Raven Industries, Inc. (the Company) (NASDAQ:
RAVN) today reported financial results for the third
quarter that ended October 31, 2018.
Noteworthy Items:
- Consolidated net sales increased 3 percent year-over-year on a
reported basis, and more than 11 percent year-over-year when
excluding the impact of abnormally high hurricane recovery film
sales;1
- Applied Technology achieved net sales growth of 18 percent
year-over-year driven by strong growth from new products and market
share gains;
- Applied Technology expanded division profit margin nearly 500
basis points year-over-year primarily due to strong incremental
margins on volume growth;
- Engineered Films' profit margin declined from 26 percent to 16
percent year-over-year as a result of significantly lower hurricane
recovery film sales and cost overruns on a large installation
project;
- Aerostar's strong financial performance continued in the third
quarter, with sales increasing more than 50 percent and division
operating income increasing nearly three-fold versus the prior
year;
- Aerostar was awarded a new five-year $36 million radar systems
contract during the third quarter, positioning this strategic
product line for strong future growth.
Third Quarter Results:Net sales for the third
quarter of fiscal 2019 were $104.8 million, up 3.4 percent versus
the third quarter of fiscal 2018. Hurricane recovery film sales
were $8.4 million in the third quarter of last year compared to
$1.5 million in the third quarter of this year. Excluding sales of
hurricane recovery film, net sales in the third quarter increased
$10.4 million or 11.2 percent year-over-year.1 Both Applied
Technology and Aerostar achieved strong double-digit sales growth
during the third quarter on market share gains and new product
sales. Engineered Films' sales declined in the third quarter,
primarily as a result of the significant decline in hurricane
recovery film sales.
Operating income for the third quarter of fiscal 2019 was $13.6
million versus operating income of $17.8 million in the third
quarter of fiscal 2018, declining 23.7 percent year-over-year. As
anticipated, operating income was adversely impacted by the
significant decline in hurricane recovery film sales versus the
prior year. In addition, spending for Project Atlas, the Company's
new enterprise resource planning platform, increased $0.8 million
versus the prior year in support of the go-live for Engineered
Films at the beginning of fiscal year 2020. Lastly, Engineered
Films experienced cost overruns on a large geomembrane installation
project that lowered profits by nearly $2 million in this year's
third quarter. Remaining estimated costs to complete have been
revised and the Company expects this project to be break-even.
Net income for the third quarter of fiscal 2019 was $13.0
million, or $0.36 per diluted share, versus net income of $12.0
million, or $0.33 per diluted share, in last year's third quarter.
Included in this year's third quarter results on a pre-tax basis
were expenses related to Project Atlas, totaling $1.1 million ($0.8
million after-tax, or $0.02 per diluted share). In the third
quarter of last year, Project Atlas related expenses were
approximately $0.3 million ($0.2 million after-tax, or $0.01 per
diluted share). Additionally, net income benefited from a lower
estimated annual effective tax rate and favorable discrete tax
items.
The Company’s effective tax rate, excluding discrete items, in
the third quarter of fiscal 2019 was 18.7 percent, approximately 14
percentage points lower than the third quarter of last year. This
resulted in lower tax expense of approximately $2 million ($0.05
per diluted share), in this year's third quarter. The decline in
the effective tax rate was driven primarily by the Tax Cuts and
Jobs Act (TCJA). Net favorable discrete tax items in the third
quarter of fiscal year 2019 lowered tax expense by approximately
$1.4 million ($0.04 per diluted share).
Balance Sheet and Cash Flow:At the end of the
third quarter of fiscal 2019, cash and cash equivalents totaled
$68.7 million, increasing $3.3 million versus the prior quarter.
Profitability and operating cash flows remained strong during this
year's third quarter. The Company's priorities for cash are to
drive organic growth through both investment in research and
development and market expansion initiatives, strategic mergers and
acquisitions to supplement organic growth strategies, and to return
capital to shareholders through dividends and share
repurchases.
Net working capital as a percentage of annualized net sales
deteriorated, from 24.6 percent in the third quarter of last year
to 25.6 percent in this year’s third quarter.2 The increase was not
the result of extended payment terms. It was primarily driven by an
increase in Aerostar's accounts receivable in conjunction with
their significantly higher sales and timing of contract
deliverables and related invoicing.
