Strategic Growth Platforms Launched: Raven
Autonomy™, Raven Composites™
Raven Industries, Inc. (the Company; NASDAQ:RAVN) today
reported financial results for the fourth quarter that ended
January 31, 2020.
Fourth Quarter Fiscal 2020 Noteworthy Items:
- Applied Technology acquired Smart Ag, Inc. (Smart Ag®) and a
majority ownership in DOT Technology Corp. (DOT®) in support of the
Raven Autonomy™ strategic platform for growth;
- Applied Technology's net sales increased 13 percent
year-over-year, despite broad market weakness, on higher sales
volume in both the U.S. and Latin America;
- Applied Technology's operating income decreased 16 percent
year-over-year in the fourth quarter, which included $2.8 million
of expenses related to Raven Autonomy™;
- Engineered Films' net sales decreased 20 percent
year-over-year, partially driven by a $4.0 million decline in
hurricane recovery film sales;
- Engineered Films launched fabrication operations on the East
Coast of the U.S. to expand its serviceable markets for
geomembrane, energy and construction products;
- Aerostar's net sales increased 42 percent year-over-year driven
by higher sales of stratospheric platforms and technical services
and the delivery of $2 million in aerostats;
- Aerostar successfully went live on the Company's new enterprise
resource planning (ERP) platform, joining Engineered Films on the
same platform.
Fiscal 2020 Noteworthy Items:
- Aerostar's net sales and division profit increased 7 percent
and 5 percent, respectively, driven by strength in products and
technical services related to stratospheric platforms and radar
systems;
- Aerostar was awarded two aerostat contracts totaling $10
million, $8 million of which is expected to be realized in fiscal
2021;
- Despite end-market challenges in North America, sales in
Applied Technology grew year-over-year, driven by sales of new
products and growth in international markets;
- Applied Technology’s investment in its Latin American
operations drove a 40 percent increase in net sales year-over-year
in this key region;
- Applied Technology released its best-in-class visual guidance
technology, VSN™;
- The Company launched THRIVE, a business leadership program
designed to invest in team member development and support future
growth.
Fourth Quarter Results:
Consolidated net sales for the fourth quarter of fiscal 2020
were $85.8 million, down 2.6 percent versus the fourth quarter of
fiscal 2019. The year-over-year decline was driven by Engineered
Films. The division experienced lower sales demand in the
geomembrane market (specifically in the energy sub-market) in
addition to a $4.0 million decrease in hurricane recovery film
sales. The decline in Engineered Films was mostly offset by growth
in Applied Technology and Aerostar. Net sales for those two
divisions grew 12.5 percent and 42.3 percent, respectively, versus
the fourth quarter of fiscal 2019.
Consolidated operating income for the fourth quarter of fiscal
2020 was $2.9 million versus operating income of $3.4 million in
the fourth quarter of fiscal 2019, decreasing 13.2 percent
year-over-year. Included in the results for the fourth quarter of
fiscal 2020 was $3.2 million of Raven Autonomy™ related expenses.
The change in consolidated operating income was driven by lower
sales and corresponding negative operating leverage in Engineered
Films as well as Raven Autonomy™ related expenses. These impacts
were partially offset by increased sales volume and improved
profitability within Aerostar and Applied Technology's underlying
businesses.
Net income attributable to Raven for the fourth quarter of
fiscal 2020 was $3.3 million, or $0.09 per diluted share, versus
$3.0 million, or $0.08 per diluted share, in last year's fourth
quarter. Raven Autonomy™ decreased net income attributable to Raven
by $2.3 million, or $0.06 per diluted share, in the fourth quarter
of fiscal 2020. Tax expense in the fourth quarter decreased
primarily due to higher research and development tax credits, lower
pre-tax income, and timing of discrete tax items.
Supplemental Financial Information:
As part of the Investor Day event held during the fourth quarter
of fiscal 2020, the Company updated its long-term financial
guidance, which includes an expected decline in near-term operating
margin for Applied Technology and consolidated Raven. This
temporary decrease will be driven by the Company's planned
investment to advance Raven Autonomy™, one of the Company's
strategic platforms for growth.
