SIOUX FALLS, S.D., May 19 /PRNewswire-FirstCall/ -- With substantial gains
in sales and profits in three of its four business segments,
Raven Industries, Inc. (Nasdaq: RAVN) reported today that net income for its
first quarter ended April 30, 2003, climbed 21 percent to $4.2 million, or a
record 45 cents per diluted share, from $3.5 million, or 37 cents per diluted
share, a year earlier. Sales grew 19 percent to $36.9 million. Earnings-per-
share computations for both quarters reflect the company's two-for-one stock
split in January 2003.
Raven President and CEO Ronald M. Moquist noted that both the sales and
earnings figures were first-quarter records. "Despite a tough market
situation, all of our operating units performed at a high level and
contributed to our outstanding first quarter."
Segment Performance
Sales of the company's Engineered Films Division (EFD) rose 35 percent to
$11.1 million and operating income increased 25 percent to $3.0 million from
the year-earlier's $2.4 million. The addition of new extrusion capacity late
last year helped support increased sales levels. Higher product prices and
strong demand were factors in this division's very strong sales performance,
Moquist noted. A year ago, Raven had experienced a slowdown in sales of pit
liners for oil exploration as well as a very mild winter across most of the
United States, which had reduced the need for plastic sheeting enclosures for
construction. The profit impact of the higher sales was partially offset by
higher prices for raw materials.
Electronic Systems Division (ESD) sales for the first quarter jumped 34
percent to $10.1 million. Operating income rose to $1.1 million compared to
$208,000 one year earlier. "Continuation of the trend in the past year's
third and fourth quarters of new major customers coming onstream were a
significant factor in this strong first quarter," CEO Moquist said, noting,
"our Six Sigma initiatives continue to generate production efficiencies and
stronger profitability."
Raven's Flow Controls Division (FCD) reported relatively flat sales of
$11.8 million but the segment's operating income dipped to $3.6 million, down
14 percent, from $4.2 million a year earlier. Sales increases for the
company's precision agricultural products were offset by lower than expected
deliveries under a special order for chemical injection systems. Sales of
$2.1 million under this order compared to $2.6 million one year earlier.
Operating profit margins were down in the quarter due to competitive
pressures, a shift in product mix, and higher selling expenses resulting from
support of Raven's new precision-agriculture distribution plan.
After struggling through a major reorganization in the past year, Aerostar
returned to profitability. Sales for the first quarter reached $4.0 million,
compared to $2.4 million in the first quarter last year. The higher sales were
due mostly to shipments of military cargo parachutes. First-quarter operating
income was $312,000 versus a loss of $191,000 a year earlier. Operating income
included gains of approximately $120,000 on hot-air balloon shipments related
to a special promotion at the end of last fiscal year.
Cash Flow and Balance Sheet
Cash and short-term investments reached $12.2 million at April 30, 2003,
compared to $10.2 million one year earlier. Accounts receivable and inventory
levels increased as a result of sales growth. Cash flow from operations for
the three-month period totaled $5.2 million, essentially unchanged from the
$5.4 million one year ago. Dividends per share increased 14 percent effective
April 15, 2003, our seventeenth consecutive annual increase.
First Half Outlook is Strong
Moquist said the company sees a strong first half with a better than
expected second quarter due in part to final shipments under the special
chemical-injection order in FCD. "We had budgeted a down second quarter," the
executive said, "but now expect to beat that projection. We continue to work
hard to grow topline revenue, improve operations and generate cash. Our
performance shows that we're on the right track and we believe we will have
another good year."
