Jun 30, 2020

American Vanguard Q2 2020 Earnings Report

American Vanguard reported improved profitability despite lower sales, influenced by pandemic-related effects, while also improving net income, earnings per share, and EBITDA.

Key Takeaways

American Vanguard reported Q2 2020 financial results with net sales of $105 million, net income of $3.9 million, and earnings per diluted share of $0.13. The company improved profitability despite lower sales, influenced by pandemic-related effects. They also improved net cash from operations by $32 million and thereby reduced debt, as compared to the same period in 2019.

Net sales decreased to $105 million from $113 million in the same quarter of the previous year.

Net income increased to $3.9 million from $3.1 million in the prior year's quarter.

Earnings per diluted share rose to $0.13, compared to $0.11 in the second quarter of 2019.

EBITDA increased to $12.7 million from $11.9 million in the prior year's quarter.

Total Revenue
$105M
Previous year: $113M
-7.6%
EPS
$0.13
Previous year: $0.11
+18.2%
EBITDA
$12.7M
Previous year: $11.9M
+6.4%
Gross Margin
39%
Gross Profit
$40.3M
Previous year: $41.7M
-3.2%
Cash and Equivalents
$8.6M
Previous year: $6.31M
+36.4%
Total Assets
$661M
Previous year: $666M
-0.7%

American Vanguard

American Vanguard

American Vanguard Revenue by Segment

American Vanguard Revenue by Geographic Location

Forward Guidance

American Vanguard is well-positioned to address its markets over the balance of 2020 and remains poised to perform in line with its peers.

Positive Outlook

  • Mosquito control business should benefit from forecasted hurricane activity.
  • Strength of soil fumigants.
  • Improved supply of Krovar® and Hyvar® herbicides.
  • Growth of corn and soybean franchises.
  • Development and launch of new product formulations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income