EXHIBIT 99.1
FOR IMMEDIATE RELEASE
AMERICAN VANGUARD POSTS 22ND CONSECUTIVE QUARTER OF COMPARABLE PERIOD GROWTH
WITH THIRD QUARTER NET INCOME UP 42% ON 20% SALES INCREASE
Newport Beach, CA – November 3, 2004 – American Vanguard Corporation (AMEX:AVD), today announced financial results for the third quarter and nine-month period ended September 30, 2004.
Third Quarter Financial Highlights – versus fiscal 2003 third quarter
• | Net sales rose 20% to $39.6 million. |
• | Operating income increased 46% to $6.9 million. |
• | Net income grew 42% to $4.0 million. |
• | Earnings per diluted share increased 40% to $.42. |
Nine-month Financial Highlights– versus fiscal 2003 first nine months
• | Net sales increased 22% to $105.3 million. |
• | Operating income rose 64% to $15.0 million. |
• | Net income grew 49% to $8.6 million. |
• | Earnings per diluted share increased 45% to $.90. Earnings per share of $.62 for last year’s period included a non-recurring $.03 from income taxes receivable from the filing of amended tax returns. |
Eric Wintemute, President and CEO of American Vanguard, stated, “We are pleased with the results for the quarter. Contributors to the strong sales level included our cotton products, as well as our mosquito adulticide, which was heavily used as a result of the recent hurricanes. Our slight gross margin improvement, coupled with our continued focus on controlling operating expenses, resulted in net income growing at more than twice the rate of sales.”
James Barry, Senior Vice President and CFO of American Vanguard, commented, “We continued to maintain a strong financial position, closing the third quarter with $38.6 million of working capital, total debt of $30.9 million (including current installments) and shareholders’ equity of $57.8 million. As previously announced, we expanded our credit facility in mid-October, providing us with additional financial flexibility to execute the Company’s growth strategy of acquiring and licensing additional products.”
Mr. Wintemute concluded, “We are very proud to have reported 22 consecutive quarters of comparable growth, and look forward to a bright future for the Company. As I stated last quarter, we are confident that we will comfortably realize our goal of double-digit sales and net income growth this year. Furthermore, the strength and diversity of our product line, opportunities for expansion via acquisition and licensing, solid financial position and more than ample manufacturing capacity are all factors in our optimism about American Vanguard’s long-term prospects.”
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American Vanguard Corporation News Release | Page 2 | |
November 3, 2004 |
Conference Call
Eric G. Wintemute, President & CEO, and James A. Barry, Senior Vice President & CFO, will conduct a conference call focusing on the financial results at 12:00 pm ET on Wednesday, November 3, 2004. Interested parties may participate in the call by dialing 706-679-3155 approximately 10 minutes before the call is scheduled to begin. The conference call will also be broadcast live over the Internet via the Investors section of the Company’s web site atwww.american-vanguard.com. To listen to the live call please go to the website 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. The Company’s basic strategy is to acquire brand name, niche product lines from larger companies that divest mature products to focus on newly discovered molecules. During 2004, American Vanguard has been recognized as one ofBusinessWeek’sHot Growth Companies (#93),Fortune Small Business’ America’s100 Fastest Growing Small Companies(#26) andForbes’ 200 Best Small Companies (#34). 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.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.
CONTACT: | -OR- | AVD’S INVESTOR RELATIONS FIRM | ||
American Vanguard Corporation | The Equity Group Inc. | |||
Eric G. Wintemute, President & CEO | www.theequitygroup.com | |||
James A. Barry, Senior Vice President & CFO | Lauren Barbera | |||
(949) 260-1200 | lbarbera@equityny.com | |||
(212) 836-9610 | ||||
Loren G. Mortman | ||||
(212) 836-9604 |
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American Vanguard Corporation News Release | Page 3 | |
November 3, 2004 |
American Vanguard Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three months ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Net sales | $ | 39,624,000 | $ | 32,948,000 | $ | 105,335,000 | $ | 86,234,000 | ||||||||
Cost of sales | 21,178,000 | 18,091,000 | 57,951,000 | 48,056,000 | ||||||||||||
Gross profit | 18,446,000 | 14,857,000 | 47,384,000 | 38,178,000 | ||||||||||||
Operating expenses | 11,557,000 | 10,148,000 | 32,335,000 | 29,013,000 | ||||||||||||
