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1ST HALF: AMERICAN VANGUARD'S NET SALES DOWN 6%, NET INCOME DOWN 37%
Source: American Vanguard news release

Newport Beach, CA - American Vanguard Corporation (NYSE:AVD), today announced financial results for the quarter and half-year ended June 30, 2020.

Financial Highlights Fiscal 2020 Second Quarter - versus Fiscal 2019 Second Quarter

Net sales of $105 million in 2020, compared with $113 million in 2019

Net income of $3.9 million in 2020, compared with $3.1 million in 2019

Earnings per diluted share of $0.13 in 2020, compared with $0.11 in 2019

EBITDA of $12.7 million in 2020, compared with $11.9 million in 2019

Financial Highlights Fiscal 2020 Six Months - versus Fiscal 2019 Six Months

Net sales of $201 million in 2020, compared with $213 million in 2019

Net income of $4.4 million in 2020, compared with $7 million in 2019

Earnings per diluted share of $0.15 in 2020, compared with $0.24 in 2019

EBITDA of $20.3 million in 2020, compared with $24.5 million in 2019

Eric Wintemute, Chairman and CEO of American Vanguard commented, "During the quarter we recorded improved profitability on lower sales, in spite of pandemic-related effects on new product launches and reduced demand for crop commodities used by restaurants. In the face of market uncertainty, our team responded by maintaining operations without disruption, generating a profitable sales mix, improving manufacturing efficiency and reducing operating expenses in a disciplined fashion. Consequently, we have been able to generate a quarterly improvement in net income, earnings per share and EBITDA. In addition, we recorded lower working capital, improved net cash from operations by $32 million and thereby reduced debt, as compared to the same period in 2019."

Mr. Wintemute continued, "In light of second quarter profitability and improvement of our balance sheet, I am encouraged by the direction of our financial performance during this unusual time. However, the year got off to a slow start. Thus, our first half results trailed those of the prior year with net sales down approximately 6% and higher operating expenses as a percent of net sales, due largely to a credit taken for deferred purchase price consideration in 2019. Gross margin remained flat at 39%, while factory performance was improved during the first half of 2020 versus that of 2019."

Mr. Wintemute continued, "We are well-positioned to address our markets over the balance of 2020 and remain poised to perform in line with our peers. Factors that could materially affect our performance include our mosquito control business, which should benefit from forecasted hurricane activity expected to impact the South and Southeastern United States this summer, the strength of our soil fumigants, improved supply of Krovar and Hyvar herbicides, and growth of our corn and soybean franchises.

"At the same time, we will continue to pursue our key strategic initiatives for future growth, including the development and launch of new product formulations, further successful collaboration with respect to Proctor & Gamble's Zevo product line, and the expanded full commercial launch of our SIMPAS precision application system later this year. We look forward to providing investors with additional information during our earnings conference call."


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