QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated Filer | ☐ | ||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||
Emerging Growth Company |
Page | ||||||||||||||
December 31, 2023 | March 31, 2023 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash | $ | $ | |||||||||
Receivables (less allowance for doubtful accounts of $ | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Other assets: | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current maturities of debt obligations | $ | $ | |||||||||
Current maturities of finance lease obligations | |||||||||||
Accounts payable | |||||||||||
Other accrued liabilities | |||||||||||
Accrued income taxes | |||||||||||
Total current liabilities | |||||||||||
Long-term debt obligations (less unamortized debt issuance costs of $ | |||||||||||
Long-term finance lease obligations | |||||||||||
Deferred tax liabilities | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (see Note 9) | |||||||||||
Mezzanine equity: | |||||||||||
Redeemable common stock: $ | |||||||||||
Total mezzanine equity | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock; $ shares issued, respectively; | |||||||||||
Paid-in capital | |||||||||||
Common stock in treasury, at cost | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total ADS stockholders’ equity | |||||||||||
Noncontrolling interest in subsidiaries | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities, mezzanine equity and stockholders’ equity | $ | $ |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Loss (gain) on disposal of assets and costs from exit and disposal activities | ( | ( | ( | ||||||||||||||||||||
Intangible amortization | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Other expense: | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Derivative gain and other income, net | ( | ( | ( | ( | |||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Equity in net income of unconsolidated affiliates | ( | ( | ( | ( | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Less: net income attributable to noncontrolling interest | |||||||||||||||||||||||
Net income attributable to ADS | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Currency translation gain (loss) | ( | ||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Less: other comprehensive income attributable to noncontrolling interest | |||||||||||||||||||||||
Less: net income attributable to noncontrolling interest | |||||||||||||||||||||||
Total comprehensive income attributable to ADS | $ | $ | $ | $ |
Nine Months Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Deferred income taxes | ( | ||||||||||
Gain on disposal of assets and costs from exit and disposal activities | ( | ( | |||||||||
Stock-based compensation | |||||||||||
Amortization of deferred financing charges | |||||||||||
Fair market value adjustments to derivatives | ( | ||||||||||
Equity in net income of unconsolidated affiliates | ( | ( | |||||||||
Other operating activities | |||||||||||
Changes in working capital: | |||||||||||
Receivables | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Accounts payable, accrued expenses, and other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash Flows from Investing Activities | |||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from disposition of assets | |||||||||||
Acquisition, net of cash acquired | ( | ||||||||||
Other investing activities | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash Flows from Financing Activities | |||||||||||
Payments on syndicated Term Loan Facility | ( | ( | |||||||||
Proceeds from Revolving Credit Agreement | |||||||||||
Payments on Revolving Credit Agreement | ( | ||||||||||
Proceeds from Amended Revolving Credit Agreement | |||||||||||
Payments on Amended Revolving Credit Agreement | ( | ||||||||||
Proceeds from Senior Notes due 2030 | |||||||||||
Debt issuance costs | ( | ||||||||||
Payments on Equipment Financing | ( | ( | |||||||||
Payments on finance lease obligations | ( | ( | |||||||||
Repurchase of common stock | ( | ( | |||||||||
Cash dividends paid | ( | ( | |||||||||
Dividends paid to noncontrolling interest holder | ( | ||||||||||
Proceeds from exercise of stock options | |||||||||||
Payment of withholding taxes on vesting of restricted stock units | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash | ( | ||||||||||
Net change in cash | |||||||||||
Cash and restricted cash at beginning of period | |||||||||||
Cash and restricted cash at end of period | $ | $ | |||||||||
RECONCILIATION TO BALANCE SHEET | |||||||||||
Cash | $ | ||||||||||
