American Vanguard Reports Q1 2024 Results
Adjusted EBITDA up 35%, Operating Income up 87%
First Quarter 2024 Financial Highlights – versus First Quarter 2023:
-
Net sales of
$135 million vs.$125 million -
Adjusted EBITDA1 of
$15.5 million vs.$11.5 million -
Operating Income of
$6.1 million vs.$3.3 million -
Net income of
$1.6 million vs.$1.9 million -
Earnings per diluted share of
$0.06 vs.$0.07
He continued, “Further, it is pleasing to note that we experienced growth in all three businesses, US Crop, US Non-crop and International. Within US Crop, we recorded strong sales of granular soil insecticides (in light of a stable farm economy), herbicides (in part due to seasonal demand and favorable weather conditions) and cotton and peanut products (driven by increased planted acres for those crops). The destocking initiatives from last year have begun to subside to a degree; however, the distribution channel is still exercising conservatism in their procurement approach.”
Conference Call
About
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
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) |
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ASSETS |
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Current assets: |
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Cash |
|
$ |
13,709 |
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|
$ |
11,416 |
|
Receivables: |
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|
|
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Trade, net of allowance for credit losses of |
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187,197 |
|
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|
182,613 |
|
Other |
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|
7,395 |
|
|
|
8,356 |
|
Total receivables, net |
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|
194,592 |
|
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|
190,969 |
|
Inventories |
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|
228,309 |
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|
219,551 |
|
Prepaid expenses |
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|
7,446 |
|
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|
6,261 |
|
Income taxes receivable |
|
|
2,889 |
|
|
|
3,824 |
|
Total current assets |
|
|
446,945 |
|
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|
432,021 |
|
Property, plant and equipment, net |
|
|
75,909 |
|
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|
74,560 |
|
Operating lease right-of-use assets, net |
|
|
23,084 |
|
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|
22,417 |
|
Intangible assets, net of amortization |
|
|
168,723 |
|
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|
172,508 |
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|
|
|
50,469 |
|
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|
51,199 |
|
Deferred income tax assets |
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|
3,307 |
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|
2,849 |
|
Other assets |
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|
13,188 |
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|
11,994 |
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Total assets |
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$ |
781,625 |
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$ |
767,548 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
64,642 |
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$ |
68,833 |
|
Customer prepayments |
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|
28,520 |
|
|
|
65,560 |
|
Accrued program costs |
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|
74,343 |
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|
68,076 |
|
Accrued expenses and other payables |
|
|
15,927 |
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|
16,354 |
|
Operating lease liabilities, current |
|
|
6,358 |
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|
6,081 |
|
Income taxes payable |
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|
5,633 |
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|
5,591 |
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Total current liabilities |
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195,423 |
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|
230,495 |
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Long-term debt, net |
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187,017 |
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|
138,900 |
|
Operating lease liabilities, long term |
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|
17,407 |
|
|
|
17,113 |
|
Deferred income tax liabilities |
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|
7,157 |
|
|
|
7,892 |
|
Other liabilities |
|
|
3,038 |
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|
|
3,138 |
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Total liabilities |
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410,042 |
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397,538 |
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Commitments and contingent liabilities |
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Stockholders' equity: |
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Preferred stock, |
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— |
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— |
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Common stock, |
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3,475 |
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3,467 |
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Additional paid-in capital |
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113,223 |
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|
110,810 |
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Accumulated other comprehensive loss |
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(7,527 |
) |
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|
(5,963 |
) |
Retained earnings |
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|
333,613 |
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|
332,897 |
|
Less treasury stock at cost, 5,915,182 shares at |
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|
(71,201 |
) |
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|
(71,201 |
) |
Total stockholders’ equity |
|
|
371,583 |
|
|
|
370,010 |
|
Total liabilities and stockholders’ equity |
|
$ |
781,625 |
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|
$ |
767,548 |
|
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) |
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For the three months
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2024 |
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2023 |
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Net sales |
|
$ |
135,143 |
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$ |
124,885 |
|
Cost of sales |
|
|
(92,725 |
) |
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|
(86,348 |
) |
Gross profit |
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|
42,418 |
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|
38,537 |
|
