American Vanguard Q3 2024 Earnings Report
Key Takeaways
American Vanguard reported a decrease in net sales to $118.3 million compared to $149.5 million in the third quarter of 2023. The company's EPS was $(0.92) compared to ($0.01) in the previous year. Despite these challenges, non-crop and green solutions businesses showed strong growth, and the company is making progress with its business transformation, expecting increased annual benefits.
Net sales were $118.3 million, which includes the impact of the Dacthal product recall, compared to $149.5 million in Q3 2023.
Adjusted EBITDA was $1.8 million, down from $11.4 million in the same quarter last year.
EPS was $(0.92), compared to $(0.01) in the third quarter of 2023.
The company reduced debt by $32.5 million from the previous quarter.
American Vanguard
American Vanguard
American Vanguard Revenue by Segment
American Vanguard Revenue by Geographic Location
Forward Guidance
The Company reiterated its full year 2024 revenue (down 2% to flat, excluding the product recall charge) and adjusted EBITDA ($40—$50 million) targets.
Positive Outlook
- Full year 2024 revenue target reiterated (down 2% to flat, excluding the product recall charge)
- Full year 2024 adjusted EBITDA target reiterated ($40-$50 million)
- Company is focused on returning to consistent free cash flow generation
- Near-term free cash flow will be allocated towards further deleveraging
- Medium to long-term free cash flow will be applied to growth opportunities
Challenges Ahead
- One-time charges associated with business transformation
- Incurred $8.1 million transformation charge during the quarter
- Recorded $16.2 million charge associated with the collection and disposal of Dacthal
- Macroeconomic headwinds
- Pressure from generics
Revenue & Expenses
Visualization of income flow from segment revenue to net income