Restricted cash (included in Other assets in the Condensed Consolidated Balance Sheets) | |||||||||||
Total cash and restricted cash | $ |
Common Stock | Paid -In Capital | Common Stock in Treasury | Accumulated Other Compre-hensive Loss | Retained Earnings | Total ADS Stockholders’ Equity | Non- controlling Interest in Subsidiaries | Total Stock- holders’ Equity | Redeemable Common Stock | Redeemable Convertible Preferred Stock | Total Mezzanine Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at October 1, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($ | — | — | — | — | — | — | ( | ( | — | ( | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | — | — | — | ( | — | — | ( | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest holder | — | — | — | — | — | — | — | — | ( | ( | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
KSOP redeemable common stock conversion | — | — | — | — | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards | — | ( | — | — | ( | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | — | — | — | — | — | ( | — | ( | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($ | — | — | — | — | — | — | ( | ( | — | ( | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest holder | — | — | — | — | — | — | — | — | ( | ( | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | — | — | — | ( | — | — | ( | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP share conversion | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
KSOP redeemable common stock conversion | — | — | — | — | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards | — | ( | — | — | ( | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance-based restricted stock units | — | ( | — | — | ( | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ |
Common Stock | Paid -In Capital | Common Stock in Treasury | Accumulated Other Compre-hensive Loss | Retained Earnings | Total ADS Stockholders’ Equity | Non- controlling Interest in Subsidiaries | Total Stock- holders’ Equity | Redeemable Common Stock | Total Mezzanine Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at October 1, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($ | — | — | — | — | — | — | ( | ( | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | — | — | — | ( | — | — | ( | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
KSOP redeemable common stock conversion | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards | — | ( | — | — | ( | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESPP Share Issuance | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($ | — | — | — | — | — | — | ( | ( | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | — | — | — | ( | — | — | ( | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
KSOP redeemable common stock conversion | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards | — | ( | — | — | ( | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance-based restricted stock units | — | ( | — | — | ( | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESPP Share Issuance | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | ( | — | — | — | — | ( | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ |
(In thousands) | December 31, 2023 | March 31, 2023 | |||||||||
Contract asset - product returns | $ | $ | |||||||||
Refund liability |
(In thousands) | December 31, 2023 | March 31, 2023 | |||||||||
Raw materials | $ | $ | |||||||||
Finished goods | |||||||||||
Total inventories | $ | $ |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
(In thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
NET INCOME PER SHARE—BASIC: | |||||||||||||||||||||||
Net income available to common stockholders – Basic | $ | $ | $ | $ | |||||||||||||||||||
Weighted average number of common shares outstanding – Basic | |||||||||||||||||||||||
Net income per common share – Basic | $ | $ | $ | $ | |||||||||||||||||||
NET INCOME PER SHARE—DILUTED: | |||||||||||||||||||||||
Net income available to common stockholders – Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average number of common shares outstanding – Basic | |||||||||||||||||||||||
Assumed restricted stock | |||||||||||||||||||||||
Assumed exercise of stock options | |||||||||||||||||||||||
Assumed performance units | |||||||||||||||||||||||
Weighted average number of common shares outstanding – Diluted | |||||||||||||||||||||||
Net income per common share – Diluted | $ | $ | $ | $ | |||||||||||||||||||
Potentially dilutive securities excluded as anti-dilutive |
(In thousands) | December 31, 2023 | March 31, 2023 | |||||||||
Term Loan Facility | $ | $ | |||||||||
Senior Notes due 2027 | |||||||||||
