<PAGE> 1
EXHIBIT 99.3
FOR IMMEDIATE RELEASE
AMERICAN VANGUARD THIRD QUARTER EPS UP 52% ON 25% SALES
INCREASE;
NINE-MONTH EPS $.66 VS. $.28
BOARD AUTHORIZES REPURCHASE OF UP TO 11% OF OUTSTANDING SHARES
Newport Beach, CA -- November 2, 2000 -- American Vanguard Corporation
(AMEX:AVD) today reported financial results for the three and nine-month periods
ended September 30, 2000.
For the third quarter, net sales increased 25% to $21,421,800 compared to the
same quarter last year due to overall business growth as well as preliminary
sales in the Dacthal(R) herbicide business acquired from ZenecA during this
year's second quarter. Despite the slight decrease in gross profit margin to
41.4% from 43.0% due to product mix, operating income rose 39% to $2,079,200.
Net income for the quarter reached $1,017,100 or $.38 per diluted share,
reflecting a 52% improvement in net income per share over the third quarter of
1999.
For the nine-month period, net sales rose 13% to $51,011,400 compared to the
first nine months of 1999. Gross profit margin increased to 45.4% from 43.9% due
to the product mix for the period. Operating income grew 68% to $4,237,000,
while net income rose dramatically to $1,784,000 or $.66 per diluted share,
reflecting a 131% increase in net income per share.
Eric Wintemute, President and CEO of American Vanguard, commented, "The third
quarter was an important one for the Company. We re-launched Dacthal into its
key worldwide markets and recorded initial sales, earlier than originally
anticipated. We also acquired the exclusive U.S. marketing rights to the
Aztec(R) 4.67% GranulaR corn soil insecticide business from Bayer, which
complements our acquisition of the Fortress(R) business announced in January of
this year. Aztec is expected to increase sales beginning late in the 2000 fourth
quarter. Additionally, we resumed the distribution of a semi-annual dividend to
shareholders, which reflects our confidence in American Vanguard's prospects."
Mr. Wintemute continued, "We also signed a letter of intent to acquire a DuPont
manufacturing facility, which will significantly expand the production capacity
of the Company. In 2001, we will see a full-year impact from the product lines
acquired this past year, and we intend to pursue the opportunities to acquire
additional product lines resulting from the unprecedented consolidation of the
multi-national companies that has occurred over the past 12 months."
In light of the Company's performance and prospects, the Board of Directors has
authorized the repurchase of up to 11% (300,000) of American Vanguard's
outstanding shares of common stock. The shares may be purchased from time to
time in open market transactions, depending on price, availability and the
Company's cash position. There were approximately 2.7 million shares of American
Vanguard common stock outstanding as of November 2, 2000.
Commenting on the repurchase plan, Mr. Wintemute stated, "We feel that the
market has not reflected the fair value of our Company, given that our stock has
been trading below its book value and at less than five times trailing
twelve-month earnings. Even though we continue to be in a strong growth mode, we
believe the opportunity to acquire our stock at these levels is a wise use of
Company funds."
For the trailing 12 months, American Vanguard's EBITDA has increased 27% to
$4.36 per share, and net income per share has grown 48% to $1.58, based current
outstanding shares.
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<PAGE> 2
American Vanguard Corporation News Release Page 2
November 2, 2000
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net sales $21,421,800 $17,119,800 $51,011,400 $44,966,100
Cost of sales 12,552,100 9,764,100 27,852,700 25,225,400
----------- ----------- ----------- -----------
Gross profit 8,869,700 7,355,700 23,158,700 19,740,700
Operating expenses 6,790,400 5,706,600 18,921,700 17,062,400
Settlement expense -- 153,000 -- 153,000
----------- ----------- ----------- -----------
Operating income 2,079,300 1,496,100 4,237,000 2,525,300
Interest expense - net 384,100 396,800 1,263,700 1,274,600
----------- ----------- ----------- -----------
Income before income taxes 1,695,200 1,099,300 2,973,300 1,250,700
Income tax expense 678,100 420,200 1,189,300 477,700
----------- ----------- ----------- -----------
Net income $1, 017,100 $ 679,100 $ 1,784,000 $ 773,000
=========== =========== =========== ===========
Basic and diluted
net income per share(1) $ .38 $ .25 $ .66 $ .28
=========== =========== =========== ===========
Weighted Average Number of Shares(1) 2,692,939 2,722,370 2,697,355 2,730,734
=========== =========== =========== ===========
</TABLE>
(1) Retroactively restated to reflect a 10% common stock dividend distributed on
April 14, 2000 to common stockholders of record as of March 31, 2000.
American Vanguard Corporation is a diversified specialty and agricultural
products company. Its subsidiaries include AMVAC Chemical Corporation, which
develops and markets safe and effective products for agricultural and commercial
uses; GemChem, Inc., a national chemical distributor; AMVAC Chemical UK Ltd.,
the Company's UK office; Quimica Amvac De Mexico S.A. de C.V., the Company's
Mexico office; and Environmental Mediation, Inc., an environmental consulting
firm.
The Company, from time to time, may discuss forward-looking information. Except
for the historical information contained in this release, all forward- looking
information are estimates by the Company's management and are subject to various
risks and uncertainties that may cause results to differ from management's
current expectations. Such factors include weather conditions, changes in
regulatory policy, and other risks as detailed from time to time in the
Company's SEC reports and filings. Forward-looking statements in this release
represent the Company's judgment as of the date of this release. The Company
disclaims, however, any intent or obligation to update forward-looking
statements.
CONTACT: -OR- AVD'S INVESTOR RELATIONS FIRM
AMERICAN VANGUARD CORPORATION THE EQUITY GROUP INC.
Eric G. Wintemute, President & CEO www.theequitygroup.com
James A. Barry, Senior Vice President & CFO Loren Mortman
(949) 260-1200 [email protected]
AMVAC Chemical Corporation (212) 836-9604
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