American Vanguard Corporation (AVD) 2025 Q4 法說會逐字稿

Greetings. Welcome to the American Vanguard fourth-quarter 2025 earnings conference call. (Operator Instructions) Please note, this conference is being recorded.

各位好。歡迎參加 American Vanguard 2025 年第四季財報電話會議。(接線員指示) 請注意，本次會議將被錄音。

I will now turn the conference over to your host, Anthony Young, Director of Investor Relations. You may begin.

現在我將把會議交給本次主持人——投資人關係總監 Anthony Young。您可以開始了。

Thank you, operator. Good afternoon, and welcome to American Vanguard's full-year 2025 earnings review. Our prepared remarks will be led by Dak Kaye, Chief Executive Officer; and David Johnson, Chief Financial Officer. After the prepared remarks, we will open up the call for questions.

謝謝，接線員。各位下午好，歡迎參加 American Vanguard 2025 年全年財報回顧。我們的事先準備發言將由執行長 Dak Kaye 與財務長 David Johnson 主講。在準備發言結束後，我們將開放提問。

A copy of today's press release, along with supplemental slides, are available on our website. A replay of the webcast and a transcript from the event will be made available on our website shortly after the call.

今日新聞稿及補充簡報投影片可於我們的網站取得。本次網路直播的重播與活動逐字稿將於電話會議結束後不久在我們網站提供。

Before we begin our presentation, we would like to remind everyone that today's press release and certain comments on the call include non-GAAP figures and forward-looking statements, and actual results may differ materially from these forecasts. Please refer to the cautionary language included in our press release and slides and to the risk factors described in our SEC filings, all of which are available on our website.

在開始簡報之前，我們提醒各位，今日新聞稿以及本次電話會議中的部分評論包含非 GAAP 財務數據與前瞻性陳述，實際結果可能與這些預測有重大差異。請參閱我們新聞稿與投影片中的警示性文字，以及我們向 SEC 提交文件中所述的風險因素；上述資料皆可於我們網站取得。

It is now my pleasure to turn the call over to CEO, Dak Kaye.

現在我很榮幸將電話會議交給執行長 Dak Kaye。

Thank you, Anthony, and welcome, everyone, to our fourth-quarter 2025 earnings conference call. While 2025 was a challenging year for the agricultural sector, I am pleased with the progress that has been made at American Vanguard.

謝謝你，Anthony，也歡迎各位參加我們 2025 年第四季財報電話會議。儘管 2025 年對農業產業而言是充滿挑戰的一年，我仍對 American Vanguard 所取得的進展感到欣慰。

We have executed on our business, operational, digital and organizational initiatives. We have hired quality experienced colleagues. We have improved our safety metrics across the board. We have focused our team on developing new products, while reducing manufacturing and operating costs. These improvements have positively impacted 2025 as results but more importantly, we are positioning the company for long-term success.

我們已在業務、營運、數位化與組織等各項倡議上落實執行。我們延攬了具備優質經驗的同仁。我們全面改善了安全指標。我們讓團隊聚焦於開發新產品，同時降低製造與營運成本。這些改善對 2025 年的成果帶來正面影響；更重要的是，我們正在為公司的長期成功奠定基礎。

Additionally, for over a year now, the team has been focused on finding a capital structure that will allow us to pay down our expiring credit facility while providing the maximum amount of financial flexibility for future growth. We believe that we have found the right solution through two term loans, one from Centerbridge Partners and one from the existing BMO-led syndicate. The full details of these term loans can be found in our SEC filings.

此外，過去一年多以來，團隊一直專注於尋找一種資本結構，使我們能在償還即將到期的信貸額度的同時，為未來成長提供最大的財務彈性。我們相信，透過兩筆定期貸款——一筆來自 Centerbridge Partners，另一筆來自現有由 BMO 主導的銀團——我們已找到合適的解決方案。關於這些定期貸款的完整細節，可在我們向 SEC 提交的文件中查閱。

While we are paying a higher interest rate on average than our previous revolving credit facility, we now have a significant runway to further improve our operations and show the investment community that the higher earnings power that I believe are possible. Furthermore, the team is now solely focused on running the business and delivering the sales and margins we expect.

雖然相較於先前的循環信用額度，我們目前平均支付的利率較高，但我們現在擁有充足的時間窗口，得以進一步改善營運，並向投資社群展現我所相信可達成的更高獲利能力。此外，團隊現在能專注於經營業務本身，並交付我們所預期的銷售與毛利率表現。

As we look to position the company for the future, we have made the decision to rationalize the Los Angeles manufacturing facility. The LA plant is the company's oldest facility and is no longer competitive in the current environment.

