Advanced Drainage Systems(WMS) - 2024 Q4 - Annual Results

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]