American Vanguard Corporation announces third quarter results.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)--October 31, 1996-- American Vanguard Corporation (Nasdaq National Market:AMGD AMGD Acromesomelic Dysplasia, Grebe Type ) today reported financial results for the three and nine month periods ended September 30, 1996. RESULTS OF OPERATIONS (Unaudited) Quarter Quarter 9 Months 9 Months Ended Ended Ended Ended 9/30/96 9/30/95 9/30/96 9/30/95 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 $9,094,300 $11,138,200 $29,407,400 $34,815,000 Cost of sales 5,401,800 6,971,300 18,295,700 21,650,700 Gross profit 3,692,500 4,166,900 11,111,700 13,164,300 Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. 3,419,900 3,663,100 9,797,400 11,784,000 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. 272,600 503,800 1,314,300 1,380,300 Interest expense-net (228,200) (216,900) (680,700) (744,400) Income before income taxes 44,400 286,900 633,600 635,900 Income taxes (17,800) (114,700) (257,000) (256,900) Net income $ 26,600 $ 172,200 $ 376,600 $ 379,000 Per share information(1): Net income $.01 $.07 $.15 $.15 Weighted average number of shares 2,521,862 2,551,069 2,522,006 2,552,784 (1) Earnings per share have been restated to reflect a 10% stock dividend which was paid on March 15, 1996 to stockholders of record as of February 29, 1996. Commenting on the results, 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. , said, "As anticipated, sales in the third quarter of 1996 reflect the decrease in the use of some of our products due to the impact of earlier weather conditions on pest populations in the cotton market. Of note, however, the gross profit percentage improved to 40.6% for the quarter ended September 30, 1996 from 37.4% for the same period in 1995 which was primarily attributable to the sales mix sales mix See product mix. of the Company's products. The gross profit percentage remained unchanged at 37.8% for the nine months ended September 30, 1996 and 1995. Operating expenses for the 1996 periods were also lower than in the same periods the prior year, primarily due to a decrease in costs incurred to generate scientific data related to the Company's products. The Company has made a concentrated effort to control costs and expenses particularly in light of the lower sales levels in 1996. Mr. Wintemute added, "Several recent developments reinforce our optimism about the outlook for the Company in 1997 and beyond. Just last week, we announced a letter of intent to purchase Zeneca's Vapamb soil fumigant fu·mi·gant n. A chemical compound used in its gaseous state as a disinfectant. business. We expect this acquisition to close by the end of 1996 and we are looking forward to the challenge of assuming a leadership role in the growing market for this product. Additionally in September, David B. Cassidy joined the Company as Executive Vice President of our wholly-owned subsidiary Amvac Chemical Corporation. Mr. Cassidy brings to the Company more than 20 years of international chemical experience with FMC See fixed mobile convergence. Corporation and E.I. Dupont, and has already contributed to our new product development, acquisition and global expansion, marketing and sales efforts." The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward looking information 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. Forward-looking statements 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 is a diversified specialty and agricultural chemical company which has realized 20% annual growth for nearly two decades through expanded product offerings and distribution in the U.S. and abroad. Its subsidiaries include AMVAC Chemical Corp., 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 Surrey, England-based office; and Environmental Mediation, 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. CONTACT: Eric G. Wintemute, President & CEO The Equity Group Inc. James A. Barry, Vice President & CFO See Chief Financial Officer. Tamara Ehlin (714) 260-1200 (212) 836-9607 |
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