在為公司未來定位之際，我們已決定對洛杉磯製造設施進行合理化調整。洛杉磯廠是公司最老的廠區，在目前環境下已不再具備競爭力。

We thank the American Vanguard team members at this location for their outstanding service and dedication to running a safe facility over the years of operation. We plan to help many of them pursue the next steps in their careers, but in order for the broader company to remain competitive, it was necessary to take this very difficult step.

我們感謝該據點的 American Vanguard 團隊成員多年來的傑出服務與投入，並在營運期間致力維持安全的廠區。我們計畫協助其中許多人邁向職涯的下一步；但為了讓公司整體保持競爭力，我們必須採取這項非常艱難的措施。

This rationalization will save the company at least $4 million annually as we move additional volumes through our Axis, Alabama site. We expect to improve utilization there, which will also improve our cost absorption and ultimately, our profitability.

隨著我們將更多產量轉移至阿拉巴馬州 Axis 廠區，這項合理化調整每年至少可為公司節省 400 萬美元。我們預期該廠的產能利用率將提升，進而改善成本吸收，最終提高獲利能力。

As we have previously announced, the company will be moving its global headquarters from Newport Beach, to a smaller, more cost-effective space in Irvine, California. We estimate this move will save the company approximately $0.5 million annually, and will allow our corporate team to be in a more collaborative, modern office environment.

如我們先前所宣布，公司將把全球總部自 Newport Beach 搬遷至加州 Irvine 一處更小、成本更具效益的辦公空間。我們估計此搬遷每年可為公司節省約 50 萬美元，並讓公司總部團隊能在更具協作性、現代化的辦公環境中工作。

We expect the rationalization of the LA facility and the headquarters relocation to both be complete by the end of the second quarter of this year. These are two significant milestones for us, but not the last as we will continually work to improve the cost structure of the company.

我們預期洛杉磯廠區的合理化調整與總部搬遷將在今年第二季末前完成。這是我們兩項重要里程碑，但並非最後一步；我們將持續努力改善公司的成本結構。

Turning to the 2025 results. The company generated $39.2 million of adjusted EBITDA, which was slightly better than we generated in the previous year. Sluggish sales in the fourth quarter prevented the company from achieving our adjusted EBITDA target of $40 million to $44 million. That said, we were successful in cutting more costs than we initially estimated and completed a joint development agreement that partially offset the lower sales.

接著談 2025 年的業績。公司調整後 EBITDA 為 3,920 萬美元，略優於前一年度。第四季銷售疲弱使公司未能達成 4,000 萬至 4,400 萬美元的調整後 EBITDA 目標。儘管如此，我們成功削減的成本高於原先估計，並完成一項聯合開發協議，部分抵銷了較低的銷售表現。

The supply chain and logistics team that we hired last year continues to find ways to decrease our material cost and also has improved our warehousing and freight expenses. We attained these improvements even before the implementation of our new software systems that are expected to be fully rolled out later this year, which should allow us to further decrease our inventory and raw material costs.

我們去年聘用的供應鏈與物流團隊持續找出降低原物料成本的方法，並改善了倉儲與運輸費用。即使在預計於今年稍晚全面上線的新軟體系統尚未導入之前，我們就已取得這些改善；該系統應可讓我們進一步降低庫存與原物料成本。

I expect our inventory turns to increase in 2026 and thereafter as we work to get inventory turns to a goal of 2.25%. Not only will this have a positive impact on our gross profit, but I also expect that it will decrease the amount of working capital required to operate the business.

我預期我們的庫存周轉率將在 2026 年及其後提升，因為我們正努力將庫存周轉率提升至 2.25% 的目標。這不僅會對我們的毛利帶來正面影響，我也預期將降低營運所需的營運資金規模。

Cost containment has been a top priority, but it's also important to highlight that there is a growth story at American Vanguard. As I've stated in previous conference calls, I was surprised where the development portfolio was when I joined the company. We have subsequently taken steps to improve in this area, while at the same time, keeping a watchful eye on our R&D expenses.

成本控管一直是首要任務，但同樣重要的是要強調 American Vanguard 也有成長故事。如我在先前的電話會議中所提到，我加入公司時，對研發/開發產品組合所處的狀態感到意外。此後我們已採取措施改善這一領域，同時也密切留意我們的研發費用。

We have a chart included in our presentation that reflects the new focus on product development. We have already launched one new product in 2026, Duro LQ, and we expect to launch five new products in North America in total this year. We have a slate of new registrations internationally as well. As we expand the registration footprint, and extend the lifetime of our products in multiple jurisdictions, we expect to register at least 25 new products in North America by 2031.

