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Advanced Drainage Systems, Inc. (WMS) SEC Filing 8-K Material Event for the period ending Wednesday, May 18, 2022

Advanced Drainage Systems, Inc.

CIK: 1604028 Ticker: WMS
Exhibit 99.1
adslogoa.jpg 
ADVANCED DRAINAGE SYSTEMS ANNOUNCES FOURTH QUARTER AND
FISCAL YEAR 2022 RESULTS
HILLIARD, Ohio – (May 19, 2022) – 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 fourth quarter and fiscal year ended March 31, 2022.
Fourth Quarter Fiscal 2022 Results
Net sales increased 52.8% to $678.2 million
Net income increased 126.8% to $47.1 million
Adjusted EBITDA (Non-GAAP) increased 78.2% to $168.5 million
Fiscal 2022 Results
Net sales increased 39.7% to $2,769.3 million
Net income increased 21.6% to $275.0 million
Adjusted EBITDA (Non-GAAP) increased 19.2% to $676.0 million
Cash provided by operating activities of $274.9 million
Free cash flow (Non-GAAP) of $125.8 million
Scott Barbour, President and Chief Executive Officer of ADS commented, "We achieved another quarter of record revenue and Adjusted EBITDA results in the fourth quarter of fiscal 2022. Sales growth of 53% was driven by favorable pricing at both ADS and Infiltrator, as well as volume growth in the domestic construction markets. We capitalized on strong demand across our product portfolio and geographic footprint, particularly in priority states such as Florida, Texas and California. Leading indicators support continued strength in demand through the calendar year as we work through a strong backlog."

Barbour continued, "The favorable top line growth we achieved in the fourth quarter offset inflationary cost pressure on materials, transportation and labor. We continue to see pressure from labor shortages, and absenteeism related to the COVID variant impacted our manufacturing and transportation operations early in the fourth quarter. The actions we took previously to simplify production processes and increase production rates have been successful, improving service levels to customers overall."

