Raven Industries, Inc. (the Company) (NASDAQ:RAVN)
today reported financial results for the third quarter that ended
October 31, 2019.
Noteworthy Items Occurring During the Third
Quarter:
- The Company unveiled Raven Autonomy™ and Raven Composites™ as
strategic growth platforms to drive a step change in long-term
earnings growth;
- Aerostar was awarded two aerostat contracts totaling $10.4
million, which are expected to be delivered within the next 12
months;
- Applied Technology began shipments of VSN™, the Company’s
best-in-class visual guidance technology;
- The Company repurchased 169 thousand shares during the third
quarter at an average price of $29.50 per share for a total of $5.0
million.
Noteworthy Items Occurring Subsequent to the End of the
Third Quarter:
- Aerostar had a successful go-live on the Company's new
enterprise resource planning (ERP) platform, joining Engineered
Films on the same operating system, with Applied Technology to
follow in fiscal 2022;
- The Company acquired Smart Ag, Inc. (Smart Ag®), a leading
technology company that develops autonomous farming solutions for
agriculture;
- The Company acquired controlling ownership interest of Dot
Technology Corp. (DOT®), the designer and manufacturer of a unique
U-shaped autonomous agriculture platform.
Third Quarter Results:
Net sales for the third quarter of fiscal 2020
were $100.5 million, down 4.1 percent versus the third quarter of
fiscal 2019. Each division experienced a modest year-over-year
decline in net sales. Applied Technology was unfavorably impacted
by the continued challenges in the North American ag market, while
the decline in Engineered Films' net sales was primarily driven by
lower sales into the Industrial market. Aerostar achieved growth in
its radar platform, but prior year net sales of approximately $2
million in aerostats, along with unfavorable timing of
stratospheric balloon contracts resulted in a year-over-year
decrease in net sales.
Operating income for the third quarter of fiscal 2020 was $11.3
million versus operating income of $13.6 million in the third
quarter of fiscal 2019, decreasing 16.7 percent year-over-year. The
year-over-year decline was primarily driven by increased
investments in research and development and selling activities and
negative operating leverage as a result of lower sales volume.
Operating income included a pre-tax gain of $1.9 million on the
sale of Applied Technology's facility in Austin, Texas. During the
third quarter, the Company also recognized $0.4 million of
transaction expenses related to the acquisition of Smart Ag® and
controlling ownership in DOT®.
Net income for the third quarter of fiscal 2020 was $9.9
million, or $0.28 per diluted share, versus net income of $13.0
million, or $0.36 per diluted share, in last year's third quarter.
The Company's effective tax rate for the third quarter of fiscal
2020 was 13.0 percent, increasing 4.4 percentage points
year-over-year. The year-over-year volatility in the effective tax
rate was primarily due to timing of discrete tax items related to
the settlement and vesting of equity compensation awards. The
Company's effective tax rate, excluding discrete items, was 15.3
percent, and 3.4 percentage points lower than the third quarter of
last year.
Strategic Platforms for Growth:The Company
recently announced details of its five-year strategic plan, which
includes significant investments in two targeted areas in order to
drive a step change in long-term earnings growth. These two
strategic growth platforms, Raven Autonomy™ and Raven
Composites™, are directly aligned with the Company’s business
model, which is to serve market segments with strong growth
prospects in both the near and long term. Raven Autonomy™ is
expected to enable Applied Technology to capitalize on the rapidly
developing market for autonomous agriculture solutions, while Raven
Composites™ is expected to position Engineered Films to execute on
near-term opportunities in the ever-expanding composites
market.
Raven Autonomy™ is expected to propel the Company's Applied
Technology Division to become the industry leader in autonomous
agricultural solutions. The Company recently announced two
transactions — acquisition of Smart Ag® and investment in the
controlling ownership interest of DOT® — as part of the execution
of the Raven Autonomy™ strategy. These acquisitions will allow the
division to build upon its existing machine control technology
while innovating smart machine platforms and implements to achieve
fully-autonomous solutions across the farming enterprise.
Integration efforts are underway for both transactions.
The Company's Engineered Films Division is an industry leader in
both high-performance plastic films and sheeting. Raven Composites™
will build on the division's core strengths and expand Engineered
Films to become an industry leader in the adjacent reinforced
composites market. By leveraging the division's reinforced
materials expertise, Engineered Films will innovate solutions that
deliver thinner, lighter and stronger composites within the
transportation, construction, automotive and packaging markets.
Execution of the strategy will include increased investment in
research and development, acquisitions, partnerships, capital
expenditures and business development activities in order to
execute the Company's specific initiatives and strategies for the
advancement of Raven Autonomy™ and Raven Composites™. Given the
significance of the planned investments, it is expected that
operating income for the Company will be lower during the next two
fiscal years (FY 2021 and FY 2022) while Raven Autonomy™ and Raven
Composites™ become established and sales ramp. The investment in
Raven Autonomy™, excluding acquisition-related expense, is expected
to add $4 to $5 million in incremental expenses in the fourth
quarter of fiscal 2020.
Balance Sheet and Cash Flow:
At the end of the third quarter of fiscal 2020, cash and cash
equivalents totaled $77.1 million, increasing $8.0 million from the
prior quarter. The sequential increase in cash was driven primarily
by improved net working capital and facilities optimization.
During the third quarter of fiscal 2020, the Company repurchased
169 thousand shares at an average price of $29.50 per share for a
total of $5.0 million. Year-to-date, the Company has repurchased
$10.8 million of shares. The Company's remaining repurchase
authorization is approximately $17 million.
Applied Technology Division:
Net sales for Applied Technology in the third quarter of fiscal
2020 were $28.5 million, down 4.2 percent year-over-year.
Unfavorable weather and poor yield conditions during this year's
growing season in North America negatively impacted end market
demand more than the Company had anticipated. This weakness in end
market demand resulted in additional OEM plant shutdowns during the
third quarter, which drove a 13.5 percent decrease in sales to the
OEM channel. Despite these end market challenges, the Aftermarket
channel showed signs of strength and grew 4.8 percent
year-over-year aided by the first shipments of VSN™, the Company’s
best-in-class visual guidance technology.
Division operating income in the third quarter of fiscal 2020
was $7.0 million, down $0.7 million or 9.1 percent versus the third
quarter of fiscal 2019. The year-over-year decrease was driven by
negative operating leverage as a result of lower sales volume,
temporarily higher warranty expenses and increased investments in
research and development to support the division's continued
commitment to innovation. Operating income also included a
pre-tax gain of $1.9 million from the sale of Applied Technology's
facility in Austin, Texas.
Engineered Films Division:
Net sales for Engineered Films in the third
quarter of fiscal 2020 were $56.4 million, down $1.8 million or 3.1
percent year-over-year. The division achieved impressive gains in
the agriculture, construction and installation end markets;
however, these gains were offset by lower sales into the industrial
market and challenges in the geomembrane market (specifically in
the energy sub-market).
Division operating income in the third quarter of fiscal 2020
was $8.5 million, down $0.8 million or 8.3 percent versus the third
quarter of fiscal 2019. Negative operating leverage on lower sales
volume reduced operating income compared to the prior year.
Aerostar Division:
Net sales for Aerostar in the third quarter of fiscal 2020 were
$15.7 million, down $1.4 million or 8.0 percent versus the third
quarter of fiscal 2019. The division achieved growth in its radar
platform; however, the year-over-year decrease of approximately $2
million in aerostat sales and the unfavorable timing of
stratospheric balloon contracts resulted in a year-over-year
decrease in net sales. Aerostar's sales to government agencies
often involve large contracts subject to frequent delays and
protracted negotiation processes. The timing and size of aerostat
contract wins can create volatility in Aerostar's results.
