FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

      (Mark One)
         (X)      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED: OCTOBER 31, 1997APRIL 30, 1998

                                       OR

         ( )      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

                  FOR THE TRANSITION PERIOD FROM ___________________________

Commission file number:  0-3136

                             RAVEN INDUSTRIES, INC.
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             (Exact name of registrant as specified in its charter)


         SOUTH DAKOTA                                   46-0246171
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(State or other jurisdiction of            (I.R.S. Employer Identification No.)
 incorporation or organization)

                               205 EAST 6TH STREET
                                  P.O. BOX 5107
                           SIOUX FALLS, SD 57117-5107
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               (Address of principal executive offices) (Zip code)

                                  605-336-2750
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               Registrant's telephone number, including area code

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
                           Yes  _X___X__       No ________

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

CLASS                                      OUTSTANDING AS OF OCTOBER 31, 1997JUNE 3, 1998
- ---------------                -------------------------------------------------------------------------            ------------------------------------------

Common Stock                          4,858,2834,770,803  shares




                     RAVEN INDUSTRIES, INC. AND SUBSIDIARIES

                                      INDEX


                                                                        PAGE NO.
                                                                        --------
PART I-FINANCIAL INFORMATION                                            --------

Consolidated Balance Sheets as of October 31, 1997,April 30, 1998,
     January 31, 19971998 and October 31, 1996April 30, 1997                                    3

Consolidated Statements of Income for the three months
     ended April 30, 1998 and nine months ended October 31, 1997 and 1996                                          4

Consolidated Statements of Cash Flows for the
     ninethree months ended October 31,April 30, 1998 and 1997 and 1996                             5

Notes to Consolidated Financial Statements                                  6

Computations of Earnings Per Common Share                                  7

Management's Discussion and Analysis of Financial
     Condition and Results of Operations                                  8-97-8

PART II-OTHER INFORMATION                                                   109




                         PART I - FINANCIAL INFORMATION

                     RAVEN INDUSTRIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                             (UNAUDITED)
                  (Dollars in thousands except per share data)thousands)