我們在簡報中包含了一張圖表，反映我們對產品開發的新聚焦。我們已於 2026 年推出一項新產品 Duro LQ，並預期今年在北美合計推出五項新產品。我們在國際市場也有一系列新的登記/註冊。隨著我們擴大註冊版圖，並在多個司法管轄區延長產品生命週期，我們預期到 2031 年在北美至少完成 25 項新產品註冊。

New products typically have a higher margin contribution than the existing portfolio. So bringing these new products to market will have a positive impact on revenue and our margin profile. Bottom line, we estimate that we can generate at least an additional $100 million of annual revenue globally over the medium term from new products that are under various stages of development.

新產品通常比既有產品組合帶來更高的毛利貢獻。因此，將這些新產品推向市場將對營收與我們的毛利結構帶來正面影響。總而言之，我們估計在中期內，來自處於不同開發階段的新產品，全球每年可額外帶來至少 1 億美元的營收。

In addition to new products, we also plan to be even more responsive to our customers' needs. I believe we can drive more volume through our factories by doing a better job of listening to our customers. This was part of the reason why we appointed a new Chief Commercial Officer, Mike DiPaola. Mike brings 30 years of ag experience, enthusiasm and aggressiveness to our commercial operation that has been missing. As we increase our factory utilization, we can spread our fixed costs over more units, improving our profitability.

除了新產品之外，我們也計畫更迅速回應客戶需求。我相信，透過更用心傾聽客戶，我們可以讓工廠帶動更高的產量。這也是我們任命新任首席商務長（Chief Commercial Officer）Mike DiPaola 的部分原因。Mike 為我們的商務營運帶來了 30 年的農業經驗、熱忱與進取心，而這些正是過去所欠缺的。隨著我們提高工廠產能利用率，我們可以把固定成本分攤到更多單位上，進而提升獲利能力。

I will now address what we have been observing in the broader agricultural economy. The industry has yet to recover from a downturn that started in 2023. While agricultural commodities are recovering from the low levels that we -- that were experienced during the summer of 2025, they remain well below industry observers considered to be historically normal levels. The worst of the industry destocking does appear to be in the past, but distributors have shown no inclination to restock their inventories.

接下來我將說明我們在更廣泛的農業經濟中所觀察到的情況。產業尚未從 2023 年開始的下行循環中復甦。雖然農產品大宗商品價格正從 2025 年夏季所經歷的低點回升，但仍遠低於產業觀察者認為的歷史常態水準。產業去庫存最嚴重的階段似乎已經過去，但經銷商並未顯示出補庫存的意願。

Farmer liquidity is a concern after several years of depressed commodity prices. Both cotton and corn acreage are forecasted to be slightly down, while soybean acreage is forecasted to increase. All in all, industry observers are forecasting a relatively stable year with respect to planet acreage.

在大宗商品價格低迷數年之後，農民的流動性是一項疑慮。預測棉花與玉米的種植面積將小幅下降，而大豆的種植面積預測將增加。整體而言，產業觀察者預期就種植面積而言，今年將相對穩定。

We would note that growers are making more last-minute crop decisions than ever before, and geopolitical issues are weighing heavily on those decisions. There are some green shoots as the farmer support payments seem to be rolling out, higher oil prices tend to drive up demand for biofuels that utilize both corn and soybean. Further, higher oil prices increase emphatic fabric costs, leading to greater demand for cotton.

我們注意到，種植戶比以往任何時候都更常在最後一刻才做出作物決策，而地緣政治議題對這些決策造成沉重影響。也出現一些復甦跡象：農民支持性補貼似乎正在陸續發放；油價上升通常會推升使用玉米與大豆的生質燃料需求。此外，油價上升也會提高合成纖維成本，進而帶動對棉花的需求。

Before I provide our 2026 targets, I would like to highlight an issue that impacted our company's financial performance. Typically, American Vanguard collects a significant amount of cash in the fourth quarter from our customers. We have historically referred to this industry dynamic as prepaid. This is an industry-wide strategy that most of our customers and our competitors utilize.

在我提出我們 2026 年目標之前，我想先強調一項影響本公司財務表現的議題。一般而言，American Vanguard 會在第四季向客戶收取大量現金。我們歷來將這種產業動態稱為預付款（prepaid）。這是一項全產業策略，我們的大多數客戶與競爭對手都會採用。

Due to the financial strain that one of our competitors was under, the channel pulled back from prepay programs across the market. This has led to an increase in our nominal debt levels year over year as we typically allocate this capital to paying down debt at year-end. David will have more on this in his prepared remarks.

