American Vanguard Corporation (NYSE:AVD) today announced financial
results for the fourth quarter and full year ended December 31, 2015.
Fiscal 2015 Fourth Quarter Financial Highlights – versus Fiscal 2014
Fourth Quarter:
-
Net sales were $84.0 million in Q4 2015 compared to $77.6 million in
Q4 2014.
-
Net income was $3.0 million in Q4 2015 compared to $1.8 million in Q4
2014.
-
Earnings per diluted share were $0.10 in Q4 2015 versus $0.06 in Q4
2014.
Fiscal 2015 Financial Highlights – versus Fiscal 2014:
-
Net sales were $289.4 million in FY 2015 compared to $298.6 million in
FY 2014.
-
Net income was $6.6 million in FY 2015 compared to $4.8 million in FY
2014.
-
Earnings per diluted share were $0.23 in FY 2015 versus $0.17 in FY
2014.
Eric Wintemute, Chairman and CEO of American Vanguard, stated: “Our
performance in 2015 reflects continued financial discipline in the face
of difficult industry conditions. Low crop commodity prices have led to
reduced farmer/grower profitability and cautious purchasing of all crop
inputs, including crop protection products. Despite these market
conditions, during 2015, American Vanguard recorded net sales only
slightly below those of the prior year, maintained a steady level of
business in many markets and generated improved profitability overall.”
Mr. Wintemute continued: “Our efforts to control working capital, manage
manufacturing costs and reduce operating expenses have led to greater
operating efficiency. As a result, we have experienced significant
inventory reductions, improved cash generation and have reduced our
debt, even while completing two acquisitions that should serve to
strengthen our international business.”
Mr. Wintemute concluded: “While the Ag market prospects for 2016 remain
challenging, American Vanguard is well-positioned, in a consolidating
industry, to pursue its three main objectives: improving market access
through additional product acquisitions and collaborative alliances;
advancing technological innovation; and driving operational excellence.
We believe that these will be the keys to our success and look forward
to keeping our investors well informed as we progress in 2016.”
Conference Call
Eric Wintemute, Chairman & CEO, Bob Trogele, EVP & COO and David T.
Johnson, VP & CFO, will conduct a conference call focusing on the
financial results at 4:30 pm ET / 1:30 pm PT on Tuesday, March 1, 2016.
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.
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Years ended December 31, 2015, 2014 and 2013
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
|
Net sales
|
|
|
|
$
|
289,382
|
|
|
$
|
298,634
|
|
|
$
|
381,021
|
|
|
Cost of sales
|
|
|
|
|
177,480
|
|
|
|
184,138
|
|
|
|
209,674
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
111,902
|
|
|
|
114,496
|
|
|
|
171,347
|
|
|
Operating expenses
|
|
|
|
|
100,378
|
|
|
|
107,786
|
|
|
|
115,612
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
11,524
|
|
|
|
6,710
|
|
|
|
55,735
|
|
|
Interest expense, net
|
|
|
|
|
2,772
|
|
|
|
3,153
|
|
|
|
2,175
|
|
|
Interest capitalized
|
|
|
|
|
(210
|
)
|
|
|
(87
|
)
|
|
|
(274
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision for income taxes and loss on equity
investment
|
|
|
|
|
8,962
|
|
|
|
3,644
|
|
|
|
53,834
|
|
|
Income taxes expense (benefit)
|
|
|
|
|
2,009
|
|
|
|
(451
|
)
|
|
|
18,916
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before loss on equity investment
|
|
|
|
|
6,953
|
|
|
|
4,095
|
|
|
|
34,918
|
|
|
Less net loss from equity method investment
|
|
|
|
|
(636
|
)
|
|
|
(29
|
)
|
|
|
(986
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
6,317
|
|
|
|
4,066
|
|
|
|
33,932
|
|
|
Add back net loss attributable to non-controlling interest
|
|
|
|
|
274
|
|
|
|
775
|
|
|
|
517
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to American Vanguard
