Advanced Drainage Systems (WMS) Tops Q3 EPS by 15c, Revenues Beat; Offers FY21 Revenue Guidance Above Consensus

February 4, 2021 6:43 AM EST

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Advanced Drainage Systems (NYSE: WMS) reported Q3 EPS of $0.62, $0.15 better than the analyst estimate of $0.47. Revenue for the quarter came in at $486.1 million versus the consensus estimate of $407.9 million.

Third Quarter Fiscal 2021 Results

  • Net sales increased 23.6% to $486.1 million
  • Net income increased 128.4% to $54.0 million
  • Adjusted EBITDA (Non-GAAP) increased 52.1% to $138.9 million

Scott Barbour, President and Chief Executive Officer of ADS commented, “We delivered a record third quarter in fiscal 2021. Sales grew 24% year-over-year, driven by 17% non-residential sales growth and 36% residential sales growth as we continued to execute on our material conversion strategy in the favorable demand environment. We experienced strong demand in key growth states in the South and Southeast regions of the United States, as well as the return of demand in the Western and Northeast regions of the United States. In addition, sales in the agriculture market increased 33%, driven by the programs we put in place around organizational changes, new product introductions and improving execution in the strong fall selling season. Overall, we executed well this quarter to meet the growing demand for our products and solutions and continue to benefit from our national presence as well as our favorable geographic and end market exposure.”

Barbour continued, “We also achieved record profitability in the third quarter. Our Adjusted EBITDA margin expanded 540-basis points this quarter, our first full quarter of comparable results from the Infiltrator business. In addition to capturing the benefits of leverage from our strong sales growth, both companies successfully offset inflationary costs through favorable pricing, operational productivity initiatives and our synergy programs.”

Barbour concluded, “As we move toward the end of our fiscal year, we are optimistic about our business outlook as our order book, project tracking, book-to-bill ratio and backlog continue to be favorable on a year-over-year basis. We are well positioned to capitalize on growing residential development and horizontal construction, while continuing to generate above-market growth through the execution of our material conversion and water management solutions strategies. We remain focused on disciplined execution as we build on our strong year-to-date results.”


Advanced Drainage Systems sees FY2021 revenue of $1.915-1.95 billion, versus the consensus of $1.82 billion.

ADS continues to carefully monitor the pandemic and the impact on its business. Based on current visibility, backlog of existing orders and business trends, the Company increased its net sales and Adjusted EBITDA targets for fiscal 2021. Net sales are expected to be in the range of $1.915 billion to $1.950 billion and Adjusted EBITDA is expected to be in the range of $550 to $565 million. Capital expenditures are expected to be in the range of $80 million to $90 million.

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

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