由於我們某家競爭對手承受財務壓力，通路在整個市場上縮減了預付款方案。這使得我們的名目負債水準年對年上升，因為我們通常會在年底將這筆資金用於償還債務。David 會在其事先準備的講稿中進一步說明。

As we wait for an improvement in the agricultural economy, our business improvement plan should allow us to improve adjusted EBITDA as compared to 2025. We expect to generate adjusted EBITDA of $44 million to $48 million in 2026 on sales of $530 million to $550 million.

在等待農業經濟改善之際，我們的業務改善計畫應可使調整後 EBITDA 較 2025 年提升。我們預期 2026 年在銷售額 5.30 億至 5.50 億美元的情況下，產生 4,400 萬至 4,800 萬美元的調整後 EBITDA。

We are excited about the prospect of better performance in the coming years as we continually launch new products. We believe future earnings power is substantially higher and will allow the company to pay down its debt and make investments in areas which will lead to long-term growth.

隨著我們持續推出新產品，我們對未來幾年表現改善的前景感到振奮。我們相信未來的獲利能力顯著更高，將使公司得以償還債務，並投資於可帶動長期成長的領域。

I'll now turn the call over to our CFO, David Johnson. David?

接下來我把電話會議交給我們的財務長 David Johnson。David？

Thanks, Dak. Good afternoon, everyone. I would like to start by thanking the team for all the hard work that went into completing the debt refinancing. After looking at numerous structures, and holding conversations with a broad cross-section of the financing sector, we selected a term loan structure that includes no equity dilution, provides stability in difficult industry conditions and gives us the option to lower our debt as our results improve.

謝謝，Dak。各位下午好。我想先感謝團隊為完成債務再融資所付出的所有辛勞。在檢視多種架構並與融資領域的廣泛人士交流後，我們選擇了一種定期貸款（term loan）架構：不造成股權稀釋、在艱困的產業環境下提供穩定性，並且在營運成果改善時，讓我們有選項降低債務。

On another positive note, I'm also very pleased to report that we have remediated all the material weaknesses that were identified at the time of the 2024 audit, a Herculean feat, in light of the refinancing work as well as the normal audit work. This is a huge accomplishment in a very short time frame. We are pleased to report that our Form 10-K for 2025 will be filed today.

另一個正面消息是，我也很高興報告：我們已補正 2024 年審計時所辨識出的所有重大缺失（material weaknesses）。考量到再融資工作以及正常的審計作業，這可說是一項艱鉅的成就。這是在非常短的時間內完成的一項重大成果。我們很高興宣布，我們 2025 年的 Form 10-K 將於今天提交。

Now turning to our financial performance for 2025. The company generated sales of $515 million for 2025 compared to $547 million in the prior year, a decrease of 6%. This was slightly below our target range of $520 million to $535 million. Sales in our international operations were down 14% due to elevated channel inventories in Mexico and a persistent drought in Australia, while sales in our US crop business were similar to sales in the year-ago period.

接著談 2025 年的財務表現。公司 2025 年營收為 5.15 億美元，較前一年的 5.47 億美元下降 6%。這略低於我們 5.20 億至 5.35 億美元的目標區間。由於墨西哥通路庫存偏高以及澳洲持續乾旱，我們的國際業務銷售下滑 14%；而美國作物業務的銷售則與去年同期大致相當。

On a positive note, for the US crop business, it seems that destocking has substantially abated and products on the ground are now approximately equal to our sales, indicating a level -- a low level of channel inventory in the domestic market. However, customers have not yet shown an inclination to buy inventory and continue buying on a just-in-time basis.

正面來看，就美國作物業務而言，去庫存似乎已大幅緩解，且目前在市場端的產品量大致與我們的銷售相當，顯示國內市場的通路庫存水位——庫存水位偏低。然而，客戶尚未展現購買庫存的意願，仍持續以即時（just-in-time）方式採購。

Our specialty sales improved by 10%, driven by securing a joint development agreement, our business-to-business sales, along with growth for our mosquito vector solutions. Our gross profit margin is trending in the right direction with this metric increasing to 29% in 2025. At the same time, our OpEx as a percentage of sales, slightly decreased to 27%.

我們的特殊品（specialty）銷售成長 10%，主要受惠於取得一項共同開發協議、我們的 B2B 銷售，以及蚊媒防治解決方案的成長。我們的毛利率趨勢朝正向發展，該指標在 2025 年提升至 29%。同時，我們的營業費用（OpEx）占銷售額比重小幅下降至 27%。

Given some of the initiatives that we are working on, we expect further improvements in 2026 and beyond for both metrics. For the full-year 2025, we generated $39.2 million of adjusted EBITDA as compared to $39.1 million in the prior year. Our cost containment efforts were partially offset by a softer sales environment, but we helped ourselves by improving our manufacturing performance.

