Financial Data and Key Metrics Changes - In Q2 2023, overall net sales decreased by 10% compared to the same period in 2022, amounting to a decline of approximately $15 million [14] - The company adjusted its full-year 2023 performance targets, projecting net sales between $615 million and $625 million, adjusted EBITDA between $70 million and $75 million, and net income between $20 million and $24 million [5][23] - Gross margin percentage for Q2 2023 was 32%, down from 33% in 2022, primarily due to increased international sales and generic price competition [14] Business Line Data and Key Metrics Changes - U.S. crop business net sales were down 11%, impacted by the unavailability of a high-margin herbicide [6] - Non-crop business net sales decreased by about 20% due to retailers reducing inventory levels [8] - International sales dropped by 6%, with strong performance in Mexico and Australia not enough to offset competition from low-priced generic products in Central America and Brazil [8] Market Data and Key Metrics Changes - The global agricultural chemical industry experienced an average sales drop of approximately 20%, while the company’s sales decline was only 10% [6] - Channel inventory of corn soil insecticides is at historic lows, with only 12% of the amount applied last year, indicating potential for increased demand [20] Company Strategy and Development Direction - The company is focusing on managing expenses to improve operating leverage and is optimistic about a recovery in the second half of the year [4][5] - The Green Solutions portfolio continues to grow, with a 21% increase in sales compared to Q2 2022, indicating a shift towards more sustainable products [10] - The company is advancing its SIMPAS precision application system in Brazil, which is expected to enhance market presence and revenue opportunities [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that the farm economy remains strong with stable commodity prices, which should support demand in the second half of the year [20] - The company anticipates that domestic sales will be approximately flat compared to last year, while international business is expected to grow by 3% to 5% [22] - Management emphasized the importance of financial discipline and operating efficiency in the current market conditions [25] Other Important Information - The company has initiated a stock repurchase plan, reflecting confidence in its equity value [10] - A one-time tax expense in Brazil impacted overall performance, marking only the second loss recorded in the last 55 quarters [16] Q&A Session Summary Question: Impact of inventory destocking on market share - Management acknowledged the pressure from glyphosate pricing but noted that their products remain complementary and have maintained market share [28] Question: Changes in competitive landscape due to destocking - Management confirmed that pricing pressure has increased across all markets, but they are focusing on products with stronger margins [31] Question: Confidence in inventory normalization - Management explained their inventory tracking system and expressed confidence in the accuracy of their inventory levels [36] Question: Updates on SIMPAS solution in Brazil - Management indicated that they are monitoring the adoption of SIMPAS and will provide updates in future calls [42] Question: Cost reduction initiatives - Management highlighted efforts to improve inventory management and factory efficiencies as part of their cost reduction strategy [45]

Financial Performance - Q2 2023 net sales decreased by $15 million, from $148 million to $133 million[5, 11] - The company's Q2 2023 net loss for AVD was $1053 thousand, compared to a net income of $6830 thousand in 2022[19] - H1 2023 net sales decreased by $40123 thousand, from $297797 thousand to $257674 thousand[23] - H1 2023 net income for AVD was $865 thousand, compared to $16765 thousand in 2022[23] - The company restated full year net sales targets to $615 million - $625 million, EBITDA to $70 million - $75 million, and net income to $20 million - $24 million[5] Market Dynamics - The industry experienced in-channel destocking[5] - Industry peers' average sales were down approximately 20%, while AVD's sales were down 10%[6] - International sales accounted for 45% of total sales in Q2 2023, compared to 43% in Q2 2022[11] Strategic Initiatives - Green solutions sales increased by 21%[7] - The company authorized a $15 million share repurchase in Q2 and an additional $75 million in Q3[7] - The company is targeting operating expenses as a percentage of net sales to be 25-27%[28]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $.10 par value AVD New York Stock Exchange FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number 001-13795 ...

