EX-99.1 2 d494491dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

AMERICAN VANGUARD REPORTS FOURTH QUARTER & FULL YEAR 2012 RESULTS

Full-Year Revenue up 22% — Full-Year Net Income up 67% — Continuing Record Performance

Newport Beach, CA – February 28, 2013 – American Vanguard Corporation (NYSE:AVD), today announced financial results for the fourth quarter and full year ended December 31, 2012.

Fiscal 2012 Financial Highlights – versus Fiscal 2011:

 

  •  

Net sales were $366.2 million compared to $301.1 million.

 

  •  

Net income was $36.8 million compared to $22.1 million.

 

  •  

Earnings per diluted share were $1.28 versus $0.79.

Fiscal 2012 Fourth Quarter Financial Highlights – versus Fiscal 2011 Fourth Quarter:

 

  •  

Net sales were $104.3 million compared to $81.8 million.

 

  •  

Net income was $11.3 million compared to $6.4 million.

 

  •  

Earnings per diluted share were $0.39 versus $0.23.

Eric Wintemute, Chairman and CEO of American Vanguard, stated: “Our record-setting performance in 2012, capped by our first $100+ million revenue quarter, was driven by strong end-use demand and consistent business execution by our organization. Compared to the prior full-year period, 2012 sales grew by 22%, gross profit margins improved from 41% to 44%, and operating expenses remained steady as a percentage of sales at 28%. This operating performance allowed us to grow our net income by 67% and increase our fully diluted earnings per share to $1.28. Our year-end cash position remained very strong; stockholders equity rose for the year by 20%; and we were able to return additional value to shareholders with a special $0.10/share dividend during December.”

Mr. Wintemute continued: “Strong global demand for food, feed, fiber and bio-fuels continues to encourage growers to support the Yield Enhancing Solutions - YES™ that American Vanguard provides. The practice of Integrated Pest Management has stimulated demand for our comprehensive offering of corn soil insecticides and proprietary closed delivery systems. In 2012, we invested in significant capital improvements at our Axis, Alabama facility to support both our growing granular soil insecticide franchise and our strong cotton defoliant business. We also established an international subsidiary in the Netherlands to focus resources on the important long-range objective of global expansion. At year-end, in a bold new initiative, we formed a majority-owned subsidiary with TyraTech, an innovative developer of natural products that will allow us to participate in the growing demand for “green technology” in commercial, consumer and agricultural pest control markets.”

Mr. Wintemute concluded: “In 2013, we are well-positioned to satisfy the continuing strong demand for our many crop protection products. Attractive crop commodity prices continue to give growers the financial health and incentive to invest in our proven technologies for maximizing their harvest output. We are prepared to satisfy the increasing demand for soil insecticides in corn and other crops by maintaining full production of our market-leading products & proprietary equipment systems. We expect to meet the increased demand for our corn herbicide Impact® which has been stimulated by our co-marketing agreement with Monsanto’s Roundup® brands. We believe that 2013 will be very promising for American Vanguard and look forward to providing additional information about those prospects during our earnings conference call.”

Conference Call

Eric Wintemute, Chairman & CEO and David T. Johnson, VP & CFO, will conduct a conference call focusing on the financial results at 12:00 pm ET / 9:00 am PT on Thursday, February 28, 2013. Interested parties may participate in the call by dialing (201) 493-6744 – please call in 10 minutes before the call is scheduled to begin, and ask for the American Vanguard call. 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 and the Standard & Poor’s Small Cap 600 Index. 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.