Return on Equity:The Company's operations are
generating a very strong return on equity. On a trailing
twelve-month basis, return on equity was 19.7 percent. Trailing
twelve-month return on equity is determined by the Company as the
aggregate net income attributable to Raven for the previous twelve
months divided by the average of beginning and ending shareholders'
equity for the same period. Over the past ten fiscal years, return
on equity has averaged 19.1 percent, with 31.4 percent being the
peak and 1.7 percent being the trough. The robust return on equity
for the trailing twelve-months has been driven primarily by strong
sales and profitability improvements across all three
divisions.
Applied Technology Division:Net sales for
Applied Technology in the third quarter of fiscal 2019 were $29.7
million, up 17.5 percent year-over-year. Geographically, domestic
and international sales were up 18.4 percent and 14.0 percent
year-over-year, respectively. This increase, both domestically and
internationally, was led by strong growth from new products and
market share gains in several core product platforms.
New product sales growth were led by RS1™, the division's new
market leading steering platform. RS1™ combines autosteer, global
positioning capabilities, and Raven's Slingshot® services into one
intuitive, easy-to-use unit for agricultural equipment navigation
and remote connectivity for proactive service and logistics. This
innovative new solution, which was developed by leveraging
technology obtained in the fiscal year 2015 acquisition of SBG
Innovative BV, is superior relative to competitive technologies in
the marketplace today. RS1™ has positioned the division to gain
market share not only in the sprayer market, but also in the
tractor market. Applied Technology has traditionally had very
little market share in the tractor steering market, while holding a
very strong position in the smaller Ag sprayer steering market. The
success of RS1™ boosted revenues of this core product family by
approximately 50 percent over the prior year.
Additionally, the division continues to invest in building out
its Latin American presence and is making good progress in
positioning this geographic region for strong growth in fiscal year
2020. The division's growth strategy is to provide unmatched
customer service while focusing on expanding relationships with
local OEMs and large enterprise farms.
Division operating income in the third quarter of fiscal 2019
was $7.7 million, up $2.4 million or 44.4 percent versus the third
quarter of fiscal 2018. Division operating margin increased 480
basis points year-over-year, from 21.2 percent to 26.0 percent.
Incremental margins were strong for Applied Technology, driven
primarily by leverage on higher sales volume and to a lesser
extent, lower legal expenses versus the third quarter of the prior
year.
Engineered Films Division:Net sales for
Engineered Films in the third quarter of fiscal 2019 were $58.2
million, down $6.9 million or 10.6 percent year-over-year. Volume,
measured in pounds sold, decreased approximately 15 percent versus
the prior year. The decrease in net sales was expected and was
driven by a significant year-over-year decline in hurricane
recovery film sales. In the third quarter of fiscal 2018 hurricane
recovery film sales were $8.4 million. Sales of hurricane recovery
film in the third quarter of this year were $1.5 million, down $6.9
million year-over-year. Excluding the impact of sales from
hurricane recovery film3, the division's net sales were flat but
volume, measured in pounds sold, was down approximately 6 percent
year-over-year.
In the fourth quarter of this fiscal year, the division expects
to realize another substantial decline in hurricane recovery film
sales as compared to the prior year. In the fourth quarter of last
year, the division realized $15.8 million in sales of hurricane
recovery film due to unusually high event-driven demand. Overall,
market position is strong across all of the end-markets served by
Engineered Films, and the division continues to invest for future
growth. The Company expects that the division will perform well
over the next twelve months and over the long-term.
Operating income in the third quarter of fiscal 2019 was $9.2
million, down $7.9 million or 46.0 percent versus the third quarter
of fiscal 2018. Division operating income, as a percentage of
sales, decreased from 26.3 percent in the third quarter of last
year to 15.9 percent in this year's third quarter. The
year-over-year decrease was primarily driven by the impact of lower
hurricane recovery film sales and negative operating leverage
associated with lower sales volume. The division also experienced
cost overruns on a large geomembrane installation project due to
unfavorable weather conditions and other factors, and remaining
estimated costs to complete have been revised. These adjustments
lowered profits by nearly $2 million in this year's third quarter.
This installation project will be completed in the fourth quarter
of this year and the division expects this project to be
break-even.
