Raven Industries, Inc. (the Company) (NASDAQ:
RAVN) today reported financial results for the first
quarter that ended April 30, 2019.
Noteworthy Items:
- Temporary conditions held down first quarter results; however,
growth in sales and operating income are expected for the full year
in each division and for the Company;
- Consolidated net sales decreased 12 percent year-over-year in
the first quarter (a decrease of 4 percent year-over-year when
excluding the impact of hurricane recovery film sales);1
- Engineered Films completed the commissioning of Line 15, its
new blown film production line with advanced capabilities, which
will provide future growth within the industrial and geomembrane
end-markets;
- Engineered Films was awarded and began fabrication on a new
$7.4 million geomembrane installation project in Carlsbad, CA;
- Engineered Films' net sales decreased 26 percent year-over-year
(a decrease of 13 percent year-over-year when excluding the impact
of hurricane recovery film sales);2
- Aerostar's net sales increased 12 percent year-over-year as the
division began delivering on the previously announced five-year $36
million radar systems contract award with the U.S. Naval Air
Warfare Center;
- Applied Technology's integration of the AgSync, Inc. (AgSync)
acquisition is progressing very well and initial customer feedback
regarding this transaction has been exceptionally strong;
- Applied Technology increased net sales 3 percent year-over-year
on strength in Brazil, despite temporary end-market weakness in
North America as a result of the very wet spring.
First Quarter Results:Net sales for the first
quarter of fiscal 2020 were $98.2 million, down 11.7 percent versus
the first quarter of fiscal 2019. Hurricane recovery film sales
declined $8.9 million in the first quarter of fiscal 2020 compared
to the first quarter of fiscal 2019. Excluding sales of hurricane
recovery film, consolidated net sales in the first quarter
decreased $4.0 million, or 4.0 percent year-over-year.1 Both
Applied Technology and Aerostar accomplished year-over-year sales
growth, but the decline in net sales from Engineered Films drove
the consolidated result. Engineered Films' net sales were adversely
impacted in the first quarter by temporary operational
inefficiencies associated with the go-live on a new enterprise
resource planning (ERP) platform and weather-related impacts that
forced production shutdowns and delayed delivery of certain raw
materials. The Company estimates these factors, on a combined
basis, negatively impacted Engineered Films' net sales in the first
quarter by approximately $4.5 million.
Operating income for the first quarter of fiscal 2020 was $15.1
million versus operating income of $21.5 million in the first
quarter of fiscal 2019, decreasing 29.8 percent year-over-year. The
year-over-year decrease was primarily due to negative operating
leverage as a result of lower sales volume. Sales volume was down
significantly in Engineered Films due to prior year abnormally high
hurricane recovery film sales, the post go-live temporary
operational inefficiencies and weather-related impacts to
production. Increased investment in research and development
activities in both Applied Technology and Aerostar to drive future
growth also negatively impacted operating income versus the prior
year.
Net income for the first quarter of fiscal 2020 was $13.2
million, or $0.36 per diluted share, versus net income of $22.1
million, or $0.61 per diluted share, in last year's first quarter.
Included in the prior year's first quarter results on a pre-tax
basis was an expense associated with a gift to South Dakota State
University of $4.5 million ($3.7 million after-tax, or $0.10 per
diluted share) and a non-operating gain on the sale of the
Company's ownership interest in Site-Specific Technologies (SST) of
$5.8 million ($4.7 million after-tax, or $0.13 per diluted share).
The net impact of these two non-recurring events to the prior
year's first quarter was a favorable $0.03 per diluted share. In
addition, this year's first quarter net income benefited from
approximately $1 million ($0.03 per diluted share) in favorable
discrete tax items which reduced the Company's effective tax rate
by approximately 6 percentage points year-over-year.
Balance Sheet and Cash Flow:At the end of the
first quarter of fiscal 2020, cash and cash equivalents totaled
$61.4 million, decreasing $4.4 million from the prior quarter. The
sequential decrease in cash was led by an increase in net working
capital requirements and share repurchase activity in the first
quarter of fiscal 2020.
During the first quarter of fiscal 2020, the Company repurchased
approximately 61,000 shares at an average price of $37.55 per share
for a total of $2.3 million. The Company's remaining repurchase
authorization is approximately $26 million.
