EX-99.1 2 dex991.htm PRESS RELEASE OF AMERICAN VANGUARD CORPORATION Press release of American Vanguard Corporation

Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE

AMERICAN VANGUARD REPORTS FOURTH QUARTER & FULL-YEAR 2008 RESULTS

Performance reflects continued increases in revenue, profit and shareholder equity driven by diverse market positions, international expansion, specialty product strength and conservative financial management

Newport Beach, CA – March 9, 2009 – American Vanguard Corporation (NYSE:AVD), today announced financial results for the fourth quarter and twelve month period ended December 31, 2008.

Fiscal 2008 Fourth Quarter Financial Highlights – versus Fiscal 2007 Fourth Quarter

 

   

Net sales increased 3% to $71.1 million.

 

   

Net income grew 5% to $ 7.9 million.

 

   

Earnings per diluted share were $0.29, up from $0.28 in the prior year period.

Fiscal 2008 Twelve Month Financial Highlightsversus Fiscal 2007 Twelve Month performance

 

   

Net sales increased 10% to a record $237.5 million.

 

   

Net income rose 7% to a record $ 20.0 million.

 

   

Earnings per diluted share were $0.73, compared with $0.68 earned during the prior year.

Eric Wintemute, President and CEO of American Vanguard, stated: “Our 2008 fourth quarter and full year performance has been driven by our participation in diverse domestic and international crop markets, the excellent performance of our non-crop specialty products segment and a continued emphasis on prudent operational and financial management. We continue to pursue a variety of initiatives to gain larger positions in key markets and geographic regions. We have maintained our traditionally high profit margins despite higher raw material costs by raising product prices where feasible and by continuing to focus on improving internal efficiencies and increasing capacity utilization at our domestic manufacturing facilities.”

Among the most important performance highlights of 2008:

 

   

International sales continued to grow, led by significant gains in Canada, Mexico and Central America.

 

   

Metam soil fumigant sales grew due to strong market demand, expanded coverage of the Southeast region and price increases needed to cover the higher cost of raw materials.

 

 

 

New brand-name additions, such as Terraclor® fungicides and Orthene® insecticides, broadened our product offering and helped us further expand our participation in several key market segments.

 

 

 

Non-crop specialty products improvement was aided by increased use of our mosquito adulticide Dibrom®, following the strong hurricane activity that impacted several Gulf Coast states including Texas.


Mr. Wintemute concluded, “We are pleased that our quarterly and full year results continue to demonstrate the success of the American Vanguard business model. Our ability to acquire important product lines at reasonable prices and expand their usage is a proven contributor to our steady growth. We continue to seek attractive opportunities to acquire new product lines and expand our offerings. Our careful, step-wise expansion in international markets carries our expertise abroad without undue risk. Our outstanding domestic manufacturing capability affords excellent quality control, cost competitiveness and timely customer response. Given the many challenges of the current economic environment, we reiterate our intention to remain diligent in cost control, conservative in our investment outlays and collaborative with other industry participants to facilitate expansion of our established market position. Despite widespread economic uncertainty, we believe that the significant benefits we provide for enhancing agricultural productivity and improving crop quality will continue to be in demand and should fuel our growth potential in 2009 and beyond.”

Conference Call

Eric Wintemute, President and CEO and David Johnson, CFO, will conduct a conference call focusing on the financial results at 12:00 pm EDT / 9:00 am PDT on Monday, March 9, 2009. 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 (conference ID # 86429090). The conference call will also be webcast live via the News and Media 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.

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. American Vanguard is included on the Russell 2000® & Russell 3000® Indexes and the Standard & Poors 600 Index. 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 the conference call referenced 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.
William A. Kuser, Director of Investor Relations       www.theequitygroup.com
(949) 260-1200       Lena Cati
williamk@amvac-chemical.com       Lcati@equityny.com
      (212) 836-9611


AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands except earnings per share data)

 

     For the Three Months
ended December 31
    For the Year
ended December 31
 
     2008     2007     2008     2007  

Net sales

   $ 71,060     $ 69,087     $ 237,538     $ 216,662  

Cost of sales

     40,063       38,162       136,407       120,932  
                                

Gross profit

     30,997       30,925       101,131       95,730  

Operating expenses

     17,494       18,096       64,987       59,717  
                                

Operating income

     13,503       12,829       36,144       36,013  

Interest expense

     955       923       4,300       5,731  

Interest income

     —         (111 )     (75 )     (214 )

Interest capitalized

     (83 )     —         (254 )     (30 )
                                

Income before income tax

     12,631       12,017       32,173       30,526  

Income tax expense

     4,716       4,453       12,154       11,798  
                                

Net income

   $ 7,915     $ 7,564       20,019     $ 18,728  
                                

Earnings per common share

   $ 0.30     $ 0.29     $ 0.75     $ 0.71  
                                

Earnings per common share - assuming dilution

   $ 0.29     $ 0.28     $ 0.73     $ 0.68  
                                

Weighted average shares outstanding

     26,803       26,409       26,638       26,307  
                                

Weighted average shares outstanding - assuming dilution

     27,418       27,465       27,469       27,436  
                                

 


AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

ASSETS

 

     Dec. 31,
2008
   Dec. 31,
2007

Current assets:

     

Cash and cash equivalents

   $ 1,229    $ 3,201

Receivables:

     

Trade

     51,405      55,925

Other

     563      645
             
     51,968      56,570
             

Inventories

     90,626      63,455

Prepaid expenses

     1,688      2,214
             

Total current assets

     145,511      125,440

Property, plant and equipment, net

     41,241      31,780

Intangible assets

     93,179      85,318

Other assets

     7,006      6,043
             

Total Assets

   $ 286,937    $ 248,581
             


AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

     Dec. 31,
2008
    Dec. 31,
2007
 

Current liabilities:

    

Current installments of long-term debt

   $ 7,706     $ 4,106  

Accounts payable

     14,621       13,796  

Accrued program costs

     16,204       24,191  

Accrued expenses and other payables

     6,767       6,355  

Income taxes payable

     3,332       1,848  
                

Total current liabilities

     48,630       50,296  

Long-term debt, excluding current installments

     76,273       56,155  

Deferred income taxes

     6,091       2,391  
                

Total liabilities

     130,994       108,842  
                

Commitments and contingent liabilities

    

Stockholders’ Equity:

    

Preferred stock, $.10 par value per share; authorized 400,000 shares; none issued

       —    

Common stock, $.10 par value per share; authorized 40,000,000 shares; issued 29,209,863 shares at December 31, 2008 and 28,650,829 shares at December 31, 2007

     2,920       2,865  

Additional paid-in capital

     38,873       36,551  

Accumulated other comprehensive income (loss)

     (3,593 )     64  

Retained earnings

     120,896       103,004  
                
     159,096       142,484  

Less treasury stock, at cost, 2,260,996 shares at December 31, 2008 and 2,226,796 at December 31, 2007

     (3,153 )     (2,745 )
                

Total stockholders’ equity

     155,943       139,739  
                

Total liabilities and shareholder’s equity

   $ 286,937     $ 248,581