Aerostar Division:Net sales for Aerostar during
the third quarter of fiscal 2019 were $17.0 million, up $5.9
million or 53.4 percent versus the third quarter of fiscal 2018.
This increase in net sales was driven primarily by improved
stratospheric balloon sales and aerostat contract deliveries. In
the third quarter, stratospheric balloon sales increased
significantly as the division completed several flight campaigns
and other contract deliverables associated with new U.S. government
customers. Additionally, the division fulfilled its aerostat
contract with the U.S. Department of Defense resulting in sales of
$2.0 million during the third quarter. Sales of aerostats in the
third quarter of last year were immaterial.
Division operating income in the third quarter of fiscal 2019
was $3.8 million, up $2.5 million or 182.5 percent versus the third
quarter of fiscal 2018. The increase in profitability was primarily
due to increased leverage on higher sales volume and higher
utilization of engineering support on service contracts.
Aerostar's sales are heavily based on government contracts which
are not necessarily stable and predictable from quarter to quarter.
Variability is to be expected. The Company expects sales in the
fourth quarter to be lighter than what was experienced in the first
three quarters of the year. This is due to timing of stratospheric
balloon contracts and completion of the aerostat contract in the
third quarter. Over the longer term, we do expect continued growth
in sales and operating income from Aerostar in-line with our
long-term growth rate expectation of 10 percent.
Aerostar has been awarded a new five-year $36.2 million contract
for the delivery, installation, operation and sustainment support
of Air Surveillance Radar Systems on-board certain U.S. naval
vessels. This contract was awarded based on strong performance of
fielded radar systems and the attractiveness of the division's
value-for-cost product offering which utilizes Aerostar's leading
technology and signal processing. Aerostar expects revenues from
this contract to be spread over a period of five years, with
deliveries beginning next year.
Market Outlook:For Applied Technology, the Ag
market dynamics have generally been consistent with Company
expectations and the Company does not expect significant changes in
the next twelve to eighteen months. The division continues to focus
on driving growth, regardless of market conditions, through
innovation and new product introductions as well as continuing to
expand OEM relationships both domestically and internationally.
Engineered Films continues to experience strong demand in the
industrial market, and Line 15 will provide additional capacity to
capture these opportunities starting in the fourth quarter of this
year. The U.S. energy market remains strong, but the significant
market rebound has leveled off, and growth in rig counts has
correspondingly slowed. Oil prices have decreased recently to the
$50 dollar-level, which if sustained may keep growth in the energy
market more subdued.
The Company continues to monitor the global trade environment
and tariff developments from both a supplier and customer
perspective. At this time, the Company believes the dynamics are
manageable and such developments will not have a material impact to
financial performance.
Fiscal 2019 Outlook:“Overall, the Company's
third quarter performance was strong,” said Dan Rykhus, President
and CEO. “Aerostar and Applied Technology drove substantial growth
in sales and profitability. These gains were partially offset by a
temporary step back in performance for Engineered Films.
“Applied Technology's continued growth in sales is a testament
to the division's focus on innovation and best-in-class service.
Superior technology offerings and platform expansion have
positioned Applied Technology well and resulted in market share
gains. The division remains focused on its key growth initiatives,
including its organic growth investment in Brazil and continued new
product development. At the same time, the division continues to
evaluate a number of potential acquisition targets to supplement
its organic growth strategy. The division is consistently improving
and driving results towards our long-term expectations.
“Engineered Films continues to invest for the future. The
division is nearing the completion of Line 15 to expand capacity to
capitalize on new opportunities within the industrial and
geomembrane markets and is diligently preparing for its Project
Atlas go-live to provide for more advanced planning and operations
management. The absence of significant hurricane recovery film
sales was expected, and it adversely impacted the year-over-year
comparisons for this quarter. The division's third quarter
installation project cost overruns were disappointing; however, the
underlying fundamentals for the division remain strong, we are
optimistic for the future, and the division's long-term division
profit margin expectation remains 18 to 20 percent.
“Aerostar had another outstanding quarter with strong growth in
stratospheric balloon sales. The new $36 million radar contract
award also demonstrates why radar systems remain a strategic core
product line for the division. The division's financial performance
and contract wins over the past year are a direct result of the
focus that the division has achieved.
“In closing, we are very pleased with both our third quarter and
year-to-date financial performance. We have made tremendous
progress in a number of strategic areas, while continuing to invest
for long-term growth. Our business model and strategic plans are
strong and give us confidence in our future,” 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 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 LarsenInvestor Relations
DirectorRaven 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 October 31, |
|
Nine Months Ended October 31, |
|
2018 |
|
2017 |
|
Fav (Un)Change |
|
2018 |
|
2017 |
|
Fav (Un)Change |
Net sales |
$ |
104,833 |
|
|
$ |
101,349 |
|
|
3.4 |
% |
|
$ |
318,646 |
|
|
$ |
281,494 |
|
|
13.2 |
% |
Cost of sales |
72,180 |
|
|
68,016 |
|
|
|
|
211,387 |
|
|
189,692 |
|
|
|
Gross
profit |
32,653 |
|
|
33,333 |
|
|
(2.0 |
)% |
|
107,259 |
|
|
91,802 |
|
|
16.8 |
% |
Gross
profit percentage |
31.1 |
% |
|
32.9 |
% |
|
|
|
33.7 |
% |
|
32.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses |
6,478 |
|
|
4,083 |
|
|
|
|
17,914 |
|
|
12,319 |
|
|
|
Selling, general, and
administrative expenses |
12,563 |
|
|
11,421 |
|
|
|
|
37,573 |
|
|
31,476 |
|
|
|
Long-lived asset
impairment loss |
— |
|
|
— |
|
|
|
|
— |
|
|
259 |
|
|
|
Operating
income |
13,612 |
|
|
17,829 |
|
|
(23.7 |
)% |
|
51,772 |
|
|
47,748 |
|
|
8.4 |
% |
Operating
income percentage |
13.0 |
% |
|
17.6 |
% |
|
|
|
16.2 |
% |
|
17.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)
, net |
674 |
|
|
(34 |
) |
|
|
|
6,214 |
|
|
(327 |
) |
|
|
Income
before income taxes |
14,286 |
|
|
17,795 |
|
|
(19.7 |
)% |
|
57,986 |
|
|
47,421 |
|
|
22.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
1,230 |
|
|
5,798 |
|
|
|
|
9,062 |
|
|
14,842 |
|
|
|
Net
income |
13,056 |
|
|
11,997 |
|
|
8.8 |
% |
|
48,924 |
|
|
32,579 |
|
|
50.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to noncontrolling interest |
24 |
|
|
(1 |
) |
|
|
|
80 |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to Raven Industries, Inc. |
$ |
13,032 |
|
|
$ |
11,998 |
|
|
8.6 |
% |
|
$ |
48,844 |
|
|
$ |
32,581 |
|
|
49.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
-
Basic |
$ |
0.36 |
|
|
$ |
0.33 |
|
|
9.1 |
% |
|
$ |
1.36 |
|
|
$ |
0.90 |
|
|
51.1 |
% |
-
Diluted |
$ |
0.36 |
|
|
$ |
0.33 |
|
|
9.1 |
% |
|
$ |
1.34 |
|
|
$ |
0.89 |
|
|
50.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares: |
|
|
|
|
|
|
|
|
|
|
|
-
Basic |
36,057 |
|
|
35,939 |
|
|
|
|
35,989 |
|
|
36,108 |
|
|
|
-
Diluted |
36,472 |
|
|
36,320 |
|
|
|
|
36,439 |
|
|
36,477 |
|
|
|
RAVEN INDUSTRIES, INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Dollars in thousands)
(Unaudited) |
|
|
October 31 |
|
January 31 |
|
October 31 |
|
2018 |
|
2018 |
|
2017 |
ASSETS |
|
|
|
|
|
Cash and cash
equivalents |
$ |
68,693 |
|
|
$ |
40,535 |
|
|
$ |
36,873 |
|
Accounts
receivable, net |
66,166 |
|
|
58,532 |
|
|
59,573 |
|
Inventories |
53,229 |
|
|
55,351 |
|
|
53,481 |
|
Other
current assets |