Barbour concluded, "In summary, fiscal 2022 played out largely as we communicated, with profit improvement occurring in the second half of the year as the multiple actions we took to improve pricing and operations were successful. Our demand environment, strong backlog, favorable pricing and progress on the continuous improvement initiatives give us confidence in the guidance being issued today for fiscal year 2023. Backlog levels remain elevated, up double-digits over the prior year but down from fiscal 2022 peaks as a result of capacity additions and improved service levels. We are closely monitoring our end markets, staying close to our distribution partners, and will stay focused on executing the fiscal 2023 plan."
Fourth Quarter Fiscal 2022 Results
Net sales increased $234.4 million, or 52.8%, to $678.2 million, as compared to $443.8 million in the prior year quarter. Domestic pipe sales increased $157.5 million, or 65.8%, to $396.7 million. Domestic allied products & other sales increased $51.2 million, or 52.3%, to $149.1 million. Infiltrator sales increased $39.3 million, or 43.1%, to $130.6 million. These increases were driven by double-digit sales growth in the U.S. construction end markets. International sales increased $5.6 million, or 16.3%, to $40.0 million.
Gross profit increased $63.0 million, or 49.5%, to $190.2 million as compared to $127.2 million in the prior year. The increase in gross profit is primarily due to the increase in sales volume and favorable pricing on pipe, on-site septic and allied products. These increases were partially offset by inflationary cost pressure on materials, transportation and labor, as well as an increase in the use of third-party logistics services. Labor shortages and absenteeism related to COVID-19 remain a challenge in both manufacturing and transportation operations. In addition, the Company recorded $19.2 million of non-cash, stock-based compensation expense in Cost of goods sold - ESOP acceleration expense as described below under the heading "Employee Stock Ownership Plan (ESOP)".
Adjusted EBITDA (Non-GAAP) increased $74.0 million, or 78.2%, to $168.5 million, as compared to $94.5 million in the prior year. The increase is primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 24.8% as compared to 21.3% in the prior year.
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Reconciliations of GAAP to Non-GAAP financial measures for Adjusted EBITDA and Free Cash Flow have been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Year-to-Date Fiscal 2022 Results
Net sales increased $786.5 million, or 39.7%, to $2,769.3 million, as compared to $1,982.8 million in the prior year. Domestic pipe sales increased $496.0 million, or 46.8%, to $1,555.2 million. Domestic allied products & other sales increased $126.9 million, or 28.7%, to $569.4 million. Infiltrator sales increased $154.1 million, or 38.7%, to $551.9 million. These increases were driven by strong sales growth in both the U.S. construction and agriculture end markets. International sales increased $59.9 million, or 36.3%, to $224.7 million, driven by double-digit sales growth in the Canadian, Mexican and Exports businesses.
Gross profit increased $110.3 million, or 16.0%, to $800.4 million as compared to $690.1 million in the prior year. The increase is primarily due to an increase in sales volume and favorable pricing on pipe, on-site septic and allied products. These increases were partially offset by inflationary cost pressure on materials, transportation and labor, as well as an increase in the use of third-party logistics services. Labor shortages and absenteeism related to COVID-19 remain a challenge in both manufacturing and transportation operations. In addition, the Company recorded $19.2 million of non-cash, stock-based compensation expense in Cost of goods sold - ESOP acceleration expense as described below under the heading "Employee Stock Ownership Plan (ESOP)".
Adjusted EBITDA (Non-GAAP) increased $109.1 million, or 19.2%, to $676.0 million, as compared to $567.0 million in the prior year. The increase is primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 24.4% as compared to 28.6% in the prior year.
Employee Stock Ownership Plan (ESOP)
On February 2, 2022, the ADS Board of Directors passed a resolution authorizing a $0.3 million Company cash contribution to the ESOP for the ESOP to repay the remaining balance of its ESOP loan on March 31, 2022, one year ahead of the ESOP loan’s March 31, 2023 maturity date. Effective March 31, 2022, the remaining balance on the Company's ESOP loan was repaid in full, and the remaining shares of unallocated preferred stock were allocated to participants of the ESOP. In April 2022, the 15.6 million shares of preferred stock outstanding converted to 12.0 million shares of common stock, resulting in $19.2 million of additional non-cash, stock-based compensation expense recorded in Cost of goods sold - ESOP acceleration and $11.3 of additional non-cash, stock-based compensation expense recorded in Selling, general and administrative - ESOP acceleration in the fourth quarter and fiscal year ended March 31, 2022. Starting in the fiscal year ending March 31, 2023, ADS will make matching 401(k) contributions for eligible employees, resulting in estimated incremental compensation expense of approximately $8 million to $10 million annually.
For additional information on the Company's ESOP, please refer to the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2021, and other reports filed by the Company with the SEC. Additional information related to this transaction will be included in the Company's Form 10-K and Form 8-K/A, which the Company intends to file with the SEC after market-close today.
Balance Sheet and Liquidity