American Vanguard Corporation (NYSE:AVD) Q1 2023 Results Conference Call May 9, 2023 5:00 PM ET Company Participants Bill Kuser - Director of IR & Corporate Communications Eric Wintemute - Chairman & CEO Scott Hendrix - SVP of Crop Sales for U.S. & Canada David Johnson - VP, CFO & Treasurer James Thompson - Director of Business Development Ulrich Trogele - COO & Executive VP Conference Call Participants Chris Kapsch - Loop Capital Gerry Sweeney - ROTH Capital Wayne Pinsent - Gabelli Operator Welcome to the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.10 par value AVD New York Stock Exchange FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number 001-1379 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.10 par value AVD New York Stock Exchange FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Year Ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period From To Commission file number 001-13795 AMERICA ...

Financial Data and Key Metrics Changes - The company reported a net sales growth of 9% for the full year 2022, with net income increasing by 47% compared to 2021 [5][12] - Gross profit margin improved to 40%, up from 38% in 2021, while operating expenses remained at 33% of sales [12][13] - Adjusted EBITDA increased by 15% year-over-year, reaching $73 million, with an EBITDA margin improvement to 12% [14][15] Business Line Data and Key Metrics Changes - The U.S. crop business grew by 9% to $289 million, while the international business saw a 13% increase to $244 million [12][14] - The non-crop business remained stable despite a 30% drop in the domestic consumer product market, with a rebound in the commercial non-crop segment [8][12] - The Green Solutions business experienced a revenue growth of 32%, increasing from $37 million in 2021 to $49 million in 2022 [24] Market Data and Key Metrics Changes - The company's international business recorded its highest sales increase, driven by strong demand for green solutions and soil fumigants in Mexico and Australia [8][9] - The Latin American business achieved a record milestone of $100 million in sales [9] Company Strategy and Development Direction - The company is focused on expanding its core business, green solutions, and precision application technologies, with a target of $694 million in revenues by 2025 [22] - The SIMPAS technology platform is being restructured into a dedicated business unit to enhance focus and drive adoption [35][70] - The company plans to continue investing in acquisitions and partnerships to grow its green solutions portfolio [19][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the 2023 outlook, expecting net sales to grow between 8% and 12% due to high demand for corn and soybean products [36] - The company anticipates improved supply chain conditions and low inventory levels, which should support sales growth [44][60] Other Important Information - The company has authorized a stock repurchase program of up to $15 million for 2023 [21] - A change in accounting treatment for outbound freight costs is planned, which will affect financial ratios but not net income [16] Q&A Session Summary Question: Market conditions and pricing actions - Management indicated that they have successfully implemented price increases to offset inflationary costs, with a strong position to maintain margins despite competitive pressures [41][42] Question: Supply chain issues and sales recovery - Management confirmed that supply chain disruptions affecting the Aztec product have improved, with production resuming and alternative products being offered [43][44] Question: Growth platforms and visibility through 2025 - Management reiterated confidence in achieving growth targets for green solutions and discussed ongoing M&A activity as a key driver for growth [49][51] Question: Channel inventories and visibility - Management noted that channel inventories are at low levels, which positions the company well for the upcoming season [56][59] Question: Metrics for evaluating early technologies in M&A - The company uses a 10-year P&L forecast and a hurdle rate of 10% to 15% for evaluating acquisitions, aiming for accretive deals from day one [62][64] Question: Gross margin improvement sustainability - Management expressed confidence in maintaining gross margin improvements through effective pricing strategies [65][66] Question: Resources for SIMPAS adoption - Management confirmed that dedicated resources are being allocated to drive SIMPAS adoption in both the U.S. and Brazil [68][70]

