Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q1 FY2018 Earnings Presentation
14 slides from Advanced Drainage Systems's earnings presentation, Aug 3, 2017
Slide 1: First Fiscal Quarter 2018 Financial Results
First Fiscal Quarter 2018 Financial Results
Slide 2: Management Presenters
Management Presenters Joe Chlapaty Chairman and Chief Executive Officer Scott Cottrill Executive Vice President, Chief Financial Officer, Secretary and Treasurer Mike Higgins Director, Investor Relations & Business Strategy
Slide 3: Safe Harbor and Non-GAAP Financial Metrics
Safe Harbor and Non-GAAP Financial Metrics Certain statements in this presentation 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. Such statements include,
Slide 4: Q1 2018 Highlights
Domestic construction markets grew 4% versus the prior year, driven by solid demand in our core domestic construction markets. 1 Q1 2018 Highlights 2 3 Repurchased 400,000 shares in the quarter, consistent with our stated capital allocation policy to engage in opportunistic share repurchases. Margin
Slide 5: Q1 2018 Financial Performance
Q1 2018 Financial Performance Favorable domestic construction market demand in the quarter offset by weakness in Ag and International markets Adjusted EBITDA Margin - 330 bps (USD, in millions) Revenue Adjusted EBITDA Margin Q1 FY17 20.1% Price/Material Costs (2.4)% Allied Products 0.4% Transportati
Slide 6: General and Administrative Expenses
General and Administrative Expenses Q1 FY18 Q1 FY17 $ Var. G&A expense, as reported $26.7 $34.5 $(7.8) EBITDA adjustments related to G&A expense: Stock-based compensation expense 1.6 8.6 (7.0) ESOP deferred stock-based compensation 0.3 0.3 _ Restatement-related costs 1.5 9.2 (7.7) Expense related to
Slide 7: Free Cash Flow
Free Cash Flow¹ Free Cash Flow Performance % of Sales 2.7% 3.5% All figures in USD, mm Net Debt³ FY 2018 FY 2017 Change Adjusted EBITDA $60 $72 $(12) Working Capital(2) $(65) $(56) $(9) Cash Tax $(6) $(2) $(4) Cash Interest $(4) $(5) $1 Restatement related costs $(2) $(14) $12 Other $0 $5 $(5) Cash
Slide 8: Capital Structure and Deployment Priorities
Capital Structure and Deployment Priorities Cash and Leverage Cash Flow from Operations Sources Uses Top priorities for FY2018 include: supporting growth in certain diameters and geographies, productivity and efficiency initiatives (SPP) Focus on M&A to leverage our national footprint and sales and
Slide 9: Market FY2018 Outlook
Market FY2018 Outlook Comments Domestic Construction End Markets Anticipated end market growth intact, though at a slower pace than previously anticipated Agriculture End Market Ag market expected to be down mid-single digits for FY2018 International End Market Modest improvement expected in Mexico;
Slide 10: FY 2018 Financial Outlook
FY 2018 Financial Outlook Key Metric FY 2017 FY 2018 Y-o-Y Change Net Sales (in Billions) $1,257 $1,275 - $1,325 Up 1% to 5% Adj. EBITDA (in Millions) $193 $200 - $220 Up 4% to 14% Adj. EBITDA Margin 15.4% 15.7% - 16.6% +30 to +120 basis points Fiscal Year 2018 Expectations Net sales growth driven b
Slide 11: Q&A Session
Q&A Session
Slide 12: Closing Remarks
Steady demand in core construction markets expected to continue in fiscal 2018. 1 Closing Remarks 2 3 Cost reduction initiatives have been put in place this quarter to improve cost structure in fiscal 2018. Positioned for growth in fiscal 2018 due to demand, continued success with conversion strateg
Slide 13: Appendix
Appendix
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ___________________________ EBITDA as net income before interest, taxes, depreciation and amortization Adjusted EBITDA as EBITDA before stock based compensation expense, non-cash charges and certain other expenses Three Months Ended June 30, (Amounts in thousands) 2017
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