American Vanguard Reports Second Quarter and Mid-Year 2019 Results
Performance Affected By Unfavorable North American Weather
Newport Beach, CA – August 6, 2019 – American Vanguard Corporation (NYSE:AVD), today announced financial results for the quarter and half-year ended June 30, 2019.
Financial Highlights Fiscal 2019 Second Quarter – versus Fiscal 2018 Second Quarter
• Net sales of $113 million in 2019, compared with $107 million in 2018
• Net income of $3.1 million in 2019, compared with $5.6 million in 2018
• Earnings per diluted share of $0.11 in 2019, compared with $0.19 in 2018
• EBITDA of $11.9 million in 2019, compared with $14 million in 2018
Financial Highlights Fiscal 2019 First Six Months – versus Fiscal 2018 First Six Months
• Net sales of $213 million in 2019, compared with $211 million in 2018
• Net income of $7 million in 2019, compared with $10.25 million in 2018
• Earnings per diluted share of $0.24 in 2019, compared with $0.34 in 2018
• EBITDA of $24.5 million in 2019, compared to $27.3 million in 2018
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 in this year’s second quarter and first half was significantly affected by widespread unfavorable weather in the U.S. Persistent cold and rainfall had a negative influence on our U.S. crop business particularly in both the Midwest and Southeastern regions, where there were planting delays, several million unplanted acres and sluggish crop protection procurement. By contrast, both our domestic non-crop and international businesses posted double-digit growth allowing us to record a 6% quarterly net sales increase over the prior year.”
Mr. Wintemute continued, “Our second quarter gross profit margin was 37% (versus 40% in 2Q2018) as we began moderating manufacturing output in order to achieve significant second-half inventory reductions. As you may recall, recent inventory levels have been driven largely by both the need to stock products in newly acquired businesses and the expedited purchase of goods from China to minimize tariffs. We expect that through inventory reduction and operating performance during the second half, we will be able to reduce debt by $50 million by year end.”
Mr. Wintemute concluded, “As indicated in our earlier announcement, in the second half of the year, we expect solid performance from our soil fumigants, cotton harvest products and the Central and South American businesses. We reiterate our full-year 2019 guidance of approximately $500 million in net sales; gross profit margins around 38%; operating expenses near $155 million; interest expense at $8 million; and a comprehensive tax of 26%. Given the probable reduction of 2019 U.S. harvest results and reduced levels of our products in channel inventory, the domestic market may be poised for a rebound in 2020. We look forward to providing investors with additional information during our earning conference call.”
Eric Wintemute, Chairman & CEO, Bob Trogele EVP & COO 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 Tuesday, August 6, 2019. 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.