Senior Notes due 2030 | |||||||||||
Revolving Credit Facility | |||||||||||
Equipment Financing | |||||||||||
Total | |||||||||||
Less: Unamortized debt issuance costs | |||||||||||
Less: Current maturities | |||||||||||
Long-term debt obligations | $ | $ |
December 31, 2023 | March 31, 2023 | ||||||||||||||||||||||
(In thousands) | Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||||||||
Senior Notes due 2027 | $ | $ | $ | $ | |||||||||||||||||||
Senior Notes due 2030 | |||||||||||||||||||||||
Equipment Financing | |||||||||||||||||||||||
Total fair value | $ | $ | $ | $ |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Component of income before income taxes: | |||||||||||||||||||||||
Cost of goods sold | $ | $ | $ | $ | |||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Total stock-based compensation expense | $ | $ | $ | $ |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Stock-based compensation expense: | |||||||||||||||||||||||
Stock Options | $ | $ | $ | $ | |||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||
Performance-based Restricted Stock Units | |||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||
Non-Employee Directors | |||||||||||||||||||||||
Total stock-based compensation expense | $ | $ | $ | $ |
Nine Months Ended December 31, 2023 | |||||
Common stock price | $ | ||||
Expected stock price volatility | |||||
Risk-free interest rate | |||||
Weighted-average expected option life (years) | |||||
Dividend yield |
Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
(In thousands) | Net Sales | Intersegment Net Sales | Net Sales from External Customers | Net Sales | Intersegment Net Sales | Net Sales from External Customers | |||||||||||||||||||||||||||||
Pipe | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Infiltrator | ( | ( | |||||||||||||||||||||||||||||||||
International | |||||||||||||||||||||||||||||||||||
International - Pipe | ( | ( | |||||||||||||||||||||||||||||||||
International - Allied Products & Other | ( | — | |||||||||||||||||||||||||||||||||
Total International | ( | ( | |||||||||||||||||||||||||||||||||
Allied Products & Other | ( | ( | |||||||||||||||||||||||||||||||||
Intersegment Eliminations | ( | — | ( | — | |||||||||||||||||||||||||||||||
Total Consolidated | $ | $ | — | $ | $ | $ | — | $ | |||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
(In thousands) | Net Sales | Intersegment Net Sales | Net Sales from External Customers | Net Sales | Intersegment Net Sales | Net Sales from External Customers | |||||||||||||||||||||||||||||
Pipe | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Infiltrator | ( | ( | |||||||||||||||||||||||||||||||||
International | |||||||||||||||||||||||||||||||||||
International - Pipe | ( | ( | |||||||||||||||||||||||||||||||||
International - Allied Products & Other | ( | — | |||||||||||||||||||||||||||||||||
Total International | ( | ( | |||||||||||||||||||||||||||||||||
Allied Products & Other | ( | ( | |||||||||||||||||||||||||||||||||
Intersegment Eliminations | ( | — | ( | — | |||||||||||||||||||||||||||||||
Total Consolidated | $ | $ | — | $ | $ | $ | — | $ |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Segment Adjusted Gross Profit | |||||||||||||||||||||||
Pipe | $ | $ | $ | $ | |||||||||||||||||||
Infiltrator | |||||||||||||||||||||||
International | |||||||||||||||||||||||
Allied Products & Other | |||||||||||||||||||||||
Intersegment Eliminations | ( | ( | |||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Depreciation and Amortization | |||||||||||||||||||||||
Pipe | $ | $ | $ | $ | |||||||||||||||||||
Infiltrator | |||||||||||||||||||||||
International | |||||||||||||||||||||||
Allied Products & Other(a) | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Capital Expenditures | |||||||||||||||||||||||
Pipe | $ | $ | $ | $ | |||||||||||||||||||
Infiltrator | |||||||||||||||||||||||
International | |||||||||||||||||||||||
Allied Products & Other(a) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Reconciliation of Segment Adjusted Gross Profit: | |||||||||||||||||||||||
Total Gross Profit | $ | $ | $ | $ | |||||||||||||||||||
Depreciation and Amortization | |||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||
Total Segment Adjusted Gross Profit | $ | $ | $ | $ |
(In thousands) | 2023 | 2022 | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
Cash paid for interest | |||||||||||
Non-cash operating, investing and financing activities: | |||||||||||
Repurchase of common stock pending settlement | |||||||||||
Share repurchase excise tax accrual | |||||||||||
Acquisition of property, plant and equipment under finance lease | |||||||||||
