Advanced Drainage Systems(US:WMS)2023-02-02 19:17Financial Performance - Q3 Fiscal Year 2023 revenue decreased by 8% to $655.2 million compared to $715.4 million in Q3 Fiscal Year 2022[11, 33] - Adjusted EBITDA decreased by 4% to $169.7 million in Q3 Fiscal Year 2023, compared to $176.2 million in Q3 Fiscal Year 2022, but Adjusted EBITDA Margin increased by 130 basis points[6, 12, 39] - Year-to-date Fiscal Year 2023 revenue increased by 17% to $2453.6 million compared to $2091.1 million in the same period of Fiscal Year 2022[31, 34] - Year-to-date Adjusted EBITDA increased by 26% to 32% with a margin of 28.6% - 29.2%, an increase of +420 to +480 basis points[15, 32] Business Segment Performance - ADS Legacy revenue decreased by 3%, while Infiltrator revenue decreased significantly by 30% in Q3 Fiscal Year 2023 compared to Q3 Fiscal Year 2022[7] - Year-to-date, ADS Legacy revenue increased by 22%, while Infiltrator revenue remained flat (0% change) compared to the same period last year[31] Market Dynamics - Construction market decreased by 11%, with Non-Residential down 8% and Residential down 17%, while Infrastructure and Agriculture increased by 1% and 7% respectively in Q3 Fiscal Year 2023[11] - For the nine months ended December 31, 2022, the construction market increased 19%, with non-residential up 24%, residential up 14%, infrastructure up 14%, and agriculture up 7%[31] Financial Position - The company maintained liquidity over $1 billion and a favorable leverage position, and repurchased 3.8 million shares year-to-date through December 31, 2022[9] - Free Cash Flow for Fiscal Year 2022 was $534 million, compared to $93 million in Fiscal Year 2023[13, 14] Outlook - The company expects net sales of $2975 million to $3050 million, up 7% to 10%, and Adjusted EBITDA of $850 million to $890 million, up 26% to 32% for Fiscal Year 2023[15]