Joseph Chlapaty Announces Intention to Retire as CEO of ADS
March 07 2017 - 4:30PM
Business Wire
Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the
“Company”), a leading global manufacturer of water management
products and solutions for commercial, residential, infrastructure
and agricultural applications, today announced that Joseph A.
Chlapaty has communicated to the Board of Directors his intention
to retire as the Company’s President, Chief Executive Officer, and
Chairman of the Board by the end of calendar year 2017. As part of
the Company’s succession plan, the Board has created a search
committee and has hired recruiting firm Korn Ferry (NYSE: KFY) to
identify and evaluate both internal and external candidates to
succeed Mr. Chlapaty. Mr. Chlapaty will remain as President, CEO
and Chairman of the Board throughout the search process to ensure
an orderly transition.
“It has been my honor and privilege to have served ADS over the
past thirty seven years,” Mr. Chlapaty said. “As I journey towards
my 72nd birthday and look to the bright future of ADS, I believe
the timing is right to begin planning for new leadership for our
Company. Importantly, this announcement comes at a time when ADS is
very well positioned for the future. We continue to lead the
industry with our complete water management solutions. We have a
highly capable management team, tremendous talent across our
organization and are in a strong financial position. Since our
founding in 1966, our products have been instrumental in
revolutionizing water management, beginning with the American
agricultural industry to the construction and infrastructure
markets we serve today. And while our Company’s success to date has
been impressive, I believe the best days are still ahead for ADS,
and I intend to maintain a significant ownership position in the
Company. Finally, I would like to thank all of our employees,
customers, advisors and shareholders for the incredible support I
have received from them over the years.”
C. Robert Kidder, ADS’ lead independent director commented, “We
are grateful to Joe for his valued leadership and the many
contributions he has made to ADS’ success and growth over the
years. Under Joe’s leadership, ADS has grown from a small, private
company with $50 million in sales to an industry leader with an
exceptionally strong brand and more than $1.2 billion in sales
across multiple end markets and geographies. His thorough knowledge
of all facets of our business and operations and his deep
understanding of our history, culture and the markets we serve were
instrumental in shaping ADS to what it is today.”
Joseph A. Chlapaty joined ADS in 1980 and has served as Chairman
of the Board since 2008, Chief Executive Officer since 2004 and
President since 1994. From 1980 to 1994, Mr. Chlapaty served as our
Vice President and Chief Financial Officer. Before joining ADS, Mr.
Chlapaty served as Corporate Accounting Manager, Assistant
Treasurer, and Treasurer for Lindberg Corporation and prior to that
was with Arthur Andersen LLP. Mr. Chlapaty serves on the advisory
board to Fifth Third Bank of Columbus, and is also a member or
former member of several not-for-profit boards, including
Nationwide Children’s Hospital, KIPP Journey Academy, Ohio
Foundation of Independent Colleges, the University of Dubuque and
Marietta College. Mr. Chlapaty holds a bachelor’s degree in
Business Administration from the University of Dubuque and an MBA
from DePaul University.
About ADS
Advanced Drainage Systems (ADS) is the leading manufacturer of
high performance thermoplastic corrugated pipe, providing a
comprehensive suite of water management products and superior
drainage solutions for use in the construction and infrastructure
marketplace. Its innovative products are used across a broad range
of end markets and applications, including non-residential,
residential, agriculture and infrastructure applications. The
Company has established a leading position in many of these end
markets by leveraging its national sales and distribution platform,
its overall product breadth and scale and its manufacturing
excellence. Founded in 1966, the Company operates a global network
of 63 manufacturing plants and 31 distribution centers. To learn
more about the ADS, please visit the Company’s website at
www.ads-pipe.com.
Forward Looking
Statements
Certain statements in this press release may be deemed to be
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. 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, without 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; 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; 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; 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; the risks
associated with our self-insured programs; 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; our ability to
project product mix; the risks associated with our current levels
of indebtedness; our ability to meet future capital requirements
and fund our liquidity needs; the risk that additional information
may arise that would require the Company to make additional
adjustments or revisions or to restate the financial statements and
other financial data for certain prior periods and any future
periods, any further delay in the filing of any filings with the
SEC; the review of potential weaknesses or deficiencies in the
Company’s disclosure controls and procedures, and discovering
further weaknesses of which we are not currently aware or which
have not been detected and the other risks and uncertainties
described in the Company’s filings with the Securities and Exchange
Commission. 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170307006349/en/
Advanced Drainage Systems, Inc.Michael Higgins,
614-658-0050Director-Investor Relations and Business
StrategyMike.Higgins@ads-pipe.com
Advanced Drainage Systems (NYSE:WMS)
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