Balance in accounts payable for the acquisition of property, plant and equipment |
Consolidated Statements of Operations data: | For the Three Months Ended December 31, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | |||||||||||||||||||||
Net sales | $ | 662,367 | 100.0 | % | $ | 655,167 | 100.0 | % | |||||||||||||||
Cost of goods sold | 402,518 | 60.8 | 431,250 | 65.8 | |||||||||||||||||||
Gross profit | 259,849 | 39.2 | 223,917 | 34.2 | |||||||||||||||||||
Selling, general and administrative | 91,289 | 13.8 | 85,936 | 13.1 | |||||||||||||||||||
Loss (gain) on disposal of assets and costs from exit and disposal activities | 2,512 | 0.4 | (348) | (0.1) | |||||||||||||||||||
Intangible amortization | 12,782 | 1.9 | 13,842 | 2.1 | |||||||||||||||||||
Income from operations | 153,266 | 23.1 | 124,487 | 19.0 | |||||||||||||||||||
Interest expense | 22,331 | 3.4 | 20,001 | 3.1 | |||||||||||||||||||
Derivative gain and other income, net | (4,772) | (0.7) | (4,125) | (0.6) | |||||||||||||||||||
Income before income taxes | 135,707 | 20.5 | 108,611 | 16.6 | |||||||||||||||||||
Income tax expense | 30,131 | 4.5 | 26,068 | 4.0 | |||||||||||||||||||
Equity in net income of unconsolidated affiliates | (1,304) | (0.2) | (639) | (0.1) | |||||||||||||||||||
Net income | 106,880 | 16.1 | 83,182 | 12.7 | |||||||||||||||||||
Less: net income attributable to noncontrolling interest | 1,241 | 0.2 | 1,142 | 0.2 | |||||||||||||||||||
Net income attributable to ADS | $ | 105,639 | 15.9 | % | $ | 82,040 | 12.5 | % |
(Amounts in thousands) | 2023 | 2022 | $ Variance | % Variance | |||||||||||||||||||
Pipe | $ | 346,053 | $ | 364,880 | $ | (18,827) | (5.2) | % | |||||||||||||||
Infiltrator | 103,871 | 88,934 | 14,937 | 16.8 | |||||||||||||||||||
International | 55,999 | 53,646 | 2,353 | 4.4 | |||||||||||||||||||
Allied Products & Other | 156,444 | 147,707 | 8,737 | 5.9 | |||||||||||||||||||
Total Consolidated | $ | 662,367 | $ | 655,167 | $ | 7,200 | 1.1 | % |
(Amounts in thousands) | 2023 | 2022 | $ Variance | % Variance | |||||||||||||||||||
Pipe | $ | 99,567 | $ | 92,816 | $ | 6,751 | 7.3 | % | |||||||||||||||
Infiltrator | 62,780 | 41,345 | 21,435 | 51.8 | |||||||||||||||||||
International | 12,817 | 11,881 | 936 | 7.9 | |||||||||||||||||||
Allied Products & Other | 86,606 | 77,161 | 9,445 | 12.2 | |||||||||||||||||||
Intersegment eliminations | (1,921) | 714 | (2,635) | (369.0) | |||||||||||||||||||
Total gross profit | $ | 259,849 | $ | 223,917 | $ | 35,932 | 16.0 | % |
Three Months Ended December 31, | |||||||||||
(Amounts in thousands) | 2023 | 2022 | |||||||||
Selling, general and administrative expenses | $ | 91,289 | $ | 85,936 | |||||||
% of Net sales | 13.8 | % | 13.1 | % |
Three Months Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Effective tax rate | 22.2 | % | 24.0 | % |
For the Nine Months Ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Consolidated Statements of Operations data: | (In thousands) | ||||||||||||||||||||||
Net sales | $ | 2,220,633 | 100.0 | % | $ | 2,453,562 | 100.0 | % | |||||||||||||||
Cost of goods sold | 1,326,647 | 59.7 | 1,557,575 | 63.5 | |||||||||||||||||||
Gross profit | 893,986 | 40.3 | 895,987 | 36.5 | |||||||||||||||||||
Selling, general and administrative | 269,525 | 12.1 | 261,095 | 10.6 | |||||||||||||||||||
(Gain) loss on disposal of assets and costs from exit and disposal activities | (10,669) | (0.5) | (147) | — | |||||||||||||||||||
Intangible amortization | 38,376 | 1.7 | 41,360 | 1.7 | |||||||||||||||||||
Income from operations | 596,754 | 26.9 | 593,679 | 24.2 | |||||||||||||||||||
Interest expense | 65,984 | 3.0 | 49,334 | 2.0 | |||||||||||||||||||
Derivative gain and other income, net | (15,827) | (0.7) | (5,632) | (0.2) | |||||||||||||||||||
Income before income taxes | 546,597 | 24.6 | 549,977 | 22.4 | |||||||||||||||||||
Income tax expense | 132,665 | 6.0 | 128,641 | 5.2 | |||||||||||||||||||
Equity in net income of unconsolidated affiliates | (3,880) | (0.2) | (3,705) | (0.2) | |||||||||||||||||||
Net income | 417,812 | 18.8 | 425,041 | 17.3 | |||||||||||||||||||
Less: net income attributable to noncontrolling interest | 2,719 | 0.1 | 3,848 | 0.2 | |||||||||||||||||||
Net income attributable to ADS | $ | 415,093 | 18.7 | % | $ | 421,193 | 17.2 | % |
(Amounts in thousands) | 2023 | 2022 | $ Variance | % Variance | |||||||||||||||||||
Pipe | $ | 1,180,328 | $ | 1,370,071 | $ | (189,743) | (13.8) | % | |||||||||||||||
Infiltrator | 342,956 | 354,603 | (11,647) | (3.3) | |||||||||||||||||||
International | 176,632 | 185,425 | (8,793) | (4.7) | |||||||||||||||||||
