Good afternoon, ladies and gentlemen and thank you for standing by. Welcome to the Raven Industries Inc. fourth quarter 2009 earnings conference call. Today’s call is being recorded. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session and instructions will be provided at the time for you to queue up for questions. At this time, I would like to turn the call over to Leslie Loyet of the Financial Relations Board. Please go ahead.

Thank you. I'd like to thank everyone for joining us today. Earlier in the day, we sent out a press release, outlining the results for the fourth quarter and year-end of fiscal 2009. If anyone has not received the release, please either call Hon Hoy at 312-640-6688 and she will send you a copy, or visit Raven's website at www.ravenind.com to retrieve a copy. Joining us today from management of Raven Industries, we have Ron Moquist, President and Chief Executive Officer, Tom Iacarella, Vice President, Chief Financial Officer, and Dan Rykhus, EVP and Flow Controls Division Manager. Management will provide an overview of the quarter and the year, and then we'll open the call up to your questions. Before we begin, we'd like to remind the participants that the information contained in this call is current only as of the date of the call, March 12, 2009 and the company assumes no obligation to update any statements, including forward-looking statements made during this call. Statements made by the company that are not historical facts, are forward-looking statements that are subject to the Safe Harbor Disclaimer in today's press release. At this point, I would like to turn the call over to Ron. Please go ahead.

Hey, thanks, Leslie and good afternoon everyone, and thanks for joining us on our fourth quarter conference call. We released our fourth quarter and year-end results this morning, although we had a pre-release on February 13. It was a good year, sales up 20% to $280 million and net income up 11% to $30.8 million or $1.70 per diluted share. But the fourth quarter was weaker than I anticipated when we talked back in November. And at that time, as you will recall, I thought the fourth quarter would be relatively flat. Instead, it was down 22% on a year-over-year basis. Most of that shortfall was caused by the operating income loss we had in Engineered Films and demand for our residential and commercial construction products and our pond liners for oil and gas drilling (inaudible) and these would typically make up 70%, 80% of our sales in the fourth quarter. With a more normal performance from Films, we would've had the flat fourth quarter that I was anticipating. Of course, there is nothing normal about what is happening in the marketplace today. I normally spend a fair amount of time going over the fourth quarter and full year results, but I don't know how beneficial that will be for you when we are facing a much different marketplace than we did a year ago. So I'll highlight some of the things we did in the fourth quarter and hopefully provide some color and discuss prospects and outlook for the coming year and leave plenty of time for questions at the end. Before I get started, I wanted to make sure everyone knows that we recently changed the name of our Flow Control division and it is now called the Applied Technology division and I think the new name better…

Thank you. (Operator instructions) we'll take our first question from Michael Cox of Piper Jaffray. Michael Cox – Piper Jaffray: Thank you very much, gentlemen. My first question is on the Engineered Films segment. You indicated that you expect that to be profitable in 2009. I was wondering if you could give us a sense for the timing of returning to profitably there and how your inventory cost in that segment compare to current sales prices.

Well, we intend to be profitable in the first quarter of this fiscal year. So, fourth quarter was a bit of an anomaly, sales were poor. We were carrying over some very expensive resin costs, which caught us. I mean, it wasn't excessive inventory; it was normal amount of inventory, because we were not speculating on pricing, but we got caught with some expensive resin and we weren't able to move the price up and so we were in a margin squeeze and the fourth quarter really suffered because of that. We think the first quarter again will be a profitable quarter for us. Michael Cox – Piper Jaffray: Okay, that is helpful and on the Applied Technology end of the business, can you give a little more detail around the distribution expansion that you posses?

Sure. I'll let Dan Rykhus handle that question. Dan?

Sure. Michael, you kind of faded out there. Was it a question of distribution expansion? Michael Cox – Piper Jaffray: That is correct, yes. Ron had mentioned a plan to expand distribution in 2009.

