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Advanced Drainage Systems, Inc. (WMS) SEC Filing 10-Q Quarterly report for the period ending Tuesday, December 31, 2019

Advanced Drainage Systems, Inc.

CIK: 1604028 Ticker: WMS

Exhibit 99.1

 

ADVANCED DRAINAGE SYSTEMS ANNOUNCES THIRD QUARTER FISCAL 2020 RESULTS

HILLIARD, Ohio – (February 6, 2020) – Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), is a leading provider of innovative water management solutions in the stormwater and on-site septic waste water industries today announced financial results for the third quarter ended December 31, 2019.

 

Third Quarter Fiscal 2020 Results

Net sales increased 23.7% to $393.4 million

Net income of $23.7 million as compared to $16.6 million in the prior year

Adjusted EBITDA (Non-GAAP) increased 88.5% to $91.3 million

 

Fiscal 2020 Year-to-Date Results

Net sales increased 17.1% to $1,303.0 million

Net loss of $195.3 million as compared to net income of $79.6 million in the prior year

 

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Includes $246.8 million of additional one-time ESOP stock-based compensation expense

Adjusted EBITDA (Non-GAAP) increased 48.5% to $289.8 million

Cash provided by operating activities increased $148.3 million to $296.3 million

Free cash flow (Non-GAAP) increased $133.1 million to $250.0 million

Scott Barbour, President and Chief Executive Officer of ADS commented, “We generated very strong results for the third quarter with sales growth of 24%, reflecting strong organic* growth of 5% as well higher than expected contributions from Infiltrator Water Technologies. Once again, we outperformed our construction and agriculture end markets with robust organic sales growth across the United States. In our construction markets, sales grew 4% due to the successful execution of our material conversion strategies, best-in-class solutions and continued focus on key growth regions of the United States. In addition, agriculture sales increased 29% as our organizational changes, new products and focused execution allowed us to capitalize on market tailwinds, including prevented plant acres and pent-up demand. Overall, our strong year-to-date performance puts us in a very good position to achieve the goals we laid out for fiscal 2020 as well as our longer-term financial targets.”

Barbour continued, “We also generated very strong profitability and free cash flow during the third quarter, driven by the traditional legacy ADS levers of strong growth, disciplined pricing, favorable material cost and disciplined execution, as well as higher than expected contribution from Infiltrator Water Technologies. When combined with effective working capital management, we generated significant free cash flow during the period, which allowed us to pay down our debt by an additional $50 million in October and reduce our leverage to 3.0x on a reported basis, ahead of our target to be at or below 3.0x by the end of calendar 2020. On a trailing-twelve-month proforma basis leverage was 2.5x. We continue to work new levers to drive improved profitability as we gain traction on our logistics and transportation initiatives while remaining committed to operational excellence throughout our organization.”

Barbour finished, “In the fourth quarter, we expect to build on the momentum achieved year-to-date as we continue to benefit from the outperformance of both our legacy ADS business and Infiltrator Water Technologies. As a result, we are confident that fiscal 2020 full-year reported net sales and adjusted EBITDA will be at the higher end of our previously-increased guidance ranges.”

 

Third Quarter Fiscal 2020 Results

 

Net sales increased $75.3 million, or 23.7%, to $393.4 million, as compared to $318.1 million in the prior year. Domestic pipe sales increased $11.2 million, or 5.7%, to $207.9 million. Allied & Other sales increased $6.4 million, or 7.7%, to $88.9 million. These increases were driven by strong performance in both the U.S. construction and agriculture end markets. Infiltrator Water Technologies contributed an additional $72.1 million to net sales in the quarter.

 

Gross profit increased $51.0 million, or 70.4%, to $123.4 million as compared to $72.4 million in the prior year. The increase is primarily due to the acquisition of Infiltrator Water Technologies, favorable material cost and increases in both pipe and allied product sales.

*Organic growth (Non-GAAP) excludes net sales growth from Infiltrator Water Technologies.

1

 


The following information was filed by Advanced Drainage Systems, Inc. (WMS) on Thursday, February 6, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Advanced Drainage Systems, Inc.'s 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Parenthetical)
Condensed Consolidated Statements Of Cash Flows
Condensed Consolidated Statements Of Comprehensive Income (Loss)
Condensed Consolidated Statements Of Mezzanine Equity
Condensed Consolidated Statements Of Operations
Condensed Consolidated Statements Of Stockholders' Equity (Deficit)
Condensed Consolidated Statements Of Stockholders' Equity (Deficit) (Parenthetical)
Acquisitions
Acquisitions (Tables)
Acquisitions - Additional Information (Detail)
Acquisitions - Summary Of Consideration Transferred And Preliminary Purchase Price Allocation Of Assets Acquired And Liabilities Assumed (Detail)
Acquisitions - Summary Of Identifiable Intangible Assets (Detail)
Acquisitions - Summary Of Unaudited Pro Forma Information (Detail)
Background And Summary Of Significant Accounting Policies
Background And Summary Of Significant Accounting Policies (Policies)
Background And Summary Of Significant Accounting Policies - Additional Information (Detail)
Business Segments Information
Business Segments Information (Tables)
Business Segments Information - Additional Information (Detail)
Business Segments Information - Reconciliation Of Gross Profit To Segment Adjusted Gross Profit (Detail)
Business Segments Information - Schedule Of Financial Information Attributable To Reportable Segments (Detail)
Business Segments Information - Schedule Of Revenue From Reportable Segments By Product Type (Detail)
Commitments And Contingencies
Commitments And Contingencies (Purchase Commitments) - Additional Information (Detail)
Debt
Debt (Bridge Credit Facility) - Additional Information (Detail)
Debt (Issuance Of Senior Notes Due 2027) - Additional Information (Detail)
Debt (New Senior Secured Credit Facility) - Additional Information (Detail)
Debt (Repayment Of Pnc Credit Agreement) - Additional Information (Detail)
Debt (Repayment Of Prudential Senior Notes) - Additional Information (Detail)
Debt (Tables)
Debt - Long-Term Debt (Detail)
Debt - Maturities Of Long-Term Debt (Excluding Interest And Deferred Financing Costs) (Detail)
Derivative Transactions
Derivative Transactions (Tables)
Derivative Transactions - Schedule Of Cash Settlements And Net Losses And Net (Gains) On Mark-To-Market Adjustments For Changes In Fair Value Of Derivative Contracts (Detail)
Fair Value Measurement
Fair Value Measurement (Tables)
Fair Value Measurement - Additional Information (Detail)
Fair Value Measurement - Summary Of Assets And Liabilities Carried At Fair Value (Detail)
Fair Value Measurement - Summary Of Changes In Fair Value Of Recurring Fair Value Measurements Using Unobservable Inputs (Detail)
Income Taxes
Income Taxes - Additional Information (Detail)
Inventories
Inventories (Tables)
Inventories - Additional Information (Detail)
Inventories - Schedule Of Inventories (Detail)
Leases
Leases (Tables)
Leases - Additional Information (Detail)
Leases - Schedule Of Components Of Lease Cost (Detail)
Leases - Schedule Of Contractual Obligations For Capital And Operating Leases (Detail)
Leases - Schedule Of Future Minimum Lease Payments On Rolling Twelve-Month Basis Under Operating And Finance Leases (Detail)
Leases - Schedule Of Supplemental Balance Sheet Information Related To Leases (Detail)
Leases - Schedule Of Supplemental Cash Flow Information Related To Leases (Detail)
Leases - Schedule Of Supplemental Cash Flow Information Related To Leases (Parenthetical) (Detail)
Loss On Disposal Of Assets And Costs From Exit And Disposal Activities
Loss On Disposal Of Assets And Costs From Exit And Disposal Activities (Tables)
Loss On Disposal Of Assets And Costs From Exit And Disposal Activities - Additional Information (Detail)
Loss On Disposal Of Assets And Costs From Exit And Disposal Activities - Schedule Of Reconciliation Of Restructuring Liability (Detail)
Loss On Disposal Of Assets And Costs From Exit And Disposal Activities - Summary Of Loss On Disposal Of Assets And Costs From Exit And Disposal Activities (Detail)
Net Income Per Share And Stockholders' Equity
Net Income Per Share And Stockholders' Equity (Tables)
Net Income Per Share And Stockholders' Equity - Additional Information (Detail)
Net Income Per Share And Stockholders' Equity - Summary Of Net Income Per Share (Detail)
Related Party Transactions
Related Party Transactions - Additional Information (Detail)
Revenue Recognition
Revenue Recognition (Tables)
Revenue Recognition - Schedule Of Contract Asset And Liability (Detail)
Stock-Based Compensation
Stock-Based Compensation (2017 Omnibus Plan) - Additional Information (Detail)
Stock-Based Compensation (Tables)
Stock-Based Compensation - Summary Of Assumption Used In Estimate Fair Value Of Stock Options (Detail)
Stock-Based Compensation - Summary Of Stock-Based Compensation Expense (Detail)
Subsequent Events
Subsequent Events - Additional Information (Detail)

Material Contracts, Statements, Certifications & more

Advanced Drainage Systems, Inc. provided additional information to their SEC Filing as exhibits

Ticker: WMS
CIK: 1604028
Form Type: 10-Q Quarterly Report
Accession Number: 0001564590-20-003700
Submitted to the SEC: Thu Feb 06 2020 4:25:08 PM EST
Accepted by the SEC: Thu Feb 06 2020
Period: Tuesday, December 31, 2019
Industry: Plastics Foam Products

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