The investment in Raven Autonomy™ began in the fourth quarter of
fiscal 2020 through the acquisition of Smart Ag and a majority
ownership in DOT, both early-stage pre-revenue technology
companies. The investment will accelerate further throughout fiscal
2021 as these technologies are fully developed, integrated and
commercialized. The investment will largely be focused on research
and development but will also include selling and administrative
activities, all of which are recognized as expenses in the period
incurred. Additionally, there will be amortization expense of the
acquired intangibles when commercialization begins.
The Company plans to provide supplemental financial information
to investors during the investment period in order to provide
clarity on Applied Technology's historical business. The financial
impact of Raven Autonomy™ in the fourth quarter of fiscal 2020 was
as follows:
(dollars in millions, except
per share amounts)
Increase (Decrease)
Net sales
$
—
Gross profit
—
Applied Technology Operating income
(2.8
)
Consolidated Operating income
(3.2
)
Consolidated EBITDA2
(2.6
)
Net income attributable to Raven
Industries, Inc.
(2.3
)
Net income per common share - Diluted
$
(0.06
)
Applied Technology Division:
Net sales for Applied Technology in the fourth quarter of fiscal
2020 were $32.9 million, up 12.5 percent year-over-year. Despite
the continued ag market challenges in North America caused by the
historically wet spring, the division achieved year-over-year
growth led by the strength of its product portfolio, which drove
higher sales volume in both the U.S. and Latin America.
Division operating income in the fourth quarter of fiscal 2020
was $5.6 million, down $1.0 million or 15.5 percent versus the
fourth quarter of fiscal 2019. This year's fourth quarter results
included $2.8 million in research and development and other Raven
Autonomy™ related expenses. In Applied Technology's underlying
business, the division achieved growth in sales volume and produced
strong incremental margins.
Engineered Films Division:
Net sales for Engineered Films in the fourth quarter of fiscal
2020 were $39.5 million, down $10.0 million or 20.1 percent
year-over-year. The year-over-year decline was led by lower sales
in the geomembrane market (specifically in the energy sub-market),
due to weak end-market demand. In addition, the year-over-year
sales development was negatively impacted by a $4.0 million
decrease in hurricane recovery film sales, which given their nature
are infrequent.
Division operating income in the fourth quarter of fiscal 2020
was $3.7 million, down $2.8 million or 42.7 percent versus the
fourth quarter of fiscal 2019. Lower sales volume and the resulting
negative operating leverage drove the year-over-year decline in
division operating income.
Aerostar Division:
Net sales for Aerostar in the fourth quarter of fiscal 2020 were
$13.4 million, up $4.0 million or 42.3 percent versus the fourth
quarter of fiscal 2019. This increase was led by sales growth in
the division's stratospheric platforms and technical services. In
addition, the division realized $2.3 million in aerostat sales
related to the recently awarded aerostat contracts. The remaining
aerostat contract award of $8 million is expected to be realized in
fiscal 2021. Aerostat sales vary significantly from year-to-year,
as customer demand for such products is inherently inconsistent.
The division's aerostat product line is very competitive and
generates strong margins for the division. Aerostats are core to
the division, and Aerostar will continue to supply these systems
when there is demand.
Division operating income in the fourth quarter of fiscal 2020
was $1.2 million, up $3.5 million versus the fourth quarter of
fiscal 2019. Increased sales volume of stratospheric platforms and
aerostats drove the year-over-year increase in operating income.
When analyzing the performance of Aerostar, it is beneficial to
evaluate the division over a longer period of time due to the
fluctuation in timing of contracts. Year-over-year, Aerostar
generated strong growth in both net sales and operating income
throughout fiscal 2020, and the division has achieved a compound
annual growth rate of nearly 17 percent on revenue over the past
three fiscal years.
Balance Sheet and Cash Flow:
At the end of the fourth quarter of fiscal 2020, cash and cash
equivalents totaled $20.7 million, decreasing $56.4 million from
the prior quarter. The sequential decrease in cash was primarily
driven by the acquisition of Smart Ag and a majority ownership in
DOT.
Fiscal Year 2020 Results:
Consolidated net sales for fiscal 2020 were $382.5 million, down
5.9 percent versus fiscal 2019. Net sales growth in both Aerostar
and Applied Technology was offset by a decline in Engineered Films.
