Advanced Drainage Systems, Inc. (NYSE:WMS) (“ADS” or the
“Company”), a leading global manufacturer of water management
products and solutions for non-residential, residential,
infrastructure and agricultural applications, today announced
financial results for the fiscal second quarter ended September 30,
2017.
Second Quarter Fiscal 2018
Highlights
- Net sales increased 11.2% to $401.0
million
- Net income of $18.0 million compared
to $24.3 million in prior year
- Adjusted EBITDA (Non-GAAP) increased
2.0% to $66.9 million
Fiscal Year-to-Date
Highlights
- Net sales increased 5.7% to $759.4
million
- Net income of $36.4 million compared
to $43.7 million in prior year
- Adjusted EBITDA (Non-GAAP) of $127.2
million compared to $137.4 million in prior year
- Cash flow from operating activities
of $28.4 million compared to $45.6 million in prior year
- Free cash flow (Non-GAAP) of $1.4
million compared to $21.8 million in prior year
Scott Barbour, President and Chief Executive Officer of ADS
commented, “We are pleased to report above-market growth for the
second fiscal quarter, with net sales increasing over 11% compared
to the prior year. We generated strong performance in our core
domestic construction markets driven by continued execution of our
conversion strategy and strong growth from our HP pipe product line
and Allied Products. We were also pleased to see growth return in
our agriculture market this quarter.”
Barbour continued, “While we are disappointed with the continued
pressure on our margins, we are pursuing a number of actions to
address this through operational improvements as well as our
broader set of strategic initiatives. Although I am still early in
my assessment of the business, I am confident we have the
opportunity, capability and resources to drive sustainable
improvements in our profitability. It is my belief that we need to
focus on the fundamentals and drive better execution across all
aspects of our operations as we progress through the remainder of
fiscal year 2018.”
Second Quarter Fiscal 2018
Results
Net sales increased 11.2% to $401.0 million, as compared to
$360.8 million in the prior year quarter. Domestic net sales
increased 12.9% to $351.9 million as compared to $311.8 million in
the prior year quarter, driven by growth in both construction and
agriculture markets. International net sales increased 0.3% to
$49.2 million as compared to $49.0 million in the prior year
quarter.
Gross profit decreased 0.8% to $89.8 million, as compared to
$90.5 million the prior year quarter. As a percentage of net sales,
gross profit decreased 270 basis points to 22.4% compared to 25.1%
in the prior year, primarily due to increases in raw material and
operational costs.
Adjusted EBITDA (Non-GAAP) increased 2.0% to $66.9 million, as
compared to $65.6 million in the prior year. As a percentage of net
sales, Adjusted EBITDA decreased 150 basis points to 16.7% as
compared to 18.2% in the prior year. The decrease in Adjusted
EBITDA margin was largely attributed to the factors mentioned
above.
Adjusted Earnings Per Fully Converted Share (Non-GAAP) was $0.28
based on weighted average fully converted shares of 73.8 million,
as compared to $0.36 for the prior year on weighted average fully
converted shares of 73.4 million.
A reconciliation of GAAP to Non-GAAP financial measures for
Adjusted EBITDA, Free Cash Flow and Adjusted Earnings Per Fully
Converted Share has 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-to-Date 2018
Results
Net sales increased 5.7% to $759.4 million, as compared to
$718.4 million in the prior year. Domestic net sales increased 7.5%
to $671.4 million as compared to $624.5 million in the prior year,
driven by growth in core construction markets. International net
sales decreased 6.2% to $88.0 million as compared to $93.8 million
in the prior year.
Gross profit decreased 5.7% to $176.5 million, as compared to
$187.1 million the prior year. As a percentage of net sales, gross
profit decreased 280 basis points to 23.2% compared to 26.0% in the
prior year, primarily due to increases in raw material and
operational costs, and pricing headwinds in the agricultural
markets and Mexico.
Adjusted EBITDA (Non-GAAP) decreased 7.4% to $127.2 million, as
compared to $137.4 million in the prior year. As a percentage of
net sales, Adjusted EBITDA decreased 230 basis points to 16.8% as
compared to 19.1% in the prior year. The decrease in Adjusted
EBITDA margin was largely attributed to the factors mentioned
above.
Adjusted Earnings Per Fully Converted Share (Non-GAAP) was $0.55
based on weighted average fully converted shares of 74.0 million,
as compared to $0.64 for the prior year on weighted average fully
converted shares of 73.3 million.
