FOR IMMEDIATE RELEASE
AMERICAN VANGUARD REPORTS THIRD QUARTER & NINE-MONTH 2013 RESULTS
Continued Strong Demand Fuels Excellent Business Performance
Newport Beach, CA – October 31, 2013 – American Vanguard Corporation (NYSE:AVD), today announced financial results for the third quarter and nine-month period ended September 30, 2013.
Fiscal 2013 Nine Month Financial Highlights – versus Fiscal 2012 Nine Month Results
• Net sales improved from $261.9 million to $305.5 million, an increase of 17%
• Net income improved from $25.6 million to $34.2 million, an increase of 34%
• Earnings per diluted share improved from $0.89 to $1.18, an increase of 33%
Fiscal 2013 Third Quarter Financial Highlights – versus Fiscal 2012 Third Quarter Results
• Net sales improved from $89.8 million to $97.2 million, an increase of 8%
• Net income improved from $8.1 million to $8.9 million, an increase of 10%
• Earnings per diluted share improved from $0.28 to $0.31, an increase of 11%
Note: Further details are available in the financial schedules attached to this press release
Eric Wintemute, Chairman and CEO of American Vanguard, stated: “We are pleased to report record third quarter and year-to-date revenue and earnings growth. Our quarterly results benefited from strong sales of Bidrin®, Thimet® and our Force® corn soil insecticide in Smartbox. In the face of challenging market dynamics, we have reported our best ever Company performance. Looking forward, as the industry ramps up for the 2014 planting season and prepares to cope with the reported intensification of weed and insect pressure, we are ready to supply growers with the best selection of proven crop protection tools available.”
Mr. Wintemute continued: “We continue to achieve strong gross margin levels, posting 46% in the first nine months of 2013 and 44% in the third quarter. Our 2013 sales have been enhanced by the extended agreement with Monsanto to co-market our Impact® herbicide with their market leading Roundup glyphosate brands. Demand for our wide range of granular soil insecticides continues to grow, as expanding insect resistance encourages the use of our products in conjunction with genetically modified trait seed. Further, we continue to manage our balance sheet for long-term growth and have strengthened our organization to capitalize on promising opportunities in product development, international expansion and non-agricultural pest control markets.”
Mr. Wintemute concluded: “Over the next several quarters, we expect to see strong demand for our diversified product lines across the many crops and geographies that we serve. Furthermore, for the 2014 planting season, we are planning to introduce a liquid, fertilizer-ready corn soil insecticide, which will complement our industry-leading portfolio of granular SmartBox products. AMVAC’s proven, yield-enhancing products are an essential part of integrated pest management, and solidify American Vanguard’s important role in the future of modern agriculture worldwide.”
Eric Wintemute, Chairman & CEO and David Johnson, VP & CFO, will conduct a conference call focusing on the financial results at 4:30 pm ET / 1:30 pm PT on Thursday, October 31, 2013. Interested parties may participate in the call by dialing (201) 493-6744 - 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 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 as well as the S&P Small Cap 600 Index. To learn more about American Vanguard, please reference the Company’s web site at www.amvac-chemical.com.
The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in the conference call referenced 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.