American Vanguard Corporation · NYSE:AVD
American Vanguard — Q1 2022 Earnings Presentation
28 slides from American Vanguard's earnings presentation, May 4, 2022
Slide 1: Q1 2022 Earnings Presentation
Q1 2022 Earnings Presentation May 4, 2022 ® 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: Pending Proxy Solicitation
Pending Proxy Solicitation Certain Information Regarding Participants to Our Pending Proxy Solicitation Part of the information set forth in this presentation refers to our Annual Meeting of Shareholders, which is scheduled to occur on June 1, 2022, using a virtual meeting facility. The Company and
Slide 4: Agenda
Agenda Opening RemarksEric Wintemute Chairman and CEO Financial ReviewDavid Johnson - CFO Strategic Growth Initiatives Eric Wintemute Core Business Programs Green Solutions Expansion SIMPAS/Ultimus Commercialization Concluding RemarksEric Wintemute
Slide 5: 2022 Performance Targets
2022 Performance Targets Net Income . . .. . . . . . . . 60 - 70% Increase Revenue Growth . . . . . . . . 8% - 11% Gross Profit Margin . . . . . . 38-40% Operating Expenses . . . . . . OPEX as % of Sales (31-33%) Interest Expense . . . . . . . . . Similar to 2021 Tax Rate . . . . . . . . . .. . . .
Slide 6: AMVAC Supply Chain Response
Add New Sources for Critical Raw Materials Place Orders Well in Advance Forecast COG’s on Rolling 12 Month Period Constant Communication with Global Marketing to Maintain Gross Margins Weekly (or more) Meetings with Our 6 North American Factories to Maximize Production and Meet Growing Demands AMVAC
Slide 7: Financial Review
Financial AMERICAN Review CORNERISAN,
Slide 8: Q1 2022 Sales
Q1 2022 Sales Overall sales Q1 2022 $149m vs $116m in 2021 (up 29%) International 32% of total in 2022 vs 38% of total in 2021 $ 000’s US Crop up 61% US Non-crop down 23% International up 9%
Slide 9: Q1 2022 Gross Profit Performance
Q1 2022 Gross Profit Performance ($000’s)
Slide 10: Q1 2022 Operating Expenses
Q1 2022 Operating Expenses $46,444 $41,444 $ 000’s Operating expenses are 31% of sales in 2022 vs 36% in 2021
Slide 11: Q1 2022 Statements of Operations
Q1 2022 Statements of Operations $ 000’s
Slide 12: Q1 2022 Cash Generation and Uses
Q1 2022 Cash Generation and Uses $ 000’s
Slide 13: Inventory as a Percentage of Sales
Inventory as a Percentage of Sales Percentage
Slide 14: Debt & Borrowing Capacity
Debt & Borrowing Capacity $ Millions 168 143 98 $70 Million Reduction since Q1 2020
Slide 15: Overall Financial Performance of Operations
Overall Financial Performance of Operations Overall, the first quarter of 2022 represented a very strong start to what is shaping up to be an exciting year for the Company. Sales and gross margins are up. Operating Expenses reduced as compared to sales, Operating Income and net income both increased
Slide 16: Green Solutions Business Update Q1 2022
Product revenues up 42% vs. Q1 2021 Strong performance by several groups – LATAM, China, Mexico, Brazil, India, Australia US business very strong year over year with 143% growth over Q1 2021 Full Year budget of $52M on track (30% over 2021) Q1 2022 Gross Margins at 42% Includes distribution products
Slide 17: American Vanguard
AMERICAN
Slide 18: SIMPAS – Highlights
SIMPAS – Highlights 2022 Commercial SIMPAS Technology Sales On target to achieve 70 system sales to growers Sales outpaced supply for 2022 2023 SIMPAS Technology Outlook Our target of 125 systems are on track Commercial Agreements for 2022 Verdisian – MycroSync® IronClad, IDC Azotic – Envita® (Plant
Slide 19: U.S. Ag Update
U.S. Ag Update Farm Net Income $110 now $120 Billion Rain Delays Good for MidWest Inputs YTD Corn 14% planted vs 42% in 2021 More Cotton and Soybeans in South Corn 89-90 Million Acres Soybean 91-92 Million Acres Cotton 9.5-10 Million Acres Harvested MAX YIELD KEY Farmers are investing in at plant in
Slide 20: Strategic Growth Targets
Strategic Growth Targets $ Millions $947 $695 $805 Performance EBITDA Target 2025 $155 Million
Slide 21: Concluding Remarks
Y4@ AMERICAN VANGUARD Concluding Remarks
Slide 22: Total Shareholder Return Since May 2015
Total Shareholder Return Since May 2015 (i.e. last 7 years) AVD has delivered strong returns relative to the market… Note: Market date as of 5/3/2022; TSR from 5/3/2015 – 5/3/2022 Source: Market data
Slide 23: AVD has expanded the top-line and out-grown the industry
Despite the down-turn post-2013, AVD has meaningfully expanded the top-line and out-grown the industry Net Revenue Performance Since 2012A Source: Market data, AgBioInvestor 2012A – 2021A net revenue CAGR: 4.8% Management net revenue growth guidance: 8-11% Global crop protection industry has only gr
Slide 24: TEV / NTM EBITDA Since May 2015
TEV / NTM EBITDA Since May 2015 (i.e. last 7 years) Sizeable and persistent valuation premium to other agrochemical producers L7Y L5Y LTM American Vanguard 10.5x 10.5x 10.1x Off-patent agrochemicals 9.4x 9.4x 9.1x Note: Market date as of 5/3/2022; TEV / NTM EBITDA 5/3/2015 – 5/3/2022; Off-patent agr
Slide 25: Consistent dividend payments
Consistent dividend payments AVD Quarterly Dividend History Since 2016 Note: Market date as of 5/3/2022; AVD began paying a regular quarterly dividend in June of 2016 Source: Market data Suspended dividend to preserve liquidity during uncertainty cause by COVID-19 pandemic
Slide 26: Existing Board embodies all of the key competencies
Existing Board embodies all of the key competencies to lead AVD forward Board of Directors Essential Competencies Diversity Sustainable Agriculture Marketing in agricultural space Regulatory expertise Strategy Mergers & Acquisitions Precision application ESG Intellectual Property Supply Chain Manufa
Slide 27: Executive summary
American Vanguard (“AVD”) has delivered strong performance over the long-term Attractive returns over a sustained period TSR +77% vs. Russell 2000 index 68% since May 2015 Clear and persistent valuation premium (>1x EBITDA) to other agrochemical producers Meaningful top-line growth and consistent di
Slide 28: Questions and Answers
® Questions and Answers