Core Viewpoint - American Vanguard Corporation (AVD) reported a significant increase in earnings per share for Q4 2023, reaching 25 cents, compared to 13 cents in the same quarter last year, aligning with the Zacks Consensus Estimate [1] Financial Performance - Revenues for Q4 2023 were $172.2 million, an 8% increase year over year, but slightly below the Zacks Consensus Estimate of $172.7 million [1] - For the full year 2023, net sales decreased to $579 million from $610 million in 2022, with net income dropping to $7.5 million from $27.4 million [3] - Earnings per share for 2023 were 26 cents, down from 92 cents in 2022 [3] - The company ended the quarter with cash and cash equivalents of approximately $11.4 million, a 44% decrease year over year, while long-term debt rose to about $138.9 million, a 170% increase [4] Sales by Regions - Revenues from the U.S. crop business increased nearly 11% year over year to around $83.4 million [2] - Sales from the U.S. non-crop business rose around 10% year over year to approximately $25.2 million [2] - International business revenues fell 7% year over year to $63.5 million [2] Outlook - The company aims for revenue growth of 8-12% in 2024, projecting full-year adjusted EBITDA between $70-$80 million [5] - AVD is targeting adjusted EBITDA growth to 15% of net sales, which could add an additional $15 million or more in adjusted EBITDA annually [5] - The benefits from the business transformation initiative are expected to materialize by 2026, focusing on operational, commercial, digital, and administrative improvements [5] Price Performance - American Vanguard's shares have decreased by 47.9% over the past year, contrasting with a 34.4% increase in the industry [6]

Financial Data and Key Metrics Changes - For the full year 2023, overall sales declined by about 5% from $610 million to $579 million, primarily due to the unavailability of key products Aztec and Dacthal [16][17] - Gross profit decreased by about 7%, with gross margin percentage dropping from 32% to 31% year-over-year [17] - Net income for the year was approximately $7.5 million, or $0.26 per share, with most of this income generated in Q4 [19] Business Line Data and Key Metrics Changes - U.S. crop sales declined by 7% due to the unavailability of Aztec and Dacthal, while U.S. non-crop and international sales declined more modestly [16] - In Q4, sales increased by 8% compared to the prior year, attributed to improved supply chain conditions and reduced destocking [9][10] Market Data and Key Metrics Changes - The price of corn in the U.S. dropped nearly one-third since early last year, from $6.38 per bushel to about $4.25 per bushel, impacting the overall market conditions [11] - Demand for crop inputs remains stable despite declining commodity prices, with biological products gaining traction among growers [11][12] Company Strategy and Development Direction - The company is targeting a sales increase of 8% to 12% and adjusted EBITDA of $70 million to $80 million for 2024, aiming to enhance shareholder value [7][15] - A business transformation initiative is underway to improve operating leverage and move adjusted EBITDA to 15% of net sales by 2026, expected to generate an additional $15 million in annualized EBITDA [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of current market conditions and the company's ability to rebound from previous supply chain issues [8][10] - The outlook for 2024 is positive, with expectations of strong demand for key products like Aztec as the season unfolds [42] Other Important Information - The company plans to file its Form 10-K with the SEC for an extension due to ongoing documentation completion [4] - The company has dual-sourced the supply of raw materials for key products to ensure continuity and availability going forward [9] Q&A Session Summary Question: Update on SIMPAS adoption and future opportunities - Management indicated that approximately 240 to 250 SIMPAS systems are currently in play, with ongoing approvals and positive results from prescriptive applications [29][30] Question: Clarification on the transformation plan and KPIs - The additional $15 million in savings is expected to be realized on an annualized basis by 2026, with KPIs focusing on gross margin, EBITDA, and operational efficiencies [32][34] Question: Outlook for 2024 regarding key products - Management expects normalized demand for Aztec and Dacthal in 2024, with strong orders and no inventory build anticipated [42] Question: Impact of dicamba registration uncertainty - Management noted that the outcome of dicamba's regulatory status is uncertain, but they are ramping up their herbicide portfolio to capitalize on potential opportunities [49][50]