Net cash provided by operating activities was $274.9 million, as compared to $452.2 million in the prior year. Free cash flow (Non-GAAP) was $125.8 million, as compared to $373.5 million in the prior year. Net debt (total debt and finance lease obligations net of cash) was $924.5 million as of March 31, 2022, an increase of $278.0 million from March 31, 2021.
ADS had total liquidity of $247 million, comprised of cash of $20 million as of March 31, 2022 and $227 million of availability under committed credit facilities. As of March 31, 2022, the Company’s leverage ratio was 1.4 times.
In the twelve months ended March 31, 2022, the Company repurchased 2.6 million shares of its common stock for a total cost of $292.0 million. As of March 31, 2022, the Company has $1 billion remaining under its new share repurchase authorization.
Fiscal 2023 Outlook
Based on current visibility, backlog of existing orders and business trends, the Company issued the following targets for fiscal 2023. Net sales are expected to be in the range of $3.100 billion to $3.200 billion. Adjusted EBITDA is expected to be in the range of $800 to $820 million. Capital expenditures are expected to be in the range of $150 million to $180 million.
Webcast Information
The live webcast will be accessible via the "Events Calendar” section of the Company’s Investor Relations website, www.investors.ads-pipe.com. Participants may also register for this conference call by copy and pasting the following text into your browser: https://www.incommglobalevents.com/registration/q4inc/10578/ads-fourth-quarter-fiscal-year-2022-financial-results/. After registering, participants will receive a confirmation through email, including dial in details and unique conference call codes for entry.
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Registration is open through the live call. To ensure participants are connected for the full call, please register at least 10 minutes before the start of the call. An archived version of the webcast will be available following the call.
About the Company
Advanced Drainage Systems is a leading provider of innovative water management solutions in the stormwater and on-site septic wastewater industries, providing superior drainage solutions for use in the construction and agriculture marketplace. For over 50 years, the Company has been manufacturing a variety of innovative and environmentally friendly alternatives to traditional materials. Its innovative products are used across a broad range of end markets and applications, including non-residential, residential, infrastructure and agriculture applications. The Company has established a leading position in many of these end markets by leveraging its national sales and distribution platform, overall product breadth and scale and manufacturing excellence. Founded in 1966, the Company operates a global network of approximately 60 manufacturing plants and 30 distribution centers. To learn more about ADS, please visit the Company’s website at www.adspipe.com.
Forward Looking Statements
Certain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “confident” and similar expressions are used to identify these forward-looking statements. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: fluctuations in the price and availability of resins and other raw materials and our ability to pass any increased costs of raw materials on to our customers in a timely manner; volatility in general business and economic conditions in the markets in which we operate, including the adverse impact on the U.S. and global economy of the COVID-19 global pandemic, and the impact of COVID-19 in the near, medium and long-term on our business, results of operations, financial position, liquidity or cash flows, and other limitation factors relating to availability of credit, interest rates, fluctuations in capital and business and consumer confidence; cyclicality and seasonality of the non-residential and residential construction markets and infrastructure spending; the risks of increasing competition in our existing and future markets, including competition from both manufacturers of high performance thermoplastic corrugated pipe and manufacturers of products using alternative materials, and our ability to continue to convert current demand for concrete, steel and PVC pipe products into demand for our high performance thermoplastic corrugated pipe and Allied Products; uncertainties surrounding the integration and realization of anticipated benefits of acquisitions and similar transactions, including Infiltrator Water Technologies; the effect of weather or seasonality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our operations through joint ventures; our ability to expand into new geographic or product markets, including risks associated with new markets and products associated with our recent acquisition of Infiltrator Water Technologies; our ability to achieve the acquisition component of our growth strategy; the risk associated with manufacturing processes; our ability to manage our assets; the risks associated with our product warranties; our ability to manage our supply purchasing and customer credit policies; our ability to control labor costs and to attract, train and retain highly-qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; fluctuations in our effective tax rate, including from the Tax Cuts and Jobs Act of 2017; our ability to meet future capital requirements and fund our liquidity needs; and other risks and uncertainties described in the Company’s filings with the SEC. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
For more information, please contact:
Michael Higgins
VP, Corporate Strategy & Investor Relations
(614) 658-0050
Mike.Higgins@ads-pipe.com
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Financial Statements
ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
 
