Financial Data and Key Metrics Changes - The company reported net sales growth from $128 million to $129 million, an increase of 1% compared to the previous year [5] - Adjusted EBITDA nearly doubled to $11 million from $6 million last year, attributed to cost-cutting initiatives and improved sales [5] - Gross profit margin improved to 31% from 29% in the previous year and 26% in the first quarter of 2025, marking the highest margin in the last five quarters [7][12] - Operating expenses as a percentage of sales decreased to 27% from 31% last year [8] Business Line Data and Key Metrics Changes - Growth was observed in both US crop and non-crop segments, while international sales remained stable compared to the previous year [5] - The green solutions business showed growth, although it was softer than expected due to channel uncertainty from tariffs [6] Market Data and Key Metrics Changes - The agricultural economy appears to be improving, with the worst of the destocking likely having run its course [10][18] - The recently passed budget bill is expected to provide $66 billion in subsidies to growers over the next ten years, which should benefit the agricultural sector [10] Company Strategy and Development Direction - The company is focused on a business transformation aimed at achieving a long-term EBITDA margin goal of 15% [7][19] - There is a strong emphasis on operational efficiency, cost reduction, and improving procurement processes [8][12] - The company is exploring opportunities presented by tariffs, which may create advantages for US-based manufacturers [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 EBITDA target of $40 million to $44 million and revenue target of $535 million to $545 million [5] - The company anticipates double-digit growth from its green solutions segment in 2025, with expectations for improved sales in Central and South America [6] - Management acknowledged that while initial improvements have been made, there is still much work to be done in the transformation process [6][19] Other Important Information - The company reduced its debt from $211 million to $189 million year-over-year, indicating an improvement in the cash cycle [15] - The company plans to use the majority of its free cash flow to pay down debt [16] Q&A Session Summary Question: Credit facility extension expectations - Management is having productive discussions with lenders regarding the extension of the credit facility, but specific details cannot be shared [22][23] Question: Procurement approach and investment - The procurement improvements are a combination of new team members and digital transformation initiatives, leading to better demand and production planning [25][27] Question: Order flow and manufacturing footprint - The company is well-positioned to handle current demand with smaller, more timely orders, aligning operations with the agricultural cycle [28][30] Question: Sustainability of margins - Management aims to maintain and improve gross profit margins, acknowledging potential fluctuations due to market dynamics [41][42] Question: Inventory management targets - The company is striving for inventory turns closer to two, with a target projected for the end of 2026 [44][45] Question: Strategic initiatives for SIMPAS technology - Ongoing discussions are taking place regarding the strategic placement of SIMPAS technology, but no substantial progress has been made yet [46]