American Vanguard Reports Third Quarter & Nine Month 2009 Results
http://www.businesswire.com/news/home/20091104005725/en
NEWPORT BEACH, Calif.--(Business Wire)--
American Vanguard Corporation (NYSE:AVD), today announced financial results for
the three and nine month periods ended September 30, 2009.
Fiscal 2009 Third Quarter Financial Highlights - versus Fiscal 2008 Third
Quarter:
* Net sales were $66.4 million compared to $67.6 million.
* Net income was $2.1 million compared to $6.0 million.
* Earnings per diluted share were $0.08 versus $0.22.
Fiscal 2009 Nine Month Financial Highlights - versus Fiscal 2008 Nine Month
Results:
* Net sales were $158.5 million compared to $166.5 million.
* Net income was $2.8 million compared to $12.1 million.
* Earnings per diluted share were $0.10 versus $0.44.
Eric Wintemute, President and CEO of American Vanguard, stated: "Amidst
challenging conditions in the Ag Chemical marketplace presently, we delivered
quarterly sales revenues roughly equal to the same period last year. While some
of our product portfolio outperformed the prior year period, we were negatively
impacted by diminished sales of two very important seasonal contributors.
Reduced demand for our Dibrom mosquito adulticide resulted from less hurricane
related precipitation in the Gulf Coast region. Relative to a very strong season
in 2008, sales of this highly profitable mosquito eradicator were off by about
70% this year. Additionally, quarterly global sales of our leading fungicide
product were about 35% below the prior year, as a result of reduced demand in
international markets.
"As we previously reported, we have reacted to recent softness in domestic
market demand by scaling back the production output of our manufacturing
facilities in order to refrain from building excess inventories. Running
factories at reduced operating rates has made it necessary to expense unabsorbed
overheads resulting in lower gross profit margins. Indeed, the combination of
lower sales of high margin products like Dibrom and the expensing of unabsorbed
manufacturing costs has resulted in diminished profitability in the current
quarter."
Mr. Wintemute continued: "We have made significant progress toward the balance
sheet objectives that we established in our last quarterly report to
shareholders. During the current quarter, we reduced inventory levels by over
10%, maintained our diligence in receivables collection and generated sufficient
cash to reduce the outstanding balance on our revolving credit line by over
35%."
Mr. Wintemute concluded, "Our organization is focusing its full attention on
improving our operating performance, achieving better financial results and
strengthening our corporate balance sheet."
Conference Call
Eric Wintemute, President & CEO, Trevor Thorley, EVP & COO and David T. Johnson,
CFO, will conduct a conference call focusing on the financial results at 12:00
pm ET / 9:00 am PT on Wednesday, November 4, 2009. Interested parties may
participate in the call by dialing 706-679-3155 - please call in 10 minutes
before the call is scheduled to begin, and ask for the American Vanguard call
(conference ID # 33510653). The conference call will also be webcast live via
the News and Media section of the Company`s web site at
www.american-vanguard.com. To listen to the live webcast, go to the web site at
least 15 minutes early to register, download 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 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 and Russell 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 the conference call referenced 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.