Net working capital as a percentage of annualized net sales
deteriorated, from 24.1 percent in the first quarter of last year
to 27.9 percent in this year’s first quarter.3 The increase in net
working capital percentage was driven primarily by an increase in
accounts receivable and inventory within Applied Technology.
Applied Technology Division:Net sales for
Applied Technology in the first quarter of fiscal 2020 were $41.7
million, up 3.2 percent year-over-year. Geographically,
international sales were up 11.3 percent year-over-year, driven
primarily by strong growth in Latin America, particularly Brazil.
Sales to this key agricultural region are growing as a result of
investment in and establishment of the division's Latin America
headquarters in Brazil in the first quarter of last year. On a
domestic basis, sales were flat year-over-year as the division
experienced declining demand due to the very challenging weather
conditions. However, growth in new products resulted in market
share gains in a down market.
Division operating income in the first quarter of fiscal 2020
was $13.2 million, down $2.7 million or 17.0 percent versus the
first quarter of fiscal 2019. Increased research and development
investment, along with integration and acquisition expenses related
to the acquisition of AgSync, drove the year-over-year decrease. In
addition, first quarter operating income in the prior year
benefited from favorable legal recoveries that did not repeat in
the first quarter of this year.
Engineered Films Division:Net sales for
Engineered Films in the first quarter of fiscal 2020 were $44.3
million, down $15.7 million or 26.2 percent year-over-year.
Included in prior year's first quarter net sales was $8.9 million
of hurricane recovery film sales, which, as expected, did not
reoccur in the first quarter of fiscal 2020. Excluding the impact
from hurricane recovery film sales, the division's net sales
decreased 13.3 percent year-over-year.2 The first quarter of fiscal
2019 was the only quarter in fiscal 2019 with abnormally high
hurricane recovery film sales, and as such, the division does not
expect hurricane recovery film sales to have a significant
comparative impact for the remainder of fiscal year 2020.
During the first quarter, the division went live on its new ERP
platform. The overall implementation went very well. However, as
anticipated, the division experienced a temporary reduction in
operating efficiencies as it began using its new platform. This
resulted in delays in processing and fulfilling certain orders
during the first quarter. The Company estimates that approximately
$2.5 million in sales were pushed into future quarters as a result.
Additionally, power outages caused by an ice storm resulted in an
unexpected two-day plant shutdown in the first quarter. The Company
estimates this shutdown reduced division sales in the first quarter
of fiscal year 2020 by approximately $2 million. Together, these
temporary operational challenges are estimated to have negatively
impacted first quarter net sales by approximately $4.5 million.
During the first quarter of this fiscal year, the division was
awarded a new $7.4 million geomembrane installation project in
Carlsbad, CA. The division started fabrication on this new contract
and expects to complete the project in the fourth quarter of fiscal
2020.
Division operating income in the first quarter of fiscal 2020
was $6.4 million, down $6.8 million or 51.8 percent versus the
first quarter of fiscal 2019. Division operating income, as a
percentage of sales, decreased from 22.0 percent in the first
quarter of last year to 14.4 percent in this year's first quarter.
The year-over-year decrease was driven primarily by lower sales
volume, including the significant reduction in hurricane recovery
film sales, and the corresponding negative operating leverage. In
addition, the temporary operational challenges also had an
unfavorable impact to division operating income.
Aerostar Division:Net sales for Aerostar during
the first quarter of fiscal 2020 were $12.2 million, up $1.3
million or 11.8 percent versus the first quarter of fiscal 2019.
This increase was driven by improved stratospheric balloon and
radar sales. Deliveries on the previously announced five-year $36
million radar contract drove growth in radar sales in the first
quarter.
Division operating income in the first quarter of fiscal 2020
was $2.0 million, down $0.8 million versus the first quarter of
fiscal 2019. The division achieved year-over-year growth in gross
profit on higher sales volume; however, division profit decreased
due to purposeful increased investment in research and development
activities to further advance its engineering services and flight
operations capabilities. During the first quarter of this year, the
division launched twenty-eight balloons, compared to eight in the
prior year's first quarter. Most of these flights were for internal
research and development to advance the platform technology. The
division is committed to investing in its core platforms to drive
long-term growth in both sales and operating income.
Market Outlook:The U.S. ag market is
experiencing a very challenging start to the 2019 growing season.
