Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q2 FY2019 Earnings Presentation
13 slides from Advanced Drainage Systems's earnings presentation, Nov 8, 2018
Slide 1: Second Quarter Fiscal 2019 Financial Results
Second Quarter Fiscal 2019 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. Such statements include, but are not limited to, statements regarding the anticipated timing for the issuance of additional historic and future financial
Slide 4: Q2 FY 2019 Highlights
Q2 FY 2019 Highlights Domestic construction market sales grew 2% despite headwinds from weather and prior year pull ahead. 1 2 3 Margin expansion in the quarter driven by solid execution, favorable pricing and cost containment. International sales grew 12% driven by growth in Canada, Mexico and our
Slide 5: Q2 FY 2019 Financial Performance
Q2 FY 2019 Financial Performance +90 bps (USD, in millions) Adjusted EBITDA +1.4% Domestic Markets + Construction +2% + Non-Residential +3% + Residential +5% − Infrastructure - 6% − Agriculture - 20% − Pipe - 3% + Allied +7% By Geography Domestic 0% + International +12% By Application Pipe 0% + Alli
Slide 6: Free Cash Flow Performance
Free Cash Flow Performance % of Sales 2.7% 3.5% All figures in USD, mm Numbers may not add due to rounding Net Debt³ 1Operating Cash Flow less CapEx 2Inventory, Accounts Receivable, Accounts Payable 3Total debt less cash (includes capital leases) 1.63x Leverage 2.63x Leverage CapEx Working Capital²
Slide 7: Fiscal 2019 Financial Outlook
Fiscal 2019 Financial Outlook Key Metric FY 2018 FY 2019 Y-o-Y Change Net Sales (in Millions) $1,330 $1,375 - $1,425 Up 3% to 7% Adj. EBITDA (in Millions) $210 $225 - $240 Up 7% to 14% Adj. EBITDA Margin 15.8% 16.4% - 16.8% +60 to +100 basis points Fiscal 2019 Expectations
Slide 8: Key Net Sales Drivers – Market Outlook
Market FY2019 Outlook Comments Domestic Construction End Markets Growth driven by market conversion and continued strength in the domestic construction markets. Agriculture End Market Spring selling season impacted by weather. Fall selling season will be contingent on weather. International End Mark
Slide 9: Q&A Session
Q&A Session
Slide 10: Closing Remarks
Reaffirming fiscal 2019 guidance for sales and Adjusted EBITDA. 1 Closing Remarks 2 Positioned for continued above-market growth in fiscal 2019 due to conversion strategy and strong growth of HP and Allied products. 3 Focused on execution and fundamentals as well as driving SPP initiatives to contin
Slide 11: Appendix
Appendix
Slide 12: Year-to-Date FY 2019 Financial Performance
Year-to-Date FY 2019 Financial Performance +170 bps (USD, in millions) Adjusted EBITDA +4.6% Domestic Markets + Construction +6% + Non-Residential +7% + Residential +8% − Infrastructure - 4% − Agriculture - 19% + Pipe +1% + Allied +8% By Geography + Domestic +3% + International +14% By Application +
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ___________________________ EBITDA as net income before interest, taxes, depreciation and amortization Adjusted EBITDA as EBITDA before stock based compensation expense, non-cash charges and certain other expenses Three Months Ended Six Months Ended September 30, Septe
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