Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q3 FY2021 Earnings Presentation
15 slides from Advanced Drainage Systems's earnings presentation, Feb 4, 2021
Slide 1: Q3 Fiscal 2021 Financial Results
Q3 Fiscal 2021 Financial Results February 4, 2021
Slide 2: Management Presenters
Management Presenters 2 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 3 Certain statements in this presentation 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
Slide 4: Q3 Fiscal 2021 Revenue Highlights
Q3 Fiscal 2021 Revenue Highlights 4 Residential sales increased 36%, driven by favorable dynamics and material conversion in new home construction, home improvement and on-site septic. Infiltrator Water Technologies results exceeded expectations, driven by growth across the product portfolio as well
Slide 5: Q3 Fiscal 2021 Highlights
Q3 Fiscal 2021 Highlights 5 Infiltrator profitability driven by strong demand, favorable material costs, impact from synergy programs and continued execution of proven business model. Solid Adjusted EBITDA driving strong free cash flow conversion. Favorable liquidity of $563 million and 1.1x leverag
Slide 6: Q3 Fiscal 2021 Financial Performance
Q3 Fiscal 2021 Financial Performance 6 +540 bps (USD, in millions) +23.6% $91.3 $27.2 $13.4 ($1.5) $15.0 $138.9 Revenue Adj. EBITDA ($6.7) $393 $486 23.2% 28.6% ADS Legacy +$32.4M $0.2
Slide 7: Free Cash Flow and Capital Structure
Free Cash Flow and Capital Structure 7 Free Cash Flow (¹) Note: all figures in USD, $mm. Figures may not add due to rounding. Operating Cash Flow less capital expenditures. Inventory, Trade Receivables, Accounts Payable Advisory, legal, and consulting fees related to acquisition of Infiltrator Water
Slide 8: Updated Fiscal Year 2021 Guidance
Updated Fiscal Year 2021 Guidance 8 Fiscal 2021 Expectations
Slide 9: Q&A
&A Q /IADS
Slide 10: Closing Remarks
Closing Remarks 10 Continue to focus on disciplined execution, favorable pricing, level loading facilities, operational productivity initiatives, recycling programs and capital deployment initiatives as we build on strong year-to-date results. Strong profitability and free cash flow conversion expec
Slide 11: Appendix
Appendix JIDDS
Slide 12: YTD Fiscal 2021 Financial Performance
YTD Fiscal 2021 Financial Performance 12 +850 bps (USD, in millions) +18.1% $289.8 $42.7 $56.3 ($3.6) $78.4 $472.4 Revenue Adj. EBITDA $7.5 $1,303 $1,539 22.2% 30.7% ADS Legacy +$102.9M $1.3
Slide 13: Reconciliations
/IADS Poe Infitrator Water Technologies Intemational Intemational Ppe Jntemtional- Aled Products ‘Total ternational ‘Allied Products & Other Intesegment Fhminations ‘Total Consolidated Poe Infitrator Water Technologies Intemational Intemabonal- Ppe Intemational Allied Products ‘Total ternational All
Slide 14: Reconciliations
Reconciliations 14 Includes expenses directly related to our response to the COVID-19 pandemic, including adjustments to our pandemic pay program and expenses associated with our 3rd party crisis management vendor. Includes derivative fair value adjustments, foreign currency transaction (gains) loss
Slide 15: Reconciliations
Reconciliations ‘Three Months Ended [Nine Month Ended December 31, December 31, (Amounts in thousand) 700 To 700 zo Segment Adjusted Gross Profit Ppe s wel S 6105 $ 29Me Ss 192,764 Intemational 1986 9066 38916 2134 Infikrator Water Technologies 48518 34735 149351 61379 ‘Allied Products & Other 55,15
Advanced Drainage Systems — Q3 FY2021 Earnings Presentation on 6ix