AMERICAN VANGUARD REPORTS FOURTH QUARTER & FULL YEAR 2023 RESULTS; SETS $15MM ADJUSTED EBITDA GAIN AS TRANSFORMATION TARGET

American Vanguard Corporation (NYSE: AVD) today announced financial results for the fourth quarter and full year ended December 31, 2023.

Fiscal 2023 Fourth Quarter Financial Highlights - versus Fiscal 2022 Fourth Quarter:

Net sales were $172.2 million in 2023, compared to $159.5 million in 2022

Net income was $7.0 million in 2023, compared to $3.9 million in 2022

Earnings per diluted share of $0.25 in 2023, compared to $0.13 in 2022

Adjusted EBITDA1 of $21 million in 2023, compared to $12 million in 2022

Fiscal 2023 Full Year Financial Highlights - versus Fiscal 2022 Full Year: Net sales were $579 million in 2023, compared to $610 million in 2022

Net income was $7.5 million in 2023, compared to $27.4 million in 2022

Earnings per diluted share of $0.26 in 2023, compared to $0.92 in 2022

Adjusted EBITDA of $55 million in 2023, compared to $73 million in 2022

Eric Wintemute, Chairman and CEO of American Vanguard, stated: 'We rebounded sharply in Q4 after having weathered the effect of global destocking within the distribution channel, the oversupply of Chinese generic products into multiple regions, and the unavailability of our most profitable products due to supply chain issues. Increased demand during Q4 provided evidence that destocking activity continues to subside and that, even while showing greater discipline, procurement within the distribution channel is following more normal patterns. During the quarter, we achieved predicted revenue growth, maintained solid manufacturing operations, sustained strong profit margins by bolstering brand value and strengthened our balance sheet.'

Mr. Wintemute concluded: 'Looking forward, we believe that our company is situated well in both domestic and international markets and are targeting 8 to 12% revenue growth resulting in a full year adjusted EBITDA range of $70 to $80 million in 2024. We expect gross profit margins to remain strong, operating expenses to be tightly managed, and factory performance to be efficient. In addition, with the assistance of our consultant Kearney, through our business transformation initiative, we are targeting growth of adjusted EBITDA to 15% of net sales or an additional $15 million or more of adjusted EBITDA on a full-year basis. The full benefit of the transformation will be realized by 2026 through a combination of operational, commercial, digital, and general and administrative sub-initiatives. We look forward to giving you a detailed presentation during our upcoming earnings call.'

Conference Call

Eric Wintemute, Chairman & CEO, Bob Trogele, EVP & COO and David T. Johnson, VP & CFO, will conduct a conference call focusing on the financial results and strategic themes at 5:00 pm ET on March 14, 2024. Interested parties may participate in the call by dialing 201-493-6744. Please call in 10 minutes before the scheduled start time and ask for the American Vanguard call. The conference call will also be webcast live via the News and Media section of the Company's website at www.american-vanguard.com. To listen to the live webcast, go to the website at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, the conference call will be archived on the Company's website.

About American Vanguard

American Vanguard Corporation is a diversified specialty and agricultural products company that develops and markets products for crop protection and management, turf and ornamentals management and public and animal health. American Vanguard is included on the Russell 2000 and Russell 3000 Indexes. To learn more about American Vanguard, please reference the Company's website at www.american-vanguard.com. 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 SEC reports and filings. All forward-looking statements, if any, in this release represent the Company's judgment as of the date of this release.

Contact:

William A. Kuser

Director of Investor Relations

Tel: [phone]

Email: [e-mail]

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