American Vanguard (US:AVD)2024-05-09 20:31Financial Performance - Net income for the three months ended March 31, 2024, was $1,552,000, a decrease of 19.1% compared to $1,918,000 for the same period in 2023[16] - Comprehensive loss income for the same period was $(12,000), significantly down from $4,464,000 in 2023, indicating a negative shift in overall financial performance[16] - Total net sales for the three months ended March 31, 2024, reached $135,143,000, representing an increase of 8.9% from $124,885,000 in the prior year[33] - U.S. crop sales increased to $67,257,000, up 8.1% from $61,876,000 in the same quarter of 2023[33] - U.S. non-crop sales rose to $17,768,000, a significant increase of 27.5% compared to $13,899,000 in the previous year[33] - The Company reported a net income of $1,552 (or $0.06 per share) for Q1 2024, down from $1,918 (or $0.07 per share) in Q1 2023[73] - Income tax expense for Q1 2024 was $1,484, compared to a tax benefit of $361 in Q1 2023, resulting in an effective tax rate of 48.9%[83] Assets and Liabilities - Total current assets increased to $446,945,000 as of March 31, 2024, up from $432,021,000 at the end of 2023, reflecting a growth of 3.4%[17] - Total assets rose to $781,625,000 as of March 31, 2024, compared to $767,548,000 at December 31, 2023, marking an increase of 1.8%[18] - Total liabilities increased to $410,042,000 as of March 31, 2024, up from $397,538,000 at the end of 2023, representing a rise of 3.8%[19] - Long-term debt increased to $187,017,000 as of March 31, 2024, compared to $138,900,000 at December 31, 2023, indicating a significant increase of 34.6%[19] - Total indebtedness, net of deferred loan fees, increased to $185,890,000 as of March 31, 2024, compared to $137,682,000 as of December 31, 2023[42] Cash Flow and Operating Activities - Net cash used in operating activities was $(42,424,000) for the three months ended March 31, 2024, compared to $(41,452,000) in the same period of 2023[25] - Cash and cash equivalents increased to $13,709,000 as of March 31, 2024, up from $11,416,000 at the end of 2023, reflecting a growth of 20.1%[17] - Financing activities provided $47,685 in Q1 2024, up from $43,777 in Q1 2023, with net borrowings under the Credit Agreement amounting to $48,117 compared to $44,700 in the prior year[90] Expenses and Costs - Operating expenses increased by 3% year-over-year, but decreased as a percentage of sales to 27% from 28%[72] - Interest expense rose due to increased average borrowings and higher working capital levels, impacting the Company's financial performance[73] - The company recognized depreciation expense of $2,170,000 for the three months ended March 31, 2024, slightly down from $2,179,000 in the previous year[35] - Stock-based compensation expense for the three months ended March 31, 2024, was $2,005,000, compared to $1,474,000 for the same period in 2023[48] Inventory and Sales - Inventories rose to $228,309,000 as of March 31, 2024, compared to $219,551,000 at December 31, 2023, an increase of 4.0%[17] - Gross profit increased by 10% to $42,418, maintaining a stable gross margin of 31%[76] - Cost of goods sold rose by 7% in line with sales growth, while gross margins remained constant at 31% compared to the same period in 2023[72] Compliance and Regulatory Matters - The Company is in compliance with the terms of the Credit Agreement as of March 31, 2024[46] - The Company voluntarily suspended sales of Dacthal pending review of a narrower label after concerns from USEPA regarding health effects[57] - The FASB issued ASU No. 2023-07 and ASU No. 2023-09, which will impact segment reporting and income tax disclosures, effective after December 15, 2023, and December 15, 2024, respectively[58][59] Shareholder Activities - The company declared cash dividends on common stock of $0.030 per share during the quarter[22] - The Company paid dividends of $834 in Q1 2024, slightly down from $851 in Q1 2023[90] - The Company repurchased 27,835 shares of common stock at an average price of $19.96 during Q1 2024, with a maximum of 557 shares remaining under the repurchase plan[67]