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     117  0 Kommentare Advanced Drainage Systems Announces Fourth Quarter and Fiscal Year 2024 Results

    Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading provider of innovative water management solutions in the stormwater and onsite septic wastewater industries today announced financial results for the fourth quarter and fiscal year ended March 31, 2024.

    Fourth Quarter Fiscal 2024 Results

    • Net sales increased 5.9% to $653.8 million
    • Net income increased 10.6% to $95.5 million
    • Diluted net income per share increased 14.5% to $1.21
    • Adjusted EBITDA (Non-GAAP) increased 11.2% to $191.2 million

    Fiscal 2024 Results

    • Net sales decreased 6.4% to $2,874.5 million
    • Net income increased 0.4% to $513.3 million
    • Diluted net income per share increased 6.1% to $6.45
    • Adjusted EBITDA (Non-GAAP) increased 2.1% to $922.9 million
    • Cash provided by operating activities increased $10.1 million to $717.9 million
    • Free cash flow (Non-GAAP) decreased $6.8 million to $534.1 million

    Scott Barbour, President and Chief Executive Officer of ADS commented, "Fiscal 2024 was ADS' ninth consecutive year of record profitability. Adjusted EBITDA increased 2% to $923 million due to the effective management of price/cost and strong operational execution. In addition, Adjusted EBITDA margin increased 270 basis points to 32.1%, the highest annual profit margin in the Company’s history. The profitability results for the year are especially impressive given the weaker demand environment in the first half of the year, which drove a 6% overall decrease in net sales to $2.9 billion. We are proud of this year’s results and remain committed to driving above market performance as we advance the stormwater and onsite septic wastewater industries. Our focus on highly engineered solutions positions us as a pivotal player in successfully managing water – the world’s most precious resource."

    "The fourth quarter net sales and Adjusted EBITDA results came in above our guidance due to favorable volume growth in our core construction and agriculture markets, as well as productivity improvements from previous capital investments and continuous improvement programs. Adjusted EBITDA margin increased to a new fourth quarter record of 29.2%, 140 basis points above the prior year."

    "In Fiscal 2025, we expect to see favorable demand drive volume growth in the residential and infrastructure markets, and stability in the non-residential construction market. Improved fixed cost absorption, increasing contributions from previous capital investments as well as effective management of price/cost should lead to healthy Adjusted EBITDA margins that at least equal Fiscal 2024 levels with potential for margin expansion."

    Barbour concluded, "More broadly, our success will continue to be driven by ADS’ position as a pure-play water company that provides advanced sustainable water management solutions to protect and manage water. In the face of changing climate patterns, ADS and Infiltrator solutions play a critical role in protecting communities. In 2023, there were 27 large-scale storm events that inflicted an estimated $88 billion in damage in the U.S. These events, ranging from severe storms and tropical cyclones to floods and droughts, have devastating impacts on our communities and highlight how existing stormwater infrastructure has not kept pace with increasing climate challenges. The products and solutions that we provide along with the expertise we have at the local level across North America are key to solving these issues for communities, providing ADS with a long runway of secular growth."

    Fourth Quarter Fiscal 2024 Results

    Net sales increased $36.3 million, or 5.9%, to $653.8 million, as compared to $617.6 million in the prior year quarter. Domestic pipe sales increased $11.5 million, or 3.3%, to $358.7 million. Domestic allied products & other sales increased $4.3 million, or 2.9%, to $152.7 million. Infiltrator sales increased $18.4 million, or 21.0%, to $106.1 million. The overall increase in domestic net sales was primarily driven by the continued improvement in the U.S. residential, infrastructure construction and agriculture end markets. International sales increased $2.0 million, or 5.8%, to $36.4 million.

    Gross profit increased $29.5 million, or 13.3%, to $252.0 million as compared to $222.4 million in the prior year. The increase in gross profit is primarily due to the favorable volume growth as well as better fixed cost absorption and productivity from capital investments.

