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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, 2023
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: (704873-7202
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 5, 2023, the registrant had outstanding 2,901,671 shares of Common Stock.




KEWAUNEE SCIENTIFIC CORPORATION
INDEX TO FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2023
  Page Number

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,
 2023202220232022
Net sales$50,436 $54,564 $100,275 $104,687 
Cost of products sold36,968 45,863 74,893 89,790 
Gross profit13,468 8,701 25,382 14,897 
Operating expenses8,359 7,946 16,465 14,538 
Operating profit5,109 755 8,917 359 
Pension expense(40)(8)(81)(35)
Other income, net148 79 223 546 
Interest expense(372)(370)(802)(754)
Profit before income taxes4,845 456 8,257 116 
Income tax expense2,015 570 2,912 949 
Net earnings (loss)2,830 (114)5,345 (833)
Less: Net earnings attributable to the non-controlling interest98 129 139 157 
Net earnings (loss) attributable to Kewaunee Scientific Corporation$2,732 $(243)$5,206 $(990)
Net earnings (loss) per share attributable to Kewaunee Scientific Corporation stockholders
Basic$0.94 $(0.09)$1.81 $(0.35)
Diluted$0.93 $(0.09)$1.79 $(0.35)
Weighted average number of common shares outstanding
Basic2,903 2,830 2,882 2,819 
Diluted2,931 2,830 2,908 2,819 









See accompanying notes to Condensed Consolidated Financial Statements.
1


Kewaunee Scientific Corporation
Condensed Consolidated Statements of Comprehensive Earnings (Loss)
(Unaudited)
($ in thousands)
 Three Months Ended
October 31,
Six Months Ended
October 31,
 2023202220232022
Net earnings (loss)$2,830 $(114)$5,345 $(833)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments(251)(237)(395)(461)
Other comprehensive loss(251)(237)(395)(461)
Comprehensive earnings (loss), net of tax2,579 (351)4,950 (1,294)
Less: Comprehensive income attributable to the non-controlling interest98 129 139 157 
Comprehensive earnings (loss) attributable to Kewaunee Scientific Corporation$2,481 $(480)$4,811 $(1,451)





















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, 2023$7,084 $5,059 $(53)$28,761 $(3,442)$37,409 
Net earnings attributable to Kewaunee Scientific Corporation— — — 2,474 — 2,474 
Other comprehensive loss— — — — (144)(144)
Stock-based compensation185 (494)— — — (309)
Balance at July 31, 2023$7,269 $4,565 $(53)$31,235 $(3,586)$39,430 
Net earnings attributable to Kewaunee Scientific Corporation— — — 2,732 — 2,732 
Other comprehensive loss— — — — (251)(251)
Stock-based compensation 241 — — — 241 
Purchase of Treasury Stock, 2,423 shares
— — (44)— — (44)
Balance at October 31, 2023$7,269 $4,806 $(97)$33,967 $(3,837)$42,108 

 Common
Stock
Additional
Paid-in
Capital
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total Kewaunee Scientific Corporation Stockholders' Equity
Balance at April 30, 2022$6,983 $4,483 $(53)$28,023 $(3,742)$35,694 
Net loss attributable to Kewaunee Scientific Corporation— — — (747)— (747)
Other comprehensive loss— — — — (224)(224)
Stock-based compensation97 (134)— — — (37)
Balance at July 31, 2022$7,080 $4,349 $(53)$27,276 $(3,966)$34,686 
Net loss attributable to Kewaunee Scientific Corporation— — — (243)— (243)
Other comprehensive loss— — — — (237)(237)
Stock-based compensation4 192 — — — 196 
Balance at October 31, 2022$7,084 $4,541 $(53)$27,033 $(4,203)$34,402 









3








See accompanying notes to Condensed Consolidated Financial Statements.
4


Kewaunee Scientific Corporation
Condensed Consolidated Balance Sheets
($ and shares in thousands, except per share amounts)
October 31, 2023April 30, 2023
 (Unaudited) 
Assets
Current Assets:
Cash and cash equivalents$13,722 $8,078 
Restricted cash7,989 5,737 
Receivables, less allowance; $566; $476, on each respective date
42,600 46,081 
Inventories21,666 21,889 
Prepaid expenses and other current assets4,899 6,135 
Total Current Assets90,876 87,920 
Property, plant and equipment, at cost63,733 61,368 
Accumulated depreciation(45,899)(44,966)
Net Property, Plant and Equipment17,834 16,402 
Right of use assets8,393 9,170 
Other assets4,605 5,406 
Total Assets$121,708 $118,898 
Liabilities and Stockholders' Equity
Current Liabilities:
Short-term borrowings$5,855 $3,587 
Current portion of financing liability677 642 
Current portion of financing lease liabilities108 85 
Current portion of operating lease liabilities2,141 1,967 
Accounts payable19,172 23,599 
Employee compensation and amounts withheld5,010 4,304 
Deferred revenue4,919 4,097 
Other accrued expenses850 1,772 
Total Current Liabilities38,732 40,053 
Long-term portion of financing liability27,782 28,132 
Long-term portion of financing lease liabilities259 148 
Long-term portion of operating lease liabilities6,193 7,136 
Accrued pension and deferred compensation costs3,839 3,546 
Deferred income taxes1,051 943 
Other non-current liabilities438 455 
Total Liabilities78,294 80,413 
Commitments and Contingencies
Stockholders' Equity:
Common stock, $2.50 par value, Authorized – 5,000 shares; Issued – 2,907 shares; 2,833 shares; – Outstanding – 2,902 shares; 2,830 shares, on each respective date
7,269 7,084 
Additional paid-in-capital4,806 5,059 
Retained earnings33,967 28,761 
Accumulated other comprehensive loss(3,837)(3,442)
Common stock in treasury, at cost, 5 shares; 3 shares, on each respective date
(97)(53)
Total Kewaunee Scientific Corporation Stockholders' Equity42,108 37,409 
Non-controlling interest1,306 1,076 
Total Stockholders' Equity43,414 38,485 
Total Liabilities and Stockholders' Equity$121,708 $118,898 

See accompanying notes to Condensed Consolidated Financial Statements.
5


Kewaunee Scientific Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)
($ in thousands)
 Six Months Ended
October 31,
 20232022
Cash flows from operating activities:
Net earnings (loss)$5,345 $(833)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation1,488 1,433 
Bad debt provision185 (8)
Stock-based compensation expense424 368 
Deferred income taxes108 (22)
Change in assets and liabilities:
Receivables3,296 (209)
Inventories223 (706)
Accounts payable and other accrued expenses(4,660)(6,412)
Deferred revenue822 7,869 
Other, net1,688 (2,066)
Net cash provided by (used in) operating activities8,919 (586)
Cash flows from investing activities:
Capital expenditures(2,919)(919)
Net cash used in investing activities(2,919)(919)
Cash flows from financing activities:
Proceeds from short-term borrowings79,116 4,431 
Repayments on short-term borrowings(76,847)(6,019)
Proceeds from sale-leaseback financing transaction 13,456 
Payments on sale-leaseback financing transaction(316)(282)
Proceeds from long-term lease obligations202  
Payments on long-term lease obligations(67)(61)
Net cash provided by financing activities2,088 11,525 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(192)(597)
Increase in cash, cash equivalents and restricted cash7,896 9,423 
Cash, cash equivalents and restricted cash, beginning of period13,815 6,894 
Cash, cash equivalents and restricted cash, end of period$21,711 $16,317 










See accompanying notes to Condensed Consolidated Financial Statements.
6


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. 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 2023 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, 2023 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 six months ended October 31, 2023 and twelve months ended April 30, 2023, 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 and domestic bank deposits used as collateral for an outstanding letter of credit.
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, 2023April 30, 2023
Cash and cash equivalents$13,722 $8,078 
Restricted cash7,989 5,737 
Total cash, cash equivalents and restricted cash$21,711 $13,815 

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.
7


Disaggregated Revenue
A summary of net sales transferred to customers over time and at a point in time for the periods ended October 31, 2023 and October 31, 2022 is as follows (in thousands):
Three Months Ended
 October 31, 2023October 31, 2022
 DomesticInternationalTotalDomesticInternationalTotal
Over Time$32,769 $16,251 $49,020 $36,374 $16,573 $52,947 
Point in Time1,416  1,416 1,617  1,617 
Total$34,185 $16,251 $50,436 $37,991 $16,573 $54,564 
Six Months Ended
 October 31, 2023October 31, 2022
 DomesticInternationalTotalDomesticInternationalTotal
Over Time$66,673 $30,670 $97,343 $71,727 $29,228 $100,955 
Point in Time2,932  2,932 3,732  3,732 
Total$69,605 $30,670 $100,275 $75,459 $29,228 $104,687 
Contract Balances
The closing balances of contract assets included $13,015,000 in accounts receivable and $506,000 in other assets at October 31, 2023. The opening balance of contract assets arising from contracts with customers included $13,459,000 in accounts receivable and $1,191,000 in other assets at April 30, 2023. The closing and opening balances of contract liabilities included in deferred revenue arising from contracts with customers were $4,919,000 at October 31, 2023 and $4,097,000 at April 30, 2023. 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, 2023 and October 31, 2023 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 method at the lower of cost or net realizable value. Inventories consisted of the following (in thousands):
October 31, 2023April 30, 2023
Finished products$2,897 $3,412 
Work in process1,669 2,380 
Raw materials17,100 16,097 
Total$21,666 $21,889 
The Company's International subsidiaries' inventories were $2,918,000 at October 31, 2023 and $2,740,000 at April 30, 2023 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, short-term borrowings, and the cash surrender value of life insurance policies. 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, 2023 and April 30, 2023 (in thousands):
 October 31, 2023
Financial AssetsLevel 1Level 2Total
Trading securities held in non-qualified compensation plans (1)
$1,316 $ $1,316 
Cash surrender value of life insurance policies (1)
 1,340 1,340 
Total$1,316 $1,340 $2,656 
Financial Liabilities
Non-qualified compensation plans (2)
$ $3,123 $3,123 
Total$ $3,123 $3,123 
 April 30, 2023
Financial AssetsLevel 1Level 2Total
Trading securities held in non-qualified compensation plans (1)
$1,105 $ $1,105 
Cash surrender value of life insurance policies (1)
 1,358 1,358 
Total$1,105 $1,358 $2,463 
Financial Liabilities
Non-qualified compensation plans (2)
$ $2,910 $2,910 
Total$ $2,910 $2,910 
(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 April 30, 2023, advances of $3.5 million were outstanding under the Company's Revolving Credit Facility. Amounts available under the Revolving Credit Facility were $10.3 million at April 30, 2023. The borrowing rate under the Revolving Credit Facility was 9.02% as of April 30, 2023. The Company's International subsidiaries had a balance outstanding at April 30, 2023 of $39,000 in short-term borrowings related to overdraft protection and short-term loan arrangements. At April 30, 2023, the Company was in compliance with all of the financial covenants under its Revolving Credit Facility.
At October 31, 2023, advances of $5.0 million were outstanding under the Revolving Credit Facility, with remaining borrowing capacity under the Revolving Credit Facility of $7.4 million. The borrowing rate under the Revolving Credit Facility was 9.53% as of October 31, 2023. In addition, the Company's International subsidiaries have a balance outstanding of $855,000 in short-term borrowings related to overdraft protection and short-term loan arrangements at October 31, 2023. The Company was in compliance with all of the financial covenants under its Revolving Credit Facility as of October 31, 2023.

