Advanced Drainage Systems, Inc. (WMS) SEC Filing 10-Q Quarterly Report for the period ending Wednesday, June 30, 2021

Exhibit 99.1

ADVANCED DRAINAGE SYSTEMS ANNOUNCES FIRST QUARTER FISCAL 2022 RESULTS

HILLIARD, Ohio – (August 5, 2021) – Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading provider of innovative water management solutions in the stormwater and on-site septic waste water industries today announced financial results for the fiscal first quarter ended June 30, 2021.

First Quarter Fiscal 2022 Results

Scott Barbour, President and Chief Executive Officer of ADS commented, “We achieved a record $669 million in sales in the first quarter driven by strong demand across our product portfolio and geographic footprint, particularly in priority states such as Florida, Texas, North Carolina and South Carolina. Overall, the 32% growth was driven by both ADS and Infiltrator, with favorable pricing slightly outpacing volume growth.”

Barbour continued, “Our favorable demand trends and strong top-line growth were matched with inflationary cost pressure on materials, transportation and labor that proved to be more significant than initially anticipated. Over the near term, we will continue to raise pricing in the marketplace and leverage our productivity improvement initiatives and synergy programs to offset these pressures on a dollar basis. Over the longer term, we remain confident in our ability to continue expanding margins through our traditional profitability levers.”

“Importantly, the momentum underpinning the core drivers of our business remain strong. We will continue executing on our material conversion and water management solutions strategies to generate above-market growth. We are also well positioned to capitalize on growing residential development and horizontal construction, and our planned capital investments will increase capacity, support growth, and improve productivity through the end of the fiscal year and beyond.”

Barbour concluded, “Finally, we remain confident in our outlook for the fiscal year as our demand, backlog and pricing remain favorable, giving us confidence in our increased sales targets as well as our Adjusted EBITDA guidance for the year.”

First Quarter Fiscal 2022 Results

Net sales increased $160.7 million, or 31.6%, to $669.3 million, as compared to $508.6 million in the prior year. Domestic pipe sales increased $100.4 million, or 36.7%, to $374.0 million. Domestic allied products & other sales increased $10.1 million, or 8.7%, to $127.0 million. Infiltrator sales increased $24.6 million, or 24.1%, to $126.7 million. These increases were driven by double-digit sales growth in both the U.S. construction and agriculture end markets. International sales increased $29.5 million, or 82.4%, to $65.4 million, driven by double-digit sales growth in the Canadian, Mexican and Exports businesses.

Gross profit increased $12.6 million, or 6.7%, to $201.1 million as compared to $188.5 million in the prior year. The increase is primarily due an increase in sales volume and pricing on pipe, on-site septic and allied products. These increases were partially offset by inflationary cost pressure on materials, transportation and labor.

Adjusted EBITDA (Non-GAAP) increased $7.1 million, or 4.5%, to $166.6 million, as compared to $159.5 million in the prior year. The increase is primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 24.9% as compared to 31.4% in the prior year.

1