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KEWAUNEE SCIENTIFIC CORP /DE/ - Quarter Report: 2004 October (Form 10-Q)

Form 10-Q
Table of Contents

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q

 

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarterly period ended October 31, 2004

 

¨ 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)

 

(I.R.S.Employer

Identification No.)

2700 West Front Street    
Statesville, North Carolina   28677
(Address of principal executive offices)   (Zip Code)

 

(704) 873-7202

(Registrant’s telephone number, including area code)

 

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 x No ¨

 

As of December 10, 2004, the Registrant had outstanding 2,491,770 shares of Common Stock.

 

Pages: This report, excluding exhibits, contains 19 pages numbered sequentially from this cover page.

 


 


Table of Contents

 

KEWAUNEE SCIENTIFIC CORPORATION

 

INDEX TO FORM 10-Q

 

FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2004

 

         Page Number

PART I.

  FINANCIAL INFORMATION     

Item 1.

  Financial Statements     

Condensed Consolidated Statements of Operations - Three months and six months ended October 31, 2004 and 2003

   3

Condensed Consolidated Balance Sheets October 31, 2004 and April 30, 2004

   4

Condensed Consolidated Statements of Cash Flows - Six months ended October 31, 2004 and 2003

   5

Notes to Condensed Consolidated Financial Statements

   6

Item 2.

  Management’s Discussion and Analysis of Financial Condition and Results of Operations    11
    Review by Independent Registered Public Accounting Firm    15
    Report of Independent Registered Public Accounting Firm    16

Item 3.

  Quantitative and Qualitative Disclosures About Market Risk    17

Item 4.

  Controls and Procedures    17

PART II.

  OTHER INFORMATION     

Item 4.

  Submission of matters to a Vote of Security Holders    18

Item 6.

  Exhibits and Reports on Form 8-K    18

SIGNATURE

   19

 


Table of Contents

 

Part 1. Financial Information

 

Item 1. Financial Statements

 

Kewaunee Scientific Corporation

Condensed Consolidated Statements of Operations

(Unaudited)

($ in thousands, except per share data)

 

     Three months ended
October 31


    Six months ended
October 31


 
     2004

    2003

    2004

    2003

 

Net sales

   $ 18,365     $ 24,384     $ 38,653     $ 48,597  

Cost of products sold

     14,812       20,280       31,724       40,890  
    


 


 


 


Gross profit

     3,553       4,104       6,929       7,707  

Operating expenses

     3,260       3,321       6,306       6,322  
    


 


 


 


Operating earnings

     293       783       623       1,385  

Interest expense

     (84 )     (83 )     (170 )     (161 )

Other (expense) income

     (46 )     (47 )     3       149  
    


 


 


 


Earnings before income taxes

     163       653       456       1,373  

Income tax expense

     55       235       155       494  
    


 


 


 


Net earnings

   $ 108     $ 418     $ 301     $ 879  
    


 


 


 


Net earnings per share-

                                

Basic

   $ 0.04     $ 0.17     $ 0.12     $ 0.35  

Diluted

   $ 0.04     $ 0.17     $ 0.12     $ 0.35  

Weighted average number of common shares outstanding (in thousands)-

                                

Basic

     2,492       2,486       2,491       2,485  

Diluted

     2,494       2,491       2,497       2,490  

 

See accompanying notes to condensed consolidated financial statements.

