American Vanguard Reports First Quarter 2017 Results
Solid Current Performance Supports Long-Term Strategic Objectives
Newport Beach, CA – May 4, 2017 – American Vanguard Corporation (NYSE:AVD), today announced financial results for the quarter ended March 31, 2017.
Financial Highlights Fiscal 2017 First Quarter – versus Fiscal 2016 First Quarter
• Net sales of $70.7 million in 2017, compared with $69.5 million in 2016
• Net income of $3.45 million in 2017, compared with $2.79 million in 2016
• Earnings per diluted share of $0.12 in 2017, compared with $0.10 in 2016
Note: Further details are available in the financial schedules attached to this press release
Eric Wintemute, Chairman and CEO of American Vanguard commented, “Our overall financial performance for the quarter improved, as we continued to benefit from our participation in diverse crops and pest control applications. Net sales increased during the period, driven by our portfolio’s strong performance in cotton, peanuts, sugar crops, fruits and vegetables and in non-crop uses. Sales of our corn soil insecticides were flat, despite reduced corn acres and corn commodity pricing. Further, while we saw reduced demand for our corn herbicide due to delayed planting and competitive market conditions, we recorded significantly improved sales in the southern cotton market, driven by this year’s rise in cotton acreage and the expectation of higher pest pressure from foliar insects.”
Mr. Wintemute continued, “We also reported stronger net income and gross margins for the period, due to favorable raw material pricing, improved manufacturing efficiency and sales mix. Additionally, we reduced outstanding debt and substantially increased our borrowing capacity at quarter end. While we continue to manage operating expenses closely, we did experience a rise in these costs due in part to our R&D investment in SIMPAS.”
Mr. Wintemute concluded, “As we look forward to the rest of the year, we expect to have continued growth of our cotton and peanut products and stable performance of our soil fumigants. We also expect to benefit from stronger fruit & vegetable sales in the post-drought western U.S and additional Dibrom® mosquito adulticide sales in light of continued public health concerns. Delayed planting on many corn acres should lead to a stronger post-emergent herbicide market, which would benefit Impact sales during the second quarter. Also, we are seeing more divestment activity in the industry today than we have in the last two or three decades. In light of this, we are pursuing multiple acquisition opportunities that we expect to report upon over the balance of 2017. And, as you may recall, we recently announced our agreement to purchase three products from the Adama group, subject to the closing of the ChemChina/Syngenta merger, which is scheduled to take place in the second quarter. All in all, I am confident about our prospects for the balance of the year and look forward to giving additional color on our performance during the earnings call.”
Eric Wintemute, Chairman & CEO and David T. Johnson, VP & CFO, will conduct a conference call focusing on the financial results at 4:30 pm ET / 1:30 pm PT on Thursday, May 4, 2017. Interested parties may participate in the call by dialing (201) 493-6744 – please dial 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 and the Standard & Poor’s Small Cap 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 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.
William A. Kuser, Director of Investor Relations
The Equity Group Inc.