    Adjusted EBITDA (Non-GAAP) increased $19.2 million, or 11.2%, to $191.2 million, as compared to $172.0 million in the prior year. The increase is primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 29.2% as compared to 27.8% in the prior year.

    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.”

    Fiscal Year 2024 Results

    Net sales decreased $196.6 million, or 6.4%, to $2,874.5 million, as compared to $3,071.1 million in the prior year. Domestic pipe sales decreased $172.9 million, or 10.1%, to $1,544.3 million. Domestic allied products & other sales decreased $18.4 million, or 2.7%, to $673.4 million. Infiltrator sales increased $6.7 million, or 1.5%, to $449.0 million. The decrease in overall domestic net sales was driven by lower demand in the U.S. construction and agriculture end markets during the first half of the year. The increase in sales at Infiltrator was driven by better-than-expected single-family housing construction and new product introductions. International sales decreased $12.1 million, or 5.5%, to $207.8 million.

    Gross profit increased $27.5 million, or 2.5%, to $1,145.9 million as compared to $1,118.4 million in the prior year. The increase in gross profit is primarily due to favorable material cost, partially offset by the decrease in volume and unfavorable fixed cost absorption.

    Adjusted EBITDA (Non-GAAP) increased $19.0 million, or 2.1%, to $922.9 million, as compared to $904.0 million in the prior year. The increase is primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 32.1% as compared to 29.4% in the prior year.

    Balance Sheet and Liquidity

    Net cash provided by operating activities was $717.9 million, as compared to $707.8 million in the prior year. Free cash flow (Non-GAAP) was $534.1 million, as compared to $540.9 million in the prior year. Capital expenditures increased $16.9 million over the prior year as we continue to invest in safety, capacity and productivity. Net debt (total debt and finance lease obligations net of cash) was $860.9 million as of March 31, 2024, a decrease of $246.9 million from March 31, 2023.

    ADS had total liquidity of $1,079 million, comprised of cash of $490.2 million as of March 31, 2024 and $588.9 million of availability under committed credit facilities. As of March 31, 2024, the Company’s leverage ratio was 0.9 times.

    In the twelve months ended March 31, 2024, the Company repurchased 1.8 million shares of its common stock for a total cost of $207.3 million. Between common stock repurchased and dividends paid, the Company returned $251.3 million to shareholders in the year ended March 31, 2024. As of March 31, 2024, the Company has $215.9 million remaining under its share repurchase authorization.

    Fiscal Year 2025 Outlook

    Based on current visibility, backlog of existing orders and business trends, the Company issued the following targets for fiscal 2025. Net sales are expected to be in the range of $2.925 billion to $3.025 billion. Adjusted EBITDA is expected to be in the range of $940 million to $980 million. Capital expenditures are expected to be in the range of $250 million to $300 million.

    Conference Call Information

    Webcast: Interested investors and other parties can listen to a webcast of the live conference call by logging in through the Investor Relations section of the Company's website at https://investors.ads-pipe.com/events-and-presentations. An online replay will be available on the same website following the call.

    Teleconference: To participate in the live teleconference, participants may register at https://registrations.events/direct/Q4I457863. After registering, participants will receive a confirmation through email, including dial in details and unique conference call codes for entry. 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.

    About the Company

    Advanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite septic wastewater solutions that manages the world’s most precious resource: water. ADS provides superior drainage solutions for use in a wide variety of markets and applications including commercial, residential, infrastructure and agriculture. ADS delivers tremendous service to its customers with the industry’s largest company-owned fleet, an expansive sales team, and a vast manufacturing network of approximately 70 manufacturing plants and 40 distribution centers. ADS is the largest plastic recycling company in North America, ensuring over half a billion pounds of plastic is kept out of landfills every year. Founded in 1966, ADS’ water management solutions are designed to last for decades. To learn more, 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; disruption or volatility in general business and economic conditions in the markets in which we operate; 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; uncertainties surrounding the integration and realization of anticipated benefits of acquisitions; 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; the risk associated with manufacturing processes; the effect of global climate change; cybersecurity risks; 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; 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.