 

Company Contact:    Investor Representative

American Vanguard Corporation

    The Equity Group Inc.
William A. Kuser, Director of Investor Relations    www.theequitygroup.com

(949) 260-1200

    Lena Cati

williamk@amvac-chemical.com

    Lcati@equityny.com
   (212) 836-9611

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

Years ended December 31, 2012, 2011 and 2010

(Dollars in thousands, except per share data)

 

     2012     2011     2010  

Net sales

    $ 366,190      $ 301,080      $ 226,859   

Cost of sales

      205,065        178,012        140,538   
  

 

 

    

 

 

    

 

 

  

Gross profit

      161,125        123,068        86,321   

Operating expenses

      101,802        83,842        67,130   
  

 

 

    

 

 

    

 

 

  

Operating income

      59,323        39,226        19,191   

Interest expense

      2,872        3,569        3,171   

Interest income

      (1 )      (3 )      —    

Interest capitalized

      (400 )      (109 )      (154 ) 

Extinguishment of debt

      —          546        —    
  

 

 

    

 

 

    

 

 

  

Income before provision for income taxes

      56,852        35,223        16,174   

Income taxes expense

      20,026        13,155        5,190   
  

 

 

    

 

 

    

 

 

  

Net income

      36,826        22,068        10,984   

Net loss attributable to non-controlling interest

      41        —          —     
  

 

 

    

 

 

    

 

 

  

Net income attributable to American Vanguard

    $ 36,867      $ 22,068      $ 10,984   
  

 

 

    

 

 

    

 

 

  

Change in fair value of interest rate swaps

      158        (869 )      1,094  

Foreign currency translation adjustment

      330        (933 )      201   
  

 

 

    

 

 

    

 

 

  

Comprehensive income

    $ 37,355      $ 20,266      $ 12,279   
  

 

 

    

 

 

    

 

 

  

Earnings per common share—basic

    $ 1.32      $ 0.80      $ 0.40   
  

 

 

    

 

 

    

 

 

  

Earnings per common share—assuming dilution

    $ 1.28      $ 0.79      $ 0.40   
  

 

 

    

 

 

    

 

 

  

Weighted average shares outstanding—basic

      27,914        27,559        27,385   
  

 

 

    

 

 

    

 

 

  

Weighted average shares outstanding—assuming dilution

      28,756        27,875        27,652   
  

 

 

    

 

 

    

 

 

  

AMERICAN VANGUARD CORPORATION

AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

December 31, 2012 and 2011

(Dollars in thousands, except per share data)

 

     2012     2011  
Assets     

Current assets:

     

Cash

    $ 38,476      $ 35,085   

Receivables:

     

Trade, net of allowance for doubtful accounts of $623 and $340, respectively

      76,073        68,611   

Other

      1,230        1,187   
  

 

 

    

 

 

  
     77,303        69,798   
  

 

 

    

 

 

  

Inventories

      87,951        71,068   

Prepaid expenses

      13,710        4,167   

Income taxes receivable

      —          203   

Deferred income tax assets

      4,877        3,417   
  

 

 

    

 

 

  

Total current assets

      222,317        183,738   

Property, plant and equipment, net

      45,701        35,537   

Intangible assets, net

      113,521        116,189   

Other assets

      18,351        7,094   
  

 

 

    

 

 

  
   $ 399,890      $ 342,558   
  

 

 

    

 

 

  
Liabilities and Stockholders’ Equity     

Current liabilities:

     

Current installments of long-term debt

    $ 16,247      $ 14,460   

Current installments of other liabilities

      1,839        1,038   

Accounts payable

      32,838        23,214   

Deferred revenue

      20,427        7,571   

Accrued program costs

      32,335        25,910   

Tax payable

      1,313        —     

Accrued expenses and other payables

      8,671        6,832   
  

 

 

    

 

 

  

Total current liabilities

      113,670        79,025   

Long-term debt, excluding current installments

      36,196        51,917   

Other liabilities, excluding current installments

      5,425        5,955   

Deferred income tax liabilities

      19,163        18,589   
  

 

 

    

 

 

  

Total liabilities

      174,454        155,486   
  

 

 

    

 

 

  

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 30,766,730 shares in 2012 and 29,845,047 shares in 2011

      3,077        2,985   

Additional paid-in capital

      54,323        45,966   

Accumulated other comprehensive loss

      (1,762 )      (2,250 ) 

Retained earnings

      174,243        143,524   
  

 

