EXHIBIT 99.1
FOR IMMEDIATE RELEASE
AMERICAN VANGUARD POSTS 25th CONSECUTIVE QUARTER OF COMPARABLE PERIOD GROWTH
Newport Beach, CA – August 8, 2005 – American Vanguard Corporation (AMEX:AVD), today announced financial results for the second quarter and six-month period ended June 30, 2005.
Second Quarter Financial Highlights – versus fiscal 2004 second quarter
• | Net sales increased 19% to $37.3 million. |
• | Operating income rose 12% to $4.8 million. |
• | Net income grew 14% to $2.7 million or $0.14 per diluted share. |
First Half Financial Highlights – versus fiscal 2004 first half
• | Net sales rose 20% to $78.6 million. |
• | Operating income grew 25% to $10.2 million. |
• | Net income increased 28% to $5.9 million or $0.31 per diluted share. |
Eric Wintemute, President and CEO of American Vanguard, stated, “We are pleased to announce our 25th consecutive quarter of comparable sales and earnings growth, a great achievement for the Company. Strong performance from our cotton defoliant, cotton insecticide and soil fumigants contributed to the record results.”
Mr. Wintemute continued, “During the quarter, we were proud to report that for the third year in a row, American Vanguard was recognized as one ofBusinessWeek’sHot Growth Companies (#72) andFORTUNE Small Business’America’s 100 Fastest Growing Small Companies(#40). We also were included on the new Russell Microcap™ Index, which supplements our inclusion on the Russell 2000® and Russell 3000® Indexes.”
Mr. Wintemute concluded, “We are optimistic about American Vanguard’s prospects for the balance of the year and maintain our previously announced expectations for fiscal 2005 of double-digit growth in sales and net income. Our growth strategy remains focused on further expansion via product line acquisitions and licensing opportunities. We believe the current market environment, combined with our strengths in manufacturing, extensive experience with product acquisitions and strong financial position will enable us to continue to pursue our long-term growth objectives. We look forward to updating you on the Company’s performance.”
Conference Call
Eric Wintemute, President and CEO, and James Barry, Senior Vice President and CFO, will conduct a conference call focusing on the financial results at 12:00 noon ET on Monday, August 8, 2005. Interested parties may participate in the call by dialing 706-679-3155. Please call in 10 minutes before the call is scheduled to begin, and ask for the American Vanguard call. The conference call will also be broadcast live over the Internet via the Investors 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.
American Vanguard Corporation News Release August 8, 2005 | Page 2 |
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 2005, American Vanguard was recognized as one ofBusinessWeek’sHot Growth Companies (#72) andFORTUNE Small Business’America’s 100 Fastest Growing Small Companies(#40). 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 | |||
(949) 260-1200 | Lauren Barbera | |||
lbarbera@equityny.com | ||||
(212) 836-9610 |
American Vanguard Corporation News Release August 8, 2005 | Page 3 |
American Vanguard Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
For the three months ended June 30 | For the six months ended June 30 | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Net sales | $ | 37,325,000 | $ | 31,492,000 | $ | 78,555,000 | $ | 65,711,000 | ||||||||
Cost of sales | 21,529,000 | 17,744,000 | 45,214,000 | 36,773,000 | ||||||||||||
Gross profit | 15,796,000 | 13,748,000 | 33,341,000 | 28,938,000 | ||||||||||||
Operating expenses | 11,038,000 | 9,497,000 | 23,170,000 | 20,778,000 | ||||||||||||
Operating income | 4,758,000 | 4,251,000 | 10,171,000 | 8,160,000 | ||||||||||||
Interest expense | 380,000 | 328,000 | 719,000 | 642,000 | ||||||||||||
Interest income | (9,000 | ) | — | (11,000 | ) | (1,000 | ) | |||||||||
Interest capitalized | (81,000 | ) | (20,000 | ) | (144,000 | ) | (35,000 | ) | ||||||||
Income before income taxes | 4,468,000 | 3,943,000 | 9,607,000 | 7,554,000 | ||||||||||||
Income tax expense | 1,720,000 | 1,538,000 | 3,724,000 | 2,946,000 | ||||||||||||
Net income | $ | 2,748,000 | $ | 2,405,000 | $ | 5,883,000 | $ | 4,608,000 | ||||||||
Earnings per common share – basic (1) | $ | .15 | $ | .13 | $ | .32 | $ | .26 | ||||||||
Earnings per common share - assuming dilution (1) | $ | .14 | $ | .13 | $ | .31 | $ | .24 | ||||||||
Weighted average shares outstanding – basic (1) | 18,240,000 | 17,945,000 | 18,231,000 | 17,936,000 | ||||||||||||
Weighted average shares outstanding - assuming dilution (1) | 19,281,000 | 19,205,000 | 19,275,000 | 19,137,000 | ||||||||||||
(1) | Retroactively restated to reflect a 2-for-1 stock split distributed on April 15, 2005 to common stockholders of record as of March 29, 2005. |
American Vanguard Corporation News Release August 8, 2005 | Page 4 |
American Vanguard Corporation and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
June 30, 2005 | December 31, 2004 | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 1,232,000 | $ | 457,000 | ||
Receivables | 41,750,000 | 28,305,000 | ||||
Inventories | 48,290,000 | 43,635,000 | ||||
Other current assets | 1,049,000 | 1,619,000 | ||||
Total current assets | 92,321,000 | 74,016,000 | ||||
Property, plant, equipment, net | 29,696,000 | 26,118,000 | ||||
Other assets | 21,545,000 | 22,212,000 | ||||
Total assets | $ | 143,562,000 | $ | 122,346,000 | ||
Liabilities | ||||||
Current liabilities: | ||||||
Current installments of long-term debt | $ | 5,107,000 | $ | 5,107,000 | ||
Accounts payable | 14,352,000 | 12,984,000 | ||||
Other current liabilities | 24,581,000 | 19,650,000 | ||||
Total current liabilities | 44,040,000 | 37,741,000 | ||||
Long-term debt, excluding current installments | 29,421,000 | 19,474,000 | ||||
Other long-term liabilities | 1,159,000 | 1,159,000 | ||||
Total liabilities | 74,620,000 | 58,374,000 | ||||
Total stockholders’ equity | 68,942,000 | 63,972,000 | ||||
Total liabilities and stockholders’ equity | $ | 143,562,000 | $ | 122,346,000 | ||
American Vanguard Corporation News Release August 8, 2005 | Page 5 |
2005 Summary Results of Operations
(Unaudited)
Three months ended March 31 | Three months ended June 30 | |||||
Net sales | $ | 41,230,000 | $ | 37,325,000 | ||
Gross profit | 17,545,000 | 15,796,000 | ||||
Operating income | 5,413,000 | 4,758,000 | ||||
Net income | $ | 3,135,000 | $ | 2,748,000 | ||
EPS – basic | $ | 0.17 | $ | 0.15 | ||
EPS – diluted | $ | 0.16 | $ | 0.14 | ||
Weighted average shares outstanding | 18,222,000 | 18,240,000 | ||||
Weighted average shares outstanding – assuming dilution | 19,279,000 | 19,281,000 |
2004 Summary Results of Operations
(Unaudited)
Three months ended March 31 | Three months ended June 30 | Three months ended September 30 | Three months ended December 31 | Fiscal 2004 | |||||||||||
Net sales | $ | 34,219,000 | $ | 31,492,000 | $ | 39,624,000 | $ | 45,520,000 | $ | 150,855,000 | |||||
Gross profit | 15,190,000 | 13,748,000 | 18,446,000 | 24,874,000 | 72,258,000 | ||||||||||
Operating income | 3,909,000 | 4,251,000 | 6,889,000 | 9,909,000 | 24,958,000 | ||||||||||
Net income | $ | 2,203,000 | $ | 2,405,000 | $ | 3,988,000 | $ | 5,881,000 | $ | 14,477,000 | |||||
EPS – basic (1) | $ | 0.12 | $ | 0.14 | $ | 0.22 | $ | 0.33 | $ | 0.81 | |||||
EPS – diluted (1) | $ | 0.12 | $ | 0.13 | $ | 0.21 | $ | 0.30 | $ | 0.76 | |||||
Weighted average shares outstanding (1) | 17,925,000 | 17,945,000 | 17,960,000 | 18,022,000 | 17,963,000 | ||||||||||
Weighted average shares outstanding – assuming dilution (1) | 19,038,000 | 19,205,000 | 19,159,000 | 19,231,000 | 19,167,000 |
(1) | Retroactively restated to reflect a 2-for-1 stock split distributed on April 15, 2005 to common stockholders of record as of March 29, 2005. |
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