American Vanguard Reports Q2 2024 Results
American Vanguard (NYSE: AVD) reported Q2 2024 financial results, showing a slight decline in net sales to $128.2 million from $132.8 million in Q2 2023. The company faced profitability challenges, with earnings per share dropping to $(0.42) from $(0.04) year-over-year. Despite adverse market conditions, AVD saw double-digit increases in domestic non-crop business and Green Solutions products sales.
To address liquidity concerns, AVD entered an amended credit facility on August 8, 2024, relaxing EBITDA-based covenants and increasing borrowing capacity. The company has also implemented cost-cutting measures, including a 4% workforce reduction and initiatives to manage inventory and expenses. AVD revised its full-year 2024 targets, lowering adjusted EBITDA expectations to $40-$50 million and projecting net sales to be down 2% to flat at $565-$580 million.
American Vanguard (NYSE: AVD) ha riportato i risultati finanziari del secondo trimestre 2024, mostrando un leggero calo delle vendite nette a 128,2 milioni di dollari, rispetto ai 132,8 milioni di dollari del secondo trimestre 2023. L'azienda ha affrontato sfide di redditività, con gli utili per azione che sono scesi a $(0,42) rispetto a $(0,04) dell'anno precedente. Nonostante le difficili condizioni di mercato, AVD ha registrato aumenti a due cifre nelle vendite del business domestico non agricolo e dei prodotti Green Solutions.
Per affrontare le preoccupazioni legate alla liquidità, AVD ha stipulato un contratto di credito modificato l'8 agosto 2024, allentando i vincoli basati sull'EBITDA e aumentando la capacità di indebitamento. L'azienda ha anche implementato misure di riduzione dei costi, inclusa una riduzione della forza lavoro del 4% e iniziative per gestire l'inventario e le spese. AVD ha rivisto i suoi obiettivi per l'intero anno 2024, abbassando le aspettative di EBITDA rettificato a 40-50 milioni di dollari e prevedendo vendite nette in calo del 2% o stabili a 565-580 milioni di dollari.
American Vanguard (NYSE: AVD) reportó los resultados financieros del segundo trimestre de 2024, mostrando una ligera disminución en las ventas netas a 128,2 millones de dólares desde 132,8 millones de dólares en el segundo trimestre de 2023. La compañía enfrentó desafíos de rentabilidad, con las ganancias por acción cayendo a $(0,42) desde $(0,04) en comparación con el año anterior. A pesar de las condiciones adversas del mercado, AVD vio aumentos de dos dígitos en las ventas de su negocio no agrícola nacional y productos de Soluciones Verdes.
Para abordar las preocupaciones de liquidez, AVD firmó una modificación de la línea de crédito el 8 de agosto de 2024, relajando los convenios basados en EBITDA y aumentando la capacidad de endeudamiento. La compañía también ha implementado medidas de reducción de costos, incluida una reducción del 4% en la fuerza laboral y iniciativas para gestionar el inventario y los gastos. AVD ha revisado sus objetivos anuales para 2024, bajando las expectativas de EBITDA ajustado a entre 40 y 50 millones de dólares y proyectando que las ventas netas caigan un 2% o se mantengan estables entre 565 y 580 millones de dólares.
아메리칸 뱅가드(NYSE: AVD)는 2024년 2분기 재무 결과를 발표하며 2023년 2분기 1억 3,280만 달러에서 1억 2,820만 달러로 순매출이 소폭 감소했다고 보고했습니다. 회사는 수익성 문제에 직면했으며, 주당 순이익이 전년 대비 $(0.42)에서 $(0.04)로 감소했습니다. 불리한 시장 상황에도 불구하고, AVD는 국내 비농업 사업 및 그린 솔루션 제품 판매에서 두 자릿수 증가를 보였습니다.
유동성 문제를 해결하기 위해, AVD는 2024년 8월 8일에 수정된 신용 시설을 체결하여 EBITDA 기반의 계약 조건을 완화하고 차입 한도를 증가시켰습니다. 또한 회사는 4% 인력 감축을 포함한 비용 절감 조치를 시행하고 재고 및 비용 관리 이니셔티브를 진행했습니다. AVD는 2024년 전체 목표를 수정하여 조정된 EBITDA 기대치를 4천만에서 5천만 달러로 낮추고, 순매출이 5억 6,500만에서 5억 8,000만 달러로 2% 감소하거나 보합세일 것으로 예상하고 있습니다.