The Company recorded net cash provided by operating activities
of $28.4 million, as compared to $45.6 million in the prior year.
Net debt (total debt and capital lease obligations net of cash) was
$456.6 million as of September 30, 2017, an increase of $34.2
million from March 31, 2017.
Fiscal Year 2018 Outlook
Based on current visibility, backlog of existing orders and
business trends, the Company updated its Adjusted EBITDA target for
fiscal 2018. Adjusted EBITDA (Non-GAAP) is expected to be in the
range of $195 and $210 million for fiscal year 2018, while the
outlook for net sales is unchanged and expected to be in the range
of $1.275 billion to $1.325 billion. Capital expenditures are
expected to be approximately $50 to $55 million.
Webcast Information
The Company will host an investor conference call and webcast on
Thursday, November 2, 2017 at 10:00 a.m. Eastern Time. The live
call can be accessed by dialing 1-866-450-8367 (US toll-free) or
1-412-317-5465 (international) and asking to be connected to the
Advanced Drainage Systems, Inc. call. The live webcast will also be
accessible via the "Events Calendar” section of the Company’s
Investor Relations website, www.investors.ads-pipe.com. An archived
version of the webcast will be available for 90 days following the
call.
About the Company
Advanced Drainage Systems 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 approximately 60 manufacturing plants and over 30 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 delay in the filing of any filings with the Securities
and Exchange Commission (“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 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
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(unaudited)
Three Months Ended Six Months Ended
September 30, September 30, (Amounts in thousands,
except per share data)
2017 2016 2017
2016 Net sales $ 401,049 $ 360,785 $ 759,408 $ 718,361 Cost
of goods sold 311,248 270,273 582,868
531,243 Gross profit 89,801 90,512 176,540 187,118 Operating
expenses: Selling 24,346 23,210 47,445 47,440 General and
administrative 23,887 21,181 50,563 55,710 Loss on disposal of
assets and costs from exit and disposal activities 5,121 737 8,544
939 Intangible amortization 2,015 2,128 4,059
4,315 Income from operations 34,432 43,256 65,929 78,714
Other expense: Interest expense 5,055 4,546 9,534 9,330 Derivative
gains and other income, net (2,539 ) (1,734 )
(3,493 ) (4,771 ) Income before income taxes 31,916 40,444
59,888 74,155 Income tax expense 13,437 15,348 23,183 29,542 Equity
in net loss of unconsolidated affiliates 520 815
272 911 Net income 17,959 24,281 36,433 43,702 Less:
net income attributable to noncontrolling interest 96
547 828 1,695 Net income attributable to ADS 17,863
23,734 35,605 42,007 Accretion of redeemable noncontrolling
interest - (380 ) - (742 ) Dividends to redeemable convertible
preferred stockholders (470 ) (415 ) (959 ) (840 ) Dividends paid
to unvested restricted stockholders (16 ) (24 )
(35 ) (54 ) Net income available to common
stockholders and participating securities 17,377 22,915 34,611
40,371 Undistributed income allocated to participating securities
(1,397 ) (2,040 ) (2,830 ) (3,563 )
Net income available to common stockholders $
15,980 $ 20,875 $ 31,781
$ 36,808 Weighted average common shares
outstanding: Basic 55,269 54,429 55,286 54,250 Diluted 55,893
55,276 55,953 55,115
Net income per share: Basic $ 0.29 $
0.38 $ 0.57 $ 0.68 Diluted $ 0.29 $ 0.38 $ 0.57 $ 0.67
Cash
dividends declared per share $ 0.07 $ 0.06 $ 0.14 $ 0.12
ADVANCED DRAINAGE SYSTEMS, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited)
As of (Amounts in thousands)
September 30,
2017
March 31,
2017
ASSETS Current assets: Cash $ 11,183 $ 6,450
Receivables 279,711 168,943 Inventories 214,283 258,430 Other
