American Vanguard Corp. (NYSE:AVD) Q3 2019 Earnings Conference Call - Final Transcript
Nov 05, 2019 • 04:30 pm ET
Greetings, and welcome to the American Vanguard Third Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Bill Kuser, Director of Investor Relations. Please go ahead, sir.
William A. Kuser
Well, thank you very much, Hector, and welcome, everyone to American Vanguard's third quarter and nine-month earnings review. Our speakers today will be Mr. Eric Wintemute, the Chairman and CEO of American Vanguard; and Mr. David Johnson, the Company's Chief Financial Officer. Also to assist in answering your questions, Mr. Bob Trogele, the Company's Chief Operating Officer.
Tomorrow, American Vanguard will file our Form 10-Q with the SEC, providing additional details to the results that we will be discussing in this call.
Before beginning, let's take a moment for our usual cautionary reminder. In today's call, the Company may discuss forward-looking information. Such information and statements are based on estimates and assumptions by the Company's management and are subject to various risks and uncertainties that may cause actual results to differ from management's current expectations. Such factors include weather conditions, changes in regulatory policy, competitive pressures and various other risks that are detailed in the Company's SEC reports and filings. All forward-looking statements represent the Company's best judgment as of the date of this call, and such information will not necessarily be updated by the Company.
With that said, we turn the call over to Eric Wintemute.
Eric G. Wintemute
Thank you, Bill. Good afternoon, everyone. Let me start by thanking you for your continued support of American Vanguard. This afternoon, I will begin my remarks with a recap of top line performance and the underlying market conditions. Then, I would like to spend some time on our balance sheet with a focus on demand inventory and factory activity. I will then turn the call over to David, who will give you a more complete picture of our three- and nine-month performance. After David, I will speak on how we are growing organically through the launch of new combination products, which we call non-acquisition growth. I will then turn to technology development, including our biologic portfolio and SIMPAS. Finally, I will give financial metrics for the full-year of 2019 and a general outlook for 2020.
As I've mentioned in our earnings release today, our quarterly top line performance improved by 12% as compared to the same period in 2018, fueled largely by a 27% increase in international sales and, to a lesser degree, by a 3% increase domestically. At the same time, international sales as a percent of total sales rose to 41% from 36% from the comparable period.
Before getting into specific market conditions, it's worth noting that this international expansion did not happen by accident. As late as 2013, international sales accounted for less than 20% of our total sales. Since that time, we have more than doubled that ratio even while growing the overall business. We achieved this result because we have operated this business with