Core Insights - WMS, in collaboration with AT&T, is enhancing cruise connectivity services, introducing the AT&T International Day Pass™ for seamless cellular connectivity at sea [1][2][4] - The cruise industry is projected to grow significantly, with nearly 40 million passengers expected by 2027, prompting WMS and AT&T to improve connectivity experiences for travelers [5] Group 1: Service Details - The AT&T International Day Pass™ costs $20 per day, providing 500MB of high-speed data daily in international waters, along with unlimited talk and text [3][6] - The pass activates automatically, ensuring travelers remain connected both at sea and on land without incurring additional charges when visiting ports of call [3][4] Group 2: Company Background - WMS is recognized as a leading global provider of cruise wireless connectivity, having pioneered the first wireless network on a cruise ship 20 years ago [7] - AT&T serves over 100 million U.S. customers and nearly 2.5 million businesses, continuously innovating in telecommunications [8]

Core Insights - WMS, in collaboration with Verizon, has enhanced the Verizon Cruise Daily Pass, now available on over 200 cruise ships across more than 25 cruise lines, providing increased value for passengers [1][2] - The Cruise Daily Pass offers Verizon customers unlimited data (0.5GB of high-speed data followed by unlimited data at 3G speeds), unlimited calls to the US, and unlimited texts for $20 per line per day while at sea [2] - The cruise industry is projected to grow, with nearly 40 million passengers expected by 2027, indicating a strong market for enhanced connectivity solutions [3] Company Overview - WMS is recognized as the premier global provider of cruise wireless connectivity services, having pioneered the first wireless network on a cruise ship 20 years ago [5] - The company is headquartered in Miramar, FL, with additional operations in Atlanta, GA, and is known for its award-winning technology and strategic partnerships in challenging connectivity environments [5] Industry Context - The partnership between WMS and Verizon aims to improve the mobile experience for cruise passengers, aligning with the growth trajectory of the cruise industry [3] - The Cruise Daily Pass is positioned as a standard for connectivity at sea, enhancing the overall travel experience for passengers [3]

Core Viewpoint - Western Metallica Resources Corp. has amended its bridge financing to increase the amount to up to CDN$300,000, with CDN$230,000 already drawn down [1] Financing Details - The Amended Bridge Loan is classified as a "related party transaction" under MI 61-101, as the lender is a related party [2] - The company is relying on exemptions from valuation and minority shareholder approval requirements under MI 61-101 [2] Company Obligations - The company is expected to require additional financing to meet its obligations as they become due [3] Management Changes - Mr. Paul Pearson has resigned from the Board of Directors [4] Company Overview - Western Metallica is an Ontario registered company focused on mineral resource exploration and development, holding options for various projects including the Caña Brava copper-molybdenum project in Peru and the Nueva Celti Copper Property in Spain [5]

Core Insights - Western Metallica Resources Corp. has reported positive results from its inaugural scout drilling program at the Luz Maria copper-molybdenum target, indicating the potential for a significant porphyry-style deposit in Northern Peru [1][2] Drilling Program Overview - The initial drilling program consisted of three holes totaling 1,056.25 meters, confirming homogeneous copper and molybdenum grades throughout the drill sites [1][5] - The drill holes LM24DD001, LM24DD002, and LM24DD003 showed a transition from disseminated pyrrhotite to a stockwork of sulfide veinlets, suggesting an eastward vector towards a hotter center of the porphyry system [1][5] - The program tested only about 5% of the Luz Maria anomaly, with the longest alteration footprint measuring 2.7 kilometers [5] Geological Findings - The drill holes intersected strongly altered intrusive rocks with well-developed alteration assemblages typical of Andean porphyry systems, including potassic, phyllic, and sodic alterations [5][7] - The mineralization observed included chalcopyrite and molybdenite disseminations, with the best result being 1.8 meters at 0.2% Cu [5][7] - The increasing pyrrhotite content and stronger magnetic and chargeability signatures at depth support the geological interpretation of targeting hotter zones closer to the porphyry source [5][7] Future Exploration Plans - The company plans to continue exploring other identified targets, including Caña Brava 1, which features a 1.5 km by 1.5 km phyllic alteration anomaly with surface copper grades up to 0.4% [7] - The exploration work has defined a 10-kilometer unexplored structural corridor of porphyry-related targets, with Luz Maria being the first to be drill tested [2][7] Project Background - The Caña Brava Project is a 5,700-hectare area located in Northern Peru, strategically positioned near industrial ports and major roads, enhancing its scalability potential [12][13] - The project is situated within an under-explored sector of the Cu-Mo metallogenic belt, which hosts several world-class deposits [12][13]