G. Sale-Leaseback Financing Transaction

On December 22, 2021, the Company entered into an Agreement for Purchase and Sale of Real Property with CAI Investments Sub-Series 100 LLC, a Nevada limited liability company (the "Buyer"), for the Company’s headquarters and manufacturing facilities located at 2700 West Front Street in Statesville, North Carolina (the "Sale Agreement").
The Sale Agreement was finalized on March 24, 2022 and coincided with the Company and CAI Investments Medical Products I Master Lessee LLC ("Lessor") entering into a lease agreement. The lease arrangement is for a 20-year term, with four renewal options of five years each. Under the terms of the lease agreement, the Company’s initial basic rent is approximately $158,000 per month, with annual increases of approximately 2% each year of the initial term.
The Company accounted for the Sale-Leaseback Arrangement as a financing transaction as the lease agreement was determined to be a finance lease due to the significance of the present value of the lease payments, using a discount rate of 4.75% to reflect
9


the Company’s incremental borrowing rate, compared to the fair value of the leased property as of the lease commencement date. In measuring the lease payments for the present value analysis, the Company elected the practical expedient to combine the lease component (the leased facilities) with the non-lease component (property management provided by the Buyer/Lessor) into a single lease component.
The presence of a finance lease indicates that control of the property has not transferred to the Buyer/Lessor and, as such, the transaction was deemed a failed sale-leaseback and accounted for as a financing arrangement. As a result of this determination, the Company is viewed as having received the sale proceeds from the Buyer/Lessor in the form of a hypothetical loan collateralized by its leased facilities. The hypothetical loan is payable as principal and interest in the form of “lease payments” to the Buyer/Lessor. As such, the Company will not derecognize the property from its books for accounting purposes until the lease ends. No gain or loss was recognized under GAAP related to the Sale-Leaseback Arrangement.
As of October 31, 2023, the carrying value of the financing liability was $28,459,000, net of $677,000 in debt issuance costs, of which $677,000 was classified as current on the Consolidated Balance Sheet with $27,782,000 classified as long-term. As of April 30, 2023, the carrying value of the financing liability was $28,774,000, net of $708,000 in debt issuance costs, of which $642,000 was classified as current on the Consolidated Balance Sheet with $28,132,000 classified as long-term. The monthly lease payments are split between a reduction of principal and interest expense using the effective interest rate method. Interest expense associated with the financing arrangement was $322,000 and $330,000 for the three months ended October 31, 2023 and October 31, 2022, respectively. Interest expense associated with the financing arrangement was $647,000 and $662,000 for the six months ended October 31, 2023 and October 31, 2022, respectively.
The Company will depreciate the building down to zero over the 20-year assumed economic life of the Property so that at the end of the lease term, the remaining carrying amount of the financing liability will equal the carrying amount of the land of $41,000.
Remaining future cash payments related to the financing liability as of October 31, 2023 are as follows:
($ in thousands)
Remainder of 2024$967 
20251,970 
20262,009 
20272,050 
20282,090 
Thereafter33,867 
Total Minimum Liability Payments42,953 
Imputed Interest(14,494)
Total$28,459 

H. 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 financing leases for vehicles and IT equipment in the U.S. At October 31, 2023 and April 30, 2023, right-of-use assets totaled $8,393,000 and $9,170,000, respectively. Operating cash paid to settle lease liabilities was $1,282,000 and $1,026,000 for the six months ended October 31, 2023 and October 31, 2022, 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 $847,000 and $1,714,000 for the three and six months ended October 31, 2023, inclusive of period cost for short-term leases, not included in lease liabilities, of $204,000 and $432,000. Operating lease expenses were $900,000 and $1,734,000 for the three and six months ended October 31, 2022, inclusive of period cost for short-term leases, not included in lease liabilities, of $398,000 and $708,000.
At October 31, 2023, the weighted average remaining lease term for the capitalized operating leases was 4.6 years and the weighted average discount rate was 5.1%. For the financing leases, the weighted average remaining lease term was 5.0 years and the weighted average discount rate was 8.5%. 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.
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Future minimum lease payments under non-cancelable leases as of October 31, 2023 were as follows:
OperatingFinancing
Remainder of fiscal 2024$1,294 $36 
20252,286 131 
20261,933 111 
20271,654 40 
20281,120 40 
Thereafter1,370 95 
Total Minimum Lease Payments9,657 453 
Imputed Interest(1,323)(86)
Total$8,334 $367 
Subsequent to October 31, 2023, the Company entered into a new lease that has not yet commenced as of October 31, 2023 with future minimum lease payments in aggregate of $681,000 that are not yet reflected on the Condensed Consolidated Balance Sheet. This lease is expected to commence in the second quarter of fiscal year 2025 with a lease term of 3 years.
I. Stockholders' Equity

Common Stock
The Company is authorized to issue 5,000,000 shares of Common Stock, par value of $2.50 per share. Holders of the Company's Common Stock are entitled to one vote per share. As of October 31, 2023 and April 30, 2023, there were approximately 2,902,000 and 2,830,000 shares, respectively, of Common Stock issued and outstanding. The Company has not declared or paid any dividends with respect to its Common Stock during the three and six months ended October 31, 2023. The declaration and payment of any future dividends is at the discretion of the Board of Directors and will depend upon many factors, including the Company's earnings, capital requirements, investment and growth strategies, financial conditions, the terms of the Company's indebtedness, which contains provisions that could limit the payment of dividends in certain circumstances, and other factors that the Board of Directors may deem to be relevant.

Share Repurchase Program
On August 31, 2023, the Board of Directors of the Company adopted a share repurchase program with authorization to repurchase up to 100,000 shares. There is no expiration date and currently, management has no plans to terminate this program. For the three months ended October 31, 2023, the Company repurchased 2,423 shares of the Company's common stock for approximately $44,000, excluding other costs such as broker commissions and fees. As of October 31, 2023, the total remaining purchase authorization was 97,577 shares.
J. 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 19,200 and 94,930 antidilutive RSUs and options outstanding at October 31, 2023 and October 31, 2022, respectively. The following is a reconciliation of basic to diluted weighted average common shares outstanding (in thousands):
Three Months EndedSix Months Ended
October 31, 2023October 31, 2022October 31, 2023October 31, 2022
Basic2,903 2,830 2,882 2,819 
Dilutive effect of stock options and RSUs28  26  
Weighted average common shares outstanding - diluted2,931 2,830 2,908 2,819 
K. Stock Options and Stock-based Compensation
The Company recognizes compensation costs related to stock options and other stock awards granted by the Company as operating expenses over their vesting period.
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In June 2023, the Company granted 87,220 RSUs under the 2017 Omnibus Incentive Plan ("2017 Plan"). These RSUs include both a service and a performance component, vesting over a three-year period. The recognized expense is based upon the vesting period for service criteria and estimated attainment of the performance criteria at the end of the three-year period, based on the ratio of cumulative days of service to total days over the three-year period. The Company recorded stock-based compensation expense under the 2017 Plan of $241,000 and $414,000 during the three and six months ended October 31, 2023 with the remaining estimated stock-based compensation expense of $1,791,000 to be recorded over the remaining vesting periods. The Company recorded stock-based compensation expense under the 2017 Plan of $196,000 and $327,000 during the three and six months ended October 31, 2022.
In August 2023, the stockholders approved the 2023 Omnibus Incentive Plan ("2023 Plan"), which enables the Company to grant equity-based awards, with potential recipients including directors, consultants, and employees. This plan replaces the 2017 Plan. No new awards will be granted under the prior plans. All outstanding options granted under the prior plans remain subject to, and will be settled upon exercise under, the prior plans. At the date of approval of the 2023 Plan, there were 64,633 shares available for issuance under the prior plan. These shares and any outstanding awards that subsequently cease to be subject to such awards are available under the 2023 Plan. The 2023 Plan also increased the total number of shares reserved for issuance under the Company's equity compensation plans by 310,000, for a total of 374,633 shares reserved for issuance under the 2023 Plan. The Company did not issue any RSUs under the 2023 Plan during the three months ended October 31, 2023.
Directors' fees paid with shares of common stock in lieu of cash in accordance with Director compensation guidelines were $10,000 and $41,000 for the six month periods ended October 31, 2023 and October 31, 2022, respectively, and were also included in the stock-based compensation on the Condensed Consolidated Statements of Cash Flows.