current assets 7,161 6,743 Total current assets
512,338 440,566 Property, plant and equipment, net 410,271 406,858
Other assets: Goodwill 103,380 100,566 Intangible assets,
net 48,429 51,758 Other assets 35,691 46,537
Total
assets $ 1,110,109 $ 1,046,285
LIABILITIES, MEZZANINE EQUITY
AND STOCKHOLDERS’ EQUITY Current liabilities: Current
maturities of debt obligations $ 26,818 $ 37,789 Current maturities
of capital lease obligations 21,949 21,450 Accounts payable 93,944
121,922 Current portion of liability-classified stock-based awards
- 11,926 Other accrued liabilities 71,611 54,460 Accrued income
taxes 12,209 8,207 Total current liabilities 226,531
255,754 Long-term debt obligations 358,047 310,849 Long-term
capital lease obligations 60,934 58,710 Deferred tax liabilities
42,971 44,007 Other liabilities 22,868 26,530 Total
liabilities 711,351 695,850
Mezzanine equity: Redeemable
convertible preferred stock 296,410 302,814 Deferred compensation —
unearned ESOP shares (194,192 ) (198,216 ) Redeemable
noncontrolling interest in subsidiaries 8,682 8,227
Total mezzanine equity 110,900 112,825
Stockholders’ equity:
Common stock 12,393 12,393 Paid-in capital 778,548 755,787 Common
stock in treasury, at cost (442,787 ) (436,984 ) Accumulated other
comprehensive loss (19,442 ) (24,815 ) Retained deficit
(56,746 ) (83,678 ) Total ADS stockholders’ equity 271,966
222,703 Noncontrolling interest in subsidiaries 15,892
14,907 Total stockholders’ equity 287,858
237,610
Total liabilities, mezzanine equity and stockholders’
equity $ 1,110,109 $ 1,046,285
ADVANCED DRAINAGE SYSTEMS, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(unaudited)
Six Months Ended September 30, (Amounts in thousands)
2017 2016 Cash Flow from Operating Activities
Net income $ 36,433 $ 43,702 Adjustments to reconcile net income to
net cash provided by operating activities: Depreciation and
amortization 37,941 36,036 Deferred income taxes (801 ) 1,829 Loss
on disposal of assets and costs from exit and disposal activities
8,544 939 ESOP and stock-based compensation 8,709 11,217
Amortization of deferred financing charges 550 702 Fair market
value adjustments to derivatives (590 ) (9,060 ) Equity in net loss
of unconsolidated affiliates 272 911 Other operating activities
12,078 657 Changes in working capital: Receivables (111,463 )
(31,113 ) Inventories 46,205 5,781 Prepaid expenses and other
current assets 256 (3,570 ) Accounts payable, accrued expenses, and
other liabilities (9,745 ) (12,455 ) Net cash
provided by operating activities 28,389 45,576
Cash Flows from
Investing Activities Capital expenditures (27,035 ) (23,796 )
Cash paid for acquisitions, net of cash acquired (1,990 ) - Other
investing activities (411 ) (622 ) Net cash used in
investing activities (29,436 ) (24,418 )
Cash Flows from
Financing Activities Proceeds from Revolving Credit Facility
335,950 235,600 Payments on Revolving Credit Facility (273,650 )
(207,900 ) Payments on Term Loan (72,500 ) (5,000 ) Proceeds from
Senior Notes 75,000 - Payments on Senior Notes (25,000 ) (25,000 )
Debt issuance costs (2,268 ) - Payments of notes, mortgages and
other debt (1,450 ) (430 ) Payments on capital lease obligations
(12,217 ) (10,810 ) Cash dividends paid (8,673 ) (7,338 ) Proceeds
from exercise of stock options 100 2,687 Repurchase of common stock
(7,947 ) - Other financing activities (1,171 ) (620 )
Net cash provided by (used in) financing activities 6,174 (18,811 )
Effect of exchange rate changes on cash (394 ) (98 )
Net change in cash 4,733 2,249 Cash at beginning of period
6,450 6,555
Cash at end of period $
11,183 $ 8,804
Selected Financial Data
The following tables set forth net sales by reportable segment
for the three and six months ended September 30, 2017 and 2016,
respectively.
