-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, poDcgloFEOTA6K/LayIpXi7oXcrsXIYtE4KoFPCh/YrXlDlW44Ocde86S+AVZt3L 3FrfEQgW4vufSJUsPx1FSQ== 0000897101-95-000178.txt : 19950608 0000897101-95-000178.hdr.sgml : 19950608 ACCESSION NUMBER: 0000897101-95-000178 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950430 FILED AS OF DATE: 19950601 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: RAVEN INDUSTRIES INC CENTRAL INDEX KEY: 0000082166 STANDARD INDUSTRIAL CLASSIFICATION: 2300 IRS NUMBER: 460246171 STATE OF INCORPORATION: SD FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-03136 FILM NUMBER: 95544219 BUSINESS ADDRESS: STREET 1: 205 E 6TH ST STREET 2: PO BOX 5107 CITY: SIOUX FALLS STATE: SD ZIP: 57117 BUSINESS PHONE: 6053362750 MAIL ADDRESS: STREET 1: P O BOX 5107 CITY: SIOUX FALLS STATE: SD ZIP: 57117-5107 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (MARK ONE) (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: April 30, 1995 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________________ Commission file number: 0-3136 RAVEN INDUSTRIES, INC. (Exact name of registrant as specified in its charter) SOUTH DAKOTA 46-0246171 (State or other jurisdiction (I.R.S. Employer Identification No.) of incorporation or organization) 205 East 6th Street P.O. Box 5107 Sioux Falls, SD 57117-5107 (Address of principal executive offices) (Zip code) 605-336-2750 Registrant's telephone number, including area code Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes __X__ No _____ APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding as of April 30, 1995 Common Stock 4,735,770 shares RAVEN INDUSTRIES, INC. AND SUBSIDIARIES INDEX PAGE NO. PART I-FINANCIAL INFORMATION Consolidated Balance Sheets-April 30, 1995; January 31, 1995 and April 30, 1994 3 Consolidated Statements of Income-Three months Ended April 30, 1995 and 1994 4 Consolidated Statements of Cash Flows- Three Months Ended April 30, 1995 and 1994 5 Notes to Consolidated Financial Statements 6 Computation of Earnings Per Share 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 8-9 PART II-OTHER INFORMATION 10 PART I - FINANCIAL INFORMATION RAVEN INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands)
4/30/95 01/31/95 04/30/94 ASSETS Cash ....................................................... $ 1,593 $ 2,304 $ 1,176 Accounts receivable (less allowance for doubtful accounts of $387, $350 and $318) ................. 15,511 17,592 16,869 Inventories: Materials ................................................ 14,379 13,147 14,667 In process ............................................... 5,268 4,709 5,411 Finished goods ........................................... 6,220 4,247 6,161 Total inventories .................................... 25,867 22,103 26,239 Prepaid expenses and other current assets .................. 397 382 312 Deferred income taxes ...................................... 1,414 1,414 1,402 Total current assets ................................. 44,782 43,795 45,998 Property, plant and equipment .............................. 44,413 43,108 37,186 Less: accumulated depreciation ........................... 25,469 24,538 23,125 Net property, plant & equipment ...................... 18,944 18,570 14,061 Other assets ............................................... 3,225 3,271 2,346 TOTAL ASSETS ............................................... $66,951 $65,636 $62,405 LIABILITIES AND STOCKHOLDERS' EQUITY Notes payable, bank ........................................ $ 1,500 $ 0 $ 2,000 Current portion of long-term debt .......................... 846 907 667 Accounts payable ........................................... 5,229 5,435 6,760 Accrued liabilities and customer advances .................. 8,413 8,736 8,125 Total current liabilities ............................ 15,988 15,078 17,552 Long-term debt (less current portion) ...................... 3,547 4,179 1,824 Deferred income taxes ...................................... 853 853 870 Stockholders' equity Common stock, $1 par value, authorized shares: 100,000,000 issued: 5,051,673; 5,050,433 and 5,040,056 shares ....... 5,052 5,050 5,040 Paid in capital .......................................... 418 420 357 Retained earnings ........................................ 43,427 42,390 39,096 Less treasury stock, at cost: 48,897 47,860 44,493 315,903 shares ...................................... 2,334 2,334 2,334 Total stockholders' equity ........................... 46,563 45,526 42,159 Total liabilities & stockholders' equity ................... $66,951 $65,636 $62,405