Three Months Ended March 31,Fiscal Year Ended March 31,
(In thousands, except per share data)2022202120222021
Net sales$678,187 $443,809 $2,769,315 $1,982,780 
Cost of goods sold468,777 316,592 1,949,750 1,292,698 
Cost of goods sold - ESOP acceleration19,181 — 19,181 — 
Gross profit190,229 127,217 800,384 690,082 
Operating expenses:
Selling, general and administrative79,609 73,491 309,840 267,574 
Selling, general and administrative - ESOP acceleration11,254 — 11,254 — 
Loss on disposal of assets and costs from exit and disposal activities844 1,021 3,398 4,275 
Intangible amortization17,745 19,815 63,974 73,708 
Income from operations80,777 32,890 411,918 344,525 
Other expense:
Interest expense8,450 7,895 33,550 35,658 
Derivative gains and other income, net(2,352)(2,521)(5,143)(3,404)
Income before income taxes74,679 27,516 383,511 312,271 
Income tax expense28,008 7,091 110,071 86,382 
Equity in net income of unconsolidated affiliates(458)(351)(1,586)(201)
Net income47,129 20,776 275,026 226,090 
Less: net income attributable to noncontrolling interest822 1,022 3,695 1,860 
Net income attributable to ADS46,307 19,754 271,331 224,230 
Dividends to participating securities
(1,307)(1,606)(5,940)(5,591)
Net income available to common stockholders and participating securities
45,000 18,148 265,391 218,639 
Undistributed income allocated to participating securities
(5,279)(1,967)(35,859)(33,251)
Net income available to common stockholders$39,721 $16,181 $229,532 $185,388 
   