American Vanguard (NYSE: AVD) a annoncé les résultats financiers du deuxième trimestre 2024, montrant une légère baisse des ventes nettes à 128,2 millions de dollars contre 132,8 millions de dollars au deuxième trimestre 2023. L'entreprise a rencontré des défis de rentabilité, avec un bénéfice par action qui est tombé à $(0,42) contre $(0,04) d'une année sur l'autre. Malgré des conditions de marché défavorables, AVD a enregistré des augmentations à deux chiffres dans les ventes de son activité domestique non agricole et des produits Green Solutions.
Pour faire face aux préoccupations de liquidité, AVD a signé un contrat de crédit modifié le 8 août 2024, assouplissant les covenants basés sur l'EBITDA et augmentant la capacité d'emprunt. L'entreprise a également mis en œuvre des mesures de réduction des coûts, y compris une réduction de la main-d'œuvre de 4% et des initiatives pour gérer les stocks et les dépenses. AVD a révisé ses objectifs pour l'année 2024, abaissant les attentes d'EBITDA ajusté à 40-50 millions de dollars et prévoyant que les ventes nettes baisseraient de 2 % ou resteraient stables entre 565 et 580 millions de dollars.
American Vanguard (NYSE: AVD) berichtete über die finanziellen Ergebnisse des zweiten Quartals 2024 und stellte einen leichten Rückgang der Nettoumsätze auf 128,2 Millionen US-Dollar im Vergleich zu 132,8 Millionen US-Dollar im zweiten Quartal 2023 fest. Das Unternehmen sah sich Rentabilitätsproblemen gegenüber, da der Gewinn pro Aktie auf $(0,42) von $(0,04) im Vorjahr fiel. Trotz ungünstiger Marktbedingungen verzeichnete AVD Zuwächse im zweistelligen Bereich im inländischen Non-Crop-Geschäft und im Verkauf von Green Solutions-Produkten.
Um Bedenken hinsichtlich der Liquidität anzugehen, trat AVD am 8. August 2024 in eine geänderte Kreditvereinbarung ein, die die auf EBITDA basierenden Verpflichtungen lockerte und die Kreditaufnahme erleichterte. Das Unternehmen führte auch Kostensenkungsmaßnahmen ein, darunter eine Reduzierung der Belegschaft um 4% sowie Initiativen zur Verwaltung von Beständen und Ausgaben. AVD passte seine Jahresziele für 2024 an und senkte die Erwartungen an das bereinigte EBITDA auf 40 bis 50 Millionen US-Dollar, während die Nettoumsätze voraussichtlich um 2% zurückgehen oder bei 565 bis 580 Millionen US-Dollar stagnieren werden.
- Double-digit sales increase in domestic non-crop business and Green Solutions products
- Amended credit facility to enhance liquidity and improve borrowing capacity
- Implementation of cost-cutting measures including 4% workforce reduction
- Initiatives to maximize cash and manage inventory downward
- Q2 2024 net sales declined to $128.2 million from $132.8 million in Q2 2023
- Earnings per share dropped to $(0.42) from $(0.04) year-over-year
- Lowered full-year 2024 adjusted EBITDA target to $40-$50 million from previous $60-$70 million
- Revised net sales forecast to be down 2% to flat, compared to previous 6% to 9% growth estimate
- EPA issued emergency suspension of Dacthal product, preventing its sale, distribution, and use
Insights
American Vanguard's Q2 2024 results reveal significant challenges. Net sales decreased to
The new credit agreement, while providing short-term liquidity, comes with stricter conditions including higher interest rates and limitations on share repurchases, dividends and acquisitions. This suggests lenders perceive increased risk. The
The agricultural market conditions appear challenging, impacting American Vanguard's performance. While domestic non-crop and Green Solutions products showed growth, overall sales declined. The EPA's emergency suspension of Dacthal, although anticipated, removes a product from the company's portfolio. This regulatory action, combined with the broader market headwinds, suggests a difficult operating environment for agrochemical companies.
The company's revised full-year targets - adjusted EBITDA of
American Vanguard's restructuring efforts are comprehensive but face significant challenges. The formation of an Office of the CEO and engagement of consultants like Kearney indicate a serious commitment to transformation. Key initiatives include workforce reduction, cost-cutting and operational efficiency improvements across procurement, manufacturing and commercial strategies.
