Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: NedScheer Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 31  
Subject: Good 1st Qtr. rpt Date: 5/19/2005 11:48 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
excerpt - Ned

Raven Industries Reports Record Sales and Earnings in First Quarter
8:10 AM ET May 19, 2005

Raven Industries, Inc. (Nasdaq: RAVN) reported today that net income for its fiscal first quarter ended April 30, 2005, climbed 32 percent to a record $7.2 million, or 39 cents per share, from the year-ago's 29 cents, making it the best quarter in the 49- year history of Raven.

"Except in our Aerostar segment, where we anticipated some decline, both the topline and operating income of our other three core businesses were very strong in this first quarter," noted Raven President and CEO Ronald M. Moquist. "Our first quarter was particularly bolstered by our Engineered Films Division." This segment generated an increase of 55 percent in sales and 38 percent in operating income by focusing on selling out productive capacity. "Our Autoboom product line, acquired in February from Montgomery Industries, is performing well, benefiting our Flow Controls Division, and we are seeing a nice turnaround in Electronic Systems." Overall, sales for the first quarter climbed 32 percent to $50.7 million.

Segment Performance

Engineered Films Division (EFD) operating income climbed 38 percent to $4.1 million from $3.0 million a year ago. This division increased sales 55 percent to $16.1 million from $10.4 million in the year-earlier period. Shipments included residual demand for disaster film, while the division also saw significant growth in demand for pit liners for oil exploration. Higher product pricing offset some of the increases in raw material costs, but gross margins still declined from 33.7 percent to 30.2 percent of sales.

Raven's Flow Controls Division (FCD) "is off to a good start for the year," Moquist said, with first-quarter sales increasing 22 percent to $16.1 million from $13.2 million. Operating income was up 15 percent to $5.9 million from $5.1 million last year. Sales of the division's newly acquired automatic boom height control system, called Autoboom, were strong, reaching more than $1 million. The executive noted, however, that the first quarter is the seasonal peak for the year for Flow Controls and that the acquisition may make that seasonality more pronounced. FCD saw steady ongoing demand for its ag products, including SmarTrax, its GPS-based automatic steering system. Operating profit margins reflect higher spending for the division's continuing investment in its research, product development and Precision Agriculture marketing initiatives.

The Electronic Systems Division (ESD) enjoyed a "nice recovery" in sales, which were up 47 percent to $13.3 million from a depressed $9.1 million a year earlier. Operating profits climbed to $2.1 million from $702,000 in the year- ago period. CEO Moquist said that Raven delivered a lower percentage of startup products and had improved operating efficiencies and throughput in the latest quarter.

Aerostar "was in line with expectations," with sales declining nine percent to $5.2 million from $5.7 million while operating income fell to $937,000 vs. the $1.2 million reported a year earlier. A much lower level of shipments of cargo parachutes was primarily the cause of lower revenues. There was, however, an increase in shipments of high-altitude research balloons during the first quarter. At this point, Aerostar no longer expects to receive follow-on parachute orders from the US Army for delivery in the current fiscal year. "The Army is not moving forward as quickly as we originally expected," Moquist explained, "but we believe our bids will be competitive and orders under long-term contracts will be issued for fiscal 2007 delivery."

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Smuggling Rice and Garlic
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement