Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q1 2019 Earnings Presentation
12 slides from Advanced Drainage Systems's earnings presentation, Aug 9, 2018
Slide 1: First Quarter Fiscal 2019 Financial Results
First 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 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. Such statements include, but are not limited to, statements regarding the anticipated timing for the issuance of additional historic and future financial information and
Slide 4: Q1 FY 2019 Highlights
8% net sales growth with strength in both domestic and international businesses. 1 Q1 FY 2019 Highlights 2 3 Margin expansion in the quarter driven by solid execution, favorable pricing and cost containment. Domestic construction markets growth of 10% driven by continued strength in non-residential
Slide 5: Q1 FY 2019 Financial Performance
Q1 FY 2019 Financial Performance +260 bps (USD, in millions) Adjusted EBITDA +8.2% Domestic Markets + Construction +10% + Non-Residential +11% + Residential +11% − Infrastructure - 2% − Agriculture - 17% + Pipe +6% + Allied +11% By Geography + Domestic +7% + International +17% By Application + Pipe
Slide 6: Free Cash Flow Performance
Free Cash Flow Performance % of Sales 2.7% 3.5% All figures in USD, mm Net Debt³ 1Operating Cash Flow less CapEx 2Inventory, Accounts Receivable, Accounts Payable 3Total debt less cash (includes capital leases) 1.75x Leverage 2.76x Leverage CapEx Working Capital² Free Cash Flow¹ FY 2019 FY 2018 ∆ Ad
Slide 7: Fiscal 2019 Financial Outlook
Fiscal 2019 Financial Outlook Key Metric FY 2018 FY 2019 Y-o-Y Change Previous New Net Sales (in Millions) $1,330 $1,375 - $1,425 $1,375 - $1,425 Up 3% to 7% Adj. EBITDA (in Millions) $210 $220 - $240 $225 - $240 Up 7% to 14% Adj. EBITDA Margin 15.8% 16.0% - 16.8% 16.4% - 16.8% +60 to +100 basis poi
Slide 8: FY2019 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 Market
Slide 9: Q&A Session
Q&A Session
Slide 10: Closing Remarks
Expect healthy demand to continue in core domestic construction markets. 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
Slide 11: Appendix
Appendix
Slide 12: 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 June 30, (Amounts in thousands) 2018
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