Financial Releases

Raven Industries Reports Second Quarter Fiscal 2022 Results

August 25, 2021 at 4:30 PM EDT

SIOUX FALLS, S.D.--(BUSINESS WIRE)--Aug. 25, 2021-- Raven Industries, Inc. (the Company; NASDAQ:RAVN) today reported financial results for the second quarter that ended July 31, 2021.

Second Quarter Fiscal 2022 Noteworthy Items:

  • Company entered into an agreement to be acquired by CNH Industrial N.V. in an all-cash transaction that values the Company at approximately $2.1 billion, or $58.00 per share;
  • Consolidated net sales were $114.4 million, an increase of 34.3 percent versus the prior year;
  • Company reported diluted earnings per share of $0.19, an increase of 18.8 percent versus the prior year;
  • Second quarter results included $4.9 million pre-tax and $3.8 million after-tax of acquisition related expenses, or $0.10 per diluted share;
  • Company invested $5.2 million pre-tax and $4.1 million after-tax to advance Raven Autonomy™, or $0.11 per diluted share;
  • Net sales in Applied Technology increased 25.6 percent versus the prior year, driven by growth in both the OEM and aftermarket channels;
  • Engineered Films' net sales increased 57.5 percent versus the prior year as the division's end-markets continued their recovery from the adverse effects of the global pandemic, leading to year-over-year growth across all end-markets;
  • Aerostar delivered year-over-year growth within its core stratospheric and radar products, offset by the conclusion of Loon activity and timing of aerostat sales;
  • Aerostar acquired intellectual property and patents directly related to stratospheric balloon technology, augmenting its capabilities in autonomous constellations of high-altitude balloons.

Second Quarter Results:

Consolidated net sales for the second quarter of fiscal 2022 were $114.4 million, up 34.3 percent versus the second quarter of fiscal 2021. The year-over-year growth was driven by increased sales in both Applied Technology and Engineered Films. In Applied Technology, demand for its precision ag technology remained robust, leading to strong year-over-year growth despite global supply chain constraints. In Engineered Films, the division experienced growth across all end-markets, led by construction, agriculture and geomembrane (including the energy sub-market), as market conditions continued to improve throughout the quarter. Aerostar's growth in core stratospheric and radar platforms was offset by the conclusion of Loon activity and a decrease in aerostat sales due to timing of contracts.

Consolidated operating income for the second quarter of fiscal 2022 was $8.3 million, versus operating income of $6.1 million in the second quarter of fiscal 2021. Included in the results for the second quarter of fiscal 2022 was $5.2 million of investment in research and development and selling expenses to advance Raven Autonomy™, compared to $4.0 million in the prior year. The second quarter of fiscal 2022 results also included $4.9 million of expenses associated with the proposed acquisition by CNH Industrial N.V. The Company generated significant year-over-year operating income growth within its core businesses driven by increased sales volume and corresponding operating leverage.

Net income for the second quarter of fiscal 2022 was $6.9 million, or $0.19 per diluted share, compared to $5.8 million, or $0.16 per diluted share, in last year's second quarter. The Company's strategic investment in Raven Autonomy™ reduced net income attributable to Raven by $4.1 million, or $0.11 per diluted share, in the second quarter of fiscal 2022 compared to $3.1 million, or $0.09 per diluted share, in the prior year. Expenses related to the proposed acquisition by CNH Industrial reduced net income attributable to Raven by $3.8 million, or $0.10 per diluted share in the current year's second quarter.

Balance Sheet and Cash Flow:

At the end of the second quarter of fiscal 2022, cash and cash equivalents totaled $13.1 million, decreasing $4.7 million versus the previous quarter. The sequential decrease in cash was driven by an increase in working capital needs as the Company fulfills substantial demand in Applied Technology and Engineered Films. Total liquidity3 at the end of the second quarter totaled $113.1 million.

