TORONTO, Jan. 16, 2025 (GLOBE NEWSWIRE) -- Western Metallica Resources Corp. (TSXV: WMS) (“Western Metallica” or the “Company”) announces it has secured bridge financing in the amount of CDN$100,000 (the "Bridge Loan") from Gregory Duras, Chief Executive Officer and Director of the Company (the "Lender"), in order to continue to advance its exploration activities at the Luz Maria copper-molybdenum target, located within the Company’s 100%-owned Caña Brava Project, Northern Peru. The Bridge Loan bears inte ...

Core Viewpoint - Western Metallica Resources Corp. has reported promising initial results from its ongoing drill program at the Luz Maria copper-molybdenum target, indicating the presence of a significant Cu-Mo porphyry system in Northern Peru [1][6][7]. Drilling Highlights - Three diamond drill holes have been completed at the Luz Maria prospect, all intersecting broad intervals of strongly altered intrusive rocks typical of Andean porphyry systems [4]. - Drill hole LM24DD001 reached a depth of 396.1 meters, intersecting 275 meters of altered and mineralized diorite with average grades of 400 ppm Cu and 100 ppm Mo [4][6]. - Drill hole LM24DD002, completed to 329.7 meters, showed increasing alteration intensity, with the best result being 1.8 meters at 0.2% Cu [4][5]. - Drill hole LM24DD003, terminated at 330.45 meters due to operational issues, intercepted a strongly altered quartz-monzonite intrusion, indicating increasing mineralization density at depth [5][6]. Geological Context - The Luz Maria project is located within a 500 meters by 300 meters area, representing less than 5% of the defined alteration footprint, suggesting significant potential for further exploration [4][6]. - The project is situated in a region known for world-class deposits, with the Caña Brava Project being strategically located near industrial ports and major roads [9][10]. Future Exploration Plans - The company plans to conduct a 6-hole maiden scout drill program to further assess the size and grade of the porphyry system, having only tested a small portion of the alteration footprint so far [6][8]. - Additional targets, such as Caña Brava 1, are also being explored, with plans for drilling a 1.5 km by 1.5 km phyllic alteration anomaly [8][10]. Technical Assurance - Sample preparation and analyses are conducted following standard industry procedures, ensuring the reliability of the results [11]. Company Overview - Western Metallica Resources Corp. is focused on mineral resource exploration and development, holding the option to acquire a 100% interest in the Caña Brava copper-molybdenum project in Peru [13].

Advanced Drainage Systems (NYSE: WMS ) is facing near-term headwinds in its non-residential end market and this is pressuring its valuation multiple. However, this is a transient headwind. With the interest rate cycle reversing, we should see a recovery in this market inI have over 15 years of experience investing and have provided research services to mid-sized hedge funds with assets under management between $100 and $500 million. I also have had a brief stint as a sell-side analyst. I am now focusing pri ...

Core Viewpoint - Western Metallica Resources Corp. has successfully completed its first drill hole at the Caña Brava project, indicating the presence of a complex copper-molybdenum porphyry system and marking a significant step in its exploration efforts [1][2][3]. Group 1: Drilling Progress and Findings - The first drill hole, LM24DD001, reached a depth of 396.1 meters, with drilling of a second hole, LM24DD002, currently in progress [1]. - Logging of drill holes confirms a complex Cu-Mo porphyry system with multiple intrusion phases and alteration events [2]. - The current drill program targets a mineralization area of 500 by 300 meters, coinciding with geochemical anomalies identified in previous surveys [3]. Group 2: Geological Characteristics - Copper and molybdenum mineralization is associated with quartz veining within strong potassic alteration, extending over an area of at least 2.7 km by 1.5 km, while the drilling area covers only 5% of this total [4]. - The alteration footprint includes biotite and phyllic assemblages, indicating a significant geological system [4]. Group 3: Project Location and Potential - The Caña Brava project is located in Northern Peru, within a region known for world-class copper-molybdenum deposits, and is strategically positioned near industrial ports and major roads [12][13]. - The project encompasses a 5,700-hectare area and is adjacent to other significant mining projects, suggesting potential for high-grade mineralization [13]. Group 4: Future Exploration Plans - The company is advancing with drilling permits for the Caña Brava 1 prospect, which features a distinctive leached zone and has confirmed grades of up to 0.3% Cu from various intrusive samples [13]. - The exploration work has successfully defined a cluster of multi-stage mineralized intrusions, comparable in size to other major deposits in Peru [13].

