EX-99.1 2 dex991.htm PRESS RELEASE DATED NOVEMBER 3, 2004 Press release dated November 3, 2004

EXHIBIT 99.1

 

LOGO

 

FOR IMMEDIATE RELEASE

 

AMERICAN VANGUARD POSTS 22ND CONSECUTIVE QUARTER OF COMPARABLE PERIOD GROWTH

WITH THIRD QUARTER NET INCOME UP 42% ON 20% SALES INCREASE

 

Newport Beach, CA – November 3, 2004 – American Vanguard Corporation (AMEX:AVD), today announced financial results for the third quarter and nine-month period ended September 30, 2004.

 

Third Quarter Financial Highlights – versus fiscal 2003 third quarter

 

Net sales rose 20% to $39.6 million.

 

Operating income increased 46% to $6.9 million.

 

Net income grew 42% to $4.0 million.

 

Earnings per diluted share increased 40% to $.42.

 

Nine-month Financial Highlights – versus fiscal 2003 first nine months

 

Net sales increased 22% to $105.3 million.

 

Operating income rose 64% to $15.0 million.

 

Net income grew 49% to $8.6 million.

 

Earnings per diluted share increased 45% to $.90. Earnings per share of $.62 for last year’s period included a non-recurring $.03 from income taxes receivable from the filing of amended tax returns.

 

Eric Wintemute, President and CEO of American Vanguard, stated, “We are pleased with the results for the quarter. Contributors to the strong sales level included our cotton products, as well as our mosquito adulticide, which was heavily used as a result of the recent hurricanes. Our slight gross margin improvement, coupled with our continued focus on controlling operating expenses, resulted in net income growing at more than twice the rate of sales.”

 

James Barry, Senior Vice President and CFO of American Vanguard, commented, “We continued to maintain a strong financial position, closing the third quarter with $38.6 million of working capital, total debt of $30.9 million (including current installments) and shareholders’ equity of $57.8 million. As previously announced, we expanded our credit facility in mid-October, providing us with additional financial flexibility to execute the Company’s growth strategy of acquiring and licensing additional products.”

 

Mr. Wintemute concluded, “We are very proud to have reported 22 consecutive quarters of comparable growth, and look forward to a bright future for the Company. As I stated last quarter, we are confident that we will comfortably realize our goal of double-digit sales and net income growth this year. Furthermore, the strength and diversity of our product line, opportunities for expansion via acquisition and licensing, solid financial position and more than ample manufacturing capacity are all factors in our optimism about American Vanguard’s long-term prospects.”

 

5


American Vanguard Corporation News Release

   Page 2

November 3, 2004

    

 

Conference Call

 

Eric G. Wintemute, President & CEO, and James A. Barry, Senior Vice President & CFO, will conduct a conference call focusing on the financial results at 12:00 pm ET on Wednesday, November 3, 2004. Interested parties may participate in the call by dialing 706-679-3155 approximately 10 minutes before the call is scheduled to begin. The conference call will also be broadcast live over the Internet via the Investors section of the Company’s web site at www.american-vanguard.com. To listen to the live call please go to the website at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, the conference call will be archived on the Company’s web site.

 

About American Vanguard

 

American Vanguard Corporation is a diversified specialty and agricultural products company that develops and markets products for crop protection and management, turf and ornamentals management and public and animal health. The Company’s basic strategy is to acquire brand name, niche product lines from larger companies that divest mature products to focus on newly discovered molecules. During 2004, American Vanguard has been recognized as one of BusinessWeek’s Hot Growth Companies (#93), Fortune Small Business’ America’s 100 Fastest Growing Small Companies (#26) and Forbes’ 200 Best Small Companies (#34). American Vanguard is included on the Russell 2000® and Russell® 3000 Indexes. To learn more about American Vanguard, please reference the Company’s web site at www.american-vanguard.com.

 

The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking statements are estimates by the Company’s management and are subject to various risks and uncertainties that may cause results to differ from management’s current expectations. Such factors include weather conditions, changes in regulatory policy and other risks as detailed from time-to-time in the Company’s SEC reports and filings. All forward-looking statements, if any, in this release represent the Company’s judgment as of the date of this release.

 

CONTACT:    -OR-    AVD’S INVESTOR RELATIONS FIRM

American Vanguard Corporation

        The Equity Group Inc.

