Market Overview

American Vanguard Reports First Quarter 2019 Results

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American Vanguard Corporation (NYSE:AVD), today announced financial
results for the quarter ended March 31, 2019.

Financial Highlights Fiscal 2019 First Quarter – versus Fiscal 2018
First Quarter

  • Net sales of $99.7 million in 2019, compared with $104.1 million in
    2018
  • Net income of $3.9 million in 2019, compared with $4.7 million in 2018
  • Earnings per diluted share of $0.13 in 2019, compared with $0.16 in
    2018
  • EBITDA1 of $12.6 million in 2019, compared with $13.3
    million in 2018

Eric Wintemute, Chairman and CEO of American Vanguard commented, "Thanks
to international diversification, our overall top-line performance for
this year's first quarter was moderately below that of last year's first
quarter notwithstanding widespread unfavorable weather in the North
American region. While rain and cold slowed procurement activity in many
domestic regions, our international business grew by 9% year-over-year.
Further, driven by strong manufacturing performance and an optimal
product mix, our overall gross margin grew to 42% from 39% as compared
to first quarter of 2018. Over the course of the year, we expect to
recover most of the domestic sales that were lost during the quarter. In
fact, we forecast overall net sales for 2019 to be between $510 million
and $530 million, which is above the range that we had previously
forecast."

Mr. Wintemute continued, "Over the coming quarters, we will focus on
strengthening our balance sheet by reducing inventory to a target of
$145 million, generating cash from increased sales, managing operating
expenses, maintaining factory efficiency and reducing debt to $100
million or less. We look forward to giving greater detail on our
quarterly performance during the earnings call. Further, we will be
reporting on our five-year outlook and the expected financial
performance of our SIMPAS technology during the annual shareholders'
meeting this June."

Conference Call

Eric Wintemute, Chairman & CEO, Bob Trogele EVP & COO and David T.
Johnson, VP & CFO, will conduct a conference call focusing on the
financial results at 4:10 pm ET / 1:10 pm PT on Tuesday, May 7, 2019.
Interested parties may participate in the call by dialing (201) 493-6744
– please dial 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 and the Standard & Poor's Small Cap 600
Index. 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.

 
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
 
ASSETS
 

March 31,
2019

 

December 31,
2018

Current assets:
Cash and cash equivalents $ 6,657 $ 6,168
Receivables:
Trade, net of allowance for doubtful accounts of $2,297 and $1,263,
respectively
119,153 123,320
Other   12,493   10,709
Total receivables, net 131,646 134,029
Inventories 189,499 159,895
Prepaid expenses   12,746   10,096
Total current assets 340,548 310,188
Property, plant and equipment, net 51,379 49,252
Operating lease right-of-use assets 10,293
Intangible assets, net of applicable amortization 197,063 186,583
Goodwill 39,159 25,790
Other assets   23,983   21,774
Total assets $ 662,425 $ 593,587
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current installments of other liabilities $ 3,076 $ 1,609
Accounts payable 77,543 66,535
Deferred revenue 4,159 20,043
Accrued program costs 39,740 37,349
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