Operating income | 6,889,000 | 4,709,000 | 15,049,000 | 9,165,000 | ||||||||||||
Interest expense | 371,000 | 226,000 | 1,013,000 | 790,000 | ||||||||||||
Interest income (1) | (4,000 | ) | — | (5,000 | ) | (302,000 | ) | |||||||||
Interest capitalized | (15,000 | ) | (19,000 | ) | (50,000 | ) | (309,000 | ) | ||||||||
Income before income taxes | 6,537,000 | 4,502,000 | 14,091,000 | 8,986,000 | ||||||||||||
Income taxes | 2,549,000 | 1,687,000 | 5,495,000 | 3,221,000 | ||||||||||||
Net income | $ | 3,988,000 | $ | 2,815,000 | $ | 8,596,000 | $ | 5,765,000 | ||||||||
Earnings per common share – basic (2) | $ | .44 | $ | .32 | $ | .96 | $ | .66 | ||||||||
Earnings per common share – assuming dilution (2) | $ | .42 | $ | .30 | $ | .90 | $ | .62 | ||||||||
Weighted average shares outstanding – basic (2) | 8,980,000 | 8,825,000 | 8,972,000 | 8,768,000 | ||||||||||||
Weighted average shares outstanding – assuming dilution (2) | 9,579,000 | 9,348,000 | 9,572,000 | 9,258,000 | ||||||||||||
(1) | The interest income for the nine months ended September 30, 2003, relates to income taxes receivable from the state of California as result of filing amended tax returns for the years ended December 31, 1995 through 1998. The overall after-tax effect of recording the receivable due from California (franchise tax) generated approximately $.03 per diluted share for the nine months ended September 30, 2003. |
(2) | Retroactively restated to reflect a 3-for-2 stock split distributed April 16, 2004, to common stockholders of record as of March 26, 2004. |
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American Vanguard Corporation News Release | Page 4 | |
November 3, 2004 |
American Vanguard Corporation and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
September 30, 2004 | December 31, 2003 | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 2,396,000 | $ | 887,000 | ||
Receivables | 30,088,000 | 28,197,000 | ||||
Inventories | 40,258,000 | 33,389,000 | ||||
Other current assets | 1,502,000 | 1,197,000 | ||||
Total current assets | 74,244,000 | 63,670,000 | ||||
Property, plant, equipment, net | 25,005,000 | 21,677,000 | ||||
Other assets | 22,146,000 | 21,387,000 | ||||
Total assets | $ | 121,395,000 | $ | 106,734,000 | ||
Liabilities | ||||||
Current liabilities: | ||||||
Current installments of long-term debt | $ | 5,106,000 | $ | 6,374,000 | ||
Accounts payable | 6,361,000 | 13,030,000 | ||||
Other current liabilities | 24,172,000 | 12,642,000 | ||||
Total current liabilities | 35,639,000 | 32,046,000 | ||||
Long-term debt, excluding current installments | 25,750,000 | 22,142,000 | ||||
Other long-term liabilities | 2,212,000 | 2,212,000 | ||||
Total liabilities | 63,601,000 | 56,400,000 | ||||
Total stockholders’ equity | 57,794,000 | 50,334,000 | ||||
Total liabilities and stockholders’ equity | $ | 121,395,000 | $ | 106,734,000 | ||
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American Vanguard Corporation News Release | Page 5 | |
November 3, 2004 |
2004 Summary Results of Operations
(Unaudited)
Three months ended March 31 | Three months ended June 30 | Three months ended September 30 | |||||||
Net sales | $ | 34,219,000 | $ | 31,492,000 | $ | 39,624,000 | |||
Gross profit | 15,190,000 | 13,748,000 | 18,446,000 | ||||||
Operating income | 3,909,000 | 4,251,000 | 6,889,000 | ||||||
Net income | $ | 2,203,000 | $ | 2,405,000 | 3,988,000 | ||||
EPS – basic | $ | .25 | $ | .27 | $ | .44 | |||
EPS – diluted | $ | .23 | $ | .25 | $ | .42 | |||
Weighted average shares outstanding | 8,963,000 | 8,972,000 | 8,980,000 | ||||||
Weighted average shares outstanding – assuming dilution | 9,519,000 | 9,603,000 | 9,579,000 |
2003 Summary Results of Operations
(Quarterly Data – Unaudited)
Three months ended March 31 | Three months June 30 | Three months Sept. 30 | Three months ended Dec. 31 | Fiscal 2003 (Audited) | |||||||||||
Net sales | $ | 27,342,000 | $ | 25,944,000 | $ | 32,948,000 | $ | 38,629,000 | $ | 124,863,000 | |||||
Gross profit | 11,368,000 | 11,953,000 | 14,857,000 | 20,696,000 | 58,874,000 | ||||||||||
Operating income | 2,077,000 | 2,379,000 | 4,709,000 | 7,377,000 | 16,542,000 | ||||||||||
Net income | $ | 1,224,000 | $ | 1,725,000 | $ | 2,815,000 | $ | 4,499,000 | $ | 10,263,000 | |||||
EPS – basic | $ | .14 | $ | .20 | $ | .32 | $ | .50 | $ | 1.16 | |||||
EPS – diluted | $ | .13 | $ | .19 | $ | .30 | $ | .48 | $ | 1.10 | |||||
Weighted average shares outstanding | 8,739,000 | 8,741,000 | 8,825,000 | 8,940,000 | 8,811,000 | ||||||||||
Weighted average shares outstanding – assuming dilution | 9,134,000 | 9,246,000 | 9,248,000 | 9,434,000 | 9,314,000 |
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