Eric G. Wintemute, President & CEO

        www.theequitygroup.com

James A. Barry, Senior Vice President & CFO

        Lauren Barbera

(949) 260-1200

        lbarbera@equityny.com
          (212) 836-9610
          Loren G. Mortman
          (212) 836-9604

 

6


American Vanguard Corporation News Release

   Page 3

November 3, 2004

    

 

American Vanguard Corporation and Subsidiaries

Consolidated Statements of Income

(Unaudited)

 

    

Three months ended

September 30,


   

Nine Months Ended

September 30,


 
     2004

    2003

    2004

    2003

 

Net sales

   $ 39,624,000     $ 32,948,000     $ 105,335,000     $ 86,234,000  

Cost of sales

     21,178,000       18,091,000       57,951,000       48,056,000  
    


 


 


 


Gross profit

     18,446,000       14,857,000       47,384,000       38,178,000  

Operating expenses

     11,557,000       10,148,000       32,335,000       29,013,000  
    


 


 


 


Operating income

     6,889,000       4,709,000       15,049,000       9,165,000  

Interest expense

     371,000       226,000       1,013,000       790,000  

Interest income (1)

     (4,000 )     —         (5,000 )     (302,000 )

Interest capitalized

     (15,000 )     (19,000 )     (50,000 )     (309,000 )
    


 


 


 


Income before income taxes

     6,537,000       4,502,000       14,091,000       8,986,000  

Income taxes

     2,549,000       1,687,000       5,495,000       3,221,000  
    


 


 


 


Net income

   $ 3,988,000     $ 2,815,000     $ 8,596,000     $ 5,765,000  
    


 


 


 


Earnings per common share – basic (2)

   $ .44     $ .32     $ .96     $ .66  
    


 


 


 


Earnings per common share – assuming dilution (2)

   $ .42     $ .30     $ .90     $ .62  
    


 


 


 


Weighted average shares outstanding – basic (2)

     8,980,000       8,825,000       8,972,000       8,768,000  
    


 


 


 


Weighted average shares outstanding – assuming dilution (2)

     9,579,000       9,348,000       9,572,000       9,258,000  
    


 


 


 



(1) The interest income for the nine months ended September 30, 2003, relates to income taxes receivable from the state of California as result of filing amended tax returns for the years ended December 31, 1995 through 1998. The overall after-tax effect of recording the receivable due from California (franchise tax) generated approximately $.03 per diluted share for the nine months ended September 30, 2003.
(2) Retroactively restated to reflect a 3-for-2 stock split distributed April 16, 2004, to common stockholders of record as of March 26, 2004.

 

7


American Vanguard Corporation News Release

   Page 4

November 3, 2004

    

 

American Vanguard Corporation and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets

 

     September 30,
2004


   December 31,
2003


Assets              

Current assets:

             

Cash

   $ 2,396,000    $ 887,000

Receivables

     30,088,000      28,197,000

Inventories

     40,258,000      33,389,000

Other current assets

     1,502,000      1,197,000
    

  

Total current assets

     74,244,000      63,670,000

Property, plant, equipment, net

     25,005,000      21,677,000

Other assets

     22,146,000      21,387,000
    

  

Total assets    $ 121,395,000    $ 106,734,000
    

  

Liabilities              

Current liabilities:

             

Current installments of long-term debt

   $ 5,106,000    $ 6,374,000

Accounts payable

     6,361,000      13,030,000

Other current liabilities

     24,172,000      12,642,000
    

  

Total current liabilities

     35,639,000      32,046,000

Long-term debt, excluding current installments

     25,750,000      22,142,000

Other long-term liabilities

     2,212,000      2,212,000
    

  

Total liabilities      63,601,000      56,400,000
Total stockholders’ equity      57,794,000      50,334,000
    

  

Total liabilities and stockholders’ equity    $ 121,395,000    $ 106,734,000
    

  

 

8


American Vanguard Corporation News Release

   Page 5

November 3, 2004

    

 

2004 Summary Results of Operations

(Unaudited)

 

    

Three months

ended

March 31


  

Three months

ended

June 30


  

Three months

ended

September 30


Net sales

   $ 34,219,000    $ 31,492,000    $ 39,624,000

Gross profit

     15,190,000      13,748,000      18,446,000

Operating income

     3,909,000      4,251,000      6,889,000

Net income

   $ 2,203,000    $ 2,405,000      3,988,000

EPS – basic

   $ .25    $ .27    $ .44

EPS – diluted

   $ .23    $ .25    $ .42

Weighted average shares outstanding

     8,963,000      8,972,000      8,980,000

Weighted average shares outstanding – assuming dilution

     9,519,000      9,603,000      9,579,000

 

2003 Summary Results of Operations

(Quarterly Data – Unaudited)

 

    

Three months

ended

March 31


  

Three months
ended

June 30


  

Three months
ended

Sept. 30


  

Three months

ended

Dec. 31


  

Fiscal

2003

(Audited)


Net sales

   $ 27,342,000    $ 25,944,000    $ 32,948,000    $ 38,629,000    $ 124,863,000

Gross profit

     11,368,000      11,953,000      14,857,000      20,696,000      58,874,000

Operating income

     2,077,000      2,379,000      4,709,000      7,377,000      16,542,000

Net income

   $ 1,224,000    $ 1,725,000    $ 2,815,000    $ 4,499,000    $ 10,263,000

EPS – basic

   $ .14    $ .20    $ .32    $ .50    $ 1.16

EPS – diluted

   $ .13    $ .19    $ .30    $ .48    $ 1.10

Weighted average shares outstanding

     8,739,000      8,741,000      8,825,000      8,940,000      8,811,000

Weighted average shares outstanding – assuming dilution

     9,134,000      9,246,000      9,248,000      9,434,000      9,314,000

 

####

 

9