accrued expenses of $3.1 million. During the six months ended October 31, 2021, the Company used net cash of $930,000 in investing activities, all of which was used for capital expenditures. The Company's financing activities provided cash of $6,857,000 during the six months ended October 31, 2021, primarily from net increases in short-term borrowings as a result of increased raw material costs, as discussed above.
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Outlook
The Company continues to actively monitor the COVID-19 pandemic and its impact. Any future developments and effects will be highly uncertain and cannot be predicted, including: the scope and duration of the pandemic; further adverse revenue and net income effects; disruptions to our operations; closure of project sites; ability of suppliers to support our operations; the effectiveness of our work from home arrangements; employee impacts from illness, school closures and other community response measures; and any actions taken by governmental authorities and other third parties in response to the pandemic. The uncertain future development of this crisis could materially and adversely affect our business, operations, operating results, financial condition, liquidity or capital levels. The Company will continue to work to ensure the safety of our people and our ability to serve our customers worldwide.
As previously discussed (See Note O, Subsequent Events), on November 5, 2021, the Company experienced a criminal network cyber attack that led to a disruption of its domestic operations, including manufacturing, engineering, administration, and sales operations. As of November 15, 2021, the Company had substantially restored its operations. While the Company has insurance coverage against recovery costs and business interruption resulting from cyber-attacks, the Company may have incurred, and may incur in the future, expenses and losses related to this attack that are not covered by insurance. The total amount of such expenses or losses cannot be estimated at this time; however, it is likely that the costs related to this event will exhaust the Company's existing insurance coverage related to cyber attacks. While the Company will seek to obtain insurance for losses related to any similar future events, there can be no assurance that such insurance will be available to the Company.
In addition, the Company's ability to predict future demand for its products continues to be limited given its role as subcontractor or supplier to dealers for subcontractors. Demand for the Company's products is also dependent upon the number of laboratory construction projects planned and/or current progress in projects already under construction. The Company's earnings are also impacted by fluctuations in prevailing pricing for projects in the laboratory construction marketplace and increased costs of raw materials, including stainless steel, wood, and epoxy resin, and whether the Company is able to increase product prices to customers in amounts that correspond to such increases without materially and adversely affecting sales. Additionally, since prices are normally quoted on a firm basis in the industry, the Company bears the burden of possible increases in labor and material costs between the quotation of an order and delivery of a product.
Looking forward, the Company is optimistic about opportunities for growth within existing end-markets. As the economy continues to re-open, the Company anticipates that project awards will accelerate and the pace of construction will increase. The Company has been focused on restoring and expanding manufacturing capacity that had been previously reduced due to COVID-19. The Company has also been implementing surcharges on new orders with the goal of aligning revenue to offset the broad based price increases for materials including steel, aluminum, hard woods, and resin products that has impacted the Company's financial performance for the first half of the fiscal year. The Company expects improved financial performance in the second half of this fiscal year and into fiscal year 2023.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain statements included and referenced in this report, including Management's Discussion and Analysis of Financial Condition and Results of Operations, constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). 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 our operations, markets, products, services and prices, as well as prices for certain raw materials and energy. The cautionary statements made by us pursuant to the Reform Act herein and elsewhere 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. Many important factors that could cause such differences are described under the caption "Risk Factors" in Item 1A in the Company's 2021 Annual Report on Form 10-K. In addition, readers are urged to consider statements that include the terms "believes," "belief," "expects," "plans," "objectives," "anticipates," "intends" or the like to be uncertain and forward-looking. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Item 3.    Quantitative and Qualitative Disclosures About Market Risk
There are no material changes to the disclosures made on this matter in the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2021.
Item 4.    Controls and Procedures
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(a) Evaluation of disclosure controls and procedures
An evaluation was performed under the supervision and with the participation of the Company's management, including the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of October 31, 2021. Based on that evaluation, the Company's management, including the CEO and CFO, concluded that, as of October 31, 2021, the Company's disclosure controls and procedures were adequate and effective and designed to ensure that all material information required to be filed in this quarterly report is made known to them by others within the Company and its subsidiaries.
On November 5, 2021, the Company experienced a criminal network cyber-attack that led to a disruption of its domestic operations. This attack is described in more detail in Note O, Subsequent Events and elsewhere in this quarterly report. Management is reviewing the matter, including conducting the forensic investigation described elsewhere in this report, and has not yet determined whether there is a related issue with its internal controls.
(b) Changes in internal controls
There was no significant change in the Company's internal control over financial reporting that occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.
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PART II. OTHER INFORMATION
Item 1A.    Risk Factors
The business, financial condition and operating results of the Company can be affected by a number of factors, whether currently known or unknown, including but not limited to those described in Part I, Item 1A of the Company's 2021 Annual Report on Form 10-K under the heading "Risk Factors," any one or more of which could, directly or indirectly, cause the Company's actual financial condition and operating results to vary materially from its past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in part, could materially and adversely affect the Company's business, financial condition, operating results and stock price. Other than as set forth below, there have been no material changes to the Company's risk factors from those set forth in the Company's Annual Report on Form 10-K for the year ended April 30, 2021 as filed with the SEC on July 15, 2021.
We recently experienced a network cyber-attack that disrupted our domestic operations.
On November 5, 2021, the Company experienced a criminal network cyber-attack that led to a disruption of its domestic operations, including manufacturing, engineering, administration, and sales operations. As of November 15, 2021, the Company had substantially restored its operations. The Company has engaged third party experts, including a cybersecurity firm, to perform a fulsome forensic investigation of this attack; among other things, the cybersecurity firm assessed whether any confidential or sensitive data had been compromised. Based on the results of the investigation to date, the Company does not believe any confidential or sensitive data has been downloaded, stolen from the Company's systems, or otherwise exfiltrated. The Company will continue to evaluate the incident and determine the appropriate actions to take, if any, in light of what is discovered. The investigation is ongoing. The Company has insurance coverage against recovery costs and business interruption resulting from cyber-attacks. However, the Company may have incurred, and may incur in the future, expenses and losses related to this attack that are not covered by insurance. The total amount of such expenses or losses cannot be estimated at this time; however, it is likely that the costs related to this event will exhaust the Company's existing insurance coverage related to cyber attacks. While the Company will seek to obtain insurance for losses related to any similar future events, there can be no assurance that such insurance will be available to the Company. Any future such events, particularly if not covered by insurance, could have material adverse effects on the Company's business and/or results of operations.
Item 6.    Exhibits
31.1
31.2
32.1
32.2
101.INS XBRL Instance Document
101.SCH XBRL Taxonomy Extension Schema Document
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF XBRL Taxonomy Extension Definition Linkbase Document
101.LAB XBRL Taxonomy Extension Label Linkbase Document
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document
104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


