American Vanguard Announces Record Third Quarter Results.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. 1, 2001 American Vanguard 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 reported financial results for the third quarter and nine months ended September 30, 2001. The third quarter represents the Company's tenth consecutive quarter of comparable quarter growth. Third Quarter Financial Highlights - versus fiscal 2000 third quarter - Net sales rose 15% to $24,655,500. - Operating income increased 33% to $2,766,400. - Net income grew 46% to $1,484,500 or $.51 per diluted share. Nine-Month Financial Highlights - versus the first nine months of 2000 - 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 16% to $59,427,700. - 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. (before non-recurring income of $761,900) was up 26% to $5,322,600. - Net income rose 63% to $2,901,100 or $.98 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, commented, "We are pleased with the results for the third quarter and first nine months of the year. While we were deeply saddened by the tragic events of September 11th, we did not experience any major disruption in business. Additionally, we do not anticipate a significant impact from the economic slowdown, as our products are priced competitively and fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. a basic need to safeguard crops and people from insects and other pests. "We remain on target for fiscal 2001 sales to grow more than 10% over the 2000 level and net income to grow at a faster rate. We believe our solid financial position is an important factor in further expansion and as of September 30, 2001, the Company had $23.4 million in working capital 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 $31.2 million or $10.90 per share. Additionally, our EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the trailing 12 months is $12.7 million or $4.37 per share." Mr. Wintemute continued, "We are delighted to welcome two of our newest institutional shareholders, T. Rowe Price T. Rowe Price (NASDAQ: TROW) is an independent global investment management firm and mutual fund manager based in Baltimore, Maryland. It was founded in 1937 by Thomas Rowe Price, Jr.. T. and William D. Witter witter Verb Chiefly Brit informal to chatter or babble pointlessly or at unnecessary length [origin unknown] witter verb chatter, chat, rabbit (on) , who purchased a significant portion of the 400,000 shares of the Company's stock sold by our two founders in a previously announced transaction. Also, we were honored that the Company was recently included in Forbes' list of the 200 Best Small Companies in America. We see this distinction as a reflection of the successful execution of our strategy." Mr. Wintemute concluded, "During the quarter, we began commissioning our recently acquired manufacturing facility in Alabama, and we expect it to be ready for operation in the first half of 2002. Our long-term growth strategy remains focused on acquiring additional product lines divested from multi-billion dollar companies. Based on continued industry consolidation, the expanded capacity and flexibility we are afforded from the new facility, and our pipeline of potential opportunities, we are confident in the successful implementation of our strategy. We are enthusiastic about the Company's prospects and look forward to reporting our progress." Conference Call Eric Wintemute, President & CEO, and James Barry James Barry may refer to:
American Vanguard Corporation is a diversified specialty and agricultural products company. Its subsidiaries include AMVAC Chemical Corporation, which develops and markets safe and effective products for agricultural and commercial uses; GemChem, Inc., a national chemical distributor; AMVAC Chemical UK Ltd., the Company's UK office; Quimica Amvac De Mexico S Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. .A. de C.V., the Company's Mexico office; and Environmental Mediation mediation, in law, type of intervention in which the disputing parties accept the offer of a third party to recommend a solution for their controversy. Mediation has long been a part of international law, frequently involving the use of an international commission, , Inc., an environmental consulting Environmental consulting is often a form of compliance consulting, in which the consultant ensures that the client maintains an appropriate measure of compliance with environmental regulations. firm. 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 judgement 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 Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
----------- ----------- ----------- -----------
Net sales $24,655,500 $21,421,800 $59,427,700 $51,011,400
Cost of sales 13,239,700 12,552,100 32,963,300 27,852,700
----------- ----------- ----------- -----------
Gross profit 11,415,800 8,869,700 26,464,400 23,158,700
Settlement income 0 0 (296,400) 0
Gain on sale of
emission credits 0 0 (465,500) 0
Operating expenses 8,649,400 6,790,400 21,141,800 18,921,700
----------- ----------- ----------- -----------
Operating income 2,766,400 2,079,300 6,084,500 4,237,000
Interest expense 300,800 390,400 1,262,800 1,272,300
Interest income (8,600) (6,300) (13,400) (8,600)
----------- ----------- ----------- -----------
Income before
income taxes 2,474,200 1,695,200 4,835,100 2,973,300
Income tax expense 989,700 678,100 1,934,000 1,189,300
----------- ----------- ----------- -----------
Net income $ 1,484,500 $ 1,017,100 $ 2,901,100 $ 1,784,000
=========== =========== =========== ===========
Earnings per
common share $ 0.52 $ 0.34 $ 1.01 $ 0.60
=========== =========== =========== ===========
Earnings per
common share
- assuming
dilution $ 0.51 $ 0.34 $ 0.99 $ 0.60
=========== =========== =========== ===========
Weighted average
shares
outstanding 2,871,453 2,962,233 2,869,716 2,967,091
=========== =========== =========== ===========
Weighted average
shares
outstanding
- assuming
dilution 2,938,523 2,981,467 2,932,820 2,986,508
=========== =========== =========== ===========
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