American Vanguard Corp 8-K, filed May 12, 2020

About this 8-K

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American Vanguard Corp (AVD)

8-K 2020-05-12 For: 2020-05-11

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Added on April 06, 2026

American Vanguard Corp filed this 8-K on May 12, 2020, reporting on events of May 11, 2020.

AMERICAN VANGUARD CORPORATION

Date: May 12, 2020

/s/ Timothy J. Donnelly

Timothy J. Donnelly

Chief Administrative Officer, General Counsel & Secretary

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Title of each class	Trading Symbol	Exchanges on which registered
Common Stock, $.10 par value	AVD	New York Stock Exchange


Company Contact:		Investor Representative
American Vanguard Corporation		The Equity Group Inc.
William A. Kuser, Director of Investor Relations		www.theequitygroup.com
(949) 260-1200		Lena Cati
williamk@amvac-chemical.com		Lcati@equityny.com


	March 31, 2020			December 31, 2019
Current assets:
Cash and cash equivalents	$	5,544		$	6,581
Receivables:
Trade, net of allowance for doubtful accounts of $2,606 and $2,297, respectively		141,509			136,075
Other		13,134			16,949

Total receivables, net		154,643			153,024
Inventories		175,861			163,313
Prepaid expenses		11,149			10,457
Income taxes receivable		3,406			2,824

Total current assets		350,603			336,199
Property, plant and equipment, net		57,599			56,521
Operating lease right-of-use assets		10,731			11,258
Intangible assets, net of applicable amortization		193,823			198,377
Goodwill		41,974			46,557
Other assets		19,511			21,186

Total assets	$	674,241		$	670,098


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current installments of other liabilities	$	227		$	1,513
Accounts payable		64,333			64,881
Deferred revenue		4,448			6,826
Accrued program costs		53,696			47,699
Accrued expenses and other payables		11,720			12,815
Operating lease liabilities, current		4,883			4,904

Total current liabilities		139,307			138,638
Long-term debt, net		168,225			148,766
Operating lease liabilities, long term		5,996			6,503
Other liabilities, excluding current installments		10,963			12,890
Deferred income tax liabilities		15,543			19,145

Total liabilities		340,034			325,942

Commitments and contingent liabilities
Stockholders’ equity:
Preferred stock, $.10 par value per share; authorized 400,000 shares; none issued		—			—
Common stock, $.10 par value per share; authorized 40,000,000 shares; issued 33,188,421 shares at March 31, 2020 and 33,233,614 shares at December 31, 2019		3,319			3,324
Additional paid-in capital		89,757			90,572
Accumulated other comprehensive loss		(14,761	)		(5,698	)
Retained earnings		274,052			274,118
Less treasury stock at cost, 3,061,040 shares at March 31, 2020 and December 31, 2019		(18,160	)		(18,160	)

Total stockholders’ equity		334,207			344,156

Total liabilities and stockholders’ equity	$	674,241		$	670,098


	For the three months ended March 31
	2020			2019
Net sales	$	95,962		$	99,676
Cost of sales		57,581			57,974

Gross profit		38,381			41,702
Operating expenses		36,545			34,800

Operating income		1,836			6,902
Interest expense, net		1,508			1,612

Income before provision for income taxes (benefit) and loss on equity method investment		328			5,290
Income tax (benefit) expense		(205	)		1,360

Income before loss on equity method investment		533			3,930
Loss from equity method investment		13			24

Net income	$	520		$	3,906

Earnings per common share—basic	$	0.02		$	0.13

Earnings per common share—assuming dilution	$	0.02		$	0.13

Weighted average shares outstanding—basic		29,288			28,977

Weighted average shares outstanding—assuming dilution		29,948			29,579


Exhibit 99.1		Press release dated May 11, 2020 of Registrant regarding financial results for the three months ended March 31, 2020.


	For the three Months Ended March 31
	2020			2019			Change			% Change
Net sales:
US crop	$	50,362		$	50,270		$	92			0	%
US non-crop		10,993			11,267			(274	)		-2	%

Total US		61,355			61,537			(182	)		0	%
International		34,607			38,139			(3,532	)		-9	%

Total net sales:	$	95,962		$	99,676		$	(3,714	)		-4	%

Gross profit:
US crop	$	24,245		$	23,822		$	423			2	%
US non-crop		4,719			5,846			(1,127	)		-19	%

Total US		28,964			29,668			(704	)		-2	%
International		9,417			12,034			(2,617	)		-22	%

Total gross profit:	$	38,381		$	41,702		$	(3,321	)		-8	%

Gross margin:
US crop		48	%		47	%
US non-crop		43	%		52	%
Total US		47	%		48	%
International		27	%		32	%
Gross margin:		40	%		42	%


	March 31, 2020			March 31, 2019
Net income, as reported	$	520		$	3,906
Provision for income taxes (benefit)		(205	)		1,360
Interest expense, net		1,508			1,612
Depreciation and amortization		5,788			5,691

EBITDA²	$	7,611		$	12,569


	For the three months ended March 31
	2020			2019
Cash flows from operating activities:
Net income	$	520		$	3,906
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization of fixed and intangible assets		4,762			4,609
Amortization of other long-term assets and debt issuance costs		1,026			1,082
Amortization of discounted liabilities		4			—
Provision for bad debts		359			1,034
Revision of deferred compensation		—			(1,543	)
Stock-based compensation		1,357			1,485
Decrease in deferred income taxes		(910	)		(742	)
Loss from equity method investment		13			24
Net foreign currency adjustment		823			172
Changes in assets and liabilities associated with operations:
Decrease (increase) in net receivables		(5,472	)		6,812
Increase in inventories		(16,446	)		(23,763	)
Increase in prepaid expenses and other assets		(776	)		(2,724	)
Decrease (increase) in income tax receivable/payable, net		(597	)		750
(Decrease) increase in accounts payable		(189	)		4,788
Decrease in deferred revenue		(2,342	)		(16,036	)
Increase in accrued program costs		6,016			2,391
Decrease in other payables and accrued expenses		(2,094	)		(2,508	)

Net cash used in by operating activities		(13,946	)		(20,263	)

Cash flows from investing activities:
Capital expenditures		(2,980	)		(3,369	)
Acquisitions of businesses, product lines and intangible assets		—			(24,246	)

Net cash used in investing activities		(2,980	)		(27,615	)

Cash flows from financing activities:
Net borrowings under line of credit agreement		19,400			52,600
Net payments from the issuance of common stock (sale of stock under ESPP, exercise of stock options, and shares purchased for tax withholdings)		(2,177	)		(550	)
Repurchase of common stock		—			(2,604	)
Payment of cash dividends		(582	)		(581	)

Net cash provided by financing activities		16,641			48,865