Net sales of $112 million in 2018, compared to $90 million in 2017

Net income of $6.5 million in 2018, compared to $4.1 million in 2017

EBITDA¹ of $17 million in 2018, compared to $12 million in 2017

Earnings per diluted share of $0.22 in 2018, compared to $0.14 in 2017

Net sales of $323 million in 2018, compared to $239 million in 2017

Net income of $16.7 million in 2018, compared to $11.8 million in 2017

EBITDA of $45 million in 2018, compared to $34 million in 2017

Earnings per diluted share of $0.56 in 2018, compared to $0.40 in 2017

Earnings before interest, taxes, depreciation and amortization. EBITDA is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income (loss), operating income (loss) or any other financial measure so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The items excluded from EBITDA are detailed in the reconciliation attached to this news release. Other companies (including the Company’s competitors) may define EBITDA differently.

The Company believes that the use of EBITDA is useful to investors in that it is one of the primary bases upon which borrowing capacity is calculated under the Company’s senior credit facility, it gives investors a sense of the Company’s financial conditions and results of operation without giving effect to the cost of increased acquisition activity in 2017 and it is commonly used by investors and others as a basis for supporting overall business valuations. Nevertheless, investors should not consider EBITDA in isolation or a substitute for analysis of the Company’s results as reported in accordance with GAAP.

Company Contact:

Current assets:

Cash and cash equivalents

Receivables:

Trade, net of allowance for doubtful accounts of $587 and $46, respectively

Other

Total receivables, net

Inventories, net

Prepaid expenses

Total current assets

Property, plant and equipment, net

Intangible assets, net of applicable amortization

Goodwill

Other assets

Total assets

Current liabilities:

Current installments of other liabilities

Accounts payable

Deferred revenue

Accrued program costs

Accrued expenses and other payables

Income taxes payable

Total current liabilities

Long-term debt, net of deferred loan fees

Other liabilities, excluding current installments

Deferred income tax liabilities

Total liabilities

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 32,757,098 shares at September 30, 2018 and 32,241,866 shares at December 31, 2017

Additional paid-in capital

Accumulated other comprehensive loss

Retained earnings

Less treasury stock at cost, 2,450,634 shares at September 30, 2018 and December 31, 2017

American Vanguard Corporation stockholders’ equity

Non-controlling interest

Total stockholders’ equity

Total liabilities and stockholders’ equity

Net sales

Cost of sales

Gross profit

Operating expenses

Operating income

Interest expense, net

Income before provision for income taxes and loss on equity method investments

Income tax expense

Income before loss on equity method investments

Loss from equity method investments

Net income

Net (loss) income attributable to non-controlling interest

Net income attributable to American Vanguard

Earnings per common share—basic

Earnings per common share—assuming dilution

Weighted average shares outstanding—basic

Weighted average shares outstanding—assuming dilution

Net sales:

Insecticides

Herbicides/soil fumigants/fungicides

Other, including plant growth regulators

Total crop:

Non-crop

Total net sales:

Net sales:

US

International

Total net sales:

Cash flows from operating activities:

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization of fixed and intangible assets

Amortization of other long term assets

Amortization of discounted liabilities

Stock-based compensation

(Decrease) increase in deferred income taxes

Loss from equity method investments

Changes in assets and liabilities associated with operations:

Increase in net receivables

Increase in inventories

Increase in prepaid expenses and other assets

Increase (decrease) in income tax receivable/payable, net

Increase in accounts payable

Decrease in deferred revenue

Increase in accrued program costs

Decrease in other payables and accrued expenses

Net cash (used) provided by operating activities

Cash flows from investing activities:

Capital expenditures

Investments

Acquisition of product lines and other intangible assets

Net cash used in investing activities

Cash flows from financing activities:

Payments under line of credit agreement

Borrowings under line of credit agreement

Payments on other long-term liabilities

Net payments from the issuance of common stock (sale of stock under ESPP, exercise of stock options, and shares purchased for tax withholding)

Payment of cash dividends

Net cash provided by financing activities

Net (decrease) increase in cash and cash equivalents

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Net income attributable to American Vanguard, as reported

Provision for income taxes

Interest expense, net

Depreciation and amortization

EBITDA³

Earnings before interest, taxes, depreciation and amortization. EBITDA is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income (loss), operating income (loss) or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The items excluded from EBITDA are detailed in the reconciliation attached to this news release. Other companies (including the Company’s competitors) may define EBITDA differently.