 

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Kewaunee Scientific Corporation

Condensed Consolidated Balance Sheets

(in thousands)

 

     October 31
2004


    April 30
2004


 
     (Unaudited)        

Assets

                

Current assets:

                

Cash and cash equivalents

   $ 817     $ 1,167  

Receivables, less allowance

     23,539       24,987  

Inventories

     4,004       4,285  

Deferred income taxes

     501       517  

Prepaid income taxes

     —         165  

Prepaid expenses and other current assets

     611       415  
    


 


Total current assets

     29,472       31,536  

Property, plant and equipment, at cost

     33,663       33,246  

Accumulated depreciation

     (22,921 )     (21,884 )
    


 


Net property, plant and equipment

     10,742       11,362  
    


 


Other assets

     6,411       7,563  
    


 


Total Assets

   $ 46,625     $ 50,461  
    


 


Liabilities and Stockholders’ Equity

                

Current liabilities:

                

Short-term borrowings

   $ 6,079     $ 6,996  

Current portion of long-term debt

     1,118       1,118  

Accounts payable

     5,087       6,924  

Employee compensation and amounts withheld

     984       1,507  

Deferred Revenue

     986       1,152  

Other accrued expenses

     1,356       1,222  
    


 


Total current liabilities

     15,610       18,919  

Long-term debt

     372       931  

Deferred income taxes

     1,013       1,013  

Accrued employee benefit plan costs

     2,328       2,325  

Other long-term liabilities

     515       482  
    


 


Total Liabilities

     19,838       23,670  

Stockholders’ equity:

                

Common stock

     6,550       6,550  

Additional paid-in-capital

     132       141  

Retained earnings

     20,828       20,876  

Accumulated other comprehensive income

     67       36  

Common stock in treasury, at cost

     (790 )     (812 )
    


 


Total stockholders’ equity

     26,787       26,791  
    


 


Total Liabilities and Stockholders’ Equity

   $ 46,625     $ 50,461  
    


 


 

See accompanying notes to condensed consolidated financial statements.

 

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Kewaunee Scientific Corporation

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

 

     Six months ended
October 31


 
     2004

    2003

 

Cash flows from operating activities:

                

Net earnings

   $ 301     $ 879  

Adjustments to reconcile net earnings to net cash used in operating activities:

                

Depreciation

     1,037       1,041  

Provision for bad debts

     321       6  

Decrease in prepaid income taxes

     165       1,077  

Decrease (increase) in receivables

     1,127       (5,798 )

Decrease in inventories

     281       1,218  

Decrease in accounts payable and other current liabilities

     (2,226 )     (1,974 )

(Decrease) increase in deferred revenue

     (166 )     884  

Other, net

     1,039       481  
    


 


Net cash provided by (used in) operating activities

     1,879       (2,186 )

Cash flows from investing activities:

                

Capital expenditures

     (417 )     (1,215 )
    


 


Net cash used in investing activities

     (417 )     (1,215 )

Cash flows from financing activities:

                

(Decrease) increase in short-term borrowings

     (917 )     3,324  

Proceeds from long-term debt

     —         1,200  

Payments on long-term debt

     (559 )     (522 )

Dividends paid

     (349 )     (348 )

Proceeds from exercise of stock options (including tax benefit)

     13       23  
    


 


Net cash (used in) provided by financing activities

     (1,812 )     3,677  
    


 


(Decrease) increase in cash and cash equivalents

     (350 )     276  

Cash and cash equivalents, beginning of period

     1,167       520  
    


 


Cash and cash equivalents, end of period

   $ 817     $ 796  
    


 


 

See accompanying notes to condensed financial statements.

 

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Kewaunee Scientific Corporation

Notes to Condensed Financial Statements

(unaudited)

 

A. Financial Information

 

The unaudited interim condensed consolidated financial statements of Kewaunee Scientific Corporation (the “Company” or “Kewaunee”) 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 have been condensed or omitted. These interim condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company’s 2004 Annual Report to Stockholders.

 

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates.

 

In the opinion of management, the interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the interim periods. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year.

 

B. Revenue Recognition

 

Product sales are generally recognized at the date of shipment, or when customers have purchased and accepted title of the goods, but because of construction delays, requested the Company to temporarily store the finished goods on the customer’s behalf.