Allied Products & Other | 520,717 | 543,463 | (22,746) | (4.2) | |||||||||||||||||||
Total Consolidated | $ | 2,220,633 | $ | 2,453,562 | $ | (232,929) | (9.5) | % |
(Amounts in thousands) | 2023 | 2022 | $ Variance | % Variance | |||||||||||||||||||
Pipe | $ | 355,016 | $ | 380,199 | $ | (25,183) | (6.6) | % | |||||||||||||||
Infiltrator | 199,685 | 178,438 | 21,247 | 11.9 | |||||||||||||||||||
International | 47,711 | 47,253 | 458 | 1.0 | |||||||||||||||||||
Allied Products & Other | 296,004 | 289,768 | 6,236 | 2.2 | |||||||||||||||||||
Intersegment eliminations | (4,430) | 329 | (4,759) | (1,446.5) | |||||||||||||||||||
Total gross profit | $ | 893,986 | $ | 895,987 | $ | (2,001) | (0.2) | % |
Nine Months Ended December 31, | |||||||||||
(Amounts in thousands) | 2023 | 2022 | |||||||||
Selling, general and administrative expenses | $ | 269,525 | $ | 261,095 | |||||||
% of Net sales | 12.1 | % | 10.6 | % |
Nine Months Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Effective tax rate | 24.3 | % | 23.4 | % |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Depreciation and amortization | 38,053 | 35,846 | |||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
EBITDA | 197,395 | 165,097 | 728,475 | 710,362 | |||||||||||||||||||
Loss (gain) on disposal of assets and costs from exit and disposal activities | ( | ( | ( | ||||||||||||||||||||
Stock-based compensation expense | 7,402 | 6,179 | 23,636 | 19,912 | |||||||||||||||||||
Transaction costs(a) | 1,030 | 1,334 | 3,054 | 3,417 | |||||||||||||||||||
Interest income | (6,515) | (3,834) | (15,141) | (5,942) | |||||||||||||||||||
Other adjustments(b) | 2,382 | 1,309 | 2,414 | 4,380 | |||||||||||||||||||
Adjusted EBITDA | $ | 204,206 | $ | 169,737 | $ | 731,769 | $ | 731,982 | |||||||||||||||
Adjusted EBITDA Margin | 30.8 | % | 25.9 | % | 33.0 | % | 29.8 | % |
Nine Months Ended December 31, | |||||||||||
(Amounts in thousands) | 2023 | 2022 | |||||||||
Net cash provided by operating activities | $ | 700,262 | $ | 660,438 | |||||||
Capital expenditures | (136,385) | (126,858) | |||||||||
Free Cash Flow | $ | 563,877 | $ | 533,580 |
(Amounts in thousands) | December 31, 2023 | ||||
Total debt (debt and finance lease obligations) | $ | 1,324,808 | |||
Cash | 560,744 | ||||
Net debt (total debt less cash) | 764,064 | ||||
Leverage Ratio | 0.8 |
(Amounts in thousands) | December 31, 2023 | ||||
Revolver capacity | $ | 600,000 | |||
Less: outstanding borrowings | — | ||||
Less: letters of credit | (11,150) | ||||
Revolver available liquidity | $ | 588,850 |
Nine Months Ended December 31, | |||||||||||
(Amounts in thousands) | 2023 | 2022 | |||||||||
Net cash provided by operating activities | $ | 700,262 | $ | 660,438 | |||||||
Net cash used in investing activities | (115,879) | (174,822) | |||||||||
Net cash (used in) provided by financing activities | (236,436) | (78,590) |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan | ||||||||||||||||||||||
(amounts in thousands, except per share data) | ||||||||||||||||||||||||||
October 1, 2023 to October 31, 2023 | 339 | $ | 114.21 | 339 | $ | 277,184 | ||||||||||||||||||||
November 1, 2023 to November 30, 2023 | 175 | 115.90 | 175 | 256,937 | ||||||||||||||||||||||
December 1, 2023 to December 31, 2023 | 84 | 133.29 | 84 | 245,648 | ||||||||||||||||||||||
Total | 598 | $ | 117.40 | 598 | $ | 245,648 |
Item 6. | Exhibits |
Exhibit Number | Exhibit Description | |||||||
31.1* | ||||||||
31.2* | ||||||||
32.1* | ||||||||
32.2* | ||||||||
101.INS* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema. | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase. | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase. | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase. | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase. | |||||||
104 | The cover page for the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2023, has been formatted in Inline XBRL and contained in Exhibit 101. |
ADVANCED DRAINAGE SYSTEMS, INC. | ||||||||
By: | /s/ D. Scott Barbour | |||||||
D. Scott Barbour | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
By: | /s/ Scott A. Cottrill | |||||||
Scott A. Cottrill | ||||||||
Executive Vice President, Chief Financial Officer and Secretary | ||||||||
(Principal Financial Officer) | ||||||||
By: | /s/ Tim A. Makowski | |||||||
Tim A. Makowski | ||||||||
Vice President, Controller, and Chief Accounting Officer |
By: | /s/ D. Scott Barbour | |||||||
D. Scott Barbour | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
By: | /s/ Scott A. Cottrill | |||||||
Scott A. Cottrill | ||||||||
Executive Vice President, | ||||||||
Chief Financial Officer and | ||||||||
Secretary | ||||||||
(Principal Financial Officer) |
/s/ D. Scott Barbour | |||||
D. Scott Barbour | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) |
/s/ Scott A. Cottrill | |||||
Scott A. Cottrill | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Mar. 31, 2023 |
---|---|---|
Allowance for doubtful accounts | $ 6,058 | $ 8,227 |
Unamortized debt issuance costs | $ 10,270 | $ 11,804 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 81,415,000 | 79,057,000 |
Common stock, shares outstanding (in shares) | 70,200,000 | 69,518,000 |
Redeemable Common Stock | ||
Mezzanine equity, par value per share | $ 0.01 | $ 0.01 |
Mezzanine equity, shares outstanding (in shares) | 7,488,000 | 9,429,000 |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Income Statement [Abstract] | ||||
Net sales | $ 662,367,000 | $ 655,167,000 | $ 2,220,633,000 | $ 2,453,562,000 |
Cost of goods sold | 402,518,000 | 431,250,000 | 1,326,647,000 | 1,557,575,000 |
Gross profit | 259,849,000 | 223,917,000 | 893,986,000 | 895,987,000 |
Operating expenses: | ||||
Selling, general and administrative | 91,289,000 | 85,936,000 | 269,525,000 | 261,095,000 |
Loss (gain) on disposal of assets and costs from exit and disposal activities | 2,512,000 | (348,000) | (10,669,000) | (147,000) |
Intangible amortization | 12,782,000 | 13,842,000 | 38,376,000 | 41,360,000 |
Income from operations | 153,266,000 | 124,487,000 | 596,754,000 | 593,679,000 |
Other expense: | ||||
Interest expense | 22,331,000 | 20,001,000 | 65,984,000 | 49,334,000 |
Derivative gain and other income, net | (4,772,000) | (4,125,000) | (15,827,000) | (5,632,000) |
Income before income taxes | 135,707,000 | 108,611,000 | 546,597,000 | 549,977,000 |
Income tax expense | 30,131,000 | 26,068,000 | 132,665,000 | 128,641,000 |
Equity in net income of unconsolidated affiliates | (1,304,000) | (639,000) | (3,880,000) | (3,705,000) |
Net income | 106,880,000 | 83,182,000 | 417,812,000 | 425,041,000 |
Less: net income attributable to noncontrolling interest | 1,241,000 | 1,142,000 | 2,719,000 | 3,848,000 |
Net income attributable to ADS | $ 105,639,000 | $ 82,040,000 | $ 415,093,000 | $ 421,193,000 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 77,857 | 82,067 | 78,455 | 82,891 |
Diluted (in shares) | 78,586 | 82,987 | 79,188 | 83,980 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.36 | $ 1.00 | $ 5.29 | $ 5.08 |
Diluted (in dollars per share) | $ 1.34 | $ 0.99 | $ 5.24 | $ 5.02 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 106,880,000 | $ 83,182,000 | $ 417,812,000 | $ 425,041,000 |
Currency translation gain (loss) | 4,020,000 | 4,973,000 | 2,388,000 | (4,688,000) |
Comprehensive income | 110,900,000 | 88,155,000 | 420,200,000 | 420,353,000 |
Less: other comprehensive income attributable to noncontrolling interest | 963,000 | 1,069,000 | 1,409,000 | 797,000 |
Less: net income attributable to noncontrolling interest | 1,241,000 | 1,142,000 | 2,719,000 | 3,848,000 |
Total comprehensive income attributable to ADS | $ 108,696,000 | $ 85,944,000 | $ 416,072,000 | $ 415,708,000 |
Condensed Consolidated Statements of Stockholders' Equity and Mezzanine Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends per share (in dollars per share) | $ 0.14 | $ 0.12 | $ 0.42 | $ 0.36 |
Background and Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Background and Summary of Significant Accounting Policies | BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business - Advanced Drainage Systems, Inc., incorporated in Delaware, and its subsidiaries (collectively referred to as “ADS” or the “Company”) designs, manufactures and markets innovative water management solutions in the stormwater and onsite septic wastewater industries, providing superior drainage solutions for use in the construction and agriculture marketplace. ADS’s products are used across a broad range of end markets and applications, including non-residential, infrastructure and agriculture applications. The Company is managed and reports results of operations in three reportable segments: Pipe, Infiltrator Water Technologies Ultimate Holdings, Inc (“Infiltrator”) and International. The Company also reports the results of its Allied Products and all other business segments as Allied Products and Other. Historically, sales of the Company’s products have been higher in the first and second quarters of each fiscal year due to favorable weather and longer daylight conditions accelerating construction activity during these periods. Seasonal variations in operating results may also be impacted by inclement weather conditions, such as cold or wet weather, which can delay projects. Basis of Presentation - The Company prepares its Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Condensed Consolidated Balance Sheet as of March 31, 2023 was derived from audited financial statements included in the Annual Report on Form 10-K for the year ended March 31, 2023 (“Fiscal 2023 Form 10-K”). The accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, of a normal recurring nature, necessary to present fairly its financial position as of December 31, 2023 and the results of operations for the three and nine months ended December 31, 2023 and cash flows for the nine months ended December 31, 2023. The interim Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, filed in the Company’s Fiscal 2023 Form 10-K. Principles of Consolidation - The Condensed Consolidated Financial Statements include the Company, its wholly-owned subsidiaries, its majority-owned subsidiaries and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. The Company uses the equity method of accounting for equity investments where it exercises significant influence but does not hold a controlling financial interest. Such investments are recorded in Other assets in the Condensed Consolidated Balance Sheets and the related equity earnings from these investments are included in Equity in net income of unconsolidated affiliates in the Condensed Consolidated Statements of Operations. All intercompany balances and transactions have been eliminated in consolidation. Recent Accounting Guidance Improvements to Reportable Segment Disclosures - In November 2023, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) to amend ASC 280, Segment Reporting to enhance segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The amendments must be applied retrospectively to all periods presented in the financial statements. The Company is currently evaluating the impact of this standard on the Consolidated Financial Statements. Improvements to Income Tax Disclosures - In December 2023, the FASB issued an ASU to amend ASC 740, Income Taxes to enhance the transparency and usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. The amendments may be applied prospectively or retrospectively and are effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on the Consolidated Financial Statements. Except for the pronouncements described above, there have been no new accounting pronouncements issued or adopted since the filing of the Fiscal 2023 Form 10-K that have significance, or potential significance, to the Consolidated Financial Statements.
|
Discontinued Operations and Disposal Groups |
9 Months Ended |
---|---|
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Loss on Disposal of Assets and Costs from Exit and Disposal Activities | GAIN ON DISPOSAL OF ASSETS AND COSTS FROM EXIT AND DISPOSAL ACTIVITIES On April 14, 2023, the Company completed its divestiture of substantially all of the assets of Spartan Concrete, Inc. to a third party purchaser for consideration of $20.0 million. The Company recognized a gain on the sale of $14.9 million in the Condensed Consolidated Statements of Operations. Prior to the divestiture, the Company recorded the results of operations in Allied & Other.
|
Revenue Recognition |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | REVENUE RECOGNITION Revenue Disaggregation - The Company disaggregates net sales by Domestic, International and Infiltrator and further disaggregates Domestic and International by product type, consistent with its reportable segment disclosure. This disaggregation level best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Refer to “Note 12. Business Segments Information” for the Company’s disaggregation of Net sales by reportable segment. Contract Balances - The Company recognizes a contract asset representing the Company’s right to recover products upon the receipt of returned products and a contract liability for the customer refund. The following table presents the balance of the Company’s contract asset and liability as of the periods presented:
|
Leases |
9 Months Ended |
---|---|
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | LEASES Nature of the Company’s Leases - The Company has operating and finance leases for plants, yards, corporate offices, tractors, trailers and other equipment. The Company’s leases have remaining terms of less than one year to 14 years. A portion of the Company’s yard leases include an option to extend the leases for up to five years. The Company has included renewal options which are reasonably certain to be exercised in its right-of-use assets and lease liabilities.
