SIOUX FALLS, S.D., May 19 /PRNewswire-FirstCall/ -- Raven Industries, Inc.
(Nasdaq: RAVN) reported today that net income for its fiscal first quarter
ended April 30, 2005, climbed 32 percent to a record $7.2 million, or 39 cents
per share, from the year-ago's 29 cents, making it the best quarter in the 49-
year history of Raven.
"Except in our Aerostar segment, where we anticipated some decline, both
the topline and operating income of our other three core businesses were very
strong in this first quarter," noted Raven President and CEO Ronald M.
Moquist. "Our first quarter was particularly bolstered by our Engineered
Films Division." This segment generated an increase of 55 percent in sales
and 38 percent in operating income by focusing on selling out productive
capacity. "Our Autoboom product line, acquired in February from Montgomery
Industries, is performing well, benefiting our Flow Controls Division, and we
are seeing a nice turnaround in Electronic Systems." Overall, sales for the
first quarter climbed 32 percent to $50.7 million.
Segment Performance
Engineered Films Division (EFD) operating income climbed 38 percent to
$4.1 million from $3.0 million a year ago. This division increased sales 55
percent to $16.1 million from $10.4 million in the year-earlier period.
Shipments included residual demand for disaster film, while the division also
saw significant growth in demand for pit liners for oil exploration. Higher
product pricing offset some of the increases in raw material costs, but gross
margins still declined from 33.7 percent to 30.2 percent of sales.
Raven's Flow Controls Division (FCD) "is off to a good start for the
year," Moquist said, with first-quarter sales increasing 22 percent to $16.1
million from $13.2 million. Operating income was up 15 percent to $5.9
million from $5.1 million last year. Sales of the division's newly acquired
automatic boom height control system, called Autoboom, were strong, reaching
more than $1 million. The executive noted, however, that the first quarter is
the seasonal peak for the year for Flow Controls and that the acquisition may
make that seasonality more pronounced. FCD saw steady ongoing demand for its
ag products, including SmarTrax, its GPS-based automatic steering system.
Operating profit margins reflect higher spending for the division's continuing
investment in its research, product development and Precision Agriculture
marketing initiatives.
The Electronic Systems Division (ESD) enjoyed a "nice recovery" in sales,
which were up 47 percent to $13.3 million from a depressed $9.1 million a year
earlier. Operating profits climbed to $2.1 million from $702,000 in the year-
ago period. CEO Moquist said that Raven delivered a lower percentage of
startup products and had improved operating efficiencies and throughput in the
latest quarter.
Aerostar "was in line with expectations," with sales declining nine
percent to $5.2 million from $5.7 million while operating income fell to
$937,000 vs. the $1.2 million reported a year earlier. A much lower level of
shipments of cargo parachutes was primarily the cause of lower revenues.
There was, however, an increase in shipments of high-altitude research
balloons during the first quarter. At this point, Aerostar no longer expects
to receive follow-on parachute orders from the US Army for delivery in the
current fiscal year. "The Army is not moving forward as quickly as we
originally expected," Moquist explained, "but we believe our bids will be
competitive and orders under long-term contracts will be issued for fiscal
2007 delivery."
Outlook
Moquist said that at this early date he sees upcoming second quarter
results modestly ahead of year-earlier sales and earnings, with the increases
reaching double-digit levels. He added, "We see opportunities to replace the
high level of disaster film shipped in the third and fourth quarters last year
and anticipate a solid second half and another record year for both profits
and sales."
Balance Sheet Strength
The company's balance sheet remains strong, with over $4 million in cash
and investments. Cash balances are down $15 million from one year earlier due
primarily to the special dividend of $11.3 million paid in May 2004 and the
February 2005 acquisition of Montgomery Industries. Seasonal short-term
borrowings of $4.5 million were required during the quarter, but were repaid
by April 30.
First-quarter cash flow from operating activities declined from $2.5
million last year to $1.3 million due to higher working capital requirements.
Cash used for investing activities and dividends were also significantly
higher. "The first quarter dividend increased from 5.5 to 7 cents per share,
a 27 percent increase," Moquist noted.
Conference Call Information
Raven has scheduled a conference call today at 2:00 p.m. Central Time to
discuss its fiscal first quarter 2006 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.
About Raven Industries, Inc.
Raven is an industrial manufacturer that provides electronics
manufacturing services, reinforced plastic sheeting and flow control devices
to various markets.