In Engineered Films, the decrease in year-over-year net sales was
driven by lower demand in its geomembrane market, in addition to a
$12.6 million decline in hurricane recovery film sales.
Consolidated operating income for fiscal 2020 was $39.9 million,
down 27.6 percent, versus $55.1 million in fiscal 2019. Included in
the results for fiscal 2020 was $3.2 million of Raven Autonomy™
related expenses. The year-over-year decline was principally driven
by lower sales volume and corresponding negative operating leverage
in Engineered Films, Raven Autonomy™ related expenses, and
increased investment in research and development expenses in
Applied Technology. Included in consolidated operating income for
both fiscal 2019 and fiscal 2020 were Project Atlas related
expenses, with fiscal 2019 also including an expense associated
with a gift to South Dakota State University (see figures
below).
Net income attributable to Raven for fiscal 2020 was $35.2
million, or $0.97 per diluted share, versus net income attributable
to Raven of $51.8 million, or $1.42 per diluted share, in fiscal
2019.
In fiscal 2020, net income attributable to Raven included the
following significant items:
- The investment in Raven Autonomy™ of $3.2 million ($2.3 million
after-tax, or $0.06 per diluted share);
- Project Atlas related expenses of $2.7 million ($2.1 million
after-tax, or $0.06 per diluted share).
In fiscal 2019, net income attributable to Raven included the
following significant items:
- A non-operating gain on the sale of the Company's ownership
interest in SST of $5.8 million ($4.6 million after-tax, or $0.13
per diluted share);
- An expense associated with a gift to South Dakota State
University of $4.5 million ($3.6 million after-tax, or $0.10 per
diluted share);
- Project Atlas related expenses of $4.0 million ($3.2 million
after-tax, or $0.09 per diluted share).
Strategic Platforms for Growth:
During the fourth quarter, the Company announced details for its
two new strategic platforms for growth: Raven Autonomy™ and Raven
Composites™. By building upon expertise in machine control
technology and reinforced materials, the Company is investing from
a position of strength to execute and spur a step-change in
long-term earnings growth. As a result of these initiatives, the
combined investment in research and development, acquisition
activity, and capital expenditures will increase significantly over
the next five years to drive a step-change in long-term growth.
However, given the current global economic uncertainties, the
Company is going to take a more measured approach in fiscal year
2021. As a result, Raven Autonomy™ will be prioritized for
investment, while investment in Raven Composites™ will be more
modest and likely not include an acquisition in the next nine
months.
Raven Autonomy™ is expected to propel Applied Technology to
become an industry leader in autonomous agricultural solutions. The
Company began executing on its plan in the fourth quarter of fiscal
2020 through the acquisition of Smart Ag and by acquiring a
majority ownership in DOT. As both companies were pre-revenue and
in the technological development stage, Raven Autonomy™ did not
generate sales in fiscal 2020. The Company plans to commercialize
its first Raven Autonomy™ products by bringing the Dot system and
AutoCart® to the market in fiscal 2021. Initial revenues are
expected to be modest in the first year of commercialization. The
Dot system is the unique U-shaped platform designed to autonomously
handle a large variety of agriculture implements, and AutoCart
allows users to operate a driverless tractor and grain cart from
the cab of the combine. To support these commercialization efforts
and further development of autonomous solutions for agriculture,
Applied Technology expects to invest approximately $15 million in
research and development and selling activities. The division
previously planned to invest approximately $20 million in such
activities in fiscal 2021 but has appropriately tempered its plans
in light of the current economic environment. The division will
also recognize $3 million in acquisition related amortization
expense in fiscal 2021.
Raven Composites™ is expected to propel Engineered Films to
become an industry leader in the reinforced composites market. In
fiscal 2021, the Company plans to make modest investments in Raven
Composites™ through investments in capital equipment to advance
greenfield operations. An aggressive acquisition strategy, with a
cadence of at least one acquisition a year, was envisioned for
Raven Composites™ when this strategic platform was launched in
November 2019. While the Company fully expects to execute on
acquisitions to spring-board growth in the composites market, these
will likely be delayed until fiscal year 2022 given the
unprecedented uncertainties currently impacting the global economy.
As a result of the planned investments, the Company is anticipating
initial revenues from Raven Composites™ to begin in the second half
of fiscal year 2021. Initial revenues will be modest and targeted
in the construction, industrial and transportation markets.