|
|
|
|
$
|
6,591
|
|
|
$
|
4,841
|
|
|
$
|
34,449
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of interest rate swaps
|
|
|
|
|
—
|
|
|
|
340
|
|
|
|
388
|
|
|
Foreign currency translation adjustment
|
|
|
|
|
(1,571
|
)
|
|
|
(1,262
|
)
|
|
|
326
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
|
|
$
|
5,020
|
|
|
$
|
3,919
|
|
|
$
|
35,163
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share—basic
|
|
|
|
$
|
.23
|
|
|
$
|
.17
|
|
|
$
|
1.22
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share—assuming dilution
|
|
|
|
$
|
.23
|
|
|
$
|
.17
|
|
|
$
|
1.19
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding—basic
|
|
|
|
|
28,673
|
|
|
|
28,436
|
|
|
|
28,301
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding—assuming dilution
|
|
|
|
|
29,237
|
|
|
|
28,912
|
|
|
|
28,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
December 31, 2015 and 2014
(In thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
5,524
|
|
|
$
|
4,885
|
|
|
Receivables:
|
|
|
|
|
|
|
|
Trade, net of allowance for doubtful accounts of $423 and $166,
respectively
|
|
|
|
|
72,835
|
|
|
|
86,027
|
|
|
Other
|
|
|
|
|
2,554
|
|
|
|
2,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75,389
|
|
|
|
88,423
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
|
|
136,477
|
|
|
|
165,631
|
|
|
Prepaid expenses
|
|
|
|
|
11,172
|
|
|
|
13,415
|
|
|
Income taxes receivable
|
|
|
|
|
168
|
|
|
|
5,964
|
|
|
Deferred income tax assets
|
|
|
|
|
8,101
|
|
|
|
8,731
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
236,831
|
|
|
|
287,049
|
|
|
Property, plant and equipment, net
|
|
|
|
|
47,972
|
|
|
|
50,026
|
|
|
Intangible assets, net of applicable amortization
|
|
|
|
|
129,160
|
|
|
|
100,211
|
|
|
Other assets
|
|
|
|
|
29,576
|
|
|
|
35,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
443,539
|
|
|
$
|
472,321
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Current installments of other notes payable
|
|
|
|
$
|
55
|
|
|
$
|
71
|
|
|
Current installments of other liabilities
|
|
|
|
|
514
|
|
|
|
1,357
|
|
|
Accounts payable
|
|
|
|
|
15,343
|
|
|
|
20,411
|
|
|
Deferred revenue
|
|
|
|
|
8,888
|
|
|
|
898
|
|
|
Accrued program costs
|
|
|
|
|
44,371
|
|
|
|
52,546
|
|
|
Accrued expenses and other payables
|
|
|
|
|
7,111
|
|
|
|
5,962
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
76,282
|
|
|
|
81,245
|
|
|
Long-term debt and other notes payable, excluding current
installments
|
|
|
|
|
68,321
|
|
|
|
98,605
|
|
|
Other liabilities, excluding current installments
|
|
|
|
|
3,054
|
|
|
|
3,309
|
|
|
Deferred income tax liabilities
|
|
|
|
|
27,556
|
|
|
|
28,159
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
175,213
|
|
|
|
211,318
|
|
|
|
|
|
|
|
|
|
|
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 31,638,225 shares in 2015 and 31,550,477 shares in
2014
|
|
|
|
|
3,164
|
|
|
|
3,156
|
|
|
Additional paid-in capital
|
|
|
|
|
68,534
|
|
|
|
66,232
|
|
|
Accumulated other comprehensive loss
|
|
|
|
|
(3,541
|
)
|
|
|
(1,970
|
)
|
|
Retained earnings
|
|
|
|
|
208,507
|
|
|
|
202,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
276,664
|
|
|
|
269,906
|
|
|
Less treasury stock at cost, 2,450,634 shares in 2015 and in 2014
|
|
|
|
|
(8,269
|
)
|
|
|
(8,269
|
)
|
|
|
|
|
|
|
|
|
|
American Vanguard Corporation stockholders’ equity
|
|
|
|
|
268,395
|
|
|
|
261,637
|
|
|
Non-controlling interest
|
|
|
|
|
(69
|
)
|
|
|
(634
|
)
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity
|
|
|
|
|
268,326
|
|
|
|
261,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
443,539
|
|
|
$
|
472,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31, 2015, 2014 and 2013
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
|
Increase cash
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
6,317
|
|
|
$
|
4,066
|
|
|
$
|
33,932
|
|
