This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Raven Industries Reports Fourth Quarter And Fiscal 2010 Results

Breakthrough Year at Aerostar

Aerostar's sales in fiscal 2010 of $27.2 million were relatively flat. Its annual operating income, at $5.6 million, grew 34 percent compared with $4.2 million.  

In the fourth quarter, revenues fell 12 percent to $8.9 million versus $10.2 million. Sales in the previous year were aided by $3 million of parachute revenues that were delayed from earlier in that year. Operating income, at $2.1 million, increased 17 percent from $1.8 million as a result of improved production efficiencies and product mix.

Higher profitability in military parachutes and growing demand for aerostats fueled Aerostar's sales and income growth for the year.  The Company completed the final year of a four-year contract for MC-6 parachutes. This was the most profitable year for the program because of higher efficiency levels. Moquist added, "In the current year, we begin shipments of the T-11 parachute for Army Airborne. We expect this to be a four- to five-year contract at an annual run rate of $12 million.  Initial margins will be lower as we work up the learning curve.  Tethered aerostat backlog now exceeds $10 million. These will be paired with surveillance equipment and deployed in Afghanistan."

Healthy Balance Sheet and Cash Flows

At January 31, 2010, cash and investment balances were $43.7 million, up from $16.3 million a year ago. This reflects healthy operating cash flows and the decision to reduce capital spending by $4.7 million from the prior year, to $3.3 million. Capital spending is expected to increase to $8 million in the coming year, with investments in new film capabilities and our Slingshotâ„¢ precision ag platform.

Operating cash flows continued to be strong, at $47.6 million versus $39.0 million at the end of fiscal 2009. Working capital levels reflected both lower business levels and improved performance. Accounts receivable decreased to $34.3 million compared with $40.3 million at January 31, 2009. Inventory was down $1.5 million to $34.5 million.  

In November 2009, investments in SST and Ranchview used $6.5 million of cash. In November 2008, a special cash dividend of $22.5 million, or $1.25 per share, was paid to shareholders. For the year just ended, Raven paid regular cash dividends of $9.9 million, or 55 cents per share, an increase of 3 cents, or 5.8 percent, over the prior year.

Finding Opportunity in a Bad Economy

"We don't see the economy improving much in the coming year," said Moquist. "Business spending remains soft as consumers continue to exercise caution.

3 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs