HILLIARD, Ohio–(BUSINESS WIRE)–Advanced Drainage Systems, Inc. (NYSE: WMS) (\u201cADS\u201d or the \u201cCompany\u201d), a leading provider of innovative water management solutions in the stormwater and onsite septic wastewater industries today announced financial results for the fiscal second quarter ended September 30, 2022.\n<\/p>\n
<\/a><\/p>\n \nSecond Quarter Fiscal 2023 Results<\/span>\n<\/p>\n Net sales increased 25.2% to $884.2 million<\/p>\n Net income increased 101.0% to $153.4 million<\/p>\n Adjusted EBITDA (Non-GAAP) increased 59.7% to $263.2 million<\/p>\n \nYear-to-Date Fiscal 2023 Results<\/span>\n<\/p>\n Net sales increased 30.7% to $1,798.4 million<\/p>\n Net income increased 122.8% to $341.9 million<\/p>\n Adjusted EBITDA (Non-GAAP) increased 69.7% to $562.2 million<\/p>\n Cash provided by operating activities increased 360.6% to $437.0 million<\/p>\n Free cash flow (Non-GAAP) increased $330.4 million to $361.5 million<\/p>\n \nScott Barbour, President and Chief Executive Officer of ADS commented, “We achieved record second quarter revenue and Adjusted EBITDA this quarter. Sales growth of 25% was driven by favorable pricing at both ADS and Infiltrator, strong volume growth in Allied Products, and growth in the residential and agriculture end markets. In addition, we continued to make progress bringing down elevated levels of backlog, and lead times have improved in most geographies and product lines. The favorable top line growth we achieved in the second quarter was broad based across our construction and agriculture end markets, with notable strength in our priority states.”\n<\/p>\n \nBarbour continued, “As we entered September and into October, we began to see the impact of the uncertain macroeconomic environment in isolated pockets across certain geographies and product lines. In particular, our Infiltrator and retail businesses began to feel the impact of channel destocking as well as some project slowdowns within our non-residential business in certain geographies. However, demand remains strong for residential land development and horizontal construction, particularly for warehouses and distribution centers. And while inflationary pressures have been persistent throughout the year, we are beginning to see some abatement, which when combined with our productivity initiatives position us well moving into the second half of Fiscal 2023.\u201d\n<\/p>\n \nBarbour concluded, “Taking this into account, we are lowering our fiscal year guidance for revenue to our original Fiscal 2023 guidance of $3.100 billion to $3.200 billion. While uncertainty remains around general economic conditions, our leading indicators including project identification, quoting, book-to-bill and order trends give us confidence we can achieve the updated revenue guidance issued today. Importantly, our Adjusted EBITDA guidance remains unchanged as we execute on actions to improve cost and efficiency within the business.”\n<\/p>\n \nSecond Quarter Fiscal 2023 Results<\/span>\n<\/p>\n \nNet sales increased $177.7 million, or 25.2%, to $884.2 million, as compared to $706.5 million in the prior year quarter. Domestic pipe sales increased $116.5 million, or 30.3%, to $501.0 million. Domestic allied products & other sales increased $56.5 million, or 38.8%, to $202.2 million. Infiltrator sales increased $4.8 million, or 3.3%, to $150.7 million. These increases were driven by double-digit sales growth in the U.S. construction and agriculture end markets. International sales increased $9.9 million, or 15.6%, to $73.5 million, driven by growth in the Canadian, Mexican and Exports businesses.\n<\/p>\n \nGross profit increased $119.9 million, or 59.9%, to $320.0 million as compared to $200.1 million in the prior year. The increase in gross profit is primarily due to the increase in sales volume and favorable pricing on pipe, onsite septic and allied products. This increase was partially offset by inflationary pressures on manufacturing and transportation costs.\n<\/p>\n \nAdjusted EBITDA (Non-GAAP) increased $98.4 million, or 59.7%, to $263.2 million, as compared to $164.8 million in the prior year. The increase is primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 29.8% as compared to 23.3% in the prior year.\n<\/p>\n \nReconciliations of GAAP to Non-GAAP financial measures for Adjusted EBITDA and Free Cash Flow have been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading \u201cNon-GAAP Financial Measures.\u201d\n<\/p>\n \nYear-to-Date Fiscal 2023 Results<\/span>\n<\/p>\n \nNet sales increased $422.6 million, or 30.7%, to $1,798.4 million, as compared to $1,375.8 million in the prior year quarter. Domestic pipe sales increased $267.3 million, or 35.2%, to $1,025.8 million. Domestic allied products & other sales increased $128.4 million, or 47.1%, to $401.1 million. Infiltrator sales increased $44.4 million, or 16.3%, to $317.0 million. These increases were driven by double-digit sales growth in the U.S. construction end markets. International sales increased $16.0 million, or 12.4%, to $145.0 million, driven by strong sales growth in the Mexican and Exports businesses.\n<\/p>\n \nGross profit increased $270.9 million, or 67.5%, to $672.1 million as compared to $401.2 million in the prior year. The increase in gross profit is primarily due to the favorable pricing on pipe, onsite septic and allied products. This was partially offset by inflationary pressures of higher material and transportation costs along with higher manufacturing costs.\n<\/p>\n \nAdjusted EBITDA (Non-GAAP) increased $230.9 million, or 69.7%, to $562.2 million, as compared to $331.4 million in the prior year. The increase is primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 31.3% as compared to 24.1% in the prior year.\n<\/p>\n \nBalance Sheet and Liquidity<\/span>\n<\/p>\n \nNet cash provided by operating activities was $437.0 million, as compared to $94.9 million in the prior year. Free cash flow (Non-GAAP) was $361.5 million, as compared to $31.1 million in the prior year. Net debt (total debt and finance lease obligations net of cash) was $853.9 million as of September 30, 2022, a decrease of $70.6 million from March 31, 2022.\n<\/p>\n \nOn June 9, 2022 the Company issued $500.0 million aggregate principal amount of 6.375% Senior Notes due 2030. Some of the proceeds of this issuance were used to repay the outstanding borrowings under its senior secured revolving credit facility.\n<\/p>\n \nADS had total liquidity of $1,045.7 million, comprised of cash of $457.4 million as of September 30, 2022 and $588.4 million of availability under committed credit facilities. As of September 30, 2022, the Company\u2019s trailing-twelve-month leverage ratio was 1.0 times Adjusted EBITDA.\n<\/p>\n \nIn the six months ended September 30, 2022, the Company repurchased 1.9 million shares of its common stock for a total cost of $195.2 million. As of September 30, 2022, approximately $804.8 million of common stock may be repurchased under the authorization.\n<\/p>\n \nFiscal 2023 Outlook<\/span>\n<\/p>\n \nBased on current visibility, backlog of existing orders and business trends, the Company updated its financial targets for fiscal 2023. Net sales are now expected to be in the range of $3.100 billion to $3.200 billion. Adjusted EBITDA is unchanged and expected to be in the range of $900 to $940 million. Capital expenditures are expected to be approximately $175 million.\n<\/p>\n \nConference Call Information<\/span>\n<\/p>\n \nWebcast: Interested investors and other parties can listen to a webcast of the live conference call by logging in through the Investor Relations section of the Company’s website at https:\/\/investors.ads-pipe.com\/events-and-presentations<\/a>. An online replay will be available on the same website following the call.\n<\/p>\n \nTeleconference: To participate in the live teleconference, participants may register at https:\/\/www.netroadshow.com\/events\/login?show=22275fee&confId=43001<\/a>. After registering, participants will receive a confirmation through email, including dial in details and unique conference call codes for entry. Registration is open through the live call. To ensure participants are connected for the full call, please register at least 10 minutes before the start of the call.\n<\/p>\n \nAbout the Company<\/span>\n<\/p>\n \nAdvanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite septic wastewater solutions that manages the world\u2019s most precious resource: water. ADS provides superior drainage solutions for use in a wide variety of markets and applications including commercial, residential, infrastructure and agriculture. ADS delivers tremendous service to its customers with the industry\u2019s largest company-owned fleet, an expansive sales team, and a vast manufacturing network of approximately 70 manufacturing plants and 37 distribution centers. ADS is the largest plastic recycling company in North America, ensuring over half a billion pounds of plastic is kept out of landfills every year. Founded in 1966, ADS\u2019 water management solutions are designed to last for decades. To learn more, visit the Company\u2019s website at www.adspipe.com<\/a>.\n<\/p>\n \nForward Looking Statements<\/span>\n<\/p>\n \nCertain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company\u2019s current expectations, estimates and projections regarding the Company\u2019s business, operations and other factors relating thereto. Words such as \u201cmay,\u201d \u201cwill,\u201d \u201ccould,\u201d \u201cwould,\u201d \u201cshould,\u201d \u201canticipate,\u201d \u201cpredict,\u201d \u201cpotential,\u201d \u201ccontinue,\u201d \u201cexpects,\u201d \u201cintends,\u201d \u201cplans,\u201d \u201cprojects,\u201d \u201cbelieves,\u201d \u201cestimates,\u201d \u201cconfident\u201d and similar expressions are used to identify these forward-looking statements. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: fluctuations in the price and availability of resins and other raw materials and our ability to pass any increased costs of raw materials on to our customers in a timely manner; the risks related to the COVID-19 pandemic or other pandemics in the future; disruption or volatility in general business and economic conditions in the markets in which we operate; cyclicality and seasonality of the non-residential and residential construction markets and infrastructure spending; the risks of increasing competition in our existing and future markets; uncertainties surrounding the integration and realization of anticipated benefits of; the effect of weather or seasonality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our operations through joint ventures; our ability to expand into new geographic or product markets; the risk associated with manufacturing processes; the effect of global climate change; cybersecurity risks; our ability to manage our supply purchasing and customer credit policies; our ability to control labor costs and to attract, train and retain highly-qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; and other risks and uncertainties described in the Company\u2019s filings with the SEC. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company\u2019s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company\u2019s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.\n<\/p>\n \nFinancial Statements<\/span>\n<\/p>\n \nADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES\n<\/p>\n \nCONSOLIDATED STATEMENTS OF INCOME\n<\/p>\n \n(unaudited)\n<\/p>\n \u00a0<\/p>\n \n\u00a0\n<\/p>\n \nThree Months Ended \n\u00a0\n<\/p>\n \nSix Months Ended \n(In thousands, except per share data)\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n \n\u00a0\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n \nNet sales\n<\/p>\n \n$\n<\/p>\n \n884,209\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n706,471\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n1,798,395\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n1,375,771\n<\/p>\n \n\u00a0\n<\/p>\n \nCost of goods sold\n<\/p>\n \n\u00a0\n<\/p>\n \n564,246\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n506,414\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,126,325\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n974,593\n<\/p>\n \n\u00a0\n<\/p>\n \nGross profit\n<\/p>\n \n\u00a0\n<\/p>\n \n319,963\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n200,057\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n672,070\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n401,178\n<\/p>\n \n\u00a0\n<\/p>\n \nOperating expenses:\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nSelling, general and administrative\n<\/p>\n \n\u00a0\n<\/p>\n \n88,639\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n73,951\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n175,159\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n150,172\n<\/p>\n \n\u00a0\n<\/p>\n \n(Gain) loss on disposal of assets and costs from exit and disposal activities\n<\/p>\n \n\u00a0\n<\/p>\n \n(102\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(901\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n201\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(912\n<\/p>\n \n)\n<\/p>\n \nIntangible amortization\n<\/p>\n \n\u00a0\n<\/p>\n \n13,841\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n15,446\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n27,518\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n31,091\n<\/p>\n \n\u00a0\n<\/p>\n \nIncome from operations\n<\/p>\n \n\u00a0\n<\/p>\n \n217,585\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n111,561\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n469,192\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n220,827\n<\/p>\n \n\u00a0\n<\/p>\n \nOther expense:\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nInterest expense\n<\/p>\n \n\u00a0\n<\/p>\n \n18,261\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n8,437\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n29,333\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n16,344\n<\/p>\n \n\u00a0\n<\/p>\n \nDerivative losses (gains) and other expense (income), net\n<\/p>\n \n\u00a0\n<\/p>\n \n395\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n202\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(1,507\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(1,812\n<\/p>\n \n)\n<\/p>\n \nIncome before income taxes\n<\/p>\n \n\u00a0\n<\/p>\n \n198,929\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n102,922\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n441,366\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n206,295\n<\/p>\n \n\u00a0\n<\/p>\n \nIncome tax expense\n<\/p>\n \n\u00a0\n<\/p>\n \n47,508\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n26,816\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n102,573\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n53,271\n<\/p>\n \n\u00a0\n<\/p>\n \nEquity in net income of unconsolidated affiliates\n<\/p>\n \n\u00a0\n<\/p>\n \n(1,956\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(206\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(3,066\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(411\n<\/p>\n \n)\n<\/p>\n \nNet income\n<\/p>\n \n\u00a0\n<\/p>\n \n153,377\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n76,312\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n341,859\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n153,435\n<\/p>\n \n\u00a0\n<\/p>\n \nLess: net income attributable to noncontrolling interest\n<\/p>\n \n\u00a0\n<\/p>\n \n1,370\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n953\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2,706\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2,089\n<\/p>\n \n\u00a0\n<\/p>\n \nNet income attributable to ADS\n<\/p>\n \n\u00a0\n<\/p>\n \n152,007\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n75,359\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n339,153\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n151,346\n<\/p>\n \n\u00a0\n<\/p>\n \nDividends to participating securities\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(1,636\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(3,276\n<\/p>\n \n)\n<\/p>\n \nNet income available to common stockholders and participating securities\n<\/p>\n \n\u00a0\n<\/p>\n \n152,007\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n73,723\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n339,153\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n148,070\n<\/p>\n \n\u00a0\n<\/p>\n \nUndistributed income allocated to participating securities\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(10,494\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(21,430\n<\/p>\n \n)\n<\/p>\n \nNet income available to common stockholders\n<\/p>\n \n$\n<\/p>\n \n152,007\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n63,229\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n339,153\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n126,640\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nWeighted average common shares outstanding:\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nBasic\n<\/p>\n \n\u00a0\n<\/p>\n \n83,466\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n70,464\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n83,306\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n70,993\n<\/p>\n \n\u00a0\n<\/p>\n \nDiluted\n<\/p>\n \n\u00a0\n<\/p>\n \n84,498\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n71,924\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n84,485\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n72,614\n<\/p>\n \n\u00a0\n<\/p>\n \nNet income per share:\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nBasic\n<\/p>\n \n$\n<\/p>\n \n1.82\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n0.90\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n4.07\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n1.78\n<\/p>\n \n\u00a0\n<\/p>\n \nDiluted\n<\/p>\n \n$\n<\/p>\n \n1.80\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n0.88\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n4.01\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n1.74\n<\/p>\n \n\u00a0\n<\/p>\n \nCash dividends declared per share\n<\/p>\n \n$\n<\/p>\n \n0.12\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n0.11\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n0.24\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n0.22\n<\/p>\n \n\u00a0\n<\/p>\n \nADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES\n<\/p>\n \nCONSOLIDATED BALANCE SHEETS\n<\/p>\n \n(unaudited)\n<\/p>\n \u00a0<\/p>\n \n\u00a0\n<\/p>\n \nAs of\n<\/p>\n \n(Amounts in thousands)\n<\/p>\n \nSeptember 30, 2022\n<\/p>\n \n\u00a0\n<\/p>\n \nMarch 31, 2022\n<\/p>\n \nASSETS\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nCurrent assets:\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nCash\n<\/p>\n \n$\n<\/p>\n \n457,357\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n20,125\n<\/p>\n \n\u00a0\n<\/p>\n \nReceivables, net\n<\/p>\n \n\u00a0\n<\/p>\n \n387,952\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n341,753\n<\/p>\n \n\u00a0\n<\/p>\n \nInventories\n<\/p>\n \n\u00a0\n<\/p>\n \n479,171\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n494,324\n<\/p>\n \n\u00a0\n<\/p>\n \nOther current assets\n<\/p>\n \n\u00a0\n<\/p>\n \n23,400\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n15,696\n<\/p>\n \n\u00a0\n<\/p>\n \nTotal current assets\n<\/p>\n \n\u00a0\n<\/p>\n \n1,347,880\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n871,898\n<\/p>\n \n\u00a0\n<\/p>\n \nProperty, plant and equipment, net\n<\/p>\n \n\u00a0\n<\/p>\n \n653,432\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n619,383\n<\/p>\n \n\u00a0\n<\/p>\n \nOther assets:\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nGoodwill\n<\/p>\n \n\u00a0\n<\/p>\n \n619,487\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n610,293\n<\/p>\n \n\u00a0\n<\/p>\n \nIntangible assets, net\n<\/p>\n \n\u00a0\n<\/p>\n \n435,281\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n431,385\n<\/p>\n \n\u00a0\n<\/p>\n \nOther assets\n<\/p>\n \n\u00a0\n<\/p>\n \n121,519\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n116,799\n<\/p>\n \n\u00a0\n<\/p>\n \nTotal assets\n<\/p>\n \n$\n<\/p>\n \n3,177,599\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n2,649,758\n<\/p>\n \n\u00a0\n<\/p>\n \nLIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS\u2019 EQUITY\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nCurrent liabilities:\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nCurrent maturities of debt obligations\n<\/p>\n \n$\n<\/p>\n \n16,765\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n19,451\n<\/p>\n \n\u00a0\n<\/p>\n \nCurrent maturities of finance lease obligations\n<\/p>\n \n\u00a0\n<\/p>\n \n5,358\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n5,089\n<\/p>\n \n\u00a0\n<\/p>\n \nAccounts payable\n<\/p>\n \n\u00a0\n<\/p>\n \n236,603\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n224,986\n<\/p>\n \n\u00a0\n<\/p>\n \nOther accrued liabilities\n<\/p>\n \n\u00a0\n<\/p>\n \n169,774\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n134,877\n<\/p>\n \n\u00a0\n<\/p>\n \nAccrued income taxes\n<\/p>\n \n\u00a0\n<\/p>\n \n10,800\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n6,838\n<\/p>\n \n\u00a0\n<\/p>\n \nTotal current liabilities\n<\/p>\n \n\u00a0\n<\/p>\n \n439,300\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n391,241\n<\/p>\n \n\u00a0\n<\/p>\n \nLong-term debt obligations, net\n<\/p>\n \n\u00a0\n<\/p>\n \n1,275,211\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n908,705\n<\/p>\n \n\u00a0\n<\/p>\n \nLong-term finance lease obligations\n<\/p>\n \n\u00a0\n<\/p>\n \n13,893\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n11,393\n<\/p>\n \n\u00a0\n<\/p>\n \nDeferred tax liabilities\n<\/p>\n \n\u00a0\n<\/p>\n \n164,945\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n168,435\n<\/p>\n \n\u00a0\n<\/p>\n \nOther liabilities\n<\/p>\n \n\u00a0\n<\/p>\n \n68,580\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n64,939\n<\/p>\n \n\u00a0\n<\/p>\n \nTotal liabilities\n<\/p>\n \n\u00a0\n<\/p>\n \n1,961,929\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,544,713\n<\/p>\n \n\u00a0\n<\/p>\n \nMezzanine equity:\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nRedeemable common stock\n<\/p>\n \n\u00a0\n<\/p>\n \n159,928\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \nRedeemable convertible preferred stock\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n195,384\n<\/p>\n \n\u00a0\n<\/p>\n \nTotal mezzanine equity\n<\/p>\n \n\u00a0\n<\/p>\n \n159,928\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n195,384\n<\/p>\n \n\u00a0\n<\/p>\n \nStockholders\u2019 equity:\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nCommon stock\n<\/p>\n \n\u00a0\n<\/p>\n \n11,642\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n11,612\n<\/p>\n \n\u00a0\n<\/p>\n \nPaid-in capital\n<\/p>\n \n\u00a0\n<\/p>\n \n1,119,453\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,065,628\n<\/p>\n \n\u00a0\n<\/p>\n \nCommon stock in