Advanced Drainage Systems, Inc. · NYSE:WMS

Advanced Drainage Systems — FY2018 Earnings Presentation

15 slides from Advanced Drainage Systems's earnings presentation, May 29, 2018

  1. Slide 1: Fourth Quarter and Fiscal Year 2018 Financial Results

    Fourth Quarter and Fiscal Year 2018 Financial Results

  2. 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

  3. 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,

  4. Slide 4: Q4 Fiscal 2018 Highlights

    2% net sales growth driven by both Pipe and Allied products. 1 Q4 Fiscal 2018 Highlights 2 3 Margin expansion in the quarter driven by solid execution, favorable pricing and cost containment. Domestic construction markets growth of 4% driven by non-residential and residential end markets. 4 Growth i

  5. Slide 5: Fiscal 2018 Financial Results

    Fiscal 2018 Financial Results FY2018 Guidance Actual Strong second half performance drove sales above high end of guidance range and full year improvement in Adjusted EBITDA Key Metric Low High FY 2018 Net Sales (in Millions) $1,275 $1,325 $1,330 Adj. EBITDA (in Millions) $195 $210 $210 Adj. EBITDA

  6. Slide 6: Fiscal 2018 Market Conversion Commentary

    Fiscal 2018 Market Conversion Commentary Domestic End Market Results FY2018 Non-Residential sales continued to outpace the market, driven by HP, N-12 and Allied product sales. Residential sales markedly outpaced the housing market, driven by both Pipe and Allied product sales. Infrastructure sales o

  7. Slide 7: Fiscal 2018 Financial Performance

    Fiscal 2018 Financial Performance +40 bps (USD, in millions) Adjusted EBITDA +5.8% Domestic Markets + Construction +8% + Non-Residential +8% + Residential +11% + Infrastructure +4% − Agriculture - 7% + Pipe +6% + Allied +7% By Geography + Domestic +7% + International +1% By Application + Pipe +5% +

  8. Slide 8: 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 $210 $193 $17 Working Capital(2) $(25) $(26) $1 Cash Tax $(25) $(14) $(11) Cash Interest $(18) $(17) $(1) Restatement related costs $(4) $(30) $26 Other $(1) $(2) $1 Cash flow from oper

  9. Slide 9: 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 $220 - $240 Up 5% to 14% Adj. EBITDA Margin 15.8% 16.0% - 16.8% +20 to +100 basis points Fiscal 2019 Expectations

  10. Slide 10: FY2019 Market Outlook Comments

    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

  11. Slide 11: Q&A Session

    Q&A Session

  12. Slide 12: Closing Remarks

    Strong out performance of domestic construction markets in fiscal 2018. 1 Closing Remarks 2 4 Focused on execution and fundamentals as well as driving SPP initiatives to continue improving profitability. Steady demand in core domestic construction markets expected to continue in fiscal 2019. 3 Posit

  13. Slide 13: Appendix

    Appendix

  14. Slide 14: Q4 Fiscal 2018 Financial Performance

    Q4 Fiscal 2018 Financial Performance Q4 results driven by favorable pipe pricing and sales of allied products in the domestic construction markets. Margin expansion driven by solid execution, pricing and cost containment. +570 bps (USD, in millions) Adjusted EBITDA +2.4% Domestic Markets + Construct

  15. Slide 15: 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 Fiscal Year Ended March 31, March 31

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