Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q3 FY2018 Earnings Presentation
14 slides from Advanced Drainage Systems's earnings presentation, Feb 8, 2018
Slide 1: Third Fiscal Quarter 2018 Financial Results
Third Fiscal Quarter 2018 Financial Results
Slide 2: Management Presenters
Management Presenters Scott Barbour President and Chief Executive Officer Scott Cottrill Executive Vice President, Chief Financial Officer and Secretary Mike Higgins Director, Investor Relations & Business Strategy
Slide 3: Safe Harbor and Non-GAAP Financial Metrics
Safe Harbor and Non-GAAP Financial Metrics Certain statements in this presentation may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include,
Slide 4: Q3 FY 2018 Highlights
9% net sales growth driven by strong growth in both Pipe and Allied products. 1 Q3 FY 2018 Highlights 2 3 Margin expansion in the quarter driven by solid execution, pricing and product mix. Double-digit growth across all domestic construction markets driven by solid demand and price increases. 4 Gro
Slide 5: Q3 FY 2018 Financial Performance
Q3 FY 2018 Financial Performance Q3 results driven by strong demand in the domestic construction markets and favorable pricing. Margin expansion driven by solid execution, pricing and product mix. +280 bps (USD, in millions) Adjusted EBITDA +8.9% Domestic Markets + Construction +12% + Non-Residentia
Slide 6: Free Cash Flow Performance
Free Cash Flow Performance % of Sales 2.7% 3.5% All figures in USD, mm Net Debt³ FY 2018 FY 2017 ∆ Adjusted EBITDA $183 $181 $2 Working Capital(2) $(4) $(23) $19 Cash Tax $(25) $(4) $(21) Cash Interest $(14) $(13) $(1) Restatement related costs $(4) $(24) $20 Other $3 $0 $3 Cash flow from operating
Slide 7: U.S. Tax Reform
U.S. Tax Reform $13.8 million one-time benefit, net to income tax expense in Q3 FY18 Benefit from revaluation of deferred tax liabilities of $14.7 million (non-cash) Expense from deemed repatriation of foreign earnings $0.9 million $3.0 million benefit from year-to-date impact of change in statutory
Slide 8: FY2018 Market Outlook
Market FY2018 Outlook Comments Domestic Construction End Markets End market outlook still favorable; Q4 results will be contingent on weather Agriculture End Market Fiscal year-to-date in-line with expectations; Q4 results will be contingent on weather International End Market Mexico expected to be
Slide 9: FY 2018 Financial Outlook
FY 2018 Financial Outlook Key Metric FY 2017 FY 2018 Y-o-Y Change Net Sales (in Millions) $1,257 $1,275 - $1,325 Up 1% to 5% Adj. EBITDA (in Millions) $193 $195 - $210 Up 1% to 9% Adj. EBITDA Margin 15.4% 15.3% - 15.8% (10) to +40 basis points Fiscal Year 2018 Expectations
Slide 10: Q&A Session
Q&A Session
Slide 11: Closing Remarks
Steady demand in core domestic construction markets expected to continue. 1 Closing Remarks 2 3 Focused on execution and fundamentals as well as driving SPP initiatives to continue improving profitability. Positioned for continued above-market growth this year due to conversion strategies and strong
Slide 12: Appendix
Appendix
Slide 13: Fiscal Year-to-Date Financial Performance
Fiscal Year-to-Date Financial Performance - 80 bps (USD, in millions) Adjusted EBITDA +6.6% Domestic Markets + Construction +10% + Non-Residential +9% + Residential +13% + Infrastructure +6% − Agriculture - 3% + Pipe +8% + Allied +8% By Geography + Domestic +8% − International - 2% By Application +
Slide 14: 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 Nine Months Ended December 31, Decem
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