Company Performance - Advanced Drainage Systems reported quarterly earnings of $2.06 per share, exceeding the Zacks Consensus Estimate of $1.98 per share, and showing a slight increase from $2.04 per share a year ago [1] - The earnings surprise for this quarter was 4.04%, following a previous quarter where the company reported earnings of $1.23 per share against an expectation of $0.95, resulting in a surprise of 29.47% [2] - The company posted revenues of $815.34 million for the quarter, which was 1.53% below the Zacks Consensus Estimate, but an increase from $778.05 million in the same quarter last year [3] Market Performance - Advanced Drainage shares have increased approximately 5.9% since the beginning of the year, while the S&P 500 has gained 9% [4] - The current consensus EPS estimate for the upcoming quarter is $2.02, with expected revenues of $826 million, and for the current fiscal year, the estimate is $7.19 on $3.02 billion in revenues [8] Industry Outlook - The Building Products - Miscellaneous industry, to which Advanced Drainage belongs, is currently ranked in the top 40% of over 250 Zacks industries, indicating a favorable outlook [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact the stock's performance [6]

The market expects Advanced Drainage Systems (WMS) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 8, 2024, might help the stock move higher if these key n ...

Market Overview - The stormwater industry is estimated to be approximately $13 billion annually, while the onsite septic market is around $2 billion, leading to a combined addressable market opportunity of approximately $15 billion[17]. - The company has established a leading position in various end markets by leveraging its national sales and distribution platform, engineering support, and manufacturing excellence[15]. - The product portfolio is built around four lifecycle steps: Capture, Conveyance, Storage, and Treatment, ensuring comprehensive stormwater management[16]. Financial Performance - Net sales decreased by $196.6 million, or 6.4%, to $2,874.5 million compared to $3,071.1 million in the prior year[196]. - Gross profit increased by $27.5 million, or 2.5%, to $1,145.9 million, primarily due to favorable material costs[197]. - Adjusted EBITDA increased by $19.0 million, or 2.1%, to $922.9 million, representing 32.1% of net sales compared to 29.4% in the prior year[198]. - Net income increased by 0.4% to $513.3 million, with net income per diluted share rising by 6.1% to $6.45[204]. - Cash provided by operating activities increased by $10.1 million to $717.9 million, while free cash flow decreased by $6.8 million to $534.1 million[204]. Product and Technology Development - The Infiltrator product line includes advanced treatment systems capable of handling daily flows up to 100,000 gallons, enhancing wastewater purification[34]. - The company actively seeks and evaluates new products and technologies to enhance its Allied Products, which complement its core Pipe offerings[37]. - The company is investing in technology initiatives aimed at improving order management and manufacturing efficiency, but these may disrupt operations in the short term[135]. Sustainability Initiatives - Approximately 360 million pounds of post-consumer and post-industrial recycled HDPE and 130 million pounds of recycled polypropylene are converted each year, contributing to sustainability initiatives[49]. - The company has set 10 Year Sustainability Goals, including increasing the use of recycled plastic and implementing a supplier sustainability program[68]. - The company emphasizes a commitment to sustainability, recognized by its inclusion in Newsweek's list of America's Most Responsible Companies 2024[65]. - The company has committed to pursuing science-based targets to reduce greenhouse gas emissions, aligning with global temperature increase limits of 1.5°C[107]. Operational Capacity - The company operates 64 manufacturing plants and 41 distribution centers, with a new pipe manufacturing