American Vanguard (AVD) risk factors, FY2024 10-K

Regulatory/ Supply Chain/Other Risks

1. 01Compliance with environmental and other regulations or changes in such regulations or regulatory enforcement priorities could increase our cost of doing business or limit our ability to market all our products
2. 02Public statements made by USEPA regarding their preliminary findings in connection with the registration review of DCPA could expose the Company to future claims for personal injury which, in turn, could adversely affect the Company’s financial performance
3. 03Several of the Company’s organophosphates are subject to a petition to revoke tolerances under the FFDCA which, if granted, could result in the limitation and/or cancellation of one or more registrations for such products
4. 04USEPA has issued a proposed final decision (“PFD”) to cancel PCNB
5. 05Product liability judgments on glyphosate and cases involving other pesticides by domestic courts present a litigation risk to companies in this industry
6. 06The trend of passing pesticide “ban-bills” in various states could put one or more of the Company’s products at risk
7. 07Use of the Company’s products is subject to continuing challenges from activist groups
8. 08The Company is dependent upon sole source or a limited number of suppliers for certain of its raw materials and active ingredients
9. 09Our business, financial condition and results of operations could be materially affected by disruptions in the global supply chain, including risks associated with sourcing and manufacturing outside of the U.S. and risks from tariffs and/or international trade wars
10. 10The distribution and sale of the Company’s products are subject to governmental approvals and thereafter ongoing governmental regulation
11. 11The manufacturing of the Company’s products is subject to governmental regulations
12. 12A change in tax laws, treaties or regulations, or their interpretation or application, could have a negative impact on our business and results of operations
13. 13Our business is subject to fluctuations and volatility in the global economy
14. 14Climate Change may adversely affect the Company’s business
15. 15The Company’s business may be adversely affected by weather effects and commodity prices
16. 16The Company may be subject to environmental liabilities
17. 17The highly competitive nature of our markets could adversely affect our ability to maintain or grow revenues

Transformation/Credit and Other Risks

1. 18The Company’s transformation initiatives may not generate the full benefit of targeted efficiencies
2. 19Reduced financial performance may limit the Company’s ability to borrow under its credit facility
3. 20The Company depends in part upon customer prepayments to meet its working capital needs
4. 21The carrying value of certain assets on the Company’s consolidated balance sheets may be subject to impairment depending upon market trends and other factors
5. 22The Company’s computing systems are subject to cyber security risks
6. 23To the extent that capacity utilization is not fully realized at its manufacturing facilities, the Company may experience lower profitability
7. 24Domestic and regional inflation trends, increased interest rates and other factors could lead to the erosion of economies and adversely impact the Company

Acquisition/Investment Risks

1. 25Newly acquired businesses or product lines may not generate forecasted results
2. 26The Company’s investment in foreign businesses may pose additional risks
3. 27The Company’s investment in technology may not generate forecasted returns
4. 28The Company’s growth has been fueled in part by acquisitions
5. 29The Company faces competition from generic competitors that source products from countries having lower cost structures
6. 30Industry consolidation may threaten the Company’s position in various markets
7. 31The Company’s customer base is relatively concentrated, with a small number of customers accounting for a significant portion of our sales