American Vanguard Announces Record Third Quarter Results With Sales Up 24% and Net Income Up 19%.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)--Oct. 28, 2002 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 ): The Company Posts 14th Consecutive Period of Comparable Quarter Sales and Profit Growth American Vanguard Corp. (AMEX:AVD) today reported record financial results for the third quarter and nine months ended September 30, 2002. Third Quarter Financial Highlights - versus fiscal 2001 third quarter - Net sales increased 24% to $30.6 million. - Net income rose 19% to $1.8 million or $.44 per diluted share. Nine-month Financial Highlights - versus the first nine months of 2001 - 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 grew 20% to $71.5 million. - Net income was up 27% to $3.7 million or $.92 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. 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 proud to report our 14th consecutive quarter of comparable sales and earnings growth. A significant portion of the sales increase came from Folex(R), a 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 we acquired from Aventis CropScience this past June. Our gross margin declined to 42% from 46% in last year's third quarter, primarily due to a change in product mix, including the recent addition of Folex. While Folex inherently generates lower margins than our average product, we are implementing improvements to the marketing and manufacturing processes that we expect will produce stronger profitability going forward." Mr. Wintemute continued, "We have essentially finished commissioning our new 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). facility, which doubles our manufacturing capacity, and provides greater flexibility and geographic diversity. We are currently pursuing potential acquisitions and licensing opportunities. Importantly, the new plant enables us to produce compounds that could not be manufactured at our Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. facility, and positions the Company to toll manufacture for other companies. We expect to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. approximately $600,000 of expenses from the plant during the fourth quarter, without any directly related revenue generation. Nonetheless, as has been the case historically, we expect the fourth quarter to be our most profitable period of the year and we remain on track to exceed our previously stated fiscal 2002 goals." 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 $37.2 million. American Vanguard's strong financial position continues to form a solid foundation to support our internal and external growth." Mr. Wintemute concluded, "We are enthusiastic about American Vanguard's 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. outlook due to our focused business strategy, expanded manufacturing base, strong industry relationships, and track record of successful acquisitions, all of which should enable us 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>. the opportunities stemming from continued industry consolidation. We look forward to updating you on 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 Monday, October 28, 2002. 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 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 insecticides, chemical, biological, or other agents used to destroy insect pests; the term commonly refers to chemical agents only. Chemical 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. 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 Nine Months Ended
September 30, September 30, September 30, September 30,
2002 2001 2002 2001
---- ---- ---- ----
Net sales $30,555,700 $24,655,500 $71,483,600 $59,427,700
Cost of sales 17,770,700 13,239,700 40,124,900 32,963,300
------------- ------------- ----------- ------------
Gross profit 12,785,000 11,415,800 31,358,700 26,464,400
Operating
expenses 9,821,900 8,649,400 25,097,300 21,141,800
------------- ------------- ------------- ------------
Operating income
before
non-recurring
items 2,963,100 2,766,400 6,261,400 5,322,600
------------- ------------- ------------- ------------
Settlement
income 0 0 0 (296,400)
Gain on sale
of emission
credits 0 0 0 (465,500)
------------- ------------- ------------ -------------
Operating
Income 2,963,100 2,766,400 6,261,400 6,084,500
Interest
expense 248,300 300,800 723,400 1,262,800
Interest
income (6,500) (8,600) (18,700) (13,400)
Interest
capitalized (103,200) 0 (346,800) 0
-------------- ------------- ----------- ------------
Income before
income taxes 2,824,500 2,474,200 5,903,500 4,835,100
Income taxes 1,059,100 989,700 2,213,800 1,934,000
-------------- ------------- ------------- ------------
Net income $ 1,765,400 $ 1,484,500 $ 3,689,700 $ 2,901,100
============== ============= ============= ============
Earnings per
common share $ .46 $ .39 $ .96 $ .76
============== ============= ============= ============
Earnings per
common share -
assuming
dilution $ .44 $ .38 $ .92 $ .74
============== ============= ============= ============
Weighted average
shares
outstanding 3,876,374 3,828,604 3,845,155 3,826,288
============== ============= ============= ============
Weighted average
shares outstanding -
assuming
dilution 4,048,451 3,918,031 4,032,031 3,910,427
============== ============= ============= ============
2002 Summary Results of Operations
(Unaudited)
Three months Three months Three months YTD
ended March 31 ended June 30 ended Sept. 30 2002
------------------------------------------------------------
Net sales $19,309,000 $21,618,900 $30,555,700 $71,483,600
Gross profit 7,997,000 10,576,700 12,785,000 31,358,700
Operating
income 1,476,000 1,822,300 2,963,100 6,261,400
Pre-tax income 1,278,900 1,800,100 2,824,500 5,903,500
Net income $799,300 $1,125,000 $1,765,400 3,689,700
EPS - basic $.21 $.29 $.46 $.96
EPS - diluted $.20 $.28 $.44 $.92
Weighted average
shares
outstanding 3,819,571 3,829,760 3,876,374 3,845,155
Weighted average
shares
outstanding
assuming
dilution 3,996,681 4,039,909 4,048,451 4,032,031
2001 Summary Results of Operations
Three months Three months Three months
ended ended ended
March 31 June 30 Sept. 30
(Unaudited) (Unaudited) (Unaudited)
------------------------------------------------
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
ended Fiscal
Dec. 31 2001
(Unaudited)
----------------- ---------------
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
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion