American Vanguard Corp 8-K, filed Mar 18, 2024

About this 8-K

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American Vanguard Corp (AVD)

8-K 2024-03-18 For: 2024-03-14

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Added on April 06, 2026

American Vanguard Corp filed this 8-K on March 18, 2024, reporting on events of March 14, 2024.

AMERICAN VANGUARD CORPORATION

Date: March 18, 2024

/s/ Timothy J. Donnelly

Timothy J. Donnelly

Chief Information Officer, General Counsel & Secretary

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Exhibit 99.1		Press release dated March 14, 2024, of Registrant regarding financial results for the three- and twelve-month periods ended December 31, 2023.

104		Cover Page Interactive Data File (embedded within the Inline XBRL document).


Company Contact:		Investor Representative
American Vanguard Corporation		the Equity Group Inc.
William A. Kuser, Director of Investor Relations		www.theequitygroup.com
(949) 260-1200		Lena Cati
williamk@amvac-chemical.com		Lcati@equityny.com


	2023			2022
Assets
Current assets:
Cash and cash equivalents	$	11,416		$	20,328
Receivables:
Trade, net of allowance for credit losses of $7,107 and $5,136, respectively		182,613			156,492
Other		8,356			9,816

Total receivables, net		190,969			166,308

Inventories		219,551			184,190
Prepaid expenses		6,261			15,850
Income taxes receivable		3,824			1,891

Total current assets		432,021			388,567
Property, plant and equipment, net		74,560			70,912
Operating lease right-of-use assets, net		22,417			24,250
Intangible assets, net of amortization		172,508			184,664
Goodwill		51,199			47,010
Deferred income tax assets		2,849			141
Other assets		11,994			10,769

Total assets	$	767,548		$	726,313

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	68,833		$	69,000
Customer prepayments		65,560			110,597
Accrued program costs		68,076			60,743
Accrued expenses and other payables		16,354			20,982
Operating lease liabilities, current		6,081			5,279
Income taxes payable		5,591			—

Total current liabilities		230,495			266,601
Long-term debt		138,900			51,477
Operating lease liabilities, long-term		17,113			19,492
Deferred income tax liabilities		7,892			14,597
Other liabilities		3,138			4,167

Total liabilities		397,538			356,334

Commitments and contingent liabilities
Stockholders’ equity:
Preferred stock, $0.10 par value per share; authorized 400,000 shares; none issued		—			—
Common stock, $0.10 par value per share; authorized 40,000,000 shares; issued 34,676,787 shares in 2023 and 34,446,194 shares in 2022		3,467			3,444
Additional paid-in capital		110,810			105,634
Accumulated other comprehensive loss		(5,963	)		(12,182	)
Retained earnings		332,897			328,745

		441,211			425,641
Less treasury stock at cost, 5,915,182 shares in 2023 and 5,029,892 in 2022		(71,201	)		(55,662	)

Total stockholders’ equity		370,010			369,979

Total liabilities and stockholders’ equity	$	767,548		$	726,313


	2023			2022			2021
Net sales	$	579,371		$	609,615		$	557,676
Cost of sales		(400,207	)		(417,227	)		(386,953	)

Gross profit		179,164			192,388			170,723
Operating expenses
Selling, general and administrative		(117,844	)		(119,921	)		(111,093	)
Research, product and regulatory		(38,025	)		(31,816	)		(28,855	)

Total operating expenses		(155,869	)		(151,737	)		(139,948	)
Bargain purchase gain on business acquisition		—			—			171

Operating income		23,295			40,651			30,946
Change in fair value of equity investments, net		(359	)		(732	)		(790	)
Other income		—			—			672
Interest expense, net		(12,639	)		(3,954	)		(3,687	)

Income before provision for income taxes and loss on equity method investment		10,297			35,965			27,141
Provision for income taxes		(2,778	)		(8,561	)		(8,166	)

Income before loss on equity method investment		7,519			27,404			18,975
Loss from equity method investment		—			—			(388	)