Three Months Ended
Six Months Ended (Amounts in thousands
September 30,
% September 30, % except percentages)
2017 2016 Variance 2017 2016
Variance Domestic Pipe $ 253,486 $ 222,026 14.2 % $
479,677 $ 445,336 7.7 % Allied Products 98,398 89,747
9.6 % 191,704 179,200 7.0 % Domestic net sales $
351,884 $ 311,773 12.9 % $ 671,381 $ 624,536 7.5 %
International Pipe $ 38,204 $ 38,910 (1.8 %) $ 67,973 $
73,282 (7.2 %) Allied Products 10,961 10,102 8.5 %
20,054 20,543 (2.4 %) International net sales $
49,165 $ 49,012 0.3 % $ 88,027 $ 93,825 (6.2 %)
Consolidated
Pipe $ 291,690 $ 260,936 11.8 % $ 547,650 $ 518,618 5.6 % Allied
Products 109,359 99,849 9.5 % 211,758
199,743 6.0 % Net sales $ 401,049 $ 360,785 11.2 % $ 759,408 $
718,361 5.7 %
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 Fully Converted Share, all
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, Free Cash Flow, and Adjusted Earnings per Fully Converted
Share may be different from non-GAAP financial measures used by
other companies, even when similar terms are used to identify such
measures.
Adjusted EBITDA is a non-GAAP financial measure that comprises
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 Fully Converted Share is a non-GAAP
measure that is calculated by adjusting our Net income per share –
Basic, the most comparable GAAP measure. To effect this adjustment
with respect to Net income available to common stockholders, we
have (1) removed the accretion of Redeemable noncontrolling
interest in subsidiaries, (2) added back the dividends to
Redeemable convertible preferred stockholders and dividends paid to
unvested restricted stockholders, (3) made corresponding
adjustments to the amount allocated to participating securities
under the two class earnings per share computation method, and (4)
added back ESOP deferred compensation attributable to the shares of
Redeemable convertible preferred stock allocated to employee ESOP
accounts during the applicable period, which is a non-cash charge
to our earnings. We have also made adjustments to the weighted
average common shares outstanding – Basic to assume (1) share
conversion of the Redeemable convertible preferred stock
outstanding shares to common stock and (2) add shares of
outstanding unvested restricted stock. Adjusted Earnings Per Fully
Converted Share (non-GAAP) is a key metric used by management and
our board of directors to assess our financial performance. This
information is useful to investors as the preferred shares held by
the ESOP are required to be distributed to our employees over time,
which is done in the form of common stock after the conversion of
the preferred shares. As such, this measure is included because it
provides investors with information to understand the impact on the
financial statements once all preferred shares are converted and
distributed.
The following tables present a reconciliation of Adjusted EBITDA
to Net Income, Free Cash Flow to Cash Flow from Operating
Activities, and Adjusted Earnings Per Fully Converted Share to Net
income per share – Basic, the most comparable GAAP measures, for
each of the periods indicated:
Reconciliation of Adjusted EBITDA to Net Income
Three Months Ended Six Months Ended September
30, September 30, (Amounts in thousands)
2017
2016 2017 2016 Net income $ 17,959 $
24,281 $ 36,433 $ 43,702 Depreciation and amortization 19,720
18,010 37,941 36,036 Interest expense 5,055 4,546 9,534 9,330
Income tax expense 13,437 15,348 23,183
29,542 EBITDA 56,171 62,185 107,091 118,610 Derivative fair value
adjustments (781 ) (4,153 ) (590 ) (9,060 ) Foreign currency
transaction (gains) losses (1,579 ) 685 (2,448 ) (1,077 ) Loss on
disposal of assets and costs from exit and disposal activities
5,121 737 8,544 939 Unconsolidated affiliates interest, tax,
depreciation and amortization 715 802 1,423 1,580 Contingent
consideration remeasurement 6 33 32 57 Stock-based compensation
expense (benefit) 1,810 (2,908 ) 3,500 6,112 ESOP deferred
stock-based compensation 2,595 2,368 5,209 5,105 Executive
retirement benefits 894 79 909 158 Transaction costs 890 - 1,057 -
Restatement-related costs 1,042 5,773 2,502
14,985
Adjusted EBITDA $ 66,884 $ 65,601 $ 127,229 $
137,409
Reconciliation of Segment Adjusted EBITDA to Net
Income
Three Months Ended September 30, 2017 2016
(Amounts in thousands)
Domestic International
Domestic International Net income $ 16,932 $
1,027 $ 21,049 $ 3,232 Depreciation and amortization 17,658 2,062
15,829 2,181 Interest expense 4,971 84 4,436 110 Income tax expense
12,185 1,252 13,824 1,524 EBITDA 51,746
4,425 55,138 7,047 Derivative fair value adjustments (781 ) -
(4,153 ) - Foreign currency transaction (gains) losses - (1,579 ) -
685 Loss on disposal of assets and costs from exit and disposal
activities 4,994 127 512 225 Unconsolidated affiliates interest,
tax, depreciation and amortization 277 438 272 530 Contingent
consideration remeasurement 6 - 33 - Stock-based compensation
expense (benefit) 1,810 - (2,908 ) - ESOP deferred stock-based
compensation 2,595 - 2,368 - Executive retirement benefits 894 - 79
- Transaction costs 890 - - - Restatement-related costs
1,042 - 5,773 -
Adjusted
EBITDA(a) $ 63,473 $ 3,411 $ 57,114 $ 8,487 (a)
A portion of the reduction in International EBITDA is
related to transfer pricing. The reduction is fully offset by an
increase in Domestic EBITDA.
