AMERICAN VANGUARD REPORTS SECOND QUARTER & MID-YEAR 2016 RESULTS
Strong Improvement in Revenue and Earnings Performance
Newport Beach, CA – August 2, 2016 – American Vanguard Corporation (NYSE:AVD), today announced financial results for the second quarter and six-month period ended June 30, 2016.
Fiscal 2016 Second Quarter Financial Highlights – versus Fiscal 2015 Second Quarter Results
• Net sales increased 9% to $72.7 million from $66.5 million
• Net income increased to $3.2 million from $0.8 million
• Earnings per diluted share increased to $0.11 from $0.03
Fiscal 2016 Six Month Financial Highlights – versus Fiscal 2015 Six Month Results
• Net sales increased 7% to $142.2 million from $133.1 million
• Net income increased to $6.0 million from $0.8 million
• Earnings per diluted share increased to $0.21 from $0.03
Note: Further details are available in the financial schedules attached to this press release
Eric Wintemute, Chairman and CEO of American Vanguard, stated: “Our improved second quarter and mid-year performance reflects both external sales initiatives and internal management discipline. While the Ag Industry continues to experience strong headwinds, we are pleased with our ability to deliver revenue growth of 9% quarter-over-quarter and significantly increased net income. Top line improvement was driven by sales of our corn soil insecticides and Impact® post-emergent corn herbicide as well as higher sales of our non-crop products. Earnings rose as a result of higher gross profit margins attributable to improved manufacturing efficiency and favorable product mix.”
Mr. Wintemute added: “We continue to strengthen our balance sheet by focusing on carefully managing inventories and other working capital factors. Our strong cash generation has allowed us to reduce debt, enhancing our ability to grow through acquisition and pursue international initiatives, such as our recently announced Hong Kong based technology joint-venture.”
Mr. Wintemute concluded: “The balance of 2016 looks favorable with expected demand for our cotton products amidst this year’s 17% increase in domestic cotton acreage, our historically stable fumigant market and weather-dependent demand for our mosquito adulticide Dibrom. All-in-all, we had a solid quarter and will continue to build on that foundation over the course of the year. We look forward to telling you more during our conference call today.”
Eric Wintemute, Chairman & CEO, David Johnson, VP & CFO, and Bob Trogele, EVP & COO of AMVAC Chemical will conduct a conference call focusing on the financial results at 4:30 pm ET / 1:30 pm PT on Tuesday, August 2, 2016. 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.