American Vanguard (AVD) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales decreased to $115.8 million, down 14% from $135.1 million in Q1 2024[3] - Adjusted EBITDA fell to $3.0 million, a decline of 81% compared to $15.5 million in the same quarter last year[3] - Net loss per share was $(0.30), compared to earnings of $0.06 per share in Q1 2024[3] - Gross profit declined to $30.2 million, down 29% from $42.4 million in Q1 2024, with a gross margin of 26%[14] - Net income for Q1 2025 was reported at $(8,462) million, a decrease from $1,552 million in Q1 2024[18] - Adjusted EBITDA for Q1 2025 was $2,973 million, down from $15,516 million in Q1 2024, indicating a significant decline[18] Operating Expenses and Costs - Operating expenses decreased by 5% on a GAAP basis and by 14% excluding transformation expenses and a non-recurring item[3] - Interest expense, net, increased to $3,765 million in Q1 2025 from $3,693 million in Q1 2024[18] - Depreciation and amortization expenses decreased to $4,749 million in Q1 2025 from $5,630 million in Q1 2024[18] - Stock compensation expenses decreased significantly to $559 million in Q1 2025 from $2,005 million in Q1 2024[18] - Transformation costs rose to $2,191 million in Q1 2025, compared to $1,152 million in Q1 2024, indicating increased investment in restructuring[18] Debt and Working Capital - Net working capital reduced by $85 million year-over-year, from $238 million to $153 million[4] - Total debt decreased from $187 million to $167 million year-over-year[4] Future Outlook - The company anticipates a stronger second half of 2025 due to improving customer order rates and operational improvements[2] - The agricultural sector is expected to recover, with management focusing on cost reduction initiatives if market conditions do not improve[2] - The company aims to simplify operations to enhance future margins and reaffirm its position in the agricultural solutions market[4] Tax and Other Provisions - Provision for income taxes in Q1 2025 was $387 million, compared to $1,484 million in Q1 2024[18] - Dacthal returns were reported at $(216) million in Q1 2025, with no comparable figure in Q1 2024[18]