 

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Product sales for fixed-price construction contracts involve a signed contract for a fixed price to provide the Company’s laboratory furniture and fume hoods for a construction project. The Company usually is in the role as a subcontractor, but in some cases may enter into a contract directly with the end-user of the products. Product sales for fixed-price construction contracts are generated from multiple-element arrangements that require separate units of accounting, and estimates regarding the fair value of individual elements.

 

The Company determined that its multiple-element arrangements are generally comprised of the following elements that would qualify as separate units of accounting: product sales and installation services. Each of these elements represent individual units of accounting as the delivered item has value to a customer on a stand-alone basis, objective and reliable evidence of fair value exists for undelivered items, and arrangements normally do not contain a general right of return relative to the delivered item. The Company determines fair value based on the price of the deliverable when it is sold separately or based on third-party evidence. In accordance with the guidance in EITF 00-21, the Company uses the residual method to allocate the arrangement consideration when it does not have fair value of the product sale. Under the residual method, the amount of consideration allocated to the delivered item equals the total arrangement consideration less the aggregate fair value of the undelivered items. Assuming all other criteria for revenue recognition have been met, the Company recognizes revenue for product sales at the date of shipment.

 

Product sales for purchase orders involve a purchase order received by the Company from its dealers and its stocking distributor. This category includes product sales for standard products, as well as products which require some customization. These sales are recognized under the terms of the purchase order which generally are freight on board (“FOB”) shipping point and do not include rights of return. Accordingly, sales are recognized at the time of shipment.

 

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C. Principles of Consolidation

 

The Company’s consolidated financial statements include the accounts of Kewaunee Scientific Corporation and its three subsidiaries. A brief description of each subsidiary, along with the amount of the Company’s controlling financial interests, is as follows:

 

(1) Kewaunee Labway Asia Pte. Ltd., a dealer for the Company’s products in Singapore, is 51% owned by the Company; (2) Labway Scientific India Pvt. Ltd., a dealer for the Company’s products in Bangalore, India, is 95% owned by Kewaunee Labway Asia; and (3) Kewaunee Scientific Corporation India Pvt. Ltd. in Bangalore, India, an assembly operation, is 100% owned by the Company. All intercompany balances, transactions, and profits have been eliminated.

 

D. Inventories

 

Inventories consisted of the following (in thousands):

 

     October 31,
2004


   April 30,
2004


Finished products

   $ 1,205    $ 1,364

Work in process

     1,129      1,373

Raw materials

     1,670      1,548
    

  

     $ 4,004    $ 4,285
    

  

 

E. Balance Sheet

 

The Company’s April 30, 2004 condensed consolidated balance sheet as presented herein is derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles.

 

F. Comprehensive Income

 

A reconciliation of net earnings and total comprehensive income for the three months and six months ended October 31, 2004 and 2003 is as follows (in thousands):

 

     Three months ended
October 31, 2004


   Three months ended
October 31, 2003


Net earnings

   $ 108    $ 418

Change in fair value of cash flow hedge, net of income tax

     3      3

Change in cumulative foreign currency translation adjustments

     42      16
    

  

Total comprehensive income

   $ 153    $ 437

 

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     Six months ended
October 31, 2004


   Six months ended
October 31, 2003


Net earnings

   $ 301    $ 879

Change in fair value of cash flow hedge, net of income tax

     7      9

Change in cumulative foreign currency translation adjustments

     24      33
    

  

Total comprehensive income

   $ 332    $ 921

 

Statement and Financial Accounting Standards (“SFAS”) No. 133, “Accounting for Derivative Instruments and Hedging Activities,” requires that the Company record derivatives on the balance sheet at fair value and establishes criteria for designation and effectiveness of hedging relationships. The nature of the Company’s business activities involves the management of various financial and market risks, including those related to changes in interest rates. The Company may from time-to-time employ derivative financial instruments, such as interest rate swap contracts, to mitigate or eliminate certain of those risks. The Company does not enter into derivative instruments for speculative purposes. The Company had one interest rate swap agreement outstanding at October 31, 2004.

