EX-99.1

Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE

AMERICAN VANGUARD REPORTS FIRST QUARTER 2022 RESULTS

Net Sales up 29% — Net Income up 224% vs. Q1 2021

Newport Beach, CA – May 4, 2022 – American Vanguard Corporation (NYSE: AVD) today announced financial results for the first quarter ended March 31, 2022.

Fiscal 2022 First Quarter Financial Highlights – versus Fiscal 2021 First Quarter:

☐	Net sales were $149.4 million in 2022, compared to $116.2 million in 2021.

☐	Net income was $9.9 million in 2022, compared to $3.1 million in 2021.

☐	Earnings per diluted share of $0.33 in 2022, compared to $0.10 in 2021.

☐	EBITDA¹ of $22.9 million in 2022, compared to $13.9 million in 2021.

Eric Wintemute, Chairman and CEO of American Vanguard stated: “We are pleased to report an extremely strong start to 2022 at both the top and bottom lines. We exceeded our first quarter financial targets, growing net sales by 29% and delivering gross profit margin of 41% resulting from a company-wide focus on profitability driven by pricing actions designed to offset inflationary cost escalations. Further, by exercising discipline, we reduced operating expense as a percent of sales to 31% in the first quarter of 2022 from 36% in the first quarter of 2021. These efforts helped more than triple net income for the quarter compared to the prior year period. Additionally, we continue to focus on balance sheet priorities regarding inventory levels, working capital control and debt management.”

Mr. Wintemute continued: “After seven years of relatively stagnant crop prices, during the last year we have seen higher commodity prices, which have helped spur demand for our crop protection solutions. Midwest procurement of our corn soil insecticides and Impact herbicide has eclipsed expectations, while our expanding portfolio of soybean herbicides continued to diversify our market position in row crops. In addition, we experienced steady demand for products in mosquito control, horticulture, and commercial/consumer pest control markets. Internationally, we delivered strong performance in Mexico, Central America, while expanding our position in Australia, Brazil, China and India with Green Solutions products.”

Earnings before interest, taxes, depreciation, amortization and non-cash stock compensation. Adjusted EBITDA is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income (loss), operating income (loss) or any other financial measure so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. We provide these measures because we believe that they provide helpful comparisons to other companies in our industry and peer group. The items excluded from Adjusted EBITDA are detailed in the reconciliation attached to this news release, and reflect an elimination of taxes, interest, depreciation, amortization and the effects of equity compensation. Other companies (including the Company’s competitors) may define EBITDA differently.

Mr. Wintemute commented further: “Importantly, we reliably produce solidly profitable results while self-funding the SIMPAS prescription application system, the Ultimus tracing/verification software platform, and the biological alternative Green Solutions portfolio, all three of which are critical investments in the future of American Vanguard that we expect will create long-term value for our shareholders.”

Mr. Wintemute concluded, “As we have previously indicated, looking forward, we believe that our company is situated well in both domestic and international markets. Our performance targets for 2022 include 8-11% revenue growth, profit margins of 38-40% and operating expenses of between 31% and 33% of net sales. On a solid core business foundation, we will continue to develop our key strategic growth initiatives in Green Solutions and SIMPAS/Ultimus technologies. We look forward to providing additional detail on market conditions, profitability, working capital considerations and our innovation initiatives during our upcoming earnings call.”

Conference Call

Eric Wintemute, Chairman & CEO, Bob Trogele, COO and David T. Johnson, CFO, will conduct a conference call focusing on operating performance and financial results at 4:30 pm ET / 1:30 pm PT on Wednesday, May 4, 2022. Interested parties may participate in the call by dialing 888-506-0062 or 973-528-0011 and enter code 481120—please call in 10 minutes before the conference is scheduled to begin and ask for the American Vanguard conference.

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.

