NYSE$WMS

Advanced Drainage Systems Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

ADS's financial performance was strong, marked by significant sales growth and strategic investments.

Advanced Drainage Systems reported a strong first quarter with net sales increasing by 31.6% to $669.3 million. The company experienced growth across its product portfolio and geographic footprint. Inflationary pressures on materials, transportation, and labor were more significant than anticipated, but the company is implementing pricing strategies and productivity improvements to offset these costs.

  • Net sales increased by 31.6% to $669.3 million.
  • Net income increased by 9.1% to $77.1 million.
  • Adjusted EBITDA increased by 4.5% to $166.6 million.
  • Free cash flow was $78.8 million.

Headline financials

Total Revenue

$669M

Previous: $509M+31.6%
EPS (adj)

$0.87

Previous: $0.83+4.8%
Adjusted EBITDA

$167M

Previous: $160M+4.5%
Capital Expenditures

-$25.5M

Previous: -$10.3M-148.1%
Free Cash Flow

$50.4M

Previous: $60.2M-16.2%
Net Income

$76M

Previous: $70.5M+7.8%
Operating Income

$109M

Previous: $107M+2.0%
Gross Profit

$201M

Previous: $189M+6.7%
Cash & Equivalents

$143M

Previous: $235M-39.3%
Total Assets

$2.47B

Previous: $2.42B+2.5%
Stock-Based Comp

$20.8M

Previous: $12.5M+67.0%

Revenue & EPS history

ADS · Revenue · Quarterly

$669M

Q1 2022+31.6%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

ADS · $669M total across 5 segments · Q1 2022

  • Domestic Pipe
    $372M+36.9%
  • Domestic Allied Products
    $127M+8.7%
  • Wastewater
    $108M+28.1%
  • International
    $47.9M+77.8%
  • International - Allied Products & Other
    $14.5M+63.6%

Forward guidance

The company raised its net sales targets for fiscal year 2022. Net sales are now expected to be in the range of $2.5 billion to $2.6 billion. Adjusted EBITDA is unchanged and expected to be in the range of $635 to $665 million. Capital expenditures are expected to be in the range of $130 million to $150 million.

Tailwinds

  • Net sales are expected to be in the range of $2.5 billion to $2.6 billion.
  • Adjusted EBITDA is expected to be in the range of $635 million to $665 million.
  • Capital expenditures are expected to be in the range of $130 million to $150 million.
  • Demand remains favorable.
  • Backlog of existing orders remains strong.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+3.7%

Avg return

Earnings day

+4.4%

Avg return

5 days after

+4.3%

Avg return

30 days after

71%

34 / 48 earnings

Positive

+18.1%

Q4 2018

Best reaction

-26.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+1.4%+1.0%+7.7%
Q3 2026+6.1%+9.2%-8.8%
Q2 2026+8.9%+9.7%+10.5%
Q1 2026+17.3%+20.1%+30.3%
Q4 2025-3.4%-2.7%-7.1%
Q3 2025+1.4%+9.5%-1.0%
Q2 2025-14.6%-16.3%-18.3%
Q4 2024-1.2%+1.7%-3.0%
Q3 2024+17.4%+14.4%+17.1%
Q2 2024+4.1%+3.5%+16.0%
Q1 2025+4.2%+7.2%+4.2%
Q4 2023+8.9%+8.3%+24.6%
Q3 2023-10.9%-8.4%-13.8%
Q2 2023-26.7%-25.0%-16.0%
Q1 2023+16.0%+16.0%+10.8%
Q4 2022+5.7%+7.6%-17.6%
Q3 2022+5.7%+1.9%+5.2%
Q2 2022+10.6%+18.4%+11.9%
Q1 2022-5.2%-4.2%-4.6%
Q4 2021+5.9%+8.8%-3.3%
Q3 2021+16.5%+15.0%+19.4%
Q2 2021-5.1%-7.8%+11.5%
Q1 2021+11.2%+11.5%+11.2%
Q4 2020+7.1%+6.1%+17.6%
Q3 2020+6.6%+7.6%+4.2%
Q2 2020+0.0%+1.4%+1.6%
Q1 2020+1.8%+1.7%-4.7%
Q4 2019+9.2%+6.5%+13.7%
Q3 2019-5.9%-3.7%-6.2%
Q2 2019-3.7%-8.4%-11.0%
Q1 2019+7.8%+10.8%+14.0%
Q4 2018+18.1%+15.0%+11.6%
Q3 2018+11.9%+21.7%+21.5%
Q2 2018+10.1%+11.1%+21.4%
Q1 2018+0.3%+13.1%-0.8%
Q4 2017-4.4%-8.3%-7.4%
Q3 2017+1.2%-2.5%-9.8%
Q2 2017+5.1%+1.1%+7.5%
Q1 2017-6.0%-2.5%-18.4%
Q2 2016+9.5%+7.9%+11.1%
Q4 2016+9.5%+7.9%+11.1%
Q1 2016+0.4%-1.6%+11.2%
Q3 2016+3.8%+5.6%+10.7%
Q4 2015+9.4%
Q3 2014-1.5%
Q3 2015-0.0%
Q2 2015+10.8%
Q1 2015+3.2%
Q4 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013

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