Raven Industries (RAVN) 8-K Results of Operations and Financial Condition

Exhibit 99

RE:	Raven Industries, Inc.
	P.O. Box 5107
	Sioux Falls, SD 57117- 5107

FOR FURTHER INFORMATION:

AT THE COMPANY:	AT FINANCIAL RELATIONS BOARD:
Tom Iacarella	Dennis Waite	Leslie Loyet	Tim Grace
Vice President & CFO	General Inquiries	Analyst Inquiries	Media Inquiries
(605) 336-2750	(708) 246-6265	(312) 640-6672	(312) 640-6741

SIC Codes: 3672, 3081, 3829

FOR IMMEDIATE RELEASE
WEDNESDAY, MARCH 8, 2006

RAVEN INDUSTRIES ANNOUNCES RECORD FOURTH-QUARTER
AND FULL-YEAR RESULTS AS IT CELEBRATES 50^TH-YEAR ANNIVERSARY

SIOUX FALLS, SD—March 8, 2006—Raven Industries, Inc. (RAVN: NasdaqNM)today reported record sales and earnings for its fiscal year ended January 31, 2006, demonstrating, it said, “the strength of a business model capable of driving high-margin sales and capital-efficient growth.” Net sales rose 22 percent to $204.5 million while net income for the year climbed 36 percent to $24.3 million, or $1.32 per share fully diluted, from $17.9 million, or 97 cents per share. In releasing results, Raven noted that this is the fiftieth year it has been in business, recording a profit in every year except the first one.

For the fourth quarter, total net sales were up 24 percent to $54.4 million while net income jumped 50 percent to $5.5 million, or 30 cents per share fully diluted vs. 20 cents in the year-earlier fourth quarter.

Segment Performance

Flow Controls Division (FCD)had a good year as it gained the benefit of investments in new products and new markets. Sales for the fiscal year rose 17 percent to $47.5 million while operating income increased 29 percent to $13.6 million. The prior year’s results included a $1.3 million write-down of an acquisition. Absent this charge, operating income increased 15 percent. In the fourth quarter, FCD sales, hampered by a weakening agricultural economy, increased only four percent to $10.2 million while operating income rose 36 percent to $2.7 million. Explained President and CEO Ronald M.

-more-

Financial Relations Board serves as financial relations counsel to this company, is acting on the company’s behalf in issuing this bulletin and receiving compensation therefore. The information contained herein is furnished for information purposes only and is not to be construed as an offer to buy or sell securities.

Raven Industries, Inc.
Add 2

Moquist, “We made some sizable investments in research and development projects in the year-ago quarter as well as in our precision-ag marketing initiative.”

Engineered Films Division (EFD)produced a 41 percent climb in sales to $82.8 million for the full year while operating income rose 26 percent to $19.9 million. Gross profit margins declined from 31% to 28% due to the volatility of raw material costs. “Here we continue to invest in plant and equipment, developing specialty multi-layer film products and branching out into new domestic markets,” Moquist noted. Raven announced it expected to spend more than $13 million to expand EFD’s product capabilities during the current fiscal year. For the fourth quarter, sales were up 45 percent to $26.1 million and operating income rose 38 percent to $6.0 million. Higher oilfield pit-lining and construction sales accounted for most of the fourth-quarter revenue increase; disaster film sales also saw double-digit percentage growth.

Electronic Systems Division (ESD)sales for the year increased 19 percent to $56.2 million while operating income nearly doubled, up 98 percent to $8.9 million. Growth is being driven by increased demand from Fortune 500 companies that seek the manufacturing capabilities of a reliable source and Raven’s continued investment in advanced manufacturing technology. For the final quarter of the year, sales rose 14 percent to $13.9 million while operating income jumped 44 percent to $2.0 million.

Aerostarsales for the year declined 17 percent to $18.0 million while the division’s operating income declined 41 percent to $2.1 million. Sales in the fourth quarter increased five percent to $4.2 million with an operating loss of $29,000 for the final quarter of the year compared to a $97,000 operating loss a year earlier. Management expected to finish the year on a stronger note, but some of its business in the final quarter, particularly government-uniform contracts in the start-up phase, carried low margins.

Balance Sheet

The company’s cash and investment balances were $11.4 million at January 31, 2006, vs. $9.6 million at the end of the previous fiscal year. Operating cash flows for the 12 months totaled $21.2 million compared to $18.9 million for the previous 12-month period primarily as a result of higher earnings. Cash used in investing activities increased from $7.6 million to $11.4 million due primarily to investments in new capacity for Engineered Films and the February 2005 acquisition of Montgomery Industries, developer of the Autoboom™ automatic boom-height control system for agricultural sprayers. Dividends in the prior fiscal year included a special $11.3 million dividend paid in May 2004. Regular quarterly dividends in fiscal 2006 were up 27 percent over the previous fiscal year’s levels.

Outlook

CEO Moquist commented on the company’s prospects for the coming fiscal year. “We are continuing to invest heavily in equipment for Engineered Films and in product development and marketing for Flow Controls,” he said. “These divisions will be our growth drivers for the coming years despite what we see as softening demand for agricultural equipment in the current year,” he added. The CEO indicated the company

-more-

Raven Industries, Inc.
Add 3

expects to beat the record performance of the year just ended both in sales and earnings. “We will need to execute well, but we think demand for films will continue to be strong and we have opportunities in precision agriculture.”

About Raven Industries, Inc.

Raven is an industrial manufacturer that provides electronics manufacturing services, reinforced plastic sheeting and flow control devices to various markets.