6,474 |
|
|
5,861 |
|
|
3,910 |
|
Total
current assets |
194,562 |
|
|
160,279 |
|
|
153,837 |
|
|
|
|
|
|
|
Property, plant and
equipment, net |
106,499 |
|
|
106,280 |
|
|
105,651 |
|
Goodwill and
amortizable intangibles, net |
57,756 |
|
|
57,294 |
|
|
58,127 |
|
Other assets |
2,909 |
|
|
2,950 |
|
|
2,926 |
|
TOTAL ASSETS |
$ |
361,726 |
|
|
$ |
326,803 |
|
|
$ |
320,541 |
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
Accounts
payable |
$ |
12,149 |
|
|
$ |
13,106 |
|
|
$ |
13,383 |
|
Accrued
and other liabilities |
22,977 |
|
|
23,836 |
|
|
22,553 |
|
Total
current liabilities |
35,126 |
|
|
36,942 |
|
|
35,936 |
|
|
|
|
|
|
|
Other liabilities |
17,091 |
|
|
13,795 |
|
|
13,456 |
|
Shareholders'
equity |
309,509 |
|
|
276,066 |
|
|
271,149 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
361,726 |
|
|
$ |
326,803 |
|
|
$ |
320,541 |
|
Net Working Capital and Net Working Capital
Percentage2 |
Accounts receivable,
net |
$ |
66,166 |
|
|
$ |
58,532 |
|
|
$ |
59,573 |
|
Plus: Inventories |
53,229 |
|
|
55,351 |
|
|
53,481 |
|
Less: Accounts
payable |
12,149 |
|
|
13,106 |
|
|
13,383 |
|
Net working
capital2 |
$ |
107,246 |
|
|
$ |
100,777 |
|
|
$ |
99,671 |
|
|
|
|
|
|
|
Annualized net
sales |
$ |
419,332 |
|
|
$ |
383,292 |
|
|
$ |
405,396 |
|
Net working capital
percentage2 |
25.6 |
% |
|
26.3 |
% |
|
24.6 |
% |
RAVEN INDUSTRIES, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Dollars in thousands)
(Unaudited) |
|
|
Nine Months Ended October 31, |
|
2018 |
|
2017 |
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
48,924 |
|
|
$ |
32,579 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
11,273 |
|
|
10,985 |
|
Long-lived asset impairment loss |
— |
|
|
259 |
|
Other
operating activities, net |
(7,889 |
) |
|
(12,989 |
) |
Net cash
provided by operating activities |
52,308 |
|
|
30,834 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Capital
expenditures |
(10,421 |
) |
|
(7,003 |
) |
Payments
related to business acquisitions |
— |
|
|
(12,700 |
) |
Proceeds
from sale or maturity of investments |
7,334 |
|
|
250 |
|
Purchases
of investments |
(502 |
) |
|
(255 |
) |
Proceeds
(disbursements) from sale of assets, settlement of liabilities |
832 |
|
|
(333 |
) |
Other
investing activities, net |
(2,042 |
) |
|
(36 |
) |
Net cash
used in investing activities |
(4,799 |
) |
|
(20,077 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Dividends
paid |
(14,000 |
) |
|
(14,032 |
) |
Payments
for common shares repurchased |
— |
|
|
(10,000 |
) |
Payment
of acquisition-related contingent liabilities |
(1,220 |
) |
|
(364 |
) |
Other
financing activities, net |
(3,560 |
) |
|
(308 |
) |
Net cash
used in financing activities |
(18,780 |
) |
|
(24,704 |
) |
|
|
|
|
Effect of exchange rate
changes on cash |
(571 |
) |
|
172 |
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
28,158 |
|
|
(13,775 |
) |
Cash and cash
equivalents at beginning of period |
40,535 |
|
|
50,648 |
|
Cash and cash
equivalents at end of period |
$ |
68,693 |
|
|
$ |
36,873 |
|
RAVEN INDUSTRIES, INC. |
SALES AND OPERATING INCOME BY
SEGMENT |
(Dollars in thousands)
(Unaudited) |
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|
2018 |
|
2017 |
|
Fav (Un)Change |
|
2018 |
|
2017 |
|
Fav (Un)Change |
Net sales |
|
|
|
|
|
|
|
|
|
|
|
Applied Technology |
$ |
29,740 |
|
|
$ |
25,319 |
|
|
17.5 |
% |
|
$ |
100,532 |
|
|
$ |
94,233 |
|
|
6.7 |
% |
Engineered Films |
58,239 |
|
|
65,108 |
|
|
(10.6 |
)% |
|
177,106 |
|
|
157,691 |
|
|
12.3 |
% |
Aerostar |
17,031 |
|
|
11,103 |
|
|
53.4 |
% |
|
41,449 |
|
|
30,078 |
|
|
37.8 |
% |
Intersegment eliminations |
(177 |
) |
|
(181 |
) |
|
|
|
(441 |
) |
|
(508 |
) |
|
|
Consolidated net sales |
$ |
104,833 |
|
|
$ |
101,349 |
|
|
3.4 |
% |
|
$ |
318,646 |
|
|
$ |
281,494 |
|
|
13.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
Applied
Technology |
$ |
7,737 |
|
|
$ |
5,357 |
|
|
44.4 |
% |
|
$ |
32,473 |
|
|
$ |
25,447 |
|
|
27.6 |
% |
Engineered Films |
9,239 |
|
|
17,115 |
|
|
(46.0 |
)% |
|
33,241 |
|
|
35,386 |
|
|
(6.1 |
)% |
Aerostar |
3,839 |
|
|
1,359 |
|
|
182.5 |
% |
|
10,479 |
|
|
4,165 |
|
|
151.6 |
% |
Intersegment eliminations |
(37 |
) |
|
(12 |
) |
|
|
|
(33 |
) |
|
(3 |
) |
|
|
Total
segment income |
20,778 |
|
|
23,819 |
|
|
(12.8 |
)% |
|
$ |
76,160 |
|
|
$ |
64,995 |
|
|
17.2 |
% |
Corporate
expenses |
(7,166 |
) |
|
(5,990 |
) |
|
(19.6 |
)% |
|
(24,388 |
) |
|
(17,247 |
) |
|
(41.4 |
)% |
Consolidated operating income |
$ |
13,612 |
|
|
$ |
17,829 |
|
|
(23.7 |
)% |
|
$ |
51,772 |
|
|
$ |
47,748 |
|
|
8.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
percentages |
|
|
|
|
|
|
|
|
|
|
|
Applied
Technology |
26.0 |
% |
|
21.2 |
% |
|
480bps |
|
32.3 |
% |
|
27.0 |
% |
|
530bps |
Engineered Films |
15.9 |
% |
|
26.3 |
% |
|
(1040)bps |
|
18.8 |
% |
|
22.4 |
% |
|
(360)bps |
Aerostar |
22.5 |
% |
|
12.2 |
% |
|
1,030bps |
|
25.3 |
% |
|
13.8 |
% |
|
1,150bps |
Consolidated operating income |
13.0 |
% |
|
17.6 |
% |
|
(460)bps |
|
16.2 |
% |
|
17.0 |
% |
|
(80)bps |
RAVEN INDUSTRIES, INC. |
NET SALES EXCLUDING HURRICANE RECOVERY FILM
SALES REGULATION G RECONCILIATION1 & 3 |
(Dollars in thousands)
(Unaudited) |
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|
2018 |
|
2017 |
|
Fav (Un)Change |
|
2018 |
|
2017 |
|
Fav (Un)Change |
Engineered
Films |
|
|
|
|
|
|
|
|
|
|
|
Reported Net Sales |
$ |
58,239 |
|
|
$ |
65,108 |
|
|
(10.6 |
)% |
|
$ |
177,106 |
|
|
$ |
157,691 |
|
|
12.3 |
% |
Less: Hurricane
Recovery Film Sales |
1,510 |
|
|
8,424 |
|
|
(82.1 |
)% |
|
10,429 |
|
|
8,424 |
|
|
23.8 |
% |
Net Sales, Excluding
Hurricane Recovery Film Sales3 |
$ |
56,729 |
|
|
$ |
56,684 |
|
|
0.08 |
% |
|
$ |
166,677 |
|
|
$ |
149,267 |
|
|
11.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Raven |
|
|
|
|
|
|
|
|
|
|
|
Reported Net Sales |
$ |
104,833 |
|
|
$ |
101,349 |
|
|
3.4 |
% |
|
$ |
318,646 |
|
|
$ |
281,494 |
|
|
13.2 |
% |
Less: Hurricane
Recovery Film Sales |
1,510 |
|
|
8,424 |