10/04/30/98 01/31/98 4/30/97 01/31/97 10/31/96 ------- ------- ---------------- --------- --------- ASSETS Cash and cash equivalents ................................... $ 1,5851,660 $ 3,4392,850 $ 1,9602,055 Accounts and note receivable, less allowance for doubtful accounts of $352, $340$417, $390 and $337$342 .................. 23,926 25,637 21,24324,034 26,973 23,001 Inventories: Materials ................................................. 18,870 16,276 16,36420,467 17,801 17,696 In process ................................................ 5,107 4,574 5,0945,564 3,882 4,783 Finished goods ............................................ 5,876 4,275 4,944 ------- ------- -------6,558 4,133 5,864 --------- --------- --------- Total inventories ..................................... 29,853 25,125 26,40232,589 25,816 28,343 Deferred income taxes ....................................... 1,682 1,686 2,064 Prepaid expenses and other current assets ................... 392 431 365 Deferred income taxes ....................................... 2,064 2,064 1,579 ------- ------- -------380 506 328 --------- --------- --------- Total current assets .................................. 57,820 56,696 51,54960,345 57,831 55,791 --------- --------- --------- Property, plant and equipment ............................... 51,731 48,315 47,32054,955 53,805 49,588 Less: accumulated depreciation ............................ 32,992 30,173 29,429 ------- ------- -------35,183 33,988 31,183 --------- --------- --------- Net property, plant and equipment ..................... 18,739 18,142 17,89119,772 19,817 18,405 Note receivable, less current portion ....................... 1,311 1,259 Other assets, net ........................................... 5,709 5,824 3,619 ------- ------- -------3,577 3,683 5,852 --------- --------- --------- TOTAL ASSETS ................................................ $82,268 $80,662 $73,059 ======= ======= =======$ 85,005 $ 82,590 $ 80,048 ========= ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Notes payable, bank ......................................... $ 1,0004,000 $ 0 $ 0 Current portion of long-term debt ........................... 1,119 1,366 8131,754 1,765 1,766 Accounts payable ............................................ 6,156 7,849 5,7486,339 7,480 6,526 Accrued liabilities and customer advances ................... 10,797 10,801 10,010 ------- ------- -------9,915 10,130 10,125 --------- --------- --------- Total current liabilities ............................. 19,072 20,016 16,57122,008 19,375 18,417 Long-term debt, less current portion ........................ 2,216 3,181 2,618601 1,128 2,639 Deferred income taxes ....................................... 524 524 736 736 815 Stockholders' equity Common stock, $1 par value, authorized shares: 100,000,000; issued: 5,210,686; 5,187,9615,214,406; 5,210,832 and 5,093,1095,189,953 shares ........ 5,214 5,211 5,188 5,0935,190 Paid in capital ........................................... 2,773 2,673 6452,849 2,844 2,693 Retained earnings ......................................... 55,170 51,778 50,227 ------- ------- ------- 63,154 59,639 55,96557,432 57,131 53,283 --------- --------- --------- 65,495 65,186 61,166 Less treasury stock, at cost: 386,403; 386,403 and 352,403 shares ........................................................... 3,623 3,623 2,910 2,910 2,910 ------- ------- ---------------- --------- --------- Total stockholders' equity ............................ 60,244 56,729 53,055 ------- ------- -------61,872 61,563 58,256 --------- --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .................. $82,268 $80,662 $73,059 ======= ======= =======$ 85,005 $ 82,590 $ 80,048 ========= ========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 3 PART I - FINANCIAL INFORMATION RAVEN INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Dollars in thousands except per-share data) FOR THE THREE MONTHS ENDED: ------------------------- 04/30/98 04/30/97 ---------- ---------- Net sales ......................... $ 32,162 $ 35,666 Cost of goods sold ................ 26,743 28,839 ---------- ---------- Gross profit .................... 5,419 6,827 ---------- ---------- Operating expenses Selling ......................... 2,081 1,936 Administrative .................. 1,732 1,603 ---------- ---------- Operating income ............. 1,606 3,288 ---------- ---------- Interest expense .................. (84) (88) Other income, net ................. 78 134 ---------- ---------- Income before income taxes ...... 1,600 3,334 Income taxes ...................... 576 1,200 ---------- ---------- Net income ...................... $ 1,024 $ 2,134 ========== ========== Net income per share data)