Division operating income in the third quarter
of fiscal 2020 was $2.5 million, down $1.4 million versus the third
quarter of fiscal 2019. Higher selling expenses and increased
investment in research and development drove a reduction in
operating income as the division continued its investment in
advancing its radar and stratospheric balloon technologies.
Additionally, operating income was unfavorably impacted by negative
operating leverage on lower sales volume year-over-year.
Market Outlook:
The North American ag market continues to be
negatively impacted by unfavorable weather and low commodity
prices, while U.S.-China trade developments continue to drive
uncertainty in the marketplace and negatively impact farmer
sentiment. These factors have reduced farm income, and OEMs have
responded with lower production of new machines. In the short term,
the Company does not anticipate improvement in ag market conditions
nor an increase in demand for precision agriculture equipment.
The energy market in the third quarter experienced slower demand
compared to prior year's third quarter, as West Texas Intermediate
(WTI) oil prices and Permian Basin rig counts were down 21 percent
and 14 percent year-over-year, respectively. The Company expects
energy market related demand for Engineered Films to follow Permian
Basin rig count trends for the remainder of the year.
Fiscal 2020 Outlook:
"Applied Technology and Engineered Films performed well in the
midst of lower demand, while Aerostar continues to win new
contracts and position itself for strong growth," said Dan Rykhus,
President and CEO. "Despite the short-term challenges we are
experiencing this fiscal year, the fundamentals within each of our
divisions remain very strong, and we are well positioned to
leverage our market leading technology to capitalize on business
development opportunities. Additionally, we recently announced two
new strategic platforms for growth, Raven Autonomy™ and Raven
Composites™, which are logical extensions of our current technology
portfolio and are expected to provide significant incremental
growth over the long term.
"Applied Technology began executing on its strategic platform
for growth, Raven Autonomy™, by acquiring Smart Ag® and a
controlling ownership in DOT®. We are very excited about our unique
position to execute and deliver value-added autonomous agriculture
solutions to the marketplace, and we look forward to providing
updates as we advance Raven Autonomy™. Additionally, the division's
existing core business remains strong and is performing well
considering the lower end market demand.
"Engineered Films achieved mixed results across
its end markets but continues to position itself for significant
growth opportunities within its existing markets. Raven Composites™
will be incremental to that growth, and there are near-term
opportunities to execute on for Raven Composites™. The division is
aggressively pursuing strategic acquisitions and expansions in both
equipment and facilities, and we will provide details as these
investments are completed in the near-term.
"Aerostar has been executing on its strategic plan for growth
and is delivering expected results. The two newly-awarded aerostat
contracts provide further evidence of the momentum and strength of
Aerostar's contract pipeline, and the division continues to
position itself for significant success in the aerospace and
defense market in the near future.
"Raven's business model has remained consistent over time;
however, we have made strategic pivots in the Company's history
that have proven to be very beneficial. Raven Autonomy™ and Raven
Composites™ are our next strategic pivot, and I can tell you that
through my 29 years of experience with Raven, I've never seen an
opportunity like this for Raven," concluded Rykhus.