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
(Unaudited)
For the three months For the nine months
ended September 30 ended September 30
2009 2008 2009 2008
Net sales $ 66,371 $ 67,636 $ 158,493 $ 166,478
Cost of sales 45,007 38,850 102,154 96,344
Gross profit 21,364 28,786 56,339 70,134
Operating expenses 17,470 18,111 49,570 47,493
Operating income 3,894 10,675 6,769 22,641
Interest expense 825 1,098 2,622 3,345
Interest income - - - (75 )
Interest capitalized (12 ) (63 ) (38 ) (171 )
Income before income taxes 3,081 9,640 4,185 19,542
Income tax expense 984 3,611 1,393 7,438
Net income $ 2,097 $ 6,029 $ 2,792 $ 12,104
Earnings per common share-basic $ .08 $ .23 $ .10 $ .46
Earnings per common share-assuming dilution $ .08 $ .22 $ .10 $ .44
Weighted average shares outstanding-basic 27,124 26,788 27,071 26,596
Weighted average shares outstanding-assuming dilution 27,609 27,580 27,660 27,500
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
ASSETS
September 30, Dec. 31,
2009 2008
(Unaudited) (Note)
Current assets:
Cash and cash equivalents $ 901 $ 1,229
Receivables:
Trade, net of allowance for doubtful accounts of $330 and $472 56,355 51,405
Other 328 563
56,683 51,968
Inventories 99,475 90,626
Prepaid expenses 1,568 1,688
Total current assets 158,627 145,511
Property, plant and equipment, net 40,247 41,241
Intangible assets 88,083 91,079
Other assets 9,443 9,106
LIABILITIES AND STOCKHOLDERS` EQUITY
$ 296,400 $ 286,937
September 30, Dec. 31,
2009 2008
(Unaudited) (Note)
Current liabilities:
Current installments of long-term debt $ 9,506 $ 6,656
Accounts payable 17,390 16,196
Accrued program costs 24,989 16,204
Accrued expenses and other payables 5,283 6,767
Income taxes payable 954 3,332
Total current liabilities 58,122 49,155
Long-term debt, excluding current installments 72,268 75,748
Deferred income taxes 6,021 6,091
Total liabilities 136,411 130,994
Commitments and contingent liabilities
Stockholders` Equity:
Preferred stock, $.10 par value per share; authorized 400,000 shares; none issued - -
Common stock, $.10 par value per share; authorized 40,000,000 shares; issued 29,412,015 shares at September 30, 2009 and 29,209,863 shares at December 31, 2008 2,941 2,920
Additional paid-in capital 40,215 38,873
Accumulated other comprehensive loss (2,091 ) (3,593 )
Retained earnings 122,077 120,896
163,142 159,096
Less treasury stock, at cost, 2,260,996 shares at September 30, 2009 and December 31, 2008 (3,153 ) (3,153 )
Total stockholders` equity 159,989 155,943
$ 296,400 $ 286,937
Note: The balance sheet at December 31, 2008 has been derived from the audited
financial statements at that date.
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For The Nine Months Ended September 30, 2009 and 2008
(Unaudited)
Increase (decrease) in cash 2009 2008
Cash flows from operating activities:
Net income $ 2,792 $ 12,104
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 10,124 8,711
Deferred income tax (70 ) 774
Stock-based compensation expense related to stock options and employee stock purchases 895 554
Changes in assets and liabilities associated with operations:
Increase in receivables (4,715 ) (10,461 )
Increase in inventories (8,849 ) (25,792 )
Increase in prepaid expenses and other assets (2,281 ) (1,702 )
Increase in accounts payable 2,351 4,317
Increase in other current liabilities 4,103 9,303
Net cash provided (used in) operating activities 4,350 (2,192 )
Cash flows from investing activities:
Capital expenditures (3,746 ) (8,101 )
Acquisitions of intangible assets - (8,892 )
Net cash used in investing activities (3,746 ) (16,993 )
Cash flows from financing activities:
Net borrowings under line of credit agreement 3,000 23,000
Principal payments on long-term debt (3,080 ) (3,080 )
Proceeds from the issuance of common stock from exercise of stock options and sale of stock under ESPP 468 1,329
Acquisition of Treasury stock - (408 )
Payment of cash dividends (1,341 ) (1,323 )
Net cash (used in) provided by financing activities (953 ) 19,518
Net (decrease) increase in cash (349 ) 333
Cash and cash equivalents at beginning of period 1,229 3,201
Effect of exchange rate changes on cash 21 (380 )
Cash and cash equivalents as of September 30, $ 901 $ 3,154
American Vanguard Corporation
William A. Kuser, 949-260-1200
Director of Investor Relations
williamk@amvac-chemical.com
or
Investor Representative
The Equity Group Inc.
Lena Cati, 212-836-9611
Lcati@equityny.com
www.theequitygroup.com
Copyright Business Wire 2009
