American Vanguard reports fourth quarter and full year 2019 results

Date:03-12-2020

American Vanguard Corporation (NYSE: AVD) on Monday announced financial results for the fourth quarter and full year ended December 31, 2019.

Fiscal 2019 Fourth Quarter Financial Highlights – versus Fiscal 2018 Fourth Quarter:
• Net sales of $131 million in 2019, as compared to $131 million in 2018
• Net income of $3.4 million in 2019, as compared to $7.4 million in 2018
• Earnings per diluted share of $0.12 in 2019, as compared to $0.25 in 2018
• EBITDA of $12.0 million in 2019, as compared to $16.6 million in 2018

Fiscal 2019 Full Year Financial Highlights – versus Fiscal 2018 Full Year:
• Net sales of $468 million in 2019, as compared to $454 million in 2018
• Net income of $13.6 million in 2019, as compared to $24.2 million in 2018
• Earnings per diluted share of $0.46 in 2019, as compared to $0.81 in 2018
• EBITDA1 of $48.9 million in 2019, as compared to $61.1 million in 2018

Eric Wintemute, Chairman and CEO of American Vanguard, stated, “Our 2019 financial performance closely corresponds to the guidance that we provided during the fourth quarter and updated in January. In the face of adverse weather, tariffs and supply disruptions that affected the entire industry, we achieved mixed results, with a modestly higher top line and declining profitability as compared to 2018. As has been the case for the past several quarters, revenue growth was driven by our international business, which now constitutes nearly 40% of our consolidated revenue. This growth was partially offset by weather-related declines in our domestic sales.”

Mr. Wintemute continued, “Our gross profit margin came in where predicted, while both operating expenses and overall corporate tax rate were more favorable than had been anticipated. However, higher volume sales of lower-margin products in our international businesses, higher interest costs from acquisition-related borrowing and reduced factory activity led to reduced net income for the year.”

Mr. Wintemute concluded, “With respect to our 2020 outlook, assuming a return to more normal weather patterns and minimal disruption in trade and supply from COVID-19 or other factors, we are targeting our global revenues to grow at a low double-digit rate, aided by larger corn acreage in the U.S., renewed availability of bromacil herbicides, ten new product introductions, and the growth of our LATAM businesses. At the same time, we will continue to exercise financial discipline in order to strengthen our balance sheet. We look forward toward giving you a more detailed presentation on 2020 during our upcoming earnings call.”