 

For the Company’s foreign subsidiaries, assets and liabilities are translated at exchange rates prevailing on the balance sheet date. Revenues and expenses are translated at weighted average exchange rates prevailing during the period and any resulting translation adjustments are reported separately in shareholders’ equity.

 

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G. Stock Options

 

The Company has not granted stock options to employees or directors since fiscal year 2003. The Company accounts for stock options using the intrinsic value method. Under this method no compensation expense is recorded since the exercise price of the stock options is equal to the market price of the underlying stock on the grant date. Had compensation expense for the stock options issued been determined consistent with Financial Accounting Standards Board (“FASB”) Statement No. 123, “Accounting for Stock-Based Compensation,” net earnings and net earnings per share would have been reduced to the following pro forma amounts (in thousands, except per share data):

 

     Three months ended
October 31, 2004


    Three months ended
October 31, 2003


 

Net earnings as reported

   $ 108     $ 418  

Pro forma compensation cost

     (9 )     (20 )
    


 


Net earnings pro forma

     99       398  

Net earnings per share – Basic

                

As reported

   $ 0.04     $ 0.17  

Pro forma

     0.04       0.16  

Net earnings per share – Diluted

                

As reported

   $ 0.04     $ 0.17  

Pro forma

     0.04       0.16  
     Six months ended
October 31, 2004


    Six months ended
October 31, 2003


 

Net earnings as reported

   $ 301     $ 879  

Pro forma compensation cost

     (17 )     (40 )
    


 


Net earnings pro forma

     284       839  

Net earnings per share – Basic

                

As reported

   $ 0.12     $ 0.35  

Pro forma

     0.11       0.34  

Net earnings per share – Diluted

                

As reported

   $ 0.12     $ 0.35  

Pro forma

     0.11       0.34  

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

The Company’s 2004 Annual Report to Stockholders contains management’s discussion and analysis of financial condition and results of operations at and for the year ended April 30, 2004. The following discussion and analysis describes material changes in the Company’s financial condition since April 30, 2004. The analysis of results of operations compares the three months and six months ended October 31, 2004 with the comparable period of the prior fiscal year.

 

Results of Operations

 

The Company recorded sales of $18.4 million for the three months ended October 31, 2004, a decline of 24.7% from sales of $24.4 million for the comparable period of the prior year. Sales for the six months ended October 31, 2004 were $38.7 million, a decline of 20.5% from sales of $48.6 million in the comparable period of the prior year. The order backlog was $38.6 million at October 31, 2004. This compares to order backlogs of $39.6 million at July 31, 2004 and $46.3 million at October 31, 2003.

 

Several issues adversely affected the laboratory furniture marketplace during the quarter. Uncertainties surrounding the presidential election and its potential impact on the price of prescription drugs continued to impact the willingness of pharmaceutical companies to invest in new research projects. Additionally, the marketplace was affected by significant increases in the cost of construction materials, particularly steel. The resulting higher-than-planned construction costs delayed the award date of many projects, as some customers were forced to reduce the scope of their projects to remain within budget. Reduced state budgets also adversely affected funding available for education construction projects. An increase in order activity resulting from the resolution of the uncertainty surrounding the presidential election is not expected to begin to improve sales before the Company’s fourth quarter.

 

The gross profit margin for the three months ended October 31, 2004 was 19.3% of sales, as compared to 16.8% of sales in the comparable quarter of the prior year. The gross profit margin for the six months ended October 31, 2004 was 17.9%, as compared to 15.9% in the comparable period of the prior year. The improved gross profit margins for the three and six months of the current year resulted from improvements in manufacturing costs and efficiencies, partially offset by higher costs in the

 

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current year for raw materials, particularly steel, as well as higher energy costs.