Regulation G:
The information presented in this earnings release regarding
consolidated sales, Engineered Films' net sales excluding the
impact of hurricane recovery film sales, and 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 October 31, |
|
Nine Months Ended October 31, |
|
2019 |
|
|
2018 |
|
Fav (Un) Change |
|
2019 |
|
|
2018 |
|
Fav (Un) Change |
Net sales |
$ |
100,533 |
|
|
$ |
104,833 |
|
(4.1 |
) |
% |
|
$ |
296,769 |
|
|
$ |
318,646 |
|
(6.9 |
) |
% |
Cost of sales |
70,229 |
|
|
72,180 |
|
|
|
200,061 |
|
|
211,387 |
|
|
Gross profit |
30,304 |
|
|
32,653 |
|
(7.2 |
) |
% |
|
96,708 |
|
|
107,259 |
|
(9.8 |
) |
% |
Gross profit percentage |
30.1 |
% |
|
31.1 |
% |
|
|
|
32.6 |
% |
|
33.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
expenses |
7,662 |
|
|
6,478 |
|
|
|
22,000 |
|
|
17,914 |
|
|
Selling, general, and
administrative expenses |
11,310 |
|
|
12,563 |
|
|
|
37,685 |
|
|
37,573 |
|
|
Operating income |
11,332 |
|
|
13,612 |
|
(16.7 |
) |
% |
|
37,023 |
|
|
51,772 |
|
(28.5 |
) |
% |
Operating income percentage |
11.3 |
% |
|
13.0 |
% |
|
|
|
12.5 |
% |
|
16.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
84 |
|
|
674 |
|
|
|
398 |
|
|
6,214 |
|
|
Income before income taxes |
11,416 |
|
|
14,286 |
|
(20.1 |
) |
% |
|
37,421 |
|
|
57,986 |
|
(35.5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
1,483 |
|
|
1,230 |
|
|
|
5,512 |
|
|
9,062 |
|
|
Net income |
9,933 |
|
|
13,056 |
|
(23.9 |
) |
% |
|
31,909 |
|
|
48,924 |
|
(34.8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to noncontrolling interest |
(1 |
) |
|
24 |
|
|
|
(1 |
) |
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Raven Industries, Inc. |
$ |
9,934 |
|
|
$ |
13,032 |
|
(23.8 |
) |
% |
|
$ |
31,910 |
|
|
$ |
48,844 |
|
(34.7 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
- Basic |
$ |
0.28 |
|
|
$ |
0.36 |
|
(22.2 |
) |
% |
|
$ |
0.89 |
|
|
$ |
1.36 |
|
(34.6 |
) |
% |
- Diluted |
$ |
0.28 |
|
|
$ |
0.36 |
|
(22.2 |
) |
% |
|
$ |
0.88 |
|
|
$ |
1.34 |
|
(34.3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares: |
|
|
|
|
|
|
|
|
|
|
|
- Basic |
35,914 |
|
|
36,057 |
|
|
|
36,014 |
|
|
35,989 |
|
|
- Diluted |
36,091 |
|
|
36,472 |
|
|
|
36,251 |
|
|
36,439 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RAVEN INDUSTRIES,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(Dollars in thousands)
(Unaudited)
|
October 31 |
|
January 31 |
|
October 31 |
|
2019 |
|
2019 |
|
2018 |
ASSETS |
|
|
|
|
|
Cash and cash equivalents |
$ |
77,094 |
|
$ |
65,787 |
|
$ |
68,693 |
Accounts receivable, net |
62,057 |
|
54,472 |
|
66,166 |
Inventories |
51,981 |
|
54,076 |
|
53,229 |
Other current assets |
5,095 |
|
8,736 |
|
6,474 |
Total current assets |
196,227 |
|
183,071 |
|
194,562 |
|
|
|
|
|
|
Property, plant and equipment, net |
101,487 |
|
106,615 |
|
106,499 |
Goodwill and amortizable intangibles, net |
65,767 |
|
67,235 |
|
57,756 |
Other assets |
8,795 |
|
3,324 |
|
2,909 |
TOTAL ASSETS |
$ |
372,276 |
|
$ |
360,245 |
|
$ |
361,726 |
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
Accounts payable |
$ |
11,045 |
|
$ |
8,272 |
|
$ |
12,149 |
Accrued and other liabilities |
23,083 |
|
24,781 |
|
22,977 |
Total current liabilities |
34,128 |
|
33,053 |
|
35,126 |
|
|
|
|
|
|
Other liabilities |
21,969 |
|
18,235 |
|
17,091 |
Shareholders' equity |
316,179 |
|
308,957 |
|
309,509 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
372,276 |
|
$ |
360,245 |
|
$ |
361,726 |
Net Working Capital and Net Working Capital
Percentage3 |
|
|
Accounts receivable, net |
$ |
62,057 |
|
$ |
54,472 |
|
$ |
66,166 |
Plus: Inventories |
51,981 |
|
54,076 |
|
53,229 |
Less: Accounts payable |
11,045 |
|
8,272 |
|
12,149 |
Net working capital3 |
$ |
102,993 |
|
$ |
100,276 |
|
$ |
107,246 |
|
|
|
|
|
|
|
|
Annualized net sales |
$ |
402,132 |
|
$ |
352,088 |
|
$ |
|
419,332 |
Net working capital
percentage3 |
|
25.6 |
% |
|
28.5 |
% |
|
|
25.6% |
RAVEN INDUSTRIES,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Dollars in thousands)
(Unaudited)
|
Nine Months Ended October 31, |
|
2019 |
|
|
2018 |
|
Cash flows from operating
activities: |
|
|
|
Net income |
$ |
31,909 |
|
|
$ |
48,924 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
12,124 |
|
|
11,273 |
|
Other operating activities, net |
3,045 |
|
|
(7,889 |
) |
Net cash provided by operating activities |
47,078 |
|
|
52,308 |
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Capital expenditures |
(6,143 |
) |
|
(10,421 |
) |
Proceeds from sale or maturity of investments |
993 |
|
|
7,334 |
|
Purchases of investments |
(934 |
) |
|
(502 |
) |
Proceeds (disbursements) from sale of assets, settlement of
liabilities |
3,459 |
|
|
832 |
|
Other investing activities, net |
(3,208 |
) |
|
(2,042 |
) |
Net cash used in investing activities |
(5,833 |
) |
|
(4,799 |
) |
|
|
|
|
Cash flows from financing
activities: |
|
|
|
Dividends paid |
(14,001 |
) |
|
(14,000 |
) |
Payments for common shares repurchased |
(10,781 |
) |
|
— |
|
Payment of acquisition-related contingent liabilities |
(1,308 |
) |
|
(1,220 |
) |
Other financing activities, net |
(3,780 |
) |
|
(3,560 |
) |
Net cash used in financing activities |
(29,870 |
) |
|
(18,780 |
) |
|
|
|
|
Effect of exchange rate
changes on cash |
(68 |
) |
|
(571 |
) |
|
|
|
|
Net increase in cash and cash
equivalents |
11,307 |
|
|
28,158 |
|
Cash and cash equivalents at
beginning of period |
65,787 |
|
|
40,535 |
|
Cash and cash equivalents at
end of period |
$ |
77,094 |
|
|
$ |
68,693 |
|
RAVEN INDUSTRIES,
INC.SALES AND OPERATING INCOME BY
SEGMENT(Dollars in thousands)
(Unaudited)
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|
|
2019 |
|
|
2018 |
|
|
Fav (Un) Change |
|
2019 |
|
|
2018 |
|
|
Fav (Un) Change |
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
Applied Technology |
|
$ |
28,500 |
|
|
$ |
29,740 |
|
|
(4.2 |
) |
% |
|
$ |
97,596 |
|
|
$ |
100,532 |
|
|
(2.9 |
) |
% |
Engineered Films |
|
56,406 |
|
|
58,239 |
|
|
(3.1 |
) |
% |
|
158,214 |
|
|
177,106 |
|
|
(10.7 |
) |
% |
Aerostar |
|
15,661 |
|
|
17,031 |
|
|
(8.0 |
) |
% |
|
41,040 |
|
|
41,449 |
|
|
(1.0 |
) |
% |
Intersegment eliminations |
|
(34 |
) |
|
(177 |
) |
|
|
|
(81 |
) |
|
(441 |
) |
|
|
Consolidated net sales |
|
$ |
100,533 |
|
|
$ |
104,833 |
|
|
(4.1 |
) |
% |
|
$ |
296,769 |
|
|
$ |
318,646 |
|
|
(6.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
Applied Technology |
|
$ |
7,035 |
|
|
$ |
7,737 |
|
|
(9.1 |
) |
% |
|
$ |
25,120 |
|
|
$ |
32,473 |
|
|
(22.6 |
) |
% |
Engineered Films |
|
8,474 |
|
|
9,239 |
|
|
(8.3 |
) |
% |
|
24,987 |
|
|
33,241 |
|
|
(24.8 |
) |
% |
Aerostar |
|
2,488 |
|
|
3,839 |
|
|
(35.2 |
) |
% |
|
7,427 |
|
|
10,479 |
|
|
(29.1 |
) |
% |
Intersegment eliminations |
|
(12 |
) |
|
(37 |
) |
|
|
|
(10 |
) |
|
(33 |
) |
|
|
Total segment income |
|
$ |
17,985 |
|
|
$ |
20,778 |
|
|
(13.4 |
) |
% |
|
$ |
57,524 |
|
|
$ |
76,160 |
|
|
(24.5 |
) |
% |
Corporate expenses |
|
(6,653 |
) |
|
(7,166 |
) |
|
7.2 |
|
% |
|
(20,501 |
) |
|
(24,388 |
) |
|
15.9 |
|
% |
Consolidated operating income |
|
$ |
11,332 |
|
|
$ |
13,612 |
|
|
(16.7 |
) |
% |
|
$ |
37,023 |
|
|
$ |
51,772 |
|
|
(28.5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
percentages |
|
|
|
|
|
|
|
|
|
|
|
|
Applied Technology |
|
24.7 |
% |
|
26.0 |
% |
|
(130)bps |
|
25.7 |
% |
|
32.3 |
% |
|
(660)bps |
Engineered Films |
|
15.0 |
% |
|
15.9 |
% |
|
(90)bps |
|
15.8 |
% |
|
18.8 |
% |
|
(300)bps |
Aerostar |
|
15.9 |
% |
|
22.5 |
% |
|
(660)bps |
|
18.1 |
% |
|
25.3 |
% |
|
(720)bps |
Consolidated operating income |
|
11.3 |
% |
|
13.0 |
% |
|
(170)bps |
|
12.5 |
% |
|
16.2 |
% |
|
(370)bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
RAVEN INDUSTRIES, INC. |
EBITDA REGULATION G RECONCILIATION4 |
(Dollars in thousands) (Unaudited) |
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|
|
|
|
|
Fav (Un) |
|
|
|
|
|
Fav (Un) |
Segments |
2019 |
|
|
2018 |
|
|
Change |
|
2019 |
|
|
2018 |
|
|
Change |
Applied
Technology |
|
|
|
|
|
|
|
|
|
|
|
Reported operating income |
$ |
7,035 |
|
|
$ |
7,737 |
|
|
(9.1 |
) |
% |
|
$ |
25,120 |
|
|
$ |
32,473 |
|
|
(22.6 |
) |
% |
Plus: Depreciation and
amortization |
957 |
|
|
918 |
|
|
4.2 |
|
% |
|
2,956 |
|
|
2,418 |
|
|
22.2 |
|
% |
ATD EBITDA |
$ |
7,992 |
|
|
$ |
8,655 |
|
|
(7.7 |
) |
% |
|
$ |
28,076 |
|
|
$ |
34,891 |
|
|
(19.5 |
) |
% |
ATD EBITDA % of Net Sales |
28.0 |
% |
|
29.1 |
% |
|
|
|
28.8 |
% |
|
34.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Films |
|
|
|
|
|
|
|
|
|
|
|
Reported operating income |
