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Raven Industries – Very strong finish to a great year – RAVN

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Raven Industries, Inc. (Nasdaq:RAVN) announced record sales and earnings for the fourth quarter and fiscal year ended January 31, 2012. The company continues to benefit from its high-performance products serving niche markets in the areas of energy exploration, precision agriculture, and situational awareness. These results were achieved during a year in which investments in research and development, personnel and manufacturing capacity also reached record levels.

For the full year, sales reached $381.5 million, a 21 percent increase from $314.7 million in fiscal 2011. Net income for the year of $50.6 million, or $2.77 per diluted share, was 25 percent above the prior year’s $40.5 million, or $2.24 per diluted share. Return on sales improved to 13.3 percent from 12.9 percent.

For the fourth quarter, sales increased 36 percent to $96.3 million from $70.7 million in the same period a year ago. Each of the company’s four divisions recorded double-digit gains in both sales and operating income. Net income increased 49 percent to $11.0 million, or $0.60 per diluted share, compared with $7.4 million, or $0.41 per diluted share one year earlier.


“We had a very strong finish to a great year,” said Daniel A. Rykhus, president and chief executive officer. “Our Engineered Films Division, which currently represents about one-third of our total revenues, turned in another outstanding sales quarter, with significant improvements in profitability compared to a year ago. Our Applied Technology Division continues to gain market share, maintaining strong momentum even as it continues to grow in size. Our Aerostar Division benefited from continued parachute deliveries, along with fourth quarter aerostat shipments. Our Electronic Systems Division also had a solid fourth quarter, with strong profit growth compared to a year ago.

“We are in the midst of our most aggressive expansion as we pursue new opportunities in each of our growth markets. I feel good about our progress in fiscal 2012, including our record results, but I’m even more excited about our future. Along with investments in R&D and manufacturing capacity this year, we acquired Vista Research, Inc., in support of our Aerostar strategy. The fact that we can generate profitable growth while building out our capabilities is a testament to the Raven approach. Once again, our strong cash flows played a key role in funding our initiatives and maintaining a healthy balance sheet, including approximately $26 million in cash at year end.”

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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