Financial Data and Key Metrics Changes - The company's net sales increased by 3.4% to $152 million in Q3 2022 compared to $147 million in Q3 2021 [17] - Year-to-date sales were up 13%, with net income increasing by 71% and adjusted EBITDA rising by 30% [29][23] - Gross margins improved from 45% to 50% in the U.S. crop business, while non-crop sales saw a reduction in gross margin by 1% [18] Business Line Data and Key Metrics Changes - U.S. crop sales increased by 4%, contributing to a 14% rise in absolute gross profit [18] - Non-crop sales decreased by 11% year-to-date due to reduced consumer demand for lawn and garden products [8] - International sales grew by 9%, with significant contributions from Agrinos (55% growth) and Brazil (42% growth) [9] Market Data and Key Metrics Changes - High commodity prices for corn, soybeans, and wheat are supporting a strong farm economy, with corn prices rising 68% over the past two years [10] - The international business accounted for 42% of total sales, up from 40% the previous year [17] - The company noted a strong demand for agricultural products, with distribution partners optimistic about the 2023 planting season [11] Company Strategy and Development Direction - The company is focused on three growth pillars: core product growth, green solutions, and precision application innovations [30] - The company is actively pursuing acquisitions, having evaluated over 30 potential targets, with a balanced focus on core products and green solutions [31][72] - The company aims to expand its green solutions portfolio and enhance its precision application technologies [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the agricultural sector's upcycle continuing into 2023, despite potential headwinds such as inflation and geopolitical factors [15] - The company is well-positioned to maintain strong performance, with a robust pipeline of technology and a focus on innovation [15][36] - Management noted that they are not experiencing price pushback from customers, indicating a favorable pricing environment [58] Other Important Information - The company repurchased 1.2 million shares during Q3 2022, reflecting confidence in its business strength [6] - The effective income tax rate increased to 30.5% in Q3 2022, compared to 20.7% in Q3 2021, primarily due to jurisdictional profit mix [21] - The company has made prudent decisions to hold higher levels of inventory to meet demand amid ongoing logistics challenges [27] Q&A Session Summary Question: Thoughts on the agricultural cycle and 2023 outlook - Management indicated that there is no current indication of a downward cycle, with strong prospects for 2024 and 2025 [39][40] Question: Internal needs to drive growth in Green Solutions and SIMPAS - Management is allocating resources to support growth in these areas, including marketing and personnel [42] Question: Pricing dynamics and acquisition strategies - Management is being prudent with acquisitions, focusing on accretive opportunities and partnerships to enhance market access [45][72] Question: Volume versus price impact on sales - For the year, sales were driven 80% by price increases and 20% by volume, with Q3 showing 85% from price [49][55] Question: Future pricing expectations and cost inflation - Management does not anticipate needing to reduce prices even if cost inflation moderates, given the robust farm economy [61] Question: Shift in crop preferences and its impact - Management noted a likely shift towards corn planting due to favorable economics, which could positively impact demand for related products [68]

Financial Performance - Net sales for the three months ended September 30, 2022, were $152,117 thousand, an increase of 3.7% compared to $147,298 thousand for the same period in 2021[15]. - Gross profit for the nine months ended September 30, 2022, was $182,356 thousand, up 18.2% from $154,334 thousand in the prior year[15]. - Operating income for the three months ended September 30, 2022, increased to $11,244 thousand, representing a 25.7% rise from $8,946 thousand in the same quarter of 2021[15]. - Net income for the nine months ended September 30, 2022, was $23,506 thousand, a significant increase of 71.3% compared to $13,713 thousand for the same period in 2021[15]. - Earnings per share (basic) for the three months ended September 30, 2022, was $0.23, up from $0.18 in the same quarter of the previous year[15]. - Total net sales for the nine months ended September 30, 2022, were $449,636,000, up from $398,063,000 in 2021, reflecting a growth of 12.9%[40]. - U.S. crop sales for the nine months ended September 30, 2022, reached $220,503,000, compared to $184,052,000 in 2021, marking an increase of 19.7%[40]. - International sales for the nine months ended September 30, 2022, were $175,485,000, up from $153,448,000 in 2021, indicating a growth of 14.3%[40]. - Consolidated net sales increased by 3% to $152,117 in Q3 2022, compared to $147,298 in Q3 2021, driven by a 9% increase in international sales[106]. - Net income rose by 23% to $6,741 in Q3 2022, up from $5,498 in Q3 2021, reflecting improved