American Vanguard Announces Record Second Quarter Results; Net Income Up 37% On 9% 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)--Aug. 5, 2002 The Company Posts 13th Consecutive Period of Comparable Quarter Sales and Profit Growth American Vanguard Vanguard Any of three unmanned U.S. experimental satellites. Vanguard I (1958), the second U.S. satellite placed in orbit around Earth (after Explorer 1), was a tiny 3.25-lb (1.47-kg) sphere with two radio transmitters. 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 reported record financial results for the second quarter and six months ended June 30, 2002. The second quarter represents the Company's 13th consecutive quarter of sales and earnings growth versus the comparable quarter of the prior year. Second Quarter Financial Highlights - versus fiscal 2001 second quarter - Net sales increased 18% to $40.9 million. - Gross profit margin increased to 45% from 43%. - Pre-tax income was up 30% to $3.1 million. - Net income rose 36% to $1.9 million or $.48 per diluted share. Six-month Financial Highlights - versus the first six months of 2001 - Net sales increased 18% to $40.9 million. - Gross profit margin increased to 45% from 43%. - Pre-tax income was up 30% to $3.1 million. - Net income rose 36% to $1.9 million or $.48 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 extremely pleased with our results for the second quarter and first half of 2002. The increases in sales and earnings in the quarter were largely generated from our 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. and 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. products. We saw especially strong growth from Fortress, a corn soil insecticide we acquired in 2000, which helped produce our strong gross margin of 49% for the quarter." Mr. Wintemute continued, "We remain focused on the Company's primary growth strategy - acquiring niche product lines from multi-billion dollar companies in our industry. The successful implementation of this strategy is facilitated by our fundamental strengths in personnel, manufacturing, registration and marketing, as well as the consolidation that continues to take place in our industry. In this regard, during the second quarter we acquired 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 USA, immediately prior to Bayer AG's acquisition of Aventis. Folex rounds out our cotton portfolio, as we will now sell products that can be used at all stages of cotton farming. We also recently announced that we acquired certain assets associated with the Ambush (language) AMBUSH - A language for linear programming problems in a materials processing and transportation network. ["AMBUSH - An Advanced Model Builder for Linear Programming", T.R. White et al, National Petroleum Refiners Assoc Comp Conf (Nov 1971)]. (R) 25WP insecticide business from Syngenta Crop Protection, Inc. This product is also an excellent addition to our portfolio, as it can be used on a broad range of crops and allows us to offer our customers another class of insecticides insecticides, chemical, biological, or other agents used to destroy insect pests; the term commonly refers to chemical agents only. Chemical Insecticides . We will begin selling both products during the second half of 2002. "Additionally, we recently acquired the assets associated with SmartBox(TM), the only EPA-approved closed delivery system for dispensing dispensing provision of drugs or medicines as set out properly on a lawful prescription. A prescription can only be filled, the drugs supplied, by a registered pharmacist, veterinarian, dentist or member of the medical profession. granular granular /gran·u·lar/ (gran´u-lar) made up of or marked by presence of granules or grains. gran·u·lar adj. 1. Composed or appearing to be composed of granules or grains. 2. products. Prior to the asset purchase, we offered two products to our customers in the system, and sold out of our supply of SmartBoxes this spring due to high demand. We are working with Redball to implement some improvements to the system and manufacture the equipment, and will have a new supply in time for the 2003 planting season. We are also evaluating using the system for other product lines." James Barry James Barry may refer to:
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 $35.5 million or $9.26 per share at June 30, 2002, which forms a solid foundation to support our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth strategy." Mr. Wintemute concluded, "We are committed to building a portfolio of products to manufacture at our recently acquired facility in Axis, Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). , and are actively exploring acquisitions, contract manufacturing opportunities and selected generic market opportunities. We have a pipeline of promising prospects, and should be in a better position to receive firm commitments once we finish commissioning the plant in the third quarter. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , we are ahead of our previously stated fiscal 2002 goals, which include sales growth of at least 10% and a more rapid increase in earnings. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the second half of 2002 and remain confident in our long-term business plan." 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 Monday, August 5, 2002. Interested parties may participate in the call by dialing 973-321-1100 approximately 10 minutes before the call is scheduled to begin. The conference call will also be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the 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 To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. 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 diversified (di·verˑ·s specialty and agricultural products company focusing on 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 To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. mature products to focus on newly discovered molecules. In 2001, American Vanguard was named to Forbes' Best 200 Small Companies List (#155). 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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)
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
---- ---- ---- ----
Net sales $21,618,900 $19,908,900 $40,927,900 $34,772,200
Cost of sales 11,042,200 10,661,200 22,354,200 19,723,600
----------- ----------- ----------- -----------
Gross profit 10,576,700 9,247,700 18,573,700 15,048,600
Operating
expenses 8,754,400 7,481,100 15,275,400 12,492,400
----------- ----------- ----------- -----------
Operating income
before non-recurring
items 1,822,300 1,766,600 3,298,300 2,556,200
Settlement Income - (88,100) - (296,400)
Gain on sale of
emission credits - - - (465,500)
----------- ----------- ----------- -----------
Operating
income 1,822,300 1,854,700 3,298,300 3,318,100
Interest expense -
net of capitalized
interest of $243,600
for the three and
six months ended
June 30, 2002 22,200 490,000 219,300 957,200
----------- ----------- ----------- -----------
Income before
income taxes 1,800,100 1,364,700 3,079,000 2,360,900
Income taxes 675,100 545,800 1,154,700 944,300
----------- ----------- ----------- -----------
Net income $ 1,125,000 $ 818,900 $ 1,924,300 $ 1,416,600
============ =========== =========== ===========
Earnings per
common share (1) $ .29 $ .21 $ .50 $ .37
============ =========== =========== ===========
Earnings per common share -
assuming
dilution (1) $ .28 $ .21 $ .48 $ .36
============ =========== =========== ===========
Weighted average
shares
outstanding (1) 3,829,760 3,823,671 3,829,286 3,825,112
============ =========== =========== ===========
Weighted average
shares outstanding -
assuming
dilution (1) 4,039,909 3,928,132 4,025,074 3,927,023
============ =========== =========== ===========
(1) Retroactively restated to reflect a 4-for-3 stock split
distributed April 12, 2002 to common stockholders of record as of
March 29, 2002.
2001 Summary Results of Operations
Three months Three months Three months
ended March 31 ended June 30 ended Sept. 30
-------------------------------------------------
Net sales $14,863,300 $19,908,900 $24,655,500
Gross profit 5,800,900 9,247,700 11,415,800
Operating income 1,463,400 1,854,700 2,766,400
Pre-tax income 996,200 1,364,700 2,474,200
Net income $597,700 $818,900 $1,484,500
EPS - basic $.16 $.21 $.39
EPS - diluted $.15 $.21 $.38
Weighted average
shares outstanding 3,826,569 3,823,671 3,828,604
Weighted average
shares outstanding
assuming dilution 3,935,827 3,928,132 3,918,031
Three months Fiscal
ended Dec. 31 2001
-------------------------------
Net sales $27,588,800 $87,016,500
Gross profit 15,355,700 41,820,100
Operating income 4,282,900 10,367,400
Pre-tax income 4,188,200 9,023,300
Net income $2,738,500 $5,639,600
EPS - basic $.72 $1.48
EPS - diluted $.69 $1.43
Weighted average
shares outstanding 3,819,525 3,824,584
Weighted average
shares outstanding
assuming dilution 3,972,553 3,942,600
2002 Summary Results of Operations
(Unaudited)
Three months Three months YTD
ended March 31 ended June 30 2002
------------------------------------------------
Net sales $19,309,000 $21,618,900 $40,927,900
Gross profit 7,997,000 10,576,700 18,573,700
Operating income 1,476,000 1,822,300 3,298,300
Pre-tax income 1,278,900 1,800,100 3,079,000
Net income $799,300 $1,125,000 $1,924,300
EPS - basic $.21 $.29 $.50
EPS - diluted $.20 $.28 $.48
Weighted average
shares outstanding 3,819,571 3,829,760 3,829,286
Weighted average
shares outstanding
assuming dilution 3,996,681 4,039,909 4,025,074
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