American Vanguard Corporation · NYSE:AVD
American Vanguard — Q3 2024 Earnings Presentation
17 slides from American Vanguard's earnings presentation, November 2024
Slide 1: Q’3 2024 Quarterly Earnings
Q’3 2024 Quarterly Earnings November 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement During this presentation, the Company 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 c
Slide 3: Executive Summary - Key Messages
Executive Summary - Key Messages ▪ The Company is reiterating full-year 2024 guidance ▪ 2024 Adjusted EBITDA Target ($40-$50 million) ▪ Revenue (Excluding Dathal Recall) $565-$580 million ▪ Paid down $32.5 million of debt in the quarter, improving AVD’s liquidity position. Expect further debt reduct
Slide 4: Q3’24 Highlights
AMERICAN VANGUARD Q3’24 Highlights
Slide 5: Q3 2024 Revenue Results
Q3 2024 Revenue Results ▪ The reduction in revenue is largely due to a more normalized sales level of the Aztec granular soil insecticide product – adj. revenue was essentially flat year-over-year excluding Aztec, generic price pressure ▪ U.S. Non-Crop sales up 17% year-over-year – ▪ Driven by OHP S
Slide 6: Q3 2024 Financial Results
Q3 2024 Financial Results ▪ Year-over-year adjusted revenue decline impacted by customer actions to restock in 2023 that did not happen in 2024, plus adverse impact of generic pressure on a small number of products. ▪ Adj. EBITDA negatively impacted by decline in Aztec sales and generic pressure vs
Slide 7: Q3 2024 Operating Expenses
Q3 2024 Operating Expenses ▪ We continue to be focused on our cost cutting initiatives. On an adjusted, or like-for-like basis, total operating expenses declined by $3.9 million or 10% this quarter compared to the year ago period $50 $40 $38.9 $35.0 ($000’s) $30 $20 $10 $0 Q3'24 Q3'23 *Adjusted resu
Slide 8: Improved Liquidity – Strengthening Balance Sheet
Improved Liquidity – Strengthening Balance Sheet ▪ Debt paydown during Q3 24 - $32.5 million. Further Debt paydown anticipated in Q4 24 ▪ Focus on driving towards inventory/sales of 34% - $25 million reduction in inventory 45% 44% 43% 42% 42% 40% 38% 39% 37% 35% 34% 30% 25% 20% 15% 10% 5% 0% Q1 2023
Slide 9: Transformation Acceleration
Transformation Acceleration 9
Slide 10: Transformation Initiatives (Update)
Transformation Initiatives (Update) ▪ The Company identified additional cost savings opportunities during the initial implementation process and is raising projected annual EBITDA benefit from $15M to $20M driven largely by increased savings from raw material and logistics procurement initiatives. ▪
Slide 11: Appendix
AMERICAN VANGUARD Appendix
Slide 12: FY 2024 Guidance – Reiterated
FY 2024 Guidance – Reiterated ▪ The Company reiterated its guidance ▪ Transformation annualized EBITDA benefits raised from $15 to $20 million Metric Current Target Adjusted EBITDA $40M - $50M Revenue* $565M - $580M *Adjusted results exclude recalled items 12
Slide 13: Strategies – Transformation Blueprint
Transformation Blueprint Cultivate Our People Maintain Liquidity Execute Transformation Drive Excellence • Strengthen Communication • Lower Year-End Inventory • Identify Value Creation Opps • Safety Strategies • Recognize Talent • Reduce Spending • Operate w/ Low Cost • Commercial Organization • Dev
Slide 14: Q3 2024 Revenue
Q3 2024 Revenue Overall revenue Q3 2024 $116M vs $150M in 2023 (down -22.5%), Net Sales, 3 months Ended Sept. 30, 2024 & 2023 $80 $70 $67.7 $60.9 $62.5 $60.3 $60 $50 $47.3 $40 ($000’s) $35.3 $30 $22.5 $22.5 $19.3 $20 $10 $0 U.S. Crop U.S. Non-Crop International 2024 2024 (Adj.) 2023 *Adjusted result
Slide 15: Liquidity Initiatives
Liquidity Initiatives Action Description Progress Goal • Implementing stricter cost • Spending with outside • A disciplined corporate controls across company vendors spending approach, which • Reducing travel and cascades throughout the Spending Reduction entertainment Company’s culture and • Limiti
Slide 16: Q3 2024 Gross Profit
Q3 2024 Gross Profit ($000’s) 2024 2024 (Adj.*) 2023 Change** U.S Crop $35,532 $47,315 $67,749 (30%) U.S. Non-Crop $22,454 $22,454 $19,250 17% U.S. $57,986 $69,769 $86,999 (20%) International $60,320 $60,940 $62,517 (3%) Total Net Revenue $118,306 $130,709 $149,516 (13%) Total Cost of Sales ($101,01
Slide 17: CEO Search Status
CEO Search Status ▪ Working with Kincannon & Reed, a Premier Executive Search Firm ▪ Board of Directors Search Team Reviewing Lists of Candidates ▪ Candidates Must be Equipped to Move Transformation Forward ▪ Updates Forthcoming 17