Six Months Ended September
30, 2017 2016 (Amounts in thousands)
Domestic International Domestic
International Net income $ 32,082 $ 4,351 $ 36,471 $
7,231 Depreciation and amortization 33,921 4,020 31,507 4,529
Interest expense 9,356 178 9,109 221 Income tax expense
21,700 1,483 25,977 3,565 EBITDA 97,059 10,032
103,064 15,546 Derivative fair value adjustments (590 ) - (9,060 )
- Foreign currency translation (gains) - (2,448 ) - (1,077 ) Loss
on disposal of assets and costs from exit and disposal activities
8,313 231 782 157 Unconsolidated affiliates interest, tax,
depreciation and amortization 571 852 551 1,029 Contingent
consideration remeasurement 32 - 57 - Stock-based compensation
expense 3,500 - 6,112 - ESOP deferred stock-based compensation
5,209 - 5,105 - Executive retirement benefits 909 - 158 -
Transaction costs 1,057 - - - Restatement-related costs
2,502 - 14,985 -
Adjusted
EBITDA(a) $ 118,562 $ 8,667 $ 121,754 $ 15,655
(a) A portion of the reduction in International EBITDA is
related to transfer pricing. The reduction is fully offset by an
increase in Domestic EBITDA.
Reconciliation of Free Cash Flow to Cash flow from Operating
Activities
Six Months Ended September
30, (Amounts in thousands)
2017 2016 Net cash
provided by operating activities $ 28,389 $ 45,576 Capital
expenditures (27,035 ) (23,796 )
Free cash
flow $ 1,354 $ 21,780
Reconciliation of Adjusted Earnings Per Fully Converted Share
(non-GAAP) to Net Income per Share – Basic
Three Months Ended Six Months
Ended September 30, September 30, (Amounts in
thousands, except per share data)
2017 2016
2017 2016 Net income available to common
stockholders $ 15,980 $ 20,875 $ 31,781 $ 36,808
Weighted
average common shares outstanding - Basic 55,269 54,429 55,286
54,250
Net income per share – Basic $ 0.29 $ 0.38 $ 0.57 $
0.68 Adjustments to net income available to common stockholders:
Accretion of redeemable non-controlling interest in subsidiaries -
380 - 742 Dividends to redeemable convertible preferred
stockholders 470 415 959 840 Dividends paid to unvested restricted
stockholders 16 24 35 54 Undistributed income allocated to
participating securities 1,397 2,040 2,830
3,563 Total adjustments to net income available to common
stockholders 1,883 2,859 3,824 5,199
Net income attributable to ADS 17,863 23,734 35,605 42,007
Adjustments to net income attributable to ADS:
Fair value of ESOP compensation related to
redeemableconvertible preferred stock
2,595 2,368 5,209 5,105
Adjusted net
income — (Non-GAAP) $ 20,458 $
26,102 $ 40,814 $ 47,110
Weighted Average Common Shares Outstanding — Basic 55,269 54,429
55,286 54,250 Adjustments to weighted average common shares
outstanding — Basic Unvested restricted shares 223 56 240 67
Redeemable convertible preferred shares 18,353 18,901
18,470 18,983
Weighted Average Common Shares
Outstanding - FullyConverted (Non-GAAP)
73,845 73,386 73,996
73,300 Adjusted Earnings per Fully Converted Share
(Non-GAAP) $ 0.28 $ 0.36 $
0.55 $ 0.64
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171102005400/en/
Advanced Drainage Systems, Inc.Michael Higgins,
614-658-0050Director, Investor Relations and Business
StrategyMike.higgins@ads-pipe.com
Advanced Drainage Systems (NYSE:WMS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Advanced Drainage Systems (NYSE:WMS)
Historical Stock Chart
From Apr 2023 to Apr 2024