American Vanguard (AVD)2024-11-12 21:35Financial 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].