Advanced Drainage Systems, Inc. (WMS) Bundle
A Brief History of Advanced Drainage Systems, Inc.
Company Overview
Advanced Drainage Systems, Inc. (ADS) is a leading manufacturer of water management products and solutions in the United States. Founded in 1966, ADS specializes in the design and production of high-density polyethylene (HDPE) drainage pipe and related products. The company is publicly traded on the New York Stock Exchange (NYSE) under the ticker symbol "WMS."
Recent Financial Performance
As of September 30, 2024, ADS reported consolidated net sales of $782.6 million for the three months ended, reflecting a slight increase of 0.3% compared to $780.2 million in the same period of 2023. The year-to-date net sales for the six months ended September 30, 2024, amounted to $1.6 billion, up 2.5% from $1.56 billion in the previous year.
| Financial Metrics | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $782.6 million | $780.2 million | $1,597.9 million | $1,558.3 million |
| Net Income | $131.2 million | $137.0 million | $293.5 million | $310.9 million |
| Net Income per Diluted Share | $1.67 | $1.71 | $3.73 | $3.89 |
| Adjusted EBITDA | $245.6 million | $246.3 million | $521.0 million | $527.6 million |
Segment Performance
For the three months ended September 30, 2024, the company’s performance by reportable segment was as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Pipe | $410.5 million | $415.7 million | ($5.2 million) | (1.3%) |
| Infiltrator | $128.5 million | $116.2 million | $12.3 million | 10.6% |
| International | $56.6 million | $66.1 million | ($9.6 million) | (14.5%) |
| Allied Products & Other | $187.1 million | $182.2 million | $4.9 million | 2.7% |
Cost and Profitability Analysis
The overall gross profit for the three months ended September 30, 2024, was $293.9 million, a decrease of $8.7 million from $302.7 million in the prior year. The gross profit margin decreased to 37.6% compared to 38.8% in the prior year. The cost of goods sold was reported at $488.7 million, up from $477.5 million in the previous year.
Operating Expenses
Selling, general, and administrative expenses increased by $2.4 million to $94.1 million for the three months ended September 30, 2024, maintaining a ratio of approximately 12.0% of net sales, slightly up from 11.8% in the prior year.
Capital Expenditures
For the six months ended September 30, 2024, ADS incurred capital expenditures of $112.2 million, compared to $82.6 million in the same period of 2023. The increase reflects investments in facility expansions, equipment replacements, and technology improvements.
Balance Sheet Highlights
As of September 30, 2024, ADS reported total assets of $3.54 billion, an increase from $3.27 billion at the end of the previous fiscal year. The company's total liabilities amounted to $2.04 billion, with a debt-to-equity ratio of approximately 0.8, indicating a solid capital structure.
| Balance Sheet Metrics | September 30, 2024 | March 31, 2024 |
|---|---|---|
| Total Assets | $3.54 billion | $3.27 billion |
| Total Liabilities | $2.04 billion | $1.99 billion |
| Cash | $613.0 million | $490.2 million |
| Net Debt | $769.7 million | $769.4 million |
Stockholder Equity
As of September 30, 2024, the total stockholders' equity was approximately $1.49 billion, reflecting the company's continued growth and profitability. The company also announced a common stock dividend of $0.32 per share during the second quarter of fiscal 2025.
A Who Owns Advanced Drainage Systems, Inc. (WMS)
Ownership Structure
As of 2024, Advanced Drainage Systems, Inc. (WMS) has a diverse ownership structure primarily consisting of institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
| Shareholder Type | Percentage of Shares Owned | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 70.2% | 58,600,000 |
| Mutual Funds | 15.4% | 12,600,000 |
| Individual Shareholders | 14.4% | 11,800,000 |
Top Institutional Shareholders
The following table outlines the top institutional shareholders of Advanced Drainage Systems, Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 9,500,000 | 11.4% |
| BlackRock, Inc. | 8,700,000 | 10.5% |
| State Street Corporation | 7,200,000 | 8.7% |
| Wellington Management Group LLP | 5,100,000 | 6.2% |
| T. Rowe Price Associates, Inc. | 4,900,000 | 5.9% |
Recent Stock Performance
As of the end of September 2024, the stock price of Advanced Drainage Systems, Inc. (WMS) was approximately $165.56 per share, reflecting a strong performance in the market. The company reported a market capitalization of about $13.6 billion.
Financial Overview
For the fiscal year ending September 30, 2024, the company disclosed the following financial metrics:
| Financial Metric | Value |
|---|---|
| Net Sales | $1,597.9 million |
| Net Income | $293.5 million |
| Adjusted EBITDA | $521.0 million |
| Gross Profit | $626.4 million |
| Operating Expenses | $188.2 million |
Dividends and Share Repurchases
In 2024, Advanced Drainage Systems, Inc. declared a dividend of $0.32 per share, totaling approximately $24.9 million in dividend payments. The company also repurchased shares worth $69.9 million during the same period.
Key Financial Ratios
The following financial ratios were reported for the fiscal year ending September 30, 2024:
| Financial Ratio | Value |
|---|---|
| Current Ratio | 1.5 |
| Debt to Equity Ratio | 0.8 |
| Return on Equity (ROE) | 21.3% |
| Net Profit Margin | 18.4% |
Conclusion on Ownership Dynamics
Advanced Drainage Systems, Inc. continues to maintain a solid ownership base, with significant institutional support that underpins its market performance and strategic initiatives.
Advanced Drainage Systems, Inc. (WMS) Mission Statement
Current Mission Statement
As of 2024, Advanced Drainage Systems, Inc. (WMS) is committed to providing innovative drainage solutions that enhance the safety and sustainability of communities. The company emphasizes its dedication to quality, customer satisfaction, and environmental stewardship in its mission statement.
Financial Overview
In the fiscal year 2025, Advanced Drainage Systems reported a net sales increase of 2.5%, amounting to $1,597.9 million, compared to $1,558.3 million in the previous fiscal year. The breakdown of net sales by segments for the six months ended September 30, 2024, is as follows:
| Segment | Net Sales 2024 (in thousands) | Net Sales 2023 (in thousands) | Variance ($ thousands) | Variance (%) |
|---|---|---|---|---|
| Pipe | $841,913 | $836,526 | $5,387 | 0.6% |
| Infiltrator | $258,710 | $239,086 | $19,624 | 8.2% |
| International | $114,258 | $118,383 | ($4,125) | (3.5%) |
| Allied Products & Other | $383,065 | $364,271 | $18,794 | 5.2% |
| Total Consolidated | $1,597,946 | $1,558,266 | $39,680 | 2.5% |
Net Income and Earnings Per Share
For the six months ended September 30, 2024, the net income attributable to Advanced Drainage Systems was $291.8 million, a 5.6% decrease compared to $309.5 million in the same period of 2023. The net income per diluted share decreased to $3.73, down 4.1% from $3.89.
Operational Metrics
Adjusted EBITDA for the six months ended September 30, 2024, was $521.0 million, a decrease of 1.2% compared to $527.6 million in the previous year. The Adjusted EBITDA margin was 32.6%, compared to 33.9% in the prior year.
Cash Flow Analysis
For the six months ended September 30, 2024, cash provided by operating activities was $350.3 million, while cash used in investing activities amounted to $111.5 million. The cash used in financing activities totaled $114.6 million, which included $69.9 million for share repurchases and $24.9 million in dividends.
Working Capital
As of September 30, 2024, Advanced Drainage Systems reported a working capital of $1,024.6 million, an increase from $860.3 million as of March 31, 2024.
Capital Expenditures
Capital expenditures for the six months ended September 30, 2024, totaled $112.2 million, primarily for facility expansions and equipment replacements. The company anticipates capital expenditures of approximately $250 million for fiscal year 2025.
Revenue Segmentation by Geography
The following table summarizes the net sales to external customers by geographic region for the six months ended September 30, 2024:
| Region | Net Sales 2024 (in thousands) | Net Sales 2023 (in thousands) | Variance ($ thousands) | Variance (%) |
|---|---|---|---|---|
| Domestic | $1,483,688 | $1,424,078 | $59,610 | 4.2% |
| International | $114,258 | $118,383 | ($4,125) | (3.5%) |
| Total | $1,597,946 | $1,558,266 | $39,680 | 2.5% |
Conclusion
Advanced Drainage Systems, Inc. continues to enhance its market position through strategic investments and a commitment to operational excellence, reflecting its mission to provide sustainable solutions in the drainage industry.
How Advanced Drainage Systems, Inc. (WMS) Works
Business Overview
Advanced Drainage Systems, Inc. (WMS), a leading manufacturer of water management solutions, specializes in the production of high-density polyethylene (HDPE) drainage products. The company operates through multiple segments, including Pipe, Infiltrator, International, and Allied Products & Other.
Financial Performance
For the six months ended September 30, 2024, WMS reported:
- Net Sales: $1,597,946,000
- Net Income: $293,496,000
- Earnings Per Share (EPS) - Diluted: $3.73
In comparison, for the same period in 2023:
- Net Sales: $1,558,266,000
- Net Income: $310,932,000
- Earnings Per Share (EPS) - Diluted: $3.89
Segment Performance
The following table summarizes net sales to external customers by reportable segment for the six months ended September 30, 2024 and 2023:
| Segment | 2024 Net Sales ($ thousands) | 2023 Net Sales ($ thousands) | $ Variance ($ thousands) | % Variance |
|---|---|---|---|---|
| Pipe | 841,913 | 836,526 | 5,387 | 0.6% |
| Infiltrator | 258,710 | 239,086 | 19,624 | 8.2% |
| International | 114,258 | 118,383 | (4,125) | (3.5%) |
| Allied Products & Other | 383,065 | 364,271 | 18,794 | 5.2% |
| Total Consolidated | 1,597,946 | 1,558,266 | 39,680 | 2.5% |
Cost Structure
The cost of goods sold (COGS) for the six months ended September 30, 2024, was $971,551,000, representing 60.8% of net sales. In 2023, COGS was $924,129,000, or 59.3% of net sales. The gross profit for the periods was:
- 2024 Gross Profit: $626,395,000 (39.2%)
- 2023 Gross Profit: $634,137,000 (40.7%)
Operating Expenses
Selling, general and administrative expenses for the six months ended September 30, 2024, totaled $188,184,000, which is 11.8% of net sales, up from $178,236,000 (11.4%) in 2023.
Cash Flow Analysis
Cash flows for the six months ended September 30, 2024, were as follows:
- Net Cash Provided by Operating Activities: $350,326,000
- Net Cash Used in Investing Activities: $(111,542,000)
- Net Cash Used in Financing Activities: $(114,640,000)
Capital Expenditures
Capital expenditures for the six months ended September 30, 2024, amounted to $112,182,000, compared to $82,625,000 in 2023. The company anticipates capital expenditures of approximately $250 million for fiscal year 2025.
Liquidity and Financial Position
As of September 30, 2024, WMS had:
- Working Capital: $1,024,600,000
- Total Debt: $1,382,753,000
- Cash: $613,020,000
- Net Debt: $769,733,000
- Leverage Ratio: 0.8
The company reported liquidity of $1,202,600,000, including cash and available borrowings under its revolving credit agreement.
Market Trends and Demand
Demand in the residential and infrastructure end markets has been a significant driver for the company’s performance, particularly for its Infiltrator segment, which saw an increase in sales by 8.2% year-over-year.
Stockholder Equity
As of September 30, 2024, the stockholders’ equity was structured as follows:
| Equity Component | Value ($ thousands) |
|---|---|
| Common Stock | 83,359 |
| Paid-In Capital | 1,255,794 |
| Treasury Stock | (1,219,438) |
| Accumulated Other Comprehensive Loss | (30,689) |
| Retained Earnings | 1,394,035 |
| Total Stockholders' Equity | 1,376,457 |
How Advanced Drainage Systems, Inc. (WMS) Makes Money
Revenue Streams
Advanced Drainage Systems, Inc. (WMS) generates revenue primarily through the sale of its products across several segments. The company operates in four main reportable segments: Pipe, Infiltrator, International, and Allied Products & Other.
| Segment | Net Sales (2024, in thousands) | Net Sales (2023, in thousands) | $ Variance | % Variance |
|---|---|---|---|---|
| Pipe | $841,913 | $836,526 | $5,387 | 0.6% |
| Infiltrator | $258,710 | $239,086 | $19,624 | 8.2% |
| International | $114,258 | $118,383 | ($4,125) | (3.5%) |
| Allied Products & Other | $383,065 | $364,271 | $18,794 | 5.2% |
| Total Consolidated | $1,597,946 | $1,558,266 | $39,680 | 2.5% |
Cost of Goods Sold and Gross Profit
The cost of goods sold (COGS) for the six months ended September 30, 2024, was $971,551, resulting in a gross profit of $626,395. This represents a gross margin of 39.2% compared to 40.7% in the same period of 2023.
| Segment | COGS (2024, in thousands) | COGS (2023, in thousands) | $ Variance | % Variance |
|---|---|---|---|---|
| Pipe | $625,768 | $581,077 | $44,691 | 7.7% |
| Infiltrator | $98,746 | $102,181 | ($3,435) | (3.4%) |
| International | $34,168 | $34,894 | ($726) | (2.1%) |
| Allied Products & Other | $217,687 | $209,398 | $8,289 | 4.0% |
| Total Gross Profit | $626,395 | $634,137 | ($7,742) | (1.2%) |
Selling, General and Administrative Expenses
Selling, general, and administrative (SG&A) expenses for the six months ended September 30, 2024, were $188,184, constituting 11.8% of net sales. This is an increase from $178,236 in the previous year.
| Metric | 2024 (in thousands) | 2023 (in thousands) | $ Variance |
|---|---|---|---|
| SG&A Expenses | $188,184 | $178,236 | $9,948 |
| % of Net Sales | 11.8% | 11.4% | 0.4% |
Net Income and Earnings Per Share
For the six months ended September 30, 2024, net income attributable to Advanced Drainage Systems was $291,784, down from $309,454 in 2023. The net income per diluted share was $3.73, a decrease of 4.1% from the previous year.
| Metric | 2024 | 2023 | $ Variance |
|---|---|---|---|
| Net Income (in thousands) | $291,784 | $309,454 | ($17,670) |
| Net Income per Diluted Share | $3.73 | $3.89 | ($0.16) |
Adjusted EBITDA
Adjusted EBITDA for the six months ended September 30, 2024, totaled $521,048, reflecting a decrease of 1.2% from $527,563 in 2023. The Adjusted EBITDA margin was 32.6% compared to 33.9% in the prior year.
| Metric | 2024 (in thousands) | 2023 (in thousands) | $ Variance |
|---|---|---|---|
| Adjusted EBITDA | $521,048 | $527,563 | ($6,515) |
| Adjusted EBITDA Margin | 32.6% | 33.9% | (1.3%) |
Liquidity and Capital Resources
As of September 30, 2024, Advanced Drainage Systems had total liquidity of $1,202.6 million, which includes $613.0 million in cash and $589.6 million available under its Revolving Credit Agreement.
| Metric | Amount (in thousands) |
|---|---|
| Total Debt | $1,382,753 |
| Cash | $613,020 |
| Net Debt | $769,733 |
| Leverage Ratio | 0.8 |
Capital Expenditures
Capital expenditures for the six months ended September 30, 2024, were $112,182, an increase from $82,625 in the previous year, reflecting the company's investments in facility expansions and technology improvements.
| Period | Capital Expenditures (in thousands) |
|---|---|
| 2024 | $112,182 |
| 2023 | $82,625 |
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Resources:
- Advanced Drainage Systems, Inc. (WMS) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of Advanced Drainage Systems, Inc. (WMS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Advanced Drainage Systems, Inc. (WMS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.