16

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
  KEWAUNEE SCIENTIFIC CORPORATION
                             (Registrant)
Date: December 17, 2021   By /s/ Donald T. Gardner III
  Donald T. Gardner III
  (As duly authorized officer and Vice President, Finance and Chief Financial Officer)

17
Exhibit 31.1 CERTIFICATION I, Thomas D. Hull III, certify that: 1. I have reviewed this Quarterly Report on Form 10-Q of Kewaunee Scientific Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. /s/ Thomas D. Hull III Thomas D. Hull III President and Chief Executive Officer Date: December 17, 2021

 
Exhibit 31.2 CERTIFICATION I, Donald T. Gardner III, certify that: 1. I have reviewed this Quarterly Report on Form 10-Q of Kewaunee Scientific Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. /s/ Donald T. Gardner III Donald T. Gardner III Vice President, Finance and Chief Financial Officer Date: December 17, 2021

 
Exhibit 32.1 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report on Form 10-Q of Kewaunee Scientific Corporation (the “Company”) for the period ended October 31, 2021, I, Thomas D. Hull III, President and Chief Executive Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge: (1) such Form 10-Q of the Company for the period ended October 31, 2021, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in such Form 10-Q of the Company for the period ended October 31, 2021, fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: December 17, 2021 /s/ Thomas D. Hull III Thomas D. Hull III President and Chief Executive Officer

 
Exhibit 32.2 CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report on Form 10-Q of Kewaunee Scientific Corporation (the “Company”) for the period ended October 31, 2021, I, Donald T. Gardner III, Vice President, Finance and Chief Financial Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002, that to my knowledge: (1) such Form 10-Q of the Company for the period ended October 31, 2021, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in such Form 10-Q of the Company for the period ended October 31, 2021, fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: December 17, 2021 /s/ Donald T. Gardner III Donald T. Gardner III Vice President, Finance and Chief Financial Officer