Applied Technology Division:

Net sales for Applied Technology in the second quarter of fiscal 2022 were $44.6 million, increasing $9.1 million or 25.6 percent versus the second quarter of the prior year. Demand across the division's product portfolio remained very strong in the second quarter as favorable ag market conditions continued. These market conditions, combined with the division's industry-leading technology portfolio, led to year-over-year revenue growth in both the OEM and aftermarket channels.

Division operating income in the second quarter of fiscal 2022 was $8.5 million, up $2.0 million or 30.6 percent versus the second quarter of fiscal 2021. Included in the results was investment in research and development and selling expenses to advance Raven Autonomy™ of $5.2 million on a pre-tax basis, an increase of $1.2 million versus the prior year. Division operating income in the second quarter was adversely impacted by increased input costs associated with challenging supply chain conditions and material shortages.

Engineered Films Division:

Net sales for Engineered Films in the second quarter of fiscal 2022 were $57.1 million, up $20.8 million or 57.5 percent year-over-year. The division generated year-over-year sales growth across all end-markets led by construction, agriculture and geomembrane (including the energy sub-market). The year-over-year growth was driven by improved market conditions as the global economy continued its recovery from the prior year along with intentional pricing actions implemented to offset rising input costs.

Division operating income in the second quarter of fiscal 2022 was $12.4 million, up $7.9 million or 176.8 percent versus the second quarter of fiscal 2021. The year-over-year increase was driven by higher sales volume and corresponding positive operating leverage.

Aerostar Division:

Net sales for Aerostar in the second quarter of fiscal 2022 were $12.8 million, down $0.7 million or 5.0 percent versus the second quarter of fiscal 2021. The division generated strong year-over-year revenue growth for defense related stratospheric balloon systems as it conducted multiple successful flight campaigns for Department of Defense customers. This growth in stratospheric balloon systems was offset by the conclusion of Loon activity announced in the fourth quarter of fiscal 2021 and a decrease in aerostat revenue due to timing of government contracts.

Division operating income was $2.0 million in the second quarter of fiscal 2022, up $0.2 million versus the second quarter of fiscal 2021. The year-over-year improvement in operating income was driven by product mix and cost control measures.

Raven Industries Acquisition by CNH Industrial:

On June 20, 2021, the Company entered into a merger agreement with CNH Industrial N.V. Under the terms of the agreement, CNH Industrial will acquire 100% of the capital stock of Raven Industries, Inc. for $58.00 per share, representing a $2.1 billion enterprise value. Closing is expected to occur in the fourth quarter of calendar 2021, subject to the satisfaction of customary closing conditions, including approval of Raven shareholders and receipt of regulatory approvals.

"Our Board and management team is excited about the partnership with CNH Industrial," said Dan Rykhus, President and CEO. "This partnership will further accelerate our ability to advance ag technology while also maximizing shareholder value. The process of completing the transaction is going well, and we remain on track to close during the fourth quarter of the current year."

Year-to-Date Performance:

"I am very proud of our performance in the first half of fiscal 2022. Our team in Applied Technology has done an outstanding job navigating significant supply chain challenges to drive year-over-year revenue growth both domestically and internationally through our OEM and aftermarket channels. In addition, we have taken key steps in our Raven Autonomy™ strategy through advancing the technology and commercializing the initial use case of the OMNiDRIVE™ solution. In Engineered Films, volatility in resin pricing has created challenges, but we have executed extremely well in capitalizing on the economic rebound to drive substantial revenue growth across all of our end-markets. In Aerostar, we successfully executed multiple flight campaigns for our Department of Defense customers as we continue to showcase the capabilities of our industry-leading technology," concluded Rykhus.

Additional Information:

Per normal practices, the Company will not be hosting a conference call in connection with quarterly earnings.

Regulation G:

The information presented in this earnings release regarding consolidated and segment earnings before interest, taxes, depreciation, and amortization (EBITDA), do not conform to generally accepted accounting principles (GAAP) and should not be construed as an alternative to the reported results determined in accordance with GAAP. Additionally, management has included this non-GAAP information to assist in understanding the operating performance of the Company and its operating segments as well as the comparability of results. The non-GAAP information provided may not be consistent with the methodologies used by other companies. All non-GAAP information is reconciled with reported GAAP results in the tables below.

About Raven Industries, Inc.:

Raven Industries (NASDAQ: RAVN) provides innovative, high-value products and systems that solve great challenges throughout the world. Raven is a leader in precision agriculture, high-performance specialty films, and aerospace and defense solutions, and the Company's groundbreaking work in autonomous systems is unlocking new possibilities in areas like farming, national defense, and scientific research. Since 1956, Raven has designed, produced, and delivered exceptional solutions, earning the Company a reputation for innovation, product quality, high performance, and unmatched service. For more information, visit http://ravenind.com.

Forward-Looking Statements:

Certain statements contained in this report are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the expectations, beliefs, intentions or strategies regarding the future, not past or historical events. Without limiting the foregoing, the words "anticipates," "believes," "expects," "intends," "may," "plans," "should," "estimate," "predict," "project," "would," "will," "potential," and similar expressions are intended to identify forward-looking statements. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. The Company intends that all forward-looking statements be subject to the safe harbor provisions of the Private Securities Litigation Reform Act.

Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions when made, there is no assurance that such assumptions are correct or that these expectations will be achieved. Assumptions involve important risks and uncertainties that could significantly affect results in the future. This includes the risk of the occurrence of any event, change, or other circumstance that could delay or prevent closing of the proposed transaction, or the merger, or give rise to the termination of the Agreement and Plan of Merger between the Company and CNH Industrial N.V. In addition, other risks and uncertainties include, but are not limited to, those relating to weather conditions, which could affect sales and profitability in some of the Company's primary markets, such as agriculture and construction and oil and gas drilling; or changes in raw material availability, commodity prices, competition, technology or relationships with the Company's largest customers, risks and uncertainties relating to the impacts of the COVID-19 pandemic, development of new technologies to satisfy customer requirements, possible development of competitive technologies, ability to scale production of new products without negatively impacting quality and cost, risks of operating in foreign markets, risks relating to acquisitions, including risks of integration or unanticipated liabilities or contingencies, and ability to finance investment and net working capital needs for new development projects, any of which could adversely impact any of the Company's product lines, risks of litigation, as well as other risks described in Item 1A., Risk Factors, of the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2021. The foregoing list is not exhaustive and the Company disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements. Past financial performance may not be a reliable indicator of future performance and historical trends should not be used to anticipate results or trends in future periods.

 

 

RAVEN INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars and shares in thousands, except earnings per share) (Unaudited)

 

 

 

Three Months Ended July 31,

 

 

Six Months Ended July 31,

 

 

2021

 

2020

 

Fav (Un)
Change

 

 

2021

 

2020

 

Fav (Un)
Change

Net sales

 

$

114,426

 

 

$

85,179

 

 

34.3

%

 

 

$

226,912

 

 

$

171,675

 

 

32.2

%

Cost of sales

 

72,257

 

 

55,047

 

 

 

 

 

144,757

 

 

113,076

 

 

 

Gross profit

 

42,169

 

 

30,132

 

 

39.9

%

 

 

82,155

 

 

58,599

 

 

40.2

%

Gross profit percentage

 

36.9

%

 

35.4

%

 

 

 

 

36.2

%

 

34.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

12,465

 

 

10,808

 

 

 

 

 

23,927

 

 

21,313

 

 

 

Selling, general, and administrative expenses

 

21,370

 

 

13,181

 

 

 

 

 

38,321

 

 

27,204

 

 

 

Operating income

 

8,334

 

 

6,143

 

 

35.7

%

 

 

19,907

 

 

10,082

 

 

97.5

%

Operating income percentage

 

7.3

%

 

7.2

%

 

 

 

 

8.8

%

 

5.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

(276

)

 

377

 

 

 

 

 

(246

)

 

(91

)

 

 

Income before income taxes

 

8,058

 

 

6,520

 

 

23.6

%

 

 

19,661

 

 

9,991

 

 

96.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

1,205

 

 

701

 

 

 

 

 

3,188

 

 

223

 

 

 

Net income

 

6,853

 

 

5,819

 

 

17.8

%

 

 

16,473

 

 

9,768

 

 

68.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to the noncontrolling interest

 

 

 

 

 

 

 

 

 

 

(98

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Raven Industries, Inc.

 

$

6,853

 

 

$

5,819

 

 

17.8

%

 

 

$

16,473

 

 

$

9,866

 

 

67.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

$

0.19

 

 

$

0.16

 

 

18.8

%

 

 

$

0.46

 

 

$

0.27

 

 

70.4

%

- Diluted

 

$

0.19

 

 

$

0.16

 

 

18.8

%

 

 

$

0.45

 

 

$

0.27

 

 

66.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

36,086

 

 

35,996

 

 

 

 

 

36,061

 

 

35,962

 

 

 

- Diluted

 

36,470

 

 

36,082

 

 

 

 

 

36,447

 

 

36,079

 

 

 

 

 

RAVEN INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands) (Unaudited)

 

 

 

July 31

 

January 31

 

July 31

 

 

2021

 

2021

 

2020

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

13,077

 

 

$

32,938

 

 

$

15,813

 

Accounts receivable, net

 

70,591

 

 

48,669

 

 

53,032

 

Inventories, net

 

75,692

 

 

52,703

 

 

51,302

 

Other current assets

 

8,550

 

 

5,776

 

 

5,814

 

Total current assets

 

167,910

 

 

140,086

 

 

125,961

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

108,883

 

 

106,007

 

 

104,937

 

Goodwill

 

108,574

 

 

107,677

 

 

105,703

 

Intangible assets, net

 

47,470

 

 

44,585

 

 

44,175

 

Other assets

 

11,395

 

 

11,016

 

 

11,001

 

TOTAL ASSETS

 

$

444,232

 

 

$

409,371

 

 

$

391,777

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Accounts payable

 

$

21,588

 

 

$

18,639

 

 

$

17,960

 

Accrued and other liabilities

 

44,261

 

 

33,399

 

 

23,435

 

Total current liabilities

 

65,849

 

 

52,038

 

 

41,395

 

 

 

 

 

 

 

 

Long-term debt

 

2,849

 

 

1,981

 

 

378

 

Other liabilities

 

23,010

 

 

23,997

 

 

32,453

 

Total liabilities

 

91,708

 

 

78,016

 

 

74,226

 

 

 

 

 

 

 

 

Shareholders' equity

 

352,524

 

 

331,355

 

 

317,551

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

$

444,232

 

 

$

409,371

 

 

$

391,777

 

Net Working Capital and Net Working Capital Percentage1

Accounts receivable, net

 

$

70,591

 

 

$

48,669

 

 

$

53,032

 

Plus: Inventories, net

 

 

75,692

 

 

 

52,703

 

 

 

51,302

 

Less: Accounts payable

 

 

21,588

 

 

 

18,639

 

 

 

17,960

 

Net working capital1

 

$

124,695

 

 

$

82,733

 

 

$

86,374

 

 

 

 

 

 

 

 

Annualized net sales

 

$

457,704

 

 

$

320,308

 

 

$

340,716

 

Net working capital percentage1

 

 

27.2

%

 

 

25.8

%

 

 

25.4

%

 

 

RAVEN INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands) (Unaudited)

 

 

 

Six Months Ended July 31,

 

 

 

2021

 

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

Net income

 

$

16,473

 

 

$

9,768

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

Depreciation and amortization

 

 

9,100

 

 

 

8,478

 

Other operating activities, net

 

 

(30,686

)

 

 

12,338

 

Net cash provided by (used in) operating activities

 

 

(5,113

)

 

 

30,584

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Capital expenditures

 

 

(10,044

)

 

 

(7,783

)

Proceeds from sale or maturities of investments

 

 

83

 

 

 

336

 

Purchases of investments

 

 

(733

)

 

 

(146

)

Proceeds from sale of assets

 

 

263

 

 

 

251

 

Other investing activities, net

 

 

(3,784

)

 