Wet, cool weather and abnormal flooding in North America have
delayed and shortened the 2019 planting season. This has
unfavorably impacted Applied Technology, as the division's core
customers, ag retailers, were limited in the amount of field
application activities that could be performed during the first
quarter of fiscal 2020. Due to these challenging field conditions,
some ag retailers expect to experience double-digit declines in
sales during calendar year 2019, and this will likely impact the
amount they invest in new machines or technology upgrades in the
aftermarket. We expect this to impact the planned number of new
machine builds for some OEMs this year. While unfavorable, these
circumstances are expected to be short-term in nature, as the
long-term demand for precision agriculture technology is expected
to grow considerably. Although the domestic ag market has started
out slow in 2019, Applied Technology expects to build upon the
revenue growth accomplished in the first quarter, as it remains
focused on developing innovative and market-leading technology and
expanding its international footprint.
Oil prices have remained strong since the start of 2019, and
although Engineered Films is more diversified and less dependent on
the energy market compared to recent years, the energy market still
plays an important role in the division's overall success. If
strength in oil prices is sustained, this is expected to favorably
impact the division's growth in the geomembrane market in fiscal
2020.
The Company has been monitoring the global trade environment and
tariff developments from both a supplier and customer perspective.
The Company believes that it has effectively managed it’s supply
chain with minimal impact to financial results. The Company will
continue to monitor the global trade environment and the related
impact of its uncertainty on grain prices and end-customer
sentiment.
Innovation and New Technology:The Company
significantly invests in research and development activities on a
recurring basis, with the majority of its research and development
investment being made in Applied Technology to drive new products
to market. In late fiscal 2019, Applied Technology released its
latest advancement in boom control, AutoBoom® XRT, into the
marketplace. AutoBoom® XRT technology uses advanced radar
sensor technology to maintain optimal spray height and help
maximize sprayer efficacy. This innovative new product is another
example of the division's commitment to optimize application
control technology. Sales of AutoBoom® XRT were strong in the
first quarter and are expected to continue to build throughout the
rest of this year and into the future. Sales of new products, such
as RS1™ and AutoBoom® XRT, enabled Applied Technology to grow
in a very challenging end-market in the first quarter.
Project Atlas:During the first quarter of
fiscal 2020, Engineered Films went live on the Company's new ERP
platform. Overall, the migration was successful, but the division
did experience a learning curve throughout the process. The Company
is now focused on Aerostar, the next division to go live on the new
ERP platform. Aerostar is expected to go live in the fourth quarter
of this year.
Fiscal 2020 Outlook:"Temporary conditions
impacting our Applied Technology division and short-term
operational challenges in our Engineered Films division held down
our first quarter results,” said Dan Rykhus, President and CEO.
“While unfortunate, we do not believe our first quarter performance
is indicative of our performance for the rest of the year. To the
contrary, we expect growth in both sales and operating income in
each division this fiscal year.
“I rarely comment on our performance relative to our plan, but
in this case, it is important for you to know that we delivered
according to our plan for first quarter earnings per share. We
fully expected the drop-off in hurricane recovery film sales in
Engineered Films and the corresponding impact this would have on
our operating profit. However, we did not plan for the floods,
power outages and the extraordinarily late spring season impacting
the ag market. Despite these unanticipated short-term challenges,
we performed to plan for the quarter, and we are on track for the
year.
"Applied Technology’s slower start to fiscal 2020 was directly
related to extremely challenging spring planting conditions and the
corresponding impacts this had on ag retailers. With that said, I
am very proud the division was able to endure these challenges and
still achieve modest revenue growth through leveraging its prior
year investment in Latin America and by continuing to introduce new
technologies to the marketplace. Core fundamentals remain strong
for Applied Technology, and the division continues to appropriately
focus on innovation and international expansion to drive market
share gains regardless of the end-market conditions they may
face.
"Engineered Films faced some unfortunate short-term operational
challenges during the first quarter, but these are temporary
situations. We fully expected some short-term impact to operational
efficiency as a result of going live on a new ERP platform.
Overall, this implementation has been very successful and we fully
expect to return to pre-go-live efficiency soon and to achieve even
stronger efficiencies over time. We expect the energy market to
remain strong this year, sales from Line 15 to increase throughout
the year, and for geomembrane installation revenues to remain
strong.