Net income	$	7,519		$	27,404		$	18,587

Earnings per common share—basic	$	0.27		$	0.94		$	0.62

Earnings per common share—assuming dilution	$	0.26		$	0.92		$	0.61

Weighted average shares outstanding—basic		28,128			29,234			29,811

Weighted average shares outstanding—assuming dilution		28,533			29,872			30,410


	For the quarters ended December 31,						For the years ended December 31,
	2023			2022			2023			2022
Net sales:
U.S. crop	$	83,406		$	68,231		$	269,229		$	288,624
U.S. non-crop		25,246			22,865			75,287			76,709

Total U.S.		108,652			91,096			344,516			365,333
International		63,528			68,366			234,855			244,282

Total net sales	$	172,180		$	159,462		$	579,371		$	609,615
Total cost of sales	$	(117,545	)	$	(117,529	)	$	(400,207	)	$	(417,227	)

Total gross profit		54,635			41,933			179,164			192,388

Total gross margin		32	%		26	%		31	%		32	%


	For the years ended December 31,
	2023		2022
Net income	$	7,519	$	27,404
Provision for income taxes		2,778		8,561
Interest expense, net		12,639		3,954
Proxy costs		541		1,785
Depreciation and amortization		23,534		25,711
Stock compensation expense		6,138		5,684
Transformation costs		957		—

Adjusted EBITDA²	$	54,106	$	73,099


	For the quarters ended December 31,
	2023		2022
Net income	$	6,979	$	3,898
Provision (benefit) for income taxes		712		(1,626	)
Interest expense, net		4,357		1,698
Depreciation and amortization		5,684		6,406
Stock compensation expense		1,881		1,288
Transformation costs		957		—

Adjusted EBITDA²	$	20,570	$	11,664


	2023			2022			2021
Cash flows from operating activities:
Net income	$	7,519		$	27,404		$	18,587
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization of property, plant and equipment and intangible assets		21,780			22,138			22,229
Amortization of other long-term assets		1,754			3,573			3,943
Amortization and accretion of deferred loan fees and discounted liabilities		254			289			359
Loss on disposal of property, plant and equipment		—			268			194
Provision for bad debts		1,935			1,171			649
Provision for inventory obsolescence		517			340			1,034
Loan principal and interest forgiveness		—			—			(672	)
Fair value adjustment of contingent consideration		—			610			758
Decrease in environmental liability		—			—			(167	)
Stock-based compensation		6,138			5,684			6,880
Deferred income taxes		(9,710	)		(5,278	)		(2,090	)
Changes in liabilities for uncertain tax positions or unrecognized tax benefits		(508	)		(1,441	)		(1,783	)
Change in equity investment fair value		359			732			790
Loss from equity method investment		—			—			388
Bargain purchase gain		—			—			(171	)
Non-cash lease expense		256			68			286
Foreign currency transaction gains		(581	)		(29	)		(225	)
Changes in assets and liabilities associated with operations, net of business combinations:
Increase in net receivables		(20,278	)		(6,447	)		(24,347	)
(Increase) decrease in inventories		(27,832	)		(29,560	)		8,323
(Increase) decrease in income tax receivable, net		3,568			(4,910	)		6,051
(Increase) decrease in prepaid expenses and other assets		1,269			(3,082	)		(4,581	)
Increase (decrease) in accounts payable		(2,287	)		1,704			8,783
(Decrease) Increase in deferred revenue		(45,079	)		47,551			19,280
Increase (decrease) in accrued program costs		7,244			(2,449	)		17,877
Increase (decrease) in other payables and accrued expenses		(5,066	)		90			3,986
Decrease in contingent consideration		—			(1,321	)		—

Net cash (used in) provided by operating activities		(58,748	)		57,105			86,361

Cash flows from investing activities:
Capital expenditures		(11,878	)		(13,261	)		(9,518	)
Proceeds from disposal of property, plant and equipment		242			84			—
Acquisitions of business and product line		(5,195	)		—			(10,000	)
Intangible assets		(186	)		(1,293	)		(524	)