-----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, Dqr1DR2RAG7kWIYLfb96qh2wwvA2+6EbYcV4EsUABGxCrsnyxlNIG3bNnWxZfO2i vXpCzscs1bcGlkWKgN1IRg== 0000897101-96-001051.txt : 19961205 0000897101-96-001051.hdr.sgml : 19961205 ACCESSION NUMBER: 0000897101-96-001051 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961031 FILED AS OF DATE: 19961204 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: 96675688 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: OCTOBER 31, 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 incorporation (I.R.S. Employer or organization) Identification No.) 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 OCTOBER 31, 1996 - ---------------------------- ---------------------------------- Common Stock 4,740,706 shares RAVEN INDUSTRIES, INC. AND SUBSIDIARIES INDEX PAGE NO. PART I-FINANCIAL INFORMATION Consolidated Balance Sheets-October 31, 1996; January 31, 1996 and October 31, 1995 3 Consolidated Statements of Income-Three months and nine months ended October 31, 1996 and 1995 4 Consolidated Statements of Cash Flows- Nine months ended October 31, 1996 and 1995 5 Note to Consolidated Financial Statements 6 Computations of Earnings Per Common 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) 10/31/96 01/31/96 10/31/95 -------- -------- -------- ASSETS Cash and cash equivalents ................................... $ 1,960 $ 3,804 $ 2,041 Accounts receivable, less allowance for .................... doubtful accounts of $337, $340 and $375 .................. 21,243 16,002 19,820 Inventories: ................................................ Materials ................................................. 16,364 13,317 12,917 In process ................................................ 5,094 5,605 6,249 Finished goods ............................................ 4,944 5,236 4,665 Progress payments ......................................... 0 (261) (495) -------- -------- -------- Total inventories ..................................... 26,402 23,897 23,336 Prepaid expenses and other current assets ................... 365 413 413 Deferred income taxes ....................................... 1,579 1,579 1,414 -------- -------- -------- Total current assets .................................. 51,549 45,695 47,024 -------- -------- -------- Property, plant and equipment ............................... 47,320 45,020 44,804 Less: accumulated depreciation ............................ 29,429 26,951 26,613 -------- -------- -------- Net property, plant & equipment ....................... 17,891 18,069 18,191 Other assets ................................................ 3,619 3,789 3,423 -------- -------- -------- TOTAL ASSETS ................................................ $ 73,059 $ 67,553 $ 68,638 ======== ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY ........................ Current portion of long-term debt ........................... $ 813 $ 813 $ 446 Accounts payable ............................................ 5,748 4,651 6,166 Accrued liabilities and customer advances ................... 10,010 9,307 9,184 -------- -------- -------- Total current liabilities ............................. 16,571 14,771 15,796 Long-term debt, less current portion ........................ 2,618 2,816 3,417 Deferred income taxes ....................................... 815 815 853 Stockholders' equity ........................................ Common stock, $1 par value, authorized shares: 100,000,000; issued: 5,093,109; 5,068,379 and 5,060,261 shares ........ 5,093 5,068 5,060 Paid in capital ........................................... 645 536 396 Retained earnings ......................................... 50,227 46,457 45,450 -------- -------- -------- 55,965 52,061 50,906 Less treasury stock, at cost: ............................. 352,403; 352,403 and 315,903 shares ................... 2,910 2,910 2,334 -------- -------- -------- Total stockholders' equity ............................ 53,055 49,151 48,572 -------- -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .................. $ 73,059 $ 67,553 $ 68,638 ======== ======== ======== 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 FOR THE NINE MONTHS ENDED: MONTHS ENDED: -------------------------------------------------------------- 10/31/96 10/31/95 10/31/96 10/31/95 ----------- ----------- ----------- ----------- Net sales ................... $ 38,943 $ 35,560 $ 101,088 $ 90,600 Cost of goods sold .......... 31,888 29,160 82,549 73,629 ----------- ----------- ----------- ----------- Gross profit .............. 7,055 6,400 18,539 16,971 ----------- ----------- ----------- ----------- Operating expenses Selling ................... 