Segment Reporting

6 Months Ended

Jun. 30, 2025

18. Segment Reporting — The Company operates as a single operating segment, which is the business of developing, manufacturing and distributing chemical, biological and biorational products for agricultural, commercial and consumer uses. The Company synthesizes and formulates chemicals and ferments and extracts microbial products for crops, turf, ornamental plants, and human and animal health protection.

The Company’s Chief Operating Decision Maker ("CODM") is the Chief Executive Officer, who manages the Company’s operations based on consolidated financial information for purposes of evaluating financial performance and allocating resources. The financial information reviewed by the CODM includes revenue by product line and region, and key expense categories that are regularly provided for the consolidated company. The accounting policies of the Company’s single operating segment are the same as those described in the summary of significant accounting policies. Although there are other measures of operating performance used by the CODM, the Company concluded that consolidated operating income (loss) is the measure required to be disclosed as the segment measure of profit or loss. Operating income (loss) is utilized to evaluate budget versus actual results in order to gain more depth and understanding of the factors driving the business. When evaluating the Company’s financial performance, the following table sets forth significant expense categories regularly provided to the CODM.


	For the three months ended June 30						For the six months ended June 30
	2025			2024			2025			2024
Net sales	$	129,313		$	128,209		$	245,113		$	263,352
Cost of sales
Material and other costs		(79,243	)		(80,763	)		(155,267	)		(164,084	)
Warehousing, handling, and outbound freight		(9,523	)		(9,683	)		(19,108	)		(19,087	)
Total cost of sales		(88,766	)		(90,446	)		(174,375	)		(183,171	)
Gross profit		40,547			37,763			70,738			80,181
Operating expenses
Selling, general and administrative		(28,757	)		(31,051	)		(55,385	)		(60,520	)
Research, product development and regulatory		(5,803	)		(8,599	)		(11,485	)		(14,305	)
Transformation		(1,621	)		(7,345	)		(3,812	)		(8,497	)
Operating income (loss)		4,366			(9,232	)		56			(3,141	)
Change in fair value of an equity investment		—			(125	)		—			513
Interest expense, net		(4,450	)		(3,917	)		(8,215	)		(7,610	)
Loss before provision for income taxes		(84	)		(13,274	)		(8,159	)		(10,238	)
Income tax (expense) benefit		(765	)		1,553			(1,152	)		69
Net loss	$	(849	)	$	(11,721	)	$	(9,311	)	$	(10,169	)

Asset categories provided to the CODM are consistent with those reported on the consolidated balance sheets.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

AMERICAN VANGUARD CORP 10-Q