American Vanguard (AVD) 13 Nov 222022 Q3 Earnings call transcript

Welcome to the American Vanguard Corporation's Third Quarter 2022 Financial Results Conference Call and webcast. [Operator Instructions]. I would now like to turn the conference over to Mr. Tim Donnelly, Chief Administrative Officer.

You may begin, Mr. Donnelly.

welcome months American earnings and quarter XXXX Rob X and review. you, everyone Vanguard's to third Thank

call. Our speakers Johnson; today Officer, Officer, in Eric will questions, Bob be Chairman our answering on Financial financial company and discussing Also, Trogele, Chief is SEC, additional provide Officer, which hand. Chief the its performance we XX-Q be is our David will that our by and also this way assist of Wintemute; later Form to in will detail filing Operating Chief Executive housekeeping, today the on with

Before assumptions cause go information Such Slide Such beginning, harbor management's actual the are and by may may let's various X. just from current our on expectations. information. and take forward-looking and a company's and management statements company moment reminder uncertainties to the that discuss to results subject to are In based factors risks differ call, today's to estimates safe on various competitive I necessarily weather conditions, the filings. statements include can best not call SEC represent call Eric? reports the of by and the will Eric the company. judgment All the this and changes to as information such and forward-looking date company's updated regulatory that, policy, detailed Wintemute, in of company's as be pressures With other in over risks turn

today. and Thank you us all you, joining thank Tim, for of

Slide X. to Moving

agriculture, start off at customers, and inflation, take the forward. manage the for to high increase our first, acknowledging agenda like today's our by to listed operating drive factories to have to work But safely prices We our precision, continue AMVAC levels of innovations call. terrific of care team very the I'd

quarter. expect financial the excellent our results delivered maintain in to have We and momentum fourth

in our we our well strength Additionally, our managing X.X times. and Simply confidence million quarter, the indicating our business. put, of business of challenging are stock during we third shares the repurchased

the used harvested months and by the increased crop, year. high commodity and Bidrin performance strong economy. X during to and higher to move prices crops discuss Dacthal Let's farm Generally line and soybean X a cotton for we're year-to-date, on our products are continued experienced an control Folex for to for first respect supporting led top despite corn, weather. of With acres for on for to shortage of which high-value Slide XX% due are speaking, inventory pest our sales up wheat X-month We the wheat control is Aztec QX. period cotton domestic favorable

spite in we garden reduced sales to addition, products. to demand in the In drought the year-to-date XX% soil to for lawn increases. consumer price U.S. products, strong are west, conditions recorded due non-crop, primarily fumigant of largely due respect of our down sales and With

the to applicators more side, On consumers returning rose positive work. to with sales professional

are adulticide our tropical tomorrow which following positioned mosquito storm well are Ian. Also, landfall with late expected is Nicole, We tracking night. we Hurricane to make

to and have lower in travel Nicole at the miles is forecasted precipitation hour, Carolinas. predicted While per should Florida, considerable Ian, which X result in Georgia winds than to

of And products and to grew recorded XX% up growth business and profit XX% XX% growth sales with proprietary XX%, sales net bananas. profit, counter. business business strong Central by at by Mexico Brazil, pineapples sales margin grew and finally, nematicide improvement XX% Agrinos, recorded up XX% used in of Further, part sales which American and grew in sales international Further, Australia due which XX%. on of was up our and soil led by recorded from fumigants. our XX%; to Our gross our year-to-date, our gross led XX% sales gross XX%

performance. first current both impact let's will and first of short have outlook 'XX, year on conditions as full glance an our revisiting a Before midterm taking they focus on and

supply, food high earlier, mentioned farm global demand are with economy. coupled scarcity arising and a I As strong commodity driving strong prices from

to Turning X prices corn years. note the past of we the trend over upward Slide X,

years X the see, corn same bushel. year and commodity the bushel; $XX.XX years. this bushel; rose bushel; As activity bushel. XX% tend is rose This to at drive a prices ago, time increase were planting at trend $XX.XX X and procurement was X is before it harvesting a at for they past X $X.XX the prices 'XX now you $XX.XX $X.XX both equipment. period. At We a in they're X over and $X.XX inputs season, per it per to a per soybeans per XXXX, now can see XX% similar ago, year rise with That's soybean per to over ago, crop and over Higher years. bushel;

this to evening procurement normalcy began be first XXXX, appeared over by which trends and the distribution our distribution quarters. of course level returned pace at for the AMVAC's at the prospects in bullish Despite greater investment channel levels. planting of out over second low a And channel season. third the quarter are torrid the partners and gate, to products are However, XXXX inventories at on farm for

will point. Slide you X, this show which further me highlight Let

XXXX in significant Iowa our useful never in near becomes U.S. to and It's and year. the acre about is an in $X $X.X bullish above see think why economy. the this other economy into very billion corn on we was which consider to illustrating a And are At you tracking team market. of industries. experiencing is in factors of all XXXX, That forecasting than affecting $XXX we're I very is As calculation about driver best better here, previous XXXX. global less Inflation revenues, profitability, farm billion a translates cost brewers. nearly back that, state for in high Again, profits currently in the the high our and Iowa. point profits

Slide the exchange raise past many rate see interest raising early took Because dollar can you months. currencies. the aggressively had over a favorable enjoyed rates those As comparatively the the against action been on has X Fed Fed X, to rates,

second currencies At the to to fully price chain Vanguard, dollar. against margins. has we're of American to shipping both the ground and of are countries increases. which the X North seeing state through are Further, we strong regain With demand inflation in for straight availability we been ability factories other prices dollar lost and Having economy vessels strong However, improved a ago, demand. our able improving. to have as the build to-date, freight Slide of been at we stable prices high operate many stand commodity manage followed and suit. depicted supply are has enjoying and while manufacturing X been certain on years And essential with farm a make inventory largely have sell drop American able sufficient seeing we've year the fluctuating a X, assets adjustments not been returned in-season in to containers to autonomy. These able

availability geopolitical However, restrictions phosphorus, intermediate the some originate raw for are by affected materials affecting or considerations, price some that example, key of pandemic in our of and countries products.

We short, to from strong performance. are peer much inputs can we we be products strong of commodity incentive agricultural value. poised continue there that while In demand. our through taking water factors time the and crop short River to glitches is But distribution in are contravalent believe for it in maintain channel levels Further, to to prior the art enable all continue inflation, equipment. is our should this our and I brand and such inputs to we is both that and order science. we record Thus, our be meet in prices, full Geopolitical In that lifting the potential the to unchanged as began a positioning 'XX. measures as activity ensure that expected Mississippi sector us as chain, growers necessary low is can an available are in targeting upcycle giving receive XXXX call. XXXX the to added tell you supply term, performance may

'XX let's turn target is scorecard. to This Slide So our X. performance

we to this we before. XX% to showed seen interest end our And to at XX% XX% interest that further the slides QX. the just in XX%; higher have for operating seen last we're the since You've however, revenue are we're Debt expenses -- to we EBITDA, XX%; take margins 'XX, XX%; months X below interest months, have at X% with we XX%, Tax expecting X%, the at rate are gross growth costs end the any the year. X.Xx, acquisitions. decrease expecting to for expecting that that the to at down X of year at currently at to over of

far is so XX%. say, stock about million should for income up and the Net and is up I year, this $XX have, We year. dividends, repurchase EBITDA spent between XX%

David, analysis. So turn with financial over for that, to you this I'll

Thank you, Eric.

to XX, please. on Slide move Let's

$XXX International to last quarter Moving by company's million sales to $XXX performance to our of our to Within net U.S. prior accounted our sales sales the compared year. by of XX% comparable for Slide third that year. XX. And overall the X%. increased X.X% regard versus for international With total sales the as sales XXXX, last million year. to improvement, XX% were sales increased

absolute focusing to margin in from increased XX%. our both has for margins gross U.S. result lower cost improved crop to interest by the On by business gross and to our and increased on higher Overall, timely price products outbound expense. profit to profit goods, recorded of inflation With freight performance, cover implementation increase on was of improving inbound profit. XX% performance Turning XX. crop largely increases gross Slide XX% regard X%. a of in sales This

goods. improvement gross down result to XX%. been consolidated absolute impact performance has increases comparatively across impact conditions. Slide sales, factory non-crop global X% to company The on sales quarter on saw improving The raw significant strong was pressure margin. gross sales price order with regard third associated a graph we where at sales, international successful With of particularly aimed possible, recover increase contended gross of our margin The an have margins. cost price materials, reduced products. at and absolute of competitive in on profits, by X% on gross They shows products the as international of implementing logistics range that given cost the in on costs U.S. approximately effective XX Our X% in lower-margin business a increases dollar by were implementing

You amounted sales. in third of the costs quarter can that see XXXX, X.X% to factory of

compared quarter though On show to million periods. this excellent XX, year operating increased both performance factory last by were activity stronger, they Slide year. the was Our $X.X expenses for that we

for were XX% both and third XXXX. of quarter the sales expenses of XXXX Our

and meetings seeing with of we advertising agent administrative And we a And incurred expenses. business travel commission on concomitant are in strong a spent is face-to-face on finally, increase costs and range spent more we Further, very to where third-party the as expenses. higher and had returning the support We Brazil, more costs. counterparties more, quarter, we marketing. more

sales U.S. an our As of line. was our offset, lower, lower a as result associated primarily volumes freight expense Metam of product with

to to to effective in income of for of driven XXXX. third of our increase rising rates. accruals From last associated growth increased we registration our tax As quarter-over-quarter of and regulatory impact the our quarter have this businesses, you you in profits the benefits our in this slightly came costs, of factors: acquired expense XX, businesses that of warehousing international million tax sales taxable months, will increased manufacturing related did XX prior were net Operating assets, strong of which costs, are cash XXXX. performance improved and accruals net to at compared Interest XX% quarter XX.X% consideration net the the third last than on onetime see expense, as year, on taxable result XXXX, reduced our growth, factors, as freight the our XX.X% increase the costs a by by these and Offsetting up the to We and these factors generate gross a capital to jurisdictions of our U.S. of lower tax mix average proxy and of interest to income invested program our margins jurisdictions X $X.X increased to generated that XX% debt to our compared increased profits freight for expense to managed as in can paid the level dividends both exciting stock to continuing the There of X tax XXXX net were sales are has a as in in XX%. increased XX% application end the history. was XX%. XXXX X million Australian the income third not On same expenses period up terms from interest contest biggest as operating in due of the rate and was higher generated. as include where from operating income of Overall, the compared that outbound the were are to of First, first for XXXX, months sales with quarter primarily see operations international has The the contingent absolute the rate working compensation, generated executed international for XX%. our compared in XX% for inflation grew XX% reoccur were the where year. and to the systems, primarily the international in during have we in X X% develop compared last incentive Overall, reflecting XXXX costs was Operating year. quarter All sales precision increased and increased business domestic strongly, recorded XX% affecting business Slide XX.X% up together Slide face the Both XX, repurchase short-term on contributed while performance. first seeing business XXXX XXXX improved of reported quarter months third XXXX. and increased perspective, and higher that XX.X% by of in XXXX. company's first year. mainly in months $X.X

on banks that cycle and Now XX at of X debt the of EBITDA our level actions. agreement capital to The worked the of an many balance us capital allocation our of the for want by on range of the The my acquisitions. group I through company's manage credit of impact during drives we've a strong turn higher with generally that reduces attention allows and is adjusted X X.Xx. the end We many under year. to working facility Slide debt that focus with end to managing focus company's We the capital to months of bank facility with credit annual between the to sheet model shows to years. X average allocation. at expands the aim driven first the

have to worked our under fund for In bankers. has on line depend acquisitions. grown and through addition, over availability history well alliance of the such the acquisition extremely our the we company This with

historically XX% income. paid on of sustainable dividend paying a focused and We are have net approximately

such only faced We when have diverged from that COVID. record circumstances with extenuating as

shares been We year-to-date outstanding million committed to XXXX $XX managing number approximately and invested to million of have the X.X repurchase shares.

is years alliance. capable repurchase time, are the technologies we we'll count We the And full XX and counter show on expect factories working to complete from to fourth growing end company's That XXXX, months achieving our annual the EBITDA, of NewLeaf all-time pleasing than safe million expressed shows It on which to the the earlier for and levels we compound to season. take of the announced adjusted in Brazil. sales. focus. On business actions that our XX with, portfolio current and have accelerated conference efficient the green note compared at $XXX challenges of final the at and our to at continue key to this share of we also example, made $XXX our we annual higher in are of in Slide Inventory lead inventories ended for XXXX XX, ensure XXXX-'XX cycle continuing inventory as past $XX growing year, to year. soybeans rate XXXX. decisions close during to inventory product significant September million $XX We're can of reported recently procuring percentage XXXX, growth is And we management ag is is we proprietary next September development the we as solutions prior high growth prudent EBITDA trailing as was see On a We're our a ended our success. at hold the business. months supporting Ultimus XX%. arrangement and million September of graph XX, commercialization achieved XX, future for than monitored million The million our our strong to a $XX have on Investment conditions, demand the progression XX, that last in growing secure the and Slide of same the the provide of hard inventories our share you XX-month the quarter registration years' SIMPAS, that times, to product XXXX. in call. logistics,

have discussed. metric that make You long-term this to just line the that us good, conditions our market is for can see impelled important short-term notwithstanding business trend decisions

As with the consolidated company uses credit as -- under liquidity, determine to facility the agreement in regard agreement, the Slide you to XX, terms the capacity. can of borrowing see, on defined EBITDA the EBITDA

increased X Adjusted by of the time improved XX%. first months on XX%. from as XXXX the sales EPS has GAAP increased XX%. summary, XX% Slide months Adjusted of for by has of last X XX%. of has XX% year. in compared increased $XXX to XXXX, million $XXX $XX Availability bank X XX, by included to million months last has and first also was notwithstanding EBITDA as used sales increased X XX, income the first to In EBITDA in to net this months. EBITDA by stock the as to for quarters our higher compared improved, XX, debt Our XX debt last year. has XXXX. compared consolidated for $XX quarters the the was September closing This ended XXXX, At trailing to XX, to $XXX million at million September September $XX million the million million the over X year. $XX have this XXXX, repurchase

prior the that, XXXX I XXX,XXX acquired to back to compared have Eric. year. the will period in of as With during hand We same million X.X shares

David. you, Thank

which Moving traditional element on to of our growth Slide strategy. growth and includes M&A innovation our The portfolio, XX, our is core activities. X product our new the

a initiatives more Solutions of of that regional we consist portfolio will products use Green Our globally. than focus to XXX expand

advanced apply R&D And management products. to offer inputs ability SIMPAS, we the to crop precision through prescriptively the begun entire with industry through basic innovations new simultaneously. pest molecular create addition, technology, to discovery In solution green we've our regard multiple application

We portfolio wide to solutions. expand of product are growers our variety a SIMPAS diligently to working offer

Additionally, software. we are for multiple applications documentation Ultimus developing

core this products, respect development through to We'll per our internal growth through both growth As Slide accomplish and track on acquisition. with XX, we are meet XXXX. targets to our

products, our herbicide as of our of instance, to For impact acquisition, commanding are potential and generating robust. innovation herbicide mixture revenue growth, developed margins our we post-emergent Year-to-date, which XX. With respect market. looked enabling acquisition targets, we which markets share we XX over still to the have of process the part review us good evaluating expand are at are remained

rigorous we or ensuring past, in are the have businesses in selective, new As mentioned exceed meet and our acquisition hurdles. that strategic or we products

Turning to Green Solutions.

you are can on see growth to As achieve Slide targets. our poised we XX, multiyear

our green soil take of improve and to which alliance over has XXX a enzymes, which plant's to ability up we products, line of announced nutrients. developed portfolio products, health biological recently addition our NewLeaf, with a that In microbials produce

key the appears products on called Slide Terrasym NewLeaf XX. of One

on brief Focus that bacteria methanol the how Here, can survive, Terrasym over discuss and thrive preferentially we bacteria. carbon sequester group methanol to as can source special a of PPFMs; is efficiently use and works.

association start plant enhance established between as symbiotic bacteria root beneficial molecules As food finally, build bacteria itself, a nutrients, methanol form release and source response. bacterial the plant to the And the the and which to forms. is bacteria, microbes consumed and plant's plant's with specific a population by the relationship

and corn, enhance Terrasym where Slide for use structure we serves well health. in suited especially plant XX, As root is it to in present

XX, we tracking systems Ukraine we our our through time system. that plan and of have technology fact, Brazil. the XX X make element Terrasym This use in Terrasym systems, to growth with in had third Slide SIMPAS in brings including for we to In strategy. been mind. Presently, in Ultimately, some X available use, SIMPAS us the

multiyear our this we Bear track is can on U.S. to targets from mind meet that see you for As only. growth Slide SIMPAS. XX, remained in

SIMPAS in Ag are Brazil, a We unit testing is largest the in currently which the world. market

growers counter this our recently As application time. to permits U.S. of in the This coming in soybeans relative short we hectares SIMPAS with Brazil. of use this is of the On XXX,XXX a in or Brazil a note, triple a proprietary over prescriptive one to nematicide announced, Brazil we label planting have upcoming should largest sales observe the in counter that the of within on obtained double new through season.

credit alliance with on Slide pleased of AMVAC finally, Rabobank SIMPAS. a carbon lender John of on that the and gain In embraces contributed Financial targets market joined pillars: This our growth team the and Green I new harvest Deere leading and greater traction AMVAC our shown enable financing summarized market, offer X-year acceptance as equipment. say we us have has addition, our on Solutions together Core, Precision. terms both Slide X SIMPAS as to to XX, and X.XX% to growth in And to even financial targets. am XX, should entire

mentioned I of variable call, are consistently performing the strongly at As the face and the in we of conditions. start

demand innovation open capacity continues and we'd while sheet questions total to maintaining are and are borrowing balance up high have. as With may self-investing to any poised address We that, to Rob? Further, the in a like shareholder into XXXX. Ag strong you up well cycle return. we

our ROTH question the [Operator line from Sweeney Instructions]. Capital. first with is And Gerard of

Obviously, on increasing top. like wanted sounds it the to start Just at XXXX. bullishness

a Just this the times? think wanted and are, maybe bit we how cycle where that, since been through may thoughts after where in and plays get little XXXX your to we several you you've be out

to Bob, good. But also there more any certainly, looks how go downward right to add the want move. long very any to obviously, our it's hard certainly years out, hearing you I'm I customers variables that not pick. the from happen. 'XX, of exactly People, now, can and a strong. they think I there's you of Well, look that? upcycles XXXX way color of course, no are think predicting more But see for

course, strong October commodity cycle, and factor, look play are, next there the quarter. Gerry, America on We really out the in first China the big second Ag there. think, North demand The that the for like I see for unknown, Well, South of what is time. and is U.S. through harvest challenges will a which America meaning will until

I other is think with price as going one major Russia issue conflict. is energy happens U.S. the replenishment Reserves, the where be Strategic the to

So kind we bit of unknowns. But those are strong a as a stated, of pipeline Eric have little technology.

So we feel very confident to grow or whether we not. have those headwinds

market I So penetrate we'll as we shape. good the more think in our be with technology,

good Speaking one of my technology, segue a question. next that was into actually of

even, You guess, the you probably called have guess, et third leverage anything new looking businesses, or But same ensure look X that core education or business different Anything routes users market. sort growth some the channel, growth? we but but thinking kids, you think at growth, enhance when or new right? when Green some mean, distributors, you to and about I with called need you're just about growth. Ultimus, degree, internally and could of that different SIMPAS to are going you're maybe to They I to cetera? at Solutions the overseas. end with old drive can there those kids, But I is

we been think one. So it's and a as a It's good it's question asked one about well. we've before,

in green or marketing our We people. are whether team's capital expense it's or lighting interest or adding

feed. being are those X definitely, units So

there's is seeing has attention. good plant. asked kind & Those resources a that's through. much going spray time Deere mean, see -- looked their the one not But have of so gathered how at I I input, think And that it it that's technology. John really it's are and And they've herbicides. of for. is I and --

part is we're It's worked it. our And of products the we've with their the one of so exposure why guess I adding to reasons portfolio. one and peers that

out think in X, the COVID, And it's bullish message I dramatically. probably why Green can we team down." those right, getting we over SIMPAS, where what if handicapped through I have -- we or the been And the again, right think say, up X some and stepped each we're lot everybody we're has I We've more people. meet But go accomplish in out. which, person it's notoriety now, there. to -- in Solutions and those again, that targets, adjustments just with not next both with a "All could quarter, our through in pretty with feels those I up activity achieve would confident the on So years, which, both it's any think going

gears. Switching

greener this I you or focused. more that strong. said the maybe right, potential core sort even attention that mentioned exactly There's market maybe But on sure not front. a funnel. of is XX but the I'm shift then think focus you what acquisitions of shift to Obviously, -- solutions. your in business, or

long lead, runway businesses How look at prices Some of has be do imagine long businesses paid much those up. going growth can but expensive more historically. type getting than are probably more I biological acquire, that you attention. multiples may are you and prices what you

course, to paying a Yes we're fairly biological being XX I of think not the companies are mean I XXx. of prudent, where that's And profitable. lot

obviously, the well paid can the set benefit overhead acquisitions of like market a companies just we And with alliances from really to good and NewLeaf is Licensing; there. assets. a distribution the got that like building with access or ability for to made them Agrinos, lot platform a with in we we've under up invest great in not so have structure

like you having were those talking to us multiple grow a without up in about. what to of the space arrangements enable So put meaningful types us

core, funnel? And of how those to look -- green XX I more guess, solutions, more acquisitions the what like, does that

looking solutions the I the there are mentioned, green Bob. space, what it's there mean enhanced are as I -- mean, across view on you cash Yes. to that out of -- companies are products available Green would what potential are of bolt-ons that for some see Solutions sense that make consider kind to offer that be more growth. us. a core can going and We we

we're but there's, also defend initiatives overall, to resources our our make these look adequate that guess, sure to we again, are basis at And of opportunistically from of So over plenty of we've us an of on few what got want the accretive on see, And again, exclusive upfront. more deals we those done to types products, our years develop we've generally several some opportunities. acquisitions. X standpoint, existing to kind I last

jump queue. One then in I'll more question, and back

up is know versus how maybe much I think price? sales Do you this XX%. volume

Yes.

So was like call, XX-XX. XX think we're last think the looking I it I -- we were now think I at And at more

XX-XX.

for soil XX-XX, some we XX%. a particularly and of increase and drove place that and that. for in product big had significant We increases that fumigant okay, a our hefty of third in was the part quarter. XX% it's a big fourth price put third our had really that kind We quarter

[Operator Funds. of Wayne Gabelli Instructions]. is from with line next question The Pinsent the

and business, of you the looking and to could then like Just seasonality can And the of just over quarter in price, if now, XX% the volume, on XX% that put about out getting talk of that was it's volumes for say looking quarter lot year-to-date the versus what that? you a numbers. of just with sort -- the you year-to-date? of a quarter, at just through go you and Can back discuss your you're the quarter pricing, how sort lot just comparisons

your question think I didn't sorry, -- so quite I understand. I'm was Yes

the that what second about think piece again, was? question. the you can the question your I year. first is And your So remind for me that's XX-XX, first And was

Yes.

if the talking and was guess, is third volume and sort on too. the year-to-date business, lot of in the of seasonality quarter? discuss looking a I could And just could seasonality the just you if If what we're quarterly your discuss because the then, the you you numbers, question, call go can at pricing over

quarter. the in XX%

number? pricing Okay. XX% XX quarter. it Was third okay, was

from what we've strongly probably growing about gallons about business, K-PAM our have America gallons outside our we've But now biggest are so, again, Australia, were is Central Vapam, that us. U.S., are And United XX Mexico, market and of grown the soil grow million products. markets seasonality, the for got and those into range. And that X.X million fumigant seen the the States in

Northwest. had mentioned, I drought up U.S. the and As we in in Pacific conditions some

internationally. the U.S., down overall up in volume So was but

And then increases were costs out. as hefty other there -- each quarter. going increases. pretty I price in into canceled we but the of kind they said, And had So significant

So drove most. that's probably the what

I some Both led, obviously, And had substantial had of And I price towards than rather volume. increases. skewing XX% -- X cost products. We mentioned more it's had to increases. those also our price they think, cotton that high type

then that, quarter And going into looking do pricing shape you XXXX? And XXXX. the through just shaping up? in forward, can How farmer in addition do to are you guys how think much great think fourth and you economics in you push into that's mentioned

Yes.

pushback, price We've good in having good. not we're is made progress which far, 'XX. So

on I kind of that were of think ahead regard. peers we our

the quite I they've the and they've had. think results time We've internationally on Australia, increased Similarly going in But to think about look prices. had slower Central based well. season; domestically. -- their U.S. -- they the products good and has that than little caught I through that able right now, Mexico kicked increases that our place Mexico, pretty through able they 'XX. a been been got margins frame But increases. the up being be to now Brazil are cost Internationally, we've in as we've to were in in of and behind going price price and delayed increased we September increases most into put we've it for not far forward. they've were feel put has as where fine America,

Chris next Our is Loop question Markets. the from Kapsch of Capital with line

just place. already had be taken seems at some to 'XX. moderating inflation that's the also, pricing against some forward follow-ups talked a that industry, of opposed about larger dynamic looking peers, your had the cost pricing your on peers least one of chucked but one into I the the on discussion -- for of But

next, if wondering fact, cost of the how I So push any I'm just had know, based over And stickiness the inflation your months? if, cost see you don't do you've you will course to hang to XX think on in increases in cost moderates of of the a XX inflation XX that that pricing happening? moderation

Yes.

of So with of the organo phosphates. got it, we were good certainly, We're a products, within proprietary products our of sell. that and portion most we've kind the certainly

seeing costs are And so we phosphorus improving.

at freight inbound freight least improving. seeing are We

And think costs today, be, the increases? are I we I I improve, think trim question -- to economy may our so. have your so need guess, to going it's I think we robust. based And farm mean upon if don't I

money. commodity I the in think We play tend people are making to not markets.

And where we but So generic that some areas again, -- competition. don't those products got that we've products we certainly some of have there sales. could be those And fluctuate do emphasize downward.

our in be to it's where liking, step we profitable a to aside. going we're not then just mode if So

our think we're So I shape I question, guess, answer your -- feel pretty in good maintain to I margins. think to we

to or it is board were Or where through. in we the at increases all areas achieved have at certain granularly you product for price magnitude be across that sort if the the there of lines? So look you're a just pushed tactically just line? of with either kind of pushing curiosity. differentiation is some cost more particular price increase. because of product blanket price We that some like more more associated a Or or it had acute Would because

think domestically. I'll X% on I in at to somewhere XX% the just looking product. were speak And the they depending

a So variation. there wide is

I lot is of by driven think cost. that a

So was XX, cost inventory, days used before, what managers what each done, know that have XXX we've what -- cost talked replacement when of XXX what we the about by all be out. to we in XXX, we and marketing expect is, what cost is

have our So deterioration. do not make that based team to I the and that, they with upon margin sure at think that aspect they looks want

where we people quite an And maybe And apply of line, as acre fumigate. to so, increases. a couple our up And hundred is maybe are I Vapam I'm seen mentioned think going we're price with up product dollars our much. not I saying, to going going maybe -- some have well, cost

sticker product that. So said, are shock there net a has our that sales been the little of But being with increasing.

Just it's more volume. price in than in

That's One, in bit, peel talking indications North and bullishness a early soy next And shift will looks it back little year into corn opposite. agricultural just favorable are about towards a preference like -- going what last be looks then the a backdrop the if you like that helpful. year. relative be America versus market the about that they'll

to the it products they've think say? are too your about product How is into if it your on that shift is maybe particular you're wondering evolving? been? early soil likely in acreage increase stage, as an line do feel corn relatively seeing that the And landscape at So in Or corn to that do demand just competitive if pipe manifesting based that or speaking, you Or the this same acreage you 'XX demand for is pool season? insecticides? channel for

Yes.

break -- look other people strong that being see use That So other the of this mean, that with -- furnished crops profitability Iowa, said, corn, which I on corn. on point shortly. didn't would strong. growers as agree but And I soybeans, commodity are a to if or going you that again cost have corn products you slide obviously the the regard I was had and at you a I to corn and But certainly, that down on we'll else, those price I Bob as corn the pressure of just puts economics morning as soybeans barometer, with I if the planting looks increases mean, everything acreage. you all

will prices the of kind period I just of time. commodity that's that some cycle help for keep feeding up So think

year. this the people regard want prices with stay strong. high see to that We are So The are fair products, to return corn a our of and on room look commodity corn. level, strong. investment protect amount insecticide did corn mean, our investment at If I to going damage this

our feel input yes, poised said, crop well as well. we on I soybeans, year. line are soybean building again, think And for this certainly So that we're being we

look decided So which that to other go. we benefit growers way to

intended you is Are I Green for if follow-up biologics their something expand could the Day see over but something talked recently to right likely acquisition Corteva, example, sorts something and into have. portfolio. And on a Solutions a the one don't if might of or sharpen more bunch with know, lines time in those funnel do the rationalizing Investor just to about we Iowa, those obviously, I products along the acquisition of, at sort of terminology, -- their

in been would look acquisitions? So be are the you past? those certainly for -- more at, potential of buckets different that's would kind in the so what's of play the those And likely? what And things criteria

Yes.

product. like are I'll Bob out at just accretiveness us. trying elaborate. we're best I'd acquisition say what agnostic So as But the I'll looking sometimes say as we're the to and figure to deals for let opportunities to

bigger portfolio to to out an X going existing pass through pieces fill trim they for searching years go add are X as peers, and But you opportunity our strengths. every sales. to to certain mentioned, And to We our gaps. not we're the

that's this. driving of And part so what's

traditional blend. color out as some XX, those maybe in on got break how Bob, type of kind market does chemistry? so We've or access, that And not? as a Green far Do just we Solutions a

precision medium-sized it's and balanced, strategy, fairly to large Eric, of core couple also focused and said, we're growth Chris. in return it's arena. we're We're at we've per as being anything pillars got more of Eric X. deals, looking deals. -- earnings the share. the I Solutions. a And not would And a of It's I for small couple X probably on business those strengthen looking investment, whether Yes. chemistry, shareholder, Ag say our EBITDA on for But And trying think all deals accretive the Green a with

accordingly. then we look Acquisition do complexity, extremely And and is them at prioritize. well that's the the So about we execution. how integration and we we rank that And all execution.

-- And financing John Deere I maybe one the -- Because last I just know package with SIMPAS right could the alignment one. mentioned the for if I partnership and here, an but if guess finance you word, is don't

The Rabobank.

The yes. Rabobank,

its focus their with obviously, because arm this of John autonomous for of John Ag is their equipment Is one Ag though, precision equipment in with the anything or read some franchise a equipment. solutions on the completely that's Deere side interest business curious, there into even necessarily in and at that not working on SIMPAS mentioned and So world? to your Deere looking precision

the Growers equipment. have as far all line it's think financing early I autonomous, too what options. John the option an they financing you're as Yes Deere the their are alignment equipment SIMPAS to internal with financing is option. But I an is of word products, own very John for Deere companies. of John mean, that's arm but for financing do really a with the asking, the way works also in if looking interactions It's major process. This Deere, competitive autonomous side. the

XX very maybe results I focused excellent. to year, up think, as on we've nicely things education results the seen mentioned, through of And hands slowed really the for getting lot down are Eric do. excellent now, a X now, were results. growers And for Like the in are us. of economic right There's even into up to the months we're But we there -- farmers. picking the many pandemic. systems

of And you're too harvest just was of on to to of that, that. it bigger some benefit early I that associated know because share to this if quantify it's you're or with going But going the yield samples SIMPAS have I think be able kind a returns. and that the share any to don't

on available. look studies, fast it depends sharing generally, it kind before researcher how yield Yes, becomes I that goes January into before the when depends reports. And it sometimes mean, that November, early. the we we do get latter on of But to results. is December into with we'll it at yes, as -- we we start of part be

At Instructions]. closing I'll time, to for the floor back management [Operator this remarks. turn

thank some our Thank I we'll great to give kind of outlook Okay. in call, for the from on all results. reporting some the questions call, X you. with We over look the listening you you again, QX our Well, And much. of next of 'XX. targets for very forward

appreciate thank that, again, and time. much your with you very Bye. So

will today's conference. This conclude

time. for disconnect you participation. Thank at may your You your this lines