American Vanguard Reports 2007 Fourth Quarter and Full Year Results.Quarterly Net Income Rises 40% on 26% Sales Increase Full Year 2007 Net Income Rises 21% on 12% Gain in Sales 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. -- American Vanguard Corporation (NYSE NYSE See: New York 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 financial results for the fourth quarter and full year ended December 31, 2007. Fourth Quarter Financial Highlights - versus fiscal 2006 fourth 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 26% to $69.1 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. grew 20% to $12.8 million. * Net income rose 40% to $7.6 million. * Earnings per diluted share were $0.28, up from $0.20 in the comparable period of 2006. Full Year Financial Highlights - versus the fiscal 2006 full year period * Net sales increased 12% to $216.7 million. * Operating income rose 23% to $36.0 million. * Net income increased 21% to $18.7 million. * Earnings per diluted share were $0.68, up from $0.57 for the 2006 full year period. 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 pleased to report continued sales and earnings growth for the fourth quarter and full year 2007. We are gaining traction on a number of key initiatives discussed during 2007, and the benefits of those successes will be increasingly evident in calendar 2008." Among the major performance highlights: * The Company's extremely effective 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. , Impact[R] grew substantially in 2007 and should continue to gain market share based on superior performance and its increasing recognition as a preferred complement to the widespread use of Roundup[R] and other glyphosate glyphosate herbicide and desiccant for grains. Heavy doses to birds cause soft shells on their eggs. products. * Counter[R] and Aztec[R], our primary owned and licensed corn soil insecticides, both contributed significantly to quarterly and annual 2007 results and each should figure prominently in 2008, as corn growers are strongly encouraged to adhere more closely to refuge acre requirements and they begin to recognize the yield enhancement benefits of using these products in conjunction with their genetically modified genetically modified Adjective (of an organism) having DNA which has been altered for the purpose of improvement or correction of defects genetically modified genetic adj [food etc] → seeds. * Our business remains quite strong in potatoes, vegetables, fruits, and specialty turf & ornamental markets, niches in which we are particularly expert and where several new American Vanguard initiatives should further extend our penetration of these high-value segments. * Sales of Bidrin[R], our cotton insecticide, were up during the fourth quarter although full year sales were down due to acreage shifts this past season from cotton to corn, a decline which may stabilize in 2008. * In recent months, we acquired a PCNB PCNB pentachloronitrobenzene. fungicide fungicide (fŭn`jəsīd', fŭng`gə–), any substance used to destroy fungi. Some fungi are extremely damaging to crops (see diseases of plants), and others cause diseases in humans and other animals (see fungal infection). product line from Chemtura and the Orthene[R] insecticide line from Valent, and both are already demonstrating their ability to contribute to future sales. * Additionally, we expanded our high-quality domestic manufacturing capability by establishing a new presence in the Midwest (at Hannibal, Missouri Hannibal is a Mississippi river city of 17,757 (2000 census), located in Marion and Ralls County, Missouri. Hannibal is located at the intersection of U.S. highways 36 and 61, approximately 110 miles north of St. Louis. ) and the Pacific Northwest (at Marsing, Idaho Marsing is a city in Owyhee County, Idaho, United States. The population was 890 at the 2000 census. Geography Marsing is located at (43.545484, -116.807811)GR1. ) which will allow us to better serve these regional markets and permit optimization of production scheduling and logistics. Mr. Wintemute concluded, "We are very optimistic about American Vanguard's position in the dynamic crop protection market. Our management team continues to demonstrate its ability to acquire, license and build upon niche product lines. The benefits to be gained by utilizing our portfolio of granular corn soil insecticide products and our proprietary application equipment are becoming self-evident with the release of university-validated yield enhancement performance data. We are optimistic that corn growers will increasingly choose to embrace a "dual" insect management approach by using our solution in concert with their genetically modified seed. We anticipate continued growth in our herbicide franchise, as Impact[R] receives expanded label endorsement from glyphosate suppliers for its ability to eliminate "tough-to-control" weeds. Importantly, we will continue to leverage our low-cost, high-quality U.S. manufacturing capabilities and will pursue international expansion with a variety of independent and collaborative efforts. We believe that we hold an enviable position in a number of important growth segments of the dynamically changing and rapidly growing agricultural industry." Conference Call Eric Wintemute, President and CEO, and James Barry James Barry may refer to:
About American Vanguard American Vanguard Corporation is a diversified specialty and agricultural products company that develops and markets products for crop protection and management, turf and ornamentals management and public and animal health. American Vanguard is included on the Russell 2000[R] and Russell[R] 3000 Indexes. 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 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. [TABLE OMITTED] |
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