Raven Industries Unveils Details of Raven Autonomy™ & Raven Composites™ at Investor Day
November 05 2019 - 9:00AM
Raven Industries, Inc. (the
Company; NASDAQ: RAVN) will host its 2019
Investor Day today in New York City. The event will provide an
overview of the Company’s strategic plan, with specific focus on
two strategic platforms for growth: Raven Autonomy™ and Raven
Composites™. The event will be hosted by Dan Rykhus, President and
Chief Executive Officer, and Steven Brazones, Vice President and
Chief Financial Officer.
The strategic plan focuses on driving a step change in growth
over the long term by supplementing growth within the Company’s
existing core businesses, with a significantly increased level of
investment focused on Raven Autonomy™ and Raven Composites™. This
strategy will be implemented through increased investment in
research and development, acquisitions and partnerships, capital
expenditures and business development activities in order to
execute our specific initiatives and strategies for the advancement
of Raven Autonomy™ and Raven Composites™. Given the significance of
the planned investments, it is expected that margins will be lower
in the near term while Raven Autonomy™ and Raven Composites™ are
established and sales ramp. This is especially true in the next two
fiscal years (FY 2021 and FY 2022). These investments are expected
to drive substantial growth in sales and earnings over the long
term, beginning in FY 2023.
Highlights of the strategic plan include:
- Expectations over the next five years (FY 2021 – FY 2025):
- Anticipate approximately $20M of incremental R&D expense
per year over the next five years, approximately $15M of which is
expected to be focused on the advancement of Raven Autonomy™
- Anticipate approximately $2M of incremental selling expense in
FY 2021 to support the commercialization of Raven Autonomy™
- Expect incremental amortization of approximately $5M per year
from the recently announced acquisition of Smart Ag® and majority
ownership in DOT™
- Anticipate a threefold increase in total investment made across
research and development (R&D), acquisitions and capital
expenditures over the next five years, from $250M to $875M
- Expectations over the long term (average expectations over the
long term after FY 2025):
- Generate a compound annual growth rate of 10% in both net sales
and earnings
- Achieve operating margins of:
- 30 – 32% for Applied Technology
- 18 – 20% for Engineered Films, and
- 15 – 20% for Aerostar
A live audio webcast of the event will begin at 10:30 a.m. ET on
Tuesday, November 5, 2019. To join the conference call, please dial
+1 (866) 393-0676 [international callers please dial +1 (253)
237-1149] with an audience passcode of 9248847. Alternatively, the
call, along with presentation materials, may be accessed through
the Investor Relations section of the company’s website at
http://investors.ravenind.com. For those unable to listen live, an
audio replay of the event will remain archived in the Investor
Relations section of the Company’s website for approximately 90
days following the event.
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 StatementsThis
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 10-K 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 InformationBo
LarsenDirector of Investor RelationsRaven Industries, Inc.+1 (605)
336-2750
Source: Raven Industries
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