facility planned in Lake Wales, Florida[55]. - The company can produce over one billion pounds of pipe annually, with additional capacity to support seasonal production needs[58]. - The company maintains a large in-house fleet of approximately 650 tractors, aiming for less than three-day lead time on deliveries[62]. Customer Base and Sales Strategy - The customer base includes approximately 16,000 customers, with Ferguson Enterprises and Core and Main representing 13.3% and 12.5% of fiscal 2024 net sales, respectively[72]. - The company’s sales and marketing strategy focuses on comprehensive market coverage and diverse product offerings to effectively service customers[70]. - Seasonal sales are typically higher in the first and second quarters due to favorable weather conditions[192]. Regulatory and Compliance Challenges - The company is focused on regulatory approvals for its HDPE products, which are expected to drive growth opportunities in new and existing markets[93]. - Over the past 10 years, the regulatory team has successfully initiated over 100 regulatory initiatives, expanding market addressability across the U.S. and Canada[94]. - The company’s operations are affected by various environmental, health, and safety laws, which could impose significant compliance costs[95]. - In March 2024, the SEC adopted rules requiring significant climate-related disclosures, which may increase compliance burdens and regulatory costs for the company[108]. Risks and Challenges - The company is subject to fluctuations in resin prices, which are influenced by crude oil and natural gas prices, potentially impacting profitability if costs cannot be passed to customers[100]. - The company is exposed to risks from climate change, which may lead to more severe weather events affecting operations and supply chains, potentially impacting financial performance[112]. - Increased fuel and energy prices could adversely affect operating profits, especially if the company cannot pass these costs onto customers[123]. - The company faces challenges in managing working capital, with significant components including inventories, accounts receivable, and accounts payable[115]. Cybersecurity and IT Risks - Cybersecurity incidents pose a risk to the company's confidential information and operational integrity, potentially harming reputation and financial performance[136]. - The company has experienced cybersecurity incidents in the past, which did not materially impact financial results, but future incidents could have significant adverse effects on financial condition and operations[137]. - Failures in IT systems due to cybersecurity incidents could disrupt operations and financial processes, potentially leading to material adverse effects on business performance[138]. - The company relies on third-party vendors for secure systems, and any cybersecurity incidents affecting these vendors could disrupt normal business operations and impact financial performance[139]. Employee and Management Considerations - The ability to attract and retain highly qualified employees is critical for success, with external factors influencing labor costs and competition for talent[140]. - The company’s financial performance is dependent on the experience and relationships of its management team and plant managers, with potential impacts on growth and profitability if key personnel are lost[142]. Shareholder and Stock Considerations - As of May 9, 2024, the company has 77.4 million outstanding shares of common stock, with potential future sales by stockholders possibly causing stock price declines[148]. - The concentration of ownership among directors and principal stockholders may delay or prevent changes in control, potentially affecting stockholder interests and market price[151]. - The company repurchased 1.8 million shares of common stock at a cost of $207.3 million during fiscal 2024[178]. - The quarterly cash dividend declared for the first quarter of fiscal 2025 is $0.16 per share, up from $0.14 in fiscal 2024[174].

Financial Performance - Adjusted EBITDA increased 2% to $923 million, with Adjusted EBITDA margin reaching a record 32.1% for fiscal year 2024[2] - Net sales decreased 6% to $2.9 billion for fiscal year 2024, driven by weaker demand in the first half of the year[2] - Fourth quarter net sales increased 5.9% to $653.8 million, with Adjusted EBITDA up 11.2% to $191.2 million[3] - Gross profit increased 13.3% to $252.0 million in Q4, driven by favorable volume growth and productivity improvements[4] - Net income for the fiscal year ended March 31, 2024, was $513,291 thousand, slightly up from $511,353 thousand in the previous year[24] - Net Income for Q1 2024 was $95.48 million, a 10.6% increase from $86.31 million in Q1 2023[34] - Diluted Earnings Per Share for Q1 2024 was $1.21, compared to $1.06 in Q1 2023[38] - Adjusted Earnings Per Share for Q1 2024 was $1.23, up from $1.12 in Q1 2023[38] Segment Performance - Domestic pipe sales increased 3.3% to $358.7 million, while Infiltrator sales surged 21.0% to $106.1 million in Q4[3] - Pipe segment net sales from external customers were $1,544,290 thousand in 2024, down from $1,717,189 thousand in 2023[26] - Infiltrator Water Technologies segment net sales from external customers increased to $449,027 thousand in 2024 from $442,280 thousand in 2023[26] - International segment net sales from external customers decreased to $207,769 thousand in 2024 from $219,853 thousand in 2023[26] - Infiltrator Water Technologies segment gross profit for Q1 2024 was $65.36 million, a 63.3% increase from $40.01 million in Q1 2023[33] - Total Segment Adjusted Gross Profit for Q1 2024 was $280.94 million, up 14.6% from $245.20 million in Q1 2023[33] Cash Flow and Capital Expenditures - Free cash flow (Non-GAAP) decreased $6.8 million to $534.1 million for fiscal year 2024[3] - Net cash provided by operating activities reached $717,928 thousand in 2024, compared to $707,810 thousand in 2023[24] - Capital expenditures for 2024 were $183,812 thousand, up from $166,913 thousand in 2023[24] - Capital Expenditures for FY 2024 were $183.81 million, up 10.1% from $166.91 million in FY 2023[36] - Capital expenditures for fiscal 2025 are anticipated to be between $250 million and $300 million[12] Debt and Shareholder Returns - Net debt decreased by $246.9 million to $860.9 million as of March 31, 2024[9] - The company repurchased 1.8 million shares for $207.3 million and returned $251.3 million to shareholders in fiscal year 2024[11] - Repurchase of common stock in 2024 amounted to $207,308 thousand, significantly lower than $575,027 thousand in 2023[24] Future Outlook - Fiscal 2025 net sales are expected to range between $2.925 billion and $3.025 billion, with Adjusted EBITDA projected between $940 million and $980 million[12] Balance Sheet and Assets - Total assets increased to $3,268,913 thousand in March 2024 from $2,901,125 thousand in March 2023, reflecting a growth of 12.7%[22] - Cash and restricted cash at the end of 2024 were $495,848 thousand, up from $217,128 thousand in 2023[24] Other Financial Metrics - Free Cash Flow for FY 2024 was $534.12 million, slightly down from $540.90 million in FY 2023[36] - Depreciation and Amortization for Q1 2024 was $42.89 million, up 13.4% from $37.80 million in Q1 2023[34] - Stock-based Compensation Expense for Q1 2024 was $8.35 million, a 378% increase from $1.75 million in Q1 2023[34] - Total consolidated net sales for the fiscal year ended March 31, 2024, were $2,874,473 thousand, a decrease from $3,071,121 thousand in 2023[26]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-36557 ADVANCED DRAINAGE SYSTEMS, INC. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organization) De ...

Financial Performance - Revenue increased by 1% to $662 million in Q3 FY24 compared to $655 million in Q3 FY23[13] - Adjusted EBITDA Margin improved significantly to 30.8% in Q3 FY24, a +490 basis points increase from 25.9% in Q3 FY23[11] - The company expects Net Sales for Fiscal Year 2024 to be between $2.8 billion and $2.85 billion, representing a (9%) to (7%) year-over-year change[63] - The company expects Adjusted EBITDA for Fiscal Year 2024 to be between $880 million and $910 million, representing a (3%) to +1% year-over-year change[63] - The company expects Adjusted EBITDA Margin for Fiscal Year 2024 to be between 31.4% and 31.9%, a +200 to +250 basis points change[63] Business Segment Performance - Infiltrator business revenue increased by 17% in Q3 FY24 compared to Q3 FY23[9] - ADS Legacy pipe business revenue decreased by 1% in Q3 FY24 compared to Q3 FY23[9] - Allied Products revenue increased by 5% in Q3 FY24[14] Market and Demand - Infrastructure sector experienced a significant increase of 22% in Q3 FY24[15] - Non-Residential construction decreased by 3% in Q3 FY24[15] - Residential construction increased by 5% in Q3 FY24[15] Cash Flow and Capital Structure - Consolidated Free Cash Flow was $564 million[62]