    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)

    2024

     

    2023

     

    2024

     

    2023

    Net sales

    $

    653,840

     

     

    $

    617,559

     

     

    $

    2,874,473

     

     

    $

    3,071,121

     

    Cost of goods sold

     

    401,877

     

     

     

    395,138

     

     

     

    1,728,524

     

     

     

    1,952,713

     

    Gross profit

     

    251,963

     

     

     

    222,421

     

     

     

    1,145,949

     

     

     

    1,118,408

     

    Operating expenses:

     

     

     

     

     

     

     

    Selling, general and administrative

     

    101,189

     

     

     

    78,409

     

     

     

    370,714

     

     

     

    339,504

     

    (Gain) loss on disposal of assets and costs from exit and disposal activities

     

    2,304

     

     

     

    4,544

     

     

     

    (8,365

    )

     

     

    4,397

     

    Intangible amortization

     

    13,093

     

     

     

    13,837

     

     

     

    51,469

     

     

     

    55,197

     

    Income from operations

     

    135,377

     

     

     

    125,631

     

     

     

    732,131

     

     

     

    719,310

     

    Other expense:

     

     

     

     

     

     

     

    Interest expense

     

    22,878

     

     

     

    20,848

     

     

     

    88,862

     

     

     

    70,182

     

    Interest income and other, net

     

    (7,657

    )

     

     

    (2,340

    )

     

     

    (23,484

    )

     

     

    (7,972

    )

    Income before income taxes

     

    120,156

     

     

     

    107,123

     

     

     

    666,753

     

     

     

    657,100

     

    Income tax expense

     

    26,333

     

     

     

    21,948

     

     

     

    158,998

     

     

     

    150,589

     

    Equity in net income of unconsolidated affiliates

     

    (1,656

    )

     

     

    (1,137

    )

     

     

    (5,536

    )

     

     

    (4,842

    )

    Net income

     

    95,479

     

     

     

    86,312

     

     

     

    513,291

     

     

     

    511,353

     

    Less: net income attributable to noncontrolling interest

     

    657

     

     

     

    419

     

     

     

    3,376

     

     

     

    4,267

     

    Net income attributable to ADS

    $

    94,822

     

     

    $

    85,893

     

     

    $

    509,915

     

     

    $

    507,086

     

     

     

     

     

     

     

     

     

    Weighted average common shares outstanding:

     

     

     

     

     

     

     

    Basic

     

    77,637

     

     

     

    80,554

     

     

     

    78,252

     

     

     

    82,315

     

    Diluted

     

    78,491

     

     

     

    81,379

     

     

     

    79,017

     

     

     

    83,336

     

    Net income per share:

     

     

     

     

     

     

     

    Basic

    $

    1.22

     

     

    $

    1.07

     

     

    $

    6.52

     

     

    $

    6.16

     

    Diluted

    $

    1.21

     

     

    $

    1.06

     

     

    $

    6.45

     

     

    $

    6.08

     

    Cash dividends declared per share

    $

    0.14

     

     

    $

    0.12

     

     

    $

    0.56

     

     

    $

    0.48

     

     

    ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES

    CONSOLIDATED BALANCE SHEETS
    (unaudited)

     

     

    As of

    (Amounts in thousands)

    March 31, 2024

     

    March 31, 2023

    ASSETS

     

     

     

    Current assets:

     

     

     

    Cash

    $

    490,163

     

     

    $

    217,128

     

    Receivables, net

     

    323,576

     

     

     

    306,945

     

    Inventories

     

    464,200

     

     

     

    463,994

     

    Other current assets

     

    22,028

     

     

     

    29,422

     

    Total current assets

     

    1,299,967

     

     

     

    1,017,489

     

    Property, plant and equipment, net

     

    876,351

     

     

     

    733,059

     

    Other assets:

     

     

     

    Goodwill

     

    617,183

     

     

     

    620,193

     

    Intangible assets, net

     

    352,652

     

     

     

    407,627

     

    Other assets

     

    122,760

     

     

     