Weighted average common shares outstanding:  
Basic71,855 70,958 71,276 70,155 
Diluted73,414 72,595 72,911 71,566 
Net income per share:
Basic$0.55 $0.23 $3.22 $2.64 
Diluted$0.54 $0.23 $3.15 $2.59 
Cash dividends declared per share$0.11 $0.09 $0.44 $0.36 
 
 

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ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)

 As of
(Amounts in thousands)March 31, 2022March 31,
2021
ASSETS  
Current assets:  
Cash$20,125 $195,009 
Receivables, net341,753 236,191 
Inventories494,324 300,961 
Other current assets15,696 10,817 
Total current assets871,898 742,978 
Property, plant and equipment, net619,383 504,275 
Other assets:
Goodwill610,293 599,072 
Intangible assets, net431,385 482,016 
Other assets116,799 85,491 
Total assets$2,649,758 $2,413,832 
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Current maturities of debt obligations$19,451 $7,000 
Current maturities of finance lease obligations5,089 19,318 
Accounts payable224,986 171,098 
Other accrued liabilities134,877 116,151 
Accrued income taxes6,838 4,703 
Total current liabilities391,241 318,270 
Long-term debt obligations, net908,705 782,220 
Long-term finance lease obligations11,393 32,964 
Deferred tax liabilities168,435 162,185 
Other liabilities64,939 54,767 
Total liabilities1,544,713 1,350,406 
Mezzanine equity:  
Redeemable convertible preferred stock195,384 240,944 
Deferred compensation — unearned ESOP shares— (11,033)
Total mezzanine equity195,384 229,911 
Stockholders’ equity:
Common stock11,612 11,578 
Paid-in capital1,065,628 918,587 
Common stock in treasury, at cost(318,691)(10,959)
Accumulated other comprehensive loss(24,386)(24,220)
Retained earnings (deficit)158,876 (75,202)
Total ADS stockholders’ equity893,039 819,784 
Noncontrolling interest in subsidiaries16,622 13,731 
Total stockholders’ equity909,661 833,515 
Total liabilities, mezzanine equity and stockholders’ equity$2,649,758 $2,413,832 
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ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 
 Fiscal Year Ended March 31,
(Amounts in thousands)20222021
Cash Flow from Operating Activities  
 Net income$275,026 $226,090 
 Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization141,808 145,586 
Deferred income taxes2,175 (13,477)
Loss on disposal of assets and costs from exit and disposal activities3,398 4,275 
ESOP and stock-based compensation77,559 65,434 
ESOP acceleration30,435 — 
Amortization of deferred financing charges382 382 
Fair market value adjustments to derivatives(1,392)(3,355)
Equity in net income of unconsolidated affiliates(1,586)(201)
Other operating activities(11,679)6,770 
Changes in working capital:
Receivables(96,990)(34,760)
Inventories(189,715)(14,561)
Prepaid expenses and other current assets(4,642)(1,208)
Accounts payable, accrued expenses and other liabilities50,109 71,241 
Net cash provided by operating activities274,888 452,216 
Cash Flows from Investing Activities  
Capital expenditures(149,083)(78,757)
Acquisition, net of cash acquired(49,309)— 
Other investing activities(441)883 
Net cash used in investing activities(198,833)(77,874)
Cash Flows from Financing Activities  
Payments on syndicated Term Loan Facility(7,000)(207,000)
Proceeds from Revolving Credit Agreement332,200 — 
Payments on Revolving Credit Agreement(217,900)(100,000)
Proceeds from Equipment Financing35,963 — 
Payments on Equipment Financing(4,715)— 
Payments on finance lease obligations(50,447)(21,491)
Repurchase of common stock(292,000)— 
Cash dividends paid(38,494)(32,155)
Proceeds from option exercises4,574 7,553 
Payment of withholding taxes on vesting of restricted stock units(13,063)— 
Other financing activities(186)(1,490)
Net cash used in financing activities(251,068)(354,583)
Effect of exchange rate changes on cash129 1,017 
Net change in cash(174,884)20,776 
Cash at beginning of year195,009 174,233 
Cash at end of year$20,125 $195,009 
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Selected Financial Data
The following tables set forth net sales by reportable segment for each of the periods indicated.
 Three Months Ended
March 31, 2022March 31, 2021
(In thousands)Net Sales Intersegment Net Sales Net Sales from External CustomersNet Sales Intersegment Net Sales Net Sales from External Customers
Pipe$396,690 $(7,911)$388,779 $239,206 $(1,487)$237,719 
Infiltrator Water Technologies130,576 (23,643)106,933 91,265 (14,721)76,544 
International
International - Pipe29,390 (5,646)23,744 25,197 (2,723)22,474 
International - Allied Products & Other10,569 — 10,569 9,157 — 9,157 
Total International39,959 (5,646)34,313 34,354 (2,723)31,631 
Allied Products & Other149,121 (959)148,162 97,915 — 97,915 
Intersegment Eliminations(38,159)38,159 — (18,931)18,931 — 
Total Consolidated$678,187 $ $678,187 $443,809 $ $443,809 
Twelve Months Ended
March 31, 2022March 31, 2021
(In thousands)Net Sales Intersegment Net Sales Net Sales from External CustomersNet Sales Intersegment Net Sales Net Sales from External Customers
Pipe$1,555,248 $(15,814)$1,539,434 $1,059,200 $(6,280)$1,052,920 
Infiltrator Water Technologies551,906 (91,406)460,500 397,813 (68,669)329,144 
International
International - Pipe171,525 (19,430)152,095 121,468 (6,589)114,879 
International - Allied Products & Other53,217 — 53,217 43,390 — 43,390 
Total International224,742 (19,430)205,312 164,858 (6,589)158,269 
Allied Products & Other569,352 (5,283)564,069 442,447 — 442,447 
Intersegment Eliminations(131,933)131,933 — (81,538)81,538 — 
Total Consolidated$2,769,315 $ $2,769,315 $1,982,780 $ $1,982,780 
Employee Stock Ownership Plan ("ESOP")
The Company established an ESOP to enable employees to acquire stock ownership in ADS in the form of redeemable convertible preferred shares ("preferred shares"). All preferred shares were converted to common shares within thirty days following the March 31, 2022 ESOP loan repayment; and the remaining shares of unallocated preferred stock will be allocated to the participants of the ESOP. The ESOP’s conversion of preferred shares into common shares will have a meaningful impact on net income, net income per share and common shares outstanding. The common shares outstanding will be greater after conversion.
For additional information on the Company's ESOP, please refer to the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2021, and other reports filed by the Company with the SEC. Additional information related to this transaction will be included in a Current Report on Form 8-K, which the Company intends to file with the SEC after market-close today.
Net Income (Loss)
The impact of the ESOP on net (loss) income includes the ESOP deferred compensation attributable to the preferred shares allocated to employee accounts during the period, which is a non-cash charge to our earnings and not deductible for income tax purposes.