Financial Data and Key Metrics Changes - Net sales increased by 4% to $691 million, driven by the acquisition of Orenco and positive demand in domestic construction markets, marking the fifth consecutive quarter of volume growth [7][11] - Adjusted EBITDA decreased by 6% year-over-year to $191 million, with favorable volume offset by price cost pressures [26] - Free cash flow generated year-to-date was $374 million, down from $564 million in the prior year, with capital spending increasing by 22% year-over-year to $166 million [29][30] Business Line Data and Key Metrics Changes - Sales in the non-residential market increased by 7%, accounting for approximately 45% of total sales, while residential market sales rose by 9%, representing about 35% of total revenue [8][10] - Infiltrator's organic revenue grew by 6%, driven by double-digit growth in tanks and advanced treatment products [11] - Infrastructure market sales declined by 6% due to tough comparisons, with this segment historically representing about 7% of overall revenue [11][12] Market Data and Key Metrics Changes - Strong demand was noted in the South and Southeastern United States, particularly in Florida, Texas, and Georgia, prompting an expansion of the ADS recycling facility in Cordele, Georgia [9][10] - Concerns about stormwater management have increased, with 60% of Americans expressing concern about their community's stormwater infrastructure, up from 51% in 2023 [15][16] Company Strategy and Development Direction - The company is focused on expanding its operations in stormwater management and enhancing its product portfolio, including the launch of a new stormwater treatment solution [13][16] - The acquisition of Orenco is seen as a strategic fit to enhance the product offering in decentralized wastewater treatment, aiming to establish a leadership position in a fragmented market [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains fluid, with varying performance across different geographies and market segments [56][60] - The company expects to maintain its fiscal 2025 revenue and adjusted EBITDA guidance, despite challenges posed by weather and market conditions [32][36] Other Important Information - The company plans to hold its 2025 Investor Day on June 26 in Hilliard, Ohio, showcasing its new engineering and technology center [24] - The company has consolidated one pipe manufacturing plant and two distribution yards to optimize operations and reduce costs [27][90] Q&A Session Summary Question: Insights on fourth quarter guidance and EBITDA range - Management indicated that the fourth quarter guidance reflects a tough comparison to the previous year, with stable pricing and material costs contributing to confidence in achieving results [35][37] Question: Non-residential market performance - Management highlighted strong geographic focus in the South and Southeast, contributing to share gains and improved performance in the non-residential market [41][42] Question: Pricing and cost dynamics - Management confirmed that pricing remains stable sequentially, with material costs flattening out, but year-over-year comparisons will still reflect previous trends [51][52] Question: Infrastructure market declines - Management attributed declines in the infrastructure market to timing and tough comparisons from the previous year, with confidence in the stability of IIJA funding for roads and highways [106][108] Question: Orenco's profitability outlook - Management expressed optimism about Orenco's potential to improve profitability over time, with expectations of moving from mid-teens to above 20% margins [116][117]

