Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q4 FY2023 Earnings Presentation
16 slides from Advanced Drainage Systems's earnings presentation, May 18, 2023
Slide 1: Q4 Fiscal 2023 Financial Results
/IBDS Q4 Fiscal 2023 Financial Results May 18, 2023
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: Fiscal Year 2023 Results
Fiscal Year 2023 Results Key Metric FY 2023 Guidance FY 2023 Results Net Sales $2,975 - $3,050 $3,071 (in Millions) Adj. EBITDA . (in Millions) $850 $890 $904 Adj. EBITDA Margin 28.6% - 29.2% 29.4% FY23 Revenue by End Market International 8% Agriculture & Sales Growth 6% ‘ [> Non-Residential Non-Res
Slide 5: Q4 Fiscal 2023 Highlights
Q4 Fiscal 2023 Highlights Demand + Rising interest rates, inflation and macroeconomic uncertainty resulting in slower demand. + Continued focus on material conversion, as well as growth in favorable geographies (Southeast, Atlantic Coast and Texas) and product lines (ex. Allied products, HP pipe and
Slide 6: Q4 Fiscal 2023 Financial Performance
Q4 Fiscal 2023 Financial Performance Revenue (9%) {US0.nmions) $678 Q4 FY23 Q4FY22 Adj. EBI +300 bps 24.8% Q4 FY23 Q4 FY22 ISDS. Revenue Performance By Business Domestic Markets - ADS Legacy (6%) = Construction ce ae (9%) - Pipe (10%) - Non-Residential (10%) * Allied Products 0% =) Residential (1%)
Slide 7: Free Cash Flow and Capital Structure
Free Cash Flow and Capital Structure Free Cash Flow “) FY 2023 FY 2022 A Consolidated Adjusted EBITDA $904 $676 $228 Working capital? 45 (244) 289 Cash tax (167) (106) (1) Cash interest (60) (33) (27) Transaction costs® (4) (3) 0) Other (10) (15) 5 Consolidated cash flow from operations $708 $275 $4
Slide 8: Fiscal Year 2024 Guidance
Fiscal Year 2024 Guidance Fiscal 2024 Expectations Key Metric FY 2023 FY 2024 Y-o-Y Change Net Sales _ Down (in Millions) $3,071 $2,600 - $2,800 9% to 15% Adj. EBITDA . Down (in Millions) $904 $725 - $825 9% to 20% Adj. EBITDA Margin 29.4% 27.9% - 29.4% REA (flee) basis points ISDS.
Slide 9: Q&A
Slide 10: Appendix
Appendix /IBDS
Slide 11: Fiscal 2023 Financial Performance
Fiscal 2023 Financial Performance Revenue +H% {US0.nmions) $2,769 FY23 Fy22 Adj. EBIT! +500 bps 24.4% FY23 FY22 ISDS. Revenue Performance By Business Domestic Markets + ADS Legacy 415% + Construction ooceeceesee H12% + Pipe 12% + Non-Residential +15% + Allied Products +22% + Residential +8% = Infilt
Slide 12: Addressable Market, FY23 Revenue and Key Growth Strategies
Addressable Market FY23 Revenue • • • • • Key Growth Strategies: • • • • 1 2
Slide 13: Non-Residential Construction Timeline
Non-Residential Construction Timeline AL Construction Breaking Ground to Completion VA Start \- — — ((-2MonTHS _) 1 + ( ~6MONTHS >) +}-——fL ~6 MONTHS WN: and HP ut dual wall pipe StormTech Chip _ ov! ork <=) =. 1) @ Site Work begins begins + Site clearing & rework + Foundation + Wall Framing + Floor
Slide 14: Reconciliations: Net Sales by Segment
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 $ 357,407 $ (10,289) $ 347,118 $ 396,690 $ (7,911) $ 388,779 Infiltrator Water Technologies 102,723 (15,046) 87,677 130,576 (23
Slide 15: Reconciliations: Segment Adjusted Gross Profit
Reconciliations 15 (Amounts in thousands) 2023 2022 2023 2022 Segment adjusted gross profit Pipe $ 111,540 $ 94,501 $ 532,551 $ 353,182 Infiltrator Water Technologies 40,011 53,030 233,580 231,825 International 10,225 9,127 61,681 58,822 Allied Products & Other 82,827 80,028 376,299 284,091 Interseg
Slide 16: Reconciliations Notes
Reconciliations 16 Notes: a) In the fourth quarter of fiscal 2022, the approximately 0.3 million remaining unallocated shares of Preferred Stock were allocated on March 31, 2022, after repayment of the ESOP loan. b) Represents expenses recorded related to legal, accounting and other professional fee
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