Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q3 FY2019 Earnings Presentation
14 slides from Advanced Drainage Systems's earnings presentation, Feb 7, 2019
Slide 1: Advanced Drainage Systems Q3 Fiscal 2019 Financial Results
Advanced Drainage Systems Q3 Fiscal 2019 Financial Results
Slide 2: Management Presenters
Management Presenters Scott Barbour President and Chief Executive Officer Scott Cottrill Executive Vice President, Chief Financial Officer Mike Higgins Vice President, Corporate Strategy & Investor Relations
Slide 3: Forward Looking Statements and Non-GAAP Financial Metrics
Forward Looking Statements and Non-GAAP Financial Metrics Certain statements in this presentation may be deemed to be forward-looking statements. Such statements include, but are not limited to, statements regarding the anticipated timing for the issuance of additional historic and future financial
Slide 4: Q3 FY 2019 Highlights
Q3 FY 2019 Highlights Domestic construction market sales grew 6% despite record rainfall in the quarter, in led by non-residential and residential construction. Double-digit growth of key products such as HP pipe, StormTech and Nyloplast. Well positioned to achieve financial targets for fiscal year
Slide 5: Q3 Year-Over-Year Weather Trend
Q3 Year-Over-Year Weather Trend* *Data from 2017 and October/November 2018 provided by NOAA. December 2018 data based on management estimates. % Change in Precipitation Inches % Change in Temperature
Slide 6: Q3 FY 2019 Financial Performance
Q3 FY 2019 Financial Performance (230) bps (USD, in millions) (0.8%) Domestic Markets + Construction +6% + Non-Residential +6% + Residential +12% − Infrastructure - 9% − Agriculture - 30% − Pipe - 1% + Allied +6% By Geography + Domestic +1% − International - 11% By Application − Pipe - 2% + Allied +
Slide 7: Free Cash Flow and Net Debt
Free Cash Flow % of Sales 2.7% 3.5% All figures in USD, mm Numbers may not add due to rounding Net Debt³ 1Operating Cash Flow less CapEx 2Inventory, Accounts Receivable, Accounts Payable 3Total debt less cash (includes capital leases) 1.5x Leverage 2.0x Leverage CapEx Working Capital² FY 2019 FY 201
Slide 8: Fiscal 2019 Financial Outlook
Fiscal 2019 Financial Outlook Key Metric FY 2018 FY 2019 Y-o-Y Change Net Sales (in Millions) $1,330 $1,375 - $1,425 Up 3% to 7% Adj. EBITDA (in Millions) $210 $225 - $240 Up 7% to 14% Adj. EBITDA Margin 15.8% 16.4% - 16.8% +60 to +100 basis points Fiscal 2019 Expectations
Slide 9: Key Net Sales Drivers – Market Outlook
Key Net Sales Drivers – Market Outlook Market FY2019 Outlook Comments Domestic Construction End Markets Growth driven by market conversion and continued strength in the domestic construction markets. Agriculture End Market Spring and fall selling seasons impacted by inclement weather. International
Slide 10: Q&A Session
Q&A Session
Slide 11: Closing Remarks
Closing Remarks Domestic construction market sales grew 6% despite record rainfall in the quarter, in led by non-residential and residential construction. Positioned for continued above-market growth in fiscal 2019 due to conversion and solutions strategies. Focused on execution, fundamentals and dr
Slide 12: Appendix
Appendix
Slide 13: YTD FY 2019 Financial Performance
YTD FY 2019 Financial Performance +50 bps (USD, in millions) +3.0% Domestic Markets + Construction +6% + Non-Residential +7% + Residential +9% − Infrastructure - 5% − Agriculture - 23% + Pipe +1% + Allied +8% By Geography + Domestic +3% + International +6% By Application + Pipe +1% + Allied +7% $183
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Nine Months Ended December 31, December 31, (Amounts in thousands) 2018 2017 2018 2017 Net income $16,550 $33,215 $79,573 $69,648 Depreciation and amortization 17,549 17,852 52,912 55,793 Interest expense 5,695 3,086 14,028 12,620 Income tax expense
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