Operating expenses |
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Selling, general and administrative |
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|
(30,621 |
) |
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(26,402 |
) |
Research, product development and regulatory |
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|
(5,706 |
) |
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|
(8,870 |
) |
Operating income |
|
|
6,091 |
|
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|
3,265 |
|
Change in fair value of an equity investment |
|
|
638 |
|
|
|
(22 |
) |
Interest expense, net |
|
|
(3,693 |
) |
|
|
(1,686 |
) |
Income before provision for income taxes |
|
|
3,036 |
|
|
|
1,557 |
|
Income tax (expense) benefit |
|
|
(1,484 |
) |
|
|
361 |
|
Net income |
|
$ |
1,552 |
|
|
$ |
1,918 |
|
Earnings per common share—basic |
|
$ |
0.06 |
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|
$ |
0.07 |
|
Earnings per common share—assuming dilution |
|
$ |
0.06 |
|
|
$ |
0.07 |
|
Weighted average shares outstanding—basic |
|
|
27,844 |
|
|
|
28,367 |
|
Weighted average shares outstanding—assuming dilution |
|
|
28,128 |
|
|
|
29,073 |
|
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES ANALYSIS OF SALES (Unaudited) |
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For the three months ended
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2024 |
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2023 |
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Change |
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% Change |
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Net sales: |
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$ |
67,257 |
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$ |
61,876 |
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|
$ |
5,381 |
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|
9 |
% |
|
|
|
17,768 |
|
|
|
13,899 |
|
|
|
3,869 |
|
|
|
28 |
% |
Total |
|
|
85,025 |
|
|
|
75,775 |
|
|
|
9,250 |
|
|
|
12 |
% |
International |
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|
50,118 |
|
|
|
49,110 |
|
|
|
1,008 |
|
|
|
2 |
% |
Total net sales |
|
$ |
135,143 |
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|
$ |
124,885 |
|
|
$ |
10,258 |
|
|
|
8 |
% |
Total cost of sales |
|
$ |
(92,725 |
) |
|
$ |
(86,348 |
) |
|
$ |
(6,377 |
) |
|
|
7 |
% |
Total gross profit |
|
$ |
42,418 |
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|
$ |
38,537 |
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|
$ |
3,881 |
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|
10 |
% |
Total gross margin |
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|
31 |
% |
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|
31 |
% |
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AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
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For the three months
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2024 |
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2023 |
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Cash flows from operating activities: |
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Net income |
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$ |
1,552 |
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|
$ |
1,918 |
|
Adjustments to reconcile net income to net cash used in operating activities: |
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|
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Depreciation and amortization of property, plant and equipment and intangible assets |
|
|
5,441 |
|
|
|
5,539 |
|
Amortization of other long-term assets |
|
|
189 |
|
|
|
714 |
|
Provision for bad debts |
|
|
700 |
|
|
|
581 |
|
Stock-based compensation |
|
|
2,005 |
|
|
|
1,474 |
|
Change in deferred income taxes |
|
|
(1,025 |
) |
|
|
122 |
|
Change in liabilities for uncertain tax positions or unrecognized tax benefits |
|
|
35 |
|
|
|
371 |
|
Change in equity investment fair value |
|
|
(638 |
) |
|
|
22 |
|
Other |
|
|
(5 |
) |
|
|
72 |
|
Foreign currency transaction gains |
|
|
(373 |
) |
|
|
(446 |
) |
Changes in assets and liabilities associated with operations: |
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Increase in net receivables |
|
|
(5,579 |
) |
|
|
(8,779 |
) |
Increase in inventories |
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|
(9,353 |
) |
|
|
(33,731 |
) |
Increase (decrease) in prepaid expenses and other assets |
|
|
(1,466 |
) |
|
|
600 |
|
Change in income tax receivable/payable, net |
|
|
1,014 |
|
|
|
(2,965 |
) |
(Decrease) increase in accounts payable |
|
|
(3,951 |
) |
|
|
5,655 |
|
Decrease in customer prepayments |
|
|
(37,037 |
) |
|
|
(22,759 |
) |
Increase in accrued program costs |
|
|
6,399 |
|
|
|
10,660 |
|
Decrease in other payables and accrued expenses |
|
|
(332 |
) |
|
|
(500 |
) |
Net cash used in operating activities |
|
|
(42,424 |
) |
|
|
(41,452 |
) |
Cash flows from investing activities: |
|
|
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Capital expenditures |
|
|
(3,565 |
) |
|
|
(2,590 |
) |
Proceeds from disposal of property, plant and equipment |
|
|
23 |
|
|
|
— |
|
Acquisition of a product line |
|
|
— |
|
|
|
(703 |
) |
Intangible assets |
|
|
(25 |
) |
|
|
(15 |
) |
Net cash used in investing activities |
|
|
(3,567 |
) |
|
|
(3,308 |
) |
Cash flows from financing activities: |
|
|
|
|
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|
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Payments under line of credit agreement |
|
|
(35,346 |
) |
|
|
(27,300 |
) |
Borrowings under line of credit agreement |
|
|
83,463 |
|
|
|
72,000 |
|
Net receipt from the issuance of common stock under ESPP |
|
|
430 |
|
|
|
480 |
|
Net (payment) receipt from the exercise of stock options |
|
|
— |
|
|
|
18 |
|
Net payment from common stock purchased for tax withholding |
|
|
(14 |
) |
|
|
(13 |
) |
Repurchase of common stock |
|
|
— |
|
|
|
(557 |
) |
Payment of cash dividends |
|
|
(834 |
) |
|
|
(851 |
) |
Net cash provided by financing activities |
|
|
47,699 |
|
|
|
43,777 |
|
Net increase (decrease) in cash |
|
|
1,708 |
|
|
|
(983 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
585 |
|
|
|
223 |
|
Cash at beginning of period |
|
|
11,416 |
|
|
|
20,328 |
|
Cash at end of period |
|
$ |
13,709 |
|
|
$ |
19,568 |
|
|
|
|
|
|
|
|
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO EBITDA (In thousands) (Unaudited) |
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Reconciliation of Net Income to EBITDA |
|
|
|
|
|
|
||
Net income, as reported |
|
$ |
1,552 |
|
|
$ |
1,918 |
|
Provision for income taxes |
|
|
1,484 |
|
|
|
(361 |
) |
Interest expense, net |
|
|
3,693 |
|
|
|
1,686 |
|
Proxy costs |
|
|
— |
|
|
|
541 |
|
Depreciation and amortization |
|
|
5,630 |
|
|
|
6,253 |
|
Stock compensation |
|
|
2,005 |
|
|
|
1,474 |
|
Transformation costs |
|
|
1,152 |
|
|
|
— |
|
Adjusted EBITDA2 |
|
$ |
15,516 |
|
|
$ |
11,511 |
|
______________________________
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/20240509081007/en/
Company Contact:
(949) 260-1200
anthonyy@amvac-chemical.com
Investor Representative:
www.theequitygroup.com
Lcati@equityny.com
Source: