NYSE$WMS
Advanced Drainage Systems Inc. · Q4 2021 earnings
Q4 2021 earnings · · Investor relations
Briefing
ADS's financial performance improved significantly due to sales growth and strategic initiatives.
Advanced Drainage Systems reported a strong fourth quarter and fiscal year 2021, marked by a 19.7% increase in net sales to $443.8 million and a 488.1% increase in net income to $20.8 million. The company's adjusted EBITDA also increased by 31.1% to $94.5 million. The growth was driven by strong demand in residential and agriculture end markets, as well as horizontal construction in the non-residential market.
- Net sales increased by 19.7% to $443.8 million.
- Net income increased by 488.1% to $20.8 million.
- Adjusted EBITDA increased by 31.1% to $94.5 million.
- The company achieved record profitability due to strong sales growth, favorable pricing, and operational productivity initiatives.
Headline financials
Revenue & EPS history
ADS · Revenue · Quarterly
$444M
Revenue by segment
ADS · $444M total across 5 segments · Q4 2021
- Domestic Pipe$238M+17.8%53.6%
- Domestic Allied Products$97.9M+11.5%22.1%
- Wastewater$76.5M+31.7%17.2%
- International$22.5M+37.2%5.1%
- International - Allied Products & Other$9.16M+38.2%2.1%
Forward guidance
For fiscal year 2022, net sales are expected to be in the range of $2.220 billion to $2.300 billion and Adjusted EBITDA is 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
- Order book continues to be favorable on a year-over-year basis.
- Project tracking continues to be favorable on a year-over-year basis.
- Book-to-bill ratio continues to be favorable on a year-over-year basis.
- Backlog continues to be favorable on a year-over-year basis.
- Optimistic about improving forward looking market indicators
Headwinds
- Building inflationary cost pressure on materials
- Building inflationary cost pressure on labor
- Building inflationary cost pressure on transportation
- Offsetting building inflationary cost pressure on materials by disciplined execution
- Offsetting building inflationary cost pressure on materials by achieving favorable pricing and operational improvements, as well as disciplined capital spending
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 Q4 2021
+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
| Quarter | Report date | Reaction (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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