$ |
8,474 |
|
|
$ |
9,239 |
|
|
(8.3 |
) |
% |
|
$ |
24,987 |
|
|
$ |
33,241 |
|
|
(24.8 |
) |
% |
Plus: Depreciation and
amortization |
2,397 |
|
|
2,279 |
|
|
5.2 |
|
% |
|
7,121 |
|
|
6,927 |
|
|
2.8 |
|
% |
EFD EBITDA |
$ |
10,871 |
|
|
$ |
11,518 |
|
|
(5.6 |
) |
% |
|
$ |
32,108 |
|
|
$ |
40,168 |
|
|
(20.1 |
) |
% |
EFD EBITDA % of Net Sales |
19.3 |
% |
|
19.8 |
% |
|
|
|
20.3 |
% |
|
22.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerostar |
|
|
|
|
|
|
|
|
|
|
|
Reported operating income |
$ |
2,488 |
|
|
$ |
3,839 |
|
|
(35.2 |
) |
% |
|
$ |
7,427 |
|
|
$ |
10,479 |
|
|
(29.1 |
) |
% |
Plus: Depreciation and
amortization |
240 |
|
|
225 |
|
|
6.7 |
|
% |
|
680 |
|
|
662 |
|
|
2.7 |
|
% |
Aerostar EBITDA |
$ |
2,728 |
|
|
$ |
4,064 |
|
|
(32.9 |
) |
% |
|
$ |
8,107 |
|
|
$ |
11,141 |
|
|
(27.2 |
) |
% |
Aerostar EBITDA % of Net
Sales |
17.4 |
% |
|
23.9 |
% |
|
|
|
19.8 |
% |
|
26.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to Raven
Industries |
$ |
9,934 |
|
|
$ |
13,032 |
|
|
(23.8 |
) |
% |
|
$ |
31,910 |
|
|
$ |
48,844 |
|
|
(34.7 |
) |
% |
Interest (income) expense,
net |
(210 |
) |
|
(131 |
) |
|
|
|
(644 |
) |
|
(190 |
) |
|
|
Income tax expense |
1,483 |
|
|
1,230 |
|
|
|
|
5,512 |
|
|
9,062 |
|
|
|
Plus: Depreciation and
amortization |
4,002 |
|
|
3,872 |
|
|
|
|
12,124 |
|
|
11,273 |
|
|
|
Consolidated EBITDA |
$ |
15,209 |
|
|
$ |
18,003 |
|
|
(15.5 |
) |
% |
|
$ |
48,902 |
|
|
$ |
68,989 |
|
|
(29.1 |
) |
% |
Consolidated EBITDA % of Net
Sales |
15.1 |
% |
|
17.2 |
% |
|
|
|
16.5 |
% |
|
21.7 |
% |
|
|
RAVEN INDUSTRIES, INC. |
NET SALES EXCLUDING HURRICANE RECOVERY FILM SALES
REGULATION G RECONCILIATION1 & 2 |
(Dollars in thousands) (Unaudited) |
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|
2019 |
|
2018 |
|
Fav (Un) Change |
|
2019 |
|
2018 |
|
Fav (Un) Change |
Engineered
Films |
|
|
|
|
|
|
|
|
|
|
|
Reported Net Sales |
$ |
56,406 |
|
$ |
58,239 |
|
(3.1 |
) |
% |
|
$ |
158,214 |
|
$ |
177,106 |
|
(10.7 |
) |
% |
Less: Hurricane Recovery Film
Sales |
1,010 |
|
1,510 |
|
|
|
1,833 |
|
10,429 |
|
(82.4 |
) |
% |
Net Sales, Excluding Hurricane
Recovery Film Sales2 |
$ |
55,396 |
|
$ |
56,729 |
|
(2.3 |
) |
% |
|
$ |
156,381 |
|
$ |
166,677 |
|
(6.2 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Raven |
|
|
|
|
|
|
|
|
|
|
|
Reported Net Sales |
$ |
100,533 |
|
$ |
104,833 |
|
(4.1 |
) |
% |
|
$ |
296,769 |
|
$ |
318,646 |
|
(6.9 |
) |
% |
Less: Hurricane Recovery Film
Sales |
1,010 |
|
1,510 |
|
|
|
1,833 |
|
10,429 |
|
(82.4 |
) |
% |
Net Sales, Excluding Hurricane
Recovery Film Sales1 |
$ |
99,523 |
|
$ |
103,323 |
|
(3.7 |
) |
% |
|
$ |
294,936 |
|
$ |
308,217 |
|
(4.3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
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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