AVD American Vanguard Corporation

2017 Product and Business Acquisitions Drive Growth

American Vanguard Corporation (NYSE:AVD), today announced financial results for the second quarter and 6-month period that ended June 30, 2018.

Financial Highlights: 2018 Second Quarter – versus 2017 Second Quarter

• Net sales of $107.0 million in 2018, compared with $77.9 million in 2017
• Net income of $5.6 million in 2018, compared with $4.3 million in 2017
• EBITDA1 of $14.0 million in 2018, compared to $11.9 million in 2017
• Earnings per diluted share of $0.19 in 2018, compared with $0.15 in 2017

Financial Highlights: First 6-Months of 2018 – versus First 6-Months of 2017

• Net sales of $211.2 million in 2018, compared to $148.6 million in 2017
• Net income of $10.3 million in 2018, compared to $7.8 million in 2017
• EBITDA1 of $27.3 million in 2018, compared to $22.4 million in 2017
• Earnings per diluted share of $0.34 in 2018, compared to $0.26 in 2017

Eric Wintemute, Chairman and CEO of American Vanguard commented, “Our overall financial performance for this year’s second quarter and first half improved at both the top and bottom lines. Quarterly net sales rose 37%, and first-half net sales rose 42% due, in both periods, to the addition of new product lines from acquisitions that we completed in 2017. Net sales of pre-existing product lines were mixed during both periods. For example, while we recorded stronger sales from soil fumigants, bromacil (for high value fruits), Folex (for cotton), Impact herbicide (for corn) and Dacthal herbicide (for fruits and vegetables), we saw decreases in net sales of Bidrin (in light of high channel inventory and reduced pest pressure), Aztec® corn soil insecticide and Thimet (in light of reduced peanut acres).”

Mr. Wintemute continued, “Our manufacturing performance during the quarter was one of the best in recent history with factory activity fully absorbing manufacturing costs and yielding a net benefit during the period. We achieved a gross margin percentage of 40% in both the second quarter and first half of 2018, due to higher volume sales of lower margin, newly-acquired products. Further, while our operating expenses rose on an absolute basis, they declined as a percentage of net sales, due in part to improved economies of scale across our businesses and in part to a G&A benefit from our quarterly revaluation of acquisition liabilities. Throughout the course of 2018, we have continued to integrate newly-acquired businesses, launch new products, maintain the regulatory defense of important products, and advance the development of our SIMPAS precision application technology. With modest interest expense and a reduced tax rate, our net income increased by 30% for the quarter and 32% for the first half. Also EBITDA2 increased during the quarter and half-year by 17% and 22%, respectively.”

Mr. Wintemute concluded, “During the balance of 2018, we anticipate strong performance from a number of key components of our business, including seasonally higher sales of soil fumigants and our cotton defoliant Folex. Also, our Central American region and non-crop business are both primed to deliver improved sales in next two quarters. Further, we anticipate continued demand for our products in fruit and vegetables, strong sales of our Dibrom® mosquito adulticide and stable demand for our corn products leading into the 2019 spring planting season. Taken together, these factors should enable us to generate annual net sales within the range of $450 - $470 million for 2018 with little or no change in gross margin. We will provide additional detail on our financial performance and business prospects during the earnings call.”

Conference Call

Eric Wintemute, Chairman & CEO, Bob Trogele EVP & COO and David T. Johnson, VP & CFO, will conduct a conference call focusing on the financial results at 4:30 pm ET / 1:30 pm PT on Monday, August 6, 2018. Interested parties may participate in the call by dialing (201) 493-6744 – please dial in 10 minutes before the call is scheduled to begin, and ask for the American Vanguard call. The conference call will also be webcast live via the News and Media section of the Company’s web site at www.american-vanguard.com. To listen to the live webcast, go to the web site at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, the conference call will be archived on the Company’s web site.

About American Vanguard

American Vanguard Corporation is a diversified specialty and agricultural products company that develops and markets products for crop protection and management, turf and ornamentals management and public and animal health. American Vanguard is included on the Russell 2000® and Russell 3000® Indexes and the Standard & Poor’s Small Cap 600 Index. To learn more about American Vanguard, please reference the Company’s web site at www.american-vanguard.com.

The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking statements 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. All forward-looking statements, if any, in this release represent the Company’s judgment as of the date of this release.

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1   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. 2 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.     AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) ASSETS    

June 30,2018

Dec. 31,2017

Current assets: Cash and cash equivalents $ 7,099 $ 11,337 Receivables: Trade, net of allowance for doubtful accounts of $259 and $46, respectively 94,933 102,534 Other   12,011   7,071 Total receivables, net 106,944 109,605 Inventories 163,180 123,124 Prepaid expenses   11,290   10,817 Total current assets 288,513 254,883 Property, plant and equipment, net 48,399 49,321 Intangible assets, net of applicable amortization 177,512 180,950 Goodwill 21,837 22,184 Other assets   25,753   28,254 Total assets $ 562,014 $ 535,592   LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current installments of other liabilities $ 3,534 $ 5,395 Accounts payable 64,842 53,748 Deferred revenue 7,320 14,574 Accrued Program costs 54,093 39,054 Accrued expenses and other payables 9,786 12,061 Income taxes payable   1,085   1,370 Total current liabilities 140,660 126,202 Long-term debt, net of deferred loan fees 74,258 77,486 Other liabilities, excluding current installments 9,641 10,306 Deferred income tax liabilities   17,224   16,284 Total liabilities   241,783   230,278 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

