-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BwEMk0xNmV244X/sWrcETIOX4fF0clOPbvjGylkHD2ALipxozNB642ek6NZF6zcY Mkc2Rq4nj9hHZYQttkmttw== 0000897101-96-000356.txt : 19960604 0000897101-96-000356.hdr.sgml : 19960604 ACCESSION NUMBER: 0000897101-96-000356 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960430 FILED AS OF DATE: 19960603 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: RAVEN INDUSTRIES INC CENTRAL INDEX KEY: 0000082166 STANDARD INDUSTRIAL CLASSIFICATION: APPAREL & OTHER FINISHED PRODS OF FABRICS & SIMILAR MATERIAL [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: 96575983 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, 1996 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 of (I.R.S. Employer Identification No.) 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, 1996 Common Stock 4,716,502 shares RAVEN INDUSTRIES, INC. AND SUBSIDIARIES INDEX PAGE NO. PART I-FINANCIAL INFORMATION Consolidated Balance Sheets-April 30, 1996; January 31, 1996 and April 30, 1995 3 Consolidated Statements of Income-Three months ended April 30, 1996 and 1995 4 Consolidated Statements of Cash Flows- Three months ended April 30, 1996 and 1995 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)
4/30/96 01/31/96 4/30/95 -------- -------- -------- ASSETS Cash and cash equivalents ...................... $ 1,789 $ 3,804 $ 1,593 Accounts receivable, less allowance for doubtful accounts of $340, $340 and $387 ..... 18,556 16,002 15,511 Inventories: Materials .................................... 14,494 13,317 14,379 In process ................................... 5,319 5,605 5,268 Finished goods ............................... 5,829 5,236 6,220 Progress payments ............................ (33) (261) 0 -------- -------- -------- Total inventories ........................ 25,609 23,897 25,867 Prepaid expenses and other current assets ...... 333 413 397 Deferred income taxes .......................... 1,579 1,579 1,414 -------- -------- -------- Total current assets ..................... 47,866 45,695 44,782 -------- -------- -------- Property, plant and equipment .................. 46,188 45,020 44,413 Less: accumulated depreciation ............... 27,934 26,951 25,469 -------- -------- -------- Net property, plant & equipment .......... 18,254 18,069 18,944 Other assets ................................... 3,752 3,789 3,225 -------- -------- -------- TOTAL ASSETS ................................... $ 69,872 $ 67,553 $ 66,951 ======== ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Notes payable, bank ............................ $ 0 $ 0 $ 1,500 Current portion of long-term debt .............. 813 813 846 Accounts payable ............................... 5,911 4,651 5,229 Accrued liabilities and customer advances ...... 9,189 9,307 8,413 -------- -------- -------- Total current liabilities ................ 15,913 14,771 15,988 Long-term debt, less current portion ........... 2,746 2,816 3,547 Deferred income taxes .......................... 815 815 853 Stockholders' equity Common stock, $1 par value, authorized shares: 100,000,000; issued: 5,068,905; 5,068,379 and 5,051,673 shares ............................ 5,069 5,068 5,052 Paid in capital .............................. 540 536 418 Retained earnings ............................ 47,699 46,457 43,427 -------- -------- -------- 53,308 52,061 48,897 Less treasury stock, at cost: 352,403; 352,403 and 315,903 shares ...... 2,910 2,910 2,334 -------- -------- -------- Total stockholders' equity ............... 50,398 49,151 46,563 -------- -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ..... $ 69,872 $ 67,553 $ 66,951 ======== ======== ========
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: -------------------------- 4/30/96 4/30/95 ----------- ----------- Net sales ................... $ 30,875 $ 27,787 Cost of goods sold .......... 24,789 22,011 ----------- ----------- Gross profit .............. 6,086 5,776 ----------- ----------- Operating expenses Selling ................... 1,754 1,821 Administrative ............ 1,506 1,551 ----------- ----------- 3,260 3,372 ----------- ----------- Operating income ............ 2,826 2,404 ----------- ----------- Other income (expense) Interest .................. (69) (107) Miscellaneous ............. 40 83 ----------- ----------- Income before income taxes .. 2,797 2,380 Income taxes ................ 989 845 ----------- ----------- Net income .................. $ 1,808 $ 1,535 =========== =========== Average number of common and common-equivalent shares outstanding ............... 4,744,685 4,787,037 =========== =========== Net income per common and common-equivalent share ... $ 0.38 $ 0.32 =========== =========== Cash dividends paid per share $ 0.120 $ 0.105 =========== =========== 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: ------------------ 4/30/96 4/30/95 ------- ------- Cash flows from operating activities: Net income .......................................... $ 1,808 $ 1,535 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ................... 1,182 1,080 Provision for losses on accounts receivable ..... 36 41 Equity in earnings of affiliate, net of dividends 0 (50) (Increase) decrease in accounts receivable ...... (2,590) 2,040 (Increase) decrease in inventories .............. (1,712) (3,764) (Increase) decrease in other current assets ..... 80 (15) Increase (decrease) in operating liabilities .... 1,142 (529) Other ........................................... (3) 92 ------- ------- Net cash provided by (used in) operating activities . (57) 430 Cash flows from investing activities: Capital expenditures ................................ (1,322) (1,510) Intangible asset expenditures and other ............. (5) 60 ------- ------- Net cash used in investing activities ............... (1,327) (1,450) Cash flows from financing activities: Issuance of short-term debt ......................... 0 3,000 Payment of short-term debt .......................... 0 (1,500) Long-term debt principal payments ................... (70) (693) Proceeds from exercise of stock options ............. 5 0 Dividends paid ...................................... (566) (498) ------- ------- Net cash provided by (used in) financing activities .............................. (631) 309 ------- ------- Net increase (decrease) in cash and equivalents ..... (2,015) (711) Cash and cash equivalents at beginning of period ...... 