FOR THE THREE FOR THE NINE MONTHS ENDED MONTHS ENDED -------------------------------------------------------- 10/31/97 10/31/96 10/31/97 10/31/96 ----------- ----------- ----------- ----------- Net sales ................... $ 41,321 $ 38,943 $ 111,062 $ 101,088 Cost of goods sold .......... 35,208 31,888 92,047 82,549 ----------- ----------- ----------- ----------- Gross profit .............. 6,113 7,055 19,015 18,539 Operating expenses Selling ................... 2,044 1,903 5,998 5,353 Administrative ............ 1,564 1,554 4,817 4,547 ----------- ----------- ----------- ----------- Operating income ....... 2,505 3,598 8,200 8,639 Interest expense ............ (71) (83) (237) (224) Other income, net ........... 114 56 395 144 ----------- ----------- ----------- ----------- Income before income taxes 2,548 3,571 8,358 8,559 Income taxes ................ 907 1,268 2,981 3,039 ----------- ----------- ----------- ----------- Net income ................ $ 1,641 $ 2,303 $ 5,377 $ 5,520 =========== =========== =========== =========== Average number of common and common-equivalent shares outstanding ............... 4,904,548 4,774,665 4,899,326 4,759,543 =========== =========== =========== =========== Net income per common and common-equivalent share ... $ 0.33 $ 0.48 $ 1.10 $ 1.16 =========== =========== =========== ===========common share: Basic .................... $ 0.21 $ 0.44 Diluted .................. $ 0.21 $ 0.44 Cash dividends paid per share ..... $ 0.15 $ 0.13 $ 0.41 $ 0.37 =========== =========== =========== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 4 PART I - FINANCIAL INFORMATION RAVEN INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands) FOR THE NINE MONTHS ENDED ------------------- 10/31/97 10/31/96 ------- ------- Cash flows from operating activities: Net income .......................................... $ 5,377 $ 5,520 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ................... 3,944 3,529 Provision for losses on accounts receivable ..... 157 71 Equity in earnings of affiliate, net of dividends (175) (1) (Increase) decrease in accounts receivable ...... 1,554 (5,312) (Increase) decrease in inventories .............. (4,728) (2,505) (Increase) decrease in other current assets ..... 39 48 Increase (decrease) in operating liabilities .... (1,697) 1,800 Other ........................................... (19) 54 ------- ------- Net cash provided by (used in) operating activities . 4,452 3,204 Cash flows from investing activities: Capital expenditures ................................ (4,485) (3,262) Other investing activities, net ..................... 255 28 ------- ------- Net cash provided by (used in) investing activities . (4,230) (3,234) Cash flows from financing activities: Issuance of short-term debt ......................... 2,000 0 Payment of short-term debt .......................... (1,000) 0 Long-term debt principal payments ................... (1,214) (198) Proceeds from exercise of stock options ............. 123 134 Dividends paid ...................................... (1,985) (1,750) ------- ------- Net cash provided by (used in) financing activities . (2,076) (1,814) ------- ------- Net increase (decrease) in cash and equivalents ..... (1,854) (1,844) Cash and cash equivalents at beginning of period ...... 3,439 3,804 ------- ------- Cash and cash equivalents at end of period ............ $ 1,585 $ 1,960 ======= ======= Cash paid during the period for: Interest .......................................... $ 253 $ 229 Income taxes ...................................... $ 3,410 $ 2,737
FOR THE THREE MONTHS ENDED: ----------------------- 04/30/98 04/30/97 --------- --------- Cash flows from operating activities: Net income .......................................... $ 1,024 $ 2,134 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization ................... 1,390 1,325 Provision for losses on accounts receivable ..... 95 34 Deferred income taxes ........................... 4 0 Equity in earnings of affiliate, net of dividends 0 (100) (Increase) decrease in accounts receivable ...... 2,844 2,602 (Increase) decrease in inventories .............. (6,773) (3,218) (Increase) decrease in other current assets ..... 126 103 Increase (decrease) in operating liabilities .... (1,356) (1,999) Other ........................................... (49) 25 --------- --------- Net cash provided by (used in) operating activities . (2,695) 906 Cash flows from investing activities: Capital expenditures ................................ (1,262) (1,539) Other ............................................... 20 (2) --------- --------- Net cash provided by (used in) investing activities . (1,242) (1,541) Cash flows from financing activities: Issuance of short-term debt ......................... 4,000 0 Long-term debt principal payments ................... (538) (142) Net proceeds from exercise of stock options ......... 8 22 Dividends paid ...................................... (723) (629) --------- --------- Net cash provided by (used in) financing activities . 2,747 (749) --------- --------- Net increase (decrease) in cash and equivalents ..... (1,190) (1,384) Cash and cash equivalents at beginning of period ...... 2,850 3,439 --------- --------- Cash and cash equivalents at end of period ............ $ 1,660 $ 2,055 ========= ========= Cash paid during the period for: Interest .......................................... $ 89 $ 95 Income taxes ...................................... $ 421 $ 320
