American Vanguard (AVD) - 2023 Q4 - Annual Results

Financial Performance - Net sales for Q4 2023 were $172.2 million, a 7.9% increase from $159.5 million in Q4 2022[1] - Net income for Q4 2023 was $7.0 million, compared to $3.9 million in Q4 2022, representing an increase of 79.5%[1] - Adjusted EBITDA for Q4 2023 was $21 million, up from $12 million in Q4 2022, marking a 75% increase[1] - Full year net sales for 2023 were $579 million, down 5.1% from $610 million in 2022[1] - Full year net income for 2023 was $7.5 million, a significant decrease of 72.6% from $27.4 million in 2022[1] - Adjusted EBITDA for 2023 was $54,106 million, down from $73,099 million in 2022, reflecting a decline of 26%[15] Future Projections - The company is targeting 8% to 12% revenue growth for 2024, with adjusted EBITDA expected to range from $70 million to $80 million[1] - The company aims to achieve an additional $15 million or more in adjusted EBITDA through its transformation initiative by 2026[1] Asset and Liability Management - Total current assets increased to $432.0 million in 2023 from $388.6 million in 2022[7] - Long-term debt rose significantly to $138.9 million in 2023 from $51.5 million in 2022[7] - Cash and cash equivalents at the end of 2023 were $11,416 million, down from $20,328 million at the end of 2022[13] Cash Flow and Expenses - Cash flows from operating activities resulted in a net cash used of $58,748 million, compared to a net cash provided of $57,105 million in 2022[13] - Capital expenditures for 2023 were $11,878 million, slightly lower than $13,261 million in 2022[13] - The company reported a provision for bad debts of $1,935 million, an increase from $1,171 million in 2022[13] - Stock-based compensation expense increased to $6,138 million in 2023 from $5,684 million in 2022[15] - Interest expense for 2023 was $12,639 million, significantly higher than $3,954 million in 2022[15] - The net cash provided by financing activities was $66,737 million, a recovery from a net cash used of $38,260 million in 2022[13] Inventory Management - The company experienced a decrease in inventories of $27,832 million, compared to a decrease of $29,560 million in 2022[13] Profitability and Margins - Gross profit margins are expected to remain strong, with operating expenses being tightly managed[1]