American Vanguard Announces Record Third Quarter Results with Net Income up 59% on 10% Sales Increase; Company Posts 18th Consecutive Period of Comparable Quarter Growth.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)--Nov. 13, 2003 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. Corporation (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 third quarter ended September 30, 2003. Third Quarter Financial Highlights - versus fiscal 2002 third 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 10% to $32.9 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 59% to $4.7 million. -- Net income rose 59% to $2.8 million or $.45 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. Nine-month Financial Highlights - versus the first nine months of 2002 -- Net sales grew 25% to $86.2 million. -- Operating income increased 46% to $9.2 million. -- Net income was up 56% to $5.8 million or $.93 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 quarter and year-to-date, and are proud to be announcing our 18th consecutive quarter of comparable growth. The key drivers of the growth for the quarter were our cotton 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. , soil fumigant fu·mi·gant n. A chemical compound used in its gaseous state as a disinfectant. and vegetable 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. . Additionally, we continued to experience strong sales from the product line we purchased from Pace International early this year. Our customers have responded positively to this product line, which includes the top performing snail snail, name commonly used for a gastropod mollusk with a shell. Included in the thousands of species are terrestrial, freshwater, and marine forms. Some eat both plant and animal matter; others eat only one type of food. and slug control product in the market." James Barry James Barry may refer to:
A capitalization ratio comparing long-term debt to shareholders' equity. of .38:1.00, 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 $45.6 million." Mr. Wintemute concluded, "The solid results for the quarter and year-to-date reflect the successful implementation of our growth strategy. Our goal is to be the preferred buyer for larger companies divesting niche product lines due to industry consolidation. Based on our track record and distinct characteristics, we are enthusiastic about the Company's prospects for continued growth through additional product acquisitions and licensing opportunities. We are currently on track to comfortably meet our previously stated goals of double-digit sales and net income growth for fiscal 2003. We 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, November 13, 2003. Interested parties may participate in the call by dialing 973-935-8504 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 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 that develops and markets products for crop protection and management, turf turf: see lawn. turf In horticulture, the surface layer of soil with its matted, dense vegetation, usually grasses grown for ornamental or recreational use. and ornamentals management and public and animal health. The Company's basic strategy is to acquire brand name, niche product lines from larger 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. During 2003, American Vanguard was recognized as one of Business Week's Hot Growth Companies (#94), Fortune Small Business' America's 100 Fastest Growing Small Companies (#35) and Forbes' Hot Shots: 200 Up and Coming Companies (#23). 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.
American Vanguard Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
------------------------------------------------
Net sales (1) $32,948,000 $29,841,000 $86,234,000 $69,257,000
Cost of sales 18,091,000 17,826,000 48,056,000 40,236,000
------------------------------------------------
Gross profit 14,857,000 12,015,000 38,178,000 29,021,000
Operating expenses (1) 10,148,000 9,052,000 29,013,000 22,760,000
------------------------------------------------
Operating income 4,709,000 2,963,000 9,165,000 6,261,000
Interest expense 226,000 248,000 790,000 723,000
Interest income (2) --- (6,000) (302,000) (19,000)
Interest capitalized (19,000) (103,000) (309,000) (347,000)
------------------------------------------------
Income before
income taxes 4,502,000 2,824,000 8,986,000 5,904,000
Income taxes (2) 1,687,000 1,059,000 3,221,000 2,214,000
------------------------------------------------
Net income $2,815,000 $1,765,000 $5,765,000 $3,690,000
================================================
Earnings per common
share (3) $. 48 $.31 $.99 $.64
================================================
Earnings per common
share -
assuming dilution (3) $.45 $.30 $.93 $.61
================================================
Weighted average
shares outstanding
(3) 5,883,000 5,815,000 5,845,000 5,768,000
================================================
Weighted average
shares outstanding -
assuming dilution (3) 6 ,232,000 6,073,000 6,172,000 6,048,000
================================================
(1) For the three and nine months ended September 30, 2002,
certain operating expenses were 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 did not affect
net income, and conforms with the presentation of the three and nine
months ended September 30, 2003.
(2) Interest income for the nine months ended September 30, 2003,
primarily relates to amended tax returns, which generated a refund
from the state of California. The refund also lowered the effective
tax rate.
(3) Retroactively restated to reflect a 3-for-2 stock split
distributed on April 11, 2003 to common stockholders of record as of
March 28, 2003.
2003 Summary Results of Operations
(Unaudited)
Three months Three months Three months
ended March ended June ended Sept.
31 30 30
------------------------------------
Net sales $27,342,000 $25,944,000 $32,948,000
Gross profit 11,368,000 11,953,000 14,857,000
Operating income 2,077,000 2,379,000 4,709,000
Net income $1,225,000 $1,725,000 2,815,000
EPS - basic $.21 $.30 $.48
EPS - diluted $.20 $.28 $.45
Weighted average shares
outstanding 5,826,000 5,827,000 5,883,000
Weighted average shares
outstanding
assuming dilution 6,090,000 6,164,000 6,232,000
2002 Summary Results of Operations
(Quarterly Data - Unaudited)
Three months Three months Three months Three months
ended ended ended ended Fiscal
March 31 June 30 Sept. 30 Dec. 31 2002
(Audited)
-------------------------------------------------------------
Net sales $19,018,000 $20,397,000 $29,841,000 $31,415,000 $100,671,000
Gross
profit 7,706,000 9,355,000 11,960,000 14,855,000 43,876,000
Operating
income 1,476,000 1,822,000 2,963,000 5,619,000 11,880,000
Net income $799,000 $1,125,000 $1,765,000 $3,360,000 $7,049,000
EPS - basic $.14 $.20 $.31 $.57 $1.22
EPS -
diluted $.13 $.19 $.30 $.54 $1.16
Weighted
average
shares
outstanding 5,729,000 5,744,000 5,815,000 5,817,000 5,780,000
Weighted
average
shares
outstanding
assuming
dilution 5,995,000 6,060,000 6,073,000 6,094,000 6,061,000
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