American Vanguard Corporation (NYSE:AVD), today announced financial results for the quarter ended March 31, 2016.
Financial Highlights Fiscal 2016 First Quarter – versus Fiscal 2015 First Quarter
• Net sales of $69.5 million, compared with $66.6 million.
• Net income of $2.79 million, compared with $0.05 million.
• Earnings per diluted share of $0.10, compared with $0.00.
Eric Wintemute, Chairman & CEO of American Vanguard commented: “Net sales increased during the period, led by our expanding international business. We achieved significantly better earnings in the quarter as a result of increased sales and focused management discipline regarding manufacturing costs and operating expenses. Additionally, we were able to invest in a new biological technology platform while further reducing debt.”
Mr. Wintemute continued: “While the Midwest corn market remained stable year-over-year, we benefited from our broad participation in other crops and global regions. In particular, the two herbicides that we acquired last year have helped expand our international business and allowed us to enter the U.S. soybean market for the first time. In addition, we recorded improved sales in the cotton market, driven by this year’s rise in cotton acreage.”
Mr. Wintemute concluded: “During the balance of this year, we expect our performance to be defined by demand for our corn herbicide Impact®, sales of our Thimet® insecticide in peanuts and sugar cane, post-harvest application of our soil fumigants, and continued expansion of our international business. We also expect to benefit from stronger fruit and vegetable sales resulting from the improvement in western U.S. drought conditions. Dibrom® mosquito adulticide sales will be weather dependent, but may get additional traction in light of recent public health concerns. We look forward to giving you more detail regarding first quarter results in our upcoming conference call.”
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 4:30 pm ET / 1:30 pm PT on Tuesday, May 3, 2016. 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 STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | ||||||||||
| For the three months ended March 31 | ||||||||||
| 2016 | 2015 | |||||||||
| Net sales | $ | 69,474 | $ | 66,565 | ||||||
| Cost of sales | 41,971 | 41,915 | ||||||||
| Gross profit | 27,503 | 24,650 | ||||||||
| Operating expenses | 22,873 | 24,344 | ||||||||
| Operating income | 4,630 | 306 | ||||||||
| Interest expense | 541 | 641 | ||||||||
| Income (loss) before provision for income taxes and loss on equity investment | 4,089 | (335 | ) | |||||||
| Income taxes expense (benefit) | 1,060 | (292 | ) | |||||||
| Income (loss) before loss on equity investment | 3,029 | (43 | ) | |||||||
| Net loss from equity method investment | (82 | ) | — | |||||||
| Net income (loss) | 2,947 | (43 | ) | |||||||
| Net (income) loss attributable to non-controlling interest | (153 | ) | 94 | |||||||
| Net income attributable to American Vanguard | 2,794 | 51 | ||||||||
| Earnings per common share—basic | $ | .10 | $ | .00 | ||||||
| Earnings per common share—assuming dilution | $ | .10 | $ | .00 | ||||||
| Weighted average shares outstanding—basic | 28,808 | 28,527 | ||||||||
| Weighted average shares outstanding—assuming dilution | 29,307 | 28,839 | ||||||||
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) ASSETS (Unaudited) | ||||||||||
| Mar. 31, 2016 | Dec. 31, 2015 | |||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 7,916 | $ | 5,524 | ||||||
| Receivables: | ||||||||||
| Trade, net of allowance for doubtful accounts of $388 and $423, respectively | 82,687 | 72,835 | ||||||||
| Other | 2,904 | 2,554 | ||||||||
| Total receivables, net | 85,591 | 75,389 | ||||||||
| Inventories | 144,415 | 136,477 | ||||||||
| Prepaid expenses | 12,354 | 11,172 | ||||||||
| Income taxes receivable | — | 168 | ||||||||
| Deferred income tax assets | 8,101 | 8,101 | ||||||||
| Total current assets | 258,377 | 236,831 | ||||||||
| Property, plant and equipment, net | 46,433 | 47,972 | ||||||||
| Intangible assets, net of applicable amortization | 127,131 | 129,160 | ||||||||
| Other assets | 31,581 | 29,576 | ||||||||
| $ | 463,522 | $ | 443,539 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Current installments of other notes payable | $ | 37 | $ | 55 | ||||||
| Current installments of other liabilities | 200 | 514 | ||||||||
| Accounts payable | 28,374 | 15,343 | ||||||||
| Deferred revenue | 7,040 | 8,888 | ||||||||
| Accrued program costs | 52,002 | 44,371 | ||||||||
| Accrued expenses and other payables | 6,992 | 7,111 | ||||||||
| Income tax payable | 1,002 | — | ||||||||
| Total current liabilities | 95,647 | 76,282 | ||||||||
| Long-term debt and other notes payable, excluding current installments | 65,763 | 68,321 | ||||||||
| Other liabilities, excluding current installments | 3,022 | 3,054 | ||||||||
| Deferred income tax liabilities | 27,556 | 27,556 | ||||||||
| Total liabilities | 191,988 | 175,213 | ||||||||
|
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 31,596,302 shares at | 3,160 | 3,164 | ||||||||
| Additional paid-in capital | 68,714 | 68,534 | ||||||||
| Accumulated other comprehensive loss | (3,456 | ) | (3,541 | ) | ||||||
| Retained earnings | 211,301 | 208,507 | ||||||||
| 279,719 | 276,664 | |||||||||
| Less treasury stock at cost, 2,450,634 shares at March 31, 2016 and December 31, 2015 | (8,269 | ) | (8,269 | ) | ||||||
| American Vanguard Corporation stockholders’ equity | 271,450 | 268,395 | ||||||||
| Non-controlling interest | 84 | (69 | ) | |||||||
| Total stockholders’ equity | 271,534 | 268,326 | ||||||||
| $ | 463,522 | $ | 443,539 | |||||||
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | ||||||||||
| For the three months ended March 31 | ||||||||||
| 2016 | 2015 | |||||||||
| Cash flows from operating activities: | ||||||||||
| Net income (loss) | $ | 2,947 | $ | (43 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by
operating | ||||||||||
| Depreciation and amortization of fixed and intangible assets | 4,315 | 3,954 | ||||||||
| Amortization of other long term assets | 1,092 | 1,430 | ||||||||
| Amortization of discounted liabilities | 9 | 49 | ||||||||
| Stock-based compensation | 456 | 1,427 | ||||||||
| Tax benefit from exercise of stock options | (35 | ) | (1 | ) | ||||||
| Operating loss from equity method investment | 82 | — | ||||||||
| Changes in assets and liabilities associated with operations: | ||||||||||
| (Increase) decrease in net receivables | (10,202 | ) | 3,611 | |||||||
| Increase in inventories | (7,938 | ) | (1,350 | ) | ||||||
| Increase in prepaid expenses and other assets | (1,036 | ) | (1,301 | ) | ||||||
| Decrease (increase) in income tax receivable/payable, net | 1,205 | (378 | ) | |||||||
| Increase in accounts payable | 13,031 | 3,570 | ||||||||
| (Decrease) increase in deferred revenue | (1,848 | ) | 3,660 | |||||||
| Increase in other payables and accrued expenses | 7,512 | 5,214 | ||||||||
| Net cash provided by operating activities | 9,590 | 19,842 | ||||||||
| Cash flows from investing activities: | ||||||||||
| Capital expenditures | (715 | ) | (1,522 | ) | ||||||
| Investment | (3,283 | ) | — | |||||||
| Net cash used in investing activities | (3,998 | ) | (1,522 | ) | ||||||
| Cash flows from financing activities: | ||||||||||
| Net payments under line of credit agreement | (2,600 | ) | (14,400 | ) | ||||||
| Payments on other long-term liabilities | (373 | ) | (351 | ) | ||||||
| Tax benefit from exercise of stock options | 35 | 1 | ||||||||
| Increase in other notes payable | — | 200 | ||||||||
Net payments from the issuance of common stock (sale of stock
under ESPP and | (315 | ) | (965 | ) | ||||||
| Payment of cash dividends | — | (569 | ) | |||||||
| Net cash used in by financing activities | (3,253 | ) | (16,084 | ) | ||||||
| Net increase in cash and cash equivalents | 2,339 | 2,236 | ||||||||
| Cash and cash equivalents at beginning of period | 5,524 | 4,885 | ||||||||
| Effect of exchange rate changes on cash | 53 | (251 | ) | |||||||
| Cash and cash equivalents at end of period | $ | 7,916 | $ | 6,870 | ||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160503006945/en/
Contacts:
William A. Kuser, 949-260-1200
Director
of Investor Relations
williamk@amvac-chemical.com
or
Investor
Representative
The Equity Group Inc.
Lena Cati,
212-836-9611
Lcati@equityny.com
www.theequitygroup.com