L. Income Taxes
Income tax expense of $2,015,000 and $2,912,000 was recorded for the three and six months ended October 31, 2023, respectively. Income tax expense of $570,000 and $949,000 was recorded for the three and six months ended October 31, 2022, respectively. The effective tax rate was 41.6% and 35.3% for the three and six months ended October 31, 2023, respectively. The effective tax rate for the current three and six month periods reflects the impact of foreign operations which are taxed at different rates than the U.S. tax rate of 21%, combined with expected current year tax expense for the Company's domestic operations and estimated increases in the domestic valuation allowance required for the fiscal year. In addition, the income tax expense recorded for the three and six months ended October 31, 2023 was unfavorably impacted by additional foreign tax expense of $534,000 related to India tax matters. This one-time expense is related to management's decision to discontinue management fees, citing challenges associated with the Indian tax authority and cost benefit analysis. The effective tax rate was 125.0% and 818.1% for the three and six months ended October 31, 2022, respectively. The prior year effective tax rate was influenced by foreign operations taxed at varying rates, as well as the inclusion of a valuation allowance against deferred tax assets, which led to the nullification of any U.S. income tax benefit for pre-tax losses incurred in the corresponding periods.
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 and Kewaunee Labway India Pvt. Ltd. international subsidiaries. The Company has a deferred tax liability of $1,421,000 and $1,318,000 for the withholding tax related to Kewaunee Labway India Pvt. Ltd. as of October 31, 2023 and April 30, 2023, respectively.
M. Defined Benefit Pension Plans
The Company has non-contributory defined benefit pension plans covering substantially all domestic salaried and hourly employees. These plans were amended as of April 30, 2005; no further benefits have been, or will be, earned under the plans, subsequent to the amendment date, and no additional participants will be added to the plans. There were no Company contributions paid to the plans for the three and six months ended October 31, 2023 and October 31, 2022. The Company assumed an expected long-term rate of return of 7.75% for the periods ended October 31, 2023 and October 31, 2022.
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Pension expense consisted of the following (in thousands):
Three Months Ended
October 31, 2023October 31, 2022
Service cost$ $ 
Interest cost223 100 
Expected return on plan assets(328)(166)
Recognition of net loss145 74 
Net periodic pension expense$40 $8 
Six Months Ended
October 31, 2023October 31, 2022
Service cost$ $ 
Interest cost447 422 
Expected return on plan assets(656)(701)
Recognition of net loss290 314 
Net periodic pension expense$81 $35 
N. 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, 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 segment and unallocated corporate expenses for the periods ended October 31, 2023 and 2022 (in thousands):
Domestic
Operations
International
Operations
Corporate /
Eliminations
Total
Three Months Ended October 31, 2023
Revenues from external customers$34,185 $16,251 $ $50,436 
Intersegment revenues374 1,155 (1,529) 
Earnings (loss) before income taxes4,287 1,801 (1,243)4,845 
Three Months Ended October 31, 2022
Revenues from external customers$37,991 $16,573 $ $54,564 
Intersegment revenues650 3,335 (3,985) 
Earnings (loss) before income taxes491 1,856 (1,891)456 
Domestic
Operations
International
Operations
Corporate /
Eliminations
Total
Six Months Ended October 31, 2023
Revenues from external customers$69,605 $30,670 $ $100,275 
Intersegment revenues425 1,816 (2,241) 
Earnings (loss) before income taxes7,910 2,594 (2,247)8,257 
Six Months Ended October 31, 2022
Revenues from external customers$75,459 $29,228 $ $104,687 
Intersegment revenues1,446 4,956 (6,402) 
Earnings (loss) before income taxes589 2,950 (3,423)116 
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O. 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 adopted this standard effective May 1, 2023. The adoption of this standard did not have a significant impact on the Company's consolidated financial position or results of operations.
Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations
The Company's 2023 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 fiscal year ended April 30, 2023. The following discussion and analysis describes material changes in the Company's financial condition since April 30, 2023. The analysis of results of operations compares the three and six months ended October 31, 2023 with the comparable periods of the prior year.
Results of Operations
Sales for the quarter were $50,436,000, a decrease from sales of $54,564,000 in the comparable period of the prior year. Domestic sales for the quarter were $34,185,000, down 10.0% from sales of $37,991,000 in the comparable period of the prior year. The decrease in Domestic sales was predominantly related to the reduction of installation revenue related to the Company's decision to no longer sell directly to end users, which typically included installation services. International sales for the quarter were $16,251,000, relatively flat when compared to sales of $16,573,000 in the comparable period of the prior year.
Sales for the six months ended October 31, 2023 were $100,275,000, a decrease from sales of $104,687,000 in the comparable period of the prior year. Domestic sales for the period were $69,605,000, down 7.8% from sales of $75,459,000 in the comparable period of the prior year. The decrease in Domestic sales was predominantly related to the reduction of installation revenue related to the Company's decision to no longer sell directly to end users, which typically included installation services. International sales for the period were $30,670,000, up 4.9% from sales of $29,228,000 in the comparable period of the prior year. International sales increased when compared to the prior year period due to the delivery of several large projects that were booked in the prior fiscal year.
The Company's order backlog was $146.3 million at October 31, 2023, as compared to $157.8 million at October 31, 2022, and $147.9 million at April 30, 2023.
The gross profit margin for the three months ended October 31, 2023 was 26.7% of sales, as compared to 15.9% of sales in the comparable quarter of the prior year. The gross profit margin for the six months ended October 31, 2023 was 25.3% of sales, as compared to 14.2% of sales in the comparable prior year period. The increase in gross profit margin percentage for the three and six months ended October 31, 2023 is primarily being generated from Domestic operations. Specifically, the increase is primarily driven by improved manufacturing productivity, cost containment actions, and the pricing of new orders in response to higher raw material input costs when compared to the prior year periods.
Operating expenses for the three months ended October 31, 2023 were $8,359,000, or 16.6% of sales, as compared to $7,946,000, or 14.6% of sales, in the comparable period of the prior year. Operating expenses for the six months ended October 31, 2023 were $16,465,000, or 16.4% of sales, as compared to $14,538,000, or 13.9% of sales, in the comparable period of the prior year. The increase in operating expenses for the three months ended October 31, 2023 was primarily due to increases in SG&A wages, benefits, incentive and stock based compensation of $635,000 and increases in international operating expenses of $317,000, partially offset by decreases in consulting and professional fees of $324,000 and other taxes and fees of $163,000. The increase in operating expenses for the six months ended October 31, 2023 was primarily due to increases in SG&A wages, benefits, incentive and stock-based compensation of $1,458,000, bad debt expense of $193,000, and increases in international operating expenses of $486,000, partially offset by decreases in consulting and professional fees of $371,000 and other taxes and fees of $82,000.
Interest expense, net was $372,000 and $802,000 for the three and six months ended October 31, 2023, respectively, as compared to $370,000 and $754,000, respectively, for the comparable periods of the prior year. The changes in interest expense were due to changes in the levels of bank borrowings and interest rates.
The effective income tax rate for the three and six months ended October 31, 2023 was 41.6% and 35.3%, respectively, as compared to 125.0% and 818.1% for the three and six months ended October 31, 2022, respectively. Income tax expense of $2,015,000 and $570,000 was recorded for the three months ended October 31, 2023 and 2022, respectively. Income tax expense of $2,912,000 and $949,000 was recorded for the six months ended October 31, 2023 and 2022, respectively. The
14


effective tax rate for the three and six months ended October 31, 2023 reflects the impact of foreign operations which are taxed at different rates than the U.S. tax rate of 21%, combined with expected current year tax expense for the Company's domestic operations and estimated increases in the domestic valuation allowance required for the fiscal year. In addition, the income tax expense recorded for the three and six months ended October 31, 2023 was unfavorably impacted by additional foreign tax expense of $534,000 related to India tax matters. This one-time expense is related to management's decision to discontinue management fees, citing challenges associated with the Indian tax authority and cost benefit analysis. The effective rate for the three and six months ended October 31, 2022 was influenced by foreign operations taxed at varying rates, as well as the inclusion of a valuation allowance against deferred tax assets, which led to the nullification of any U.S. income tax benefit for pre-tax losses incurred in the corresponding periods. See Note L, 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 decreased net earnings by $98,000 and $139,000 for the three and six months ended October 31, 2023, respectively, as compared to $129,000 and $157,000, respectively, 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 (losses) of the subsidiaries in the related period.
Net earnings was $2,732,000, or $0.93 per diluted share, for the three months ended October 31, 2023, compared to a net loss of $243,000, or $(0.09) per diluted share, in the prior year period. Net earnings was $5,206,000, or $1.79 per diluted share, for the six months ended October 31, 2023, as compared to a net loss of $990,000, or $(0.35) per diluted share, in the prior year period.
Liquidity and Capital Resources
Our principal sources of liquidity have historically been funds generated from operating activities, supplemented as needed by borrowings under our Revolving Credit Facility. Additionally, certain machinery and equipment are financed by non-cancellable operating and financing 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 $52,144,000 at October 31, 2023, compared to $47,867,000 at April 30, 2023. The ratio of current assets to current liabilities was 2.3-to-1.0 at October 31, 2023, compared to 2.2-to-1.0 at April 30, 2023.
The Company provided cash of $8,919,000 during the six months ended October 31, 2023, primarily from operations and decreases in accounts receivable of $3.3 million and increases in deferred revenue of $822,000, partially offset by increases in accounts payable and other accrued expenses of $4.7 million. During the six months ended October 31, 2023, the Company used net cash of $2,919,000 in investing activities, all of which was used for capital expenditures. The Company's financing activities provided cash of $2,088,000 during the six months ended October 31, 2023, primarily from a net increase in borrowings under the Revolving Credit Facility.
Outlook
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 costs of raw materials, including steel, wood, and epoxy resin.
The Company is operating more efficiently than in the past due to its ability to focus solely on supporting its dealers and distribution channel partners domestically while continuing to provide turnkey solutions in the international markets it serves. The improved focus of the organization, combined with a strong global management team, a healthy backlog, improved manufacturing capabilities, and end-use markets that continue to prioritize investment in projects that require the products Kewaunee designs and manufactures, positions the Company well.
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain statements in this document constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). All statements other than statements of historical fact included in this Annual Report, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors that could significantly impact results or achievements expressed or implied by such forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to: competitive and general economic conditions, including disruptions from government mandates, both domestically and internationally, as well as supplier constraints and other supply disruptions; changes in customer demands; technological changes in our operations or in our industry; dependence on customers’ required delivery schedules; risks related to fluctuations in the Company’s operating results from quarter to quarter; risks related to international operations, including foreign currency fluctuations; changes in the legal and regulatory environment; changes in raw materials and commodity costs; acts of terrorism, war, governmental action, natural disasters and other Force Majeure events. The cautionary statements made pursuant to the Reform Act herein and elsewhere by us 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. Over time, our actual results, performance, or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such difference might be significant and harmful to our stockholders' interest. Many important factors that could cause such differences are described under the caption "Risk Factors" in Item 1A in the Company's 2023 Annual Report on Form 10-K and in Item 1A of Part II in this Quarterly Report on Form 10-Q, which you should review carefully. 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, 2023.
Item 4.    Controls and Procedures
(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, 2023. Based on that evaluation, the Company's management, including the CEO and CFO, concluded that, as of October 31, 2023, 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 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.
16


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 2023 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. 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, 2023 as filed with the SEC on June 30, 2023 beyond those set forth below.
We cannot guarantee that our share repurchase program will enhance long-term stockholder value, or that it will successfully mitigate the dilutive effect of employee equity awards.
While our Board of Directors authorized a share repurchase program that does not have an expiration date, the program does not obligate us to acquire any particular amount of Common Stock and it may be terminated at any time. We cannot guarantee that the program will be fully consummated, that it will enhance long-term stockholder value, or that it will successfully mitigate the dilutive effect of employee equity awards. Any repurchases will reduce the amount of cash we have available to fund working capital, capital expenditures, strategic acquisitions or business opportunities, and other general corporate requirements. In addition, the program could affect the trading price of our Common Stock and increase volatility, and any announcement of a termination of this program may result in a decrease in the trading price of our Common Stock.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Sales of Unregistered Securities
None.

Issuer Purchases of Equity Securities
The following table summarizes share repurchase activity for the three months ended October 31, 2023:
Total Number of Shares Purchased (1)
Average Price Paid Per Share (2)
Total Number of Shares Purchased as Part of Publicly Announced Programs (1)
Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)
August 1 - 31N/AN/AN/AN/A
September 1 - 30— $— — 100,000 
October 1 - 312,423 $18.00 2,423 97,577 
2,423 2,423 

(1)On August 31, 2023, the Board of Directors of Kewaunee Scientific Corporation (the "Company") adopted a share repurchase program with authorization to repurchase up to 100,000 shares of our Company's common stock, which commenced on September 1, 2023 and has no expiration date. The share repurchase program is designed to help offset the impact of future share dilution from employee stock issuances. The timing and amount of any repurchases under this program will be determined by the Company's management at its discretion based upon its ongoing assessments of the capital needs of the business, the market price of the Company's common stock and general market conditions. Share repurchases under this program may be made through a variety of methods including open-market purchases, block trades, exchange transactions or any combination thereof. The program does not obligate the Company to acquire any particular amount of its common stock, and the share repurchase program may be suspended or discontinued at any time at the Company's discretion.
(2)Excludes other costs such as broker commissions and fees.
17


Item 6.    Exhibits
10.1(1)
31.1
31.2
32.1
32.2
101.INSXBRL Instance Document
101.SCHXBRL Taxonomy Extension Schema Document
101.CALXBRL Taxonomy Extension Calculation Linkbase Document
101.DEFXBRL Taxonomy Extension Definition Linkbase Document
101.LABXBRL Taxonomy Extension Label Linkbase Document
101.PREXBRL Taxonomy Extension Presentation Linkbase Document
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

(1) Filed as an exhibit to the Kewaunee Scientific Corporation Current Report on Form 8-K (Commission File No. 0-5286) filed with the Securities and Exchange Commission on August 25, 2023, and incorporated herein by reference.
18


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 8, 2023 By/s/ Donald T. Gardner III
 Donald T. Gardner III
 (As duly authorized officer and Vice President, Finance and Chief Financial Officer)

19
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 8, 2023


 
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 8, 2023


 
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, 2023, 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, 2023, 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, 2023, fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: December 8, 2023 /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, 2023, 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, 2023, 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, 2023, fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: December 8, 2023 /s/ Donald T. Gardner III Donald T. Gardner III Vice President, Finance and Chief Financial Officer