鑑於我們正在推動的一些措施，我們預期 2026 年及之後這兩項指標都將進一步改善。2025 全年，我們產生 3,920 萬美元的調整後 EBITDA，較前一年的 3,910 萬美元略增。成本控管努力部分被較疲弱的銷售環境所抵銷，但我們透過改善製造表現也提升了自身成果。

Now turning to our balance sheet. Our single largest headwind at the end of 2025 was the difference in prepay as compared to 2024. The company collected approximately $50 million less in prepay in 2025, which resulted in slightly increased debt at year-end.

接著談資產負債表。2025 年底我們面臨的最大單一逆風，是預付款相較於 2024 年的差異。公司在 2025 年收取的預付款約少了 5,000 萬美元，導致年底債務略為增加。

We plan to further decrease our net working capital this year and continue work on this area going forward. I believe that we can operate this company more efficiently in the future as a result of the experienced supply chain leaders we have put in place in 2025 as well as through modern management techniques and software packages we are implementing that will allow us to react more quickly to industry conditions.

我們計畫在今年進一步降低淨營運資金，並在未來持續推動此領域的工作。我相信，憑藉我們在 2025 年所引進的具經驗供應鏈領導團隊，以及我們正在導入的現代化管理技術與軟體套件，我們未來能更有效率地營運公司，並能更快速因應產業情勢。

With respect to capital spending, we spent approximately $4 million in 2025. We will likely spend more than that in 2026, but will remain in the $5 million to $10 million range.

就資本支出而言，我們在2025年約支出400萬美元。我們在2026年的支出很可能會高於此，但仍將維持在500萬至1,000萬美元的區間。

With that, I'll turn the call back to Dak.

接下來我把電話交回給Dak。

Thank you, David. Before opening the call to questions, I would like to take a moment to reflect on what has been a challenging but transformational year for American Vanguard.

謝謝你，David。在開放提問之前，我想花一點時間回顧一下，對American Vanguard而言，這是一個充滿挑戰但具有轉型意義的一年。

As most of you know, 2025 was my first full year at the company. The last slide of the presentation titled Plan 2030 shows where American Vanguard was and where it is going. As we achieve these goals, I believe we will generate higher revenue, better EBITDA and more cash flow.

如各位多數人所知，2025年是我在公司任職的第一個完整年度。簡報最後一頁、標題為「Plan 2030」的投影片，展示了American Vanguard過去的位置以及未來的方向。隨著我們達成這些目標，我相信我們將創造更高的營收、更佳的EBITDA以及更多的現金流。

In closing, I would like to thank the team for all their hard work that was accomplished in 2025. But I will also like to challenge everyone to do even more in 2026 as I believe we continue to have a bright future in front of us.

最後，我要感謝團隊在2025年完成的所有辛勤工作。同時，我也想挑戰大家在2026年做得更多，因為我相信我們的前方仍有光明的未來。

With that, I'll open the call to questions. Operator?

接下來，我們開放提問。接線生？

(Operator Instructions) Mike Harrison, Seaport Research Partners.

(接線生指示) Seaport Research Partners 的 Mike Harrison。

Was hoping that maybe we could start just with Q4 and kind of coming in below expectations on the revenue line as well as the EBITDA line. It sounds like most of that was on the international side, but I was hoping you could just give a little bit more color on what dragged down revenue.

我希望我們可以先從第四季談起，因為營收以及EBITDA都低於預期。聽起來主要是國際業務的影響，但我想請你們再多提供一些細節，說明是哪些因素拖累了營收。

And in terms of the margin performance, with that in line with expectations, and it was just a revenue shortfall that led to the EBITDA shortfall, or were there some issues on the cost side as well?

另外就毛利率表現而言，既然與預期一致，那麼是否只是營收不如預期導致EBITDA不如預期，還是成本端也有一些問題？

Okay. Thanks, Mike, for the question. Yes, I mean, it was both international and domestic. I would say that the domestic was primarily due to the US crop related to [Met TAM] sales from lower potato acres and demand for those products, specifically Met TAM. So insecticides were also down in the US. But we did have some positive improvements in our herbicide sales with the ZALO. So that was a big positive as well as impact in the fourth quarter.