Core Insights - American Vanguard Corporation has declared a cash dividend of $0.03 per share for shareholders of record as of March 27, 2024, with distribution scheduled for April 10, 2024 [1] - The company has a history of providing cash returns to shareholders, reflecting confidence in its core business and strategic growth initiatives [2] Dividend History - The cash dividend payments for the past years are as follows: - 2024: $0.060 (pending payment) - 2023: $0.120 - 2022: $0.095 - 2021: $0.080 [2] Company Overview - American Vanguard Corporation is a diversified specialty and agricultural products company focused on crop protection, nutrition, turf management, and pest control [3] - The company operates in 17 countries with over 1,000 product registrations in 56 nations, emphasizing three growth initiatives: Core Business, Green Solutions, and Precision Agriculture innovation [3] - American Vanguard is included in the Russell 2000® and Russell 3000® Indexes [3]

Group 1 - American Vanguard (AVD) is a member of the Basic Materials sector, ranking 15 in the Zacks Sector Rank among 237 companies [1] - AVD currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook [2] - The Zacks Consensus Estimate for AVD's full-year earnings has increased by 4.4% in the past quarter, reflecting stronger analyst sentiment [2] - AVD has gained approximately 1.4% year-to-date, outperforming the Basic Materials sector, which has returned an average of -2.5% [2] - AVD belongs to the Chemical - Specialty industry, which ranks 85 in the Zacks Industry Rank, with stocks in this group gaining about 8.7% year-to-date [3] Group 2 - Ecolab (ECL), another stock in the Basic Materials sector, has outperformed the sector with a year-to-date return of 13.2% [2] - The consensus estimate for Ecolab's current year EPS has increased by 6.5% over the past three months, and it holds a Zacks Rank of 1 (Strong Buy) [3] - Both American Vanguard and Ecolab are expected to continue their solid performance, making them noteworthy for investors interested in Basic Materials stocks [3]

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--American Vanguard Corporation (NYSE: AVD) announced that Mort Erlich, who has served on the company’s board of directors since October 2013, has expressed his intention to retire effective as of the filing of the Form 10-K for the period ended December 31, 2023. Mr. Erlich joined American Vanguard after a 34-year career with KPMG LLP and has served as the Chair of the company’s Audit Committee, as well as a member of both the Compensation Committee and Nominating & Co ...

Group 1 - American Vanguard (AVD) is a member of the Basic Materials sector, which includes 236 individual stocks and holds a Zacks Sector Rank of 15 [1] - AVD has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [1] - Over the past three months, the Zacks Consensus Estimate for AVD's full-year earnings has increased by 4.4%, reflecting improved analyst sentiment [2] Group 2 - AVD has achieved a year-to-date performance of approximately 0.6%, outperforming the Basic Materials group, which has lost about 7% on average [2] - Ecolab (ECL), another stock in the Basic Materials sector, has a year-to-date return of 9.1% and a Zacks Rank of 1 (Strong Buy) [2] - AVD is part of the Chemical - Specialty industry, which consists of 33 companies and currently ranks 101 in the Zacks Industry Rank, with the industry gaining about 3.4% this year [3]

The price-to-earnings (P/E) multiple enjoys wide-scale popularity among investors seeking stocks trading at a bargain. In addition to being a widely used tool for screening stocks, P/E is a popular metric for working out the fair market value of a firm. But even this ubiquitously used valuation multiple has a few limitations.Although P/E is the most popular valuation metric, a more complicated multiple called EV-to-EBITDA works even better. Often considered a better alternative to P/E, it gives the true pic ...

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--American Vanguard Corporation (NYSE: AVD), today announced key metrics from its preliminary and unaudited financial results for the fourth quarter and full year ended December 31, 2023. Eric Wintemute, Chairman and CEO of American Vanguard commented, “During our third quarter earnings report in November, we indicated expectations for the full year 2023 and our targets for 2024. While we have not completed our full audit cycle, I am pleased to report that based on our ...

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--American Vanguard Corporation (NYSE: AVD), today announced that it will discuss certain key preliminary and unaudited financial results for the fourth quarter and full year ended December 31, 2023, on Wednesday, January 31, 2024. Eric Wintemute, Chairman and CEO of American Vanguard commented, “In addition to our discussion of Preliminary Fourth Quarter and Full Year 2023 performance, we will speak to our 2024 Financial Targets, and provide an update on our importa ...

More than a dozen financial firms are involved in new bitcoin ETFs that began trading on Thursday, but one of the biggest fund issuers and money managers in the world still won't touch cryptocurrency.A Vanguard spokeswoman told CNBC that the asset management giant has no plans to create a bitcoin ETF of its own, or to even offer funds from other issuers on its trading platform."While we continuously evaluate our brokerage offer and evaluate new product entries to the market, spot Bitcoin ETFs will not be av ...