Forward-Looking Statements

Certain information set forth in this release may constitute “forward looking statements” within the meaning of federal and applicable state securities laws. All statements herein that are not statements of historical fact are forward looking statements. These statements include statements regarding management’s expectations for future performance, as well as descriptions of plans and strategies and the expected results thereof. These statements reflect the current expectations of American Vanguard’s management based on currently known facts and circumstances, and should not be construed as assurances of performance or as guaranties of the actual outcomes. Actual results may differ from those expressed in forward looking statements, and those differences may be material and adverse. Factors that could cause actual results to differ from expectations include the ongoing effects of the COVID-19 pandemic and government responses and economic conditions resulting therefrom; increasing costs and diversion of management attention associated with our pending activism campaign and the response thereto; the effect of international exchange rates and other local, national and foreign economic conditions; weather and climate conditions; changes in regulatory policy and in specific regulations and permitting processes that affect our products, and other risks as detailed from time-to-time in the Company’s SEC reports and filings. The Company’s quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2022, filed with the SEC on May 4, 2022, contains a list of risk factors that may cause results to differ from expectations. These risk factors will be updated from time to time in accordance with the requirements of the Securities Exchange Act of 1934, as amended, and the regulations thereunder (“Exchange Act”), or otherwise in our Exchange Act filings. The statements in this release speak only as of the date hereof, and the Company undertakes no duty to update such statements to reflect future events or developments.


Company Contact:				Investor Representative

American Vanguard Corporation				the Equity Group Inc.
William A. Kuser, Director of Investor Relations (949) 260-1200				www.theequitygroup.com Lena Cati
williamk@amvac-chemical.com				Lcati@equityny.com

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

ASSETS


	March 31, 2022			December 31, 2021
Current assets:
Cash and cash equivalents	$	17,841		$	16,285
Receivables:
Trade, net of allowance for doubtful accounts of $4,446 and $3,938, respectively		183,505			149,326
Other		11,073			9,595

Total receivables, net		194,578			158,921
Inventories		168,049			154,306
Prepaid expenses		13,644			12,488

Total current assets		394,112			342,000
Property, plant and equipment, net		67,440			66,111
Operating lease right-of-use assets		24,950			25,386
Intangible assets, net of applicable amortization		196,365			197,841
Goodwill		49,077			46,260
Other assets		15,500			16,292
Deferred income tax assets, net		17			270

Total assets	$	747,461		$	694,160

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current installments of other liabilities	$	1,437		$	802
Accounts payable		77,704			67,140
Customer prepayments		18,542			63,064
Accrued program costs		87,962			63,245
Accrued expenses and other payables		23,412			20,745
Income taxes payable		6,050			3,006
Operating lease liabilities, current		5,035			5,059

Total current liabilities		220,142			223,061
Long-term debt, net		98,309			52,240
Operating lease liabilities, long term		20,301			20,780
Other liabilities, net of current installments		6,011			5,335
Deferred income tax liabilities, net		20,075			20,006

Total liabilities		364,838			321,422

Commitments and contingent liabilities
Stockholders’ equity:
Preferred stock, $0.10 par value per share; authorized 400,000 shares; none issued		—			—
Common stock, $0.10 par value per share; authorized 40,000,000 shares; issued 34,091,876 shares at March 31, 2022 and 34,248,218 shares at December 31, 2021		3,410			3,426
Additional paid-in capital		101,291			101,450
Accumulated other comprehensive loss		(6,704	)		(13,784	)
Retained earnings		313,584			304,385
Less treasury stock at cost, 3,693,444 shares at March 31, 2022 and 3,361,040 shares at December 31, 2021		(28,958	)		(22,739	)

Total stockholders’ equity		382,623			372,738

Total liabilities and stockholders’ equity	$	747,461		$	694,160

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)


	For the three months ended March 31
	2022			2021
Net sales	$	149,435		$	116,155
Cost of sales		(88,242	)		(71,024	)

Gross profit		61,193			45,131
Operating expenses		(46,444	)		(41,444	)
Adjustment to bargain purchase gain on business acquisition		—			(33	)

Operating income		14,749			3,654
Change in fair value of an equity investment		83			1,066
Other income		—			672
Interest expense, net		(398	)		(946	)

Income before provision for income taxes and loss on equity method investment		14,434			4,446
Income tax expense		(4,499	)		(1,362	)

Income before loss from equity method investment		9,935			3,084
Loss from equity method investment		—			(13	)

Net income	$	9,935		$	3,071

Earnings per common share—basic	$	0.33		$	0.10

Earnings per common share—assuming dilution	$	0.33		$	0.10

Weighted average shares outstanding—basic		29,677			29,737

Weighted average shares outstanding—assuming dilution		30,349			30,523

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES

ANALYSIS OF SALES

(In thousands)

