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Jun 30, 2022
ADS Q1 2023 Earnings Report
ADS reported first quarter fiscal year 2023 results with revenue growth driven by favorable pricing and strong volume.
Key Takeaways
ADS reported strong Q1 Fiscal 2023 results, with revenue increasing by 36.6% to $914 million and adjusted EBITDA increasing by 80% to $299 million. The company benefited from favorable pricing, strong volume in Allied Products and Infiltrator, and forward demand strength in the US and Canada.
Revenue increased by 36.6% due to favorable pricing and strong volume.
Adjusted EBITDA increased by 80% driven by favorable pricing and volume mix.
Demand remains strong throughout US and Canada.
Jet Polymer and Cultec integration activities are on plan.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company provided updated fiscal year 2023 guidance with net sales expected to be in the range of $3.25 billion to $3.35 billion and adjusted EBITDA in the range of $900 million to $940 million.
Positive Outlook
- Net Sales (in Millions) $2,769 to $3,250 - $3,350 Up 17% to 21%
- Adj. EBITDA (in Millions) $676 to $900 - $940 Up 33% to 39%
- Adj. EBITDA Margin 24.4% to 27.7% - 28.1% +330 to +370 basis points
- Net sales are expected to increase.
- Adjusted EBITDA is expected to increase.
Challenges Ahead
- Raw material costs remain elevated.
- Agriculture end market impacted by wet Spring.
- Fluctuations in the price and availability of resins and other raw materials.
- The risks related to the COVID-19 pandemic or other pandemics in the future.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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