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].

Financial Data and Key Metrics Changes - The company reiterated its 2024 adjusted EBITDA target of $40 million to $50 million and sales target of $565 million to $580 million, excluding product recall charges [7][28] - In Q3 2024, adjusted EBITDA was $2 million, down from $11 million in the same period last year, with sales of $130.7 million compared to $149.5 million [13][16] - Gross profit margin declined to 26% from 29% year-over-year, primarily due to decreased sales of Aztec [23] Business Line Data and Key Metrics Changes - U.S. crop business sales decreased by 30% or $20 million compared to Q3 2023, driven by significant declines in Aztec and Folex sales [16][18] - U.S. non-crop business saw a 17% increase in sales, led by a 45% increase in OHP distribution business [19] - Sales from the Green Solution product portfolio increased by 18% in Q3 and 20% year-to-date [20] Market Data and Key Metrics Changes - The international business experienced a 3% decline in sales, impacted by generic pressures and drought conditions in Australia [22] - The agricultural economy has shown signs of normalization after a downturn, with expectations for cautious inventory accumulation as the market moves into 2025 [10][11] Company Strategy and Development Direction - The company is focused on transforming into an efficient, reliable, and profitable supplier to the agricultural industry, with ongoing business transformation efforts expected to yield higher benefits than previously targeted [5][30] - A new customer-centric structure is being implemented to enhance decision-making and accountability across the organization [34][35] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the cyclical recovery in the agricultural market, anticipating a strong fourth quarter driven by seasonal demand [12][38] - The company is addressing challenges from generics, particularly with Folex, by emphasizing service and superior product formulations [49][50] Other Important Information - The company reported a $16.2 million charge related to the voluntary recall of the Dacthal product line and an additional $8.1 million charge for transformation support [27] - Long-term debt was reduced by $32.5 million compared to the previous quarter, reflecting improved liquidity [25] Q&A Session Summary Question: Can you walk us through the levers for achieving the $50 million EBITDA guidance? - Management highlighted the seasonal strength of Q4 and the expected improvement in demand as key drivers for achieving the guidance [42] Question: What is the impact of generics on Folex and other products? - Management noted that Folex has been significantly impacted by generics, particularly in international markets, and emphasized the company's focus on service and product quality to compete [46][49] Question: Are there any additional costs expected from the Dacthal recall in Q4? - Management indicated that the current estimate of $16 million covers anticipated costs, but any new issues would be addressed as they arise [52]

Core Viewpoint - American Vanguard (AVD) reported a quarterly loss of $0.69 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.10, marking an earnings surprise of -590% [1] - The company's revenues for the quarter were $118.31 million, missing the Zacks Consensus Estimate by 14.52% and down from $149.52 million a year ago [2] Financial Performance - Over the last four quarters, American Vanguard has only surpassed consensus EPS estimates once [2] - The company has not beaten consensus revenue estimates in the last four quarters [2] - Year-to-date, American Vanguard shares have declined by approximately 47.4%, contrasting with the S&P 500's gain of 25.7% [3] Future Outlook - The company's earnings outlook will be crucial for investors, particularly in light of management's commentary during the earnings call [4] - Current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $169.1 million, while for the current fiscal year, the estimate is -$0.34 on revenues of $570.9 million [7] Industry Context - The Chemical - Specialty industry, to which American Vanguard belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact American Vanguard's stock performance [5][6]

Core Viewpoint - An investigation is underway regarding potential breaches of fiduciary duties by the Board of Directors of American Vanguard Corporation (AVD) in light of significant health risks associated with its subsidiary AMVAC Chemical Corporation's pesticide DCPA [1][4]. Group 1: Investigation Details - Berger Montague is advising AVD shareholders about the investigation into the Board of Directors for potential breaches of fiduciary duties [1]. - The investigation focuses on the failure to ensure product safety and the exposure of the company to significant litigation risks [4]. Group 2: Regulatory Actions - In August 2024, the U.S. Environmental Protection Agency (EPA) suspended all registrations of the pesticide DCPA manufactured by AMVAC due to significant health risks to unborn babies [2]. - This suspension marks the first use of the EPA's emergency suspension powers in 40 years, highlighting the urgency of the health risks posed by DCPA [2]. Group 3: Historical Context - The EPA had previously alerted AMVAC to potential health risks related to DCPA in 2013, but the company failed to provide necessary data for over ten years [3]. - AMVAC only submitted the required test results in November 2023, which confirmed the significant risks posed to pregnant mothers and their unborn children [3].

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]

Q2 2024 Earnings Call August 8, 2024 Corporate Representatives in Attendance 2 Tim Donnelly……………………………………….Acting Chief Executive Officer Mark Bassett …………………………………..……………………… Board Member David Johnson ……………………………...……………… Chief Financial Officer Mason Bennett…………………………..Vice President, North American Crop Anthony Young …………………………..………….. Director, Investor Relations Safe Harbor Statement During this presentation, the Company may discuss forward-looking information. Except for the historical information co ...

Exhibit 99.2 C Corrected Transcript 08-Aug-2024 American Vanguard Corp. (AVD) Q2 2024 Earnings Call Total Pages: 19 1-877-FACTSET www.callstreet.com Copyright © 2001-2024 FactSet CallStreet, LLC American Vanguard Corp. (AVD) Q2 2024 Earnings Call Corrected Transcript 08-Aug-2024 CORPORATE PARTICIPANTS Anthony Young David T. Johnson Director-Investor Relations, American Vanguard Corp. Vice President, Chief Financial Of icer & Treasurer, American Vanguard Corp. Timothy J. Donnelly Acting Chief Executive Of ic ...

Financial Performance - Net sales for the three months ended June 30, 2024, were $128,209 thousand, a decrease of 3.9% compared to $132,790 thousand for the same period in 2023[15] - Gross profit for the three months ended June 30, 2024, was $37,763 thousand, down 12.1% from $42,909 thousand in the prior year[15] - Net loss for the three months ended June 30, 2024, was $(11,721) thousand, compared to a net loss of $(1,053) thousand for the same period in 2023[18] - Operating loss for the three months ended June 30, 2024, was $(9,232) thousand, a significant decline from operating income of $3,754 thousand in the same quarter last year[15] - Total net sales for the three months ended June 30, 2024, were $128,209 million, a decrease of 4.4% compared to $132,790 million for the same period in 2023[38] - The company recorded a net loss of $11,721 million for the three months ended June 30, 2024, compared to a net loss of $1,053 million for the same period in 2023[47] - The company recorded a net loss of $10,169 or ($0.36) per share for the first half of 2024, compared to a net income of $865 or $0.03 per share in the same period of 2023[97] Assets and Liabilities - Total current assets increased to $477,581 thousand as of June 30, 2024, from $432,021 thousand at December 31, 2023, reflecting a growth of 10.5%[21] - Total liabilities rose to $454,230 thousand as of June 30, 2024, compared to $397,538 thousand at the end of 2023, marking an increase of 14.3%[21] - Cash and cash equivalents increased to $17,949 thousand as of June 30, 2024, up from $11,416 thousand at December 31, 2023[21] - Total inventories increased to $244,935 million as of June 30, 2024, from $219,551 million as of December 31, 2023, reflecting a rise of 11.6%[43] - Long-term indebtedness from the revolving line of credit increased to $211,254 million as of June 30, 2024, compared to $138,900 million as of December 31, 2023[49] - As of June 30, 2024, the Company had long-term indebtedness of $210,218, an increase from $137,682 as of December 31, 2023[114] Sales Performance - U.S. crop sales for the three months ended June 30, 2024, were $52,289 million, down 6.8% from $56,212 million in the prior year[38] - International sales for the three months ended June 30, 2024, were $56,909 million, a decrease of 4.7% compared to $59,700 million in the same period last year[38] - U.S. crop net sales decreased by 7% to $52,289 in the second quarter of 2024, while U.S. non-crop sales increased by 13% to $19,011[83] - International net sales declined by 5% to $56,909, with herbicide sales down 27% due to competition from low-cost generics[85] Expenses - Research, product development, and regulatory expenses for the three months ended June 30, 2024, were $8,599 thousand, a decrease of 8.6% from $9,413 thousand in the same period last year[15] - Operating lease expenses for the three months ended June 30, 2024, were $1,955 thousand, an increase from $1,674 thousand in the same period of 2023[33] - Operating expenses increased by 20% to $46,995 for the three-month period ended June 30, 2024, primarily due to non-recurring charges related to business transformation[86] - Operating expenses increased by approximately 12% to $83,322, driven by one-time business transformation costs and other administrative expenses[96][101] Cash Flow and Financing - Operating activities utilized net cash of $56,452 during the six-month period ended June 30, 2024, a decrease of 41.6% from $96,602 in the same period of 2023[107] - Financing activities provided $70,285 during the six-month period ended June 30, 2024, compared to $98,086 in the same period of the prior year[112] - Cash used for investing activities was $6,398 for the six-month period ended June 30, 2024, compared to $7,172 in the same period of 2023[111] Taxation - The company recorded an income tax benefit of $1,553 for the three months ended June 30, 2024, compared to an income tax expense of $1,541 in the same period of 2023[82] - The effective income tax rate for the six months ended June 30, 2024, was 0.7%, a significant decrease from an income tax expense of $1,181 in the same period of 2023[105] Stock and Compensation - The weighted average shares outstanding for basic earnings per share were 28,024 thousand for the three months ended June 30, 2024, compared to 28,428 thousand for the same period in 2023[15] - The company recognized stock-based compensation of $2,752 thousand for the six months ended June 30, 2024[30] - For the three months ended June 30, 2024, stock-based compensation expense was $747, down from $1,067 in the same period of 2023, representing a decrease of approximately 30%[54] - The total unrecognized stock-based compensation expense related to RSUs outstanding was $5,989, expected to be recognized over a weighted-average period of 1.6 years[55] Regulatory and Legal Matters - The company recorded a liability related to a plea agreement with the Department of Justice, which includes a fine and a three-year probation period[59] - The company is currently evaluating the impact of adopting new accounting standards issued by the FASB, effective for fiscal years beginning after December 15, 2023[65][66] - The company has recorded a loss contingency related to a wage and hour violation lawsuit, with mediation scheduled for September 2024[60] - The USEPA issued an emergency suspension of DCPA products on August 6, 2024, prohibiting their distribution, sale, and use, which could adversely affect financial performance[128] - The Company is engaged in a registration review process with the USEPA that could impair the commercial viability of its products, particularly DCPA[128] Transformation Initiatives - The Company has invested in transformation initiatives aimed at improving efficiencies and operating leverage during Q4 2023 and the first two quarters of 2024, but there is no guarantee of achieving targeted results[129] - Transformation costs related to the company's digital and structural initiatives amounted to $7,345 during the three months ended June 30, 2024[88] - The Company is taking measures to ensure the success of its transformation initiatives, but the return on these initiatives may not exceed the investment[129]