EXHIBIT 99.1
AMERICAN VANGUARD CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2004 and 2003
(Dollars in thousands, except share and per share data)
2004 | 2003 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 457 | $ | 887 | ||||
Receivables: | ||||||||
Trade | 27,773 | 27,803 | ||||||
Other | 532 | 394 | ||||||
28,305 | 28,197 | |||||||
Inventories | 43,635 | 33,389 | ||||||
Prepaid expenses | 1,479 | 1,057 | ||||||
Deferred tax asset | 140 | 140 | ||||||
Total current assets | 74,016 | 63,670 | ||||||
Property, plant and equipment, net | 26,118 | 21,677 | ||||||
Land held for development | 211 | 211 | ||||||
Intangible assets | 21,161 | 20,307 | ||||||
Other assets | 840 | 869 | ||||||
$ | 122,346 | $ | 106,734 | |||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Current installments of long-term debt | $ | 5,107 | $ | 6,374 | ||||
Accounts payable | 12,984 | 13,030 | ||||||
Accrued program costs | 10,335 | 6,763 | ||||||
Accrued expenses and other payables | 5,791 | 3,778 | ||||||
Accrued royalty obligations | 1,837 | 1,521 | ||||||
Income taxes payable | 1,687 | 580 | ||||||
Total current liabilities | 37,741 | 32,046 | ||||||
Long-term debt, excluding current installments | 17,474 | 7,942 | ||||||
Note payable to bank | 2,000 | 14,200 | ||||||
Deferred income taxes | 1,159 | 2,212 | ||||||
Total liabilities | 58,374 | 56,400 | ||||||
Commitments and contingent liabilities | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, $.10 par value per share; authorized 400,000 shares; none issued | — | — | ||||||
Common stock, $.10 par value per share; authorized 40,000,000 shares; issued 9,931,144 shares in 2004 and 9,764,415 shares in 2003 | 993 | 976 | ||||||
Additional paid-in capital | 10,553 | 9,933 | ||||||
Accumulated other comprehensive loss | (207 | ) | (207 | ) | ||||
Retained earnings | 55,378 | 42,076 | ||||||
66,717 | 52,778 | |||||||
Less treasury stock, at cost, 835,049 shares in 2004 and 824,881 shares in 2003 | (2,745 | ) | (2,444 | ) | ||||
Total stockholders’ equity | 63,972 | 50,334 | ||||||
$ | 122,346 | $ | 106,734 | |||||
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AMERICAN VANGUARD CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31, 2004, 2003 and 2002
(Dollars in thousands)
2004 | 2003 | 2002 | ||||||||||
Increase (decrease) in cash | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 14,477 | $ | 10,263 | $ | 7,049 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization of property, plant and equipment | 4,042 | 2,755 | 1,392 | |||||||||
Amortization of other assets | 1,758 | 1,298 | 945 | |||||||||
Deferred income taxes | (1,053 | ) | 833 | 1,108 | ||||||||
Changes in assets and liabilities associated with operations: | ||||||||||||
(Increase) decrease in receivables | (108 | ) | (11,003 | ) | (79 | ) | ||||||
Decrease (increase) in inventories | (10,246 | ) | (12,161 | ) | 2,802 | |||||||
(Increase) decrease in prepaid expenses | (422 | ) | (187 | ) | 276 | |||||||
Increase (decrease) in accounts payable | (46 | ) | 7,872 | (4,241 | ) | |||||||
Increase (decrease) in other payables and accrued expenses | 7,008 | 4,754 | (1,093 | ) | ||||||||
Net cash provided by operating activities | 15,410 | 4,424 | 8,159 | |||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | (8,483 | ) | (4,448 | ) | (7,978 | ) | ||||||
Increase in intangible assets | (2,612 | ) | (5,926 | ) | (1,774 | ) | ||||||
Other noncurrent assets | 29 | (267 | ) | (69 | ) | |||||||
Net cash used in investing activities | (11,066 | ) | (10,641 | ) | (9,821 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net (repayments) borrowings under line of credit agreement | (12,200 | ) | 6,200 | (4,200 | ) | |||||||
Proceeds from issuance of long-term debt | 12,065 | — | 10,000 | |||||||||
Payments on long-term debt and capital lease obligations | (3,800 | ) | (2,199 | ) | (952 | ) | ||||||
Exercise of common stock options | 637 | 778 | 501 | |||||||||
Purchase of treasury stock | (301 | ) | (208 | ) | (394 | ) | ||||||
Payment of cash dividends | (1,175 | ) | (807 | ) | (599 | ) | ||||||
Net cash provided by (used in) financing activities | (4,774 | ) | 3,764 | 4,356 | ||||||||
Net increase (decrease) in cash | (430 | ) | (2,453 | ) | 2,694 | |||||||
Cash at beginning of year | 887 | 3,275 | 853 | |||||||||
Effect of exchange rate changes on cash | — | 65 | (272 | ) | ||||||||
Cash at end of year | $ | 457 | $ | 887 | $ | 3,275 | ||||||
Supplemental cash flow information: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 1,090 | $ | 996 | $ | 879 | ||||||
Income taxes | $ | 9,402 | $ | 3,620 | $ | 4,731 | ||||||
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