Company: KEQU
Filing Date: 2025-12-12
Form Type: 10-Q
Source: 0000055529-25-000054
Chunk: 67

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-12-12
Form: 10-Q
Item: Part I, Item 8
Chunk 67
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,000, or $1.75 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 previous Mid Cap Revolving Credit Facility. The Company terminated the Mid Cap Revolving Credit Facility on September 30, 2024. In conjunction with the Nu Aire acquisition (see Note C, Nu Aire Acquisition for additional details), the Company entered into a new Revolving Credit Facility with PNC, which is available on an ongoing basis to supplement our sources of liquidity as needed. 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 $67,830,000 at October 31, 2025, compared to $64,651,000 at April 30, 2025. The ratio of current assets to current liabilities was 2.5-to-1.0 at October 31, 2025, compared to 2.2-to-1.0 at April 30, 2025.

The Company's operating activities provided cash of $1,526,000 during the six months ended October 31, 2025. Net cash provided by operating activities was primarily driven by operations and decreases in receivables of $3.4 million, partially offset by increases in inventories of $2.7 million, decreases in accounts payable and other accrued expenses of $6.4 million, and decreases in deferred revenue of $1.7 million. During the six months ended October 31, 2025, the Company used net cash of $2,341,000 in investing activities related to capital expenditures. The Company's financing activities used net cash of $2,316,000 during the six months ended October 31, 2025, primarily related to the servicing of the Company's long-term debt arrangements and the payment of employee taxes withheld for stock-based compensation. See Note H, Long-term Debt and Other Credit Arrangements, for more details. On December 4, 2025, the Company entered into a First Amendment to Loan Agreement with PNC and completed the Seller Note Repayment. See Note Q, Subsequent Events, for more details.

Outlook

The Company's ability to predict future demand for its products continues to be limited given its role as