Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q4 FY2020 Earnings Presentation
18 slides from Advanced Drainage Systems's earnings presentation, May 21, 2020
Slide 1: Advanced Drainage Systems Q4 and Fiscal 2020 Financial Results
Advanced Drainage Systems Q4 and Fiscal 2020 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: COVID-19 Response
1 2 3 4 5 COVID-19 Response Employee health and safety is our highest priority. We have proactively implemented safety and risk mitigation practices at all facilities. ADS provides essential water management solutions to our customers and the communities they serve. Balance sheet and liquidity posit
Slide 5: Q4 Fiscal 2020 Highlights
1 2 3 4 5 Q4 Fiscal 2020 Highlights Consolidated net sales grew 36% driven by 15% organic growth and contribution from Infiltrator Water Technologies. Organic domestic sales growth driven by key sales programs, as we continue to execute on material conversion, water management solutions and key grow
Slide 6: Fiscal 2020 Financial Results vs Guidance
Fiscal 2020 Financial Results Key Metric Low High Fiscal 2020 Net Sales (in Millions) $1,600 $1,650 $1,674 Adj. EBITDA (in Millions) $325 $345 $362 Adj. EBITDA Margin 20.3% 20.9% 21.7% Fiscal 2020 Guidance Results
Slide 7: Fiscal 2020 Domestic End Market Performance
Fiscal 2020 Domestic End Market Performance End Market % of Domestic Sales Market Performance Revenue Growth Non-Residential Construction +3% +7% Residential Construction +2% +76%* Infrastructure Construction +1% +6% Agriculture +20% +35% 52% 32% 8% 8% ADS organic construction market sales outperfor
Slide 8: Q4 Fiscal 2020 Financial Performance
Q4 Fiscal 2020 Financial Performance +590 bps Organic* +160 bps (USD, in millions) +36.2% Organic* +15.3% By Application + Pipe +12% + Allied +23% Domestic Markets + Construction +12% + Non-Residential +9% + Residential +19% + Infrastructure +19% + Agriculture +88% Organic* Revenue Performance By Ge
Slide 9: Fiscal 2020 Financial Performance
Fiscal 2020 Financial Performance +480 bps Organic* +230 bps (USD, in millions) +20.9% Organic* +8.8% $232.0 $54.9 $46.7 ($25.0) $76.4 $361.9 Revenue Adj. EBITDA *Organic results represent the legacy ADS business and exclude Infiltrator Water Technologies results. ($21.1) $1,674 $1,385 $1,506* 21.6%
Slide 10: Free Cash Flow
Free Cash Flow FY 2020 FY 2019 ∆ Consolidated Adjusted EBITDA $362 $232 $130 Working capital(2) 31 (21) 52 Cash tax (9) (30) 21 Cash interest (41) (16) (25) Transaction costs(3) (23) ‒ (23) Other (14) (13) (1) Consolidated Cash flow from operations $306 $152 $154 Capital expenditures (67) (44) (23)
Slide 11: Capital Structure & Liquidity
Capital Structure & Liquidity (in millions) March 31, 2020 March 31, 2019 Interest Term Loan Facility (9/2019) $ 648 $ ‒ L + 2.250% Senior Notes (9/2019) 350 ‒ 5.000% Revolving Credit Facility 100 ‒ L + 2.000% Credit Agreement (2017) ‒ 134 L + 1.125% Senior Notes (2017) ‒ 100 3.660% Equipment financ
Slide 12: Q&A Session
Q&A Session
Slide 13: Closing Remarks
1 2 3 4 5 Closing Remarks Employee health and safety will remain our highest priority. ADS and Infiltrator continue to provide essential water management and on-site septic solutions to the customers and the communities they serve. Balance sheet and liquidity position remain strong with $413 million
Slide 14: Appendix
Appendix
Slide 15: Fiscal 2020 Infiltrator Water Technologies Results
Fiscal 2020 Infiltrator Water Technologies Results Infiltrator Water Technologies results performed above previous expectations Infiltrator Water Technologies acquisition closed July 31, 2019. (1) Includes $15.9 million and $41.7 million of intersegment net sales for the three and eight months ended
Slide 16: Reconciliations
Reconciliations ‘March 31, 2020 ‘March 31, 2019 IntersegmentNet _Net Sales from IntersegmentNet _Net Sales from Net Sales Sales Net Sales Sales 3 203,150 S GH) 7S 201,804 180,71 $ 180,780 74,033 (45.919) 58.14 _ a ‘March 31, 2020 March 31,2019 IntersegmentNet _Net Sales from IntersegmentNet _Net Sal
Slide 17: Reconciliations
Reconciliations ‘Three Months Ended Fiscal Year Ended March 31, (Amounts in thous 2020 2019 2020 2019 Segment Adjust mie Gross Profi ipe Intemational Infiltrator Water Techalogies Allied Product: Intersegment renee Total Segment. Adjusted Gross Profit Depreciation and amortization ESOP and stock-bas
Slide 18: Reconciliations
Reconciliations (a) Includes derivative fair value adjustments, foreign currency transaction (gains) losses, the proportional share of interest, income taxes, depreciation and amortization related to the South American Joint Venture, which are accounted for under the equity method of accounting, con
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