 

To further reduce costs, significant reductions in the Statesville workforce were made during the quarter, in both the hourly and administrative areas of the Company. The reductions, which involved approximately 18% of the Statesville workforce, included 58 permanent employees and 42 temporary employees. Annual savings associated with the reductions are estimated at $3.6 million, of which $774,000 relates to operating expenses. All associated termination benefits, which totaled $31,488, were expensed during the current quarter. Additionally, a number of cost cutting initiatives were implemented during the quarter that are expected to further reduce manufacturing and raw material costs.

 

Operating expenses for the three months ended October 31, 2004 were $3.3 million, or 17.8% of sales, as compared to $3.3 million, or 13.6% of sales, in the comparable period of the prior year. Operating expenses for the six months ended October 31, 2004 were $6.3 million, or 16.3% of sales, as compared to $6.3 million, or 13.0% of sales, in the comparable period of the prior year. The increase in operating expenses as a percent of sales for each of the current year periods resulted as operating expense levels remained relatively flat as sales declined. As compared to the prior year periods, operating expenses included increases in bad debt expense of $199,000 and $315,000 for the three months and six months ended October 31, 2004, respectively.

 

Operating earnings of $293,000 and $623,000 were recorded for the three months and six months ended October 31, 2004, respectively, compared to $783,000 and $1.4 million recorded for the comparable period of the prior year.

 

Interest expense was $84,000, and $170,000 for the three months and six months ended October 31, 2004, respectively, compared to $83,000 and $161,000 for the same periods of the prior year. The impacts of increased borrowing rates for the three and six months of the current year were offset by lower levels of borrowings.

 

Other expense was $46,000 and other income was $3,000 in the three months and six months ended October 31, 2004, respectively, compared to other expense of $47,000 and other income of $149,000 for the comparable periods of the prior year. Other income for the prior year was increased by $295,000 in the first quarter of the prior year from the resolution of a

 

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disputed claim for laboratory furniture sold by the Company several years earlier.

 

Income tax expenses of $55,000 and $155,000 were recorded for the three months and six months ended October 31, 2004, respectively, as compared to an income tax expense of $235,000 and $494,000 recorded for the comparable periods of the prior year. The effective tax rate was approximately 34.0% for the three and six months ended October 31, 2004 and 36.0% for the three and six months period ended October 31, 2003.

 

Net earnings of $108,000 and $301,000, or $.04 per diluted share and $.12 per diluted share, were recorded for the three months and six months ended October 31, 2004, respectively, as compared to net earnings of $418,000 and $879,000, or $.17 per diluted share and $.35 per diluted share for the comparable periods of the prior year.

 

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. The Company believes that these sources, will be sufficient to support ongoing business levels, including capital expenditures through the current fiscal year.

 

The Company had working capital of $13.9 million at October 31, 2004, as compared to $12.6 million at April 30, 2004. The ratio of current assets to current liabilities was 1.9-to-1.0 at October 31, 2004, as compared to 1.7-to-1.0 at April 30, 2004. At October 31, 2004, advances of $6,079,000 were outstanding under the Company’s revolving credit bank loan, leaving available credit under this line in the amount of $2,921,000. During the quarter, the term of this loan was extended to December 31, 2006.

 

The Company’s operations provided cash of $1.9 million during the six months ended October 31, 2004, primarily attributable to operations and a decrease in accounts receivable. Cash of $890,000 was also received during the quarter from the cancellation of life insurance policies covering all salaried employees when these policies were replaced with a group term insurance plan. The favorable impact of these items was partially offset by the impact of a decrease in accounts payable and other current liabilities. The Company’s operations used cash of $2.2 million during the six months ended October 31, 2003, primarily resulting from a significant increase in accounts receivable and a decrease in accounts payable.

 

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During the six months ended October 31, 2004, the Company used cash of $417,000 in investing activities, primarily for purchases of production equipment. This compares to the use of $1.2 million for similar investing activities in the same period of the prior year.

 

The Company’s financing activities used cash of $1.8 million during the six months ended October 31, 2004. This included $917,000 for repayment of advances under the revolving credit loan, long-term debt repayments of $559,000, and cash dividends paid of $349,000. Financing activities provided cash of $3.7 million in the same period of the prior year, which included $3.3 million received from advances under the revolving credit loan and $1.2 million from long-term debt. For that period, cash was used for long-term debt repayments of $522,000 and cash dividends paid of $348,000.

 

Outlook for Remainder of Fiscal Year 2005

 

In addition to general economic factors affecting the Company and its markets, 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 ability to predict future demand is very limited given, among other general economic factors affecting the Company and its markets, the Company’s role as subcontractor or supplier to dealers of subcontractors.

 

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

 

Certain statements in this report 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 the Company’s operations, markets, products, services, and prices. The cautionary statements made pursuant to the Reform Act herein and elsewhere by the Company should not be construed as exhaustive or as any admission regarding the adequacy of disclosures made by the Company prior to the effective date of the Reform Act. The Company cannot always predict what factors would cause actual results to differ materially from those indicated by the forward-looking statements. 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.

 

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REVIEW BY INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

A review of the interim financial information included in this Quarterly Report on Form 10-Q for the three months and six months ended October 31, 2004 has been performed by PricewaterhouseCoopers LLP, the Company’s independent auditors. Their report on the interim financial information follows.

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and Stockholders of

Kewaunee Scientific Corporation

Statesville, North Carolina

 

We have reviewed the accompanying condensed consolidated balance sheet of Kewaunee Scientific Corporation as of October 31, 2004 and April 30, 2004, and the related condensed consolidated statements of operations for each of the three and six-month periods ended October 31, 2004 and October 31, 2003 and the condensed consolidated statement of cash flows for the six-month periods ended October 31, 2004 and October 31, 2003. These interim financial statements are the responsibility of the Company’s management.

 

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

 

Based on our review, we are not aware of any material modifications that should be made to the accompanying condensed consolidated interim financial statements information for them to be in conformity with accounting principles generally accepted in the United States of America.

 

We previously audited in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet as of April 30, 2004, and the related consolidated statements of operations, of stockholder’s equity, and of cash flows for the year then ended (not presented herein), and in our report dated June 4, 2004 we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of April 30, 2004, is fairly stated in all material respects in relation to the consolidated balance sheet from which it has been derived.

 

PricewaterhouseCoopers LLP

Charlotte, North Carolina

November 22, 2004

 

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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, 2004.

 

Item 4. Controls and Procedures

 

(a) Evaluation of disclosure controls and procedures

 

An evaluation was performed under the supervision and 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, 2004. Based on that evaluation, the Company’s management, including the CEO and CFO, concluded that, as of October 31, 2004, 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.

 

(b) Changes in internal controls

 

There were no significant changes in the Company’s internal controls or in other factors that could significantly affect these controls subsequent to October 31, 2004. As no significant deficiencies or material weaknesses were found, no corrective actions were taken.

 

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PART II. OTHER INFORMATION

 

Item 4. Submission of Matters to a Vote of Security Holders

 

The Company’s Annual Meeting of Stockholders was held on August 25, 2004. Information regarding the results of this meeting are incorporated by reference from the Company’s Report on Form 10-Q for the three months ended July 31, 2004.

 

Item 6. Exhibits and Reports on Form 8-K

 

(a) Exhibits

 

31.1    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2    Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2    Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

(b) Reports on Form 8-K

 

A Form 8-K was filed on August 26, 2004, with the Commission which included as an exhibit the Company’s Press Release announcing the financial results for the first quarter ended July 31, 2004.

 

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Table of Contents

 

SIGNATURE

 

Pursuant to the requirements of the Securities and 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 13, 2004

      By   /s/    D. MICHAEL PARKER         
                D. Michael Parker
                Senior Vice President,
                Finance and Chief Financial Officer

 

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