Fiscal 2021 Outlook:
"While we are extremely excited about our long-term future, we
cannot ignore the global economic uncertainties brought about by
recent world events," said Dan Rykhus, President and CEO. "This is
generating concerns from many market participants, and the
likelihood of a global economic slowdown for the next several
months is high. How extensive and how long this will persist are
indeterminable, but I am very confident in our ability to respond
to the challenges this is creating. We are in a very strong
relative position. We serve diverse end-markets, we have strong
competitive positions, we generate robust operating margins, and we
have a solid balance sheet and cash flow profile. We will
effectively manage the short-term uncertainties and financial
performance, while continuing to fund our strategic platforms for
growth, although not nearly as aggressively as we planned prior to
the recent events.
"With respect to fiscal 2020, we are pleased with the results
achieved given the unique market challenges that presented
themselves. Market introduction of autonomous agricultural
solutions in Raven Autonomy™, greenfield investments in Raven
Composites™, and continued success in Aerostar are focused targets
for fiscal 2021.
“Building on the acquisition of Smart Ag and a majority
ownership in DOT, Applied Technology is moving towards becoming a
market leader in autonomous agricultural solutions in fiscal 2021.
We are making significant investments to commercialize autonomous
agricultural solutions, while also continuing to release innovative
precision ag products that solve challenges for our ag retailer and
OEM partners. Investments in Raven Autonomy™ will negatively impact
profits and margins in fiscal 2021; however, our underlying
historical business in Applied Technology is strong. While the
global economic environment will impact the ag market, the
underlying historical business has a very strong product offering,
which generates compelling returns for its end customers.
"In Engineered Films, we are focused on maximizing the returns
on past investments given weaker anticipated end-market demand. We
expect to see continued challenges in our geomembrane market
(specifically in the energy sub-market), as recent global economic
developments have significantly impacted oil prices and will drive
reductions in domestic drilling activities. We believe the
division's diverse market exposure will help insulate it from
certain market dynamics, and the division is prepared for
challenging end-market conditions. During fiscal 2021, we plan to
make progress on the execution of our Raven Composites™ strategy
through greenfield operations as we leverage our reinforced
materials expertise to deliver thinner, lighter, and stronger
composites to our customers. By developing Raven Composites™ and
realizing opportunities in the industrial market, Engineered Films
is expecting to set the foundation for stronger growth over the
long-term.
"I am very pleased with Aerostar's financial performance and
execution on its core stratospheric platforms and radar systems.
The division will be executing on its noteworthy government
contract wins while further advancing its technical services and
integrated hardware and software solutions. The division expects to
build on this year's strong performance in fiscal year 2021.
"This will be a very interesting and challenging year for Raven.
While we are in such a unique position to capitalize on significant
opportunities in the marketplace by advancing Raven Autonomy™ and
Raven Composites™, we are not going to be as bold as we would
prefer in fiscal 2021. We face great uncertainty and we must be
prudent. We will be emphasizing the following four strategic
priorities: upholding the Raven Way in all the decisions we make,
emphasizing cash flow and liquidity from a position of strength,
protecting the core business and our strong market positions, and
continuing to invest in Raven Autonomy™, a strategic platform with
tremendous long-term growth potential. We are a strong Company with
a bright future, and we will prudently monitor and respond to
whatever short-to-intermediate term economic conditions we face to
ensure continued long-term success," concluded Rykhus.
Regulation G:
The information presented in this earnings release 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.
RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(Dollars and shares in
thousands, except earnings per share) (Unaudited)
Three Months Ended January
31,
Twelve Months Ended January
31,
2020
2019
Fav (Un) Change
2020
2019
Fav (Un) Change
Net sales
$
85,761
$
88,022
(2.6
)
%
$
382,530
$
406,668
(5.9
)
%
Cost of sales
58,722
62,732
258,783
274,119
Gross profit
27,039
25,290
6.9
%
123,747
132,549
(6.6
)
%
Gross profit percentage
31.5
%
28.7
%
32.3
%
32.6
%
Research and development expenses
9,558
8,260
31,558
26,174
Selling, general, and administrative
expenses
14,565
13,669
52,250
51,242
Operating income
2,916
3,361
(13.2
)
%
39,939
55,133
(27.6
)
%
Operating income percentage
3.4
%
3.8
%
10.4
%
13.6
%
Other income (expense), net
(303
)
223
95
6,437
Income before income taxes
2,613
3,584
(27.1
)
%
40,034
61,570
(35.0
)
%
Income tax expense
(91
)
635
5,421
9,697
Net income
2,704
2,949
(8.3
)
%
34,613
51,873
(33.3
)
%
Net income (loss) attributable to the
noncontrolling and redeemable noncontrolling interest
(582
)
(1
)
(583
)
79
Net income attributable to Raven
Industries, Inc.