    122,757

     

    Total assets

    $

    3,268,913

     

     

    $

    2,901,125

     

    LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY

     

     

     

    Current liabilities:

     

     

     

    Current maturities of debt obligations

    $

    11,870

     

     

    $

    14,693

     

    Current maturities of finance lease obligations

     

    18,015

     

     

     

    8,541

     

    Accounts payable

     

    254,401

     

     

     

    210,111

     

    Other accrued liabilities

     

    154,260

     

     

     

    142,400

     

    Accrued income taxes

     

    1,076

     

     

     

    3,057

     

    Total current liabilities

     

    439,622

     

     

     

    378,802

     

    Long-term debt obligations, net

     

    1,259,522

     

     

     

    1,269,391

     

    Long-term finance lease obligations

     

    61,661

     

     

     

    32,272

     

    Deferred tax liabilities

     

    156,705

     

     

     

    159,056

     

    Other liabilities

     

    70,704

     

     

     

    66,744

     

    Total liabilities

     

    1,988,214

     

     

     

    1,906,265

     

    Mezzanine equity:

     

     

     

    Redeemable convertible preferred stock

     

    108,584

     

     

     

    153,220

     

    Total mezzanine equity

     

    108,584

     

     

     

    153,220

     

     

     

     

     

    Stockholders’ equity:

     

     

     

    Common stock

     

    11,679

     

     

     

    11,647

     

    Paid-in capital

     

    1,219,834

     

     

     

    1,134,864

     

    Common stock in treasury, at cost

     

    (1,140,578

    )

     

     

    (920,999

    )

    Accumulated other comprehensive loss

     

    (29,830

    )

     

     

    (27,580

    )

    Retained earnings

     

    1,092,208

     

     

     

    626,215

     

    Total ADS stockholders’ equity

     

    1,153,313

     

     

     

    824,147

     

    Noncontrolling interest in subsidiaries

     

    18,802

     

     

     

    17,493

     

    Total stockholders’ equity

     

    1,172,115

     

     

     

    841,640

     

    Total liabilities, mezzanine equity and stockholders’ equity

    $

    3,268,913

     

     

    $

    2,901,125

     

     

    ADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF CASH FLOWS

    (unaudited)

     

     

    Fiscal Year Ended March 31,

    (Amounts in thousands)

    2024

     

    2023

    Cash Flow from Operating Activities

     

     

     

    Net income

    $

    513,291

     

     

    $

    511,353

     

    Adjustments to reconcile net income to net cash provided by operating activities:

     

     

     

    Depreciation and amortization

     

    154,903

     

     

     

    145,149

     

    Deferred income taxes

     

    (2,280

    )

     

     

    (9,855

    )

    (Gain) loss on disposal of assets and costs from exit and disposal activities

     

    (8,365

    )

     

     

    4,397

     

    Stock-based compensation

     

    31,986

     

     

     

    21,659

     

    Amortization of deferred financing charges

     

    2,044

     

     

     

    1,419

     

    Fair market value adjustments to derivatives

     

    (972

    )

     

     

    3,639

     

    Equity in net income of unconsolidated affiliates

     

    (5,536

    )

     

     

    (4,842

    )

    Other operating activities

     

    6,697

     

     

     

    1,513

     

    Changes in working capital:

     

     

     

    Receivables

     

    (14,590

    )

     

     

    37,487

     

    Inventories

     

    594

     

     

     

    30,224

     

    Prepaid expenses and other current assets

     

    (275

    )

     

     

    (5,296

    )

    Accounts payable, accrued expenses and other liabilities

     

    40,431

     

     

     

    (29,037

    )

    Net cash provided by operating activities

     

    717,928

     

     

     

    707,810

     

    Cash Flows from Investing Activities

     

     

     

    Capital expenditures

     

    (183,812

    )

     

     

    (166,913

    )

    Proceeds from disposition of assets or businesses

     

    27,498

     

     

     

     

    Acquisition, net of cash acquired

     

     

     

     

    (48,010

    )

    Other investing activities

     

    650

     

     

     

    446

     

    Net cash used in investing activities

     

    (155,664

    )

     

     

    (214,477

    )

    Cash Flows from Financing Activities

     

     

     

    Payments on syndicated Term Loan Facility

     

    (7,000

    )

     

     

    (7,000

    )

    Proceeds from Revolving Credit Agreement

     

     

     

     

    26,200

     

    Payments on Revolving Credit Agreement

     

     

     

     

    (140,500

    )

    Proceeds from Amended Revolving Credit Agreement

     

     

     

     

    97,000

     

    Payments on Amended Revolving Credit Agreement

     

     

     

     

    (97,000

    )

    Proceeds from Senior Notes due 2030

     

     

     

     

    500,000

     

    Debt issuance costs

     

     

     

     

    (11,575

    )

    Payments on Equipment Financing

     

    (7,738

    )

     

     

    (12,532

    )

    Payments on finance lease obligations

     

    (12,145

    )

     

     

    (7,686

    )

    Repurchase of common stock

     

    (207,308

    )

     

     

    (575,027

    )

    Cash dividends paid

     

    (43,995

    )

     

     

    (39,612

    )

    Dividends paid to noncontrolling interest holder

     

    (3,747

    )

     

     

    (5,323

    )

    Proceeds from option exercises

     

    6,454

     

     

     

    5,700

     

    Payment of withholding taxes on vesting of restricted stock units

     

    (8,864

    )

     

     

    (28,663

    )

    Other financing activities

     

     

     

     

    (260

    )

    Net cash used in financing activities

     

    (284,343

    )

     

     

    (296,278

    )

    Effect of exchange rate changes on cash

     

    799

     

     

     

    (52

    )

    Net change in cash

     

    278,720

     

     

     

    197,003

     

    Cash at beginning of year

     

    217,128

     

     

     

    20,125

     

    Cash and restricted cash at end of year

    $

    495,848

     

     

    $

    217,128

     

     

     

     

     

    RECONCILIATION TO BALANCE SHEET

     

     

     

    Cash

    $

    490,163

     

     

     

    Restricted cash (included in Other assets in the Consolidated Balance Sheets)

     

    5,685

     

     

     

    Total cash and restricted cash

    $

    495,848

     

     

     

    Selected Financial Data

    The following tables set forth net sales by reportable segment for each of the periods indicated.

     

    Three Months Ended

     

    March 31, 2024

     

    March 31, 2023

    (In thousands)

    Net Sales

     

    Intersegment
    Net Sales

     

    Net Sales from
    External Customers

     

    Net Sales

     

    Intersegment
    Net Sales

     

    Net Sales from
    External Customers

    Pipe

    $

    369,316

     

     

    $

    (10,656

    )

     

    $

    358,660

     

    $

    357,407

     

     

    $

    (10,289

    )

     

    $

    347,118

    Infiltrator Water Technologies

     

    124,875

     

     

     

    (18,804

    )

     

     

    106,071

     

     

    102,723

     

     

     

    (15,046

    )

     

     

    87,677

    International

     

     

     

     

     

     

     

     

     

     

     

    International - Pipe

     

    30,143

     

     

     

    (4,862

    )

     

     

    25,281

     

     

    25,136

     

     

     

    (706

    )

     

     

    24,430

    International - Allied Products & Other

     

    11,283

     

     

     

    (125

    )

     

     

    11,158

     

     

    9,998

     

     

     

     

     

     

    9,998

    Total International

     

    41,426

     

     

     

    (4,987

    )

     

     

    36,439

     

     

    35,134

     

     

     

    (706

    )

     

     

    34,428

    Allied Products & Other

     

    156,026

     

     

     

    (3,356

    )

     

     

    152,670

     

     

    150,166

     

     

     

    (1,830

    )

     

     

    148,336

    Intersegment Eliminations

     

    (37,803

    )

     

     

    37,803

     

     

     

     

     

    (27,871

    )

     

     

    27,871

     

     

     

