FOR IMMEDIATE RELEASE
AMERICAN VANGUARD REPORTS SECOND QUARTER & MID-YEAR 2011 RESULTS
Quarterly & First Half Performance Reflects Strong Market Demand and Successful Strategy Execution
Newport Beach, CA – August 4, 2011 – American Vanguard Corporation (NYSE:AVD), today announced financial results for the second quarter and six month period ended June 30, 2011.
Fiscal 2011 Second Quarter Financial Highlights – versus Fiscal 2010 Second Quarter:
• Net sales improved from $52.2m to $80.4m, an increase of 54%
• Net income for the period improved from $1.6m to $6.0 million, an increase of 265%
• Earnings per diluted share were $0.22 versus $0.06 in the prior year quarter
Fiscal 2011 First Half Financial Highlights – versus Fiscal 2010 First Half
• Net sales improved from $98.9m to $147.8m, an increased of 49%
• Net income improved from $3.5m to $11.0 million, an increase of 217%
• Earnings per diluted share were $0.40 versus $0.13 in the prior year’s first half
Note: Complete details are available in the financial schedules attached to this press release
Eric Wintemute, Chairman and CEO of American Vanguard, stated: “We are pleased to report performance for the second quarter and the first half of 2011 that reflects the successful execution of our corporate strategy for product portfolio extension, geographic expansion and consistent financial discipline. Strong crop commodity prices have stimulated U.S. agricultural demand in corn, cotton, and a wide variety of other crops, fueling increased purchases of our well-positioned productivity and yield enhancing products. Additionally, we have expanded our international sales penetration driven by the Mocap® and Nemacur® product acquisitions that we completed in December 2010.”
Mr. Wintemute continued: “In keeping with our promise to strengthen and maintain a healthy balance sheet, we have continued to control our inventory levels and carefully maintain our receivable collections performance. In fact, our management of working capital and continuing cash generation provides us with the opportunity to use our positive cash balance for possible debt reduction, dividend payments, product acquisitions or other corporate purposes in the months ahead. Also, during the quarter we were pleased to announce a significant agreement with Monsanto for the co-marketing of our post-emergent corn herbicide Impact® in conjunction with their Roundup® glyphosate brands. The weed management benefits of this combination of two market leading brands will be promoted by both companies and should expand the sales of Impact over the next several years.”
Mr. Wintemute concluded: “We have maintained focus on our gross profit margins by consistently emphasizing profitability in our sales and marketing efforts resulting in an improvement from 37% to 40%. This year our overall manufacturing operations have experienced higher utilization rates resulting in improved coverage of facility fixed costs. We continue to seek the acquisition of appropriately-priced, branded products, similar to our 2010 purchases, as we expand our product offering in key crops. In our product development program, we expect our new potato sprout inhibitor SmartBlock® to become commercial during the first half of 2012. By adding high-value/high-margin products to our portfolio, focusing our sales and marketing priorities, achieving greater manufacturing efficiencies and diligently maintaining financial discipline, we expect to continue profitably expanding our global business.”
Eric Wintemute, Chairman & CEO and David Johnson, VP & CFO, will conduct a conference call focusing on the financial results at 12:00 pm EDT / 9:00 am PDT on Thursday, August 4, 2011. Interested parties may participate in the call by dialing (201) 493-6744 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 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® and Russell 3000® Indexes. To learn more about American Vanguard, please reference the Company’s web site at www.amvac-chemical.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.
American Vanguard Corporation
William A. Kuser, Director of Investor Relations
The Equity Group Inc.
www.theequitygroup.com <http://www.theequitygroup.com />
Linda Latman (212) 836-9609