treasury, at cost\n<\/p>\n \n\u00a0\n<\/p>\n \n(536,697\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(318,691\n<\/p>\n \n)\n<\/p>\n \nAccumulated other comprehensive loss\n<\/p>\n \n\u00a0\n<\/p>\n \n(33,775\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(24,386\n<\/p>\n \n)\n<\/p>\n \nRetained earnings\n<\/p>\n \n\u00a0\n<\/p>\n \n477,790\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n158,876\n<\/p>\n \n\u00a0\n<\/p>\n \nTotal ADS stockholders\u2019 equity\n<\/p>\n \n\u00a0\n<\/p>\n \n1,038,413\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n893,039\n<\/p>\n \n\u00a0\n<\/p>\n \nNoncontrolling interest in subsidiaries\n<\/p>\n \n\u00a0\n<\/p>\n \n17,329\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n16,622\n<\/p>\n \n\u00a0\n<\/p>\n \nTotal stockholders\u2019 equity\n<\/p>\n \n\u00a0\n<\/p>\n \n1,055,742\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n909,661\n<\/p>\n \n\u00a0\n<\/p>\n \nTotal liabilities, mezzanine equity and stockholders\u2019 equity\n<\/p>\n \n$\n<\/p>\n \n3,177,599\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n2,649,758\n<\/p>\n \n\u00a0\n<\/p>\n \nADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES\n<\/p>\n \nCONSOLIDATED STATEMENTS OF CASH FLOWS\n<\/p>\n \n(unaudited)\n<\/p>\n \u00a0<\/p>\n \n\u00a0\n<\/p>\n \nSix Months Ended September 30,\n<\/p>\n \n(Amounts in thousands)\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n \nCash Flow from Operating Activities\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nNet income\n<\/p>\n \n$\n<\/p>\n \n341,859\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n153,435\n<\/p>\n \n\u00a0\n<\/p>\n \nAdjustments to reconcile net income to net cash provided by operating activities:\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nDepreciation and amortization\n<\/p>\n \n\u00a0\n<\/p>\n \n71,500\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n68,850\n<\/p>\n \n\u00a0\n<\/p>\n \nDeferred income taxes\n<\/p>\n \n\u00a0\n<\/p>\n \n(3,117\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n15\n<\/p>\n \n\u00a0\n<\/p>\n \n(Gain) loss on disposal of assets and costs from exit and disposal activities\n<\/p>\n \n\u00a0\n<\/p>\n \n201\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(912\n<\/p>\n \n)\n<\/p>\n \nESOP and stock-based compensation\n<\/p>\n \n\u00a0\n<\/p>\n \n13,733\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n38,437\n<\/p>\n \n\u00a0\n<\/p>\n \nAmortization of deferred financing charges\n<\/p>\n \n\u00a0\n<\/p>\n \n398\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n191\n<\/p>\n \n\u00a0\n<\/p>\n \nFair market value adjustments to derivatives\n<\/p>\n \n\u00a0\n<\/p>\n \n2,183\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(446\n<\/p>\n \n)\n<\/p>\n \nEquity in net income of unconsolidated affiliates\n<\/p>\n \n\u00a0\n<\/p>\n \n(3,066\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(411\n<\/p>\n \n)\n<\/p>\n \nOther operating activities\n<\/p>\n \n\u00a0\n<\/p>\n \n(713\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n441\n<\/p>\n \n\u00a0\n<\/p>\n \nChanges in working capital:\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nReceivables\n<\/p>\n \n\u00a0\n<\/p>\n \n(43,680\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(138,063\n<\/p>\n \n)\n<\/p>\n \nInventories\n<\/p>\n \n\u00a0\n<\/p>\n \n15,799\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(124,429\n<\/p>\n \n)\n<\/p>\n \nPrepaid expenses and other current assets\n<\/p>\n \n\u00a0\n<\/p>\n \n(7,776\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(6,738\n<\/p>\n \n)\n<\/p>\n \nAccounts payable, accrued expenses, and other liabilities\n<\/p>\n \n\u00a0\n<\/p>\n \n49,703\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n104,508\n<\/p>\n \n\u00a0\n<\/p>\n \nNet cash provided by operating activities\n<\/p>\n \n\u00a0\n<\/p>\n \n437,024\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n94,878\n<\/p>\n \n\u00a0\n<\/p>\n \nCash Flows from Investing Activities\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nCapital expenditures\n<\/p>\n \n\u00a0\n<\/p>\n \n(75,545\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(63,764\n<\/p>\n \n)\n<\/p>\n \nAcquisition, net of cash acquired\n<\/p>\n \n\u00a0\n<\/p>\n \n(48,010\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \nOther investing activities\n<\/p>\n \n\u00a0\n<\/p>\n \n46\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,556\n<\/p>\n \n\u00a0\n<\/p>\n \nNet cash used in investing activities\n<\/p>\n \n\u00a0\n<\/p>\n \n(123,509\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(62,208\n<\/p>\n \n)\n<\/p>\n \nCash Flows from Financing Activities\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nPayments on syndicated Term Loan Facility\n<\/p>\n \n\u00a0\n<\/p>\n \n(3,500\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(3,500\n<\/p>\n \n)\n<\/p>\n \nProceeds from Revolving Credit Agreement\n<\/p>\n \n\u00a0\n<\/p>\n \n26,200\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n146,800\n<\/p>\n \n\u00a0\n<\/p>\n \nPayments on Revolving Credit Agreement\n<\/p>\n \n\u00a0\n<\/p>\n \n(140,500\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(24,200\n<\/p>\n \n)\n<\/p>\n \nProceeds from Amended Revolving Credit Agreement\n<\/p>\n \n\u00a0\n<\/p>\n \n97,000\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \nPayments on Amended Revolving Credit Agreement\n<\/p>\n \n\u00a0\n<\/p>\n \n(97,000\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \nProceeds from Senior Notes due 2030\n<\/p>\n \n\u00a0\n<\/p>\n \n500,000\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \nDebt issuance costs\n<\/p>\n \n\u00a0\n<\/p>\n \n(11,575\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \nPayments on Equipment Financing\n<\/p>\n \n\u00a0\n<\/p>\n \n(7,104\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \nPayments on finance lease obligations\n<\/p>\n \n\u00a0\n<\/p>\n \n(3,153\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(10,437\n<\/p>\n \n)\n<\/p>\n \nRepurchase of common stock\n<\/p>\n \n\u00a0\n<\/p>\n \n(192,602\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(292,000\n<\/p>\n \n)\n<\/p>\n \nCash dividends paid\n<\/p>\n \n\u00a0\n<\/p>\n \n(20,367\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(18,758\n<\/p>\n \n)\n<\/p>\n \nDividends paid to noncontrolling interest holder\n<\/p>\n \n\u00a0\n<\/p>\n \n(1,727\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(1,471\n<\/p>\n \n)\n<\/p>\n \nProceeds from exercise of stock options\n<\/p>\n \n\u00a0\n<\/p>\n \n4,660\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n3,179\n<\/p>\n \n\u00a0\n<\/p>\n \nPayment of withholding taxes on vesting of restricted stock units\n<\/p>\n \n\u00a0\n<\/p>\n \n(25,512\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(12,976\n<\/p>\n \n)\n<\/p>\n \nOther financing activities\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(230\n<\/p>\n \n)\n<\/p>\n \nNet cash provided by (used in) financing activities\n<\/p>\n \n\u00a0\n<\/p>\n \n124,820\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(213,593\n<\/p>\n \n)\n<\/p>\n \nEffect of exchange rate changes on cash\n<\/p>\n \n\u00a0\n<\/p>\n \n(1,103\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(81\n<\/p>\n \n)\n<\/p>\n \nNet change in cash\n<\/p>\n \n\u00a0\n<\/p>\n \n437,232\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(181,004\n<\/p>\n \n)\n<\/p>\n \nCash at beginning of period\n<\/p>\n \n\u00a0\n<\/p>\n \n20,125\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n195,009\n<\/p>\n \n\u00a0\n<\/p>\n \nCash at end of period\n<\/p>\n \n$\n<\/p>\n \n457,357\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n14,005\n<\/p>\n \n\u00a0\n<\/p>\n \nSelected Financial Data\n<\/p>\n \nThe following tables set forth net sales by reportable segment for each of the periods indicated.\n<\/p>\n \n\u00a0\n<\/p>\n \nThree Months Ended\n<\/p>\n \n\u00a0\n<\/p>\n \nSeptember 30, 2022\n<\/p>\n \n\u00a0\n<\/p>\n \nSeptember 30, 2021\n<\/p>\n \n(In thousands)\n<\/p>\n \nNet Sales\n<\/p>\n \n\u00a0\n<\/p>\n \nIntersegment \n\u00a0\n<\/p>\n \nNet Sales \n\u00a0\n<\/p>\n \nNet Sales\n<\/p>\n \n\u00a0\n<\/p>\n \nIntersegment \n\u00a0\n<\/p>\n \nNet Sales \nPipe\n<\/p>\n \n$\n<\/p>\n \n500,978\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n(10,770\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n490,208\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n384,521\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n(2,668\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n381,853\n<\/p>\n \nInfiltrator\n<\/p>\n \n\u00a0\n<\/p>\n \n150,735\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(22,450\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n128,285\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n145,911\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(22,412\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n123,499\n<\/p>\n \nInternational\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nInternational – Pipe\n<\/p>\n \n\u00a0\n<\/p>\n \n56,461\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(7,339\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n49,122\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n50,141\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(5,170\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n44,971\n<\/p>\n \nInternational – Allied Products & Other\n<\/p>\n \n\u00a0\n<\/p>\n \n17,002\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n17,002\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n13,433\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n13,433\n<\/p>\n \nTotal International\n<\/p>\n \n\u00a0\n<\/p>\n \n73,463\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(7,339\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n66,124\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n63,574\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(5,170\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n58,404\n<\/p>\n \nAllied Products & Other\n<\/p>\n \n\u00a0\n<\/p>\n \n202,200\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(2,608\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n199,592\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n145,719\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(3,004\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n142,715\n<\/p>\n \nIntersegment Eliminations\n<\/p>\n \n\u00a0\n<\/p>\n \n(43,167\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n43,167\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(33,254\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n33,254\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \nTotal Consolidated\n<\/p>\n \n$\n<\/p>\n \n884,209\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n884,209\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n706,471\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n706,471\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nSix Months Ended\n<\/p>\n \n\u00a0\n<\/p>\n \nSeptember 30, 2022\n<\/p>\n \n\u00a0\n<\/p>\n \nSeptember 30, 2021\n<\/p>\n \n\u00a0\n<\/p>\n \nNet Sales\n<\/p>\n \n\u00a0\n<\/p>\n \nIntersegment \n\u00a0\n<\/p>\n \nNet Sales \n\u00a0\n<\/p>\n \nNet Sales\n<\/p>\n \n\u00a0\n<\/p>\n \nIntersegment \n\u00a0\n<\/p>\n \nNet Sales \nPipe\n<\/p>\n \n$\n<\/p>\n \n1,025,835\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n(20,644\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n1,005,191\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n758,531\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n(4,571\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n753,960\n<\/p>\n \nInfiltrator\n<\/p>\n \n\u00a0\n<\/p>\n \n317,025\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(51,356\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n265,669\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n272,653\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(41,449\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n231,204\n<\/p>\n \nInternational\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \nInternational – Pipe\n<\/p>\n \n\u00a0\n<\/p>\n \n109,880\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(13,198\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n96,682\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n100,979\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(8,084\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n92,895\n<\/p>\n \nInternational – Allied Products & Other\n<\/p>\n \n\u00a0\n<\/p>\n \n35,097\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n35,097\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n27,961\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n27,961\n<\/p>\n \nTotal International\n<\/p>\n \n\u00a0\n<\/p>\n \n144,977\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(13,198\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n131,779\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n128,940\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(8,084\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n120,856\n<\/p>\n \nAllied Products & Other\n<\/p>\n \n\u00a0\n<\/p>\n \n401,109\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(5,353\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n395,756\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n272,755\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(3,004\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n269,751\n<\/p>\n \nIntersegment Eliminations\n<\/p>\n \n\u00a0\n<\/p>\n \n(90,551\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n90,551\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(57,108\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n57,108\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \nTotal Consolidated\n<\/p>\n \n$\n<\/p>\n \n1,798,395\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n1,798,395\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n1,375,771\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n1,375,771\n<\/p>\n \nNon-GAAP Financial Measures\n<\/p>\n \nThis press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (\u201cGAAP\u201d). ADS management uses non-GAAP measures in its analysis of the Company\u2019s performance. Investors are encouraged to review the reconciliation of non-GAAP financial measures to the comparable GAAP results available in the accompanying tables.\n<\/p>\n \nReconciliation of Non-GAAP Financial Measures\n<\/p>\n \nThis press release includes references to organic results, Adjusted EBITDA and Free Cash Flow, non-GAAP financial measures. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. These measures are not intended to be substitutes for those reported in accordance with GAAP. Adjusted EBITDA and Free Cash Flow may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures.\n<\/p>\n \nEBITDA and Adjusted EBITDA are non-GAAP financial measures that comprise net income before interest, income taxes, depreciation and amortization, stock-based compensation, non-cash charges and certain other expenses. The Company\u2019s definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Adjusted EBITDA is a key metric used by management and the Company\u2019s board of directors to assess financial performance and evaluate the effectiveness of the Company\u2019s business strategies. Accordingly, management believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as the Company\u2019s management and board of directors. In order to provide investors with a meaningful reconciliation, the Company has provided below reconciliations of Adjusted EBITDA to net income.\n<\/p>\n \nFree Cash Flow is a non-GAAP financial measure that comprises cash flow from operating activities less capital expenditures. Free Cash Flow is a measure used by management and the Company\u2019s board of directors to assess the Company\u2019s ability to generate cash. Accordingly, management believes that Free Cash Flow provides useful information to investors and others in understanding and evaluating our ability to generate cash flow from operations after capital expenditures. In order to provide investors with a meaningful reconciliation, the Company has provided below a reconciliation of cash flow from operating activities to Free Cash Flow.\n<\/p>\n \nThe following tables present a reconciliation of EBITDA and Adjusted EBITDA to Net Income and Free Cash Flow to Cash Flow from Operating Activities, the most comparable GAAP measures, for each of the periods indicated.\n<\/p>\n \nReconciliation of Adjusted EBITDA to Net Income\n<\/p>\n \n\u00a0\n<\/p>\n \nThree Months Ended \n\u00a0\n<\/p>\n \nSix Months Ended \n(Amounts in thousands)\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n \n\u00a0\n<\/p>\n \n2022\n<\/p>\n \n\u00a0\n<\/p>\n \n2021\n<\/p>\n \nNet income\n<\/p>\n \n$\n<\/p>\n \n153,377\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n76,312\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n341,859\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n153,435\n<\/p>\n \n\u00a0\n<\/p>\n \nDepreciation and amortization\n<\/p>\n \n\u00a0\n<\/p>\n \n35,922\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n34,194\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n71,500\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n68,850\n<\/p>\n \n\u00a0\n<\/p>\n \nInterest expense\n<\/p>\n \n\u00a0\n<\/p>\n \n18,261\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n8,437\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n29,333\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n16,344\n<\/p>\n \n\u00a0\n<\/p>\n \nIncome tax expense\n<\/p>\n \n\u00a0\n<\/p>\n \n47,508\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n26,816\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n102,573\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n53,271\n<\/p>\n \n\u00a0\n<\/p>\n \nEBITDA\n<\/p>\n \n\u00a0\n<\/p>\n \n255,068\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n145,759\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n545,265\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n291,900\n<\/p>\n \n\u00a0\n<\/p>\n \n(Gain) loss on disposal of assets and costs from exit and disposal activities\n<\/p>\n \n\u00a0\n<\/p>\n \n(102\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(901\n<\/p>\n \n)\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n201\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n(912\n<\/p>\n \n)\n<\/p>\n \nStock-based compensation expense\n<\/p>\n \n\u00a0\n<\/p>\n \n7,460\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n5,618\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n13,733\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n12,269\n<\/p>\n \n\u00a0\n<\/p>\n \nESOP compensation expense\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n12,013\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u2014\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n26,168\n<\/p>\n \n\u00a0\n<\/p>\n \nTransaction costs\n<\/p>\n \n\u00a0\n<\/p>\n \n368\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n834\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n2,083\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n877\n<\/p>\n \n\u00a0\n<\/p>\n \nOther adjustments(a)<\/p>\n \n\u00a0\n<\/p>\n \n408\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,481\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n963\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n1,084\n<\/p>\n \n\u00a0\n<\/p>\n \nAdjusted EBITDA\n<\/p>\n \n$\n<\/p>\n \n263,202\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n164,804\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n562,245\n<\/p>\n \n\u00a0\n<\/p>\n \n$\n<\/p>\n \n331,386\n<\/p>\n \n\u00a0\n<\/p>\n Contacts <\/p>\n \nMichael Higgins
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September 30,\n<\/p>\n
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September 30,\n<\/p>\n
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Net Sales\n<\/p>\n
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from External
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Customers\n<\/p>\n
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Net Sales\n<\/p>\n
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Customers\n<\/p>\n
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Net Sales\n<\/p>\n
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Customers\n<\/p>\n
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Customers\n<\/p>\n
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September 30,\n<\/p>\n
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September 30,\n<\/p>\n
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VP, Corporate Strategy & Investor Relations
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(614) 658-0050
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Michael.Higgins@adspipe.com<\/a>\n<\/p>\n
![<\/a><\/p>\n\nSecond Quarter Fiscal 2023 Results<\/span>\n<\/p>\nNet sales increased 25.2% to $884.2 million<\/p>\nNet income increased 101.0% to $153.4 million<\/p>\nAdjusted EBITDA (Non-GAAP) increased 59.7% to $263.2 million<\/p>\n\nYear-to-Date Fiscal 2023 Results<\/span>\n<\/p>\nNet sales increased 30.7% to $1,798.4 million<\/p>\nNet income increased 122.8% to $341.9 million<\/p>\nAdjusted EBITDA (Non-GAAP) increased 69.7% to $562.2 million<\/p>\nCash provided by operating activities increased 360.6% to $437.0 million<\/p>\nFree cash flow (Non-GAAP) increased $330.4 million to $361.5 million<\/p>\n\nScott Barbour, President and Chief Executive Officer of ADS commented, “We achieved record second quarter revenue and Adjusted EBITDA this quarter. Sales growth of 25% was driven by favorable pricing at both ADS and Infiltrator, strong volume growth in Allied Products, and growth in the residential and agriculture end markets. In addition, we continued to make progress bringing down elevated levels of backlog, and lead times have improved in most geographies and product lines. The favorable top line growth we achieved in the second quarter was broad based across our construction and agriculture end markets, with notable strength in our priority states.”\n<\/p>\n\nBarbour continued, “As we entered September and into October, we began to see the impact of the uncertain macroeconomic environment in isolated pockets across certain geographies and product lines. In particular, our Infiltrator and retail businesses began to feel the impact of channel destocking as well as some project slowdowns within our non-residential business in certain geographies. However, demand remains strong for residential land development and horizontal construction, particularly for warehouses and distribution centers. And while inflationary pressures have been persistent throughout the year, we are beginning to see some abatement, which when combined with our productivity initiatives position us well moving into the second half of Fiscal 2023.\u201d\n<\/p>\n\nBarbour concluded, “Taking this into account, we are lowering our fiscal year guidance for revenue to our original Fiscal 2023 guidance of $3.100 billion to $3.200 billion. While uncertainty remains around general economic conditions, our leading indicators including project identification, quoting, book-to-bill and order trends give us confidence we can achieve the updated revenue guidance issued today. Importantly, our Adjusted EBITDA guidance remains unchanged as we execute on actions to improve cost and efficiency within the business.”\n<\/p>\n\nSecond Quarter Fiscal 2023 Results<\/span>\n<\/p>\n\nNet sales increased $177.7 million, or 25.2%, to $884.2 million, as compared to $706.5 million in the prior year quarter. Domestic pipe sales increased $116.5 million, or 30.3%, to $501.0 million. Domestic allied products & other sales increased $56.5 million, or 38.8%, to $202.2 million. Infiltrator sales increased $4.8 million, or 3.3%, to $150.7 million. These increases were driven by double-digit sales growth in the U.S. construction and agriculture end markets. International sales increased $9.9 million, or 15.6%, to $73.5 million, driven by growth in the Canadian, Mexican and Exports businesses.\n<\/p>\n\nGross profit increased $119.9 million, or 59.9%, to $320.0 million as compared to $200.1 million in the prior year. The increase in gross profit is primarily due to the increase in sales volume and favorable pricing on pipe, onsite septic and allied products. This increase was partially offset by inflationary pressures on manufacturing and transportation costs.\n<\/p>\n\nAdjusted EBITDA (Non-GAAP) increased $98.4 million, or 59.7%, to $263.2 million, as compared to $164.8 million in the prior year. The increase is primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 29.8% as compared to 23.3% in the prior year.\n<\/p>\n\nReconciliations of GAAP to Non-GAAP financial measures for Adjusted EBITDA and Free Cash Flow have been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading \u201cNon-GAAP Financial Measures.\u201d\n<\/p>\n\nYear-to-Date Fiscal 2023 Results<\/span>\n<\/p>\n\nNet sales increased $422.6 million, or 30.7%, to $1,798.4 million, as compared to $1,375.8 million in the prior year quarter. Domestic pipe sales increased $267.3 million, or 35.2%, to $1,025.8 million. Domestic allied products & other sales increased $128.4 million, or 47.1%, to $401.1 million. Infiltrator sales increased $44.4 million, or 16.3%, to $317.0 million. These increases were driven by double-digit sales growth in the U.S. construction end markets. International sales increased $16.0 million, or 12.4%, to $145.0 million, driven by strong sales growth in the Mexican and Exports businesses.\n<\/p>\n\nGross profit increased $270.9 million, or 67.5%, to $672.1 million as compared to $401.2 million in the prior year. The increase in gross profit is primarily due to the favorable pricing on pipe, onsite septic and allied products. This was partially offset by inflationary pressures of higher material and transportation costs along with higher manufacturing costs.\n<\/p>\n\nAdjusted EBITDA (Non-GAAP) increased $230.9 million, or 69.7%, to $562.2 million, as compared to $331.4 million in the prior year. The increase is primarily due to the factors mentioned above. As a percentage of net sales, Adjusted EBITDA was 31.3% as compared to 24.1% in the prior year.\n<\/p>\n\nBalance Sheet and Liquidity<\/span>\n<\/p>\n\nNet cash provided by operating activities was $437.0 million, as compared to $94.9 million in the prior year. Free cash flow (Non-GAAP) was $361.5 million, as compared to $31.1 million in the prior year. Net debt (total debt and finance lease obligations net of cash) was $853.9 million as of September 30, 2022, a decrease of $70.6 million from March 31, 2022.\n<\/p>\n\nOn June 9, 2022 the Company issued $500.0 million aggregate principal amount of 6.375% Senior Notes due 2030. Some of the proceeds of this issuance were used to repay the outstanding borrowings under its senior secured revolving credit facility.\n<\/p>\n\nADS had total liquidity of $1,045.7 million, comprised of cash of $457.4 million as of September 30, 2022 and $588.4 million of availability under committed credit facilities. As of September 30, 2022, the Company\u2019s trailing-twelve-month leverage ratio was 1.0 times Adjusted EBITDA.\n<\/p>\n\nIn the six months ended September 30, 2022, the Company repurchased 1.9 million shares of its common stock for a total cost of $195.2 million. As of September 30, 2022, approximately $804.8 million of common stock may be repurchased under the authorization.\n<\/p>\n\nFiscal 2023 Outlook<\/span>\n<\/p>\n\nBased on current visibility, backlog of existing orders and business trends, the Company updated its financial targets for fiscal 2023. Net sales are now expected to be in the range of $3.100 billion to $3.200 billion. Adjusted EBITDA is unchanged and expected to be in the range of $900 to $940 million. Capital expenditures are expected to be approximately $175 million.\n<\/p>\n\nConference Call Information<\/span>\n<\/p>\n\nWebcast: Interested investors and other parties can listen to a webcast of the live conference call by logging in through the Investor Relations section of the Company’s website at https:\/\/investors.ads-pipe.com\/events-and-presentations<\/a>. An online replay will be available on the same website following the call.\n<\/p>\n\nTeleconference: To participate in the live teleconference, participants may register at https:\/\/www.netroadshow.com\/events\/login?show=22275fee&confId=43001<\/a>. After registering, participants will receive a confirmation through email, including dial in details and unique conference call codes for entry. Registration is open through the live call. To ensure participants are connected for the full call, please register at least 10 minutes before the start of the call.\n<\/p>\n\nAbout the Company<\/span>\n<\/p>\n\nAdvanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite septic wastewater solutions that manages the world\u2019s most precious resource: water. ADS provides superior drainage solutions for use in a wide variety of markets and applications including commercial, residential, infrastructure and agriculture. ADS delivers tremendous service to its customers with the industry\u2019s largest company-owned fleet, an expansive sales team, and a vast manufacturing network of approximately 70 manufacturing plants and 37 distribution centers. ADS is the largest plastic recycling company in North America, ensuring over half a billion pounds of plastic is kept out of landfills every year. Founded in 1966, ADS\u2019 water management solutions are designed to last for decades. To learn more, visit the Company\u2019s website at www.adspipe.com<\/a>.\n<\/p>\n\nForward Looking Statements<\/span>\n<\/p>\n\nCertain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company\u2019s current expectations, estimates and projections regarding the Company\u2019s business, operations and other factors relating thereto. Words such as \u201cmay,\u201d \u201cwill,\u201d \u201ccould,\u201d \u201cwould,\u201d \u201cshould,\u201d \u201canticipate,\u201d \u201cpredict,\u201d \u201cpotential,\u201d \u201ccontinue,\u201d \u201cexpects,\u201d \u201cintends,\u201d \u201cplans,\u201d \u201cprojects,\u201d \u201cbelieves,\u201d \u201cestimates,\u201d \u201cconfident\u201d and similar expressions are used to identify these forward-looking statements. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: fluctuations in the price and availability of resins and other raw materials and our ability to pass any increased costs of raw materials on to our customers in a timely manner; the risks related to the COVID-19 pandemic or other pandemics in the future; disruption or volatility in general business and economic conditions in the markets in which we operate; cyclicality and seasonality of the non-residential and residential construction markets and infrastructure spending; the risks of increasing competition in our existing and future markets; uncertainties surrounding the integration and realization of anticipated benefits of; the effect of weather or seasonality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our operations through joint ventures; our ability to expand into new geographic or product markets; the risk associated with manufacturing processes; the effect of global climate change; cybersecurity risks; our ability to manage our supply purchasing and customer credit policies; our ability to control labor costs and to attract, train and retain highly-qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; and other risks and uncertainties described in the Company\u2019s filings with the SEC. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company\u2019s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company\u2019s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.\n<\/p>\n\nFinancial Statements<\/span>\n<\/p>\n\nADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES\n<\/p>\n\nCONSOLIDATED STATEMENTS OF INCOME\n<\/p>\n\n(unaudited)\n<\/p>\n\u00a0<\/p>\n\n\u00a0\n<\/p>\n\nThree Months Ended\nSeptember 30,\n<\/p>\n\n\u00a0\n<\/p>\n\nSix Months Ended\nSeptember 30,\n<\/p>\n\n(In thousands, except per share data)\n<\/p>\n\n2022\n<\/p>\n\n\u00a0\n<\/p>\n\n2021\n<\/p>\n\n\u00a0\n<\/p>\n\n2022\n<\/p>\n\n\u00a0\n<\/p>\n\n2021\n<\/p>\n\nNet sales\n<\/p>\n\n$\n<\/p>\n\n884,209\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n706,471\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n1,798,395\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n1,375,771\n<\/p>\n\n\u00a0\n<\/p>\n\nCost of goods sold\n<\/p>\n\n\u00a0\n<\/p>\n\n564,246\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n506,414\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n1,126,325\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n974,593\n<\/p>\n\n\u00a0\n<\/p>\n\nGross profit\n<\/p>\n\n\u00a0\n<\/p>\n\n319,963\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n200,057\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n672,070\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n401,178\n<\/p>\n\n\u00a0\n<\/p>\n\nOperating expenses:\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nSelling, general and administrative\n<\/p>\n\n\u00a0\n<\/p>\n\n88,639\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n73,951\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n175,159\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n150,172\n<\/p>\n\n\u00a0\n<\/p>\n\n(Gain) loss on disposal of assets and costs from exit and disposal activities\n<\/p>\n\n\u00a0\n<\/p>\n\n(102\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(901\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n201\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(912\n<\/p>\n\n)\n<\/p>\n\nIntangible amortization\n<\/p>\n\n\u00a0\n<\/p>\n\n13,841\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n15,446\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n27,518\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n31,091\n<\/p>\n\n\u00a0\n<\/p>\n\nIncome from operations\n<\/p>\n\n\u00a0\n<\/p>\n\n217,585\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n111,561\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n469,192\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n220,827\n<\/p>\n\n\u00a0\n<\/p>\n\nOther expense:\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nInterest expense\n<\/p>\n\n\u00a0\n<\/p>\n\n18,261\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n8,437\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n29,333\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n16,344\n<\/p>\n\n\u00a0\n<\/p>\n\nDerivative losses (gains) and other expense (income), net\n<\/p>\n\n\u00a0\n<\/p>\n\n395\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n202\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(1,507\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(1,812\n<\/p>\n\n)\n<\/p>\n\nIncome before income taxes\n<\/p>\n\n\u00a0\n<\/p>\n\n198,929\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n102,922\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n441,366\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n206,295\n<\/p>\n\n\u00a0\n<\/p>\n\nIncome tax expense\n<\/p>\n\n\u00a0\n<\/p>\n\n47,508\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n26,816\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n102,573\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n53,271\n<\/p>\n\n\u00a0\n<\/p>\n\nEquity in net income of unconsolidated affiliates\n<\/p>\n\n\u00a0\n<\/p>\n\n(1,956\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(206\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(3,066\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(411\n<\/p>\n\n)\n<\/p>\n\nNet income\n<\/p>\n\n\u00a0\n<\/p>\n\n153,377\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n76,312\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n341,859\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n153,435\n<\/p>\n\n\u00a0\n<\/p>\n\nLess: net income attributable to noncontrolling interest\n<\/p>\n\n\u00a0\n<\/p>\n\n1,370\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n953\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n2,706\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n2,089\n<\/p>\n\n\u00a0\n<\/p>\n\nNet income attributable to ADS\n<\/p>\n\n\u00a0\n<\/p>\n\n152,007\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n75,359\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n339,153\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n151,346\n<\/p>\n\n\u00a0\n<\/p>\n\nDividends to participating securities\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(1,636\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(3,276\n<\/p>\n\n)\n<\/p>\n\nNet income available to common stockholders and participating securities\n<\/p>\n\n\u00a0\n<\/p>\n\n152,007\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n73,723\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n339,153\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n148,070\n<\/p>\n\n\u00a0\n<\/p>\n\nUndistributed income allocated to participating securities\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(10,494\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(21,430\n<\/p>\n\n)\n<\/p>\n\nNet income available to common stockholders\n<\/p>\n\n$\n<\/p>\n\n152,007\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n63,229\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n339,153\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n126,640\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nWeighted average common shares outstanding:\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nBasic\n<\/p>\n\n\u00a0\n<\/p>\n\n83,466\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n70,464\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n83,306\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n70,993\n<\/p>\n\n\u00a0\n<\/p>\n\nDiluted\n<\/p>\n\n\u00a0\n<\/p>\n\n84,498\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n71,924\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n84,485\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n72,614\n<\/p>\n\n\u00a0\n<\/p>\n\nNet income per share:\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nBasic\n<\/p>\n\n$\n<\/p>\n\n1.82\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n0.90\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n4.07\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n1.78\n<\/p>\n\n\u00a0\n<\/p>\n\nDiluted\n<\/p>\n\n$\n<\/p>\n\n1.80\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n0.88\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n4.01\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n1.74\n<\/p>\n\n\u00a0\n<\/p>\n\nCash dividends declared per share\n<\/p>\n\n$\n<\/p>\n\n0.12\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n0.11\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n0.24\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n0.22\n<\/p>\n\n\u00a0\n<\/p>\n\nADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES\n<\/p>\n\nCONSOLIDATED BALANCE SHEETS\n<\/p>\n\n(unaudited)\n<\/p>\n\u00a0<\/p>\n\n\u00a0\n<\/p>\n\nAs of\n<\/p>\n\n(Amounts in thousands)\n<\/p>\n\nSeptember 30, 2022\n<\/p>\n\n\u00a0\n<\/p>\n\nMarch 31, 2022\n<\/p>\n\nASSETS\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nCurrent assets:\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nCash\n<\/p>\n\n$\n<\/p>\n\n457,357\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n20,125\n<\/p>\n\n\u00a0\n<\/p>\n\nReceivables, net\n<\/p>\n\n\u00a0\n<\/p>\n\n387,952\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n341,753\n<\/p>\n\n\u00a0\n<\/p>\n\nInventories\n<\/p>\n\n\u00a0\n<\/p>\n\n479,171\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n494,324\n<\/p>\n\n\u00a0\n<\/p>\n\nOther current assets\n<\/p>\n\n\u00a0\n<\/p>\n\n23,400\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n15,696\n<\/p>\n\n\u00a0\n<\/p>\n\nTotal current assets\n<\/p>\n\n\u00a0\n<\/p>\n\n1,347,880\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n871,898\n<\/p>\n\n\u00a0\n<\/p>\n\nProperty, plant and equipment, net\n<\/p>\n\n\u00a0\n<\/p>\n\n653,432\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n619,383\n<\/p>\n\n\u00a0\n<\/p>\n\nOther assets:\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nGoodwill\n<\/p>\n\n\u00a0\n<\/p>\n\n619,487\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n610,293\n<\/p>\n\n\u00a0\n<\/p>\n\nIntangible assets, net\n<\/p>\n\n\u00a0\n<\/p>\n\n435,281\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n431,385\n<\/p>\n\n\u00a0\n<\/p>\n\nOther assets\n<\/p>\n\n\u00a0\n<\/p>\n\n121,519\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n116,799\n<\/p>\n\n\u00a0\n<\/p>\n\nTotal assets\n<\/p>\n\n$\n<\/p>\n\n3,177,599\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n2,649,758\n<\/p>\n\n\u00a0\n<\/p>\n\nLIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS\u2019 EQUITY\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nCurrent liabilities:\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nCurrent maturities of debt obligations\n<\/p>\n\n$\n<\/p>\n\n16,765\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n19,451\n<\/p>\n\n\u00a0\n<\/p>\n\nCurrent maturities of finance lease obligations\n<\/p>\n\n\u00a0\n<\/p>\n\n5,358\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n5,089\n<\/p>\n\n\u00a0\n<\/p>\n\nAccounts payable\n<\/p>\n\n\u00a0\n<\/p>\n\n236,603\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n224,986\n<\/p>\n\n\u00a0\n<\/p>\n\nOther accrued liabilities\n<\/p>\n\n\u00a0\n<\/p>\n\n169,774\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n134,877\n<\/p>\n\n\u00a0\n<\/p>\n\nAccrued income taxes\n<\/p>\n\n\u00a0\n<\/p>\n\n10,800\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n6,838\n<\/p>\n\n\u00a0\n<\/p>\n\nTotal current liabilities\n<\/p>\n\n\u00a0\n<\/p>\n\n439,300\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n391,241\n<\/p>\n\n\u00a0\n<\/p>\n\nLong-term debt obligations, net\n<\/p>\n\n\u00a0\n<\/p>\n\n1,275,211\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n908,705\n<\/p>\n\n\u00a0\n<\/p>\n\nLong-term finance lease obligations\n<\/p>\n\n\u00a0\n<\/p>\n\n13,893\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n11,393\n<\/p>\n\n\u00a0\n<\/p>\n\nDeferred tax liabilities\n<\/p>\n\n\u00a0\n<\/p>\n\n164,945\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n168,435\n<\/p>\n\n\u00a0\n<\/p>\n\nOther liabilities\n<\/p>\n\n\u00a0\n<\/p>\n\n68,580\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n64,939\n<\/p>\n\n\u00a0\n<\/p>\n\nTotal liabilities\n<\/p>\n\n\u00a0\n<\/p>\n\n1,961,929\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n1,544,713\n<\/p>\n\n\u00a0\n<\/p>\n\nMezzanine equity:\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nRedeemable common stock\n<\/p>\n\n\u00a0\n<\/p>\n\n159,928\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\nRedeemable convertible preferred stock\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n195,384\n<\/p>\n\n\u00a0\n<\/p>\n\nTotal mezzanine equity\n<\/p>\n\n\u00a0\n<\/p>\n\n159,928\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n195,384\n<\/p>\n\n\u00a0\n<\/p>\n\nStockholders\u2019 equity:\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nCommon stock\n<\/p>\n\n\u00a0\n<\/p>\n\n11,642\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n11,612\n<\/p>\n\n\u00a0\n<\/p>\n\nPaid-in capital\n<\/p>\n\n\u00a0\n<\/p>\n\n1,119,453\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n1,065,628\n<\/p>\n\n\u00a0\n<\/p>\n\nCommon stock in treasury, at cost\n<\/p>\n\n\u00a0\n<\/p>\n\n(536,697\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(318,691\n<\/p>\n\n)\n<\/p>\n\nAccumulated other comprehensive loss\n<\/p>\n\n\u00a0\n<\/p>\n\n(33,775\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(24,386\n<\/p>\n\n)\n<\/p>\n\nRetained earnings\n<\/p>\n\n\u00a0\n<\/p>\n\n477,790\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n158,876\n<\/p>\n\n\u00a0\n<\/p>\n\nTotal ADS stockholders\u2019 equity\n<\/p>\n\n\u00a0\n<\/p>\n\n1,038,413\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n893,039\n<\/p>\n\n\u00a0\n<\/p>\n\nNoncontrolling interest in subsidiaries\n<\/p>\n\n\u00a0\n<\/p>\n\n17,329\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n16,622\n<\/p>\n\n\u00a0\n<\/p>\n\nTotal stockholders\u2019 equity\n<\/p>\n\n\u00a0\n<\/p>\n\n1,055,742\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n909,661\n<\/p>\n\n\u00a0\n<\/p>\n\nTotal liabilities, mezzanine equity and stockholders\u2019 equity\n<\/p>\n\n$\n<\/p>\n\n3,177,599\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n2,649,758\n<\/p>\n\n\u00a0\n<\/p>\n\nADVANCED DRAINAGE SYSTEMS, INC. AND SUBSIDIARIES\n<\/p>\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n<\/p>\n\n(unaudited)\n<\/p>\n\u00a0<\/p>\n\n\u00a0\n<\/p>\n\nSix Months Ended September 30,\n<\/p>\n\n(Amounts in thousands)\n<\/p>\n\n2022\n<\/p>\n\n\u00a0\n<\/p>\n\n2021\n<\/p>\n\nCash Flow from Operating Activities\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nNet income\n<\/p>\n\n$\n<\/p>\n\n341,859\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n153,435\n<\/p>\n\n\u00a0\n<\/p>\n\nAdjustments to reconcile net income to net cash provided by operating activities:\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nDepreciation and amortization\n<\/p>\n\n\u00a0\n<\/p>\n\n71,500\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n68,850\n<\/p>\n\n\u00a0\n<\/p>\n\nDeferred income taxes\n<\/p>\n\n\u00a0\n<\/p>\n\n(3,117\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n15\n<\/p>\n\n\u00a0\n<\/p>\n\n(Gain) loss on disposal of assets and costs from exit and disposal activities\n<\/p>\n\n\u00a0\n<\/p>\n\n201\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(912\n<\/p>\n\n)\n<\/p>\n\nESOP and stock-based compensation\n<\/p>\n\n\u00a0\n<\/p>\n\n13,733\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n38,437\n<\/p>\n\n\u00a0\n<\/p>\n\nAmortization of deferred financing charges\n<\/p>\n\n\u00a0\n<\/p>\n\n398\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n191\n<\/p>\n\n\u00a0\n<\/p>\n\nFair market value adjustments to derivatives\n<\/p>\n\n\u00a0\n<\/p>\n\n2,183\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(446\n<\/p>\n\n)\n<\/p>\n\nEquity in net income of unconsolidated affiliates\n<\/p>\n\n\u00a0\n<\/p>\n\n(3,066\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(411\n<\/p>\n\n)\n<\/p>\n\nOther