SIC Codes: 3672, 3081, 3829
Forward-Looking Statements
The Private Securities Litigation Reform Act provides a "safe harbor" for
forward-looking statements. Certain information included in this Press
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 on 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 weather conditions, which
could affect certain of the company's primary markets, such as agriculture and
construction, or changes in competition, raw material availability, technology
or relationships with the company's largest customers, any of which could
adversely impact any of the company's product lines. The foregoing list is
not exhaustive and the company disclaims any obligation to subsequently revise
any forward-looking statements to reflect events or circumstances after the
date of such statements.
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) (Unaudited)
Three Months Ended April 30
Fav (Unfav)
2005 2004 Change
Net sales $50,704 $38,408 32 %
Cost of goods sold 35,543 26,730
Gross profit 15,161 11,678 30 %
Selling, general, and
administrative expenses 4,025 3,227
Operating income 11,136 8,451 32 %
Other (income) expense, net 38 (24)
Income before income taxes 11,098 8,475 31 %
Income taxes 3,941 3,060
Net income $7,157 $5,415 32 %
Net income per common share:
-basic $0.40 $0.30 33 %
-diluted $0.39 $0.29 34 %
Weighted average common
shares outstanding:
-basic 18,033 18,077
-diluted 18,292 18,428
RAVEN INDUSTRIES, INC.
SALES AND OPERATING INCOME BY SEGMENT
(In thousands) (Unaudited)
Three Months Ended April 30
Fav (Unfav)
2005 2004 Change
Net Sales:
Flow Controls $16,089 $13,197 22 %
Engineered Films 16,092 10,413 55 %
Electronic Systems 13,321 9,082 47 %
Aerostar 5,202 5,716 (9)%
Total Company $50,704 $38,408 32 %
Operating Income (Loss):
Flow Controls $5,869 $5,111 15 %
Engineered Films 4,119 2,986 38 %
Electronic Systems 2,090 702 198 %
Aerostar 937 1,228 (24)%
Total Segment Income 13,015 10,027
Corporate Expenses (1,879) (1,576) (19)%
Total Company $11,136 $8,451 32 %
RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) (Unaudited)
April 30, January 31, April 30,
2005 2005 2004
ASSETS
Cash, cash equivalents and short-term
investments $4,148 $9,619 $19,282
Accounts receivable, net 29,206 25,370 22,007
Inventories 23,209 23,315 18,538
Prepaid expenses and other current
assets 4,003 3,288 2,463
Total current assets 60,566 61,592 62,290
Property, plant and equipment, net 21,442 19,964 15,712
Other assets, net 9,749 6,953 7,720
$91,757 $88,509 $85,722
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $39 $57 $72
Accounts payable 6,252 10,322 4,470
Dividends payable - - 11,327
Accrued and other liabilities 12,243 10,571 8,961
Total current liabilities 18,534 20,950 24,830
Long-term debt, less current portion - - 39
Other liabilities 1,435 1,477 1,218
Stockholders' equity 71,788 66,082 59,635
$91,757 $88,509 $85,722
RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED CASH FLOWS
(In thousands) (Unaudited)
Three Months Ended April 30,
2005 2004
Cash flows from operating activities
Net income $7,157 $5,415
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization 1,139 1,026
Deferred income taxes (111) 5
Other operating activities, net (6,922) (3,909)
Net cash provided by operating
activities 1,263 2,537
Cash flows from investing activities
Capital expenditures (2,409) (662)
Acquisition of businesses (2,685) (5)
Other investing activities, net 497 -
Net cash used in investing activities (4,597) (667)
Cash flows from financing activities
Dividends paid (1,262) (993)
Purchase of treasury stock (361) (113)
Long-term debt principal payments (18) (18)
Other financing activities, net (10) 94
Net cash used in financing activities (1,651) (1,030)
Effect of exchange rate changes on
cash 14 -
Net increase (decrease) in cash and
cash equivalents (4,971) 840
Cash and cash equivalents at
beginning of period 6,619 14,442
Cash and cash equivalents at end of
period 1,648 15,282
Short-term investments 2,500 4,000
Cash, cash equivalents and short-term
investments $4,148 $19,282
SOURCE Raven Industries, Inc.
 back to top
Related links:
http://www.ravenind.com
CONTACT:
Tom Iacarella, VP & CFO of Raven Industries,
Inc., +1-605-336-2750; or General Inquiries, Dennis Waite,
+1-708-246-6265, or Analyst Inquiries, Leslie Loyet,
+1-312-640-6672, or Media Inquiries, Tim Grace, +1-312-640-6667,
all of Financial Relations Board
|