 
v3.23.3
Cover Page - shares
6 Months Ended
Oct. 31, 2023
Dec. 05, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Oct. 31, 2023  
Document Transition Report false  
Entity File Number 0-5286  
Entity Registrant Name KEWAUNEE SCIENTIFIC CORPORATION  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 38-0715562  
Entity Address, Address Line One 2700 West Front Street  
Entity Address, City or Town Statesville,  
Entity Address, State or Province NC  
Entity Address, Postal Zip Code 28677-2927  
City Area Code 704  
Local Phone Number 873-7202  
Title of 12(b) Security Common Stock, $2.50 par value  
Trading Symbol KEQU  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   2,901,671
Amendment Flag false  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0000055529  
Current Fiscal Year End Date --04-30  
v3.23.3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2023
Oct. 31, 2022
Oct. 31, 2023
Oct. 31, 2022
Income Statement [Abstract]        
Net sales $ 50,436 $ 54,564 $ 100,275 $ 104,687
Cost of products sold 36,968 45,863 74,893 89,790
Gross profit 13,468 8,701 25,382 14,897
Operating expenses 8,359 7,946 16,465 14,538
Operating profit 5,109 755 8,917 359
Pension expense (40) (8) (81) (35)
Other income, net 148 79 223 546
Interest expense (372) (370) (802) (754)
Profit before income taxes 4,845 456 8,257 116
Income tax expense 2,015 570 2,912 949
Net earnings (loss) 2,830 (114) 5,345 (833)
Less: Net earnings attributable to the non-controlling interest 98 129 139 157
Net earnings (loss) attributable to Kewaunee Scientific Corporation $ 2,732 $ (243) $ 5,206 $ (990)
Net earnings (loss) per share attributable to Kewaunee Scientific Corporation stockholders        
Basic (in dollars per share) $ 0.94 $ (0.09) $ 1.81 $ (0.35)
Diluted (in dollars per share) $ 0.93 $ (0.09) $ 1.79 $ (0.35)
Weighted average number of common shares outstanding        
Basic (in shares) 2,903 2,830 2,882 2,819
Diluted (in shares) 2,931 2,830 2,908 2,819
v3.23.3
Condensed Consolidated Statements of Comprehensive Earnings (Loss) (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2023
Oct. 31, 2022
Oct. 31, 2023
Oct. 31, 2022
Statement of Comprehensive Income [Abstract]        
Net earnings (loss) $ 2,830 $ (114) $ 5,345 $ (833)
Other comprehensive loss, net of tax:        
Foreign currency translation adjustments (251) (237) (395) (461)
Other comprehensive loss (251) (237) (395) (461)
Comprehensive earnings (loss), net of tax 2,579 (351) 4,950 (1,294)
Less: Comprehensive income attributable to the non-controlling interest 98 129 139 157
Comprehensive earnings (loss) attributable to Kewaunee Scientific Corporation $ 2,481 $ (480) $ 4,811 $ (1,451)
v3.23.3
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Treasury Stock
Retained Earnings
Accumulated Other Comprehensive Loss
Beginning balance at Apr. 30, 2022 $ 35,694 $ 6,983 $ 4,483 $ (53) $ 28,023 $ (3,742)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings (loss) attributable to Kewaunee Scientific Corporation (747)       (747)  
Other comprehensive loss (224)         (224)
Stock-based compensation (37) 97 (134)      
Ending balance at Jul. 31, 2022 34,686 7,080 4,349 (53) 27,276 (3,966)
Beginning balance at Apr. 30, 2022 35,694 6,983 4,483 (53) 28,023 (3,742)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings (loss) attributable to Kewaunee Scientific Corporation (990)          
Other comprehensive loss (461)          
Ending balance at Oct. 31, 2022 34,402 7,084 4,541 (53) 27,033 (4,203)
Beginning balance at Jul. 31, 2022 34,686 7,080 4,349 (53) 27,276 (3,966)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings (loss) attributable to Kewaunee Scientific Corporation (243)       (243)  
Other comprehensive loss (237)         (237)
Stock-based compensation 196 4 192      
Ending balance at Oct. 31, 2022 34,402 7,084 4,541 (53) 27,033 (4,203)
Beginning balance at Apr. 30, 2023 37,409 7,084 5,059 (53) 28,761 (3,442)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings (loss) attributable to Kewaunee Scientific Corporation 2,474       2,474  
Other comprehensive loss (144)         (144)
Stock-based compensation (309) 185 (494)      
Ending balance at Jul. 31, 2023 39,430 7,269 4,565 (53) 31,235 (3,586)
Beginning balance at Apr. 30, 2023 37,409 7,084 5,059 (53) 28,761 (3,442)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings (loss) attributable to Kewaunee Scientific Corporation 5,206          
Other comprehensive loss (395)          
Ending balance at Oct. 31, 2023 42,108 7,269 4,806 (97) 33,967 (3,837)
Beginning balance at Jul. 31, 2023 39,430 7,269 4,565 (53) 31,235 (3,586)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings (loss) attributable to Kewaunee Scientific Corporation 2,732       2,732  
Other comprehensive loss (251)         (251)
Stock-based compensation 241 0 241      
Purchase of Treasury Stock, 2,423 shares (44)     (44)    
Ending balance at Oct. 31, 2023 $ 42,108 $ 7,269 $ 4,806 $ (97) $ 33,967 $ (3,837)
v3.23.3
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parenthetical)
3 Months Ended
Oct. 31, 2023
shares
Statement of Stockholders' Equity [Abstract]  
Purchase of treasury stock (in shares) 2,423
v3.23.3
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Oct. 31, 2023
Apr. 30, 2023
Current Assets:    
Cash and cash equivalents $ 13,722 $ 8,078
Restricted cash 7,989 5,737
Receivables, less allowance; $566; $476, on each respective date 42,600 46,081
Inventories 21,666 21,889
Prepaid expenses and other current assets 4,899 6,135
Total Current Assets 90,876 87,920
Property, plant and equipment, at cost 63,733 61,368
Accumulated depreciation (45,899) (44,966)
Net Property, Plant and Equipment 17,834 16,402
Right of use assets 8,393 9,170
Other assets 4,605 5,406
Total Assets 121,708 118,898
Current Liabilities:    
Short-term borrowings 5,855 3,587
Current portion of financing liability 677 642
Current portion of financing lease liabilities 108 85
Current portion of operating lease liabilities 2,141 1,967
Accounts payable 19,172 23,599
Employee compensation and amounts withheld 5,010 4,304
Deferred revenue 4,919 4,097
Other accrued expenses 850 1,772
Total Current Liabilities 38,732 40,053
Long-term portion of financing liability 27,782 28,132
Long-term portion of financing lease liabilities 259 148
Long-term portion of operating lease liabilities 6,193 7,136
Accrued pension and deferred compensation costs 3,839 3,546
Deferred income taxes 1,051 943
Other non-current liabilities 438 455
Total Liabilities 78,294 80,413
Commitments and Contingencies
Stockholders' Equity:    
Common stock, $2.50 par value, Authorized – 5,000 shares; Issued – 2,907 shares; 2,833 shares; – Outstanding – 2,902 shares; 2,830 shares, on each respective date 7,269 7,084
Additional paid-in-capital 4,806 5,059
Retained earnings 33,967 28,761
Accumulated other comprehensive loss (3,837) (3,442)
Common stock in treasury, at cost, 5 shares; 3 shares, on each respective date (97) (53)
Total Kewaunee Scientific Corporation Stockholders' Equity 42,108 37,409
Non-controlling interest 1,306 1,076
Total Stockholders' Equity 43,414 38,485
Total Liabilities and Stockholders' Equity $ 121,708 $ 118,898
v3.23.3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
Oct. 31, 2023
Apr. 30, 2023
Current Assets:    
Allowance for receivables $ 566 $ 476
Stockholders' Equity:    
Common stock, par value (in dollars per share) $ 2.50 $ 2.50
Common stock, shares authorized (in shares) 5,000,000 5,000,000
Common stock, shares issued (in shares) 2,907,000 2,833,000
Common stock, shares outstanding (in shares) 2,902,000 2,830,000
Treasury stock, shares (in shares) 5,000 3,000
v3.23.3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Oct. 31, 2023
Oct. 31, 2022
Cash flows from operating activities:    
Net earnings (loss) $ 5,345 $ (833)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:    
Depreciation 1,488 1,433
Bad debt provision 185 (8)
Stock-based compensation expense 424 368
Deferred income taxes 108 (22)
Change in assets and liabilities:    
Receivables 3,296 (209)
Inventories 223 (706)
Accounts payable and other accrued expenses (4,660) (6,412)
Deferred revenue 822 7,869
Other, net 1,688 (2,066)
Net cash provided by (used in) operating activities 8,919 (586)
Cash flows from investing activities:    
Capital expenditures (2,919) (919)
Net cash used in investing activities (2,919) (919)
Cash flows from financing activities:    
Proceeds from short-term borrowings 79,116 4,431
Repayments on short-term borrowings (76,847) (6,019)
Proceeds from sale-leaseback financing transaction 0 13,456
Payments on sale-leaseback financing transaction (316) (282)
Proceeds from long-term lease obligations 202 0
Payments on long-term lease obligations (67) (61)
Net cash provided by financing activities 2,088 11,525
Effect of exchange rate changes on cash, cash equivalents and restricted cash (192) (597)
Increase in cash, cash equivalents and restricted cash 7,896 9,423
Cash, cash equivalents and restricted cash, beginning of period 13,815 6,894
Cash, cash equivalents and restricted cash, end of period $ 21,711 $ 16,317
v3.23.3
Financial Information
6 Months Ended
Oct. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Financial Information 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. 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 2023 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, 2023 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.
v3.23.3
Cash, Cash Equivalents and Restricted Cash
6 Months Ended
Oct. 31, 2023
Cash and Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Restricted Cash 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 six months ended October 31, 2023 and twelve months ended April 30, 2023, 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 and domestic bank deposits used as collateral for an outstanding letter of credit.
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, 2023April 30, 2023
Cash and cash equivalents$13,722 $8,078 
Restricted cash7,989 5,737 
Total cash, cash equivalents and restricted cash$21,711 $13,815 
v3.23.3
Revenue Recognition
6 Months Ended
Oct. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition 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.
Disaggregated Revenue
A summary of net sales transferred to customers over time and at a point in time for the periods ended October 31, 2023 and October 31, 2022 is as follows (in thousands):
Three Months Ended
 October 31, 2023October 31, 2022
 DomesticInternationalTotalDomesticInternationalTotal
Over Time$32,769 $16,251 $49,020 $36,374 $16,573 $52,947 
Point in Time1,416 — 1,416 1,617 — 1,617 
Total$34,185 $16,251 $50,436 $37,991 $16,573 $54,564 
Six Months Ended
 October 31, 2023October 31, 2022
 DomesticInternationalTotalDomesticInternationalTotal
Over Time$66,673 $30,670 $97,343 $71,727 $29,228 $100,955 
Point in Time2,932 — 2,932 3,732 — 3,732 
Total$69,605 $30,670 $100,275 $75,459 $29,228 $104,687 
Contract Balances
The closing balances of contract assets included $13,015,000 in accounts receivable and $506,000 in other assets at October 31, 2023. The opening balance of contract assets arising from contracts with customers included $13,459,000 in accounts receivable and $1,191,000 in other assets at April 30, 2023. The closing and opening balances of contract liabilities included in deferred revenue arising from contracts with customers were $4,919,000 at October 31, 2023 and $4,097,000 at April 30, 2023. 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, 2023 and October 31, 2023 are expected to be recognized as revenue during the respective succeeding 12 months.
v3.23.3
Inventories
6 Months Ended
Oct. 31, 2023
Inventory Disclosure [Abstract]  
Inventories Inventories
The Company measures inventory using the first-in, first-out method at the lower of cost or net realizable value. Inventories consisted of the following (in thousands):
October 31, 2023April 30, 2023
Finished products$2,897 $3,412 
Work in process1,669 2,380 
Raw materials17,100 16,097 
Total$21,666 $21,889 
The Company's International subsidiaries' inventories were $2,918,000 at October 31, 2023 and $2,740,000 at April 30, 2023 and are included in the above tables.
v3.23.3
Fair Value of Financial Instruments
6 Months Ended
Oct. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
The Company's financial instruments consist primarily of cash and equivalents, mutual funds, short-term borrowings, and the cash surrender value of life insurance policies. 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, 2023 and April 30, 2023 (in thousands):
 October 31, 2023
Financial AssetsLevel 1Level 2Total
Trading securities held in non-qualified compensation plans (1)
$1,316 $— $1,316 
Cash surrender value of life insurance policies (1)
— 1,340 1,340 
Total$1,316 $1,340 $2,656 
Financial Liabilities
Non-qualified compensation plans (2)
$— $3,123 $3,123 
Total$— $3,123 $3,123 
 April 30, 2023
Financial AssetsLevel 1Level 2Total
Trading securities held in non-qualified compensation plans (1)
$1,105 $— $1,105 
Cash surrender value of life insurance policies (1)
— 1,358 1,358 
Total$1,105 $1,358 $2,463 
Financial Liabilities
Non-qualified compensation plans (2)