Sure. It is really an extension of what we have been working on for the last year and that starts with leveraging the distribution channels of our OEM partners, the large OEM players in the ag equity market in the US. In the past, we have sold into their sprayer manufacturing units well and we are now moving towards a process of working more closely with their dealer channel to get a better representation of our products and really, an opportunity to train the dealer workforce on our products out in that channel. So that is one of the elements. We also are working more closely with some of our alliance partners and the channels that they have established into the grower market within the US. Michael Cox – Piper Jaffray: Okay, that is helpful. Any international expansion plans on the distribution side?

More of the same, really. I mean, we have – we're not completely built out in any of our international markets really yet. So we at continue to add dealers in Canada and that is showing some good success for us. We are continuing to bring on more dealers in Western Europe. In Australia, we brought on an excellent new resale partner down there last year and they went from zero to a real strong contribution for us this past year. So we're probably good in Australia and then in South America, we are continuing to work with our master distribution partners in Argentina and Brazil to help them find additional outlets for our products through their channel. Michael Cox – Piper Jaffray: Okay, that is great. Switching gears a little bit to the Electronic Systems, the margins in the second half were pretty impressive in the double-digit range. Is that reflective of the current mix of business and do you feel that holding 10% margin in that segment is a realistic objective?

Yes, the fourth quarter really was a very strong quarter. But in general, I think we can maintain solid margins comparable to what we have seen in the past. Now we did have a period of time a few years ago where we had again that one very strong OEM and the bed control business was very strong. And we have gone from $17 million in bed control sales down to about $7 million and that was good margin business for us. So those margins were lost and that hurt us for a while, but now we are starting to build up and become more efficient with existing customers and so we're building our margins backup. I don't know if they will get back up to the point where they were three years ago, but we certainly expect a lot more than the 5% or 10% range. Michael Cox – Piper Jaffray: Okay, that is helpful. And my last question is on the comments around shedding non-core assets, customers. Could you give us maybe an example of what you are looking at now and how is the process of identifying those.

Well, we're looking at everything. Anything we identify that isn't returning the cost of capital today and that we don't believe will return the cost of capital long-term is a candidate for disposal. That could be a building, it can be customer, it can be a piece of equipment, it could be a department, it could be almost anything and so we're looking at the whole company that way and what we're seeing is let us make sure that what we're working on is only the good stuff and the things that – when we get out of this recession, we will have a nice, trim, high margin business going forward. And so, as opposed to identifying a specific customer or asset I would just say that, everything that is not core is a candidate and the four things that are not candidates are our four divisions, three divisions plus the Aerostar subsidiary, but everything else is on the table and that might be a branch, it might be real estate, it might be a building, pieces of equipment, excess capacity, everything is on the table. Michael Cox – Piper Jaffray: Okay, thanks very much and good luck here in the 2009 environment.

(Operator instructions) we will take our next question from Jeff Evanson with Dougherty & Company. Jeff Evanson – Dougherty & Company: Good afternoon, gentlemen, thanks for taking my questions. A little bit more help on Engineered Films would be appreciated. The $14.5 million revenue level in this quarter, should we think about it as a low watermark for the next year or is that going to be more representative of quarters going forward do you think?

I think it is going to be representative. You know, unless we see some changes in oil prices, when oil prices go below $60 a barrel, we see a real slowdown in the amount of drilling activity and that is a big market for us with the pond liners. And with oil now in the low 40s, I don't know what it hit today, but we're just not going to have a lot of activity in that area. So specifically to answer your question, as things stand today, that number you quoted of $14.5 million is not a low watermark, it is going to be more of the same. Jeff Evanson – Dougherty & Company: So planning around that level, if you would.

That is the way we're planning. We don't mind planning a contingency plan when things get better, but right now, we have right-sized the organization to address that kind of volume. Jeff Evanson – Dougherty & Company: Tom, I don't know if you have it handy, but you typically provide a breakdown of Engineered Films in the 10-K. I was wondering if you had that handy right now.

I don't have that detail out there yet, Jeff, sorry about that. Jeff Evanson – Dougherty & Company: Ron, you mentioned the extra cost here related to more expensive inventory in Flow Control or in Engineered Films. I was wondering if you could just quantify the magnitude of that.

Well, the magnitude was unbelievable. We saw – in the period of probably six months to seven months, we saw resin, some resin, prime resin; all those are prime resin, more from $0.90 a pound to $0.35 a pound. That was the range and we saw everything in between and now we're starting to move back up. Not because there is a lot of demand, because there isn’t – there has been so much capacity taken offline by the chemical companies realizing that the demand isn't coming back anytime soon, that they have just mothballed a bunch of their plants, and in doing so, what they are trying to do this reduce the amount of supply in there – get the prices back up into that. I think they are looking; they're trying to get it into their $.50, $0.60 a pound range. We will see some prices ticked and some don't. My point was that I think suppliers or anybody really in this environment is going to be looking for customers like Raven with a strong balance sheet and can pay their bills and I think we have an ability to negotiate based on that strong balance sheet. Jeff Evanson – Dougherty & Company: Yes, I would think so, I can see that. I want to turn briefly to – well, let me ask you this, I guess I'm a little puzzled by this analysis of what is not core. You know, I have been there many times to see you guys, there is not a lot of fat around that organization. How much core could you shed?

It is always interesting when you actually do the exercise, you start looking around and you look at your budgets and you look at your expenses and you look at your CapEx. You look at your inventory, if you did it better, you look at your accounts payable, if you stretch them out a little bit and look at your receivables, you think you could collect a little faster although that is going to be simply a challenge in 2009. There is a lot that can be done, but in terms of excess assets, hard assets lying around, no we don't have a lot of them. Jeff Evanson – Dougherty & Company: How about in terms of the ability to reduce SG&A year-over-year?

Yes, we can do that. Jeff Evanson – Dougherty & Company: 10%, what do you think, could you reduce it that much?

If we really wanted to push it, yes, I think we could. Jeff Evanson – Dougherty & Company: Okay, good. What divisions do you expect to really deliver the bulk of your revenue growth next year, is it Applied Technologies?

Well, again, growth is a relative term isn’t it? Jeff Evanson – Dougherty & Company: Yes, it is.

Because I just said that we probably will not achieve the record earnings we achieved last fiscal year. So it becomes a relative term. But again, Applied Technology just because of their size and the percentage of the total that they make up becomes critical and so any growth we get from them is incredibly important. Jeff Evanson – Dougherty & Company: And do you believe that division can grow?

It can grow. As I said, it is going to be a challenge. It is not going to be easy. I like our position in terms of what we're selling, because they're selling precision controls that improve productivity for the farmer and reduce operating costs. And most of them are priced at $5000 or less. And so that is an easier purchase for a grower, even if he is a little tight with the dollars opposed to a $200,000 big piece of iron. So I think we are sitting in a good position with our product line and clearly, Applied Technology is driving the train right now. Jeff Evanson – Dougherty & Company: Can you tell us roughly what percentage of Applied Technology sales are rate controllers?

Dan, do you want to share?

I can give you a little breakdown, Jeff. Rate controllers, I think of our business in terms of our original control line of products and then some of the other products that we have brought on over the last 8 or 9 years, and about 50% of our revenues now come from that standard control line of business. The other 50% comes from a combination of our auto bloom, our steering and our precision products, and then a small contribution from our marine segment. Jeff Evanson – Dougherty & Company: Have you lost any OEM opportunities in the past quarter or two?

No. Jeff Evanson – Dougherty & Company: Okay. And then, last question, can you give us backlog for Aerostar?

I don't have that, but as I said, a large percentage, well over half what we are going to ship in this fiscal year is in the backlog. Jeff Evanson – Dougherty & Company: All right. Thanks a lot guys. Appreciate it.

(Operator instructions). And it appears we have no further questions. I would like to turn the conference back over to you, Mr. Moquist, for any additional or closing remarks.

Thank you, we have plans in place to move aggressively as market conditions change. Pulling the trigger has never been our weakness. We're prepared to do that and in the past, we have always been able to do that and are prepared to do this in this case. Cash generation and cash preservation will be a primary goal, but we will be aggressive in taking advantage of weaker competition. We still have to sell stuff to be successful. We can't save our way to success and these are not good times, but they bring out the importance of quality and financial strength and Raven has that and we will not just be survivors we will be a winner when we come out of this mess. So thank you all for joining us and good luck to all. Bye.