Financial Data and Key Metrics Changes - For Q4 2024, the company reported revenues of approximately $169 million, a decrease of 2% compared to Q4 2023, and adjusted EBITDA of approximately $18 million, down 18% year-over-year [21] - Full year 2024 adjusted revenues were approximately $563 million, a decrease of about 3% from 2023, with adjusted EBITDA at $42 million compared to $53 million in the prior period [22][23] - The adjusted EBITDA margin for 2024 was 7.5%, which management believes is about half of the company's full cycle earnings potential [13] Business Line Data and Key Metrics Changes - The company is focusing on improving its balance sheet, reporting a reduction in inventory by approximately $47 million during Q4, although it slightly missed its inventory to sales target [24] - Average inventory turns for 2024 ended at 1.67%, with a target of about 2 turns by year-end 2025 [24] Market Data and Key Metrics Changes - Management noted a slight improvement in sentiment among growers since the low point in summer 2024, but purchasing remains conservative due to high capital costs and tariff uncertainties [16] - The company anticipates that 2025 will be better than 2024, with adjusted EBITDA target range of $45 million to $52 million and sales expected between $565 million and $585 million [18] Company Strategy and Development Direction - The new CEO emphasized the need to improve margins, rightsize the balance sheet, and return to growth, indicating that the company has a resilient revenue base to build upon [9] - The company is undergoing a transformation plan that includes exiting certain markets, cutting costs, and implementing an ERP system to simplify operations [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, noting that while the agricultural economy is gradually improving, farmers are still cautious due to potential tariff impacts [33] - The CEO highlighted that the company aims to generate free cash flow and strengthen its balance sheet by decreasing net working capital and paying down debt [35] Other Important Information - The company recorded $118 million in nonrecurring charges for 2024, primarily related to asset impairments and transformation projects [27] - There is a delay in filing the audited 10-K due to complex assessments related to write-downs, with plans to file a 12b-25 with the SEC [29] Q&A Session Summary Question: Timing of the financial filing - Management indicated that the filing would occur within weeks, not months, and attributed the delay to complex write-downs rather than any surprising issues [40][41] Question: Working capital expectations for 2025 - Management stated that inventory is the primary focus for reducing working capital, with a refreshed SIOP model to enhance efficiency [45] Question: Addressing organizational complexity - The CEO noted that a modernized ERP system and organizational restructuring are key steps to reduce complexity and improve accountability [48] Question: Impact of tariffs on farmer buying patterns - Management confirmed that uncertainty around tariffs is causing farmers to adopt a just-in-time purchasing approach, impacting revenue guidance [52][53] Question: Margin improvement expectations - The CEO outlined that achieving mid-teens EBITDA margins will involve improving gross margins and reducing operating expenses as a percentage of sales [62] Question: Earnings cadence for 2025 - Management expects lower EBITDA margins in the first half of 2025, with improvement anticipated in the second half [66] Question: Confidence in 2025 guidance - The CEO expressed confidence in the 2025 guidance, with the lower end reflecting slower industry conditions and the upper end indicating positive growth [69][70]

FY 2024 Earnings March 2025 Safe Harbor Statement During this presentation, the Company 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 th ...

Financial Results Announcement - American Vanguard Corporation announced its unaudited financial results for the three- and twelve-month periods ended December 31, 2024[4]. - The press release detailing the financial results was issued on March 14, 2025[4]. - The financial results include both quarterly and annual performance metrics[4]. Company Information - The company is listed on the New York Stock Exchange under the symbol AVD[2]. - The report does not indicate whether the company is an emerging growth company[3]. Performance Guidance and Outlook - The company has not provided specific performance guidance or future outlook in the available documents[4]. Product and Market Development - There is no mention of new product development or technological advancements in the current report[4]. - The report does not discuss market expansion or acquisition strategies[4]. Documentation and Signatures - The financial statements and exhibits are included in the press release linked as Exhibit 99.1[6]. - The report was signed by Timothy J. Donnelly, Chief Information Officer, General Counsel & Secretary[9].