$— $2,910 $2,910 
Total$— $2,910 $2,910 
(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.
v3.23.3
Long-term Debt and Other Credit Arrangements
6 Months Ended
Oct. 31, 2023
Debt Disclosure [Abstract]  
Long-term Debt and Other Credit Arrangements Long-term Debt and Other Credit Arrangements
At April 30, 2023, advances of $3.5 million were outstanding under the Company's Revolving Credit Facility. Amounts available under the Revolving Credit Facility were $10.3 million at April 30, 2023. The borrowing rate under the Revolving Credit Facility was 9.02% as of April 30, 2023. The Company's International subsidiaries had a balance outstanding at April 30, 2023 of $39,000 in short-term borrowings related to overdraft protection and short-term loan arrangements. At April 30, 2023, the Company was in compliance with all of the financial covenants under its Revolving Credit Facility.
At October 31, 2023, advances of $5.0 million were outstanding under the Revolving Credit Facility, with remaining borrowing capacity under the Revolving Credit Facility of $7.4 million. The borrowing rate under the Revolving Credit Facility was 9.53% as of October 31, 2023. In addition, the Company's International subsidiaries have a balance outstanding of $855,000 in short-term borrowings related to overdraft protection and short-term loan arrangements at October 31, 2023. The Company was in compliance with all of the financial covenants under its Revolving Credit Facility as of October 31, 2023.
v3.23.3
Sale-Leaseback Financing Transaction
6 Months Ended
Oct. 31, 2023
Financing Liability [Abstract]  
Sale-Leaseback Financing Transaction Sale-Leaseback Financing Transaction
On December 22, 2021, the Company entered into an Agreement for Purchase and Sale of Real Property with CAI Investments Sub-Series 100 LLC, a Nevada limited liability company (the "Buyer"), for the Company’s headquarters and manufacturing facilities located at 2700 West Front Street in Statesville, North Carolina (the "Sale Agreement").
The Sale Agreement was finalized on March 24, 2022 and coincided with the Company and CAI Investments Medical Products I Master Lessee LLC ("Lessor") entering into a lease agreement. The lease arrangement is for a 20-year term, with four renewal options of five years each. Under the terms of the lease agreement, the Company’s initial basic rent is approximately $158,000 per month, with annual increases of approximately 2% each year of the initial term.
The Company accounted for the Sale-Leaseback Arrangement as a financing transaction as the lease agreement was determined to be a finance lease due to the significance of the present value of the lease payments, using a discount rate of 4.75% to reflect
the Company’s incremental borrowing rate, compared to the fair value of the leased property as of the lease commencement date. In measuring the lease payments for the present value analysis, the Company elected the practical expedient to combine the lease component (the leased facilities) with the non-lease component (property management provided by the Buyer/Lessor) into a single lease component.
The presence of a finance lease indicates that control of the property has not transferred to the Buyer/Lessor and, as such, the transaction was deemed a failed sale-leaseback and accounted for as a financing arrangement. As a result of this determination, the Company is viewed as having received the sale proceeds from the Buyer/Lessor in the form of a hypothetical loan collateralized by its leased facilities. The hypothetical loan is payable as principal and interest in the form of “lease payments” to the Buyer/Lessor. As such, the Company will not derecognize the property from its books for accounting purposes until the lease ends. No gain or loss was recognized under GAAP related to the Sale-Leaseback Arrangement.
As of October 31, 2023, the carrying value of the financing liability was $28,459,000, net of $677,000 in debt issuance costs, of which $677,000 was classified as current on the Consolidated Balance Sheet with $27,782,000 classified as long-term. As of April 30, 2023, the carrying value of the financing liability was $28,774,000, net of $708,000 in debt issuance costs, of which $642,000 was classified as current on the Consolidated Balance Sheet with $28,132,000 classified as long-term. The monthly lease payments are split between a reduction of principal and interest expense using the effective interest rate method. Interest expense associated with the financing arrangement was $322,000 and $330,000 for the three months ended October 31, 2023 and October 31, 2022, respectively. Interest expense associated with the financing arrangement was $647,000 and $662,000 for the six months ended October 31, 2023 and October 31, 2022, respectively.
The Company will depreciate the building down to zero over the 20-year assumed economic life of the Property so that at the end of the lease term, the remaining carrying amount of the financing liability will equal the carrying amount of the land of $41,000.
Remaining future cash payments related to the financing liability as of October 31, 2023 are as follows:
($ in thousands)
Remainder of 2024$967 
20251,970 
20262,009 
20272,050 
20282,090 
Thereafter33,867 
Total Minimum Liability Payments42,953 
Imputed Interest(14,494)
Total$28,459 
v3.23.3
Leases
6 Months Ended
Oct. 31, 2023
Leases [Abstract]  
Leases 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 financing leases for vehicles and IT equipment in the U.S. At October 31, 2023 and April 30, 2023, right-of-use assets totaled $8,393,000 and $9,170,000, respectively. Operating cash paid to settle lease liabilities was $1,282,000 and $1,026,000 for the six months ended October 31, 2023 and October 31, 2022, 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 $847,000 and $1,714,000 for the three and six months ended October 31, 2023, inclusive of period cost for short-term leases, not included in lease liabilities, of $204,000 and $432,000. Operating lease expenses were $900,000 and $1,734,000 for the three and six months ended October 31, 2022, inclusive of period cost for short-term leases, not included in lease liabilities, of $398,000 and $708,000.
At October 31, 2023, the weighted average remaining lease term for the capitalized operating leases was 4.6 years and the weighted average discount rate was 5.1%. For the financing leases, the weighted average remaining lease term was 5.0 years and the weighted average discount rate was 8.5%. 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, 2023 were as follows:
OperatingFinancing
Remainder of fiscal 2024$1,294 $36 
20252,286 131 
20261,933 111 
20271,654 40 
20281,120 40 
Thereafter1,370 95 
Total Minimum Lease Payments9,657 453 
Imputed Interest(1,323)(86)
Total$8,334 $367 
Subsequent to October 31, 2023, the Company entered into a new lease that has not yet commenced as of October 31, 2023 with future minimum lease payments in aggregate of $681,000 that are not yet reflected on the Condensed Consolidated Balance Sheet. This lease is expected to commence in the second quarter of fiscal year 2025 with a lease term of 3 years.
Leases 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 financing leases for vehicles and IT equipment in the U.S. At October 31, 2023 and April 30, 2023, right-of-use assets totaled $8,393,000 and $9,170,000, respectively. Operating cash paid to settle lease liabilities was $1,282,000 and $1,026,000 for the six months ended October 31, 2023 and October 31, 2022, 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 $847,000 and $1,714,000 for the three and six months ended October 31, 2023, inclusive of period cost for short-term leases, not included in lease liabilities, of $204,000 and $432,000. Operating lease expenses were $900,000 and $1,734,000 for the three and six months ended October 31, 2022, inclusive of period cost for short-term leases, not included in lease liabilities, of $398,000 and $708,000.
At October 31, 2023, the weighted average remaining lease term for the capitalized operating leases was 4.6 years and the weighted average discount rate was 5.1%. For the financing leases, the weighted average remaining lease term was 5.0 years and the weighted average discount rate was 8.5%. 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, 2023 were as follows:
OperatingFinancing
Remainder of fiscal 2024$1,294 $36 
20252,286 131 
20261,933 111 
20271,654 40 
20281,120 40 
Thereafter1,370 95 
Total Minimum Lease Payments9,657 453 
Imputed Interest(1,323)(86)
Total$8,334 $367 
Subsequent to October 31, 2023, the Company entered into a new lease that has not yet commenced as of October 31, 2023 with future minimum lease payments in aggregate of $681,000 that are not yet reflected on the Condensed Consolidated Balance Sheet. This lease is expected to commence in the second quarter of fiscal year 2025 with a lease term of 3 years.
v3.23.3
Earnings Per Share
6 Months Ended
Oct. 31, 2023
Earnings Per Share [Abstract]  
Earnings Per Share 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 19,200 and 94,930 antidilutive RSUs and options outstanding at October 31, 2023 and October 31, 2022, respectively. The following is a reconciliation of basic to diluted weighted average common shares outstanding (in thousands):
Three Months EndedSix Months Ended
October 31, 2023October 31, 2022October 31, 2023October 31, 2022
Basic2,903 2,830 2,882 2,819 
Dilutive effect of stock options and RSUs28 — 26 — 
Weighted average common shares outstanding - diluted2,931 2,830 2,908 2,819 
v3.23.3
Stock Options and Stock-based Compensation
6 Months Ended
Oct. 31, 2023
Equity [Abstract]  
Stock Options and Stock-based Compensation Stock Options and Stock-based Compensation
The Company recognizes compensation costs related to stock options and other stock awards granted by the Company as operating expenses over their vesting period.
In June 2023, the Company granted 87,220 RSUs under the 2017 Omnibus Incentive Plan ("2017 Plan"). These RSUs include both a service and a performance component, vesting over a three-year period. The recognized expense is based upon the vesting period for service criteria and estimated attainment of the performance criteria at the end of the three-year period, based on the ratio of cumulative days of service to total days over the three-year period. The Company recorded stock-based compensation expense under the 2017 Plan of $241,000 and $414,000 during the three and six months ended October 31, 2023 with the remaining estimated stock-based compensation expense of $1,791,000 to be recorded over the remaining vesting periods. The Company recorded stock-based compensation expense under the 2017 Plan of $196,000 and $327,000 during the three and six months ended October 31, 2022.
In August 2023, the stockholders approved the 2023 Omnibus Incentive Plan ("2023 Plan"), which enables the Company to grant equity-based awards, with potential recipients including directors, consultants, and employees. This plan replaces the 2017 Plan. No new awards will be granted under the prior plans. All outstanding options granted under the prior plans remain subject to, and will be settled upon exercise under, the prior plans. At the date of approval of the 2023 Plan, there were 64,633 shares available for issuance under the prior plan. These shares and any outstanding awards that subsequently cease to be subject to such awards are available under the 2023 Plan. The 2023 Plan also increased the total number of shares reserved for issuance under the Company's equity compensation plans by 310,000, for a total of 374,633 shares reserved for issuance under the 2023 Plan. The Company did not issue any RSUs under the 2023 Plan during the three months ended October 31, 2023.
Directors' fees paid with shares of common stock in lieu of cash in accordance with Director compensation guidelines were $10,000 and $41,000 for the six month periods ended October 31, 2023 and October 31, 2022, respectively, and were also included in the stock-based compensation on the Condensed Consolidated Statements of Cash Flows.
v3.23.3
Stockholders' Equity
6 Months Ended
Oct. 31, 2023
Equity [Abstract]  
Stockholders' Equity Stockholders' Equity
Common Stock
The Company is authorized to issue 5,000,000 shares of Common Stock, par value of $2.50 per share. Holders of the Company's Common Stock are entitled to one vote per share. As of October 31, 2023 and April 30, 2023, there were approximately 2,902,000 and 2,830,000 shares, respectively, of Common Stock issued and outstanding. The Company has not declared or paid any dividends with respect to its Common Stock during the three and six months ended October 31, 2023. The declaration and payment of any future dividends is at the discretion of the Board of Directors and will depend upon many factors, including the Company's earnings, capital requirements, investment and growth strategies, financial conditions, the terms of the Company's indebtedness, which contains provisions that could limit the payment of dividends in certain circumstances, and other factors that the Board of Directors may deem to be relevant.