|
|
(82.1 |
)% |
|
10,429 |
|
|
8,424 |
|
|
23.8 |
% |
Net Sales, Excluding
Hurricane Recovery Film Sales1 |
$ |
103,323 |
|
|
$ |
92,925 |
|
|
11.2 |
% |
|
$ |
308,217 |
|
|
$ |
273,070 |
|
|
12.9 |
% |
RAVEN INDUSTRIES, INC. |
EBITDA REGULATION G
RECONCILIATION4 |
(Dollars in thousands)
(Unaudited) |
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
Segments |
2018 |
|
2017 |
|
Fav (Un)Change |
|
2018 |
|
2017 |
|
Fav (Un)Change |
Applied
Technology |
|
|
|
|
|
|
|
|
|
|
|
Reported operating
income |
$ |
7,737 |
|
|
$ |
5,357 |
|
|
44.4 |
% |
|
$ |
32,473 |
|
|
$ |
25,447 |
|
|
27.6 |
% |
Plus: Depreciation and
amortization |
918 |
|
|
872 |
|
|
5.3 |
% |
|
2,418 |
|
|
2,524 |
|
|
(4.2 |
)% |
ATD EBITDA |
$ |
8,655 |
|
|
$ |
6,229 |
|
|
38.9 |
% |
|
$ |
34,891 |
|
|
$ |
27,971 |
|
|
24.7 |
% |
ATD EBITDA % of Net
Sales |
29.1 |
% |
|
24.6 |
% |
|
|
|
34.7 |
% |
|
29.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Films |
|
|
|
|
|
|
|
|
|
|
|
Reported operating
income |
$ |
9,239 |
|
|
$ |
17,115 |
|
|
(46.0 |
)% |
|
$ |
33,241 |
|
|
$ |
35,386 |
|
|
(6.1 |
)% |
Plus: Depreciation and
amortization |
2,279 |
|
|
2,259 |
|
|
0.9 |
% |
|
6,927 |
|
|
6,424 |
|
|
7.8 |
% |
EFD EBITDA |
$ |
11,518 |
|
|
$ |
19,374 |
|
|
(40.5 |
)% |
|
$ |
40,168 |
|
|
$ |
41,810 |
|
|
(3.9 |
)% |
EFD EBITDA % of Net
Sales |
19.8 |
% |
|
29.8 |
% |
|
|
|
22.7 |
% |
|
26.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerostar |
|
|
|
|
|
|
|
|
|
|
|
Reported operating
income |
$ |
3,839 |
|
|
$ |
1,359 |
|
|
182.5 |
% |
|
$ |
10,479 |
|
|
$ |
4,165 |
|
|
151.6 |
% |
Plus: Depreciation and
amortization |
225 |
|
|
351 |
|
|
(35.9 |
)% |
|
662 |
|
|
1,112 |
|
|
(40.5 |
)% |
Aerostar EBITDA |
$ |
4,064 |
|
|
$ |
1,710 |
|
|
137.7 |
% |
|
$ |
11,141 |
|
|
$ |
5,277 |
|
|
111.1 |
% |
Aerostar EBITDA % of
Net Sales |
23.9 |
% |
|
15.4 |
% |
|
|
|
26.9 |
% |
|
17.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Raven |
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable
to Raven Industries |
$ |
13,032 |
|
|
$ |
11,998 |
|
|
8.6 |
% |
|
$ |
48,844 |
|
|
$ |
32,581 |
|
|
49.9 |
% |
Interest (income)
expense, net |
(131 |
) |
|
24 |
|
|
|
|
(190 |
) |
|
139 |
|
|
|
Income tax expense |
1,230 |
|
|
5,798 |
|
|
|
|
9,062 |
|
|
14,842 |
|
|
|
Plus: Depreciation and
amortization |
3,872 |
|
|
3,801 |
|
|
|
|
11,273 |
|
|
10,985 |
|
|
|
EBITDA |
$ |
18,003 |
|
|
$ |
21,621 |
|
|
(16.7 |
)% |
|
$ |
68,989 |
|
|
$ |
58,547 |
|
|
17.8 |
% |
EBITDA % of Net
Sales |
17.2 |
% |
|
21.3 |
% |
|
|
|
21.7 |
% |
|
20.8 |
% |
|
|
____________________________
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 Net working capital is a 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.
3 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.
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.
Raven Industries (NASDAQ:RAVN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Raven Industries (NASDAQ:RAVN)
Historical Stock Chart
From Apr 2023 to Apr 2024