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Raven Industries Reports 2012 Q1 Results

Posted on | May 19, 2011 | Comments Off

Great report from Raven Industries.  You can read the press release here.

Here are a few earnings highlights:

  • Sales increased 19% to $101.5 million, up front $85 million in the same period a year ago.
  • Net income for the quarter increased 21% to $15.7 million or $.86 per diluted share, compared to $12.9 million or $.72 per diluted share
  • The strong Ag market continues to drive strong sales for Raven’s Applied Technology Division which delivered sales up 19% to $39.1 million.  Operating income for the division increased 22%.
  • The Engineered Films Division posted sales of $30.1 million an increase of 17% from the year ago quarter.
  • Aerostar increased sales 29% to $15.1 million
  • Electronic Systems grew sales 20% to $19.5 million

Other relevant items:

  • Cash and investment balances as of April 30, 2011 was $42.6 million, down from $49.5 million from a year ago.  Raven paid a special $22.5 million special cash dividend in the month of September last year which accounts for the most of the drop in cash.
  • Q1 cash flows increased to $11 million from $10.3 million last year.
  • Raven has no debt
  • Raven has increased its dividend 25 straight years, and paid a dividend for 39 straight years

CEO Daniel A. Rykhus on long term growth:

“Continued careful and strategic investment is key to sustaining growth at Raven. We are pursuing growth markets — precision agriculture, engineered films and situational surveillance — where we have the opportunity to gain share with new products and higher production capacity. We expect challenges in the form of market and price volatility will continue. Increased investment spending for research, capacity and capabilities will tend to temper the bottom line this year relative to top-line growth, but we believe we can achieve our long-term objectives of 12 to 15 percent net income improvement. At the same time, we plan to double our investment in plant and equipment, reaching the $30 million range. We’re investing today to generate future growth in sales, earnings and cash flow.”