 

24

 

Net cash used in investing activities

 

 

(14,215

)

 

 

(7,318

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Dividends paid

 

 

 

 

 

(9,318

)

Proceeds from debt

 

 

10,815

 

 

 

50,150

 

Repayments of debt

 

 

(10,000

)

 

 

(50,000

)

Payments for redeemable noncontrolling interest

 

 

 

 

 

(17,853

)

Other financing activities, net

 

 

(1,300

)

 

 

(959

)

Net cash used in financing activities

 

 

(485

)

 

 

(27,980

)

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

(48

)

 

 

(180

)

 

 

 

 

 

Net (decrease) in cash and cash equivalents

 

 

(19,861

)

 

 

(4,894

)

Cash and cash equivalents at beginning of period

 

 

32,938

 

 

 

20,707

 

Cash and cash equivalents at end of period

 

$

13,077

 

 

$

15,813

 

 

 

 

RAVEN INDUSTRIES, INC.

SALES AND OPERATING INCOME BY SEGMENT

(Dollars in thousands) (Unaudited)

 

 

 

Three Months Ended July 31,

 

Six Months Ended July 31,

 

 

 

2021

 

 

 

2020

 

 

Fav (Un)
Change

 

 

2021

 

 

 

2020

 

 

Fav (Un)
Change

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Applied Technology

 

$

44,601

 

 

$

35,502

 

 

25.6

%

 

$

99,469

 

 

$

77,509

 

 

28.3

%

Engineered Films

 

 

57,087

 

 

 

36,252

 

 

57.5

%

 

 

105,852

 

 

 

69,650

 

 

52.0

%

Aerostar

 

 

12,787

 

 

 

13,465

 

 

(5.0

)%

 

 

21,674

 

 

 

24,616

 

 

(12.0

)%

Intersegment eliminations

 

 

(49

)

 

 

(40

)

 

 

 

 

(83

)

 

 

(100

)

 

 

Consolidated net sales

 

$

114,426

 

 

$

85,179

 

 

34.3

%

 

$

226,912

 

 

$

171,675

 

 

32.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

Applied Technology

 

$

8,505

 

 

$

6,511

 

 

30.6

%

 

$

21,692

 

 

$

15,450

 

 

40.4

%

Engineered Films

 

 

12,357

 

 

 

4,465

 

 

176.8

%

 

 

19,124

 

 

 

6,072

 

 

215.0

%

Aerostar

 

 

1,962

 

 

 

1,751

 

 

12.1

%

 

 

2,551

 

 

 

2,044

 

 

24.8

%

Intersegment eliminations

 

 

5

 

 

 

11

 

 

 

 

 

(2

)

 

 

51

 

 

 

Total segment income

 

$

22,829

 

 

$

12,738

 

 

79.2

%

 

$

43,365

 

 

$

23,617

 

 

83.6

%

Corporate expenses

 

 

(14,495

)

 

 

(6,595

)

 

(119.8

)%

 

 

(23,458

)

 

 

(13,535

)

 

(73.3

)%

Consolidated operating income

 

$

8,334

 

 

$

6,143

 

 

35.7

%

 

$

19,907

 

 

$

10,082

 

 

97.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income percentages

 

 

 

 

 

 

 

 

 

 

 

 

Applied Technology

 

 

19.1

%

 

 

18.3

%

 

80bps

 

 

21.8

%

 

 

19.9

%

 

190bps

Engineered Films

 

 

21.6

%

 

 

12.3

%

 

930bps

 

 

18.1

%

 

 

8.7

%

 

940bps

Aerostar

 

 

15.3

%

 

 

13.0

%

 

230bps

 

 

11.8

%

 

 

8.3

%

 

350bps

Consolidated operating income

 

 

7.3

%

 

 

7.2

%

 

10bps

 

 

8.8

%

 

 

5.9

%

 

290bps

 

 

RAVEN INDUSTRIES, INC.
EBITDA REGULATION G RECONCILIATION2
(Dollars in thousands) (Unaudited)

 
 

 

 

Three Months Ended July 31,

 

Six Months Ended July 31,

 

 

 

 

 

 

Fav (Un)

 

 

 

 

 

Fav (Un)

 

 

 

2021

 

 

 

2020

 

 

Change

 

 

2021

 

 

 

2020

 

 

Change

Applied Technology

 

 

 

 

 

 

 

 

 

 

 

 

Reported Operating income

 

$

8,505

 

 

$

6,511

 

 

30.6

%

 

$

21,692

 

 

$

15,450

 

 

40.4

%

Plus: Depreciation and amortization

 

 

1,535

 

 

 

1,221

 

 

25.7

%

 

 

3,001

 

 

 

2,321

 

 

29.3

%

ATD EBITDA

 

$

10,040

 

 

$

7,732

 

 

29.8

%

 

$

24,693

 

 

$

17,771

 

 

39.0

%

ATD EBITDA % of Net Sales

 

 

22.5

%

 

 

21.8

%

 

 

 

 

24.8

%

 

 

22.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Films 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Operating income

 

$

12,357

 

 

$

4,465

 

 

176.8

%

 

$

19,124

 

 

$

6,072

 

 

215.0

%

Plus: Depreciation and amortization

 

 

2,457

 

 

 

2,424

 

 

1.4

%

 

 

4,916

 

 

 

4,836

 

 

1.7

%

EFD EBITDA

 

$

14,814

 

 

$

6,889

 

 

115.0

%

 

$

24,040

 

 

$

10,908

 

 

120.4

%

EFD EBITDA % of Net Sales

 

 

25.9

%

 

 

19.0

%

 

 

 

 

22.7

%

 

 

15.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerostar

 

 

 

 

 

 

 

 

 

 

 

 

Reported Operating income

 

$

1,962

 

 

$

1,751

 

 

12.1

%

 

$

2,551

 

 

$

2,044

 

 

24.8

%

Plus: Depreciation and amortization

 

 

261

 

 

 

248

 

 

5.2

%

 

 

488

 

 

 

487

 

 

0.2

%

Aerostar EBITDA

 

$

2,223

 

 

$

1,999

 

 

11.2

%

 

$

3,039

 

 

$

2,531

 

 

20.1

%

Aerostar EBITDA % of Net Sales

 

 

17.4

%

 

 

14.8

%

 

 

 

 

14.0

%

 

 

10.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Raven Industries Inc.

 

$

6,853

 

 

$

5,819

 

 

17.8

%

 

$

16,473

 

 

$

9,866

 

 

67.0

%

Interest (income) expense, net

 

 

(15

)

 

 

136

 

 

 

 

 

79

 

 

 

280

 

 

 

Income tax expense

 

 

1,205

 

 

 

701

 

 

 

 

 

3,188

 

 

 

223

 

 

 

Plus: Depreciation and amortization

 

 

4,589

 

 

 

4,302

 

 

 

 

 

9,100

 

 

 

8,478

 

 

 

Consolidated EBITDA

 

$

12,632

 

 

$

10,958

 

 

15.3

%

 

$

28,840

 

 

$

18,847

 

 

53.0

%

Consolidated EBITDA % of Net Sales

 

 

11.0

%

 

 

12.9

%

 

 

 

 

12.7

%

 

 

11.0

%

 

 

1 Net working capital is defined as accounts receivable, (net) plus inventories, (net) less accounts payable. Net working capital percentage is defined as net working capital divided by four times quarterly sales for each respective period.

2 EBITDA is a non-GAAP financial measure defined on a consolidated basis as net income attributable to Raven Industries, Inc., plus income taxes, plus depreciation and amortization expense, plus interest expense, (net). On a segment basis, it is defined as operating income plus depreciation expense and amortization expense. EBITDA margin is defined as EBITDA divided by net sales.

3 Total liquidity is defined as Cash and cash equivalents plus the available balance on the Company's revolving credit facility.

 

 

Jared Stearns
Investor Relations Manager
Raven Industries, Inc.
+1 (605) 336-2750

Source: Raven Industries, Inc.