"Aerostar is capitalizing on its core product lines and
executing on its pipeline of contracts. The division is investing
heavily in new product innovations and advancing its flight
operation capabilities, and we are very optimistic about the
division's future business prospects. These investments have been
purposeful and are indicative of the future growth potential we see
for this division in its core stratospheric balloon and radar
product platforms. The overall profitability of the division
remains healthy despite increased investment, and we are very
pleased with the strategic direction of this division.
"Overall, the Company's long-term strategy remains sound, and
our strong position in attractive markets we have chosen, combined
with research and development investments, geographic market
expansion, and acquisitions, give me confidence in our ability to
perform well for the remainder of the year. We expect to grow in
our underlying businesses with strong margins, while making key
investments to enable our future growth. In order to meet our
objective of 10 percent annual earnings growth over the long term,
more aggressive investments to support our three divisions will
likely be needed. We are actively evaluating the best opportunities
for this increased resource allocation in a way that builds on the
success achieved in fiscal 2019, delivers strong results in fiscal
2020 and positions us well for the long term," concluded
Rykhus.
Regulation G:The information presented in this
earnings release regarding consolidated and Engineered Films' net
sales excluding the impact of hurricane recovery film sales, as
well as the information regarding consolidated and segment earnings
before interest, taxes, depreciation, and amortization (EBITDA), do
not conform to generally accepted accounting principles (GAAP) and
should not be construed as an alternative to the reported results
determined in accordance with GAAP. Additionally, management has
included this non-GAAP information to assist in understanding the
operating performance of the Company and its operating segments as
well as the comparability of results. The non-GAAP information
provided may not be consistent with the methodologies used by other
companies. All non-GAAP information is reconciled with reported
GAAP results in the tables below.
About Raven Industries, Inc.:Raven Industries
(NASDAQ: RAVN) is dedicated to providing innovative, high-value
products and solutions that solve great challenges throughout the
world. Raven is a leader in precision agriculture, high-performance
specialty films, and lighter-than-air technologies. Since 1956,
Raven has designed, produced, and delivered exceptional solutions,
earning the company a reputation for innovation, product quality,
high performance, and unmatched service. For more information,
visit http://ravenind.com.
Forward-Looking Statements:This news release
contains “forward-looking statements” within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, including
statements regarding the expectations, beliefs, intentions or
strategies regarding the future. The Company intends that all
forward-looking statements be subject to the safe harbor provisions
of the Private Securities Litigation Reform Act.
Generally, forward-looking statements can be identified by words
such as "may," "will," "plan," "believe," "expect," "intend,"
"anticipate," "potential," "should," "estimate," "predict,"
"project," "would," and similar expressions, which are generally
not historical in nature. However, the absence of these words or
similar expressions does not mean that a statement is not
forward-looking. All statements that address operating performance,
events or developments that we expect or anticipate will occur in
the future - including statements relating to our future operating
or financial performance or events, our strategy, goals, plans and
projections regarding our financial position, our liquidity and
capital resources, and our product development - are
forward-looking statements.
Management believes that these forward-looking statements are
reasonable as and when made. However, caution should be taken not
to place undue reliance on any such forward-looking statements,
because such statements speak only as of the date when made. Our
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. In addition,
forward-looking statements are subject to certain known risks, as
described in the Company’s 10K under Item 1A, and unknown risks and
uncertainties that may cause actual results to differ materially
from our Company’s historical experience and our present
expectations or projections.
|
|
Contact Information: |
|
Bo Larsen |
|
Investor Relations
Director |
|
Raven Industries, Inc. |
|
+1(605)-336-2750 |
|
Source: Raven Industries, Inc.
|
RAVEN INDUSTRIES, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(Dollars and shares in thousands, except earnings per
share) (Unaudited) |
|
|
Three Months Ended April 30, |
|
2019 |
|
2018 |
|
Fav (Un)Change |
Net sales |
$ |
98,178 |
|
|
$ |
111,129 |
|
|
(11.7 |
)% |
Cost of sales |
63,112 |
|
|
71,131 |
|
|
|
Gross profit |
35,066 |
|
|
39,998 |
|
|
(12.3 |
)% |
Gross profit percentage |
35.7 |
% |
|
36.0 |
% |
|
|
|
|
|
|
|
|
Research and development
expenses |
7,271 |
|
|
5,285 |
|
|
|
Selling, general, and
administrative expenses |
12,674 |
|
|
13,182 |
|
|
|
Operating income |
15,121 |
|
|
21,531 |
|
|
(29.8 |
)% |
Operating income percentage |
15.4 |
% |
|
19.4 |
% |
|
|
|
|
|
|
|
|
Other income (expense),
net |
(69 |
) |
|
5,679 |
|
|
|
Income before income taxes |
15,052 |
|
|
27,210 |
|
|
(44.7 |
)% |
|
|
|
|
|
|
Income tax expense |
1,842 |
|
|
5,063 |
|
|
|
Net income |
13,210 |
|
|
22,147 |
|
|
(40.4 |
)% |
|
|
|
|
|
|
Net income (loss) attributable
to noncontrolling interest |
— |
|
|
12 |
|
|
|
|
|
|
|
|
|
Net income attributable to Raven Industries, Inc. |
$ |
13,210 |
|
|
$ |
22,135 |
|
|
(40.3 |
)% |
|
|
|
|
|
|
Net income per common
share: |
|
|
|
|
|
- Basic |
$ |
0.37 |
|
|
$ |
0.62 |
|
|
(40.3 |
)% |
- Diluted |
$ |
0.36 |
|
|
$ |
0.61 |
|
|
(41.0 |
)% |
|
|
|
|
|
|
Weighted average common
shares: |
|
|
|
|
|
- Basic |
36,067 |
|
|
35,914 |
|
|
|
- Diluted |
36,393 |
|
|
36,381 |
|
|
|
|
|
|
|
|
|
|
|
RAVEN INDUSTRIES, INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(Dollars in thousands) (Unaudited) |
|
|
|
|
April 30 |
|
January 31 |
|
April 30 |
|
2019 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
61,370 |
|
|
$ |
65,787 |
|
|
$ |
51,317 |
|
Accounts receivable, net |
67,792 |
|
|
54,472 |
|
|
66,812 |
|
Inventories |
58,042 |
|
|
54,076 |
|
|
55,162 |
|
Other current assets |
7,263 |
|
|
8,736 |
|
|
4,483 |
|
Total current assets |
194,467 |
|
|
183,071 |
|
|
177,774 |
|
|
|
|
|
|
|
Property, plant and equipment, net |
105,236 |
|
|
106,615 |
|
|
107,037 |
|
Goodwill and amortizable intangibles, net |
66,823 |
|
|
67,235 |
|
|
56,344 |
|
Other assets |
7,624 |
|
|
3,324 |
|
|
3,947 |
|
TOTAL ASSETS |
$ |
374,150 |
|
|
$ |
360,245 |
|
|
$ |
345,102 |
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
Accounts payable |
$ |
16,179 |
|
|
$ |
8,272 |
|
|
$ |
14,714 |
|
Accrued and other liabilities |
22,276 |
|
|
24,781 |
|
|
21,249 |
|
Total current liabilities |
38,455 |
|
|
33,053 |
|
|
35,963 |
|
|
|
|
|
|
|
Other liabilities |
23,012 |
|
|
18,235 |
|
|
16,053 |
|
Shareholders' equity |
312,683 |
|
|
308,957 |
|
|
293,086 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
374,150 |
|
|
$ |
360,245 |
|
|
$ |
345,102 |
|
Net Working Capital and Net Working Capital
Percentage3 |
|
|
Accounts receivable, net |
$ |
67,792 |
|
|
$ |
54,472 |
|
|
$ |
66,812 |
|
Plus:
Inventories |
58,042 |
|
|
54,076 |
|
|
55,162 |
|
Less: Accounts
payable |
16,179 |
|
|
8,272 |
|
|
14,714 |
|
Net working
capital3 |
$ |
109,655 |
|
|
$ |
100,276 |
|
|
$ |
107,260 |
|
|
|
|
|
|
|
Annualized net
sales |
$ |
392,712 |
|
|
$ |
352,088 |
|
|
$ |
444,516 |
|
Net working
capital percentage3 |
27.9 |
% |
|
28.5 |
% |
|
