American Vanguard (AVD) - 2025 Q1 - Quarterly Report

Financial Performance - The company's net sales for Q1 2025 decreased by 14% to $115,800, down from$135,143 in Q1 2024[69] - Gross profit for Q1 2025 was $30,191, a decline of 29$42,418 in Q1 2024, resulting in a gross margin of 26%[72] - The company recorded a net loss of $8,462, or$0.30 per share, compared to a net income of $1,552, or$0.06 per share, in the prior year[78] - Total cost of sales decreased by 8% to $85,609 in Q1 2025, primarily driven by a decline in sales volume[69] - Net loss for Q1 2025 was$8,462 or $0.30 per share, compared to net income of$1,552 or $0.06 per share in Q1 2024[78] Sales and Revenue - Domestic crop sales fell by 15$57,176, while international sales also decreased by 14% to $43,023[69] - In Q1 2025, the Company reported net sales of$115,800, a decrease of 14% compared to $135,143 in Q1 2024[69] Expenses - Operating expenses decreased by 5$34,501, with selling expenses down 17% to $10,723[73][76] - Interest expense remained flat at$3,765, with an average debt of $183,918 and an effective interest rate of 8.2$387, significantly lower than $1,484 in Q1 2024, due to losses incurred in the U.S.[68][75] - Selling expenses decreased by$2,158 in Q1 2025, driven by reductions in domestic wages, travel expenses, and advertising costs[76] Cash Flow - Cash used in operating activities was $20,576, compared to$36,107 in the same period last year[79] - Cash used for investing activities was $446 in Q1 2025, significantly lower than$3,567 in Q1 2024, with $431 spent on fixed asset acquisitions[82] - Financing activities provided$19,801 in Q1 2025, down from $41,382 in the same period last year, with net borrowings under the Credit Agreement amounting to$20,167[83] Debt and Indebtedness - Long-term indebtedness increased to $166,272 as of March 31, 2025, from$145,800 at the end of 2024[84] - Average overall debt increased to $183,918 in Q1 2025 from$176,344 in Q1 2024, with interest expense remaining flat at $3,765 compared to$3,693[74] - The Company had the capacity to increase borrowings by up to $53,717 as of March 31, 2025, compared to$28,623 available as of December 31, 2024[85] Transformation and Strategy - The company plans to focus on selling more profitable products internationally, leading to improved average pricing across categories[71] - Transformation costs related to digital and structural initiatives amounted to $2,191, up from$1,152 in the prior period[76] - Transformation costs related to digital and structural transformation amounted to $2,191 in Q1 2025, up from$1,152 in the prior period[76] Working Capital - Customer prepayments decreased by $28,215 in Q1 2025, compared to a decrease of$37,037 in the same period of 2024[80] - Net working capital increased by $18,240 in Q1 2025, compared to an increase of$49,996 in the same period of the prior year[80]