Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q4 FY2021 Earnings Presentation
16 slides from Advanced Drainage Systems's earnings presentation, May 20, 2021
Slide 1: Q4 and FY 2021 Financial Results
Q4 and FY 2021 Financial Results May 20, 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: Q4 Fiscal 2021 Revenue Highlights
Q4 Fiscal 2021 Revenue Highlights 4 Legacy ADS residential sales increased 21%, 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 portfo
Slide 5: Q4 Fiscal 2021 Highlights
Q4 Fiscal 2021 Highlights 5 Infiltrator profitability driven by strong demand, favorable pricing and impact from synergy programs. Converted 66% of Adjusted EBITDA into Free Cash Flow in FY21, in excess of 50% target. Legacy ADS Adjusted EBITDA growth driven by leverage from sales growth in both pip
Slide 6: Fiscal 2021 Financial Results vs. Investor Day Plan
6 Fiscal 2021 Financial Results vs. Investor Day Plan Fiscal 2021 Results
Slide 7: Q4 Fiscal 2021 Financial Performance
Q4 Fiscal 2021 Financial Performance 7 +190 bps (USD, in millions) +19.7% $72.1 $15.4 $3.1 ($2.0) $9.2 $94.5 Revenue Adj. EBITDA ($3.8) $371 $444 19.4% 21.3% ADS Legacy +$12.7M $0.5
Slide 8: Fiscal 2021 Financial Performance
Fiscal 2021 Financial Performance 8 +700 bps (USD, in millions) +18.5% $361.9 $58.1 $59.4 ($5.5) $87.6 $567.0 Revenue Adj. EBITDA $3.7 $1,674 $1,983 21.6% 28.6% ADS Legacy +$115.7M $1.8
Slide 9: Free Cash Flow and Capital Structure
Free Cash Flow and Capital Structure 9 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 10: Fiscal Year 2022 Guidance
Fiscal Year 2022 Guidance 10 Fiscal 2022 Expectations
Slide 11: Q&A
/IADS Q&A
Slide 12: Closing Remarks
Closing Remarks 12 Continue to focus on disciplined execution, capitalizing on favorable market dynamics, operational productivity initiatives, recycling programs and capital deployment initiatives as we build on strong FY21 results. Strong profitability and free cash flow conversion expected to ena
Slide 13: Appendix
Appendix MDDS
Slide 14: Reconciliations
/IADS Reconciliations ‘Three Months Ended March 31,2027 Warch 30,2020 Tntersegment Net Nat Sales Font Tnersegmeat Net—_‘Nat Sales Font et Sues Sales Exental Customers ot Sales Sales Bernal v Ban cays Br OW 23S Ty 8 ET ie aur TSH 40 as919 Sst 25197 mam = 9157 = 9437 = 3B oa SLL 08 unos = onors xm ers
Slide 15: Reconciliations
Reconciliations 15 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 16: Reconciliations
Reconciliations ‘Three Months Ended Fiscal Year Bade (downs n honcand) Tor s ted Gross Prost 5 5300 § ESOP and stoc-based compensation expense [SOP spacial dnd compensation : 19 reated expenses , : COV -19 rete Inventory stp uprated to Instr Water Technologie acgustion : " ‘Total Gross Profit Tar So
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