Sales Performance - Overall sales for Q3 2024 declined by 21% compared to Q3 2023, with domestic sales down 33% and international sales down 4%[66]. - Consolidated sales decreased by 6% in the first nine months of 2024 compared to the same period in 2023, with domestic sales down 9% and international sales down 2%[84]. - Total net sales declined by 21% to $118,307 from $149,516 in the prior year[71]. - U.S. crop net sales decreased by 17% to $155,075 in the first nine months of 2024, while U.S. non-crop sales increased by 18% to $59,241[87]. - International net sales decreased by 4% to $60,320, impacted by supply constraints in Asia and a weakening currency in Brazil[74]. - International net sales were down 2% to $167,343, primarily due to weak performance from the Mocap and Assure II products[90]. Profitability - Gross profit for Q3 2024 was $17,293, representing 15% of net sales, a significant decrease from 29% in the same period last year[67][75]. - Gross profit margin fell to 26% in the first nine months of 2024, down from 31% in the same period of 2023, largely due to a $16,191 liability from the Dacthal product recall[85]. - Gross profit decreased by 60% to $17,293, with a gross margin percentage of 15%, down from 29% in the previous year[75]. - The company recorded a net loss of $25,742, or $(0.91) per share, compared to a loss of $325, or $(0.01) per share, in the prior year[70]. - The company recorded a net loss of $35,911 or ($1.28) per share for the first nine months of 2024, compared to net income of $540 or $0.02 per share in the same period of 2023[87]. Operating Expenses - Operating expenses increased by 17% to $45,681, including non-recurring charges of $8,139 related to ongoing transformation activities[68][77]. - Operating expenses increased by 14% year-over-year, reaching $129,003 for the nine-month period ended September 30, 2024[93]. - Research, product development, and regulatory expenses increased by $2,097 to $11,177, reflecting higher costs associated with regulatory and product development studies[77]. Debt and Interest - The company’s average overall debt for Q3 2024 was $209,840, with an effective interest rate of 8.1%, up from 7.1% in the prior year[80]. - Interest expense rose to $4,378 from $3,384 in the same period last year, primarily due to higher interest rates[69][80]. - Interest expense increased to $11,988 for the nine months ended September 30, 2024, compared to $8,282 in the same period of 2023, reflecting higher interest rates[96]. - The company's average overall debt increased to $200,187 for the nine months ended September 30, 2024, from $149,009 in the prior year[97]. Taxation - The effective income tax rate for Q3 2024 was approximately 21.4%, with a tax benefit of $7,024 compared to an expense of $885 in the same period last year[81]. - The company achieved an income tax benefit of $7,093 for the nine months ended September 30, 2024, compared to an expense of $2,066 in the same period of 2023[98]. Cash Flow and Liquidity - Operating activities utilized net cash of $29,402 during the nine-month period ended September 30, 2024, compared to $145,854 during the same period in 2023[100]. - Customer prepayments decreased by $38,375, compared to a decrease of $104,590 in the same period of 2023[103]. - The Company anticipates that cash flow from operations, existing cash balances, and available borrowings will be sufficient to meet liquidity needs for the next twelve months[109]. Product Recall Impact - Domestic crop business net sales were 48% lower than Q3 2023, primarily due to the voluntary product recall of Dacthal, which accounted for $11,783 in lost sales[71][72]. - The company recorded a liability of $16,191 associated with the global voluntary cancellation of the Dacthal registrations[91].

