Company: KEQU
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0000055529-25-000013
Chunk: 42

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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0.45 per diluted share, for the three months ended January 31, 2025, compared to net earnings of $2,521,000, or $0.85 per diluted share, in the prior year period. Net earnings was $6,555,000, or $2.20 per diluted share, for the nine months ended January 31, 2025, compared to net earnings of $7,727,000, or $2.64 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 $58,441,000 at January 31, 2025, compared to $56,037,000 at April 30, 2024. The ratio of current assets to current liabilities was 2.2-to-1.0 at January 31, 2025, compared to 2.4-to-1.0 at April 30, 2024.

The Company's operating activities provided cash of $5,376,000 during the nine months ended January 31, 2025. Excluding the impacts of the Nu Aire acquisition, net cash provided by operating activities was primarily driven by operations, decreases in inventories of $2.9 million, and increases in deferred revenue of $2.5 million, partially offset by decreases in receivables of $1.8 million, decreases in accounts payable and other accrued expenses of $4.9 million and the change in other, net of $2.7 million, of which $1.3 million related to an increase in prepaid expenses and other current assets. During the nine months ended January 

20

31, 2025, the Company used net cash of $30,385,000 in investing activities, of which $28.7