Q4 Net Income Up 18% to $2.6 Million;
Full-Year Record Net Income Was $13.8 Million, or $1.50 Per Share;
Special Dividend of $1.25 Per Share to Be Paid in May 2004
SIOUX FALLS, S.D., March 9 /PRNewswire-FirstCall/ -- Announcing that "the
quarter demonstrated the strength of the company's businesses," the management
of Raven Industries, Inc. (Nasdaq: RAVN) today reported an 18 percent increase
in net earnings to $2.6 million, a record 28 cents per share, for its fourth
quarter ended January 31, 2004. A year earlier, net earnings totaled
$2.2 million, or 24 cents per share. Sales climbed in each of the company's
business segments during the quarter, with overall sales up 17 percent to
$34 million.
In a separate release issued today, the company also declared a 22 percent
increase in its regular quarterly cash dividend to 11 cents per share and a
May 2004 one-time special cash dividend of $1.25 per share.
For the full year, each of Raven's four business units delivered "solid
financial results," Raven CEO/President Ronald M. Moquist reported. The
executive emphasized that new product introductions and "continued gains in
market share" boosted revenue 18 percent to $143 million while net income
climbed 24 percent to a record $13.8 million, an all-time high of $1.50 per
share. The company's return on equity climbed from last year's 21.5 percent
to a record 23.8 percent while its return on net sales rose to 9.7 percent
from 9.3 percent, the executive noted.
Moquist stated "that management plans for another full year of
double-digit sales and profit growth, although earnings for this new year's
first half will be relatively flat." The first six months of this new year,
Moquist noted, will not see the repeat of a special chemical-injection systems
sale to a chemical company that totaled $6 million for its Flow Controls
Division in the first half of last year.
Segment Performance
Engineered Films Division (EFD) continues to outpace the competition.
Sales for the fourth quarter rose 15 percent to $11.4 million from the year
earlier and operating income was up 11 percent to $2.7 million. Higher sales
of pit liners for oil exploration and films for industrial applications
contributed to the increases. Full-year sales were up 16 percent to
$46 million, and operating income -- hit by higher raw material prices --
totaled $11.7 million, up 2 percent.
Electronic Systems Division (ESD) sales for fiscal 2004's final quarter
jumped 24 percent to $12.1 million while operating income rose 13 percent to
$1.5 million. Margins were constricted somewhat by startup costs with new
customers. For the year, ESD sales totaled $44 million, up 15 percent, and
operating income rose dramatically, up 44 percent to $5.8 million from the
previous year, thanks in part to ongoing operating improvements, including Six
Sigma initiatives.
The Flow Controls Division (FCD), a market leader positioned for long-term
double-digit growth, reported fourth-quarter sales up 3 percent to
$6.1 million while operating income fell 14 percent to $1.0 million. Strong
early-season shipments in October did not fully convert to January re-order
deliveries, and continued spending in support of precision-agriculture
initiatives also adversely affected margins. For the full year, however,
performance hit record highs, with sales increasing 23 percent to $35 million
while operating income rose 20 percent to $8.3 million.
Aerostar's restructuring and new product directions turned this operation
around in fiscal 2004. For the fourth quarter, sales jumped 24 percent to
$4.0 million while operating income totaled $387,000 versus a loss of
$210,000 in the year-ago quarter. Shipments under its $7.6 million US Army
cargo parachute contract were key to the year's success. For the entire year,
sales climbed 35 percent to $17 million. Full-year operating income,
including $182,000 in gains on asset sales, jumped to $2.0 million compared to
an operating loss of $405,000 the previous year. Aerostar's focus is now on
three new business platforms: military cargo parachutes, specialty uniforms
for government agencies and large inflatables, including military decoys and
tethered blimps.
Balance Sheet
Raven's balance sheet remained strong with cash and investment balances
exceeding $18 million at the end of the quarter. Strong earnings and lower
inventory levels contributed to higher operating cash flows, reaching
$19.7 million for the 12 months ended January 31, 2004, compared to
$12.7 million for the year-earlier period. The company's current ratio
reached 4.7 to 1 at January 31, 2004, compared to 3.7 one year earlier.
CONFERENCE CALL INFORMATION
Raven has scheduled a conference call today at 2:00 p.m. Central Time to
discuss its fourth quarter and full-year performance and related trends in its
business. To access this call, log on to http://www.ravenind.com or http://www.vcall.com
15 minutes before the call to download the necessary software. Replays will
be available through this website for 90 days.
FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act provides a "safe harbor" for
forward-looking statements. Certain information included in this News Release
and other materials filed or to be filed by the company with the Securities
and Exchange Commission (as well as information included in statements made or
to be made by the company) contains statements that are forward-looking.
Although the company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, there is no
assurance that such expectations will be achieved. Such assumptions involve
important risks and uncertainties that could significantly affect results in
the future. These risks and uncertainties include, but are not limited to,
those relating to general economic conditions, weather conditions, which could
affect certain of the company's primary markets, such as agriculture and
construction, or changes in competition, technology or the company's customer
base, any of which could adversely impact any of the company's product lines.
On the Internet, information is available at http://www.ravenind.com , the
company's website.
RAVEN INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except earnings per share)
Three Months Ended Twelve Months Ended
January 31 January 31
Fav Fav
(Unfav) (Unfav)
2004 2003 Change 2004 2003 Change
(unaudited)(unaudited)
Net sales $33,594 $28,814 17% $142,727 $120,903 18%
Cost of goods sold 26,302 22,777 108,968 93,388
Gross profit 7,292 6,037 21% 33,759 27,515 23%
Selling, general, and
administrative
expenses 3,269 2,680 11,960 10,629
Gain (loss) on sale
of businesses and
assets 1 - (173) 179
Operating income 4,024 3,357 20% 21,626 17,065 27%
Other income 34 69 90 189
Income before income
taxes 4,058 3,426 18% 21,716 17,254 26%
Income taxes 1,470 1,229 7,880 6,069
Net income $2,588 $2,197 18% $13,836 $11,185 24%
Net income per common
share:
-basic $0.29 $0.24 21% $1.53 $1.22 25%
-diluted $0.28 $0.24 17% $1.50 $1.20 25%
Weighted average
common shares
outstanding:
-basic 9,031 9,105 (1)% 9,041 9,151 (1)%
-diluted 9,229 9,290 (1)% 9,245 9,348 (1)%
RAVEN INDUSTRIES, INC.
SALES AND OPERATING INCOME BY SEGMENT
(In thousands)
Three Months Ended Twelve Months Ended
January 31 January 31
Fav Fav
(Unfav) (Unfav)
2004 2003 Change 2004 2003 Change
(unaudited)(unaudited)
Net Sales:
Flow Controls $6,068 $5,867 3% $35,059 $28,496 23%
Engineered Films 11,395 9,917 15% 46,408 39,975 16%
Electronic Systems 12,098 9,777 24% 44,307 38,589 15%
Aerostar 4,033 3,253 24% 16,953 12,529 35%
Sold Businesses - - - 1,314 (100)%
Total Company $33,594 $28,814 17% $142,727 $120,903 18%
Operating Income
(Loss):
Flow Controls $966 $1,129 (14)% $8,254 $6,897 20%
Engineered Films 2,739 2,470 11% 11,701 11,447 2%
Electronic Systems 1,472 1,308 13% 5,797 4,022 44%
Aerostar 387 (210) 284% 1,954 (405) 582%
Sold Businesses - - (355) 204 (274)%
Total Segment
Income 5,564 4,697 27,351 22,165
Corporate Expenses (1,540) (1,340) (15)% (5,725) (5,100) (12)%
Total Company $4,024 $3,357 20% $21,626 $17,065 27%
RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
January 31, January 31,
2004 2003
ASSETS
Cash, cash equivalents and short-term
investments $18,442 $9,217
Accounts receivable, net 18,454 16,468
Inventories 16,763 21,366
Prepaid expenses and other current
assets 2,051 2,300
Total current assets 55,710 49,351
Property, plant and equipment, net 15,950 16,455
Other assets, net 7,848 7,010
$79,508 $72,816
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $72 $119
Accounts payable 3,666 5,291
Accrued and other liabilities 8,157 7,757
Total current liabilities 11,895 13,167
Long-term debt, less current portion 57 151
Other liabilities 1,085 1,262
Stockholders' equity 66,471 58,236
$79,508 $72,816
RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(In thousands)
Twelve Months Ended January 31
2004 2003
Cash flows from operating activities
Net income $13,836 $11,185
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization 4,145 3,966
Deferred income taxes 254 1,157
Other operating activities, net 1,497 (3,573)
Net cash provided by operating
activities 19,732 12,735
Cash flows from investing activities
Capital expenditures (3,330) (6,033)
Other investing activities, net (1,022) (3,133)
Net cash provided by (used in)
investing activities (4,352) (9,166)
Cash flows from financing activities
Dividends paid (3,075) (2,563)
Purchase of treasury stock (3,068) (3,324)
Long-term debt principal payments (141) (131)
Other financing activities, net 129 188
Net cash used in financing activities (6,155) (5,830)
Net increase (decrease) in cash and
cash equivalents 9,225 (2,261)
Cash and cash equivalents at
beginning of period 5,217 7,478
Cash and cash equivalents at
end of period 14,442 5,217
Short-term investments 4,000 4,000
Cash, cash equivalents and short-term
investments $18,442 $9,217
SOURCE Raven Industries, Inc.
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Related links:
http://www.ravenind.com
CONTACT:
Tom Iacarella, VP-Finance & Treasurer of
Raven Industries, Inc., +1-605-336-2750; or Dennis Waite, General
Inquiries, +1-708-246-6265, or Leslie Loyet, Analyst Inquiries,
+1-312-640-6672, or Cindy Martin, Media Inquiries,
+1-312-640-6741, all of Financial Relations Board
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