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 5 PART I - FINANCIAL INFORMATION RAVEN INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring entries)accruals) considered necessary for a fair presentation have been included. Operating results for the three month and nine month periodsperiod ended October 31, 1997April 30, 1998 are not necessarily indicative of the results that may be expected for the year ending January 31, 1998.1999. For further information, refer to the consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended January 31, 1997.1998. 2. In March 1997,Details of the Financial Accounting Standards Board issued Statement No. 128 "Earnings per Share," which the Company will adopt effective for its fiscal 1998 year end reporting. The Company will be required to report basic net incomeearnings per share based on weighted averagecomputation are presented below (dollars in thousands, except per share data): FOR THE THREE MONTHS ENDED: ------------------------ 4/30/98 4/30/97 ---------- ---------- Net income ...................... $ 1,024 $ 2,134 ========== ========== Average common shares outstanding without considering common equivalent shares, and diluted net income per share based on weighted average4,826,780 4,836,975 Dilutive impact of stock options 24,560 28,545 ---------- ---------- Average common and common equivalent shares outstanding. Diluted netoutstanding . 4,851,340 4,865,520 ========== ========== Net income per share would be equivalent to the Company's current reporting of net income per common and common-equivalent share. PART I - FINANCIAL INFORMATION RAVEN INDUSTRIES, INC. AND SUBSIDIARIES COMPUTATIONS OF EARNINGS PER COMMON SHARE (UNAUDITED) (Dollars in thousands except per share data)
FOR THE THREE FOR THE NINE MONTHS ENDED: MONTHS ENDED: ------------------------------------------------- 10/31/97 10/31/96 10/31/97 10/31/96 ---------- ---------- ---------- ---------- Net income ........................................... $ 1,641 $ 2,303 $ 5,377 $ 5,520 ========== ========== ========== ========== Earnings per common share - Primary ........................................ $ 0.33 $ 0.48 $ 1.10 $ 1.16 ========== ========== ========== ========== Earnings per common share - Fully diluted (1) .............................. $ 0.33 $ 0.48 $ 1.10 $ 1.16 ========== ========== ========== ========== Average number of common and common equivalent shares: Primary: Weighted average common shares outstanding .............................. 4,855,159 4,738,928 4,844,941 4,727,145 Dilutive effect of exercise of certain stock options ........................ 49,389 35,737 54,385 32,398 ---------- ---------- ---------- ---------- Average common shares - Primary ....................................... 4,904,548 4,774,665 4,899,326 4,759,543 ========== ========== ========== ========== Fully diluted (1): Weighted average common shares outstanding .............................. 4,855,159 4,738,928 4,844,941 4,727,146 Dilutive effect of exercise of certain stock options ........................ 49,389 38,022 54,385 33,159 ---------- ---------- ---------- ---------- Average common shares - Fully diluted ................................. 4,904,548 4,776,950 4,899,326 4,760,305 ========== ==========share: Basic .................... $ 0.21 $ 0.44 ========== ==========
(1) THIS CALCULATION IS SUBMITTED IN ACCORDANCE WITH REGULATION S-K ITEM 601(b)(11) ALTHOUGH NOT REQUIRED BY FOOTNOTE 2 TO PARAGRAPH 14 OF APB OPINION NO. 15 BECAUSE IT RESULTS IN DILUTION OF LESS THAN 3%.Diluted .................. $ 0.21 $ 0.44 ========== ========== 6 PART I - FINANCIAL INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FINANCIAL CONDITION At OctoberThe company's cash balance of $1.7 million at April 30, 1998 was $1.2 million less than January 31, 1997, the company had $1.61998 and $395,000 less than April 30, 1997. Notes payable of $4.0 million of cash and borrowed $1.0 million on a short-term basis. At October 31, 1996 the company had $2.0 million of cash and no short-term borrowings. Cash is typically used during the first nine months of the yearat April 30, 1998 were required to financefund seasonal increases in inventories. Capital expendituresinventory levels; no such borrowings were $1.2required at January 31, 1998 or April 30, 1997. Inventory levels increased by $4.2 million higher for the nine months ended October 31,from