Financial Performance - Net sales for Q3 2024 were $118.3 million, down from $149.5 million in Q3 2023, with an adjusted figure of $130.7 million excluding the Dacthal product recall impact[2]. - Adjusted EBITDA for Q3 2024 was $1.8 million compared to $11.4 million in Q3 2023, maintaining full-year 2024 guidance of $40 million to $50 million[2][4]. - The company reported a net loss per share of $(0.92) for Q3 2024, compared to a loss of $(0.01) in Q3 2023[2][4]. - Total net sales decreased by 21% to $118,307,000 for the three months ended September 30, 2024, compared to $149,516,000 in the same period of 2023[11]. - Total gross profit declined by 60% to $17,293,000, down from $43,084,000 year-over-year[11]. - The net loss for the nine months ended September 30, 2024, was $35,911,000, compared to a net income of $540,000 in the same period of 2023[14]. - Adjusted EBITDA for the three months ended September 30, 2024, was $1,800,000, significantly lower than $11,364,000 in the prior year[15]. - The company experienced a decrease in cash flows from operating activities, with a net cash used of $29,849,000 for the nine months ended September 30, 2024[14]. Revenue Breakdown - Non-crop revenues grew by 17% year-over-year, while green solutions revenues increased by 18% year-over-year[3]. - U.S. crop sales fell by 48% to $35,533,000, while U.S. non-crop sales increased by 17% to $22,454,000[11]. - International sales decreased by 4% to $60,320,000, compared to $62,517,000 in the same quarter of 2023[11]. - The impact of the Dacthal recall resulted in a reduction of $12,403,000 in total net sales[12]. Debt and Assets - The company reduced its long-term debt by $32.5 million, bringing it down to $178.7 million from $211.2 million in the previous quarter[2][4]. - Total assets as of September 30, 2024, were $759.5 million, down from $767.5 million at the end of 2023[9]. - Cash and cash equivalents at the end of the period were $11,880,000, compared to $11,529,000 at the end of the previous period[14]. - The company reported a significant increase in accounts payable by $6,141,000 during the nine months ended September 30, 2024[14]. Transformation and Strategy - Transformation-related benefits are now expected to reach $20 million, up from the previous estimate of $15 million[3]. - The company incurred a $8.1 million transformation charge and a $16.2 million charge related to the Dacthal product recall during the quarter[4]. - The company aims to decrease inventory to 34% of sales by year-end, representing a $25 million reduction compared to the previous year[4]. - The company is actively recruiting a CEO to continue its transformation momentum[3].

American Vanguard Corporation (NYSE:AVD) Q3 2024 Earnings Conference Call November 11, 2024 4:30 PM ET Company Participants Anthony Young - Director, Investor Relations Timothy Donnelly - Acting Chief Executive Officer David Johnson - Vice President, Chief Financial Officer & Treasurer Mark Bassett - Board Member Mason Bennett - Vice President, North American Crop, American Vanguard Corp. Conference Call Participants Ben Klieve - Lake Street Capital Markets LLC Anthony Young Thank you, operator. Good aftern ...

American Vanguard (AVD) came out with a quarterly loss of $0.69 per share versus the Zacks Consensus Estimate of a loss of $0.10. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -590%. A quarter ago, it was expected that this agricultural products company would post a loss of $0.01 per share when it actually produced a loss of $0.09, delivering a surprise of -800%.Over the last four quarters, the ...

PHILADELPHIA, Sept. 26, 2024 (GLOBE NEWSWIRE) -- Berger Montague advises shareholders of American Vanguard Corporation (“AVD”) (NYSE: AVD) about an investigation into AVD’s Board of Directors for potential breaches of fiduciary duties to AVD and AVD’s shareholders. Shareholders of AVD may learn more about this investigation by contacting Berger Montague: Alex Heller at aheller@bm.net or (215) 602-3032, Radha Raghavan at rraghavan@bm.net or (215) 875-4698, or by CLICKING HERE.   In August 2024, the U.S. Envi ...

