Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q3 2024 Earnings Presentation
15 slides from Advanced Drainage Systems's earnings presentation, Feb 8, 2024
Slide 1: Q3 Fiscal 2024 Financial Results
/IBDS Q3 Fiscal 2024. Financial Results February 8, 2024
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 ISDS.
Slide 3: Forward Looking Statements and Non-GAAP Financial Metrics
Forward Looking Statements and Non-GAAP Financial Metrics Forward Looking Statements Certain statements in this press release 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 projection
Slide 4: Put Simply: Our Promise
PUT SIMPLY /// OUR PROMISE To protect and manage water, the world’s most precious resource, safeguarding our environment and communities. /IBDS
Slide 5: Harris Poll Results — Framing the Problem
Harris Poll Results — Framing the Problem How concerned are you about the stormwater management infrastructure where you live? 51 % = Very Concerned are concerned = Somewhat Concerned lam concerned about how stormwater in my area is managed to ensure sustainability 58% Agree | worry about flooding i
Slide 6: Where ADS plays a role
Where ADS plays a role 51% of Americans are concerned with stormwater management ; ae Reclamation and ee ADS’ products and solutions are uniquely positioned to address stormwater concerns ISDS.
Slide 7: Q3 Fiscal 2024 Highlights
Q3 Fiscal 2024 Highlights Demand Revenue * Pipe market demand remains largely in line with expectations. + Infrastructure activity picking up on locally funded public projects ww Seles, * Infitrator business and Allied e products portfolio continued to and airports. $558 $566 . . . . . perform bette
Slide 8: Q3 Fiscal 2024 Financial Performance
Q3 Fiscal 2024 Financial Performance Revenue Revenue Performance H% (USD, ln millons) ; ; By Business Domestic Markets tess ~ ADS Legacy (1%) * Construction, wet % = Pipe (4%) - Non-Residential (3%) + Allied Products 48% i Residential 40% + Infiltrator 417% + Infrastructure +22% Q3 FY24 Q3 FY23 ~ Ag
Slide 9: Free Cash Flow and Capital Structure
Free Cash Flow and Capital Structure Free Cash Flow “) FY 2024 FY 2023 Consolidated Adjusted EBITDA $732 $732 Ee) Working capital) 423 82 al Cash tax (115) (136) 2 Cash interest (62) (25) (27) Transaction costs® @) (3) ) Other 6 40 5 Consolidated cash flow from operations $700 $660 $40 Capital expen
Slide 10: Updated Fiscal Year 2024 Guidance
Updated Fiscal Year 2024 Guidance Fiscal 2024 Expectations Key Metric FY 2023 FY 2024 Y-o-Y Change oe i $3,071 $2,800 - $2,850 (9%) to (7%) a Fen $904 $880 - $910 (3%) to 1% Adj. EBITDA Margin 29.4% 314% - 31.9% ia ence ISDS. 10
Slide 11: Q&A
Slide 12: Appendix
Appendix /IBDS
Slide 13: Year-to-Date Fiscal 2024 Financial Performance
Year-to-Date Fiscal 2024 Financial Performance Revenue Revenue Performance 9 (USD, ln millons) 1) By Business Domestic Markets - ADS Legacy (11%) CONS TUCHONY cosas sensenpsapese - Pipe (13%) Non-Residential (12%) - Allied Products (4%) BE Residential (9%) ee (3%) + Infrastructure +6% YTD FY24 YTD F
Slide 14: Reconciliations
Reconciliations 14 (In thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 360,733 $ (14,680) $ 346,053 $ 375,719 $ (10,839) $ 364,880 Infiltrator Water Technologies 131,144 (27,273) 103,871 103,895 (
Slide 15: Reconciliations Notes
Reconciliations 15 Notes: a) Includes derivative fair value adjustments, foreign currency transaction (gains) losses, the proportionate share of interest, income taxes, depreciation and amortization related to the South American Joint Venture, which is accounted for under the equity method of accoun
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