Share Repurchase Program
On August 31, 2023, the Board of Directors of the Company adopted a share repurchase program with authorization to repurchase up to 100,000 shares. There is no expiration date and currently, management has no plans to terminate this program. For the three months ended October 31, 2023, the Company repurchased 2,423 shares of the Company's common stock for approximately $44,000, excluding other costs such as broker commissions and fees. As of October 31, 2023, the total remaining purchase authorization was 97,577 shares.
v3.23.3
Income Taxes
6 Months Ended
Oct. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes . Income Taxes
Income tax expense of $2,015,000 and $2,912,000 was recorded for the three and six months ended October 31, 2023, respectively. Income tax expense of $570,000 and $949,000 was recorded for the three and six months ended October 31, 2022, respectively. The effective tax rate was 41.6% and 35.3% for the three and six months ended October 31, 2023, respectively. The effective tax rate for the current three and six month periods reflects the impact of foreign operations which are taxed at different rates than the U.S. tax rate of 21%, combined with expected current year tax expense for the Company's domestic operations and estimated increases in the domestic valuation allowance required for the fiscal year. In addition, the income tax expense recorded for the three and six months ended October 31, 2023 was unfavorably impacted by additional foreign tax expense of $534,000 related to India tax matters. This one-time expense is related to management's decision to discontinue management fees, citing challenges associated with the Indian tax authority and cost benefit analysis. The effective tax rate was 125.0% and 818.1% for the three and six months ended October 31, 2022, respectively. The prior year effective tax rate was influenced by foreign operations taxed at varying rates, as well as the inclusion of a valuation allowance against deferred tax assets, which led to the nullification of any U.S. income tax benefit for pre-tax losses incurred in the corresponding periods.
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 and Kewaunee Labway India Pvt. Ltd. international subsidiaries. The Company has a deferred tax liability of $1,421,000 and $1,318,000 for the withholding tax related to Kewaunee Labway India Pvt. Ltd. as of October 31, 2023 and April 30, 2023, respectively.
v3.23.3
Defined Benefit Pension Plans
6 Months Ended
Oct. 31, 2023
Retirement Benefits [Abstract]  
Defined Benefit Pension Plans Defined Benefit Pension Plans
The Company has non-contributory defined benefit pension plans covering substantially all domestic salaried and hourly employees. These plans were amended as of April 30, 2005; no further benefits have been, or will be, earned under the plans, subsequent to the amendment date, and no additional participants will be added to the plans. There were no Company contributions paid to the plans for the three and six months ended October 31, 2023 and October 31, 2022. The Company assumed an expected long-term rate of return of 7.75% for the periods ended October 31, 2023 and October 31, 2022.
Pension expense consisted of the following (in thousands):
Three Months Ended
October 31, 2023October 31, 2022
Service cost$— $— 
Interest cost223 100 
Expected return on plan assets(328)(166)
Recognition of net loss145 74 
Net periodic pension expense$40 $
Six Months Ended
October 31, 2023October 31, 2022
Service cost$— $— 
Interest cost447 422 
Expected return on plan assets(656)(701)
Recognition of net loss290 314 
Net periodic pension expense$81 $35 
v3.23.3
Segment Information
6 Months Ended
Oct. 31, 2023
Segment Reporting [Abstract]  
Segment Information 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, 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 segment and unallocated corporate expenses for the periods ended October 31, 2023 and 2022 (in thousands):
Domestic
Operations
International
Operations
Corporate /
Eliminations
Total
Three Months Ended October 31, 2023
Revenues from external customers$34,185 $16,251 $— $50,436 
Intersegment revenues374 1,155 (1,529)— 
Earnings (loss) before income taxes4,287 1,801 (1,243)4,845 
Three Months Ended October 31, 2022
Revenues from external customers$37,991 $16,573 $— $54,564 
Intersegment revenues650 3,335 (3,985)— 
Earnings (loss) before income taxes491 1,856 (1,891)456 
Domestic
Operations
International
Operations
Corporate /
Eliminations
Total
Six Months Ended October 31, 2023
Revenues from external customers$69,605 $30,670 $— $100,275 
Intersegment revenues425 1,816 (2,241)— 
Earnings (loss) before income taxes7,910 2,594 (2,247)8,257 
Six Months Ended October 31, 2022
Revenues from external customers$75,459 $29,228 $— $104,687 
Intersegment revenues1,446 4,956 (6,402)— 
Earnings (loss) before income taxes589 2,950 (3,423)116 
v3.23.3
New Accounting Standards
6 Months Ended
Oct. 31, 2023
Accounting Policies [Abstract]  
New Accounting Standards 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 adopted this standard effective May 1, 2023. The adoption of this standard did not have a significant impact on the Company's consolidated financial position or results of operations.
v3.23.3
New Accounting Standards (Policies)
6 Months Ended
Oct. 31, 2023
Accounting Policies [Abstract]  
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 adopted this standard effective May 1, 2023. The adoption of this standard did not have a significant impact on the Company's consolidated financial position or results of operations.
v3.23.3
Cash, Cash Equivalents and Restricted Cash (Tables)
6 Months Ended
Oct. 31, 2023
Cash and Cash Equivalents [Abstract]  
Schedule of Cash, Cash Equivalents, and Restricted Cash The reconciliation between the Condensed Consolidated Balance Sheet and the Condensed Consolidated Statement of Cash Flows is as follows:
October 31, 2023April 30, 2023
Cash and cash equivalents$13,722 $8,078 
Restricted cash7,989 5,737 
Total cash, cash equivalents and restricted cash$21,711 $13,815 
v3.23.3
Revenue Recognition (Tables)
6 Months Ended
Oct. 31, 2023
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
A summary of net sales transferred to customers over time and at a point in time for the periods ended October 31, 2023 and October 31, 2022 is as follows (in thousands):
Three Months Ended
 October 31, 2023October 31, 2022
 DomesticInternationalTotalDomesticInternationalTotal
Over Time$32,769 $16,251 $49,020 $36,374 $16,573 $52,947 
Point in Time1,416 — 1,416 1,617 — 1,617 
Total$34,185 $16,251 $50,436 $37,991 $16,573 $54,564 
Six Months Ended
 October 31, 2023October 31, 2022
 DomesticInternationalTotalDomesticInternationalTotal
Over Time$66,673 $30,670 $97,343 $71,727 $29,228 $100,955 
Point in Time2,932 — 2,932 3,732 — 3,732 
Total$69,605 $30,670 $100,275 $75,459 $29,228 $104,687 
v3.23.3
Inventories (Tables)
6 Months Ended
Oct. 31, 2023
Inventory Disclosure [Abstract]  
Summary of Inventories Inventories consisted of the following (in thousands):
October 31, 2023April 30, 2023
Finished products$2,897 $3,412 
Work in process1,669 2,380 
Raw materials17,100 16,097 
Total$21,666 $21,889 
v3.23.3
Fair Value of Financial Instruments (Tables)
6 Months Ended
Oct. 31, 2023
Fair Value Disclosures [Abstract]  
Summary of Fair Value Hierarchy for Financial Assets and Liabilities Measured Recurring Basis 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, 2023 and April 30, 2023 (in thousands):
 October 31, 2023
Financial AssetsLevel 1Level 2Total
Trading securities held in non-qualified compensation plans (1)
$1,316 $— $1,316 
Cash surrender value of life insurance policies (1)
— 1,340 1,340 
Total$1,316 $1,340 $2,656 
Financial Liabilities
Non-qualified compensation plans (2)
$— $3,123 $3,123 
Total$— $3,123 $3,123 
 April 30, 2023
Financial AssetsLevel 1Level 2Total
Trading securities held in non-qualified compensation plans (1)
$1,105 $— $1,105 
Cash surrender value of life insurance policies (1)
— 1,358 1,358 
Total$1,105 $1,358 $2,463 
Financial Liabilities
Non-qualified compensation plans (2)
$— $2,910 $2,910 
Total$— $2,910 $2,910 
(1)The Company maintains two non-qualified compensation plans which include investment assets in a rabbi trust. These assets consist of marketable securities, which are valued using quoted market prices multiplied by the number of shares owned, and life insurance policies, which are valued at their cash surrender value.
(2)Plan liabilities are equal to the individual participants' account balances and other earned retirement benefits.
v3.23.3
Sale-Leaseback Financing Transaction (Tables)
6 Months Ended
Oct. 31, 2023
Financing Liability [Abstract]  
Schedule of Remaining Future Cash Payments for Financing Liability
Remaining future cash payments related to the financing liability as of October 31, 2023 are as follows:
($ in thousands)
Remainder of 2024$967 
20251,970 
20262,009 
20272,050 
20282,090 
Thereafter33,867 
Total Minimum Liability Payments42,953 
Imputed Interest(14,494)
Total$28,459 
v3.23.3
Leases (Tables)
6 Months Ended
Oct. 31, 2023
Leases [Abstract]  
Schedule of Operating Lease Maturity
Future minimum lease payments under non-cancelable leases as of October 31, 2023 were as follows:
OperatingFinancing
Remainder of fiscal 2024$1,294 $36 
20252,286 131 
20261,933 111 
20271,654 40 
20281,120 40 
Thereafter1,370 95 
Total Minimum Lease Payments9,657 453 
Imputed Interest(1,323)(86)
Total$8,334 $367 
Schedule of Finance Lease Maturity
Future minimum lease payments under non-cancelable leases as of October 31, 2023 were as follows:
OperatingFinancing
Remainder of fiscal 2024$1,294 $36 
20252,286 131 
20261,933 111 
20271,654 40 
20281,120 40 
Thereafter1,370 95 
Total Minimum Lease Payments9,657 453 
Imputed Interest(1,323)(86)
Total$8,334 $367 
v3.23.3
Earnings Per Share (Tables)
6 Months Ended
Oct. 31, 2023
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted The following is a reconciliation of basic to diluted weighted average common shares outstanding (in thousands):
Three Months EndedSix Months Ended
October 31, 2023October 31, 2022October 31, 2023October 31, 2022
Basic2,903 2,830 2,882 2,819 
Dilutive effect of stock options and RSUs28 — 26 — 
Weighted average common shares outstanding - diluted2,931 2,830 2,908 2,819 
v3.23.3
Defined Benefit Pension Plans (Tables)
6 Months Ended
Oct. 31, 2023
Retirement Benefits [Abstract]  
Pension Expenses
Pension expense consisted of the following (in thousands):
Three Months Ended
October 31, 2023October 31, 2022
Service cost$— $— 
Interest cost223 100 
Expected return on plan assets(328)(166)
Recognition of net loss145 74 
Net periodic pension expense$40 $
Six Months Ended
October 31, 2023October 31, 2022
Service cost$— $— 
Interest cost447 422 
Expected return on plan assets(656)(701)
Recognition of net loss290 314 
Net periodic pension expense$81 $35 
v3.23.3
Segment Information (Tables)
6 Months Ended
Oct. 31, 2023
Segment Reporting [Abstract]  
Segment Information
The following tables provide financial information by business segment and unallocated corporate expenses for the periods ended October 31, 2023 and 2022 (in thousands):
Domestic
Operations
International
Operations
Corporate /
Eliminations
Total
Three Months Ended October 31, 2023
Revenues from external customers$34,185 $16,251 $— $50,436 
Intersegment revenues374 1,155 (1,529)— 
Earnings (loss) before income taxes4,287 1,801 (1,243)4,845 
Three Months Ended October 31, 2022
Revenues from external customers$37,991 $16,573 $— $54,564 
Intersegment revenues650 3,335 (3,985)— 
Earnings (loss) before income taxes491 1,856 (1,891)456 
Domestic
Operations
International
Operations
Corporate /
Eliminations
Total
Six Months Ended October 31, 2023
Revenues from external customers$69,605 $30,670 $— $100,275 
Intersegment revenues425 1,816 (2,241)— 
Earnings (loss) before income taxes7,910 2,594 (2,247)8,257 
Six Months Ended October 31, 2022
Revenues from external customers$75,459 $29,228 $— $104,687 
Intersegment revenues1,446 4,956 (6,402)— 
Earnings (loss) before income taxes589 2,950 (3,423)116 
v3.23.3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Oct. 31, 2023
Apr. 30, 2023
Oct. 31, 2022
Apr. 30, 2022
Cash and Cash Equivalents [Abstract]        
Cash and cash equivalents $ 13,722 $ 8,078    
Restricted cash 7,989 5,737    
Total cash, cash equivalents and restricted cash $ 21,711 $ 13,815 $ 16,317 $ 6,894
v3.23.3
Revenue Recognition - Summary of Net Sales Transferred to Customers at a Point in Time and Over Time (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2023
