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Mar. 17, 2025 Source: American Vanguard news release American Vanguard Company (NYSE:AVD), a diversified specialty and agricultural products company that develops, manufactures, and markets solutions for crop protection and nutrition, turf and ornamental management and commercial pest control, today reported preliminary, financial results for the fourth quarter and full year ended December 31, 2024. The results reported herein are preliminary. Final results will appear in the company's 10-K for the fiscal year ended December 31, 2024. Fiscal 2024 Full Year Preliminary Financial Highlights - versus Fiscal 2023 Full Year: *Net sales of approximately $550 million ($563 million when excluding Dacthal product recall impact) v. $579 million in 2023; *Adjusted EBITDA of approximately $42 million v. $53 million in 2023; *Approximately $118 million in non-recurring cash and non-cash charges in 2024 as management repositions the Company "While we are pleased to have achieved our 2024 EBITDA target, in my opinion this result is just the starting point for what is possible at this company." said Chief Executive Officer Douglas "Dak" Kaye III. "With an adjusted EBITDA margin of 7.5%, we would view this level of profitability as being about half of what our full cycle earnings power can be. On a percentage basis, we believe that we can achieve double digit EBITDA growth over each of the next 3 - 4 years." Mr. Kaye continued, "We took a number of decisions in the fourth quarter which resulted in asset impairment charges, these measures are designed to focus our resources on the products and services that our customers most value and need, and positions American Vanguard for long-term, profitable growth. As a result of these decisive actions, I am confident that 2025 will be better than 2024, but the improvement will be gradual, and the interest rate environment coupled with the uncertainty of potential tariffs will lead to farmers remaining cautious. "Taking into consideration these factors, for 2025, we have an adjusted EBITDA target range of $45 - $52 million and expect sales to fall in the range of $565 - $585 million. We expect capex of approximately $10 million for 2025, so free cash flow should show a meaningful improvement, which we will allocate towards the Debt reduction. As we continue to transform and update this business, we believe that future margins will improve, and further margin enhancement in 2026 and beyond is likely." David T. Johnson, Vice President, CFO and Treasurer, stated, "As we continue to complete work associated with the year-end audit, we are pleased to provide preliminary, unaudited financial information, including adjusted EBITDA within the target range of $40 - $50 million that we communicated to investors in the middle of the year. Furthermore, we more than achieved the goal to reduce inventory ending at approximately $178 million (including some impairment charges) which was down approximately $42 million in comparison to the closing position for 2023. "We ended the year with total debt of $156 million, down from $179 million last quarter and $211 million at mid-year 2024. Finally, we continued to right-size the business in the 4th quarter and have taken a total of approximately $118 million in non-recurring cash and non-cash charges in 2024 as we continue to strengthen our balance sheet and position American Vanguard for a return to growth in 2025 and put the company on a path towards higher EBITDA margins." Mr. Kaye concluded, ""We closed the year by continuing to execute on the important initiatives underway at the Company, making steady progress with our business transformation. In my short period so far with the Company, I have noticed a significant amount of complexity in the business, and I believe that simplifying many of the things we do will allow us to better understand what is important and be able to deliver against these high priority tasks. My message across the organization in this regard is straightforward - SIMPLIFY, PRIORITIZE and DELIVER." About American Vanguard Corporation American Vanguard Corporation (AVD) is a diversified specialty and agriculture 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 more than 1,000 product registrations in 56 nations, worldwide. To learn more about the Company, please reference 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. Tweet |
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