Kewaunee Scientific Corporation (KEQU) has reported a 38.30 percent jump in profit for the quarter ended Jul. 31, 2016. The company has earned $1.30 million, or $0.48 a share in the quarter, compared with $0.94 million, or $0.35 a share for the same period last year. Revenue during the quarter grew 19.91 percent to $37.28 million from $31.09 million in the previous year period. Gross margin for the quarter expanded 36 basis points over the previous year period to 19.15 percent. Total expenses were 94.47 percent of quarterly revenues, down from 95.10 percent for the same period last year. This has led to an improvement of 63 basis points in operating margin to 5.53 percent.
Operating income for the quarter was $2.06 million, compared with $1.52 million in the previous year period.
"We had a very strong first quarter with our Domestic and International businesses posting strong year-over-year sales growth," said David M. Rausch, Kewaunee's president and chief executive officer. "We have grown our sales and net earnings, continuing to operate at high levels and benefiting from ongoing productivity improvements and cost reduction programs.
Working capital increases
Kewaunee Scientific Corporation has recorded an increase in the working capital over the last year. It stood at $30.82 million as at Jul. 31, 2016, up 8.04 percent or $2.29 million from $28.52 million on Jul. 31, 2015. Current ratio was at 2.18 as on Jul. 31, 2016, down from 2.36 on Jul. 31, 2015. Cash conversion cycle (CCC) has decreased to 61 days for the quarter from 91 days for the last year period. Days sales outstanding went down to 74 days for the quarter compared with 85 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 49 days for the previous year period. At the same time, days payable outstanding went down to 38 days for the quarter from 42 for the same period last year.
Debt comes down
Kewaunee Scientific Corporation has recorded a decline in total debt over the last one year. It stood at $7.38 million as on Jul. 31, 2016, down 17.89 percent or $1.61 million from $8.99 million on Jul. 31, 2015. Total debt was 9.41 percent of total assets as on Jul. 31, 2016, compared with 12.82 percent on Jul. 31, 2015. Debt to equity ratio was at 0.19 as on Jul. 31, 2016, down from 0.25 as on Jul. 31, 2015. Interest coverage ratio improved to 25.76 for the quarter from 16.57 for the same period last year.
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