NYSE$AVD

American Vanguard Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

American Vanguard's Q1 2022 earnings were released, revealing a significant increase in net sales and net income compared to Q1 2021.

American Vanguard reported a strong start to 2022, with net sales up 29% and net income up 224% compared to the first quarter of 2021. The company's performance was driven by higher commodity prices, increased demand for crop protection solutions, and a focus on profitability through pricing actions and expense management.

  • Net sales increased by 29% to $149.4 million compared to $116.2 million in Q1 2021.
  • Net income increased by 224% to $9.9 million compared to $3.1 million in Q1 2021.
  • Earnings per diluted share were $0.33, up from $0.10 in the same period last year.
  • The company's gross profit margin was 41%, driven by pricing actions to offset inflationary cost escalations.

Headline financials

Total Revenue

$149M

Previous: $116M+28.7%
EPS (adj)

$0.33

Previous: $0.10+230.0%
Gross Margin

41.0%

No prior period
Adjusted EBITDA

$22.9M

Previous: $12.1M+89.6%
Capital Expenditures

-$3.29M

Previous: -$2.9M-13.4%
Free Cash Flow

$6.64M

Previous: $167K+3876.6%
Net Income

$9.94M

Previous: $3.07M+223.5%
Operating Income

$14.7M

Previous: $3.65M+303.6%
Gross Profit

$61.2M

Previous: $45.1M+35.6%
Cash & Equivalents

$17.8M

Previous: $13.8M+29.6%
Total Assets

$747M

Previous: $710M+5.3%
Stock-Based Comp

$1.56M

Previous: $1.79M-12.8%

Revenue & EPS history

American Vanguard · Revenue · Quarterly

$149M

Q1 2022+28.7%vs Q1 2021
Beat estimate in 5 of 13 quarters(38%)
ActualEstimate

Revenue by segment

American Vanguard · $149M total across 3 segments · Q1 2022

  • U.S. Crop
    $88.2M
  • International
    $47.8M+8.9%
  • U.S. Non-Crop
    $13.4M

Forward guidance

American Vanguard anticipates continued growth in both domestic and international markets, targeting 8-11% revenue growth, 38-40% profit margins, and operating expenses between 31-33% of net sales for 2022. The company will focus on developing its Green Solutions and SIMPAS/Ultimus technologies.

Tailwinds

  • Targeting 8-11% revenue growth.
  • Expecting profit margins of 38-40%.
  • Focusing on developing Green Solutions.
  • Focusing on developing SIMPAS/Ultimus technologies.
  • Situated well in both domestic and international markets.

Headwinds

  • Potential impact from the COVID-19 pandemic and government responses.
  • Increasing costs and management attention due to a pending activism campaign.
  • Effects of international exchange rates and economic conditions.
  • Weather and climate conditions impacting performance.
  • Changes in regulatory policies and specific regulations affecting products.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-1.0%

Avg return

Earnings day

-3.0%

Avg return

5 days after

-2.6%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+18.9%

Q4 2015

Best reaction

-34.9%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%-1.0%-9.8%
Q4 2025-9.6%-30.9%-24.6%
Q3 2025-0.8%-0.4%-14.9%
Q1 2025-9.2%-8.5%-19.2%
Q4 2024-5.7%+6.2%-20.0%
Q3 2024+2.1%+5.0%-5.7%
Q2 2024-34.9%-28.5%-20.5%
Q1 2024-26.6%-30.6%-30.4%
Q4 2023+15.3%+9.4%+4.5%
Q3 2023+1.1%-12.3%+5.1%
Q2 2023-16.6%-13.1%-24.7%
Q1 2023-12.9%-9.9%-3.1%
Q4 2022+4.9%+5.5%+7.8%
Q3 2022-4.4%-6.6%-4.8%
Q2 2022-18.2%-15.5%-19.8%
Q1 2022+5.6%-4.5%+17.9%
Q4 2021+2.6%+6.5%+24.0%
Q3 2021+4.3%+3.0%-9.2%
Q2 2021-0.7%-6.6%-3.5%
Q1 2021-3.3%-5.8%-14.6%
Q4 2020+2.1%-2.0%-8.6%
Q3 2020+9.2%+8.3%+21.8%
Q2 2020+4.6%+3.0%+1.0%
Q1 2020-1.9%-9.6%-3.1%
Q4 2019-4.6%-9.3%+2.3%
Q3 2019+5.0%+6.4%+8.4%
Q2 2019+5.4%+3.0%+13.8%
Q1 2019-0.3%-8.3%-19.6%
Q4 2018+6.2%-1.1%-2.1%
Q3 2018-5.6%-1.9%-7.5%
Q2 2018-4.2%-9.3%-4.0%
Q1 2018+11.7%+0.9%+10.5%
Q4 2017+16.0%+15.5%+9.8%
Q3 2017-6.1%-10.1%-10.8%
Q2 2017+9.7%+13.1%+10.0%
Q1 2017+10.9%+9.1%+9.4%
Q4 2016-4.0%-6.2%+4.7%
Q3 2016+0.3%+3.3%+14.3%
Q2 2016+17.6%+16.2%+12.2%
Q1 2016-21.8%
Q4 2015+18.9%
Q3 2015+14.0%
Q2 2015+0.8%
Q1 2015+14.6%
Q4 2014-1.7%
Q3 2014+6.4%
Q2 2014+2.6%
Q1 2014-13.1%
Q4 2013-4.3%
Q3 2013+8.9%
Q2 2013+3.3%
Q1 2013+7.7%
Q4 2009+0.2%
Q4 2012-11.0%
Q3 2012+1.7%
Q2 2012+12.5%
Q1 2012+4.1%
Q4 2011+2.0%
Q3 2010-6.8%
Q3 2011-6.8%
Q2 2010-15.6%
Q1 2011-15.6%
Q2 2011-15.6%
Q4 2010-15.6%
Q1 2010+4.5%

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