$
3,286
$
2,950
11.4
%
$
35,196
$
51,794
(32.0
)
%
Net income per common share:
- Basic
$
0.09
$
0.08
12.5
%
$
0.98
$
1.44
(31.9
)
%
- Diluted
$
0.09
$
0.08
12.5
%
$
0.97
$
1.42
(31.7
)
%
Weighted average common shares:
- Basic
35,893
36,061
35,984
36,007
- Diluted
36,099
36,433
36,216
36,439
RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Dollars in thousands)
(Unaudited)
January 31
January 31
2020
2019
ASSETS
Cash and cash equivalents
$
20,707
$
65,787
Accounts receivable, net
62,552
54,472
Inventories, net
53,899
54,076
Other current assets
5,436
8,736
Total current assets
142,594
183,071
Property, plant and equipment, net
100,850
106,615
Goodwill
106,509
50,942
Intangible assets, net
46,217
16,293
Other assets
7,087
3,324
TOTAL ASSETS
$
403,257
$
360,245
LIABILITIES AND SHAREHOLDERS'
EQUITY
Accounts payable
$
14,893
$
8,272
Accrued and other liabilities
23,030
24,781
Total current liabilities
37,923
33,053
Long-term borrowings
225
—
Other liabilities
29,161
18,235
Total liabilities
67,309
51,288
Redeemable noncontrolling interest
21,302
—
Shareholders' equity
314,646
308,957
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
$
403,257
$
360,245
Net Working Capital and Net
Working Capital Percentage1
Accounts receivable, net
$
62,552
$
54,472
Plus: Inventories, net
53,899
54,076
Less: Accounts payable
14,893
8,272
Net working capital1
$
101,558
$
100,276
Annualized net sales
$
343,044
$
352,088
Net working capital percentage1
29.6
%
28.5
%
RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Twelve Months Ended January
31,
2020
2019
Cash flows from operating activities:
Net income
$
34,613
$
51,873
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
16,241
15,123
Other operating activities, net
4,018
(1,044)
Net cash provided by operating
activities
54,872
65,952
Cash flows from investing activities:
Capital expenditures
(8,560)
(14,127)
Payments related to business acquisitions,
net of cash acquired
(53,317)
(7,671)
Proceeds from sale or maturities of
investments
1,170
7,334
Purchases of investments
(1,118)
(745)
Proceeds from sale of assets
3,459
832
Other investing activities, net
(243)
(2,067)
Net cash used in investing activities
(58,609)
(16,444)
Cash flows from financing activities:
Dividends paid
(18,650)
(18,753)
Payments for common shares repurchased
(10,781)
—
Proceeds from borrowings
33,593
—
Payment of debt
(39,762)
—
Payment of acquisition-related contingent
liabilities
(1,306)
(1,324)
Other financing activities, net
(3,981)
(3,678)
Net cash used in financing activities
(40,887)
(23,755)
Effect of exchange rate changes on
cash
(456)
(501)
Net increase (decrease) in cash and cash
equivalents
(45,080)
25,252
Cash and cash equivalents at beginning of
period
65,787
40,535
Cash and cash equivalents at end of
period
$
20,707
$
65,787
RAVEN INDUSTRIES, INC.