operating activities\n<\/p>\n\n\u00a0\n<\/p>\n\n(713\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n441\n<\/p>\n\n\u00a0\n<\/p>\n\nChanges in working capital:\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nReceivables\n<\/p>\n\n\u00a0\n<\/p>\n\n(43,680\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(138,063\n<\/p>\n\n)\n<\/p>\n\nInventories\n<\/p>\n\n\u00a0\n<\/p>\n\n15,799\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(124,429\n<\/p>\n\n)\n<\/p>\n\nPrepaid expenses and other current assets\n<\/p>\n\n\u00a0\n<\/p>\n\n(7,776\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(6,738\n<\/p>\n\n)\n<\/p>\n\nAccounts payable, accrued expenses, and other liabilities\n<\/p>\n\n\u00a0\n<\/p>\n\n49,703\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n104,508\n<\/p>\n\n\u00a0\n<\/p>\n\nNet cash provided by operating activities\n<\/p>\n\n\u00a0\n<\/p>\n\n437,024\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n94,878\n<\/p>\n\n\u00a0\n<\/p>\n\nCash Flows from Investing Activities\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nCapital expenditures\n<\/p>\n\n\u00a0\n<\/p>\n\n(75,545\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(63,764\n<\/p>\n\n)\n<\/p>\n\nAcquisition, net of cash acquired\n<\/p>\n\n\u00a0\n<\/p>\n\n(48,010\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\nOther investing activities\n<\/p>\n\n\u00a0\n<\/p>\n\n46\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n1,556\n<\/p>\n\n\u00a0\n<\/p>\n\nNet cash used in investing activities\n<\/p>\n\n\u00a0\n<\/p>\n\n(123,509\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(62,208\n<\/p>\n\n)\n<\/p>\n\nCash Flows from Financing Activities\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nPayments on syndicated Term Loan Facility\n<\/p>\n\n\u00a0\n<\/p>\n\n(3,500\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(3,500\n<\/p>\n\n)\n<\/p>\n\nProceeds from Revolving Credit Agreement\n<\/p>\n\n\u00a0\n<\/p>\n\n26,200\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n146,800\n<\/p>\n\n\u00a0\n<\/p>\n\nPayments on Revolving Credit Agreement\n<\/p>\n\n\u00a0\n<\/p>\n\n(140,500\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(24,200\n<\/p>\n\n)\n<\/p>\n\nProceeds from Amended Revolving Credit Agreement\n<\/p>\n\n\u00a0\n<\/p>\n\n97,000\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\nPayments on Amended Revolving Credit Agreement\n<\/p>\n\n\u00a0\n<\/p>\n\n(97,000\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\nProceeds from Senior Notes due 2030\n<\/p>\n\n\u00a0\n<\/p>\n\n500,000\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\nDebt issuance costs\n<\/p>\n\n\u00a0\n<\/p>\n\n(11,575\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\nPayments on Equipment Financing\n<\/p>\n\n\u00a0\n<\/p>\n\n(7,104\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\nPayments on finance lease obligations\n<\/p>\n\n\u00a0\n<\/p>\n\n(3,153\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(10,437\n<\/p>\n\n)\n<\/p>\n\nRepurchase of common stock\n<\/p>\n\n\u00a0\n<\/p>\n\n(192,602\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(292,000\n<\/p>\n\n)\n<\/p>\n\nCash dividends paid\n<\/p>\n\n\u00a0\n<\/p>\n\n(20,367\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(18,758\n<\/p>\n\n)\n<\/p>\n\nDividends paid to noncontrolling interest holder\n<\/p>\n\n\u00a0\n<\/p>\n\n(1,727\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(1,471\n<\/p>\n\n)\n<\/p>\n\nProceeds from exercise of stock options\n<\/p>\n\n\u00a0\n<\/p>\n\n4,660\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n3,179\n<\/p>\n\n\u00a0\n<\/p>\n\nPayment of withholding taxes on vesting of restricted stock units\n<\/p>\n\n\u00a0\n<\/p>\n\n(25,512\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(12,976\n<\/p>\n\n)\n<\/p>\n\nOther financing activities\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(230\n<\/p>\n\n)\n<\/p>\n\nNet cash provided by (used in) financing activities\n<\/p>\n\n\u00a0\n<\/p>\n\n124,820\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(213,593\n<\/p>\n\n)\n<\/p>\n\nEffect of exchange rate changes on cash\n<\/p>\n\n\u00a0\n<\/p>\n\n(1,103\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(81\n<\/p>\n\n)\n<\/p>\n\nNet change in cash\n<\/p>\n\n\u00a0\n<\/p>\n\n437,232\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(181,004\n<\/p>\n\n)\n<\/p>\n\nCash at beginning of period\n<\/p>\n\n\u00a0\n<\/p>\n\n20,125\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n195,009\n<\/p>\n\n\u00a0\n<\/p>\n\nCash at end of period\n<\/p>\n\n$\n<\/p>\n\n457,357\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n14,005\n<\/p>\n\n\u00a0\n<\/p>\n\nSelected Financial Data\n<\/p>\n\nThe following tables set forth net sales by reportable segment for each of the periods indicated.\n<\/p>\n\n\u00a0\n<\/p>\n\nThree Months Ended\n<\/p>\n\n\u00a0\n<\/p>\n\nSeptember 30, 2022\n<\/p>\n\n\u00a0\n<\/p>\n\nSeptember 30, 2021\n<\/p>\n\n(In thousands)\n<\/p>\n\nNet Sales\n<\/p>\n\n\u00a0\n<\/p>\n\nIntersegment\nNet Sales\n<\/p>\n\n\u00a0\n<\/p>\n\nNet Sales\nfrom External\nCustomers\n<\/p>\n\n\u00a0\n<\/p>\n\nNet Sales\n<\/p>\n\n\u00a0\n<\/p>\n\nIntersegment\nNet Sales\n<\/p>\n\n\u00a0\n<\/p>\n\nNet Sales\nfrom External\nCustomers\n<\/p>\n\nPipe\n<\/p>\n\n$\n<\/p>\n\n500,978\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n(10,770\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n490,208\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n384,521\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n(2,668\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n381,853\n<\/p>\n\nInfiltrator\n<\/p>\n\n\u00a0\n<\/p>\n\n150,735\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(22,450\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n128,285\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n145,911\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(22,412\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n123,499\n<\/p>\n\nInternational\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nInternational – Pipe\n<\/p>\n\n\u00a0\n<\/p>\n\n56,461\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(7,339\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n49,122\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n50,141\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(5,170\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n44,971\n<\/p>\n\nInternational – Allied Products & Other\n<\/p>\n\n\u00a0\n<\/p>\n\n17,002\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n17,002\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n13,433\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n13,433\n<\/p>\n\nTotal International\n<\/p>\n\n\u00a0\n<\/p>\n\n73,463\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(7,339\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n66,124\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n63,574\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(5,170\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n58,404\n<\/p>\n\nAllied Products & Other\n<\/p>\n\n\u00a0\n<\/p>\n\n202,200\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(2,608\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n199,592\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n145,719\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(3,004\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n142,715\n<\/p>\n\nIntersegment Eliminations\n<\/p>\n\n\u00a0\n<\/p>\n\n(43,167\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n43,167\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(33,254\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n33,254\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\nTotal Consolidated\n<\/p>\n\n$\n<\/p>\n\n884,209\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n884,209\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n706,471\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n706,471\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nSix Months Ended\n<\/p>\n\n\u00a0\n<\/p>\n\nSeptember 30, 2022\n<\/p>\n\n\u00a0\n<\/p>\n\nSeptember 30, 2021\n<\/p>\n\n\u00a0\n<\/p>\n\nNet Sales\n<\/p>\n\n\u00a0\n<\/p>\n\nIntersegment\nNet Sales\n<\/p>\n\n\u00a0\n<\/p>\n\nNet Sales\nfrom External\nCustomers\n<\/p>\n\n\u00a0\n<\/p>\n\nNet Sales\n<\/p>\n\n\u00a0\n<\/p>\n\nIntersegment\nNet Sales\n<\/p>\n\n\u00a0\n<\/p>\n\nNet Sales\nfrom External\nCustomers\n<\/p>\n\nPipe\n<\/p>\n\n$\n<\/p>\n\n1,025,835\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n(20,644\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n1,005,191\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n758,531\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n(4,571\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n753,960\n<\/p>\n\nInfiltrator\n<\/p>\n\n\u00a0\n<\/p>\n\n317,025\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(51,356\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n265,669\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n272,653\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(41,449\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n231,204\n<\/p>\n\nInternational\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\nInternational – Pipe\n<\/p>\n\n\u00a0\n<\/p>\n\n109,880\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(13,198\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n96,682\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n100,979\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(8,084\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n92,895\n<\/p>\n\nInternational – Allied Products & Other\n<\/p>\n\n\u00a0\n<\/p>\n\n35,097\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n35,097\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n27,961\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n27,961\n<\/p>\n\nTotal International\n<\/p>\n\n\u00a0\n<\/p>\n\n144,977\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(13,198\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n131,779\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n128,940\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(8,084\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n120,856\n<\/p>\n\nAllied Products & Other\n<\/p>\n\n\u00a0\n<\/p>\n\n401,109\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(5,353\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n395,756\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n272,755\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(3,004\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n269,751\n<\/p>\n\nIntersegment Eliminations\n<\/p>\n\n\u00a0\n<\/p>\n\n(90,551\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n90,551\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(57,108\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n57,108\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\nTotal Consolidated\n<\/p>\n\n$\n<\/p>\n\n1,798,395\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n1,798,395\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n1,375,771\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n1,375,771\n<\/p>\n\nNon-GAAP Financial Measures\n<\/p>\n\nThis press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (\u201cGAAP\u201d). ADS management uses non-GAAP measures in its analysis of the Company\u2019s performance. Investors are encouraged to review the reconciliation of non-GAAP financial measures to the comparable GAAP results available in the accompanying tables.\n<\/p>\n\nReconciliation of Non-GAAP Financial Measures\n<\/p>\n\nThis press release includes references to organic results, Adjusted EBITDA and Free Cash Flow, non-GAAP financial measures. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. These measures are not intended to be substitutes for those reported in accordance with GAAP. Adjusted EBITDA and Free Cash Flow may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures.\n<\/p>\n\nEBITDA and Adjusted EBITDA are non-GAAP financial measures that comprise net income before interest, income taxes, depreciation and amortization, stock-based compensation, non-cash charges and certain other expenses. The Company\u2019s definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Adjusted EBITDA is a key metric used by management and the Company\u2019s board of directors to assess financial performance and evaluate the effectiveness of the Company\u2019s business strategies. Accordingly, management believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as the Company\u2019s management and board of directors. In order to provide investors with a meaningful reconciliation, the Company has provided below reconciliations of Adjusted EBITDA to net income.\n<\/p>\n\nFree Cash Flow is a non-GAAP financial measure that comprises cash flow from operating activities less capital expenditures. Free Cash Flow is a measure used by management and the Company\u2019s board of directors to assess the Company\u2019s ability to generate cash. Accordingly, management believes that Free Cash Flow provides useful information to investors and others in understanding and evaluating our ability to generate cash flow from operations after capital expenditures. In order to provide investors with a meaningful reconciliation, the Company has provided below a reconciliation of cash flow from operating activities to Free Cash Flow.\n<\/p>\n\nThe following tables present a reconciliation of EBITDA and Adjusted EBITDA to Net Income and Free Cash Flow to Cash Flow from Operating Activities, the most comparable GAAP measures, for each of the periods indicated.\n<\/p>\n\nReconciliation of Adjusted EBITDA to Net Income\n<\/p>\n\n\u00a0\n<\/p>\n\nThree Months Ended\nSeptember 30,\n<\/p>\n\n\u00a0\n<\/p>\n\nSix Months Ended\nSeptember 30,\n<\/p>\n\n(Amounts in thousands)\n<\/p>\n\n2022\n<\/p>\n\n\u00a0\n<\/p>\n\n2021\n<\/p>\n\n\u00a0\n<\/p>\n\n2022\n<\/p>\n\n\u00a0\n<\/p>\n\n2021\n<\/p>\n\nNet income\n<\/p>\n\n$\n<\/p>\n\n153,377\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n76,312\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n341,859\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n153,435\n<\/p>\n\n\u00a0\n<\/p>\n\nDepreciation and amortization\n<\/p>\n\n\u00a0\n<\/p>\n\n35,922\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n34,194\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n71,500\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n68,850\n<\/p>\n\n\u00a0\n<\/p>\n\nInterest expense\n<\/p>\n\n\u00a0\n<\/p>\n\n18,261\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n8,437\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n29,333\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n16,344\n<\/p>\n\n\u00a0\n<\/p>\n\nIncome tax expense\n<\/p>\n\n\u00a0\n<\/p>\n\n47,508\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n26,816\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n102,573\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n53,271\n<\/p>\n\n\u00a0\n<\/p>\n\nEBITDA\n<\/p>\n\n\u00a0\n<\/p>\n\n255,068\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n145,759\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n545,265\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n291,900\n<\/p>\n\n\u00a0\n<\/p>\n\n(Gain) loss on disposal of assets and costs from exit and disposal activities\n<\/p>\n\n\u00a0\n<\/p>\n\n(102\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(901\n<\/p>\n\n)\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n201\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n(912\n<\/p>\n\n)\n<\/p>\n\nStock-based compensation expense\n<\/p>\n\n\u00a0\n<\/p>\n\n7,460\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n5,618\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n13,733\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n12,269\n<\/p>\n\n\u00a0\n<\/p>\n\nESOP compensation expense\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n12,013\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u2014\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n26,168\n<\/p>\n\n\u00a0\n<\/p>\n\nTransaction costs\n<\/p>\n\n\u00a0\n<\/p>\n\n368\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n834\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n2,083\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n877\n<\/p>\n\n\u00a0\n<\/p>\n\nOther adjustments(a)<\/p>\n\n\u00a0\n<\/p>\n\n408\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n1,481\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n963\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n1,084\n<\/p>\n\n\u00a0\n<\/p>\n\nAdjusted EBITDA\n<\/p>\n\n$\n<\/p>\n\n263,202\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n164,804\n<\/p>\n\n\u00a0\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n562,245\n<\/p>\n\n\u00a0\n<\/p>\n\n$\n<\/p>\n\n331,386\n<\/p>\n\n\u00a0\n<\/p>\nContacts <\/p>\n\nMichael Higgins\nVP, Corporate Strategy & Investor Relations\n(614) 658-0050\nMichael.Higgins@adspipe.com<\/a>\n<\/p>\n Read full story here <\/a><\/p>","protected":false},"excerpt":{"rendered":"HILLIARD, Ohio–(BUSINESS WIRE)–Advanced Drainage Systems, Inc. (NYSE: WMS) (\u201cADS\u201d or the \u201cCompany\u201d), a leading provider of innovative water management solutions in the stormwater and onsite septic wastewater industries today announced financial results for the fiscal second quarter ended September 30, 2022. Second Quarter Fiscal 2023 Results Net sales increased 25.2% to $884.2 million Net income […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[49630],"tags":[],"settori":[],"slider_categorie_and_home_page":[],"class_list":["post-831983","post","type-post","status-publish","format-standard","hentry","category-real-estate-in-asia-pacific"],"acf":[],"yoast_head":"\nAdvanced Drainage Systems Announces Second Quarter Fiscal 2023 Results - BeBeez<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bebeez.it\/en\/real-estate-in-asia-pacific\/advanced-drainage-systems-announces-second-quarter-fiscal-2023-results\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Advanced Drainage Systems Announces Second Quarter Fiscal 2023 Results - BeBeez\" \/>\n<meta property=\"og:description\" content=\"HILLIARD, Ohio–(BUSINESS WIRE)–Advanced Drainage Systems, Inc. (NYSE: WMS) (\u201cADS\u201d or the \u201cCompany\u201d), a leading provider of innovative water management solutions in the stormwater and onsite septic wastewater industries today announced financial results for the fiscal second quarter ended September 30, 2022. 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(NYSE: WMS) (\u201cADS\u201d or the \u201cCompany\u201d), a leading provider of innovative water management solutions in the stormwater and onsite septic wastewater industries today announced financial results for the fiscal second quarter ended September 30, 2022. Second Quarter Fiscal 2023 Results Net sales increased 25.2% to $884.2 million Net income […]","og_url":"https:\/\/bebeez.it\/en\/real-estate-in-asia-pacific\/advanced-drainage-systems-announces-second-quarter-fiscal-2023-results\/","og_site_name":"BeBeez","article_published_time":"2022-11-03T17:08:03+00:00","og_image":[{"width":683,"height":242,"url":"https:\/\/bebeez.it\/wp-content\/uploads\/2019\/10\/be-beez-logo-x2.png","type":"image\/png"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"14 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/bebeez.it\/en\/real-estate-in-asia-pacific\/advanced-drainage-systems-announces-second-quarter-fiscal-2023-results\/#article","isPartOf":{"@id":"https:\/\/bebeez.it\/en\/real-estate-in-asia-pacific\/advanced-drainage-systems-announces-second-quarter-fiscal-2023-results\/"},"author":{"name":"","@id":""},"headline":"Advanced Drainage Systems Announces Second Quarter Fiscal 2023 Results","datePublished":"2022-11-03T17:08:03+00:00","dateModified":"2022-11-03T17:08:03+00:00","mainEntityOfPage":{"@id":"https:\/\/bebeez.it\/en\/real-estate-in-asia-pacific\/advanced-drainage-systems-announces-second-quarter-fiscal-2023-results\/"},"wordCount":2820,"publisher":{"@id":"https:\/\/15.161.165.86\/#organization"},"articleSection":["Real Estate in Asia Pacific"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/bebeez.it\/en\/real-estate-in-asia-pacific\/advanced-drainage-systems-announces-second-quarter-fiscal-2023-results\/","url":"https:\/\/bebeez.it\/en\/real-estate-in-asia-pacific\/advanced-drainage-systems-announces-second-quarter-fiscal-2023-results\/","name":"Advanced Drainage Systems Announces Second Quarter Fiscal 2023 Results - BeBeez","isPartOf":{"@id":"https:\/\/15.161.165.86\/#website"},"datePublished":"2022-11-03T17:08:03+00:00","dateModified":"2022-11-03T17:08:03+00:00","breadcrumb":{"@id":"https:\/\/bebeez.it\/en\/real-estate-in-asia-pacific\/advanced-drainage-systems-announces-second-quarter-fiscal-2023-results\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/bebeez.it\/en\/real-estate-in-asia-pacific\/advanced-drainage-systems-announces-second-quarter-fiscal-2023-results\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/bebeez.it\/en\/real-estate-in-asia-pacific\/advanced-drainage-systems-announces-second-quarter-fiscal-2023-results\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/bebeez.it\/en\/"},{"@type":"ListItem","position":2,"name":"Advanced Drainage Systems Announces Second Quarter Fiscal 2023 Results"}]},{"@type":"WebSite","@id":"https:\/\/15.161.165.86\/#website","url":"https:\/\/15.161.165.86\/","name":"BeBeez","description":"BeBeez","publisher":{"@id":"https:\/\/15.161.165.86\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/15.161.165.86\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/15.161.165.86\/#organization","name":"BeBeez","url":"https:\/\/15.161.165.86\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/15.161.165.86\/#\/schema\/logo\/image\/","url":"https:\/\/bebeez.it\/wp-content\/uploads\/2019\/10\/be-beez-logo.png","contentUrl":"https:\/\/bebeez.it\/wp-content\/uploads\/2019\/10\/be-beez-logo.png","width":309,"height":122,"caption":"BeBeez"},"image":{"@id":"https:\/\/15.161.165.86\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/bebeez.it\/en\/wp-json\/wp\/v2\/posts\/831983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bebeez.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bebeez.it\/en\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bebeez.it\/en\/wp-json\/wp\/v2\/comments?post=831983"}],"version-history":[{"count":0,"href":"https:\/\/bebeez.it\/en\/wp-json\/wp\/v2\/posts\/831983\/revisions"}],"wp:attachment":[{"href":"https:\/\/bebeez.it\/en\/wp-json\/wp\/v2\/media?parent=831983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bebeez.it\/en\/wp-json\/wp\/v2\/categories?post=831983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bebeez.it\/en\/wp-json\/wp\/v2\/tags?post=831983"},{"taxonomy":"settori","embeddable":true,"href":"https:\/\/bebeez.it\/en\/wp-json\/wp\/v2\/settori?post=831983"},{"taxonomy":"slider_categorie_and_home_page","embeddable":true,"href":"https:\/\/bebeez.it\/en\/wp-json\/wp\/v2\/slider_categorie_and_home_page?post=831983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}](\"https:\/\/mms.businesswire.com\/media\/20221103005385\/en\/1460740\/5\/Small-ADS_Logo_-_Color.jpg\"){kind=link}