Financial Performance - Net sales for the three months ended December 31, 2024, were $690.5 million, an increase of 4.1% compared to $662.4 million for the same period in 2023[12]. - Net income attributable to ADS for the three months ended December 31, 2024, was $81.2 million, a decrease of 23.1% from $105.6 million in the same period last year[12]. - Net income for the nine months ended December 31, 2024, was $375,785, a decrease of 10% compared to $417,812 in 2023[17]. - The company reported a basic net income per share of $1.05 for the three months ended December 31, 2024, compared to $1.36 for the same period in 2023[12]. - The net income for the period was $373.0 million, representing a significant increase compared to previous periods[24]. - Consolidated net sales for the nine months ended December 31, 2024, increased by $67.9 million, or 3.1%, compared to the same period in fiscal 2023, driven by demand in residential and infrastructure end markets[94]. - Year-to-date net sales increased by 3.1% to $2,288.5 million, while net income decreased by 10.1% to $375.8 million[79]. Profitability - Gross profit for the nine months ended December 31, 2024, was $868.0 million, down 2.8% from $894.0 million in the prior year[12]. - Comprehensive income for the three months ended December 31, 2024, was $74.1 million, down from $110.9 million in the same period last year[14]. - Gross profit decreased by $26.0 million, or 2.9%, to $867.989 million for the nine months ended December 31, 2024, primarily due to unfavorable pricing and material costs in the Domestic Pipe segment[96][97]. - Adjusted EBITDA decreased by $12.7 million, or 6.2%, to $191.5 million, with a margin of 27.7% compared to 30.8% in the prior year[77]. Assets and Liabilities - Total assets increased to $3.6 billion as of December 31, 2024, compared to $3.3 billion as of March 31, 2024[10]. - Current liabilities decreased to $388.1 million from $439.6 million in the previous quarter[10]. - Long-term debt obligations remained stable at approximately $1.3 billion, with a slight decrease from $1.26 billion in the previous quarter[10]. - The company’s total debt, including the Term Loan Facility and Senior Notes, is approximately $1.272 billion as of December 31, 2024[48]. - Total debt as of December 31, 2024, was $1.409 billion, with a leverage ratio of 1.0[111]. Cash Flow - Net cash provided by operating activities decreased to $540,264, down 23% from $700,262 in the previous year[17]. - Free cash flow for the nine months ended December 31, 2024, was $373.854 million, down from $563.877 million in the same period of 2023[110]. - Cash flows from operating activities decreased by $160.0 million to $540.264 million, primarily due to a reduction in net income and changes in working capital[115]. - Cash and restricted cash at the end of the period was $494,753, a decrease from $566,346 at the end of the previous year[17]. Capital Expenditures - Capital expenditures increased to $166,410, compared to $136,385 in the same period last year, reflecting a 22% rise[17]. - Capital expenditures for the nine months ended December 31, 2024, totaled $166.4 million, with anticipated capital expenditures of approximately $225 million for fiscal year 2025[117][118]. Acquisitions - The acquisition of Orenco Systems, Inc. was completed for a preliminary fair value of $237.3 million, funded from cash on hand[33]. - The preliminary goodwill from the acquisition of Orenco is $104.0 million, attributed to expected operating efficiencies[35]. - The identifiable intangible assets from the Orenco acquisition are valued at $148.0 million, including customer relationships and developed technology[37]. - The company incurred $7.5 million in transaction costs related to the Orenco acquisition, included in selling, general and administrative expenses[36]. Market Risks - The company continues to face risks related to raw material costs and competition in existing markets, which may impact future performance[8]. - The company is exposed to various market risks, including interest rates, credit, raw material supply prices, and foreign currency exchange rates, which may negatively impact financial position and cash flows[122]. - The company remains in compliance with its debt covenants as of December 31, 2024[120]. Taxation - The company’s effective tax rate for the three months ended December 31, 2024, was 25.0%, an increase from 22.2% for the same period in 2023[56]. - The effective tax rate for the nine months ended December 31, 2024, was 24.0%, slightly down from 24.3% in the previous year[101]. Segment Performance - Segment Adjusted Gross Profit for the Pipe segment for the three months ended December 31, 2024, was $90,900,000, down from $115,621,000 in 2023, a decline of 21.4%[64]. - The Infiltrator segment reported a Segment Adjusted Gross Profit of $78,285,000 for the three months ended December 31, 2024, compared to $68,392,000 in 2023, an increase of 14.0%[64]. Stockholder Returns - The company declared common stock dividends of $0.48 per share, totaling $37.3 million[24]. - The company declared a quarterly cash dividend of $0.16 per share of common stock, payable on March 14, 2025[68].

//ADS. Adjusted EBITDA Margin (310) bps 30.8% 27.7% Q3 FY25 Q3 FY24 Q3 Fiscal 2025 Financial Results February 6, 2025 2 3 CEO Highlights Q3 Fiscal 2025 Revenue Sales (1%) $558 $555 +30% SHO4 S135 ADS Legacy Q3 FY24 ■Q3 FY25 Q3 Fiscal 2025 Profitability Business Updates Revenue is based on net sales to external customers. See appendix for reconciliation. · Construction market volume and pricing overall in line with expectations. · Fifth consecutive quarter of volume growth in construction end markets. · Infi ...

Core Viewpoint - Advanced Drainage Systems reported quarterly earnings of $1.09 per share, missing the Zacks Consensus Estimate of $1.17 per share, and down from $1.37 per share a year ago [1][2] Financial Performance - The company posted revenues of $690.54 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.40%, compared to $662.37 million in the same quarter last year [3] - The earnings surprise for the quarter was -6.84%, and the company has surpassed consensus EPS estimates two times over the last four quarters [2][3] Stock Performance - Advanced Drainage shares have increased by approximately 0.4% since the beginning of the year, while the S&P 500 has gained 3.1% [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.16 on revenues of $675 million, and for the current fiscal year, it is $6.12 on revenues of $2.96 billion [8] - The estimate revisions trend for Advanced Drainage is mixed, which could change following the recent earnings report [7] Industry Context - The Building Products - Miscellaneous industry, to which Advanced Drainage belongs, is currently in the top 34% of over 250 Zacks industries, indicating a favorable outlook [9]

