FOR IMMEDIATE RELEASE
AMERICAN VANGUARD REPORTS FOURTH QUARTER & FULL YEAR 2010 RESULTS
Newport Beach, CA – March 8, 2011 – American Vanguard Corporation (NYSE:AVD), today announced financial results for the fourth quarter and full year ended December 31, 2010.
Fiscal 2010 Fourth Quarter Financial Highlights – versus Fiscal 2009 Fourth Quarter:
- Net sales were $62.5 million compared to $50.8 million.
- Net income (loss) was $4.0 million compared to ($8.6)* million.
- Earnings (loss) per diluted share were $0.14 versus ($0.32)*.
Fiscal 2010 Financial Highlights – versus Fiscal 2009 Results:
- Net sales were $229.6 compared to $209.3 million.
- Net income (loss) was $11.0 compared to ($5.8) million*.
- Earnings (loss) per diluted share were $0.40 versus ($0.21)*.
* Net Income and Earnings per share results for the Fourth Quarter and Full Year 2009 reflect the inclusion of a one-time, non-cash charge of $13.5 million taken to adjust the inventories of American Vanguard at December 31, 2009.
Eric Wintemute, President and CEO of American Vanguard, stated: “Our 2010 performance reflects a number of improving trends in our business. After coping with the very conservative purchasing patterns of growers and distributors during 2009, we have seen demand for our products improve steadily throughout 2010. Replenishment of depleted channel inventories, expansion of cotton acreage in the U.S., and an increase in our sales & marketing effectiveness has fueled growth in most of our major product categories.
“Compared to the prior year period, sales grew 23% in the fourth quarter and 10% for the full year. Gross profit margins for the year improved to 39% as we focused our sales initiatives on a higher margin product mix and adjusted our manufacturing operations to respond more efficiently to changes in customer demand. We achieved improved overall financial performance despite lost sales and profit opportunities in our PCNB product line attributable to a stop-sale order. On this subject, as you will read in our 10-K filing, the Company continues to work with the EPA to resolve this matter.”
Mr. Wintemute continued: “During the year we pursued the acquisition of several prominent branded products that have excellent market positions, solid profit margins and were available at terms that met our investment criteria. Our purchase of the cotton defoliant Def®, the insecticides Mocap®, Nemacur®, Aztec® (U.S. bag business) and the soil fumigant Basamid® represents the largest series of product acquisitions in our history. These new product lines should serve to double our international business, improve our factory utilization over the next three years, and contribute positively to our financial profitability. Integration of these new products has begun and will be one of the most important objectives of 2011.
“In 2011 we see many encouraging prospects. The rising level of cotton and corn commodity prices should encourage growers to expand acreage and purchase inputs that enhance yields, which favors American Vanguard’s strong market positions in those two crops. The increasing demand for residential & commercial pest protection from numerous insects, particularly the expanding bed-bug epidemic, has stimulated strong interest in our unique Nuvan® product line. Our intensified efforts to develop and introduce new products should begin to bear fruit later this year with the expected registration and commercial introduction of our SmartBlock® potato sprout inhibitor.”
Mr. Wintemute concluded: “American Vanguard is well positioned to benefit from improving market conditions for crop protection and pest control solutions. Our organization is evolving to take full advantage of these opportunities with the hiring of talented new employees who possess the set of skills that the Company needs to succeed. Management remains committed to the financial discipline and debt reduction that has strengthened our balance sheet and we will prudently utilize our recently secured five-year credit facility to facilitate steady, sustainable growth.”
Eric Wintemute, President & 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 Tuesday, March 8, 2011. Interested parties may participate in the call by dialing (201) 689-8349 – 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.
American Vanguard Corporation
William A. Kuser, Director of Investor Relations
The Equity Group Inc.
www.theequitygroup.com <http://www.theequitygroup.com />
Linda Latman (212) 836-9609