24.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
RAVEN INDUSTRIES, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(Dollars in thousands) (Unaudited) |
|
|
|
|
Three Months Ended April 30, |
|
2019 |
|
2018 |
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net income |
$ |
13,210 |
|
|
$ |
22,147 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
4,082 |
|
|
3,683 |
|
Other operating activities, net |
(8,530 |
) |
|
(12,227 |
) |
Net cash provided by operating activities |
8,762 |
|
|
13,603 |
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Capital expenditures |
(1,570 |
) |
|
(4,164 |
) |
Proceeds from sale or maturity of investments |
— |
|
|
6,556 |
|
Purchases of investments |
(843 |
) |
|
(79 |
) |
Proceeds (disbursements) from sale of assets, settlement of
liabilities |
— |
|
|
832 |
|
Other investing activities, net |
(28 |
) |
|
40 |
|
Net cash (used in) provided by investing activities |
(2,441 |
) |
|
3,185 |
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
Dividends paid |
(4,682 |
) |
|
(4,658 |
) |
Payments for common shares repurchased |
(2,281 |
) |
|
— |
|
Payment of acquisition-related contingent liabilities |
(620 |
) |
|
(295 |
) |
Other financing activities, net |
(3,082 |
) |
|
(822 |
) |
Net cash used in financing activities |
(10,665 |
) |
|
(5,775 |
) |
|
|
|
|
Effect of exchange rate
changes on cash |
(73 |
) |
|
(231 |
) |
|
|
|
|
Net increase (decrease) in
cash and cash equivalents |
(4,417 |
) |
|
10,782 |
|
Cash and cash equivalents at
beginning of period |
65,787 |
|
|
40,535 |
|
Cash and cash equivalents at
end of period |
$ |
61,370 |
|
|
$ |
51,317 |
|
|
|
|
|
|
|
|
|
|
|
RAVEN INDUSTRIES, INC. |
|
SALES AND OPERATING INCOME BY SEGMENT |
|
(Dollars in thousands) (Unaudited) |
|
|
|
|
Three Months Ended April 30, |
|
|
2019 |
|
2018 |
|
Fav (Un)Change |
Net sales |
|
|
|
|
|
Applied Technology |
$ |
41,725 |
|
|
$ |
40,430 |
|
|
3.2 |
% |
Engineered Films |
44,292 |
|
|
59,992 |
|
|
(26.2 |
)% |
Aerostar |
12,190 |
|
|
10,901 |
|
|
11.8 |
% |
Intersegment eliminations |
(29 |
) |
|
(194 |
) |
|
|
Consolidated net sales |
$ |
98,178 |
|
|
$ |
111,129 |
|
|
(11.7 |
)% |
|
|
|
|
|
|
Operating income |
|
|
|
|
|
Applied Technology |
$ |
13,236 |
|
|
$ |
15,948 |
|
|
(17.0 |
)% |
Engineered Films |
6,363 |
|
|
13,196 |
|
|
(51.8 |
)% |
Aerostar |
1,996 |
|
|
2,805 |
|
|
(28.8 |
)% |
Intersegment eliminations |
1 |
|
|
(15 |
) |
|
|
Total segment income |
$ |
21,596 |
|
|
$ |
31,934 |
|
|
(32.4 |
)% |
Corporate expenses |
(6,475 |
) |
|
(10,403 |
) |
|
37.8 |
% |
Consolidated operating income |
$ |
15,121 |
|
|
$ |
21,531 |
|
|
(29.8 |
)% |
|
|
|
|
|
|
Operating income
percentages |
|
|
|
|
|
Applied Technology |
31.7 |
% |
|
39.4 |
% |
|
|
(770)bps |
|
Engineered Films |
14.4 |
% |
|
22.0 |
% |
|
|
(760)bps |
|
Aerostar |
16.4 |
% |
|
25.7 |
% |
|
|
(930)bps |
|
Consolidated operating income |
15.4 |
% |
|
19.4 |
% |
|
|
(400)bps |
|
|
|
|
|
|
|
|
RAVEN INDUSTRIES, INC. |
EBITDA REGULATION G RECONCILIATION4 |
(Dollars in thousands) (Unaudited) |
|
|
Three Months Ended April 30, |
|
|
|
|
|
Fav (Un) |
Segments |
2019 |
|
2018 |
|
Change |
Applied
Technology |
|
|
|
|
|
Reported operating income |
$ |
13,236 |
|
|
$ |
15,948 |
|
|
(17.0 |
)% |
Plus: Depreciation and
amortization |
1,028 |
|
|
750 |
|
|
37.1 |
% |
ATD EBITDA |
$ |
14,264 |
|
|
$ |
16,698 |
|
|
(14.6 |
)% |
ATD EBITDA % of Net Sales |
34.2 |
% |
|
41.3 |
% |
|
|
|
|
|
|
|
|
Engineered
Films |
|
|
|
|
|
Reported operating income |
$ |
6,363 |
|
|
$ |
13,196 |
|
|
(51.8 |
)% |
Plus: Depreciation and
amortization |
2,297 |
|
|
2,321 |
|
|
(1.0 |
)% |
EFD EBITDA |
$ |
8,660 |
|
|
$ |
15,517 |
|
|
(44.2 |
)% |
EFD EBITDA % of Net Sales |
19.6 |
% |
|
25.9 |
% |
|
|
|
|
|
|
|
|
Aerostar |
|
|
|
|
|
Reported operating income |
$ |
1,996 |
|
|
$ |
2,805 |
|
|
(28.8 |
)% |
Plus: Depreciation and
amortization |
221 |
|
|
219 |
|
|
0.9 |
% |
Aerostar EBITDA |
$ |
2,217 |
|
|
$ |
3,024 |
|
|
(26.7 |
)% |
Aerostar EBITDA % of Net
Sales |
18.2 |
% |
|
27.7 |
% |
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
Net Income attributable to
Raven Industries |
$ |
13,210 |
|
|
$ |
22,135 |
|
|
(40.3 |
)% |
Interest (income) expense,
net |
(230 |
) |
|
(37 |
) |
|
|
Income tax expense |
1,842 |
|
|
5,063 |
|
|
|
Plus: Depreciation and
amortization |
4,082 |
|
|
3,683 |
|
|
|
Consolidated EBITDA |
$ |
18,904 |
|
|
$ |
30,844 |
|
|
(38.7 |
)% |
Consolidated EBITDA % of Net
Sales |
19.3 |
% |
|
27.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
RAVEN INDUSTRIES, INC. |
NET SALES EXCLUDING HURRICANE RECOVERY FILM SALES
REGULATION G RECONCILIATION1 & 2 |
(Dollars in thousands) (Unaudited) |
|
|
Three Months Ended April 30, |
|
|
|
|
|
Fav (Un) |
|
2019 |
|
2018 |
|
Change |
Engineered
Films |
|
|
|
|
|
Reported Net Sales |
$ |
44,292 |
|
|
$ |
59,992 |
|
|
(26.2 |
)% |
Less: Hurricane Recovery Film
Sales |
17 |
|
|
8,919 |
|
|
(99.8 |
)% |
Net Sales, Excluding Hurricane
Recovery Film Sales2 |
$ |
44,275 |
|
|
$ |
51,073 |
|
|
(13.3 |
)% |
|
|
|
|
|
|
Consolidated
Raven |
|
|
|
|
|
Reported Net Sales |
$ |
98,178 |
|
|
$ |
111,129 |
|
|
(11.7 |
)% |
Less: Hurricane Recovery Film
Sales |
17 |
|
|
8,919 |
|
|
(99.8 |
)% |
Net Sales, Excluding Hurricane
Recovery Film Sales1 |
$ |
98,161 |
|
|
$ |
102,210 |
|
|
(4.0 |
)% |
|
|
|
|
|
|
____________________________
1 Consolidated net sales excluding the impact of hurricane
recovery film sales is a non-GAAP financial measure defined as
consolidated net sales less hurricane recovery film sales.
2 Engineered Films' net sales excluding the impact of hurricane
recovery film sales is a non-GAAP financial measure defined as
Engineered Films' net sales less hurricane recovery film sales.
3 Net working capital is defined as accounts receivable, (net)
plus inventories less accounts payable. Net working capital
percentage is defined as net working capital divided by four times
quarterly sales for each respective period.
4 EBITDA is a non-GAAP financial measure defined on a
consolidated basis as net income attributable to Raven Industries,
Inc., plus income taxes, plus depreciation and amortization
expense, plus interest (income) expense, (net). On a segment basis,
it is defined as operating income plus depreciation expense and
amortization expense. EBITDA margin is defined as EBITDA divided by
net sales.
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