The accompanying notes are an integral part of the financial statements. PART I - FINANCIAL INFORMATION RAVEN INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands except per-share data) FOR THE THREE MONTHS ENDED: 4/30/95 4/30/94 Net sales............................ $27,787 $27,816 Cost of goods sold................... 22,011 22,456 Gross profit....................... 5,776 5,360 Operating expenses Selling............................ 1,821 1,765 Administrative..................... 1,551 1,549 3,372 3,314 Operating income..................... 2,404 2,046 Other income (expense) Interest........................... (107) (43) Miscellaneous...................... 83 131 Income before income taxes........... 2,380 2,134 Income taxes......................... 845 758 Net income........................... $1,535 $1,376 Average number of common and common-equivalent shares outstanding........................ 4,787,037 4,801,552 Net income per common and common-equivalent share............ $0.32 $0.29 Cash dividends paid per share........ $0.105 $0.090 The accompanying notes are an integral part of the financial statements. PART I - FINANCIAL INFORMATION RAVEN INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands) FOR THE THREE MONTHS ENDED: 4/30/95 4/30/94 Cash flows from operating activities: Net income .......................................... $ 1,535 $ 1,376 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ................... 1,080 919 Provision for losses on accounts receivable ..... 41 29 Equity in earnings of affiliate, net of dividends (50) (100) (Increase) decrease in accounts receivable ...... 2,040 (358) (Increase) decrease in inventories .............. (3,764) (4,015) (Increase) decrease in other current assets ..... (15) 113 Increase (decrease) in operating liabilities .... (529) (723) Other ........................................... 92 9 Net cash provided by (used in) operating activites .. 430 (2,750) Cash flows from investing activities: Capital expenditures ................................ (1,510) (1,646) Intangible asset expenditures and other ............. 60 (29) Net cash used in investing activities ............... (1,450) (1,675) Cash flows from financing activities: Issuance of short-term debt ......................... 3,000 2,000 Payment of short-term debt .......................... (1,500) 0 Issuance of long-term note .......................... 0 62 Long-term debt principal payments ................... (693) (590) Proceeds from exercise of stock options ............. 0 108 Dividends paid ...................................... (498) (425) Net cash provided by (used in) financing activities .............................. 309 1,155 Net increase (decrease) in cash and equivalents ..... (711) (3,270) Cash and cash equivalents at beginning of period ...... 2,304 4,446 Cash and cash equivalents at end of period ............ $ 1,593 $ 1,176 Cash paid during the period for: Interest .......................................... $ 120 $ 67 Income taxes ...................................... $ 362 $ 128 The accompanying notes are an integral part of the financial statements. RAVEN INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended April 30, 1995 are not necessarily indicative of the results that may be expected for the year ending January 31, 1996. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended January 31, 1995. PART I - FINANCIAL INFORMATION RAVEN INDUSTRIES, INC. AND SUBSIDIARIES COMPUTATIONS OF EARNINGS PER COMMON SHARE (Dollars in thousands except per-share data) FOR THE THREE MONTHS ENDED: 4/30/95 4/30/94 Net income .................................... $ 1,535 $ 1,376 Earnings per common share - Primary ................................. $ 0.32 $ 0.29 Earnings per common share - Fully diluted (1) ....................... $ 0.32 $ 0.29 Average number of common and common equivalent shares: Primary: Weighted average common shares outstanding........................ 4,734,570 4,714,786 Dilutive effect of exercise of certain stock options ................. 52,467 86,766 Average common shares - Primary ................................ 4,787,037 4,801,552 Fully diluted (1): Weighted average common shares outstanding ....................... 4,734,570 4,714,786 Dilutive effect of exercise of certain stock options ................. 55,098 86,766 Average common shares - Fully diluted .......................... 4,789,668 4,801,552 (1) This calculation is submitted in accordance with Regulation S-K item 601(b)(11) although not required by footnote 2 to paragraph 14 of APB Opinion No. 15 because it results in dilution of less than 3%. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FINANCIAL CONDITION Net cash provided by operating activities was $430,000 during the quarter ended April 30, 1995; an improvement of $3.2 million from the comparable period of the prior year. The timing of collection of fourth quarter accounts receivable balances accounted for much of the improvement. Compared to April 30, 1994, net accounts receivable balances were $1.4 million lower. This reduction was due primarily to an improvement in accounts receivable days sales outstanding at the company's Beta Raven subsidiary of more than 30 days between April 30, 1994 and 1995. The seasonal increase in inventories during the quarter was $3.8 million, compared to $4.0 million during the first quarter of the prior year. Short-term borrowings required to finance inventory growth were $1.5 million at April 30, 1995 compared to $2.0 million at April 30,1994. As a result, cash balances declined by $711,000 during the first quarter of fiscal 1996 compared to $3.3 million during the comparable period of the prior year. RESULTS OF OPERATIONS Sales of $27.8 million in the quarter ended April 30, 1995 remained flat when compared to the first quarter of the previous year. Growth of commercial business offset a $4.4 million decline in defense revenues. Record first quarter net income of $1.5 million or $.32 per share was up 12 percent from the comparable period last year. Improved operating income in the Electronics segment accounted for the increase. Electronics segment sales of $10.1 million in the first quarter were up 9 percent over the comparable quarter last year despite a $1.3 million decline in defense sales. This segment experienced a 38 percent growth in agricultural flow control sales along with growth in commercial contract electronics assembly. First quarter operating income in this segment increased 50 percent compared to the first quarter of the prior year and reached $1.8 million. The company's Beta Raven subsidiary operated profitably in the first quarter of the current year and at a loss during the quarter ended April 30, 1994. Plastics segment sales of $13.2 million were 19 percent higher than the prior year's first quarter. The higher sales were a result of increased productive capacity added during fiscal 1995. Sales of engineered films, plastic tanks and pickup truck toppers all increased. Higher operating income from the higher sales was offset by approximately $150,000 of losses at the company's utility-truck body subsidiary, which was closed during the quarter. Due to immateriality of this subsidiary, losses were included in operating income. Total operating income of $766,000 in the first quarter was essentially unchanged from the first quarter of the prior year. Sewn products segment revenues of $4.5 million were at their seasonal low point in the first quarter. Last year's $7.5 million first quarter included $3.0 million of chemical warfare protection suit revenues, with no counterpart in fiscal 1996. The relatively low sales generated a $172,000 loss at the operating income line. The first quarter last year saw operating income of $146,000. A reduced order intake level during the first quarter as a result of the mild winter's impact on outerwear demand, indicates a year of decreased sales for this segment. Consolidated first quarter gross profits rose 8 percent despite flat sales compared to the first quarter of the prior year. Increased sales of relatively higher margin products in the Electronics segment and operating improvements at Beta Raven accounted for improvement in the gross profit rate. First quarter selling expenses increased by 3 percent and administrative expenses were flat compared to the first quarter of the prior year. As a result of the increased gross profit rate and relatively flat expenses, first quarter operating income of $2.4 million was 17 percent higher than the comparable period last year. Interest expense increased due to higher long-term borrowings incurred to finance expansion during fiscal 1995 and higher first quarter interest rates. Other income (expense) reflects lower earnings at the company's 50% percent owned affiliate. The income tax rate of 35.5 percent used in the current year was unchanged from the first quarter of the prior year and was slightly higher than the 35.0 percent used for the full fiscal year ended January 31, 1995. PART II-OTHER INFORMATION Item 1. Legal Proceedings: None Item 2. Changes in Securities: None Item 3. Defaults upon Senior Securities: None Item 4. Submission of Matters to a Vote of Security Holders: None Item 5. Other Information: None Item 6. (a) Exhibits Filed: Exh. 27-Financial Data schedule (for S.E.C. only). (See Part 1, page 7 for earnings per share computation) (b) Reports on Form 8-K: None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. RAVEN INDUSTRIES, INC. /s/ Arnold J. Thue Arnold J. Thue Vice President, Treasurer and Principal Financial Officer Date: June 1, 1995 EX-27 2
5 1,000 3-MOS JAN-31-1996 APR-30-1995 1,593 0 15,898 387 25,867 44,782 44,413 25,469 66,951 15,988 3,547 5,052 0 0 41,511 66,951 27,787 27,787 22,011 22,011 0 0 107 2,380 845 1,535 0 0 0 1,535 .32 .32
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