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American Vanguard (AVD) - 2024 Q3 - Quarterly Results
AVDAmerican Vanguard (AVD)2024-11-12 21:35

Financial Performance - Net sales for Q3 2024 were 118.3million,downfrom118.3 million, down from 149.5 million in Q3 2023, with an adjusted figure of 130.7millionexcludingtheDacthalproductrecallimpact[2].−AdjustedEBITDAforQ32024was130.7 million excluding the Dacthal product recall impact[2]. - Adjusted EBITDA for Q3 2024 was 1.8 million compared to 11.4millioninQ32023,maintainingfull−year2024guidanceof11.4 million in Q3 2023, maintaining full-year 2024 guidance of 40 million to 50million[2][4].−Thecompanyreportedanetlosspershareof50 million[2][4]. - The company reported a net loss per share of (0.92) for Q3 2024, compared to a loss of (0.01)inQ32023[2][4].−Totalnetsalesdecreasedby21(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 149,516,000inthesameperiodof2023[11].−Totalgrossprofitdeclinedby60149,516,000 in the same period of 2023[11]. - Total gross profit declined by 60% to 17,293,000, down from 43,084,000year−over−year[11].−ThenetlossfortheninemonthsendedSeptember30,2024,was43,084,000 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 540,000inthesameperiodof2023[14].−AdjustedEBITDAforthethreemonthsendedSeptember30,2024,was540,000 in the same period of 2023[14]. - Adjusted EBITDA for the three months ended September 30, 2024, was 1,800,000, significantly lower than 11,364,000intheprioryear[15].−Thecompanyexperiencedadecreaseincashflowsfromoperatingactivities,withanetcashusedof11,364,000 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,whileU.S.non−cropsalesincreasedby1735,533,000, while U.S. non-crop sales increased by 17% to 22,454,000[11]. - International sales decreased by 4% to 60,320,000,comparedto60,320,000, compared to 62,517,000 in the same quarter of 2023[11]. - The impact of the Dacthal recall resulted in a reduction of 12,403,000intotalnetsales[12].DebtandAssets−Thecompanyreduceditslong−termdebtby12,403,000 in total net sales[12]. Debt and Assets - The company reduced its long-term debt by 32.5 million, bringing it down to 178.7millionfrom178.7 million from 211.2 million in the previous quarter[2][4]. - Total assets as of September 30, 2024, were 759.5million,downfrom759.5 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,comparedto11,880,000, compared to 11,529,000 at the end of the previous period[14]. - The company reported a significant increase in accounts payable by 6,141,000duringtheninemonthsendedSeptember30,2024[14].TransformationandStrategy−Transformation−relatedbenefitsarenowexpectedtoreach6,141,000 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 15million[3].−Thecompanyincurreda15 million[3]. - The company incurred a 8.1 million transformation charge and a 16.2millionchargerelatedtotheDacthalproductrecallduringthequarter[4].−Thecompanyaimstodecreaseinventoryto3416.2 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].