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of fixed and intangible assets
|
|
|
|
|
16,474
|
|
|
|
16,332
|
|
|
|
14,845
|
|
|
Amortization of other long term assets
|
|
|
|
|
5,275
|
|
|
|
5,811
|
|
|
|
4,598
|
|
|
Amortization of discounted liabilities
|
|
|
|
|
140
|
|
|
|
324
|
|
|
|
174
|
|
|
Stock-based compensation
|
|
|
|
|
3,881
|
|
|
|
4,153
|
|
|
|
3,819
|
|
|
Tax effect from the share based compensation
|
|
|
|
|
(23
|
)
|
|
|
(300
|
)
|
|
|
(440
|
)
|
|
Increase in deferred income taxes
|
|
|
|
|
27
|
|
|
|
2,619
|
|
|
|
2,523
|
|
|
Operating loss from equity method investment
|
|
|
|
|
629
|
|
|
|
983
|
|
|
|
986
|
|
|
Loss (gain) from dilution of equity method investment
|
|
|
|
|
7
|
|
|
|
(954
|
)
|
|
|
—
|
|
|
Changes in assets and liabilities associated with operations:
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in net receivables
|
|
|
|
|
13,034
|
|
|
|
(13,471
|
)
|
|
|
2,351
|
|
|
Decrease (increase) in inventories
|
|
|
|
|
29,154
|
|
|
|
(25,801
|
)
|
|
|
(51,879
|
)
|
|
Decrease (increase) in income tax receivable/payable, net
|
|
|
|
|
4,872
|
|
|
|
4,424
|
|
|
|
(10,961
|
)
|
|
Decrease (increase) in prepaid expenses and other assets
|
|
|
|
|
2,082
|
|
|
|
(4,743
|
)
|
|
|
(19,733
|
)
|
|
(Decrease) increase in accounts payable
|
|
|
|
|
(5,068
|
)
|
|
|
(19,951
|
)
|
|
|
8,252
|
|
|
Increase (decrease) in deferred revenue
|
|
|
|
|
7,990
|
|
|
|
(2,890
|
)
|
|
|
(16,639
|
)
|
|
(Decrease) increase in other payables, accrued program costs and
expenses
|
|
|
|
|
(6,223
|
)
|
|
|
(4,697
|
)
|
|
|
21,958
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
|
|
78,568
|
|
|
|
(34,095
|
)
|
|
|
(6,214
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(6,899
|
)
|
|
|
(7,180
|
)
|
|
|
(15,260
|
)
|
|
Investment
|
|
|
|
|
(125
|
)
|
|
|
(500
|
)
|
|
|
(3,687
|
)
|
|
Acquisitions of intangible assets
|
|
|
|
|
(36,667
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
(43,691
|
)
|
|
|
(7,680
|
)
|
|
|
(18,947
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Net (payments) borrowings under line of credit agreement
|
|
|
|
|
(30,520
|
)
|
|
|
47,850
|
|
|
|
51,550
|
|
|
Payments on long-term debt
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(46,000
|
)
|
|
Payment on other long-term liabilities
|
|
|
|
|
(1,543
|
)
|
|
|
(1,756
|
)
|
|
|
(1,831
|
)
|
|
Tax effect from the share based compensation
|
|
|
|
|
23
|
|
|
|
300
|
|
|
|
440
|
|
|
Decrease in other notes payable
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6,154
|
)
|
|
Repurchases of common stock
|
|
|
|
|
—
|
|
|
|
(1,531
|
)
|
|
|
(1,934
|
)
|
|
Proceeds from the issuance of common stock (sale of stock under ESPP
and exercise of stock options)
|
|
|
|
|
317
|
|
|
|
1,666
|
|
|
|
1,610
|
|
|
Non-controlling interest contribution
|
|
|
|
|
—
|
|
|
|
299
|
|
|
|
—
|
|
|
Payment of cash dividends
|
|
|
|
|
(1,141
|
)
|
|
|
(5,672
|
)
|
|
|
(4,804
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by financing activities
|
|
|
|
|
(32,864
|
)
|
|
|
41,156
|
|
|
|
(7,123
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
|
2,013
|
|
|
|
(619
|
)
|
|
|
(32,284
|
)
|
|
Effect of exchange rate changes on cash
|
|
|
|
|
(1,374
|
)
|
|
|
(1,176
|
)
|
|
|
488
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
|
|
4,885
|
|
|
|
6,680
|
|
|
|
38,476
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year
|
|
|
|
$
|
5,524
|
|
|
$
|
4,885
|
|
|
$
|
6,680
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
|
|
|
|
Cash paid (received) during the year for:
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
$
|
2,750
|
|
|
$
|
2,298
|
|
|
$
|
1,777
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
$
|
(3,697
|
)
|
|
$
|
(8,206
|
)
|
|
$
|
25,271
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160301006948/en/
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