CONFERENCE CALL INFORMATION

Raven has scheduled a conference call today at 2:00 p.m. Central Time to discuss its fourth quarter and fiscal 2006 performance and related trends in its business. To access this call, log on to www.ravenind.com or www.vcall.com 15 minutes before the call to download the necessary software. Replays will be available through this website for 90 days.

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. Without limiting the foregoing, the words “anticipates, “believes,” “expects,” “intends,” “may,” “plans” and similar expressions are intended to identify forward-looking statements. 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, there is no assurance that such assumptions are correct or that these expectations will be achieved. Such assumptions involve important risks and uncertainties that could significantly affect results in the future. These risks and uncertainties include, but are not limited to, those relating to weather conditions, which could affect certain of the Company’s primary markets, such as agriculture and construction, or changes in competition, raw material availability, technology or relationships with the Company’s largest customers, any of which could adversely impact any of the Company’s product lines. 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.

On the Internet, information is available atwww.ravenind.com, the company’s website.

FINANCIAL TABLES FOLLOW...

-more-

Reven Industries, Inc.
Add 4

RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except earnings per share)

	Three Months Ended January 31									Twelve Months Ended January 31
							Fav (Unfav)									Fav (Unfav)
	2006			2005			Change			2006			2005			Change
Net sales	$	54,385		$	44,004			24	%	$	204,528		$	168,086			22	%
Cost of goods sold		41,410			34,203						151,297			124,886
Gross profit		12,975			9,801			32	%		53,231			43,200			23	%
Selling, general and administrative expenses		4,694			4,140						15,947			14,056
Loss on disposition of businesses and assets		—			—						—			1,282
Operating income		8,281			5,661			46	%		37,284			27,862			34	%
Other income, net		(89	)		(27	)					(210	)		(93	)
Income before income taxes		8,370			5,688			47	%		37,494			27,955			34	%
Income taxes		2,908			2,048						13,232			10,064
Net income	$	5,462		$	3,640			50	%	$	24,262		$	17,891			36	%
Net income per common share:
-basic	$	0.30		$	0.20			50	%	$	1.34		$	0.99			35	%
-diluted	$	0.30		$	0.20			50	%	$	1.32		$	0.97			36	%
Weighted average common shares outstanding:
-basic		18,072			18,015						18,055			18,066
-diluted		18,325			18,342						18,315			18,410

RAVEN INDUSTRIES, INC.
SALES AND OPERATING INCOME BY SEGMENT
(In thousands)

	Three Months Ended January 31									Twelve Months Ended January 31
							Fav (Unfav)									Fav (Unfav)
	2006			2005			Change			2006			2005			Change
Net Sales:
Flow Controls	$	10,247		$	9,887			4	%	$	47,506		$	40,726			17	%
Engineered Films		26,060			17,912			45	%		82,794			58,657			41	%
Electronic Systems		13,906			12,220			14	%		56,219			47,049			19	%
Aerostar		4,172			3,985			5	%		18,009			21,654			(17	)%
Total Company	$	54,385		$	44,004			24	%	$	204,528		$	168,086			22	%
Operating Income:
Flow Controls	$	2,652		$	1,950			36	%	$	13,586		$	10,516			29	%
Engineered Films		5,972			4,326			38	%		19,907			15,739			26	%
Electronic Systems		2,002			1,388			44	%		8,916			4,492			98	%
Aerostar		(29	)		(97	)		70	%		2,133			3,609			(41	)%
Total Segment Income		10,597			7,567						44,542			34,356
Corporate Expenses		(2,316	)		(1,906	)		(22	)%		(7,258	)		(6,494	)		(12	)%
Total Company	$	8,281		$	5,661			46	%	$	37,284		$	27,862			34	%

-more-

RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

	January 31		January 31
	2006		2005
ASSETS
Cash, cash equivalents and short-term investments	$	11,409	$	9,619
Accounts receivable, net		29,290		25,370
Inventories		27,819		23,315
Prepaid expenses and other current assets		2,827		3,288
Total current assets		71,345		61,592
Property, plant and equipment, net		25,602		19,964
Other assets, net		9,210		6,953
	$	106,157	$	88,509
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	8,179	$	10,322
Accrued and other liabilities		11,871		10,628
Total current liabilities		20,050		20,950
Other liabilities		1,718		1,477
Shareholders’ equity		84,389		66,082
	$	106,157	$	88,509

RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED CASH FLOWS
(In thousands)

	Twelve Months Ended January 31
	2006			2005
Cash flows from operating activities
Net income	$	24,262		$	17,891
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		5,151			3,841
Deferred income taxes		(809	)		(31	)
Loss on disposition of businesses and assets		79			1,282
Other operating activities, net		(7,494	)		(4,112	)
Net cash provided by operating activities		21,189			18,871
Cash flows from investing activities
Capital expenditures		(10,358	)		(7,541	)
Acquisition of businesses		(2,828	)		(414	)
Other investing activities, net		1,751			324
Net cash used in investing activities		(11,435	)		(7,631	)
Cash flows from financing activities
Dividends paid		(5,056	)		(15,298	)
Purchase of treasury stock		(1,689	)		(3,519	)
Long-term debt principal payments		(63	)		(72	)
Other financing activities, net		(138	)		(174	)
Net cash used in financing activities		(6,946	)		(19,063	)
Effect of exchange rate changes on cash		(18	)		—
Net increase (decrease) in cash and cash equivalents		2,790			(7,823	)
Cash and cash equivalents at beginning of period		6,619			14,442
Cash and cash equivalents at end of period		9,409			6,619
Short-term investments		2,000			3,000
Cash, cash equivalents and short-term investments	$	11,409		$	9,619

-###-