-----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, BUXiLj66p1zOkYJktvjioEHpPvEhVydy5GGGNhGRI5MWtpkuurC/Cq9wSBIVzFvG Atu0maGxVBV1FUNlzhKDiA== 0000897101-97-000664.txt : 19970611 0000897101-97-000664.hdr.sgml : 19970611 ACCESSION NUMBER: 0000897101-97-000664 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970430 FILED AS OF DATE: 19970610 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: 001-07982 FILM NUMBER: 97621418 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, 1997 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, 1997 - ----- -------------------------------- Common Stock 4,837,550 shares RAVEN INDUSTRIES, INC. AND SUBSIDIARIES INDEX PAGE NO. PART I-FINANCIAL INFORMATION Consolidated Balance Sheets as of April 30, 1997, January 31, 1997 and April 30, 1996 3 Consolidated Statements of Income for the three months ended April 30, 1997 and 1996 4 Consolidated Statements of Cash Flows for the three months ended April 30, 1997 and 1996 5 Notes to Consolidated Financial Statements 6 Computation 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)
4/30/97 01/31/97 4/30/96 ------- ------- ------- ASSETS Cash and cash equivalents ................................... $ 2,055 $ 3,439 $ 1,789 Accounts receivable, less allowance for doubtful accounts of $342, $340 and $340 .................. 23,001 25,637 18,556 Inventories: Materials ................................................. 17,696 16,276 14,494 In process ................................................ 4,783 4,574 5,286 Finished goods ............................................ 5,864 4,275 5,829 ------- ------- ------- Total inventories ..................................... 28,343 25,125 25,609 Prepaid expenses and other current assets ................... 328 431 333 Deferred income taxes ....................................... 2,064 2,064 1,579 ------- ------- ------- Total current assets .................................. 55,791 56,696 47,866 ------- ------- ------- Property, plant and equipment ............................... 49,588 48,315 46,188 Less: accumulated depreciation ............................ 31,183 30,173 27,934 ------- ------- ------- Net property, plant and equipment ..................... 18,405 18,142 18,254 Other assets, net ........................................... 5,852 5,824 3,752 ------- ------- ------- TOTAL ASSETS ................................................ $80,048 $80,662 $69,872 ======= ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt ........................... $ 1,766 $ 1,366 $ 813 Accounts payable ............................................ 6,526 7,849 5,911 Accrued liabilities and customer advances ................... 10,125 10,801 9,189 ------- ------- ------- Total current liabilities ............................. 18,417 20,016 15,913 Long-term debt, less current portion ........................ 2,639 3,181 2,746 Deferred income taxes ....................................... 736 736 815 Stockholders' equity Common stock, $1 par value, authorized shares: 100,000,000; issued: 5,189,953; 5,187,961 and 5,068,905 shares ........ 5,190 5,188 5,069 Paid in capital ........................................... 2,693 2,673 540 Retained earnings ......................................... 53,283 51,778 47,699 ------- ------- ------- 61,166 59,639 53,308 Less treasury stock, at cost: 352,403 shares ........................................ 2,910 2,910 2,910 ------- ------- ------- Total stockholders' equity ............................ 58,256 56,729 50,398 ------- ------- ------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .................. $80,048 $80,662 $69,872 ======= ======= =======
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: -------------------------- 4/30/97 4/30/96 ----------- ----------- Net sales ................... $ 35,666 $ 30,875 Cost of goods sold .......... 28,839 24,789 ----------- ----------- Gross profit .............. 6,827 6,086 ----------- ----------- Operating expenses Selling ................... 1,936 1,754 Administrative ............ 1,603 1,506 ----------- ----------- Operating income ....... 3,288 2,826 ----------- ----------- Interest expense ............ (88) (69) Other income, net ........... 134 40 ----------- ----------- Income before income taxes 3,334 2,797 Income taxes ................ 1,200 989 ----------- ----------- Net income ................ $ 2,134 $ 1,808 =========== =========== Average number of common and common-equivalent shares outstanding ............... 4,865,520 4,744,685 =========== =========== Net income per common and common-equivalent share ... $ 0.44 $ 0.38 =========== =========== Cash dividends paid per share $ 0.130 $ 0.120 =========== =========== 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: ------------------ 4/30/97 4/30/96 ------- ------- Cash flows from operating activities: Net income .......................................... $ 2,134 $ 1,808 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ................... 1,325 1,182 Provision for losses on accounts receivable ..... 34 36 Equity in earnings of affiliate, net of dividends (100) 0 (Increase) decrease in accounts receivable ...... 2,602 (2,590) (Increase) decrease in inventories .............. (3,218) (1,712) (Increase) decrease in other current assets ..... 103 80 Increase (decrease) in operating liabilities .... (1,999) 1,142 Other ........................................... 25 (3) ------- ------- Net cash provided by (used in) operating activities . 906 (57) Cash flows from investing activities: Capital expenditures ................................ (1,539) (1,322) Intangible asset expenditures and other ............. (2) (5) ------- ------- Net cash provided by (used in) investing activities . (1,541) (1,327) Cash flows from financing activities: Long-term debt principal payments ................... (142) (70) Proceeds from exercise of stock options ............. 22 5 Dividends paid ...................................... (629) (566) ------- ------- Net cash provided by (used in) financing activities . (749) (631) ------- ------- Net increase (decrease) in cash and equivalents ..... (1,384) (2,015) Cash and cash equivalents at beginning of period ...... 3,439 3,804 ------- ------- Cash and cash equivalents at end of period ............ $ 2,055 $ 1,789 ======= ======= Cash paid during the period for: Interest .......................................... $ 95 $ 74 Income taxes ...................................... $ 320 $ 35 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. PART I - FINANCIAL INFORMATION RAVEN INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. 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 of the Securities and Exchange Commission (SEC). 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, 1997 are not necessarily indicative of the results that may be expected for the year ending January 31, 1998. 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, 1997. 2. In March 1997, the Financial Accounting Standards Board issued Statement No. 128 "Earnings per Share," which the Company will adopt effective for its fiscal 1998 year end reporting. The Company will be required to report basic net income per share based on weighted average common shares outstanding, without considering common equivalent shares, and diluted net income per share based on weighted average common and common equivalent shares outstanding. Diluted net income per share would be equivalent to the Company's current reporting of net income per common and common-equivalent share. PART I - FINANCIAL INFORMATION RAVEN INDUSTRIES, INC. AND SUBSIDIARIES COMPUTATIONS OF EARNINGS PER COMMON SHARE (UNAUDITED) (Dollars in thousands except per-share data) FOR THE THREE MONTHS ENDED: ----------------------- 4/30/97 4/30/96 ---------- ---------- Net income ........................................... $ 2,134 $ 1,808 ========== ========== Earnings per common share - Primary ........................................ $ 0.44 $ 0.38 ========== ========== Earnings per common share - Fully diluted (1) .............................. $ 0.44 $ 0.38 ========== ========== Average number of common and common equivalent shares: Primary: Weighted average common shares outstanding .............................. 4,836,975 4,716,185 Dilutive effect of exercise of certain stock options ........................ 28,545 28,500 ---------- ---------- Average common shares - Primary ....................................... 4,865,520 4,744,685 ========== ========== Fully diluted (1): Weighted average common shares outstanding .............................. 4,836,975 4,716,185 Dilutive effect of exercise of certain stock options ........................ 28,545 28,500 ---------- ---------- Average common shares - Fully diluted ................................. 4,865,520 4,744,685 ========== ========== (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%. PART I - FINANCIAL INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FINANCIAL CONDITION The company's cash balance was $2.1 million at April 30, 1997 and was $266,000 higher than one year earlier. For the first three months of the current fiscal year the company's cash flow from operations was $906,000; a $963,000 improvement over the comparable period in the prior year. Higher earnings and collection of year-end accounts receivable balances accounted for much of the improvement. Accounts receivable balances at April 30, 1997 were $4.4 million higher than one year earlier due primarily to the higher sales level. The company's capital resources continue to be sufficient to fund all operating and investing activities. RESULTS OF OPERATIONS First quarter records were set for sales and net income during the quarter ended April 30, 1997. Sales increased by 16 percent over the previous record set one year earlier and totaled $35.7 million. Net income of $2.1 million was 18 percent higher than the comparable period of the prior year. Earnings per share of $.44 increased 16 percent. The number of average shares outstanding increased by 121,000 due primarily to the issuance of shares in connection with the purchase of Norcore Plastics, Inc. in January 1997. Sales and operating income increased in every business segment. Electronics segment sales of $12.2 million in the first quarter were up one percent over the first quarter of the prior year. Sales of flow control devices for precision farming increased slightly, but were nearly $1 million below management expectations as new product introductions did not result in additional sales. Feedmill automation and contract manufacturing revenues were relatively flat. First quarter Electronics segment operating income of $2.0 million was 13 percent higher than the comparable period of the prior year. Operating income for the quarter ended April 30, 1996 was reduced by start-up costs related to product introductions and new contract manufacturing customers. Plastics segment sales were $17.9 million in the quarter ended April 30, 1997, compared to $14.0 million one year earlier. The acquisition of Norcore Plastics, Inc. in January 1997 contributed $2.7 million to revenues. Sales of plastic tanks, flexible films and pickup-truck toppers all increased. Operating income in this segment was $987,000 in the first quarter, a one percent increase over the prior year's first quarter. The impact of higher sales was substantially offset by business integration costs and production inefficiencies, resulting in a lower gross profit rate. Sewn Products segment sales of $5.6 million in the first quarter were at their seasonal low point and were 14 percent higher than the comparable period of the prior year. The higher sales and production efficiencies raised operating income from $85,000 last year in the first quarter to $306,000 this year. Consolidated gross profits increased by 12 percent over the first quarter of the prior year. Gross profit rate increases in the Electronics and Sewn Products segments were offset by a decline in the Plastics segment. The first quarter consolidated gross profit rate was 19.7 percent last year and 19.1 percent this year. Selling and administrative expenses declined from 10.6 percent of sales to 9.9 percent. The profit impact of higher sales increased first quarter operating and net income by 16 and 18 percent, respectively, when 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 SEC 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: JUNE 9, 1997 EX-27 2
5 1,000 3-MOS JAN-31-1998 APR-30-1997 2,055 0 23,343 342 28,343 55,791 49,588 31,183 80,048 18,417 2,639 0 0 5,190 53,066 80,048 35,666 35,666 28,839 28,839 0 0 88 3,334 1,200 2,134 0 0 0 2,134 0.44 0.44
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