The company's focus on liquidity enhancement through inventory management and cash cycle control is critical. However, the need for covenant relaxation in the credit agreement suggests financial strain. The pursuit of a partner for SIMPAS commercialization represents a pragmatic approach to capital allocation. The target of
Office of the CEO Kickstarts Liquidity and Transformation Initiatives
New Credit Agreement Bolsters Working Capital Needs
Second Quarter 2024 Financial Highlights – versus Second Quarter 2023:
-
Net sales of
v.$128.2 million $132.8 million -
Adjusted EBITDA1 of
v.$6.2 million $10.7 million -
Earnings per share of
v.$(0.42) $(0.04)
First Half of 2024 Financial Highlights – versus First Half of 2023:
-
Net sales of
v.$263.4 million $257.7 million -
Adjusted EBITDA of
v.$21.7 million $22.2 million -
Earnings per diluted share of
v.$(0.36) $0.03
“In the face of adverse market conditions, quarterly net sales were slightly below, and first half net sales were slightly above, those of the comparable periods last year. We did record double-digit increases in net sales of our domestic non-crop business and Green Solutions products, driven by strong demand in
Mr. Donnelly continued, “We have taken immediate steps to enhance liquidity and improve our cost structure. On August 8, 2024, the company entered into an amended credit facility with our senior lenders to relax our EBITDA-based covenant through Q3 of 2025, while significantly upsizing the amount of non-recurring charges that we can exclude from our adjusted EBITDA calculation. These measures will improve our borrowing capacity in light of trailing four-quarter performance. The amended agreement includes an increase in interest rates at the highest leverage ratios and adds a requirement for lender consent in connection with share repurchases, dividends and acquisitions. We thank the lender group for moving quickly and for their continued support.”
Mr. Donnelly continued, “In addition, after a detailed review, we have recently trimmed our workforce by about
Mr. Donnelly added, “With respect to recent developments affecting our product, Dacthal, as reported widely by the press earlier in the week, the EPA has issued an emergency suspension of that product which prevents its sale, distribution and use. As you may recall, we had voluntarily suspended sales of Dacthal last April and submitted a mitigated label in an effort to meet the agency’s concerns. In light of our cessation of sales at that time, we removed Dacthal sales from our 2024 forecast assumptions. We are, of course, working in good faith with both EPA and our customers to ensure compliance with the suspension order and will have more to report on this in the near term.”
Mark Basset, board member on special assignment with the Company’s Office of the CEO, stated, “We’ve done a lot of hard work laying the foundation for a successful business transformation that touches every aspect of the company from a new organizational design, to new commercial strategies, to more cost effective operations. Now is the time to begin to implement those plans with sense of urgency and purpose.”
Dr. Basset continued, “Accordingly, in the interest of allocating capital prudently, we are seeking a partner within the precision application space to take over the broader commercialization and funding of SIMPAS. In addition, working with our consultant Kearney, we are pursuing multiple paths toward improving operating leverage, including material procurement, manufacturing efficiency, SKU rationalization, customer and pricing strategies and structural reorganization, which, we believe, will meaningfully improve our cost structure, in an effort to push our adjusted EBITDA margins to
Mr. Donnelly concluded, “In light of the current state of the market and forecasted demand, which we expect to be stable, we are lowering our full year 2024 targets to adjusted EBITDA of
Conference Call
Timothy Donnelly, Acting CEO, Mark Bassett, Board Member and David T. Johnson, VP & CFO, will conduct a conference call focusing on the financial results and strategic themes at 4:30 pm ET / 1:30 pm PT on Thursday, August 8, 2024. Interested parties may participate in the call by dialing 201-493-6744. Please call in 10 minutes before the scheduled start time and ask for the American Vanguard call. The conference call will also be webcast live via the News and Media section of the Company’s web site at www.american-vanguard.com. To listen to the live webcast, go to the web site at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, the conference call will be archived on the Company’s web site.
About American Vanguard
American Vanguard Corporation is a diversified specialty and agricultural products company that develops and markets products for crop protection and management, turf and ornamentals management and public and animal health. Over the past 20 years, through product and business acquisitions, the Company has expanded its operations into 21 countries and now has over 1,000 product registrations in 56 nations worldwide. Its strategy rests on three growth initiatives – i) Core Business (through innovation of conventional products) and ii) Green Solutions (with over 120 biorational products – including fertilizers, microbials, nutritionals and non-conventional products). American Vanguard is included on the Russell 2000® and Russell 3000® Indexes. To learn more about American Vanguard, please reference the Company’s web site at www.american-vanguard.com.
The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking statements are estimates by the Company’s management and are subject to various risks and uncertainties that may cause results to differ from management’s current expectations. Such factors include weather conditions, changes in regulatory policy and other risks as detailed from time-to-time in the Company’s SEC reports and filings. All forward-looking statements, if any, in this release represent the Company’s judgment as of the date of this release.