1,903 1,818 5,353 5,254 Administrative ............ 1,554 1,467 4,547 4,523 ----------- ----------- ----------- ----------- 3,457 3,285 9,900 9,777 ----------- ----------- ----------- ----------- Operating income ............ 3,598 3,115 8,639 7,194 ----------- ----------- ----------- ----------- Other income (expense) Interest .................. (83) (86) (224) (297) Miscellaneous ............. 56 28 144 272 ----------- ----------- ----------- ----------- Income before income taxes .. 3,571 3,057 8,559 7,169 Income taxes ................ 1,268 1,085 3,039 2,545 ----------- ----------- ----------- ----------- Net income .................. $ 2,303 $ 1,972 $ 5,520 $ 4,624 =========== =========== =========== =========== Average number of common and common-equivalent shares outstanding ............... 4,774,665 4,785,738 4,759,543 4,790,345 =========== =========== =========== =========== Net income per common and common-equivalent share ... $ 0.48 $ 0.41 $ 1.16 $ 0.97 =========== =========== =========== =========== Cash dividends paid per share $ 0.130 $ 0.120 $ 0.370 $ 0.330 =========== =========== =========== =========== 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 NINE MONTHS ENDED: --------------------- 10/31/96 10/31/95 ------- ------- Cash flows from operating activities: Net income .......................................... $ 5,520 $ 4,624 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ................... 3,529 3,355 Provision for losses on accounts receivable ..... 71 104 Equity in earnings of affiliate, net of dividends (1) (153) (Increase) decrease in accounts receivable ...... (5,312) (2,332) (Increase) decrease in inventories .............. (2,505) (1,233) (Increase) decrease in other current assets ..... 48 (31) Increase (decrease) in operating liabilities .... 1,800 1,179 Other ........................................... 54 (18) ------- ------- Net cash provided by (used in) operating activities . 3,204 5,495 Cash flows from investing activities: Capital expenditures ................................ (3,262) (3,078) Intangible asset expenditures and other ............. 28 121 ------- ------- Net cash used in investing activities ............... (3,234) (2,957) Cash flows from financing activities: Issuance of short-term debt ......................... 0 4,500 Payment of short-term debt .......................... 0 (4,500) Long-term debt principal payments ................... (198) (1,223) Proceeds from exercise of stock options ............. 134 49 Dividends paid ...................................... (1,750) (1,564) Other ............................................... 0 (63) ------- ------- Net cash provided by (used in) financing activities .............................. (1,814) (2,801) ------- ------- Net increase (decrease) in cash and equivalents ..... (1,844) (263) Cash and cash equivalents at beginning of period ...... 3,804 2,304 ------- ------- Cash and cash equivalents at end of period ............ $ 1,960 $ 2,041 ======= ======= Cash paid during the period for: Interest .......................................... $ 229 $ 317 Income taxes ...................................... $ 2,737 $ 2,725 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 and nine month periods ended October 31, 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 FOR THE NINE MONTHS ENDED: MONTHS ENDED: ------------------------- ------------------------- 10/31/96 10/31/95 10/31/96 10/31/95 ---------- ---------- ---------- ---------- Net income ........................................... $ 2,303 $ 1,972 $ 5,520 $ 4,624 Earnings per common share - Primary ........................................ $ 0.48 $ 0.41 $ 1.16 $ 0.97 ========== ========== ========== ========== Earnings per common share - Fully diluted (1) .............................. $ 0.48 $ 0.41 $ 1.16 $ 0.97 ========== ========== ========== ========== Average number of common and common equivalent shares: Primary: Weighted average common shares outstanding .............................. 4,738,928 4,741,231 4,727,145 4,737,627 Dilutive effect of exercise of certain stock options ........................ 35,737 44,507 32,398 52,718 ---------- ---------- ---------- ---------- Average common shares - Primary ....................................... 4,774,665 4,785,738 4,759,543 4,790,345 ========== ========== ========== ========== Fully diluted (1): Weighted average common shares outstanding .............................. 4,738,928 4,741,231 4,727,146 4,737,627 Dilutive effect of exercise of certain stock options ........................ 38,022 44,507 33,159 52,718 ---------- ---------- ---------- ---------- Average common shares - Fully diluted ................................. 