EX-99.1 2 dex991.htm PRESS RELEASE DATED MAY 5, 2005 OF AMERICAN VANGUARD CORP. Press Release Dated May 5, 2005 of American Vanguard Corp.

LOGO

 

EXHIBIT 99.1

 

FOR IMMEDIATE RELEASE

 

AMERICAN VANGUARD POSTS 24TH CONSECUTIVE QUARTER OF COMPARABLE PERIOD GROWTH WITH FIRST QUARTER NET INCOME UP 42% ON 20% SALES INCREASE

 

Newport Beach, CA – May 5, 2005 – American Vanguard Corporation (AMEX:AVD), today announced financial results for the first quarter ended March 31, 2005.

 

First Quarter Financial Highlights – versus fiscal 2004 first quarter

 

    Net sales rose 20% to $41.2 million.

 

    Operating income increased 38% to $5.4 million.

 

    Net income grew 42% to $3.1 million or $0.16 per diluted share.

 

Eric Wintemute, President and CEO of American Vanguard, stated, “We are pleased to start the year with another record period, this now marking our 24th consecutive quarter of comparable period top and bottom-line growth. We saw continued strength throughout our product line during the quarter, with particular contribution from products acquired or licensed in 2003 and 2004, as well as our 2004 generic market entrance into bifenthrin. Importantly, our lean operating structure enabled us to expand profits at more than twice the rate of our sales.”

 

Mr. Wintemute continued, “Toward the end of the quarter, we introduced a new facet to our growth strategy – our first new active ingredient. We entered into an exclusive multi-year agreement with BASF to develop, register and commercialize Topramezone, a new herbicide for post-emergent use in corn in North America. We have had considerable success selling corn soil insecticides to date, and this agreement will allow us to offer a new key tool to the corn farmer.”

 

James Barry, Senior Vice President and CFO of American Vanguard, commented, “With regard to our balance sheet, we closed the quarter with $43.0 million in working capital, total debt of $31.5 million (including current installments), and shareholders’ equity of $66.2 million. We believe our financial position serves as a solid foundation to support our future growth.”

 

Mr. Wintemute concluded, “We continue to feel confident that the Company will achieve double-digit growth in sales and net income in 2005, and are also optimistic about the current market environment for product acquisition and licensing opportunities. We look forward to reporting on the Company’s continued development.”

 

Conference Call

 

Eric Wintemute, President and CEO, and James Barry, Senior Vice President and CFO, will conduct a conference call focusing on the financial results at 12:00 noon ET on Thursday, May 5, 2005. Interested parties may participate in the call by dialing 706-679-3155. Please call in 10 minutes before the call is scheduled to begin, and ask for the American Vanguard call. 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 webcast, go to the web site 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.


American Vanguard Corporation News Release    Page 2
May 5, 2005     

 

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 was 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

(949) 260-1200

        Lauren Barbera
          lbarbera@equityny.com
          (212) 836-9610

 


American Vanguard Corporation News Release    Page 3
May 5, 2005     

 

American Vanguard Corporation and Subsidiaries

Consolidated Statements of Income

(Unaudited)

 

    

For the Three Months
ended March 31


 
     2005

    2004

 

Net sales

   $ 41,230,000     $ 34,219,000  

Cost of sales

     23,685,000       19,029,000  
    


 


Gross profit

     17,545,000       15,190,000  

Operating expenses

     12,132,000       11,281,000  
    


 


Operating income

     5,413,000       3,909,000  

Interest expense

     339,000       314,000  

Interest income

     (2,000 )     (1,000 )

Interest capitalized

     (63,000 )     (15,000 )
    


 


Income before income tax

     5,139,000       3,611,000  

Income tax expense

     2,004,000       1,408,000  
    


 


Net income

     3,135,000       2,203,000  
    


 


Earnings per common share (1)

   $ 0.17     $ 0.12  
    


 


Earnings per common share - assuming dilution (1)

   $ 0.16     $ 0.12  
    


 


Weighted average shares outstanding (1)

     18,221,510       17,925,196  
    


 


Weighted average shares outstanding - assuming dilution (1)

     19,279,366       19,037,716  
    


 


 

(1) Retroactively restated to reflect a 2-for-1 stock split distributed on April 15, 2005 to common stockholders of record as of March 29, 2005.

 


American Vanguard Corporation News Release    Page 4
May 5, 2005     

 

American Vanguard Corporation and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets

 

     March 31,

   December 31,

     2005

   2004

Assets              

Current assets:

             

Cash

   $ 683,000    $ 457,000

Receivables

     45,547,000      28,305,000

Inventories

     46,033,000      43,635,000

Other current assets

     1,454,000      1,619,000
    

  

Total current assets

     93,717,000      74,016,000

Property, plant, equipment, net

     28,987,000      26,118,000

Other assets

     21,689,000      22,212,000
    

  

Total assets    $ 144,393,000    $ 122,346,000
    

  

Liabilities              

Current liabilities:

             

Current installments of long-term debt

   $ 5,106,000    $ 5,107,000

Accounts payable

     22,087,000      12,984,000

Other current liabilities

     23,527,000      19,650,000
    

  

Total current liabilities

     50,720,000      37,741,000

Long-term debt, excluding current installments

     26,347,000      19,474,000

Other long-term liabilities

     1,159,000      1,159,000
    

  

Total liabilities      78,226,000      58,374,000

Total stockholders’ equity

     66,167,000      63,972,000
    

  

Total liabilities and stockholders’ equity

   $ 144,393,000    $ 122,346,000
    

  

 


American Vanguard Corporation News Release    Page 5
May 5, 2005     

 

2005 Summary Results of Operations

(Unaudited)

 

    

Three months

ended

March 31


Net sales

   $ 41,230,000

Gross profit

     17,545,000

Operating income

     5,413,000

Net income

   $ 3,135,000

EPS – basic

   $ 0.17

EPS – diluted

   $ 0.16

Weighted average shares outstanding

     18,221,510

Weighted average shares outstanding – assuming dilution

     19,279,366

 

2004 Summary Results of Operations

(Unaudited)

 

    

Three months

ended

March 31


  

Three months

ended

June 30


  

Three months

ended

September 30


  

Three months

ended

December 31


  

Fiscal

2004


Net sales

   $ 34,219,000    $ 31,492,000    $ 39,624,000    $ 45,520,000    $ 150,855,000

Gross profit

     15,190,000      13,748,000      18,446,000      24,875,000      72,259,000

Operating income

     3,909,000      4,251,000      6,889,000      9,909,000      24,958,000

Net income

   $ 2,203,000    $ 2,405,000      3,988,000      5,881,000      14,477,000

EPS – basic (1)

   $ 0.12    $ 0.14    $ 0.22    $ 0.32    $ 0.81

EPS – diluted (1)

   $ 0.12    $ 0.13    $ 0.21    $ 0.30    $ 0.76

Weighted average shares outstanding (1)

     17,925,196      17,944,534      17,960,478      18,021,846      17,963,396

Weighted average shares outstanding – assuming dilution (1)

     19,037,716      19,205,384      19,158,870      19,230,690      19,167,450

 

(1) Retroactively restated to reflect a 2-for-1 stock split distributed on April 15, 2005 to common stockholders of record as of March 29, 2005.

 

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