NEWPORT BEACH, Calif. - American Vanguard Corporation (NYSE:AVD), a prominent player in the agricultural solutions sector with a market capitalization of $177 million, has announced the appointment of Douglas A. Kaye, III as its new Chief Executive Officer. The Board of Directors unanimously selected Mr. Kaye, with his tenure set to begin on December 9, 2024. He will assume his role at the company's global headquarters starting January 6, 2025.
Kaye, who is familiarly known as Dak, is anticipated to usher in an era of expansion and innovation for American Vanguard. He brings over a decade of experience from Albaugh, LLC, where he served in various senior leadership roles, including President of North America. His background also includes positions as Group Chief Commercial Officer, President of the European region, and financial leadership roles at Adama and an international automotive logistics firm. Kaye began his career at Arthur Andersen, LLP, and holds a Master of Accountancy and a Bachelor of Science in Business Administration from Auburn University. He has also been elected to the Executive Board of CropLife America.
Scott Baskin, Lead Director of American Vanguard's Board, expressed confidence in Kaye's ability to drive the company towards achieving a 15% adjusted EBITDA margin and positioning it for further growth. According to InvestingPro data, while the company is currently not profitable, analysts expect it to return to profitability this year. Baskin also acknowledged the interim Office of CEO for their leadership and contribution to the company's ongoing transformation.
Expressing gratitude for his appointment, Kaye remarked on American Vanguard's strong customer relationships and his optimism about accelerating the company's transformation, enhancing revenue growth, and improving margins.
American Vanguard Corporation, with a diversified portfolio in specialty and agricultural products, operates in 21 countries and boasts over 1,000 product registrations across 56 nations. The company, which InvestingPro analysis suggests is currently undervalued, maintains a strong 1.95% dividend yield and has sustained dividend payments for 29 consecutive years. The company aims to continue its trajectory of growth and innovation under Kaye's leadership. Investors seeking detailed insights can access comprehensive analysis through InvestingPro's exclusive Research Report, available among 1,400+ top US stocks.
This news is based on a recent press release statement and does not include any forward-looking statements from the company.
In other recent news, American Vanguard Corp (NYSE:AVD). reported on its third-quarter 2024 earnings call, projecting an optimistic outlook for the coming year. The company's adjusted EBITDA target for 2024 is between $40 million to $50 million, with sales goals set at $565 million to $580 million, excluding product recall charges. Despite a challenging third quarter, American Vanguard anticipates a strong fourth quarter, traditionally favorable for its crop protection products.
The company's third-quarter results revealed an adjusted EBITDA of $2 million on sales of $130.7 million. There was a noted decrease in sales of key products Aztec and Folex, and a significant decline in U.S. crop business sales was offset by a 17% increase in non-crop business sales. American Vanguard also managed to reduce its long-term debt by $32.5 million since the second quarter of 2024.
Management expects a 15% adjusted EBITDA margin across the agricultural cycle post-transformation. Savings from improved vendor management in raw materials and logistics procurement are expected to double to $6 million annually. Despite facing pressures from generic competitors, particularly on its Folex product, the company remains optimistic about leveraging its product portfolio for growth, especially for early-season crops. These recent developments indicate American Vanguard's strategic response to current challenges and its focus on future growth and operational efficiency.
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