Three Months Ended March 31,Fiscal Year Ended March 31,
2022202120222021
(In thousands)
Net income attributable to ADS$46,307 $19,754 $271,331 $224,230 
ESOP acceleration compensation30,43530,435
ESOP deferred stock-based compensation10,01215,47553,40144,981
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Common shares outstanding
The conversion of the preferred shares increased the number of common shares outstanding.
Three Months Ended March 31,Fiscal Year Ended March 31,
2022202120222021
(In thousands)
Weighted average common shares outstanding71,855 70,958 71,276 70,155 
Conversion of redeemable convertible shares12,66315,36113,63516,001
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). ADS management uses non-GAAP measures in its analysis of the Company’s performance. Investors are encouraged to review the reconciliation of non-GAAP financial measures to the comparable GAAP results available in the accompanying tables.
Reconciliation of Non-GAAP Financial Measures
This press release includes references to organic results, Adjusted EBITDA and Free Cash Flow, non-GAAP financial measures. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. These measures are not intended to be substitutes for those reported in accordance with GAAP. Adjusted EBITDA and Free Cash Flow may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures.
EBITDA and Adjusted EBITDA are non-GAAP financial measures that comprise net income before interest, income taxes, depreciation and amortization, stock-based compensation, non-cash charges and certain other expenses. The Company’s definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Adjusted EBITDA is a key metric used by management and the Company’s board of directors to assess financial performance and evaluate the effectiveness of the Company’s business strategies. Accordingly, management believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as the Company’s management and board of directors. In order to provide investors with a meaningful reconciliation, the Company has provided below reconciliations of Adjusted EBITDA to net income.
Free Cash Flow is a non-GAAP financial measure that comprises cash flow from operating activities less capital expenditures. Free Cash Flow is a measure used by management and the Company’s board of directors to assess the Company’s ability to generate cash.  Accordingly, management believes that Free Cash Flow provides useful information to investors and others in understanding and evaluating our ability to generate cash flow from operations after capital expenditures. In order to provide investors with a meaningful reconciliation, the Company has provided below a reconciliation of cash flow from operating activities to Free Cash Flow.
The following tables present a reconciliation of EBITDA and Adjusted EBITDA to Net Income and Free Cash Flow to Cash Flow from Operating Activities, the most comparable GAAP measures, for each of the periods indicated.
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Reconciliation of Segment Adjusted Gross Profit to Gross profit
 Three Months Ended March 31,Fiscal Year Ended March 31,
(Amounts in thousands)2022202120222021
Segment adjusted gross profit  
Pipe$94,501 $53,100 $353,182 $322,846 
Infiltrator Water Technologies53,030 41,612 231,825 191,163 
International9,127 10,945 58,822 49,921 
Allied Products & Other80,028 49,046 284,091 225,052 
Intersegment Eliminations(1,449)415 (28)(503)
Total Segment Adjusted Gross Profit235,237 155,118 927,892 788,479 
Depreciation and amortization18,88117,09071,70566,408
ESOP and stock-based compensation expense6,94610,81136,62231,792
ESOP acceleration19,18119,181 
COVID-19 related expenses— 197
Total Gross Profit$190,229 $127,217 $800,384 $690,082 
Reconciliation of Adjusted EBITDA to Net Income
 Three Months Ended March 31,Fiscal Year Ended March 31,
(Amounts in thousands)2022202120222021
Net income$47,129 $20,776 $275,026 $226,090 
Depreciation and amortization38,121 38,265 141,808 145,586 
Interest expense8,450 7,895 33,550 35,658 
Income tax expense28,008 7,091 110,071 86,382 
EBITDA121,708 74,027 560,455 493,716 
Loss on disposal of assets and costs from exit and disposal activities
844 1,021 3,398 4,275 
ESOP and stock-based compensation expense15,659 20,021 77,559 65,434 
ESOP acceleration (a)
30,435 — 30,435 — 
Transaction costs517 (13)3,539 1,415 
Strategic growth and operational improvement initiatives
— 615 — 3,304 
COVID-19 related expenses (b)
— — — 806 
Other adjustments (c)
(662)(1,123)656 (1,995)
Adjusted EBITDA$168,501 $94,548 $676,042 $566,955 
(a)In the fourth quarter of fiscal 2022, the ESOP committee notified the Company that it will instruct the ESOP trustee to cause the repayment of the remaining balance of the ESOP Loan in full with proceeds from a cash contribution to be paid by the Company to the ESOP, which repayment was effective as of March 31, 2022. The approximately 0.3 million remaining unallocated shares of Preferred Stock were allocated on March 31, 2022.
(b)Includes expenses in connection with our response to the COVID-19 pandemic including pandemic pay.
(c)Includes derivative fair value adjustments, foreign currency transaction (gains) losses, the proportionate share of interest, income taxes, depreciation and amortization related to the South American Joint Venture, which is accounted for under the equity method of accounting, contingent consideration remeasurement, executive retirement expense (benefit) and legal settlements.
Reconciliation of Free Cash Flow to Cash flow from Operating Activities
 Fiscal Year Ended March 31,
(Amounts in thousands)20222021
Net cash flow from operating activities$274,888 $452,216 
Capital expenditures(149,083)(78,757)
Free cash flow$125,805 $373,459 
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Assess how Advanced Drainage Systems, Inc.'s management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Advanced Drainage Systems, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2022 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

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Financial Statements, Disclosures and Schedules

Inside this 8-K Corporate News

Material Contracts, Statements, Certifications & more

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

Ticker: WMS
CIK: 1604028
Form Type: 8-K Corporate News
Accession Number: 0001604028-22-000020
Submitted to the SEC: Thu May 19 2022 6:59:53 AM EST
Accepted by the SEC: Thu May 19 2022
Period: Wednesday, May 18, 2022
Industry: Plastics Foam Products
Events:
  1. Earnings Release
  2. Event for Officers
  3. Financial Exhibit
  4. Other Events
  5. Regulated Disclosure

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