    Total Consolidated

    $

    653,840

     

     

    $

     

     

    $

    653,840

     

    $

    617,559

     

     

    $

     

     

    $

    617,559

     

     

     

     

     

     

     

     

     

     

     

     

     

    Fiscal Year Ended

     

    March 31, 2024

     

    March 31, 2023

    (In thousands)

    Net Sales

     

    Intersegment
    Net Sales

     

    Net Sales from
    External Customers

     

    Net Sales

     

    Intersegment
    Net Sales

     

    Net Sales from
    External Customers

    Pipe

    $

    1,586,618

     

     

    $

    (42,328

    )

     

    $

    1,544,290

     

    $

    1,758,961

     

     

    $

    (41,772

    )

     

    $

    1,717,189

    Infiltrator Water Technologies

     

    531,236

     

     

     

    (82,209

    )

     

     

    449,027

     

     

    523,643

     

     

     

    (81,363

    )

     

     

    442,280

    International

     

     

     

     

     

     

     

     

     

     

     

    International - Pipe

     

    163,930

     

     

     

    (14,081

    )

     

     

    149,849

     

     

    179,898

     

     

     

    (19,215

    )

     

     

    160,683

    International - Allied Products & Other

     

    58,072

     

     

     

    (152

    )

     

     

    57,920

     

     

    59,170

     

     

     

     

     

     

    59,170

    Total International

     

    222,002

     

     

     

    (14,233

    )

     

     

    207,769

     

     

    239,068

     

     

     

    (19,215

    )

     

     

    219,853

    Allied Products & Other

     

    684,329

     

     

     

    (10,942

    )

     

     

    673,387

     

     

    700,319

     

     

     

    (8,520

    )

     

     

    691,799

    Intersegment Eliminations

     

    (149,712

    )

     

     

    149,712

     

     

     

     

     

    (150,870

    )

     

     

    150,870

     

     

     

    Total Consolidated

    $

    2,874,473

     

     

    $

     

     

    $

    2,874,473

     

    $

    3,071,121

     

     

    $

     

     

    $

    3,071,121

    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 Adjusted EBITDA, Free Cash Flow and Adjusted Earnings per Share, 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.

    Adjusted Earnings per Share excludes (gains) losses on disposals of assets or business, restructuring expenses, impairment charges and transaction costs. Adjusted Earnings per Share is a measure used by management and may be useful for investors to evaluate the Company's operational performance.

    The following tables present a reconciliation of EBITDA and Adjusted EBITDA to Net Income, Free Cash Flow to Cash Flow from Operating Activities, and Adjusted Earnings per Share to Diluted Earnings per Share, the most comparable GAAP measures, for each of the periods indicated.

    Reconciliation of Segment Adjusted Gross Profit to Gross Profit

     

    Three Months Ended March 31,

     

    Fiscal Year Ended March 31,

    (Amounts in thousands)

    2024

     

    2023

     

    2024

     

    2023

    Segment adjusted gross profit

     

     

     

     

     

     

     

    Pipe

    $

    113,318

     

     

    $

    111,540

     

    $

    515,444

     

     

    $

    532,551

    Infiltrator Water Technologies

     

    65,358

     

     

     

    40,011

     

     

    281,677

     

     

     

    233,580

    International

     

    11,198

     

     

     

    10,225

     

     

    62,578

     

     

     

    61,681

    Allied Products & Other

     

    91,192

     

     

     

    82,827

     

     

    391,766

     

     

     

    376,299

    Intersegment Eliminations

     

    (126

    )

     

     

    595

     

     

    (4,557

    )

     

     

    924

    Total Segment Adjusted Gross Profit

     

    280,940

     

     

     

    245,198

     

     

    1,246,908

     

     

     

    1,205,035

    Depreciation and amortization

     

    27,742

     

     

     

    22,373

     

     

    96,251

     

     

     

    84,048

    Stock-based compensation expense

     

    1,235

     

     

     

    404

     

     

    4,708

     

     

     

    2,579

    Total Gross Profit

    $

    251,963

     

     

    $

    222,421

     

    $

    1,145,949

     

     

    $

    1,118,408

    Reconciliation of Adjusted EBITDA to Net Income

     

    Three Months Ended March 31,

     

    Fiscal Year Ended March 31,

    (Amounts in thousands)

    2024

     

    2023

     

    2024

     

    2023

    Net income

    $

    95,479

     

     

    $

    86,312

     

     

    $

    513,291

     

     

    $

    511,353

     

    Depreciation and amortization

     

    42,889

     

     

     

    37,803

     

     

     

    154,903

     

     

     

    145,149

     

    Interest expense

     

    22,878

     

     

     

    20,848

     

     

     

    88,862

     

     

     

    70,182

     

    Income tax expense

     

    26,333

     

     

     

    21,948

     

     

     

    158,998

     

     

     

    150,589

     

    EBITDA

     

    187,579

     

     

     

    166,911

     

     

     

    916,054

     

     

     

    877,273

     

    (Gain) loss on disposal of assets and costs from exit and disposal activities

     

    2,304

     

     

     

    4,544

     

     

     

    (8,365

    )

     

     

    4,397

     

    Stock-based compensation expense

     

    8,350

     

     

     

    1,747

     

     

     

    31,986

     

     

     

    21,659

     

    Transaction costs (a)

     

    390

     

     

     

    486

     

     

     

    3,444

     

     

     

    3,903

     

    Interest income

     

    (6,906

    )

     

     

    (3,840

    )

     

     

    (22,047

    )

     

     

    (9,782

    )

    Other adjustments (b)

     

    (539

    )

     

     

    2,132

     

     

     

    1,875

     

     

     

    6,512

     

    Adjusted EBITDA

    $

    191,178

     

     

    $

    171,980

     

     

    $

    922,947

     

     

    $

    903,962

     

    a.

     

    Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with business or asset acquisitions and dispositions.

    b.

     

    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 and executive retirement expense (benefit).

    Reconciliation of Free Cash Flow to Cash flow from Operating Activities

     

    Fiscal Year Ended March 31,

     

    (Amounts in thousands)

    2024

     

    2023

     

    Net cash flow from operating activities

    $

    717,928

     

     

    $

    707,810

     

     

    Capital expenditures

     

    (183,812

    )

     

     

    (166,913

    )

     

    Free cash flow

    $

    534,116

     

     

    $

    540,897

     

     

    Reconciliation of Diluted Earnings per Share to Adjusted Earnings per Share

    The following table diluted presents earnings per share on an adjusted basis to supplement the Company's discussion of its results of operations herein.

     

    Three Months Ended March 31,

     

    Fiscal Year Ended March 31,

     

    2024

     

    2023

     

    2024

     

    2023

    Diluted Earnings Per Share

    $

    1.21

     

     

    $

    1.06

     

     

    $

    6.45

     

     

    $

    6.08

     

    Loss (gain) on disposal of assets and costs from exit and disposal activities

     

    0.03

     

     

     

    0.06

     

     

     

    (0.11

    )

     

     

    0.05

     

    Transaction costs

     

    0.00

     

     

     

    0.01

     

     

     

    0.04

     

     

     

    0.05

     

    Income tax impact of adjustments (a)

     

    (0.01

    )

     

     

    (0.01

    )

     

     

    0.01

     

     

     

    (0.02

    )

    Adjusted Earnings per Share

    $

    1.23

     

     

    $

    1.12

     

     

    $

    6.39

     

     

    $

    6.16

     

    a.

     

    The income tax impact of adjustments to each period is based on the statutory tax rate.

     


    The Advanced Drainage Systems Stock at the time of publication of the news with a fall of -1,82 % to 159USD on Tradegate stock exchange (16. Mai 2024, 09:30 Uhr).


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    Advanced Drainage Systems Announces Fourth Quarter and Fiscal Year 2024 Results Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading provider of innovative water management solutions in the stormwater and onsite septic wastewater industries today announced financial results for the fourth quarter and …

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