SALES AND OPERATING INCOME BY
SEGMENT
(Dollars in thousands)
(Unaudited)
Three Months Ended January
31,
Twelve Months Ended January
31,
2020
2019
Fav (Un) Change
2020
2019
Fav (Un) Change
Net sales
Applied Technology
$
32,864
$
29,217
12.5
%
$
130,460
$
129,749
0.5
%
Engineered Films
39,505
49,468
(20.1
)
%
197,719
226,574
(12.7
)
%
Aerostar
13,403
9,418
42.3
%
54,443
50,867
7.0
%
Intersegment eliminations
(11
)
(81
)
(92
)
(522
)
Consolidated net sales
$
85,761
$
88,022
(2.6
)
%
$
382,530
$
406,668
(5.9
)
%
Operating income
Applied Technology
$
5,552
$
6,571
(15.5
)
%
$
30,672
$
39,044
(21.4
)
%
Engineered Films
3,708
6,473
(42.7
)
%
28,695
39,714
(27.7
)
%
Aerostar
1,170
(2,300
)
150.9
%
8,597
8,179
5.1
%
Intersegment eliminations
10
(2
)
—
(35
)
Total segment income
$
10,440
$
10,742
(2.8
)
%
$
67,964
$
86,902
(21.8
)
%
Corporate expenses
(7,524
)
(7,381
)
(1.9
)
%
(28,025
)
(31,769
)
11.8
%
Consolidated operating income
$
2,916
$
3,361
(13.2
)
%
$
39,939
$
55,133
(27.6
)
%
Operating income percentages
Applied Technology
16.9
%
22.5
%
(560)bps
23.5
%
30.1
%
(660)bps
Engineered Films
9.4
%
13.1
%
(370)bps
14.5
%
17.5
%
(300)bps
Aerostar
8.7
%
(24.4
)
%
3310bps
15.8
%
16.1
%
(30)bps
Consolidated operating income
3.4
%
3.8
%
(40)bps
10.4
%
13.6
%
(320)bps
RAVEN INDUSTRIES, INC.
EBITDA REGULATION G
RECONCILIATION2
(Dollars in thousands)
(Unaudited)
Three Months Ended January
31,
Twelve Months Ended January
31,
Fav (Un)
Fav (Un)
2020
2019
Change
2020
2019
Change
Applied Technology
Reported Operating income
$
5,552
$
6,571
(15.5)
%
$
30,672
$
39,044
(21.4)
%
Plus: Depreciation and amortization
1,039
1,015
2.4
%
3,995
3,433
16.4
%
ATD EBITDA
$
6,591
$
7,586
(13.1)
%
$
34,667
$
42,477
(18.4)
%
ATD EBITDA % of Net Sales
20.1
%
26.0
%
26.7
%
32.7
%
Engineered Films
Reported Operating income
$
3,708
$
6,473
(42.7)
%
$
28,695
$
39,714
(27.7)
%
Plus: Depreciation and amortization
2,397
2,222
7.9
%
9,518
9,149
4.0
%
EFD EBITDA
$
6,105
$
8,695
(29.8)
%
$
38,213
$
48,863
(21.8)
%
EFD EBITDA % of Net Sales
15.5
%
17.6
%
19.3
%
21.6
%
Aerostar
Reported Operating income
$
1,170
$
(2,300)
150.9
%
$
8,597
$
8,179
5.1
%
Plus: Depreciation and amortization
253
229
10.5
%
933
891
4.7
%
Aerostar EBITDA
$
1,423
$
(2,071)
168.7
%
$
9,530
$
9,070
5.1
%
Aerostar EBITDA % of Net Sales
10.6
%
(22.0)
%
17.6
%
17.8
%
Consolidated
Net income attributable to Raven
Industries Inc.
$
3,286
$
2,950
11.4
%
$
35,196
$
51,794
(32.0)
%
Interest (income) expense, net
35
(182)
(609)
(372)
Income tax expense
(91)
635
5,421
9,697
Plus: Depreciation and amortization
4,117
3,850
16,241
15,123
Consolidated EBITDA
$
7,347
$
7,253
1.3
%
$
56,249
$
76,242
(26.2)
%
Consolidated EBITDA % of Net Sales
8.6
%
8.2
%
14.7
%
18.7
%
____________________________
1 Net working capital is defined as accounts receivable, (net)
plus inventories, (net) less accounts payable. Net working capital
percentage is defined as net working capital divided by four times
quarterly sales for each respective period.
2 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200323005675/en/
Jared Stearns, Investor Relations Manager Raven Industries +1
(605) 336-2750 irinfo@ravenind.com
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