April 30, 1997 than the comparable periodto April 30, 1998 in support of the prior fiscal year. Spending was higherincreased sales order backlogs in the PlasticsElectronics and ElectronicsSewn Products segments. The higher spending was funded bySubsequent to April 30, 1998, the company increased cash provided by operating activities.its available credit facilities with Norwest Bank South Dakota N.A. from $5 million to $10 million, providing additional funding for potential repurchases of common shares. The company's capital resources continue to be sufficient to fund all its operating and investing activities. On November 24, 1997, the company announced that it had been authorized by its board of directors to repurchase up to 500,000 shares of its common stock. Depending on the number of shares repurchased and the price of those shares, additional long-term debt financing may be required by the company. Management believes such financing would be available to the company at interest rates equivalent to current financing arrangements. RESULTS OF OPERATIONS ThirdSales and net income for the quarter ended April 30, 1998 fell 10 percent and 52 percent, respectively from the first quarter records of the previous year. First quarter sales of $41.3$32.2 million were 6 percent higher than the comparable quarter of the prior year. Unfavorable operating results in the company's Plastics segment were primarily responsible for lower operating and net income. Net income of $1.6down $3.5 million was 29 percent lower than one year earlier and on a per share basis of $.33 was down 31 percent from the comparable period of the prior year. ForNet income of $1.0 million or $0.21 per share in the nine months,first quarter was $1.1 million or $0.23 per share lower than one year earlier. Sales and operating income were lower in each of the company's business segments. Electronics segment sales of $111.1$11.7 million in the first quarter were 103 percent higherlower than one year earlier. Contract electronics sales were $1.0 million lower than the prior year. This reduction relates to the timing of shipments and is not expected to impact full year results. Sales of flow control devices were reduced by over $500,000 in the first nine monthsquarter as a result of weakness in the agricultural market due to unfavorable weather in the southeastern United States and the impact of lower wheat prices. These shortfalls were partially offset by higher sales of feedmill automation systems. Operating income was $1.2 million in the Electronics segment during the quarter, 38 percent lower than the comparable period of the prior year. Nine month net incomeWith sales levels lower than planned, and relatively lower sales of $5.4products with stronger gross profit rates, the gross profit rate in this segment was 3.9 percentage points lower than the year earlier period. Plastics segment sales were $16.5 million was down 3in the quarter ended April 30, 1998 and were 8 percent fromlower than the first quarter of the previous year. Higher sales of engineered films were offset by continuing weakness in the industrial market for plastic storage tanks. Sales of pickup-truck toppers also declined slightly. Compared to the first quarter of the prior year, and on a per share basis declined 5 percent to $1.10 per share. The increase in the numberoperating income of average shares outstanding$547,000 was down 45 percent. This reduction was due primarily to the issuance of 93,701 shares of common stockweakness in connection with the January, 1997 acquisition of Norcore Plastics, Inc. For the full year, unfavorable resultsdemand, associated idle capacity costs and reduced gross profits in the Plastic segment are expectedplastic tank business. Compared to reduce operating income for the company below the $12.0 million recorded in fiscal 1997. Demand for industrial plastic tanks remains weak and seasonal strength in agricultural tank sales in not expected to offset the overall profit decline. Plastics segment sales of $17.1 million in the third quarter were 13 percent higher than one year earlier. The acquisition of Norcore Plastics added $1.0 million to sales in the quarter and $5.5 million in the first nine monthsfourth quarters of the current year. Excluding the impact of the acquisition, sales of industrial plastic tanks dropped significantly, while pick-up truck topper sales were flat. Sales of engineered films rose 19 percent in the third quarter and were up 10 percent for the nine months. Total Plastics sales for the nine months ended October 31, 1997 were $51.7 million compared to $43.3 million in the comparable period ofprior 7 PART I - FINANCIAL INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) fiscal year, operating margins in the company's plastic tank business improved in the quarter just ended, but remain at levels unacceptable to