 

    

 

 

  
     229,881        190,225   

Less treasury stock at cost, 2,310,634 shares in 2012 and 2,260,996 shares in 2011

      (4,804 )      (3,153 ) 
  

 

 

    

 

 

  

American Vanguard stockholders’ equity

      225,077        187,072   

Non-controlling interest

      359        —     
  

 

 

    

 

 

  

Total stockholders’ equity

      225,436        187,072   
  

 

 

    

 

 

  
   $ 399,890      $ 342,558   
  

 

 

    

 

 

  

AMERICAN VANGUARD CORPORATION

AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

Years ended December 31, 2012, 2011 and 2010

(Dollars in thousands, except per share data)

 

     2012     2011     2010  

Increase in cash

       

Cash flows from operating activities:

       

Net income

    $ 36,826      $ 22,068      $ 10,984   

Adjustments to reconcile net income to net cash provided by operating activities:

       

Depreciation and amortization of fixed and intangible assets

      13,487        13,546        11,123   

Amortization of other long term assets

      2,925        1,983        3,258   

Amortization of discounted liabilities

      818        1,371        —    

Stock-based compensation

      2,950        1,994        1,122   

Tax benefit from exercise of stock options

      (621 )      —         —    

(Decrease) increase in deferred income taxes

      (886 )      4,711        5,342   

Changes in assets and liabilities associated with operations:

       

(Increase) decrease in net receivables

      (7,505 )      (35,021 )      6,967   

(Increase) decrease in inventories

      (16,883 )      2,986        (1,542 ) 

Decrease (increase) in income tax receivable/payable, net

      2,137        6,512        (2,583 ) 

Increase in prepaid expenses and other assets

      (23,725 )      (1,823 )      (2,235 ) 

Increase in accounts payable

      9,781        8,384        3,095   

Increase in deferred revenue

      12,856        2,003        5,568   

Increase (decrease) in other payables and accrued expenses

      8,264        10,552        (7,909 ) 
  

 

 

    

 

 

    

 

 

  

Net cash provided by operating activities

      40,424        39,266        33,190   
  

 

 

    

 

 

    

 

 

  

Cash flows from investing activities:

       

Capital expenditures

      (17,628 )      (6,261 )      (8,004 ) 

Acquisitions of intangible assets

      (3,473 )     (316 )      (32,677 ) 
  

 

 

    

 

 

    

 

 

  

Net cash used in investing activities

      (21,101 )      (6,577 )      (40,681 ) 
  

 

 

    

 

 

    

 

 

  

Cash flows from financing activities:

       

Net (repayments) borrowings under line of credit agreement

      —         (7,300 )      4,700   

Payments on long-term debt

      (8,443 )      (8,429 )      (8,107 ) 

Payment on other long-term liabilities

      (6,035 )      (401 )      —    

Tax benefit from exercise of stock options

      621        —          —  

Increase in other notes payable

      (51 )      20,063        11,586   

Proceeds from the issuance of common stock (sale of stock under ESPP and exercise of stock options)

      3,227        580        768   

Non-controlling interest contribution

      400        —         —    

Payment of cash dividends

      (6,148 )      (2,205 )      (819 ) 
  

 

 

    

 

 

    

 

 

  

Net cash (used in) provided by financing activities

      (16,429 )      2,308        8,128   
  

 

 

    

 

 

    

 

 

  

Net increase in cash

      2,894        34,997        637   

Effect of exchange rate changes on cash

      497        (1,070 )      138   

Cash at beginning of year

      35,085        1,158        383   
  

 

 

    

 

 

    

 

 

  

Cash at end of year

    $ 38,476      $ 35,085      $ 1,158   
  

 

 

    

 

 

    

 

 

  

Supplemental cash flow information:

       

Cash paid during the year for:

       

Interest

    $ 1,891      $ 2,055      $ 3,661   
  

 

 

    

 

 

    

 

 

  

Income taxes

    $ 18,048      $ 6,359      $ 2,205