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    Wayne Pinsent • Gabelli Funds

    Wayne Pinsent's questions to American Vanguard Corp (AVD) leadership

    Wayne Pinsent's questions to American Vanguard Corp (AVD) leadership • Q2 2025

    Question

    Wayne Pinsent of Gabelli Funds asked about the sustainability of the improved gross margins, targets for further inventory reduction, and any strategic progress made on monetizing the SIMPAS technology assets.

    Answer

    CEO Douglas Kaye stated that while quarterly results may fluctuate, the current gross margin level is the target they are striving for as part of their long-term goal of 15% EBITDA margins. He noted the company aims to improve inventory turns to approximately 2.0x by 2027. Regarding SIMPAS, Kaye confirmed that while there is nothing substantive to announce publicly, a team is actively engaged in discussions with potential partners to strategically place the technology.

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    Wayne Pinsent's questions to American Vanguard Corp (AVD) leadership • Q1 2025

    Question

    Wayne Pinsent of Gabelli Funds asked about the potential for a demand snapback to impact the bottom line, the company's confidence in its 15% adjusted EBITDA margin target, and the expected cadence of improvements into 2026.

    Answer

    CEO Douglas Kaye reaffirmed his confidence in the long-term 15% adjusted EBITDA margin target, stating that the recent sales decrease was directly tied to destocking, not a drop in end-market product use. He noted that the company projects growth in 2026, highlighting positive signs from transformation efforts in Brazil, and expects to apply these learnings to the U.S. market.

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    Wayne Pinsent's questions to American Vanguard Corp (AVD) leadership • Q4 2024

    Question

    Wayne Pinsent asked about management's confidence in the 2025 guidance, the factors that could drive results to the upper or lower ends of the range, and the expected scale of any additional transformation costs in 2025.

    Answer

    CEO Douglas Kaye expressed confidence in the 2025 guidance, noting the lower end would reflect a weaker ag industry than 2024, while the upper end would be driven by more positive grower purchasing. He specified that 2025 transformation costs are expected to be minimal at approximately $5 million, a steep decline from 2024, while the transformation is expected to deliver $8 million to $10 million in benefits during the year.

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