management. Sewn Products segment sales are typically at the seasonal low point in the first quarter of the fiscal year. As a result, performance measures may not be, and are not expected to be, representative of the full year. First quarter sales of $3.9 million were down 31 percent from the first quarter of the prior year. LossesLater scheduled deliveries to major customers caused the lower sales and created a 22 percent increase in Sewn Products backlog at April 30, 1998 when compared to April 30, 1997. The relatively low sales generated a first quarter operating loss of $172,000 compared to operating income of $306,000 in the industrial tank businessprior year. Consolidated gross profits of $5.4 million in the first quarter were 21 percent lower than the prior year's first quarter due primarily to the lower sales. Selling expenses were 7 percent higher as a result of an increased emphasis on penetrating new markets in the Electronics and to a lesser extent the pick-up truck topper business reducedPlastics segments. Administrative expense includes an increased provision for losses on accounts receivable. First quarter operating income in this segment to $70,000 inof $1.6 million was 51 percent lower than the third quarter and $2.0 million for the nine months. Comparable operatingprevious year. Other income figures for the prior year were $925,000 and $3.0 million, respectively. Electronics segment sales of $11.5 million in the quarter ended October 31,April 30, 1997 were 8 percent higher than the comparable quarter of the prior fiscal year. The improvement was due primarily to increases in the company's contract electronics manufacturing business. For the nine month period, sales of $32.7 million were 3 percent higher than the comparable period of the previous year. Gross profit rates improved throughout the segment. Operating income for the three month period of $1.4 million was 30 percent higher and for the nine months was $3.9 million - up 18 percentincluded $100,000 from the comparable periods of the prior year. Sewn Products sales of $12.7 million in the third quarter were down 3 percent from the prior year's third quarter, but, at $26.7 million on a year-to-date basis were 3 percent higher than the prior year. The variances relate primarily to the timing of shipments. Relatively higher sales of lower margin products during the quarter combined with the lower sales to reduce profitability. Operating income of $1.0 million in the third quarter was 36 percent lower than the comparable period of the prior year. Nine month operating income of $2.2 million was 5 percent lower than the first nine months of the prior fiscal year. Consolidated gross profits were down 13 percent in the third quarter and were 3 percent higher for the nine month period, when compared to the prior year, as a result of the operating performance in the Plastics and Sewn Products segments discussed above. Selling and administrative expenses, combined, were relatively unchanged as a percentage of sales. Improved results at the company's 50 percent owned affiliate, increased otherwhich was sold in January 1998. First quarter pretax income for bothof $1.6 million was 52 percent lower than the thirdfirst quarter and nine month periods. Consolidated income before income taxes decreased by 29 percent inof the third quarter and 2 percent for the nine month period when compared to the same periods in the previousprior fiscal year. SAFE HARBOR STATEMENT THIS REPORT CONTAINS DISCUSSIONS OF ITEMS WHICH MAY CONSTITUTE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF FEDERAL SECURITIES LAWS. ALTHOUGH RAVEN INDUSTRIES BELIEVES THAT EXPECTATIONS REFLECTED IN SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON REASONABLE ASSUMPTIONS, IT CAN GIVE NO ASSURANCES THAT ITS EXPECTATIONS WILL BE ACHIEVED. FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER FROM EXPECTATIONS INCLUDE GENERAL ECONOMIC CONDITIONS, WEATHER CONDITIONS WHICH COULD AFFECT CERTAIN OF THE COMPANY'S PRIMARY MARKETS SUCH AS THE AGRICULTURAL MARKET OR ITS MARKET FOR OUTERWEAR, OR CHANGES IN COMPETITION WHICH COULD IMPACT ANY OF THE COMPANY'S PRODUCT LINES. 8 PART II-OTHER INFORMATION Item 1. Legal Proceedings: None Item 2. Changes in Securities: None Item 3. Defaults upon Senior Securities: None Item 4. Submission of Matters to a Vote of Security Holders: NoneNone. Item 5. Other Information: None Item 6. (a) Exhibits Filed: Exh. 27-Financial Data schedule (for SEC only). (See Part 1, page 7 for Earnings Per Share computation) (b) Reports on Form 8-K: None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. RAVEN INDUSTRIES, INC. /s/ Arnold J. Thue -------------------------------------------------------------------------- Arnold J. Thue Vice President, Finance, Secretary and Treasurer (Principal Financial and Accounting Officer) DATE: DECEMBER 10, 1997JUNE 8, 1998 9