Forward-Looking Statements
The Private Securities Litigation Reform Act provides a "safe harbor" for
forward-looking statements. Certain information included in 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 FRB's website,
http://www.frbwebershandwick.com , or 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 April 30
Percent
2003 2002 Change
(unaudited) (unaudited)
Net sales $36,942 $30,974 19 %
Cost of goods sold 27,505 22,824 21 %
Gross profit 9,437 8,150 16 %
Selling, general & administrative
expenses 2,902 2,846 2 %
Gain (loss) on sale of businesses and
assets 9 -
Operating income 6,544 5,304 23 %
Other income 12 16
Income before income taxes 6,556 5,320 23 %
Income taxes 2,373 1,862 27 %
Net income $4,183 $3,458 21 %
Net income per common share:
-basic $0.46 $0.38 21 %
-diluted $0.45 $0.37 22 %
Weighted average common shares
outstanding:
-basic 9,074 9,189 (1)%
-diluted 9,245 9,423 (2)%
RAVEN INDUSTRIES, INC.
SALES AND OPERATING INCOME BY SEGMENT
(In thousands)
Three Months Ended April 30
Percent
2003 2002 Change
(unaudited) (unaudited)
NET SALES
Flow Controls $11,761 $11,772 0 %
Engineered Films 11,139 8,222 35 %
Electronic Systems 10,053 7,488 34 %
Aerostar 3,989 2,431 64 %
Sold Businesses - 1,061 (100)%
TOTAL COMPANY $36,942 $30,974 19 %
OPERATING INCOME (LOSS)
Flow Controls $3,619 $4,205 (14)%
Engineered Films 2,999 2,399 25 %
Electronic Systems 1,097 208 427 %
Aerostar 312 (191) 263 %
Sold Businesses (20) 70 (129)%
Corporate Expenses (1,463) (1,387) (5)%
TOTAL COMPANY $6,544 $5,304 23 %
RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 30, January 31, April 30,
2003 2003 2002
ASSETS (unaudited) (audited) (unaudited)
Cash, cash equivalents and short-term
investments $12,248 $9,217 $10,216
Accounts receivable, net 17,422 16,468 14,882
Inventories 20,869 21,366 19,624
Prepaid expenses and other current
assets 2,378 2,300 2,793
Total current assets 52,917 49,351 47,515
Property, plant and equipment, net 15,918 16,455 14,281
Other assets, net 7,035 7,010 8,293
$75,870 $72,816 $70,089
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $116 $119 $116
Accounts payable 3,440 5,291 4,611
Accrued and other liabilities 9,928 7,757 8,768
Total current liabilities 13,484 13,167 13,495
Long-term debt, less current portion 125 151 247
Other liabilities 1,281 1,262 1,671
Stockholders' equity 60,980 58,236 54,676
$75,870 $72,816 $70,089
RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED CASH FLOW
STATEMENTS
(In thousands)
Three Months Ended April 30
2003 2002
(unaudited) (unaudited)
Cash flows from operating activities
Net income $4,183 $3,458
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 1,074 1,038
Deferred income taxes 42 202
Other operating activities, net (123) 689
Net cash provided by operating
activities 5,176 5,387
Cash flows from investing activities
Capital expenditures (433) (1,151)
Other investing activities, net (120) 2
Net cash provided by (used in)
investing activities (553) (1,149)
Cash flows from financing activities
Dividends paid (726) (643)
Purchase of treasury stock (889) (841)
Long-term debt principal payments (29) (44)
Other financing activities, net 52 28
Net cash used in financing activities (1,592) (1,500)
Net increase (decrease) in cash and
cash equivalents 3,031 2,738
Cash and cash equivalents at
beginning of period 5,217 7,478
Cash and cash equivalents at end of
period 8,248 10,216
Short-term investments 4,000 -
Cash, cash equivalents and short-term
investments $12,248 $10,216
SOURCE Raven Industries, Inc.
 back to top
Related links:
http://www.frbwebershandwick.com
http://www.ravenind.com
CONTACT:
Tom Iacarella, VP & CFO of Raven Industries,
+1-605-336-2750, or General Inquiries, Dennis Waite,
+1-708-246-6265, Analyst Inquiries, Leslie Loyet,
+1-312-640-6672, or Media Inquiries, Cindy Martin,
+1-312-640-6741, all of FRB Weber Shandwick
|
