Advanced Drainage Systems (WMS) Misses Q4 EPS by 5c, Beats on Revenues; Offers FY19 Revenue Mid-Point Outlook Above Consensus

Advanced Drainage Systems (NYSE: WMS) reported Q4 EPS of ($0.11), $0.05 worse than the analyst estimate of ($0.06). Revenue for the quarter came in at $250.1 million versus the consensus estimate of $249.44 million.

Fourth Quarter Fiscal 2018 Highlights

• Net sales increased 2.4% to $250.1 million
• Net income increased 73.1% to $4.9 million
• Adjusted EBITDA (Non-GAAP) increased 114.8% to $27.0 million

Scott Barbour, President and Chief Executive Officer of ADS commented, “We had a strong finish to fiscal 2018, achieving our financial goals for the year through disciplined execution of our fundamentals, successfully converting traditional materials to our plastic pipe products and driving our water management solutions with allied products.”

Barbour continued, “From a top line perspective, sales in our core domestic construction markets grew 500 basis points above the market. We focused on improving profitability through sharper operating execution and achieving better returns on our capital – two critical areas of focus since I came on board last September. I am happy to report that we have made significant strides towards these goals, which was key to achieving our profitability targets for the year. With fiscal 2018 now behind us, I am excited heading into the new year and look forward to additional growth and further progress towards achieving sustained profitability and improved performance through disciplined execution.”

Fiscal Year 2019 Outlook

Based on current visibility, backlog of existing orders and business trends, the Company has provided its net sales and Adjusted EBITDA targets for fiscal 2019. Net sales are expected to be in the range of $1.375 billion to $1.425 billion and Adjusted EBITDA to be in the range of $220 to $240 million. Capital expenditures are expected to be approximately $60 to $70 million.

GUIDANCE:

Advanced Drainage Systems sees FY 2019 revenue of $1.375-1.425 billion, versus the consensus of $1.38 billion.

For earnings history and earnings-related data on Advanced Drainage Systems (WMS) click here.

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