Core Viewpoint - American Vanguard Corporation (AVD) reported a significant increase in losses for Q2 2024, with a loss of 42 cents per share compared to a loss of 4 cents per share in the same quarter last year. Adjusted loss was wider than expectations, and revenues fell short of estimates due to unfavorable market conditions [1]. Financial Performance - AVD's revenues for the quarter were $128.2 million, down approximately 3% year over year, missing the Zacks Consensus Estimate of $134.2 million [1]. - The U.S. crop business revenues decreased by roughly 7% year over year to about $52.3 million, while the U.S. non-crop business saw a 13% increase to around $19 million [2]. - International revenues declined by around 5% year over year to approximately $56.9 million, primarily due to lower herbicide sales [2]. - The company ended the quarter with cash and cash equivalents of roughly $17.9 million, a sequential increase of about 31%, while long-term debt rose to around $211.3 million, up approximately 13% sequentially [3]. Outlook - AVD has revised its full-year 2024 guidance for adjusted EBITDA down to $40-$50 million from a previous estimate of $60-$70 million. The company now anticipates net sales to be down 2% to flat, compared to an earlier forecast of 6-9% growth [4]. Price Performance - AVD's shares have experienced a significant decline of 62.8% over the past year, contrasting with a 13.9% decline in the industry [5].

Financial Data and Key Metrics Changes - In Q2 2024, net sales decreased slightly to $128.2 million from $132.8 million in the same period last year, with adjusted EBITDA margin declining to 4.8% from 8.2% year-over-year [11][24] - For the first half of 2024, net sales increased by 2% on a consolidated basis, with non-crop sales up 20% and domestic total sales up 5% compared to the first half of 2023 [11][24] - Gross profit for the first half of the year was approximately equal to that of 2023, despite a decline in Q2 gross profit by about 12% [11][25] Business Line Data and Key Metrics Changes - US crop sales were down 7% in Q2 2024 compared to the same period in 2023, while US non-crop sales grew by 13% [24] - International business net sales declined by 2% year-over-year in Q2 2024 [24] - The Green Solutions portfolio recorded double-digit sales increases, driven by strong demand in Central America [11] Market Data and Key Metrics Changes - The agricultural economy is facing challenges due to low commodity prices, high crop input costs, and elevated interest rates, leading to a just-in-time procurement approach among distributors [10][30] - Net farm income is reported to have dropped by approximately 25% compared to the previous year, impacting farmers' purchasing behavior [40] Company Strategy and Development Direction - The company is undergoing a transformation to improve financial performance, focusing on cost reduction, liquidity improvement, and operational efficiency [12][19] - A new organizational structure is being implemented, consolidating into two global businesses: crop and non-crop, expected to be in place by early 2025 [19] - The company aims for a 15% EBITDA margin by 2026, despite current challenges, by improving efficiency and sales of higher-margin products [30][51] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current results as unacceptable and emphasizes the need for decisive action to improve cost structure and liquidity [12] - The outlook for the second half of 2024 is cautious, with expectations of stable demand in the crop segment but awareness of various market risks [30] - The company has lowered its full-year 2024 targets for adjusted EBITDA and sales due to the challenging agricultural market conditions [30] Other Important Information - The EPA has issued an emergency suspension of the product Dacthal, which the company had already voluntarily suspended sales of in April 2024 [12] - The company is working with the EPA to ensure compliance with the suspension and has removed Dacthal sales from its 2024 forecast [12] Q&A Session Summary Question: What are the steps to accelerate cost savings and when will they reflect in financials? - Cost savings from procurement and logistics are expected to start in Q3 2024, with full savings realized by the end of 2025 [34] Question: What has changed in the North American ag market leading to lowered guidance? - The ag economy is facing challenges, with customers managing cash flow and moving towards just-in-time purchasing [38][40] Question: What is the status of Dacthal and potential litigation risks? - There is minimal product in the channel, and the company is not aware of any litigation risks at present [42][46] Question: How will the transformation impact the Green Solutions segment? - The transformation will allow for more focused strategies and resource allocation to accelerate growth in the Green Solutions portfolio [56][60] Question: What are the expectations for working capital reduction by year-end? - The company expects to reduce working capital by $70 million to $80 million over the remainder of the year [62]