Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q2 FY2021 Earnings Presentation
15 slides from Advanced Drainage Systems's earnings presentation, Nov 5, 2020
Slide 1: Advanced Drainage Systems Q2 Fiscal 2021 Financial Results
Advanced Drainage Systems Q2 Fiscal 2021 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. These statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s bu
Slide 4: Q2 Fiscal 2021 Revenue Highlights
1 2 3 4 5 Q2 Fiscal 2021 Revenue Highlights Consolidated net sales grew 10% driven by 4% growth in Legacy ADS business and 63% growth in Infiltrator business. Residential sales exposure increased to 38% of domestic sales, compared to 32% in Q2 FY20. Legacy ADS residential sales increased 15%. Legacy
Slide 5: Q2 Fiscal 2021 Highlights
1 2 3 4 Q2 Fiscal 2021 Highlights Consolidated Adjusted EBITDA increased 47%, driven by 35% increase in the Legacy ADS business and 85% increase in Infiltrator business. Legacy ADS Adjusted EBITDA growth driven by favorable material cost, leverage from the sales growth in both pipe and Allied produc
Slide 6: Q2 Fiscal 2021 Financial Performance
Q2 Fiscal 2021 Financial Performance +820 bps (USD, in millions) +9.7% By Application + Pipe +4% + Allied +3% Domestic Markets + Construction +4% + Non-Residential +1% + Residential +15% ‒ Infrastructure - 1% ‒ Agriculture - 2% Legacy ADS Revenue Performance By Geography + Domestic +4% + Pipe +4% +
Slide 7: Free Cash Flow and Capital Structure
Free Cash Flow and Capital Structure FY 2021 FY 2020 ∆ Consolidated Adjusted EBITDA $334 $199 $135 Working capital(2) 4 9 (5) Cash tax (38) (7) (31) Cash interest (21) (18) (3) Transaction costs(3) (1) (18) 17 Other 8 6 2 Consolidated Cash flow from operations $286 $171 $115 Capital expenditures (29
Slide 8: Fiscal Year 2021 Guidance
Fiscal Year 2021 Guidance Key Metric FY 2020 FY 2021 Y-o-Y Change Net Sales (in Millions) $1,674 $1,790 - $1,840 Up 7% to 10% Adj. EBITDA (in Millions) $362 $495 - $515 Up 37% to 42% Adj. EBITDA Margin 21.6% 27.7% - 28.0% +610 to +640 basis points Fiscal 2021 Expectations
Slide 9: Q&A Session
Q&A Session
Slide 10: Closing Remarks
1 2 3 4 5 Closing Remarks Employee health and safety will remain our highest priority. Project quotes, order rate and backlog remain positive year-over-year. Expect normal seasonal patterns to apply as year progresses. Strong profitability and free cash flow conversion expected to continue to enable
Slide 11: Appendix
Appendix
Slide 12: YTD Fiscal 2021 Financial Performance
YTD Fiscal 2021 Financial Performance By Application + Pipe +3% + Allied +3% Domestic Markets + Construction +3% ‒ Non-Residential - 1% + Residential +14% + Infrastructure +2% + Agriculture +14% Legacy ADS Revenue Performance By Geography + Domestic +4% + Pipe +4% + Allied +4% ‒ International - 2% ‒
Slide 13: Reconciliations
Reconciliations September 30,2020 September 30,2019 IntersegmentNet _Net Sales from IntersegmentNet _Net Sales from Net Sales Sales Net Sales Sales Pipe 292,133 S$ Gan Ss 290,496 S$ 281405 S CH Ss 281,063 Infiltrator Water Technologies 105,986 (48,692) 87.294 64,889 (02,189) 52,700 Inte Intemational
Slide 14: Reconciliations
Reconciliations ‘Three Months Ended Six Months Ended Sq 30, September 30, (Amounts in thous 2020 2020 2019 Segment Tete ‘Gross Profit Pipe s 100,496 $ 74246 S 191,095 $ 131,739 Intemational 14582 10.841 25,990 20,068, Inratr Wate Technologies 53,105, 30,144 101,033 30,14 Allied Product: 60,380 5 120
Slide 15: Reconciliations
Reconciliations 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) losses,
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