FOR IMMEDIATE RELEASE
AMERICAN VANGUARD REPORTS SECOND QUARTER & MID-YEAR 2012 RESULTS
Performance Reflects Continuing Strong Market Demand and Successful Operational Execution
Newport Beach, CA – August 2, 2012 – American Vanguard Corporation (NYSE:AVD), today announced financial results for the second quarter and six month period ended June 30, 2012.
Fiscal 2012 Second Quarter Financial Highlights – versus Fiscal 2011 Second Quarter:
- Net sales improved from $80.1 million to $84.8 million, an increase of 6%
- Net income improved from $6.0 million to $8.7 million, an increase of 46%
- Earnings per diluted share were $0.30 versus $0.22 in the prior year
Fiscal 2012 First Half Financial Highlights – versus Fiscal 2011 First Half
- Net sales improved from $146.1 million to $172.1 million, an increase of 18%
- Net income improved from $11.0 million to $17.5 million, an increase of 59%
- Earnings per diluted share were $0.61 versus $0.40 in the prior year
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 2012 that reflects strong demand for our products and improved profitability of this business. This is consistent with a continued interest in our conventional chemistries as part of Integrated Pest Management. Many of our products are used at the time of planting or early in the growing season and have been relatively unaffected by the persistent drought that has affected the Midwest and Southwest United States. Our successful sales, marketing and operating efforts have driven our bottom-line, net income to just over 10% of net sales (for the quarter) and boosted gross profit margins to 45% for the quarter and 44% for the first half of 2012.”
Mr. Wintemute continued: “We continue to strengthen our already healthy balance sheet, by controlling inventory levels, carefully managing our receivable collections and reducing our long-term debt with scheduled quarterly payments. At mid-year we reported $48 million in cash on the balance sheet and stockholder’s equity of $206 million – a 10% increase during the last 6 months. We have not borrowed against our revolving-line-of-credit for over a year and have adequate cash and credit availability for working capital and other needs.”
Mr. Wintemute concluded: “We are well positioned to take advantage of favorable market conditions for the balance of the year. Factors that will affect our relative success in the third quarter include continued demand for our post-harvest Metam soil fumigants, sufficient pest pressure to support our Bidrin® foliar cotton insecticide, favorable weather conditions for cotton harvest in support of our Folex® harvest defoliant, and wet weather in regions where our mosquito adulticide, Dibrom, is used. Further, despite dry weather during the 2012 corn growing season, we continue to see strong demand for our products in anticipation of the 2013 season.”
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 2, 2012. 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 as well as the S&P Small Cap 600 Index. 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.