American Vanguard Corp
Annual Report 2012

Plain-text annual report

O U R f U t U R e i s b R i g h t american vanguard 2012 annual report CROP PROteCt iON = Dear Shareholders, I am proud to report that American Vanguard experienced record-setting performance in 2012. As the financial table below illustrates, we are exceeding our growth targets and our prospects for the future are indeed bright. As the cover of this booklet suggests, the resurgent demand for our corn products is driving this exceptional performance. Sales of AMVAC’s soil insecticides escalated more than 50% in 2012 with granular products for corn leading the way. Sales of SmartBox® closed delivery systems nearly doubled in 2012, as growers chose the safety, efficiency, and technical superiority of our equipment. In the future, these systems may provide delivery of multi-functional treatments that protect seed germination, defend root development, and enrich season-long crop growth. Combining proven products with advanced application methodology makes AMVAC a clear leader, as corn growers increasingly integrate both genetic and chemical defenses to provide superior crop protection by embracing AMVAC’s Yield Enhancement Solutions — YES®. As we proceed in 2013, we expect to achieve additional growth in many areas. These include: a much greater supply of our Impact® post-emergent herbicide to co-market with Monsanto’s Roundup® glyphosate brands; significant additional demand for our granular soil insecticides and SmartBox systems; commercialization of SmartBlock®, our potato sprout inhibitor; and continuing international expansion as our experienced management team in the Netherlands builds on the $70 million business that we achieved in 2012. Our new Envance Technologies® business, which develops, manufactures and markets pest control products derived from natural oils, will expand the distribution of its Terminix® Ultimate Protection product line through multiple, large-scale retailers in the United States. Additionally, our equity investment in TyraTech, Inc. could benefit from the commercialization of several natural products that function as insect repellents or infestation treatments. We hope you have benefited from the more than doubling of AVD’s stock price in 2012 and our exceptional 20% increase in stockholders’ equity. We have been rewarded for significant revenue growth, high levels of profitability, and an extremely strong balance sheet. We will continue our successful business model of acquiring and licensing branded specialty products, developing new patented offerings, and maintaining financial discipline, as we assemble a world-class and worldwide organization. American Vanguard is well-positioned to achieve sustainable growth and increased enterprise value. Our future is bright! Eric G. Wintemute Chairman, Chief Executive Officer HISTORICAL FINANCIAL PERFORMANCE (dollars in thousands except earnings and dividend information) Net sales Gross profit Operating income Net income Earnings per share Total assets 2012 2011 2010 $ 366,190 $ 301,080 $ 226,859 $ 161,125 $ 123,068 $ 86,321 $ 59,323 $ 39,226 $ 19,191 $ 36,867 $ 22,068 $ 10,984 Visit us at www.amvac-chemical.com $ 1.28 $ 0.79 $ 0.40 or scan this QR code for instant access. $ 399,890 $ 342,558 $ 280,179 Long-term debt less current portion $ 36,196 $ 51,917 $ 53,710 Stockholders’ equity Dividends per share $ 225,436 $ 187,072 $ 166,437 $ 0.22 $ 0.08 $ 0.03 = YieLD eNhANCeMeNt SMARTBOX® SYSTEM YES applies to everything American Vanguard offers. From the products we sell, to the services, resources and profitability that the AMVAC team delivers to our customers, business partners, and stakeholders.YES means maximizing Yield in operational output and financial returns, Enhancing customer performance and productivity, and providing comprehensive Solutions to challenging problems.YES is more than a philosophy — it is a commitment! We are dedicated to responsible, sustainable operating practices, product safety, environmental stewardship, and serving the global community with our contributions to feeding a hungry world and safeguarding public health.AMVAC’s proprietary SmartBox® equipment is our state-of-the-art system for dispensing granular crop protection products. Factory-sealed recyclable product containers minimize human exposure and packaging disposal issues. Advanced metering controls facilitate precise product deployment. An embedded monitoring system records application rates and provides a comprehensive mapping of planting inputs. Such data record-keeping is an essential part of an evolving “prescription farming” science that seeks to continually improve agricultural yields. This system’s safety, efficiency, and information technology make it the clear industry leader.OFFICERS American Vanguard Corporation Eric G. Wintemute Chief Executive Officer David T. Johnson Vice President Chief Financial Officer Treasurer Timothy J. Donnelly Chief Administrative Officer General Counsel Secretary DIRECTORS Eric G. Wintemute Chairman Elected in 1994 Carl R. Soderlind Elected in 2000 Irving J. Thau Elected in 2003 Lawrence S. Clark Elected in 2006 John L. Killmer Elected in 2008 Alfred F. Ingulli Elected in 2010 Esmail Zirakparvar Elected in 2010 Debra Edwards Elected in 2011 Jerome L. Coben Appointed in 2012 AMVAC Chemical Corporation Glen D. Johnson Senior Vice President Director of Business Development & Marketing Cindy Baker-Smith Senior Vice President Director of Global Regulatory Affairs & Product Development Jim Lehman Vice President Director of Sales John Rizzi Vice President Director of Manufacturing Johann Venter Vice President Director of Technology gemChem, inc. Robert F. Gilbane President AMVAC Netherlands bV Ad de Jong Managing Director Officers and Board members of American Vanguard celebrate the seventh anniversary of listing on the New York Stock Exchange by ringing the opening bell on March 7, 2013. CORPORATE INFORMATION executive Offices American Vanguard Corporation 4695 MacArthur Court Suite 1200 Newport Beach, California 92660 (949) 260-1200 investor Relations William A. Kuser Director of Investor Relations and Corporate Communications (949) 260-1200 independent Auditors BDO USA, LLP Los Angeles, California Operating subsidiaries AMVAC Chemical Corporation 4100 East Washington Boulevard Los Angeles, California 90023 (323) 264-3910 GemChem, Inc. 95 River Road, Suite B Canton, Connecticut 06019 (860) 693-1331 AMVAC Netherlands B.V. Kokermolen 5 3994DG Houten The Netherlands Office phone: +31(0) 85 273 1600 AMVAC do Brasil Representações Ltda AMVAC de Costa Rica S.A. Quimica AMVAC de Mexico S.A. de C.V. AMVAC Switzerland GmbH Proudly Made in the UsA AMVAC Chemical United Kingdom Ltd. Annual Meeting The Annual Meeting of American Vanguard Corporation’s stockholders will be held at the Hyatt Regency, Long Beach located at 200 South Pine Avenue, Long Beach California 90802 on Wednesday, June 5, 2013 starting at 11:00 a.m. Stockholders of record at the close of business April 16, 2013 are entitled to notice of, and to vote at, the Annual Meeting. Stockholders who plan to attend the Annual Meeting are encouraged to RSVP using the contact information shown on the front page of the proxy statement. form 10-K Additional copies are available to stockholders, without cost, upon written request to the Chief Financial Officer of the Company at 4695 MacArthur Court, Suite 1200, Newport Beach, California 92660. American Vanguard believes in contributing to a sustainable planet. This annual report is printed on recycled paper from responsibly managed sources. ©2013 American Vanguard Corporation 

Continue reading text version or see original annual report in PDF format above