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Mar 31, 2021
ADS Q4 2021 Earnings Report
ADS's financial performance improved significantly due to sales growth and strategic initiatives.
Key Takeaways
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.
ADS
ADS
ADS Revenue by Segment
Revenue by Segment
Pipe Revenue
CapyFin.comInfiltrator Revenue
CapyFin.comInternational Pipe Revenue
CapyFin.comInternational Allied Products & Other Revenue
CapyFin.comAllied Products & Other Revenue
CapyFin.com 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.
Positive Outlook
- 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
Challenges Ahead
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income