(Unaudited)


	For the three Months Ended March 31
	2022			2021			Change			% Change
Net sales:
U.S. crop	$	88,193		$	54,755		$	33,438			61	%
U.S. non-crop		13,396			17,453			(4,057	)		-23	%

Total U.S.		101,589			72,208			29,381			41	%
International		47,846			43,947			3,899			9	%

Total net sales:	$	149,435		$	116,155		$	33,280			29	%

Gross profit:
U.S. crop	$	40,345		$	21,271		$	19,074			90	%
U.S. non-crop		5,965			9,383			(3,418	)		-36	%

Total U.S.		46,310			30,654			15,656			51	%
International		14,883			14,477			406			3	%

Total gross profit:	$	61,193		$	45,131		$	16,062			36	%

Gross margin:
U.S. crop		46	%		39	%
U.S. non-crop		45	%		54	%
Total U.S.		46	%		42	%
International		31	%		33	%
Gross margin:		41	%		39	%

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	For the three months ended March 31
	2022			2021
Cash flows from operating activities:
Net income	$	9,935		$	3,071
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization of fixed and intangible assets		5,230			5,403
Amortization of other long-term assets		1,173			1,200
Loss on disposal of property, plant and equipment		77			—
Accretion of discounted liabilities and deferred loan fees		75			99
Provision for bad debts		494			682
Loan principal and interest forgiveness		—			(672	)
Fair value adjustment of contingent consideration		599			—
Stock-based compensation		1,563			1,792
Decrease in deferred income taxes		207			(269	)
Change in fair value of an equity investment		(83	)		(1,066	)
Other		—			46
Net foreign currency adjustment		(261	)		194
Changes in assets and liabilities associated with operations:
Increase in net receivables		(33,660	)		(30,482	)
Increase in inventories		(11,738	)		(9,615	)
Increase in prepaid expenses and other assets		(800	)		(1,052	)
Decrease in income tax receivable/payable, net		3,046			638
Decrease in net operating lease liability		(67	)		(18	)
Increase in accounts payable		9,677			2,223
Decrease in customer prepayments		(44,528	)		(11,293	)
Increase in accrued program costs		24,601			7,770
Increase (decrease) in other payables and accrued expenses		2,145			(1,187	)

Net cash used in operating activities		(32,315	)		(32,536	)

Cash flows from investing activities:
Capital expenditures		(3,294	)		(2,904	)
Proceeds from disposal of property, plant and equipment		54			—
Intangible assets		(1,010	)		(41	)

Net cash used in investing activities		(4,250	)		(2,945	)

Cash flows from financing activities:
Net borrowings under line of credit agreement		46,000			35,900
Net receipt from the issuance of common stock under ESPP		436			340
Net receipt from the exercise of stock options		—			67
Payment for tax withholding on stock-based compensation awards		(2,174	)		(2,861	)
Repurchase of common stock		(6,219	)		—
Payment of cash dividends		(594	)		(592	)

Net cash provided by financing activities		37,449			32,854

Net increase (decrease) in cash and cash equivalents		884			(2,627	)
Effect of exchange rate changes on cash and cash equivalents		672			469
Cash and cash equivalents at beginning of period		16,285			15,923

Cash and cash equivalents at end of period	$	17,841		$	13,765

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF NET INCOME TO EBITDA

For the three months March 31, 2022 and 2021

(Unaudited)


Unaudited Reconciliation of Net Income to EBITDA (in thousands of dollars)	March 31, 2022		March 31, 2021
Net income, as reported	$	9,935	$	3,071
Provision for income taxes		4,499		1,362
Interest expense, net		398		946
Depreciation and amortization		6,472		6,684
Stock compensation		1,563		1,792

Adjusted EBITDA²	$	22,867	$	13,855

Earnings before interest, taxes, depreciation, amortization and non-cash stock compensation. Adjusted EBITDA is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income (loss), operating income (loss) or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. We provide these measures because we believe that they provide helpful comparisons to other companies in our industry and peer group. The items excluded from Adjusted EBITDA are detailed in the reconciliation attached to this news release. Other companies (including the Company’s competitors) may define EBITDA differently.