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(In thousands, except share data) |
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(Unaudited) |
||||||||
ASSETS |
|
June 30,
|
|
|
December 31,
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash |
|
$ |
17,949 |
|
|
$ |
11,416 |
|
Receivables: |
|
|
|
|
|
|
||
Trade, net of allowance for credit losses of |
|
|
192,081 |
|
|
|
182,613 |
|
Other |
|
|
6,287 |
|
|
|
8,356 |
|
Total receivables, net |
|
|
198,368 |
|
|
|
190,969 |
|
Inventories |
|
|
244,935 |
|
|
|
219,551 |
|
Prepaid expenses |
|
|
9,146 |
|
|
|
6,261 |
|
Income taxes receivable |
|
|
7,183 |
|
|
|
3,824 |
|
Total current assets |
|
|
477,581 |
|
|
|
432,021 |
|
Property, plant and equipment, net |
|
|
74,652 |
|
|
|
74,560 |
|
Operating lease right-of-use assets, net |
|
|
22,635 |
|
|
|
22,417 |
|
Intangible assets, net of amortization |
|
|
166,958 |
|
|
|
172,508 |
|
Goodwill |
|
|
48,878 |
|
|
|
51,199 |
|
Deferred income tax assets |
|
|
3,367 |
|
|
|
2,849 |
|
Other assets |
|
|
13,384 |
|
|
|
11,994 |
|
Total assets |
|
$ |
807,455 |
|
|
$ |
767,548 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
93,912 |
|
|
$ |
68,833 |
|
Customer prepayments |
|
|
12,090 |
|
|
|
65,560 |
|
Accrued program costs |
|
|
86,094 |
|
|
|
68,076 |
|
Accrued expenses and other payables |
|
|
14,444 |
|
|
|
16,354 |
|
Operating lease liabilities, current |
|
|
6,612 |
|
|
|
6,081 |
|
Income taxes payable |
|
|
1,776 |
|
|
|
5,591 |
|
Total current liabilities |
|
|
214,928 |
|
|
|
230,495 |
|
Long-term debt |
|
|
211,254 |
|
|
|
138,900 |
|
Operating lease liabilities, long term |
|
|
16,735 |
|
|
|
17,113 |
|
Deferred income tax liabilities |
|
|
8,670 |
|
|
|
7,892 |
|
Other liabilities |
|
|
2,643 |
|
|
|
3,138 |
|
Total liabilities |
|
|
454,230 |
|
|
|
397,538 |
|
Commitments and contingent liabilities |
|
|
|
|
|
|
||
Stockholders' equity: |
|
|
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
3,465 |
|
|
|
3,467 |
|
Additional paid-in capital |
|
|
113,165 |
|
|
|
110,810 |
|
Accumulated other comprehensive loss |
|
|
(13,256 |
) |
|
|
(5,963 |
) |
Retained earnings |
|
|
321,052 |
|
|
|
332,897 |
|
Less treasury stock at cost, 5,915,182 shares at June 30, 2024 and December 31, 2023 |
|
|
(71,201 |
) |
|
|
(71,201 |
) |
Total stockholders’ equity |
|
|
353,225 |
|
|
|
370,010 |
|
Total liabilities and stockholders’ equity |
|
$ |
807,455 |
|
|
$ |
767,548 |
|
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(In thousands, except per share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
For the Three Months
|
|
|
For the Six Months
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
128,209 |
|
|
$ |
132,790 |
|
|
$ |
263,352 |
|
|
$ |
257,674 |
|
Cost of sales |
|
|
(90,446 |
) |
|
|
(89,881 |
) |
|
|
(183,171 |
) |
|
|
(176,230 |
) |
Gross profit |
|
|
37,763 |
|
|
|
42,909 |
|
|
|
80,181 |
|
|
|
81,444 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
|
(31,051 |
) |
|
|
(29,742 |
) |
|
|
(60,520 |
) |
|
|
(56,140 |
) |
Research, product development and regulatory |
|
|
(8,599 |
) |
|
|
(9,413 |
) |
|
|
(14,305 |
) |
|
|
(18,283 |
) |
Transformation |
|
|
(7,345 |
) |
|
|
— |
|
|
|
(8,497 |
) |
|
|
— |
|
Operating (loss) income |
|
|
(9,232 |
) |
|
|
3,754 |
|
|
|
(3,141 |
) |
|
|
7,021 |
|
Change in fair value of equity investment |
|
|
(125 |
) |
|
|
(55 |
) |
|
|
513 |
|
|
|
(77 |
) |
Interest expense, net |
|
|
(3,917 |
) |
|
|
(3,211 |
