Mar. 10, 2022
American Vanguard Corporation (NYSE: AVD) has announced preliminary, unaudited financial results for the fourth quarter and full year ended December 31, 2021.
Fiscal 2021 Fourth Quarter Financial Highlights – versus Fiscal 2020 Fourth Quarter:
Net sales were $159 million in 2021, compared to $141 million in 2020
Operating income was $9.4 million in 2021, compared to $10.1 million in 2020
EBITDA of $14.8 million in 2021, compared to $17.1 million in 2020
Both operating income and EBITDA from 2020 benefited from a one-time gain of $4.6 million due to bargain purchase accounting
Fiscal 2021 Full Year Financial Highlights – versus Fiscal 2020 Full Year:
Net sales were $557 million in 2021, compared to $459 million in 2020
Operating income was $30.9 million in 2021, compared to $22.9 million in 2020
Net income was $18.6 million* in 2021, compared to $15.2 million in 2020
Earnings per diluted share of $0.61* in 2021, compared to $0.51 in 2020
EBITDA of $56.8 million in 2021, compared to $47.5 million in 2020
*Net income and earnings per share for the full year period include the impact of a $3.3 million, one-time, non-cash charge relating to tax reserves (for net operating loss carryforwards) from the Company’s operations in Brazil. These NOLs may be taken as credits in future reporting periods subject to sufficient profitability from those operations.
With respect to the Company’s financial performance, CEO and Chairman, Eric G. Wintemute stated: “2021 proved to be a very successful year for AVD despite continuing challenges posed by COVID-19, supply chain disruptions and inflation. On an annual basis, our net sales increased by 21%, operating income was up about 35%, EBITDA rose 20% and, but for the one-time, non-cash charge (which could potentially be reversed over time), our net income would have risen 44% and generated EPS of $0.72.
“The Company adapted to restrictive public health protocols, varying degrees of customer access limitations, and remote work processes in many operational and administrative functions. Throughout the year, we kept AMVAC manufacturing facilities fully functioning and sustained strong profit margins with price increases to offset inflationary costs. In addition, we strengthened our balance sheet, reduced inventory, increased net cash from operations, reduced debt and improved availability under our credit facility.”
Mr. Wintemute continued: “2021 results were driven by every part of our business. Our U.S. Crop business benefited from economic reopening and high crop commodity prices which resulted in strong demand for our products in corn, soybeans, cotton, potatoes, and many fruits and vegetables. The U.S. Non-Crop business experienced significant demand in mosquito control, commercial pest applications, horticulture/ornamental products and Envance Technologies’ licensing for consumer products. In addition, our International business saw expanded presence in Australia, increased penetration of our biological offerings and solid performance from our Central and South American groups.”
Mr. Wintemute concluded: “Looking forward, we believe that our Company is situated well in both domestic and international markets. We are currently optimistic about the prospects for 8-11% revenue growth in 2022 and are targeting gross profit margins to remain strong (38 to 40% of net sales), net income to increase by 60-70% and operating expenses to be between 31% and 33% of net sales. On a very 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 giving you a more detailed presentation during our upcoming earnings call.”
In addition, the Company announced that its board of directors has approved a program for the repurchase of up to one million shares of common stock within the requirements of Exchange Act Rule 10b-18 over the course of the next year. With respect to the repurchase program, Mr. Wintemute stated, “This authorization reflects the strong confidence that our board places in the company’s long-term success. This program also serves, in part, to offset the expansion of outstanding shares resulting from equity awards that we make to our workforce.”
Read more at https://www.businesswire.com/news/home/20220308006294/en/American-Vanguard-Reports-Fourth-Quarter-Full-Year-2021-Results