Operating cash flow
$ 29,737 $ 44,462Capital expenditures $ (13,746 ) $ (16,870 )Cash dividends $ (8,727 ) $ (7,618 )
The Company's gross and operating margins may not be comparable to industry (a) peers due to the diversity of its operations and variability in the
classification of expenses across industries in which the Company operates.
Net income attributable to Raven for the three months ended
July 31, 2013was $8.3 million, or $0.23per diluted share, versus $11.5 million, or $0.32per diluted share. For the second quarter, net sales were $93.4 million, down $8.3 millioncompared to $101.7 millionin the prior-year second quarter. Net sales rose modestly in the Engineered Filmsdivision and were down slightly in Applied Technology. Aerostar sales declined 23% reflecting the current constraints on federal spending and planned transition away from avionics customers. For the six-month period, net sales decreased 10% to $197.1 million, from $219.6 millionone year earlier. For the same period, net income attributable to Raven was $22.3 million, or $0.61per diluted share, down 27% from $30.6 million, or $0.84per diluted share, in fiscal 2013. Each of the Company's three divisions reported sales declines compared with the prior year period and lower Engineered Filmsgross margins were the main drivers for the decrease. Applied Technology Net sales of $39.1 millionin the second quarter of fiscal 2014 were down $1.0 million, or 2%, as compared to the prior year period and operating income decreased $1.0 million, or 8%, to $11.9 million. For the six-month period, net sales declined $3.5 million, or 4%, to $90.3 millionas compared to $93.8 millionand operating income decreased $3.9 million, or 11%, to $31.0 million. The decrease in sales reflects softness of demand during the first quarter of fiscal 2014 compared to fiscal 2013, which continued into the second quarter. Lower operating income is primarily the result of the decrease in sales as well as continued investment in research, marketing and product development to secure future growth. Engineered FilmsFor the second quarter, net sales of $37.3 milliongrew $0.5 million, or 1%, as compared with the second quarter of last year. Second quarter operating income of $4.8 milliondeclined 30% year-over-year. Fiscal 2014 first half net sales decreased $6.1 million, or 8%, to $71.8 millionand operating income of $9.5 millionwas down 40% from the prior year period. Net sales for the first half of fiscal 2014 were impacted by lower energy market sales compared to the first half of fiscal 2013. Operating income for the three- and six-month periods were negatively impacted by substantially higher resin costs compared to the comparative periods.