American Vanguard Corporation (NYSE:AVD), today announced financial results for the quarter and half-year ended June 30, 2020.
Financial Highlights Fiscal 2020 Second Quarter – versus Fiscal 2019 Second Quarter
- Net sales of $105 million in 2020, compared with $113 million in 2019
- Net income of $3.9 million in 2020, compared with $3.1 million in 2019
- Earnings per diluted share of $0.13 in 2020, compared with $0.11 in 2019
- EBITDA of $12.7 million in 2020, compared with $11.9 million in 2019
Financial Highlights Fiscal 2020 Six Months – versus Fiscal 2019 Six Months
- Net sales of $201 million in 2020, compared with $213 million in 2019
- Net income of $4.4 million in 2020, compared with $7 million in 2019
- Earnings per diluted share of $0.15 in 2020, compared with $0.24 in 2019
- EBITDA of $20.3 million in 2020, compared with $24.5 million in 2019
Note: Further details are available in the financial schedules attached to this press release
Eric Wintemute, Chairman and CEO of American Vanguard, commented, “During the quarter we recorded improved profitability on lower sales, in spite of pandemic-related effects on new product launches and reduced demand for crop commodities used by restaurants. In the face of market uncertainty, our team responded by maintaining operations without disruption, generating a profitable sales mix, improving manufacturing efficiency and reducing operating expenses in a disciplined fashion. Consequently, we have been able to generate a quarterly improvement in net income, earnings per share and EBITDA. In addition, we recorded lower working capital, improved net cash from operations by $32 million and thereby reduced debt, as compared to the same period in 2019.”
Mr. Wintemute continued, “In light of second quarter profitability and improvement of our balance sheet, I am encouraged by the direction of our financial performance during this unusual time. However, the year got off to a slow start. Thus, our first half results trailed those of the prior year with net sales down approximately 6% and higher operating expenses as a percent of net sales, due largely to a credit taken for deferred purchase price consideration in 2019. Gross margin remained flat at 39%, while factory performance was improved during the first half of 2020 versus that of 2019.”
Mr. Wintemute continued, “We are well-positioned to address our markets over the balance of 2020 and remain poised to perform in line with our peers. Factors that could materially affect our performance include our mosquito control business, which should benefit from forecasted hurricane activity expected to impact the South and Southeastern United States this summer, the strength of our soil fumigants, improved supply of Krovar® and Hyvar® herbicides, and growth of our corn and soybean franchises. At the same time, we will continue to pursue our key strategic initiatives for future growth, including the development and launch of new product formulations, further successful collaboration with respect to Proctor & Gamble’s Zevo® product line, and the expanded full commercial launch of our SIMPAS® precision application system later this year. We look forward to providing investors with additional information during our earnings 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 Thursday, August 6, 2020. 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.
American Vanguard Corporation
William A. Kuser, Director of Investor Relations
The Equity Group Inc.