好的。謝謝你的提問，Mike。是的，我的意思是，國際與國內都有影響。我會說國內主要是因美國作物因素，與[Met TAM]銷售有關，因馬鈴薯種植面積下降以及對這些產品的需求降低，特別是Met TAM。因此，美國的殺蟲劑也下滑。不過，我們的除草劑銷售在ZALO方面有一些正向改善。所以這也是第四季的一個重大正面因素與貢獻。

Internationally, as David mentioned, is primarily related to the drought that we saw in Australia as well as channel inventory in Mexico. They've not gone through the destocking process to the extent that the US has.

在國際方面，如David所提，主要與我們在澳洲看到的乾旱，以及墨西哥通路庫存有關。他們尚未像美國那樣在去庫存方面進行到同等程度。

From a cost containment standpoint, I think we did a really good job in Q4. And our manufacturing expenses were also in good shape in Q4 as well as we continue to do improvement there. And I think that is controlling the things that we can control and controlling them well. So we did see improvement in the cost controls and manufacturing efficiencies in the fourth quarter.

就成本控管而言，我認為我們在第四季做得非常好。而且我們的製造費用在第四季也維持在良好狀態，同時我們持續在這方面改善。我認為這就是把我們能控制的事情控制好，並且控制到位。因此，我們確實在第四季看到成本控管與製造效率的改善。

All right. And in terms of your long-term transformation plans, those have been in place for a while. I'm just kind of curious on how the LA closure and the headquarter relocation fit in?

好的。另外就你們的長期轉型計畫而言，這些計畫已經推行一段時間了。我只是想了解，洛杉磯據點關閉以及總部搬遷在其中扮演什麼角色？

Are those -- were those kind of contemplated when you initially came out with this 15% EBITDA margin target? or should we think of these as maybe accelerating the process of achieving that 15% target?

這些措施——在你們最初提出15% EBITDA利潤率目標時，是否已經納入考量？或者我們應該把它們視為可能加速達成15%目標的進程？

Good question. When I first came on, those two were not directly part of the transformational plan. As we've transitioned the transformation plan into our business improvement plan, our business improvement initiatives, the LA facility rationalization became more apparent as we started to analyze our capacity utilization across the board and started drawing up plans to move production from the LA site through the access site.

好問題。我剛加入時，這兩項並未直接納入轉型計畫。隨著我們把轉型計畫轉化為營運改善計畫、以及各項營運改善措施，在我們開始全面分析產能利用率，並擬定將生產自洛杉磯廠區移轉至access廠區的計畫時，洛杉磯設施的合理化就變得更為明確。

So that was not initially part of the initial transformation plan, nor was the moving of the office the headquarters. So those have been initiatives that we've undertaken subsequent to the transformational plan.

因此，這一點一開始並不在最初的轉型計畫中，總部辦公室搬遷也不是。所以這些是我們在轉型計畫之後才推動的措施。

The initial transformational plan did have some very good aspects around the digital transformation commercialization -- rationalization of product portfolio and rationalization of -- our changes in our go-to-market structure in different areas around the world, specifically in Brazil, and some in Central America as well as our growth strategy for our specialty, our non-crop business. Those are still ongoing, along with various other initiatives that came out of that.

最初的轉型計畫確實包含一些很好的面向，例如數位轉型的商業化——產品組合的合理化，以及——我們在全球不同地區的市場進入（go-to-market）架構調整，特別是在巴西，以及中美洲的一些地區；同時也包括我們在特殊領域、非作物業務的成長策略。這些仍在持續推進中，並且還有其他各項由此延伸出的措施。

Did I answer the question, Mike?

Mike，我有回答到你的問題嗎？

Yeah. That's perfect. And then I had kind of two questions related to cash flow and to the debt structure going forward. It is great to see that you guys have the new term loans in plan -- in place. But I'm curious, are there any cash proceeds associated with the closure of the Los Angeles facility or the headquarter migration?

有的。非常好。接著我有兩個與未來現金流與債務結構相關的問題。很高興看到你們已經把新的定期貸款安排——到位。但我想了解，關閉洛杉磯設施或總部遷移是否會帶來任何現金收入？

Proceeds, you mean from the sale of it or from the --

你說的收入，是指出售它所得到的，還是從--

Are you -- are there assets or land or anything that you'll be able to sell?

你的意思是——是否有資產、土地或任何東西可以出售？

No, we'll actually continue to operate the LA facility as a formulation and warehousing site going forward. So it will continue at a much, much lower scale of operations. There will be no sale, at least initially. There may be some sales of equipment long term as we get to that point. But at the moment, we're not planning to sell any equipment there. We could down the road.