3,804 2,304 ------- ------- Cash and cash equivalents at end of period ............ $ 1,789 $ 1,593 ======= ======= Cash paid during the period for: Interest .......................................... $ 74 $ 120 Income taxes ...................................... $ 35 $ 362 The accompanying notes are an integral part of the financial statements. RAVEN INDUSTRIES, INC. AND SUBSIDIARIES NOTE TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The accompanying unaudited 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, 1996 are not necessarily indicative of the results that may be expected for the year ending January 31, 1997. For further information, refer to the consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended January 31, 1996. 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: ----------------------- 4/30/96 4/30/95 ---------- ---------- Net income ........................................... $ 1,808 $ 1,535 Earnings per common share - Primary ........................................ $ 0.38 $ 0.32 ========== ========== Earnings per common share - Fully diluted (1) .............................. $ 0.38 $ 0.32 ========== ========== Average number of common and common equivalent shares: Primary: Weighted average common shares outstanding .............................. 4,716,185 4,734,570 Dilutive effect of exercise of certain stock options ........................ 28,500 52,467 ---------- ---------- Average common shares - Primary ....................................... 4,744,685 4,787,037 ========== ========== Fully diluted (1): Weighted average common shares outstanding .............................. 4,716,185 4,734,570 Dilutive effect of exercise of certain stock options ........................ 28,500 55,098 ---------- ---------- Average common shares - Fully diluted ................................. 4,744,685 4,789,668 ========== ========== (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 The company had no short-term borrowings at April 30, 1996 compared to $1.5 million at April 30, 1995. Cash balances increased to $1.8 million from $1.6 million over the same period. Strong operating cash flow during the twelve months ended April 30, 1996 accounted for much of the improvement in cash and short-term borrowings. Cash used in operations during the first quarter ended April 30, 1996 was $57,000 and compared to $430,000 cash provided in the first quarter of the prior year. The company's seasonal growth in Sewn Products inventories normally requires cash in the first quarter. In the first quarter of the prior fiscal year collection of past due accounts receivable balances at the company's Beta Raven subsidiary offset this growth. Accounts Receivable balances were $18.6 million at April 30, 1996, and $15.5 million one year earlier; the higher balance was due to the timing of sales during the quarter and increased sales levels in the Electronics segment. RESULTS OF OPERATIONS First quarter sales and net income records were set in the quarter ended April 30, 1996. Sales of $30.9 million were up 11 percent compared to the first quarter of the previous year. First quarter net income of $1.8 million was 18 percent higher than the comparable period last year. Earnings per share of $.38 was up 19 percent. Sales increased in every business segment and operating income improved in the Plastics and Sewn Products segments. Electronics segment sales of $12.0 million in the first quarter were up 19 percent over the first quarter of the prior year. Increases of over 50 percent in contract electronics assembly and 13 percent in agricultural electronics for precision farming were partially offset by lower revenues from bakery and feedmill installations. Operating income for this segment in the first quarter was $1.8 million; down 2 percent from the quarter ended April 30, 1995. Start-up costs related to new commercial ventures offset the profit impact of higher sales in this segment. Plastics segment sales were $14.0 million in the quarter ended April 30, 1996; 6 percent higher than the first quarter of the prior year. Sales of plastic sheeting, pickup-truck toppers and research balloons increased, while sales of agricultural plastic tanks declined. The quarter ended April 30, 1995 included approximately $150,000 of losses from the closing of the company's utility-truck body subsidiary. Elimination of these losses combined with reduced pressure on raw material costs helped to improve profitability. Operating income for this segment was $973,000 for the quarter ended April 30, 1996; an increase of 25 percent. Operations at the company's pickup-truck topper plant in Arizona (which became fully operational in the second quarter of the prior fiscal year) improved when compared to the immediately preceding quarter ended January 31, 1996. Sewn products segment sales of $4.9 million in the first quarter were at their seasonal low point and were 9 percent higher than the first quarter of the prior year. Production efficiencies combined with higher sales generated operating income of $85,000; a $257,000 improvement over the first quarter of the prior year. Consolidated gross profits were 5 percent higher than the first quarter of the prior year. The gross profit rate decline from 21 percent of sales to 20 percent was due primarily to startup costs in the Electronics segment. Selling and administrative expenses were down 3 percent from the prior first quarter due to the impact of cost controls and closure of the utility-truck body subsidiary. As a result of the higher sales and lower expenses, operating income of $2.8 million and net income of $1.8 million in the quarter ended April 30, 1996 increased by 18 percent compared to the first quarter of the prior year. 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. Thueld Vice President, Finance, Secretary and Treasurer (Principal Financial and Accounting Officer) DATE: JUNE 3, 1996 EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS JAN-31-1997 APR-30-1996 1,789 0 18,896 340 25,609 47,866 46,188 27,934 69,872 15,913 2,746 0 0 5,069 45,329 69,872 30,875 30,875 24,789 24,789 0 0 69 2,797 989 1,808 0 0 0 1,808 0.38 0.38
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