profitability[106]. - Gross profit increased by 8% to $61,384 in Q3 2022, with gross margin improving to 40% from 39% year-over-year[107]. Assets and Liabilities - Total current assets as of September 30, 2022, were $436,801 thousand, an increase from $342,000 thousand as of December 31, 2021[21]. - Total liabilities increased to $413,607 thousand as of September 30, 2022, compared to $321,422 thousand at the end of 2021[21]. - Cash and cash equivalents rose to $20,808 thousand as of September 30, 2022, from $16,285 thousand at the end of the previous year[21]. - Total stockholders' equity decreased to $362,568 thousand as of September 30, 2022, from $372,738 thousand at the end of 2021[21]. - Long-term indebtedness from the revolving line of credit increased to $149,300 million as of September 30, 2022, from $53,300 million as of December 31, 2021[55]. - The Company's total Funded Debt was $149.3 million, with a Consolidated EBITDA of $77.2 million, resulting in a leverage ratio of 1.93, well below the maximum allowed ratio of 3.5[58]. - Long-term net debt increased to $148,414,000 as of September 30, 2022, compared to $52,240,000 on December 31, 2021[152]. Cash Flow and Investments - Net cash used in operating activities for the nine months ended September 30, 2022, was $(45,678,000), compared to $(174,000) in 2021[29]. - Cash used for investing activities decreased to $9,978 in 2022 from $18,431 in 2021, with no product acquisition in the current year[148]. - Financing activities provided $59,797, with net borrowings under the Credit Agreement amounting to $96,000 during the nine-month period ended September 30, 2022[149]. - The company has the capacity to increase its borrowings by up to $120.8 million, compared to $94.9 million available as of September 30, 2021[58]. Shareholder Activities - The company declared cash dividends of $0.025 per share for the quarter ending March 31, 2022, totaling $742,000[24]. - The company declared a cash dividend of $0.025 per share in September 2022, totaling $715 million paid out[51]. - The company announced a share repurchase program to buy back up to 1,000,000 shares of its common stock over the next year, with no repurchases made in the same periods of 2021[96]. - The company repurchased shares totaling 606,000 during the quarter ending June 30, 2022[24]. - The company repurchased a total of 720,350 shares of common stock during the three-month period ended September 30, 2022, at an average price of $19.06 per share, totaling $13,731,000[166]. - An accelerated share repurchase arrangement was executed on August 22, 2022, for $20,000,000, resulting in an initial delivery of 802,810 shares at an average price of $19.93[169]. Tax and Regulatory Matters - The Company reported an income tax expense of $2,963 for the three-month period ended September 30, 2022, compared to $1,517 for the same period in 2021, reflecting an effective tax rate increase from 20.7% to 30.5%[95]. - For the nine-month period ended September 30, 2022, the income tax expense was $10,187, up from $5,324 in 2021, with the effective tax rate increasing from 27.4% to 30.2%[95]. - The Company has been cooperating with an ongoing investigation by the DOJ and EPA regarding environmental statutes, with discussions for potential resolution expected to resume soon[76]. - The Company is engaged in settlement discussions with the USEPA regarding the suspension of DCPA, with a hearing date set for January 24, 2023[80]. Operational Insights - The company experienced strong demand for its domestic crop and international products during the nine-month period ended September 30, 2022[32]. - The company plans to continue meeting demand by adjusting prices and optimizing factory performance amid inflationary pressures[106]. - Operating expenses rose by $1,730 to $50,140 for the three-month period ended September 30, 2022, reflecting a 4% increase compared to the same period in 2021[117]. - Research, product development, and regulatory expenses increased by $2,020 to $23,241, driven by infield activities and international product defense[135]. Market Risks and Controls - The company has not engaged in hedging activities for foreign currency exchange rate risks, which may affect revenues and expenses from non-U.S. dollar functional currencies[157]. - The company is exposed to market risks related to interest rate fluctuations due to its variable rate line of credit[157]. - The company continues to assess business risks, including inflation and increased interest rates, which could adversely impact financial performance[164]. - As of September 30, 2022, the company's disclosure controls and procedures were deemed effective by management[159]. - There were no material changes to the critical accounting policies during the reporting period ending September 30, 2022[155].