4,776,950 4,785,738 4,760,305 4,790,345 ========== ========== ========== ========== (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 $2.0 million of cash at October 31, 1996. This balance was essentially unchanged from one year earlier and was $1.8 million less than the beginning of the current fiscal year. Accounts receivable and inventory balances were higher at October 31, 1996 than October 31, 1995 as a result of higher sales and production volumes. Management does not expect that the company will need to borrow against its short-term credit line during this fiscal year. Borrowings and repayments during the fiscal year ended January 31, 1996 totaled $4.5 million. RESULTS OF OPERATIONS Third quarter sales of $38.9 million were 10 percent higher than the comparable period of the prior year. Net income of $2.3 million ($.48 per share) was 17 percent higher than the $2.0 million reported in the third quarter of the prior year. Most of the improvement in the quarter was from the company's Electronics segment. For the nine month period, sales of $101.1 million and net income of $5.5 million were up 12 and 19 percent, respectively, when compared to the first nine months of the prior fiscal year. Most of the nine month sales increase was in the Electronics segment, and all of the segments reported operating income growth in excess of 15 percent. Electronics segment sales were $10.7 million in the third quarter; a 56 percent increase over the comparable period of the prior year. The continuing transition of the company's contract electronics business from defense to commercial contracts accounted for much of the increase. Additionally, higher demand for flow control precision farming products increased sales. Third quarter operating income of $1.1 million in the Electronics segment was more than double the $511,000 reported one year earlier. The higher sales combined with stronger gross profit rates and relatively flat expenses produced the improved operating performance. Nine month sales of $31.8 million were 35 percent higher than the comparable period last year in the Electronics segment. Operating income of $3.3 million increased more than 15 percent over the same period. Start-up costs related to new commercial ventures reduced gross margin percentages in this segment during the first six months of the current fiscal year. Plastics segment sales of $15.2 million in the third quarter were 2 percent lower than the third quarter of the prior year. Last year, third quarter sales included $1.6 million of flexible films deliveries in response to the severe hurricane season. Sales of pickup-truck toppers and plastic tanks increased over the prior year. Operating income of $925,000 in the third quarter was 28 percent less than the comparable period of the prior year. Lost margin in flexible films sales accounted for most of the decline. Nine month sales of $43.3 million were 6 percent higher than the first nine months of the prior year in the Plastics segment. Nine month operating income of $3.0 million was 21 percent higher than the comparable period of the prior year. More favorable trends in material prices have boosted year-to-date gross profit rates in this segment. Sewn products segment sales were $13.1 million in the third quarter and $25.9 million for the nine month period, both within 2 percent of the comparable figures from the prior year. Softening demand for the company's branded products was partially offset by increased deliveries of product to catalog merchandisers and sales of inflatable display products. Operating income of $1.6 million for the three months and $2.4 million for the nine months was 19 and 26 percent higher, respectively, than the comparable periods last year. The increase in income was due primarily to sales of products with higher gross margins and improved operating efficiencies. Consolidated gross profits increased 10 percent in the third quarter due primarily to higher sales in the Electronics segment. Third quarter selling and administrative expenses increased 5 percent compared to the prior year. Consolidated operating income rose 16 percent, to $3.6 million, as a result. The income tax rate of 35.5 percent was unchanged from 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. Thue Vice President, Finance, Secretary, and Treasurer (Principal Financial and Accounting Officer) DATE: DECEMBER 4, 1996 EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 9-MOS JAN-31-1997 OCT-31-1996 1,960 0 21,580 337 26,402 51,549 47,320 29,429 73,059 16,571 2,618 0 0 5,093 47,962 73,059 101,088 101,088 82,549 82,549 0 0 224 8,559 3,039 5,520 0 0 0 5,520 1.16 1.16
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