32,743,504 shares at June 30, 2018 and 32,241,866 shares at December 31, 2017

3,275 3,225 Additional paid-in capital 79,721 75,658 Accumulated other comprehensive loss (4,733 ) (4,507 ) Retained earnings   250,068   238,953 328,331 313,329

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

  (8,269 )   (8,269 ) American Vanguard Corporation stockholders’ equity 320,062 305,060 Non-controlling interest   169   254 Total stockholders’ equity   320,231   305,314 Total liabilities and stockholders' equity $ 562,014 $ 535,592     AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)    

For the Three MonthsEnded June 30,

For the Six MonthsEnded June 30,

2018     2017 2018     2017 Net sales $ 107,046 $ 77,905 $ 211,154 $ 148,578 Cost of sales   63,749   43,570   126,806   84,159 Gross profit 43,297 34,335 84,348 64,419 Operating expenses   34,718   27,654   68,418   52,605 Operating income 8,579 6,681 15,930 11,814 Interest expense, net   966   400   1,803   698

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

7,613 6,281 14,127 11,116 Income tax expense   1,748   1,681   3,440   3,061 Income before loss on equity method investments 5,865 4,600 10,687 8,055 Loss from equity method investments   301   69   518   111 Net income 5,564 4,531 10,169 7,944 Net loss (income) attributable to non-controlling interest   35   (227 )   85   (188 ) Net income attributable to American Vanguard $ 5,599 $ 4,304 $ 10,254 $ 7,756 Earnings per common share—basic $ .19 $ .15 $ .35 $ .27 Earnings per common share—assuming dilution $ .19 $ .15 $ .34 $ .26 Weighted average shares outstanding—basic   29,330   29,050   29,309   28,999 Weighted average shares outstanding—assuming dilution   30,190   29,605   30,113   29,561     ANALYSIS OF SALES For the three and six months ended June 30, 2018 and 2017 (In thousands) (Unaudited)      

Three Months EndedJune 30,

Six Months EndedJune 30,

2018     2017 2018     2017 Net sales: Crop: Insecticides $ 32,665 $ 39,442 $ 73,958 $ 77,384 Herbicides/soil fumigants/fungicides 31,401 16,045 63,586 36,066 Other, including plant growth regulators   30,377   10,096   48,217   13,488 Total crop: 94,443 65,583 185,761 126,938 Non-crop   12,603   12,322   25,393   21,640 Total net sales: $ 107,046 $ 77,905 $ 211,154 $ 148,578 Net sales: US $ 64,363 $ 55,760 $ 134,178 $ 108,004 International   42,683   22,145   76,976   40,574 Total net sales: $ 107,046 $ 77,905 $ 211,154 $ 148,578     AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)   For the Six Months Ended June 30, 2018   2017 Cash flows from operating activities: Net income $ 10,169 $ 7,944

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

Depreciation and amortization of fixed and intangible assets 9,516 8,094 Amortization of other long term assets 2,313 2,777 Amortization of discounted liabilities 202 13 Stock-based compensation 2,778 2,322 Change in deferred income taxes (26 ) 7 Loss from equity method investments 518 111 Changes in assets and liabilities associated with operations: Decrease in net receivables 5,478 20,749 Increase in inventories (40,194 ) (5,506 ) Increase in prepaid expenses and other assets (707 ) (2,658 ) (Increase) in income tax receivable/payable, net (271 ) (12,752 ) Increase in accounts payable 11,309 579 Decrease in deferred revenue (7,254 ) (2,126 ) Increase in accrued Program costs 15,039 18,819 Decrease in other payables and accrued expenses   (5,151 )   (4,256 ) Net cash provided by operating activities   3,719   34,117 Cash flows from investing activities: Capital expenditures (3,230 ) (4,155 ) Investment — (950 ) Acquisition of other intangible assets and businesses   (1,631 )   (13,400 ) Net cash used in investing activities   (4,861 )   (18,505 ) Cash flows from financing activities: Payments under line of credit agreement (62,125 ) (59,025 ) Borrowings under line of credit agreement 58,800 45,000 Payments on other long-term liabilities — (26 )

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

1,335 (1,214 ) Payment of cash dividends   (1,024 )   (724 ) Net cash used by financing activities   (3,014 )   (15,989 ) Net decrease in cash and cash equivalents (4,156 ) (377 ) Effect of exchange rate changes on cash and cash equivalents (82 ) 105 Cash and cash equivalents at beginning of period   11,337   7,869 Cash and cash equivalents at end of period $ 7,099 $ 7,597     Unaudited Reconciliation of Net Income to EBITDA For the three and six months ended June 30, 2018 and June 30, 2017 (Unaudited)      

For the Three MonthsEnded June 30,

For the Six MonthsEnded June 30,

2018     2017 2018     2017 Net income attributable to American Vanguard, as reported $ 5,599 $ 4,304 $ 10,254 $ 7,756 Provision for income taxes 1,748 1,681 3,440 3,061 Interest expense, net 966 400 1,803 698 Depreciation and amortization   5,683   5,509   11,829   10,871

EBITDA3

$ 13,996 $ 11,894 $ 27,326 $ 22,386

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3   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.

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American Vanguard CorporationWilliam A. Kuser, Director of Investor Relations(949) 260-1200williamk@amvac-chemical.comorInvestor RepresentativeThe Equity Group Inc.www.theequitygroup.comLena Cati (212) 836-9611Lcati@equityny.com