Financial Performance - Net sales increased by $28.2 million, or 4.3%, to $690.5 million compared to $662.4 million in the prior year quarter[3] - Infiltrator sales increased by $31.4 million, or 30.3%, to $135.3 million, with organic revenue growth of 5.8% excluding the acquisition of Orenco[3] - Year-to-date net sales increased by $67.9 million, or 3.1%, to $2.3 billion, with Infiltrator sales up by $51.1 million, or 14.9%[7] - Net sales for the three months ended December 31, 2024, increased to $690,538,000, up 4.0% from $662,367,000 in the same period of 2023[23] Income and Earnings - Net income decreased by $24.6 million, or 23.0%, to $82.3 million, with diluted earnings per share decreasing by $0.30, or 22.3%, to $1.04[4] - Net income attributable to ADS for the three months ended December 31, 2024, was $81,231,000, down 23.1% from $105,639,000 in the prior year[23] - The company reported a decrease in net income for the nine months ended December 31, 2024, to $375,785,000, down 10.1% from $417,812,000 in 2023[27] - Diluted Earnings Per Share for Q3 2024 was $1.04, a decrease of 22.4% from $1.34 in Q3 2023[40] - Adjusted Earnings per Share for Q3 2024 was $1.09, down 20.4% from $1.37 in Q3 2023[40] Expenses - Selling, general and administrative expenses increased by $9.5 million, or 10.4%, to $100.8 million, representing 14.6% of sales[5] - Operating expenses for the three months ended December 31, 2024, rose to $100,778,000, an increase of 10.5% from $91,289,000 in 2023[23] - Total Gross Profit for Q3 2024 was $241,594, down 7.0% from $259,849 in Q3 2023[36] - Total Segment Adjusted Gross Profit for Q3 2024 was $275,943, a decrease of 2.3% from $284,253 in Q3 2023[36] Cash Flow and Liquidity - Net cash provided by operating activities was $540.3 million, down from $700.3 million in the prior year[12] - Net cash provided by operating activities for the nine months ended December 31, 2024, was $540,264,000, down from $700,262,000 in 2023[27] - Free Cash Flow for the nine months ended December 31, 2024, was $373,854, a decline of 33.7% compared to $563,877 in the same period of 2023[38] - Total liquidity was $1,078.4 million, including cash of $488.9 million and $589.6 million available under credit facilities[14] Capital Expenditures and Debt - Capital expenditures for the nine months ended December 31, 2024, were $166,410,000, compared to $136,385,000 in the same period of 2023[27] - Long-term debt obligations, net, as of December 31, 2024, were $1,253,129,000, slightly down from $1,259,522,000 as of March 31, 2024[25] Future Outlook - The company confirmed its fiscal 2025 financial targets, expecting net sales in the range of $2.900 billion to $2.975 billion and Adjusted EBITDA between $880 million and $920 million[16] Acquisition - The company completed the acquisition of Orenco on October 1, 2024, enhancing its offerings in decentralized wastewater management[13] Depreciation and Interest - Depreciation and amortization for Q3 2024 was $47,766, an increase of 25.5% from $38,053 in Q3 2023[37] - Interest expense for Q3 2024 was $23,094, a slight increase from $22,331 in Q3 2023[37]

Company Expansion - Advanced Drainage Systems (ADS) announced the groundbreaking of a significant expansion to its recycling facility in Cordele, Georgia, increasing the facility's total size to 117,000 square feet [1] - The expansion will enhance ADS' ability to provide high-quality recycled material to its factories in the Southeast [1] - The investment will bring as many as 50 new jobs to the local community [5] Industry Leadership - ADS is one of the largest plastic recycling companies in North America, sourcing both post-industrial and post-consumer recycled plastics to manufacture its stormwater and onsite septic wastewater products [2] - The company ensures over half a billion pounds of plastic is kept out of landfills every year [4] - ADS' industry-leading material blending programs allow the conversion of recycled plastic into durable products such as pipe and chambers [2] Strategic Location and Partnerships - The Cordele facility is part of a thriving economic region, ideal for efficiently manufacturing and transporting recycled materials to ADS' Southeastern pipe plant network [2] - The development of the ADS Recycling facility was supported by the Cordele-Crisp County Industrial Development Council, Crisp County Commissioners, and the Georgia Department of Economic Development [3] - The Crisp County Power Commission is purchasing and installing transformers to support production capabilities for this facility [3] Company Overview - ADS is a leading manufacturer of innovative stormwater and on-site septic wastewater solutions, managing the world's most precious resource: water [4] - The company operates approximately 70 manufacturing plants and 40 distribution centers, with the industry's largest company-owned fleet and an expansive sales team [4] - ADS and its subsidiary, Infiltrator Water Technologies, provide superior stormwater drainage and on-site septic wastewater products used in commercial, residential, infrastructure, and agricultural markets [4]