Oct. 31, 2022
Oct. 31, 2023
Oct. 31, 2022
Disaggregation of Revenue [Line Items]        
Net sales transferred to customers $ 50,436 $ 54,564 $ 100,275 $ 104,687
Over Time        
Disaggregation of Revenue [Line Items]        
Net sales transferred to customers 49,020 52,947 97,343 100,955
Point in Time        
Disaggregation of Revenue [Line Items]        
Net sales transferred to customers 1,416 1,617 2,932 3,732
Domestic        
Disaggregation of Revenue [Line Items]        
Net sales transferred to customers 34,185 37,991 69,605 75,459
Domestic | Over Time        
Disaggregation of Revenue [Line Items]        
Net sales transferred to customers 32,769 36,374 66,673 71,727
Domestic | Point in Time        
Disaggregation of Revenue [Line Items]        
Net sales transferred to customers 1,416 1,617 2,932 3,732
International        
Disaggregation of Revenue [Line Items]        
Net sales transferred to customers 16,251 16,573 30,670 29,228
International | Over Time        
Disaggregation of Revenue [Line Items]        
Net sales transferred to customers 16,251 16,573 30,670 29,228
International | Point in Time        
Disaggregation of Revenue [Line Items]        
Net sales transferred to customers $ 0 $ 0 $ 0 $ 0
v3.23.3
Revenue Recognition - Additional Information (Detail) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Oct. 31, 2023
Apr. 30, 2023
Disaggregation of Revenue [Line Items]    
Contract liabilities $ 4,919 $ 4,097
Contract liability recognized as revenue percentage 100.00% 100.00%
Accounts receivable    
Disaggregation of Revenue [Line Items]    
Contract assets $ 13,015 $ 13,459
Other assets    
Disaggregation of Revenue [Line Items]    
Contract assets $ 506 $ 1,191
v3.23.3
Inventories - Summary of Inventories (Detail) - USD ($)
$ in Thousands
Oct. 31, 2023
Apr. 30, 2023
Inventory Disclosure [Abstract]    
Finished products $ 2,897 $ 3,412
Work in process 1,669 2,380
Raw materials 17,100 16,097
Total $ 21,666 $ 21,889
v3.23.3
Inventories - Additional Information (Detail) - USD ($)
$ in Thousands
Oct. 31, 2023
Apr. 30, 2023
Inventory [Line Items]    
Inventories $ 21,666 $ 21,889
International Subsidiaries    
Inventory [Line Items]    
Inventories $ 2,918 $ 2,740
v3.23.3
Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets and Liabilities Measured Recurring Basis (Detail)
$ in Thousands
Oct. 31, 2023
USD ($)
CompensationPlan
Apr. 30, 2023
USD ($)
CompensationPlan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Assets $ 2,656 $ 2,463
Financial Liabilities $ 3,123 $ 2,910
Number of non-qualified compensation plans maintained | CompensationPlan 2 2
Non-qualified compensation plans    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Liabilities $ 3,123 $ 2,910
Trading securities held in non-qualified compensation plans    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Assets 1,316 1,105
Cash surrender value of life insurance policies    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Assets 1,340 1,358
Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Assets 1,316 1,105
Financial Liabilities 0 0
Level 1 | Non-qualified compensation plans    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Liabilities 0 0
Level 1 | Trading securities held in non-qualified compensation plans    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Assets 1,316 1,105
Level 1 | Cash surrender value of life insurance policies    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Assets 0 0
Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Assets 1,340 1,358
Financial Liabilities 3,123 2,910
Level 2 | Non-qualified compensation plans    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Liabilities 3,123 2,910
Level 2 | Trading securities held in non-qualified compensation plans    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Assets 0 0
Level 2 | Cash surrender value of life insurance policies    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Financial Assets $ 1,340 $ 1,358
v3.23.3
Long-term Debt and Other Credit Arrangements (Details) - USD ($)
$ in Thousands
Oct. 31, 2023
Apr. 30, 2023
International Subsidiaries    
Debt Instrument [Line Items]    
Short-term borrowings $ 855 $ 39
Revolving Credit Facility | Credit Agreement, Mid Cap Funding IV Trust | Line of Credit    
Debt Instrument [Line Items]    
Outstanding advances under the long-term debt 5,000 3,500
Remaining borrowing capacity $ 7,400 $ 10,300
Interest rate at period end 9.53% 9.02%
v3.23.3
Sale-Leaseback Financing Transaction - Narrative (Details)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2023
USD ($)
Oct. 31, 2022
USD ($)
Oct. 31, 2023
USD ($)
renewalOption
Oct. 31, 2022
USD ($)
Apr. 30, 2023
USD ($)
Financing Liability [Abstract]          
Term of agreement 20 years   20 years    
Number of renewal options | renewalOption     4    
Renewal term 5 years   5 years    
Initial basic monthly rent     $ 158    
Annual rental increase, as a percent     2.00%    
Discount rate 4.75%   4.75%    
Gain (loss) on sale leaseback agreement     $ 0    
Financing liability $ 28,459   28,459   $ 28,774
Debt issuance costs on financing liability 677   677   708
Current portion of financing liability 677   677   642
Long-term portion of financing liability 27,782   27,782   28,132
Interest expense on financing liability 322 $ 330 647 $ 662  
Financing Liability [Line Items]          
Property, plant and equipment, at cost 63,733   $ 63,733   $ 61,368
Building          
Financing Liability [Line Items]          
Useful Life (in years)     20 years    
Land          
Financing Liability [Line Items]          
Property, plant and equipment, at cost $ 41   $ 41    
v3.23.3
Sale-Leaseback Financing Transaction - Remaining Future Cash Payments (Details) - USD ($)
$ in Thousands
Oct. 31, 2023
Apr. 30, 2023
Financing Liability [Abstract]    
Remainder of 2024 $ 967  
2025 1,970  
2026 2,009  
2027 2,050  
2028 2,090  
Thereafter 33,867  
Total Minimum Liability Payments 42,953  
Imputed Interest (14,494)  
Total $ 28,459 $ 28,774
v3.23.3
Leases - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2023
Oct. 31, 2022
Oct. 31, 2023
Oct. 31, 2022
Apr. 30, 2023
Leases [Abstract]          
Right of use assets $ 8,393   $ 8,393   $ 9,170
Operating cash paid to settle lease liabilities     $ 1,282 $ 1,026  
Remaining lease term (in years)     8 years    
Option to extend, term (in years)     5 years    
Option to terminate, term (in years)     1 year    
Operating lease, expense 847 $ 900 $ 1,714 1,734  
Operating lease, short term, expense $ 204 $ 398 $ 432 $ 708  
Weighted average remaining lease term, operating lease (in years) 4 years 7 months 6 days   4 years 7 months 6 days    
Weighted average discount rate, operating lease 5.10%   5.10%    
Weighted average remaining lease term, finance lease (in years) 5 years   5 years    
Weighted average discount rate, finance lease 8.50%   8.50%    
Lease not yet commenced     $ 681    
Operating lease, lease not yet commenced, term (in years) 3 years   3 years    
v3.23.3
Leases - Schedule of Operating and Finance Lease Maturity (Details)
$ in Thousands
Oct. 31, 2023
USD ($)
Operating  
Remainder of fiscal 2024 $ 1,294
2025 2,286
2026 1,933
2027 1,654
2028 1,120
Thereafter 1,370
Total Minimum Lease Payments 9,657
Imputed Interest (1,323)
Total 8,334
Financing  
Remainder of fiscal 2024 36
2025 131
2026 111
2027 40
2028 40
Thereafter 95
Total Minimum Lease Payments 453
Imputed Interest (86)
Total $ 367
v3.23.3
Earnings Per Share - Additional Information (Detail) - shares
6 Months Ended
Oct. 31, 2023
Oct. 31, 2022
Earnings Per Share [Abstract]    
Anti-dilutive options exclude from computation of earning per share (in shares) 19,200 94,930
v3.23.3
Earnings Per Share Schedule of Earnings Per Common Share (Details) - shares
shares in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2023
Oct. 31, 2022
Oct. 31, 2023
Oct. 31, 2022
Weighted average number of common shares outstanding        
Basic (in shares) 2,903 2,830 2,882 2,819
Dilutive effect of stock options and RSUs (in shares) 28 0 26 0
Weighted average common shares outstanding - diluted (in shares) 2,931 2,830 2,908 2,819
v3.23.3
Stock Options and Stock-Based Compensation - Additional Information (Detail) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended 6 Months Ended
Aug. 31, 2023
Jun. 30, 2023
Oct. 31, 2023
Oct. 31, 2022
Oct. 31, 2023
Oct. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Directors' fees paid with shares of common stock in lieu of cash in accordance with Director compensation guidelines         $ 10 $ 41
2017 Plan | Restricted Stock Units (RSUs)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock-based compensation expense     $ 241 $ 196 414 $ 327
Remaining estimated compensation expense     $ 1,791   $ 1,791  
2017 Plan | Restricted Stock Units (RSUs) | Tranche One            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Restricted stock units granted (in shares) 0 87,220        
Vesting period (in years)   3 years        
Shares available for issuance (in shares) 64,633          
2023 Plan | Restricted Stock Units (RSUs) | Tranche One            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares available for issuance (in shares) 374,633          
Increase in number of shares reserved for issuance (in shares) 310,000          
v3.23.3
Stockholders' Equity (Details)
$ / shares in Units, $ in Thousands
3 Months Ended
Oct. 31, 2023
USD ($)
vote
$ / shares
shares
Aug. 31, 2023
shares
Apr. 30, 2023
$ / shares
shares
Equity [Abstract]      
Common stock, shares authorized (in shares) 5,000,000   5,000,000
Common stock, par value (in dollars per share) | $ / shares $ 2.50   $ 2.50
Votes per share | vote 1    
Common stock, shares issued (in shares) 2,907,000   2,833,000
Common stock, shares outstanding (in shares) 2,902,000   2,830,000
Number of shares authorized to be repurchased (in shares)   100,000  
Purchase of treasury stock (in shares) 2,423    
Purchase of treasury stock | $ $ 44    
Remaining number of shares authorized to be repurchased (in shares) 97,577    
v3.23.3
Income Taxes (Details) - USD ($)
3 Months Ended 6 Months Ended
Oct. 31, 2023
Oct. 31, 2022
Oct. 31, 2023
Oct. 31, 2022
Apr. 30, 2023
Income Tax Disclosure [Abstract]          
Income tax expense $ 2,015,000 $ 570,000 $ 2,912,000 $ 949,000  
Effective income tax rate 41.60% 125.00% 35.30% 818.10%  
Foreign tax expense $ 534,000   $ 534,000    
Deferred tax liability, global tax exposure for unremitted earnings of international subsidiaries $ 1,421,000   $ 1,421,000   $ 1,318,000
v3.23.3
Defined Benefit Pension Plans - Additional Information (Detail) - USD ($)
3 Months Ended 6 Months Ended
Oct. 31, 2023
Oct. 31, 2022
Oct. 31, 2023
Oct. 31, 2022
Retirement Benefits [Abstract]        
Employer contributions $ 0 $ 0 $ 0 $ 0
Assumed as expected long-term rate of return (as a percent)     7.75% 7.75%
v3.23.3
Defined Benefit Pension Plans - Pension Expenses (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2023
Oct. 31, 2022
Oct. 31, 2023
Oct. 31, 2022
Retirement Benefits [Abstract]        
Service cost $ 0 $ 0 $ 0 $ 0
Interest cost 223 100 447 422
Expected return on plan assets (328) (166) (656) (701)
Recognition of net loss 145 74 290 314
Net periodic pension expense $ 40 $ 8 $ 81 $ 35
v3.23.3
Segment Information - Additional Information (Detail)
6 Months Ended
Oct. 31, 2023
Segment
Segment Reporting [Abstract]  
Number of business segments 2
v3.23.3
Segment Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2023
Oct. 31, 2022
Oct. 31, 2023
Oct. 31, 2022
Segment Reporting Information [Line Items]        
Net sales $ 50,436 $ 54,564 $ 100,275 $ 104,687
Intersegment revenues 0 0 0 0
Earnings (loss) before income taxes 4,845 456 8,257 116
Corporate / Eliminations        
Segment Reporting Information [Line Items]        
Net sales 0 0 0 0
Intersegment revenues (1,529) (3,985) (2,241) (6,402)
Earnings (loss) before income taxes (1,243) (1,891) (2,247) (3,423)
Domestic Operations | Operating Segments        
Segment Reporting Information [Line Items]        
Net sales 34,185 37,991 69,605 75,459
Intersegment revenues 374 650 425 1,446
Earnings (loss) before income taxes 4,287 491 7,910 589
International Operations | Operating Segments        
Segment Reporting Information [Line Items]        
Net sales 16,251 16,573 30,670 29,228
Intersegment revenues 1,155 3,335 1,816 4,956
Earnings (loss) before income taxes $ 1,801 $ 1,856 $ 2,594 $ 2,950

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