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 November 9, 2020 1
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 t
Slide 3: Speakers
Speakers Mr. David Johnson Chief Financial Officer Mr. Eric Wintemute Chairman & Chief Executive Officer Mr. Bob Trogele Chief Operating Officer 3
Slide 4: Three-months sales $000's
® Three-months sales International 43% of total in 2020, 41% of total in 2019 Net Sales, 3 months Ended September 30, 2019 & 2020 60,000 55,072 50,817 50,827 50,000 48,361 40,000 $ 000’s 30,000 18,995 18,251 20,000 10,000 - US Crop US Non-Crop International 2019 2020 4
Slide 5: Nine-months sales $000's
® Nine-months sales International 41% of total in both 2020 and 2019 Net Sales, nine-months Ended September 30, 2019 & 2020 180,000 158,068 160,000 148,630 137,528 140,000 131,445 $ 000’s 120,000 100,000 80,000 60,000 42,068 37,881 40,000 20,000 - US Crop US Non-Crop International 2019 2020 5
Slide 6: Gross Profit Performance
® Gross Profit Performance ($000’s) 3Q 9 Months 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
Slide 7: Factory Recovery Performance
® Factory Recovery Performance 43.4% 42.5% 1.6% 41.5% 41.8% 40.3% 1.5% 40.1% 40.0% 39.2% 39.3% 38.8% 40.0% 2.1% 0.6% 3.5% 38.6% 2.5% 37.5% 38.0% 3.1% 36.8% 36.8% 35.7% 35.0% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Margin % at Standard Margin % Reported Our Long-term target is to have
Slide 8: Operating Expenses $000's (three months)
® Operating expenses are 33% of Operating Expenses sales in both 2019 and 2020 3 months Ended September 30, 2019 and 2020 45000 $40,677 40000 $38,782 35000 30000 $ 000’s 25000 20000 15000 10000 5000 0 2019 2020 Selling G&A R&D Freight 8
Slide 9: Operating Expenses $000's (nine months)
® Operating Expenses Operating expenses are 33% of sales in 2019 and 34% in 2020 9 months Ended September 30, 2019 and 2020 120,000 $110,839 $108,882 100,000 80,000 $ 000’s 60,000 40,000 20,000 - 2019 2020 Sell G&A R&D Freight 9
Slide 10: Statements of Operations
® Statements of Operations $ 000’s 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)
Slide 11: Inventory
® Inventory $186 $190.0 $176 $180.0 $163 $170.0 $ Millions $162 $160.0 $150.0 $140.0 $130.0 Q3 2019 Q4 2019 Q3 2020 Q4 2020* Base inventory Acquistions Products & Companies *Estimated 11
Slide 12: Debt
® Debt $175 $170 $169 $165 $165 $165 $160 $159 $ Millions $155 $150 $149 $149 $145 $140 $135 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 12
Slide 13: Overall Financial Performance
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. 13
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 Facilitator
Slide 15: Core Business
® Core Business Fumigants Granular Growth Insecticides Herbicides Fungicides Insecticides Regulators 15
Slide 16: Core Business Targets
® Core Business Targets $736 100 60 109 37 $ Millions 527 507 468 2023 2025 Current Portfolio New Product Pipeline Acquisitions 16
Slide 17: American Vanguard brands and subsidiaries
AMERICAN , VANGUARD ca Agrinos ens (Ag ter) ohp aa ies ENVANCE TECHNOLOGIES. 2n amencan Vorg.iard Compary 17
Slide 18: Green Solutions Target
® Green Solutions Target 160 $140 140 120 $ Millions 100 80 118 60 48 40 20 22 22 - 2023 2025 Existing Sales Incremental Sales 4 18
Slide 19: American Vanguard
19 AMERICAN ° VANGUARD 19
Slide 20: SIMPAS: Value Capture Target
® SIMPAS: Value Capture Target $140 $131 $120 $100 $80 $ Millions $60 $40 $35 $20 $0 2023 2025 4 20
Slide 21: Strategic Growth Targets
® Strategic Growth Targets $985 $131 $118 $35 $48 $ Millions $736 $604 2020 2021 2022 2023 2024 2025 Core Business Green Initiatives SIMPAS 21
Slide 22: Questions
19 AMERICAN VANGUARD Questions 22