) |
|
|
(7,610 |
) |
|
|
(4,898 |
) |
(Loss) income before provision for income taxes |
|
|
(13,274 |
) |
|
|
488 |
|
|
|
(10,238 |
) |
|
|
2,046 |
|
Income tax benefit (expense) |
|
|
1,553 |
|
|
|
(1,541 |
) |
|
|
69 |
|
|
|
(1,181 |
) |
Net (loss) income |
|
$ |
(11,721 |
) |
|
$ |
(1,053 |
) |
|
$ |
(10,169 |
) |
|
$ |
865 |
|
Net (loss) income per common share—basic |
|
$ |
(0.42 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.36 |
) |
|
$ |
0.03 |
|
Net (loss) income per common share—assuming dilution |
|
$ |
(0.42 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.36 |
) |
|
$ |
0.03 |
|
Weighted average shares outstanding—basic |
|
|
28,024 |
|
|
|
28,428 |
|
|
|
27,934 |
|
|
|
28,397 |
|
Weighted average shares outstanding—assuming dilution |
|
|
28,024 |
|
|
|
28,428 |
|
|
|
27,934 |
|
|
|
28,985 |
|
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES |
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ANALYSIS OF SALES |
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(In thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
For the three months
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
52,289 |
|
|
$ |
56,212 |
|
|
$ |
(3,923 |
) |
|
|
-7 |
% |
|
|
|
19,011 |
|
|
|
16,878 |
|
|
|
2,133 |
|
|
|
13 |
% |
|
|
|
71,300 |
|
|
|
73,090 |
|
|
|
(1,790 |
) |
|
|
-2 |
% |
International |
|
|
56,909 |
|
|
|
59,700 |
|
|
|
(2,791 |
) |
|
|
-5 |
% |
Total net sales |
|
$ |
128,209 |
|
|
$ |
132,790 |
|
|
$ |
(4,581 |
) |
|
|
-3 |
% |
Total cost of sales |
|
$ |
(90,446 |
) |
|
$ |
(89,881 |
) |
|
$ |
(565 |
) |
|
|
1 |
% |
Total gross profit |
|
$ |
37,763 |
|
|
$ |
42,909 |
|
|
$ |
(5,146 |
) |
|
|
-12 |
% |
Gross margin |
|
|
29 |
% |
|
|
32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
119,542 |
|
|
$ |
118,105 |
|
|
$ |
1,437 |
|
|
|
1 |
% |
|
|
|
36,787 |
|
|
|
30,759 |
|
|
|
6,028 |
|
|
|
20 |
% |
|
|
|
156,329 |
|
|
|
148,864 |
|
|
|
7,465 |
|
|
|
5 |
% |
International |
|
|
107,023 |
|
|
|
108,810 |
|
|
|
(1,787 |
) |
|
|
-2 |
% |
Total net sales |
|
$ |
263,352 |
|
|
$ |
257,674 |
|
|
$ |
5,678 |
|
|
|
2 |
% |
Total cost of sales |
|
$ |
(183,171 |
) |
|
$ |
(176,230 |
) |
|
$ |
(6,941 |
) |
|
|
4 |
% |
Total gross profit |
|
$ |
80,181 |
|
|
$ |
81,444 |
|
|
$ |
(1,263 |
) |
|
|
-2 |
% |
Gross margin |
|
|
30 |
% |
|
|
32 |
% |
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
|
For the Six Months
|
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net (loss) income |
|
$ |
(10,169 |
) |
|
$ |
865 |
|
Adjustments to reconcile net (loss) income to net cash used in operating
|
|
|
|
|
|
|
||
Depreciation of property, plant and equipment |
|
|
4,365 |
|
|
|
4,322 |
|
Amortization of intangibles assets |
|
|
6,539 |
|
|
|
6,707 |
|
Amortization of other long-term assets |
|
|
194 |
|
|
|
1,117 |
|
Provision for bad debts |
|
|
883 |
|
|
|
902 |
|
Stock-based compensation |
|
|
2,752 |
|
|
|
2,541 |
|
Change in deferred income taxes |
|
|
(276 |
) |
|
|
(1,015 |
) |
Changes in liabilities for uncertain tax positions or unrecognized tax benefits |
|
|
71 |
|
|
|
419 |
|
Change in equity investment fair value |
|
|
(513 |
) |
|
|
77 |
|
Other |
|
|
213 |
|
|
|
117 |
|
Foreign currency transaction gains |
|
|
(127 |
) |
|
|
(382 |
) |
Changes in assets and liabilities associated with operations: |
|
|
|
|
|
|
||
Decrease (increase) in net receivables |
|
|
(11,962 |
) |
|
|
6,092 |
|
Increase in inventories |
|
|
(27,770 |
) |
|
|
