American Vanguard Announces Record Fiscal 2002 Results with Net Income up 25% on 21% Sales Increase.Business Editors NEWPORT BEACH Newport Beach, residential and resort city (1990 pop. 66,643), Orange co., S Calif., on Newport Bay and the Pacific Ocean; inc. 1906. It is a popular seaside resort and yachting center. Manufactures include electrical and medical equipment, computers, boats, and adhesives. , Calif.--(BUSINESS WIRE)--March 13, 2003 The Company Posts 15th Consecutive Period of Comparable Quarter Growth and Sets Goal for Steady Growth in '03 American Vanguard Corp. (AMEX AMEX See: American Stock Exchange :AVD AvD Automobilclub von Deutschland (German automobile club) AVD Academy of Veterinary Dentistry AVD Audio Video Design (Melbourne, FL) AVD Audio Video Data AVD Association des Volontaires pour le Développement ) today announced record financial results for the fourth quarter and year ended December 31, 2002. Fourth Quarter Financial Highlights - versus fiscal 2001 fourth quarter -- Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 20% to $31.4 million. -- Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was up 31% to $5.6 million. -- Net income rose 23% to $3.4 million or $.83 per diluted share. 2002 Financial Highlights - versus 2001 -- Net sales grew 21% to $100.7 million. -- Operating income (before non-recurring income of $761,900 in 2001) increased 24% to $11.9 million. -- Net income was up 25% to $7.0 million or $1.74 per diluted share. Eric Wintemute, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of American Vanguard, stated, "We are pleased with the results for the fourth quarter, historically our strongest period, and the year as a whole. We more than met our previously announced goals for 2002, which were to grow sales by at least 10% and achieve a more rapid increase in earnings. Additionally, surpassing $100 million in annual sales is a milestone for the Company." Mr. Wintemute continued, "During 2002, we continued to focus on our basic growth strategy of acquiring brand name niche product lines from multi-billion dollar companies. We acquired the Ambush(R) 25WP insecticide insecticide Any of a large group of substances used to kill insects. Such substances are mainly used to control pests that infest cultivated plants and crops or to eliminate disease-carrying insects in specific areas. business from Syngenta Crop Protection and the Folex(R) cotton defoliant defoliant, any one of several chemical compounds that, when applied to plants, can alter their metabolism, causing the leaves to drop off. In agriculture defoliants are used to eliminate the leaves of a crop plant so they will not interfere with the harvesting business from Aventis CropScience. In the first two months of this year, we completed a second acquisition from Syngenta - the Evital(R) 5G U.S. cranberry cranberry, low creeping evergreen bog plant of the genus Oxycoccus of the family Ericaceae (heath family). Cranberries are considered by some botanists to belong to the blueberry genus Vaccinium. herbicide herbicide (hr`bəsīd'), chemical compound that kills plants or inhibits their normal growth. A herbicide in a particular formulation and application can be described as selective or nonselective. business - and acquired the global Pre-Harvest Crop Protection business from Pace International. We believe the consolidating climate in our industry continues to produce opportunities in line with our growth strategy. Our expanded manufacturing capacity, as well as our niche position, strong industry relationships and track record of successful acquisitions, bode well for our ability to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. these opportunities." James Barry James Barry may refer to:
The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the fourth quarter were 3% lower than in the final quarter of last year due in part to our ongoing focus on controlling costs. With regard to the Company's financial position, we closed the year with $27.8 million in working capital, a debt-to-equity ratio debt-to-equity ratio The relationship between long-term funds provided by creditors and funds provided by owners. A firm's debt-to-equity ratio is calculated by dividing long-term debt by owners' equity. Both items are shown on the balance sheet. of .85:1.00, and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $40.2 million. We see American Vanguard's strong financial position as an important element in the Company's future growth." Mr. Wintemute concluded, "Our goals for 2003 are to achieve double-digit sales and net income growth, and continue to work actively on acquisitions and contract manufacturing opportunities to utilize our expanded manufacturing capacity. We remain enthusiastic about the Company's short and long-term business prospects and look forward to reporting our progress." Conference Call Eric G Eric G was a Miami Bass/Hip-Hop rapper, DJ, and producer, acting as the primary creative force behind Triple M DJ Crew, the Bass Station parties and night club, the rap group Worse 'em Crew, the Bass Station record label, and Never Stop Productions . Wintemute, President & CEO, and James A. Barry, Senior Vice President & CFO, will conduct a conference call focusing on the financial results at 12:00 noon ET on Thursday, March 13, 2003. Interested parties may participate in the call by dialing 973-582-2866 approximately 10 minutes before the call is scheduled to begin. 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 call please go to the website 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 crop protection and management, turf management Turf management or pitchcare describes the work needed to keep a sporting pitch ready for use. This article looks at the various types of sporting pitches and the type of challenges which they present. and public health insecticides. The Company's basic strategy is to acquire brand name, niche product lines from multi-billion dollar companies that divest mature products to focus on newly discovered molecules. 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. The Company disclaims, however, any intent or obligation to update forward-looking statements.
American Vanguard Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Quarter Ended Year Ended
December 31, December 31, December 31, December 31,
2002 2001 2002 2001
----------- ----------- ----------- ----------
Net sales (1) 31,414,800 $26,078,900 $100,671,400 $83,127,900
Cost of sales 16,560,500 12,233,100 56,795,800 45,196,400
----------- ----------- ----------- -----------
Gross profit 14,854,300 13,845,800 43,875,600 37,931,500
Operating
expenses (1) 9,236,200 9,562,900 31,996,100 28,326,000
----------- ----------- ----------- -----------
Operating income
before non-
recurring items 5,618,100 4,282,900 11,879,500 9,605,500
----------- ----------- ----------- -----------
Settlement income 0 0 0 (296,400)
Gain on sale
of emission credits 0 0 0 (465,500)
----------- ----------- ----------- -----------
Operating Income 5,618,100 4,282,900 11,879,500 10,367,400
Interest expense 249,400 98,700 972,800 1,361,500
Interest income (5,900) (4,000) (24,600) (17,400)
Interest capitalized 0 0 (346,800) 0
----------- ----------- ----------- -----------
Income before
income taxes 5,374,600 4,188,200 11,278,100 9,023,300
Income taxes 2,015,500 1,449,700 4,229,300 3,383,700
----------- ----------- ----------- -----------
Net income $ 3,359,100 $ 2,738,500 $ 7,048,800 $5,639,600
=========== =========== =========== ===========
Earnings
per common share $ .87 $ .72 $ 1.83 $ 1.47
=========== =========== =========== ===========
Earnings per
common share -
assuming dilution $ .83 $ .69 $ 1.74 $ 1.43
=========== =========== =========== ===========
Weighted average
shares outstanding 3,878,134 3,819,525 3,853,467 3,824,584
=========== =========== =========== ===========
Weighted
average shares
outstanding -
assuming dilution 4,062,641 3,972,553 4,040,793 3,942,600
=========== =========== =========== ===========
(1) Certain operating expenses have been reclassified to a reduction of sales to reflect the adoption of Emerging Issues Task Force issue No. 01-9, Accounting for Consideration Given by a Vendor to a Customer or Reseller of the Vendor's Products. The reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. does not affect net income. |
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