American Vanguard Corporation · NYSE:AVD
American Vanguard — Q3 2020 Earnings Presentation
22 slides from American Vanguard's earnings presentation, Nov 9, 2020
Slide 1: Quarterly Earnings Call
Quarterly Earnings Call Exhibit 99.2
Slide 2: Safe Harbor
Safe Harbor 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
Slide 3: Speakers
Speakers Mr. David JohnsonChief Financial Officer Mr. Eric WintemuteChairman & Chief Executive Officer Mr. Bob TrogeleChief Operating Officer
Slide 4: Three-months sales
Three-months sales International 43% of total in 2020, 41% of total in 2019 $ 000’s
Slide 5: Nine-months sales
Nine-months sales International 41% of total in both 2020 and 2019 $ 000’s
Slide 6: Gross Profit Performance
Gross Profit Performance Gross Profit 2020 2019 Change 2020 2019 Change US Crop 20,146 23,710 -15% 68,119 69,059 -1% US Non-crop 8,758 9,860 -11% 18,535 21,444 -14% US 28,904 33,570 -14% 86,654 90,503 -4% International 14,361 13,893 3% 35,298 40,315 -12% Total 43,265 47,463 -9% 121,952 130,818 -7% G
Slide 7: Factory Recovery Performance
Factory Recovery Performance Our Long-term target is to have net factory cost at approximately 2.5% of sales
Slide 8: Operating Expenses
Operating Expenses Operating expenses are 33% of sales in both 2019 and 2020 $40,677 $38,782 $ 000’s
Slide 9: Operating Expenses
Operating Expenses Operating expenses are 33% of sales in 2019 and 34% in 2020 $110,839 $108,882 $ 000’s
Slide 10: Statements of Operations
Statements of Operations 3 months Ended Sept 30, 9 months Ended Sept 30, Statements of Operations 2020 2019 Change 2020 2019 Change Net Sales $117,439 $124,884 ($7,445) $317,956 $337,664 ($19,708) Gross profit 43,265 47,463 (4,198) 121,952 130,818 (8,866) Operating costs (38,782) (40,677) 1,895 (108
Slide 11: Inventory
Inventory *Estimated * $ Millions $186 $163 $176 $162
Slide 12: $ Millions
$ Millions $165 Q2 2019 $165 Q3 2019 $149 Q4 2019 AMERICAN , WANGUARD $169 $159 $149 Q1 2020 Q2 2020 Q3 2020
Slide 13: Overall Financial Performance of Operations
Overall Financial Performance of Operations Overall, during a period of significant disruption and economic uncertainty, we have continued to run a profitable business, generated cash and, during the last quarter, came close to achieving the same level of profitability on lower sales.
Slide 14: Strategic Growth Initiatives
Strategic Growth Initiatives Core Business Current Business New Product Pipeline Additional Product Acquisitions, Licenses, & Geographic Expansion Green Solutions: Protectants & Nutritionals Biorational Offerings AgriCenter & OHP Agrinos BioStimulants (Soil Health/Nutritional Facilitators) Envance E
Slide 15: Core Business
Core Business Fumigants Growth Regulators Insecticides Granular Insecticides Herbicides Fungicides
Slide 16: Core Business Targets
$ Millions Core Business Targets $736
Slide 17: AMERICAN,
AMERICAN, VANGUARD® ca Agrinos Rortners likions ohp: ENVANCE TECHNOLOGIES.
Slide 18: Green Solutions Target
Green Solutions Target $ Millions $140 4
Slide 19: AMERICAN °
77 AMERICAN ° VANGUARD
Slide 20: SIMPAS: Value Capture Target
SIMPAS: Value Capture Target $ Millions 4
Slide 21: Strategic Growth Targets
Strategic Growth Targets $ Millions $985
Slide 22: Questions
77 AMERICAN ° VANGUARD® Questions