(50,900 |
) |
Increase in prepaid expenses and other assets |
|
|
(3,730 |
) |
|
|
(1,749 |
) |
Change in income tax receivable/payable, net |
|
|
(7,129 |
) |
|
|
(3,510 |
) |
Increase (decrease) in net operating lease liability |
|
|
(66 |
) |
|
|
132 |
|
Increase in accounts payable |
|
|
27,197 |
|
|
|
9,105 |
|
Decrease in customer prepayments |
|
|
(53,468 |
) |
|
|
(83,225 |
) |
Increase in accrued program costs |
|
|
18,209 |
|
|
|
19,607 |
|
Decrease in other payables and accrued expenses |
|
|
(1,665 |
) |
|
|
(7,824 |
) |
Net cash used in operating activities |
|
|
(56,452 |
) |
|
|
(96,602 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(4,944 |
) |
|
|
(6,498 |
) |
Proceeds from disposal of property, plant and equipment |
|
|
75 |
|
|
|
44 |
|
Intangible assets |
|
|
(1,529 |
) |
|
|
(718 |
) |
Net cash used in investing activities |
|
|
(6,398 |
) |
|
|
(7,172 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Payments under line of credit agreement |
|
|
(64,005 |
) |
|
|
(54,050 |
) |
Borrowings under line of credit agreement |
|
|
136,359 |
|
|
|
162,500 |
|
Net receipt from the issuance of common stock under ESPP |
|
|
430 |
|
|
|
480 |
|
Net receipt from the exercise of stock options |
|
|
— |
|
|
|
32 |
|
Net payment for tax withholding on stock-based compensation awards |
|
|
(829 |
) |
|
|
(1,948 |
) |
Repurchase of common stock |
|
|
— |
|
|
|
(7,226 |
) |
Payment of cash dividends |
|
|
(1,670 |
) |
|
|
(1,702 |
) |
Net cash provided by financing activities |
|
|
70,285 |
|
|
|
98,086 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
7,435 |
|
|
|
(5,688 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(902 |
) |
|
|
(8 |
) |
Cash and cash equivalents at beginning of period |
|
|
11,416 |
|
|
|
20,328 |
|
Cash and cash equivalents at end of period |
|
$ |
17,949 |
|
|
$ |
14,632 |
|
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES |
|||||||||||||||
UNAUDITED RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
Three Months
|
|
|
Six Months
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
||||
Net (loss) income |
|
$ |
(11,721 |
) |
|
$ |
(1,053 |
) |
|
$ |
(10,169 |
) |
|
$ |
865 |
Income tax (benefit) expense |
|
|
(1,553 |
) |
|
|
1,541 |
|
|
|
(69 |
) |
|
|
1,181 |
Interest expense, net |
|
|
3,917 |
|
|
|
3,211 |
|
|
|
7,610 |
|
|
|
4,898 |
Depreciation and amortization |
|
|
5,463 |
|
|
|
5,889 |
|
|
|
11,093 |
|
|
|
12,146 |
Stock compensation |
|
|
748 |
|
|
|
1,067 |
|
|
|
2,752 |
|
|
|
2,541 |
Transformation costs & legal reserves |
|
|
9,310 |
|
|
|
— |
|
|
|
10,462 |
|
|
|
— |
Proxy contest activities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
541 |
Adjusted EBITDA2 |
|
$ |
6,164 |
|
|
$ |
10,655 |
|
|
$ |
21,679 |
|
|
$ |
22,172 |
_____________________________ |
1 Adjusted earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA is not a financial measure calculated and presented in accordance with |
|
2 Adjusted earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA is not a financial measure calculated and presented in accordance with |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808015676/en/
Company:
American Vanguard Corporation
Anthony Young, Director of Investor Relations
(949) 260-1200
anthonyy@amvac-chemical.com
Investor Representative:
The Equity Group Inc.
www.theequitygroup.com
Lena Cati
Lcati@equityny.com
Source: American Vanguard Corporation
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