1ST QUARTER: RAVEN INDUSTRIES' REVENUES UP 30%, EARNING UP 136%
May 19, 2021
Raven Industries reports:
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Sioux Falls, SD - Raven Industries, Inc. (the Company; NASDAQ:RAVN) today reported financial results for the first quarter that ended April 30, 2021
First Quarter Fiscal 2022 Noteworthy Items
• Consolidated net sales were $112.5 million, an increase of 30.0 percent versus the prior year;
• Company reported diluted earnings per share of $0.26, an increase of $0.15 or 136 percent versus the prior year;
• Applied Technology generated record quarterly revenue of $54.9 million, an increase of 30.6 percent versus the prior year, driven by significant growth in both the OEM and aftermarket channels;
• Applied Technology secured orders for 36 OMNiDRIVE systems (formerly known as AutoCart), its first commercially-available Driverless Ag Technology, representing approximately half of its available volume for the current year's limited release;
• Company invested $4.6 million, or $0.10 per diluted share, primarily in research and development activities, to advance Raven Autonomy;
• Engineered Films' net sales increased 46.0 percent versus the prior year as the division's end-markets continued their recovery from the global pandemic, leading to year-over-year growth across all end-markets;
• Backlog and order activity in both Applied Technology and Engineered Films continued to strengthen, providing even greater confidence for substantial growth in fiscal 2022;
• Price increases were implemented across all divisions as the Company navigates through supply chain constraints and rising input costs;
• Company acquired the intellectual property and patents of Jaybridge Robotics, advancing its growth strategy in autonomous agriculture.
First Quarter Results
Consolidated net sales for the first quarter of fiscal 2022 were $112.5 million, up 30.0 percent versus the first quarter of fiscal 2021. The year-over-year growth was driven by increased sales in Applied Technology and Engineered Films. In Applied Technology, the division reported record quarterly revenue, while overcoming supply chain constraints, as the demand for its industry-leading ag technology solutions was amplified by improved market conditions.
In Engineered Films, the division's end-markets continued to recover from the adverse impacts of the global pandemic, leading to year-over-year volume and revenue growth across all end-markets, led by construction and agriculture. Aerostar was impacted by the conclusion of Loon activity and a decrease in aerostat sales due to timing of contracts, leading to a year-over-year decline in revenue.
Consolidated operating income for the first quarter of fiscal 2022 was $11.6 million, versus operating income of $3.9 million in the first quarter of fiscal 2021. Included in the results for the first quarter of fiscal 2022 was $4.6 million of investment in research and development and selling expenses to advance Raven Autonomy, compared to $3.8 million in the prior year. The strong profitability performance in this year's first quarter was driven by increased sales volume and corresponding positive operating leverage.
Net income for the first quarter of fiscal 2022 was $9.6 million, or $0.26 per diluted share, compared to $4.0 million, or $0.11 per diluted share, in last year's first quarter. The Company's strategic investment in Raven Autonomy reduced net income attributable to Raven by $3.6 million, or $0.10 per diluted share, in the first quarter of fiscal 2022 compared to $2.9 million, or $0.08 per diluted share, in the prior year.