沒有，我們未來仍會把洛杉磯設施作為配方製造與倉儲據點持續運作。因此它會以更、更低的營運規模繼續運作。至少在初期不會出售。長期來看，當我們走到那一步時，可能會出售部分設備。但就目前而言，我們沒有計畫出售那裡的任何設備。未來有可能。

And as far as the office space, it was a leased space, high rent, not very conducive to running a business, quite honestly, spread out. And so I'm really looking forward to moving in the new headquarters, which is more collaborative work, modern work environment for the team.

至於辦公空間，那是租賃的，租金很高，老實說並不太適合經營業務，而且空間分散。因此我非常期待搬進新的總部，那將是更具協作性的工作方式，也為團隊提供更現代化的工作環境。

So it's just -- it's down the road in Irvine and looking forward to that. But there's no pickup in proceeds on that, except for the headquarter is $0.5 million here savings from the lease and then the savings on LA netted out is about $4 million annually going forward.

所以就是——就在Irvine那邊不遠處，我很期待。但這不會帶來任何出售收入；除了總部方面，租約可節省50萬美元，另外洛杉磯相關的節省在扣抵後，未來每年約可節省400萬美元。

Right. Understood. Okay. And then just in terms of cash flow, I understand the prepayments were unusually low in Q4 and that kind of dragged down what cash flow looks like in '25. But I'm curious, with the software that you're planning to roll out and your expectations around working capital for 2026, I'm just curious, is it possible that we get to free cash flow positive in 2026, given your expectations for CapEx in the $5 million to $10 million range?

好的。了解。好。最後就現金流而言，我理解第四季的預付款異常偏低，這在某種程度上拖累了你們2025年的現金流表現。但我想請教，考量你們計畫導入的軟體，以及你們對2026年營運資金的預期，我想了解：在資本支出預期落在500萬至1,000萬美元區間的情況下，2026年是否有可能轉為自由現金流為正？

I believe so, Mike. That's -- I believe so, yes. I think when you look at our adjusted EBITDA projections, less our interest, in CapEx, we should be in a favorable cash flow position for 2026.

我相信是的，Mike。那個——我相信是的，沒錯。我認為，當你看我們調整後 EBITDA 的預測，扣除利息與資本支出（CapEx）後，我們在 2026 年應該會處於有利的現金流狀況。

Rosemarie Morbelli, Gabelli Funds.

Rosemarie Morbelli，Gabelli Funds。

I was just wondering, Dak, when you talked about the $100 million of the midterm coming in from new products. When I look at your slides, at the moment, you are only showing one example as the Bullhorn insecticide.

我只是想請教一下，Dak，當你提到中期將有 1 億美元來自新產品的貢獻。我看你們的投影片，目前你們只展示了一個例子，也就是 Bullhorn 殺蟲劑。

Can you give us a little more details as to what you expect? I mean is that going -- are your new products also coming from fungicide for herbicide? And then what is your definition of midterm?

你能否再提供一些你預期的細節？我的意思是——你們的新產品也會來自殺菌劑或除草劑嗎？另外，你對「中期」的定義是什麼？

Great questions, Rosemarie? The -- there's more products coming, and they're -- of course, as I mentioned that -- but they're coming from insecticides and herbicides primarily. Those are the main focus based upon the historical nature of the company, as we're taking the assets that we have in hand and utilizing them going forward with new formulations and new products, and that's where the new products are coming from.

很好的問題，Rosemarie。——還會有更多產品推出，而且它們——當然，如我提到的——主要會來自殺蟲劑與除草劑。基於公司過往的特性，這些是主要聚焦領域；我們會把手上既有的資產加以運用，透過新的配方與新產品向前推進，而新產品就是從這裡來的。

New products are classified or defined as less than five years from launch. So that's how we're going to define them.

新產品的分類或定義是：距離上市未滿五年。所以我們會用這個方式來定義。

The -- and the second half of your question was?

——那你問題的後半段是？

Well, I was just wondering, $100 million compared to your current revenue expectations of $540 million at the midpoint for next year. That is a big increase.

嗯，我只是想說，1 億美元相較於你們對明年營收的目前預期（中位數約 5.4 億美元），這是很大的增幅。

And so I was wondering, first of all, how comfortable you are with that $100 million? And then what is the timing? You say midterm? Can you quantify midterm?

所以我想先問，你對這 1 億美元有多大把握？再來，時間點是什麼？你說中期？你能量化一下「中期」嗎？

Yeah. I am confident on the $100 million that has been sensitized somewhat based upon experiences that I have with products -- bringing products to launch. So I am comfortable with the $100 million. Medium term is defined from 2030 to -- around 2030 to 2031 is what we're talking about on that standpoint. So not around the corner.

是的。我對這 1 億美元有信心；這個數字也已根據我過去把產品——推向上市的經驗，做過一些敏感度調整。所以我對 1 億美元感到放心。中期的定義是 2030 年到——大約 2030 到 2031 年這個區間。所以不是近在眼前。

As I've expressed in previous calls, we got ourselves in a whole to launch or bring a new product to launch. Generally speaking, it takes around three years minimum to go through the regulatory process, to get it to a registered product that we can market and sell. So that's three years from idea creation to registration.

如我在先前的電話會議中所說，我們在推出或把新產品推向上市這件事上出現了空窗。一般而言，至少需要大約三年走完法規流程，才能取得可供行銷與銷售的登記產品。所以從構想到完成登記，大約是三年。

We've got in a hold due to the focus that we had of an organization on the SIMPAS technology. So we really only launched one product in '25 in the US. And otherwise, it's been pretty bare. And that's the reason we're seeing an uptick in the new product sales starting in '27, '28 -- mostly in '28 as we put these products into the portfolio for launching.

由於組織把重心放在 SIMPAS 技術上，我們因此出現了停滯。所以我們在美國於 2025 年其實只推出了一個產品。除此之外，幾乎是相當空白。這也是為什麼我們會在 2027、2028 年開始看到新產品銷售上升——主要是在 2028 年，因為我們把這些產品納入產品組合並準備上市。

And -- okay. That is very helpful. And you talked about the high future earning powers of the company. So currently, based on the midpoint of 2026 expectations, your EBITDA margin is about 8.5%.

——好的。這非常有幫助。你也談到公司未來很高的獲利能力。所以目前以 2026 年預期的中位數來看，你們的 EBITDA 利潤率大約是 8.5%。

So how high can it get? And what type of top-line growth do you need to get there in addition to all of the steps you are taking lowering cost?

那它最高可以到多少？除了你們正在採取的所有降本措施之外，還需要什麼樣的營收成長（top-line growth）才能達到？

Good question. We've had a steady goal of getting to 15% over the long term, and that's still a goal. That's still a goal. We have a lot of things to the math to come into fruition to make that happen, not only driving sales up around 4% to 6%, would you say? We have in our planned 4% to 6% compounded annual growth rate and as well as reducing our cost structure or maintaining our cost structure.

好問題。我們長期以來一直有一個穩定的目標：長期達到 15%，這仍然是目標。這仍然是目標。要讓它實現，還有很多事情需要在數字上落地，不僅要把銷售推升到大約 4% 到 6%——你會這麼說嗎？我們規劃的複合年成長率（CAGR）是 4% 到 6%，同時也要降低我們的成本結構或維持成本結構。

I still think that 27% is considerably high -- are relatively high, especially for our organization, and where we sit in the model of the crop protection industry. So we need to work on reducing that either as a combination of increase in sales or reducing our cost.

我仍然認為 27% 是相當高——相對偏高，尤其是對我們的組織而言，以及就我們在作物保護產業模型中的定位來看。所以我們需要努力降低它，方法可能是銷售增加與成本降低的組合。

I think manufacturing efficiencies, we have the ability there. And we will continue to show improvement there just by the sheer focus of the team from Nolteanous' team in the manufacturing and Jared's team in operations, focusing on controlling costs, better planning. Those going together will increase our profitability at the gross-profit level.

我認為在製造效率方面，我們有能力做到。而且我們會持續在這方面展現改善，單純因為團隊的高度聚焦——Nolteanous 的製造團隊以及 Jared 的營運團隊，專注於成本控管與更好的規劃。這些結合起來，將在毛利層級提升我們的獲利能力。

(Operator Instructions) Okay. We have no further questions in queue. I would like to turn the floor back to management for closing remarks.

（接線員指示）好的。目前等候隊列中沒有其他問題。我想把時間交還給管理層作結語。

Yes, I would like to finalize by saying, by taking the necessary steps to rationalize our manufacturing footprint, focusing on new product development, creating demand for our products by listening to our customers and continually being mindful of our cost, we will generate greater sales, more profitability and cash flow, creating a long-term value for our shareholders.

是的，我想最後總結：透過採取必要步驟來合理化我們的製造版圖、聚焦新產品開發、藉由傾聽客戶來為我們的產品創造需求，並持續留意成本，我們將帶來更高的銷售、更高的獲利與現金流，為股東創造長期價值。

And with that, I'll thank you for your time today. Have a good day.

那麼，感謝各位今天撥冗參與。祝各位有美好的一天。

Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束，您現在可以掛線。感謝您的參與。