|
Inventories |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES Inventories as of the periods presented consisted of the following:
|
Net Income Per Share and Stockholders' Equity |
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Net Income Per Share And Stockholders Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share and Stockholders' Equity | NET INCOME PER SHARE AND STOCKHOLDERS' EQUITY Net Income per Share - The following table presents information necessary to calculate net income per share for the periods presented, as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive:
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Related Party Transactions |
9 Months Ended |
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Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS ADS Mexicana - ADS conducts business in Mexico and Central America through its joint venture, ADS Mexicana, S.A. de C.V. (“ADS Mexicana”). ADS owns 51% of the outstanding stock of ADS Mexicana and consolidates ADS Mexicana for financial reporting purposes. On June 6, 2022, the Company and ADS Mexicana amended the Intercompany Revolving Credit Promissory Note (the “Intercompany Note”) with a borrowing capacity of $9.5 million. The Intercompany Note matures on June 8, 2027. The Intercompany Note indemnifies the ADS Mexicana joint venture partner for 49% of any unpaid borrowings. The interest rates under the Intercompany Note are determined by certain base rates or Secured Overnight Financing Rate (“SOFR”) plus an applicable margin based on the Leverage Ratio. As of both December 31, 2023 and March 31, 2023, there were no borrowings outstanding under the Intercompany Note. South American Joint Venture - The Tuberias Tigre - ADS Limitada joint venture (the “South American Joint Venture”) manufactures and sells HDPE corrugated pipe in certain South American markets. ADS owns 50% of the South American Joint Venture. ADS is the guarantor of 50% of the South American Joint Venture’s credit arrangement, and the debt guarantee is shared equally with the joint venture partner. The Company’s maximum potential obligation under this guarantee is $5.5 million as of December 31, 2023. The maximum borrowings permitted under the South American Joint Venture’s credit facility are $11.0 million. The Company does not anticipate any required contributions related to the balance of this credit arrangement. As of December 31, 2023, there was no outstanding principal balance for the South American Joint Venture’s credit facility including letters of credit. As of March 31, 2023, the outstanding principal balances of the South American Joint Venture’s credit facility including letters of credit was $5.5 million.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT Long-term debt as of the periods presented consisted of the following:
Senior Secured Credit Facilities – In May 2022, the Company entered into a Second Amendment (the “Second Amendment”) to the Company's Base Credit Agreement with Barclays Bank PLC, as administrative agent under the Term Loan Facility, PNC Bank, National Association, as new administrative agent under the Revolving Credit Facility. Among other things, the Second Amendment (i) amended the Base Credit Agreement by increasing the Revolving Credit Facility (the “Amended Revolving Credit Facility”) from $350 million to $600 million (including an increase of the sub-limit for the swing-line sub-facility from $50 million to $60 million), (ii) extended the maturity date of the Revolving Credit Facility to May 26, 2027, (iii) revised the “applicable margin” to provide an additional step-down to 175 basis points (for Term Benchmark based loans) and 75 basis points (for base rate loans) in the event the consolidated senior secured net leverage ratio is less than 2.00 to 1.00, and (iv) reset the “incremental amount” and the investment basket in non-guarantors and joint ventures. The Second Amendment also revised the reference interest rate from LIBOR to SOFR for both the Amended Revolving Credit Facility and the Term Loan Facility. Letters of credit outstanding at December 31, 2023 and March 31, 2023 amounted to $11.2 million and $9.7 million, respectively, and reduced the availability of the Revolving Credit Facility. Senior Notes due 2027 – On September 23, 2019, the Company issued $350.0 million aggregate principal amount of 5.0% Senior Notes due 2027 (the “2027 Notes”) pursuant to an Indenture, dated September 23, 2019 (the “2027 Indenture”), among the Company, the guarantors party thereto (the “Guarantors”) and U.S. Bank National Association, as Trustee (the “Trustee”). Senior Notes due 2030 – On June 9, 2022, the Company issued $500.0 million aggregate principal amount of 6.375% Senior Notes due 2030 (the “2030 Notes”) pursuant to an Indenture, dated June 9, 2022 (the “2030 Indenture”), among the Company, the Guarantors and the Trustee. Equipment Financing – The assets under the Equipment Financing acquired are titled to the Company and included in Property, plant and equipment, net on the Company's Condensed Consolidated Balance Sheet. The equipment financing has an initial term of between 12 and 84 months, based on the life of the equipment, and bears a weighted average interest of 1.6% as of December 31, 2023. The current portion of the equipment financing is $5.3 million, and the long-term portion is $7.0 million at December 31, 2023. Valuation of Debt - The carrying amounts of current financial assets and liabilities approximate fair value because of the immediate or short-term maturity of these items. The following table presents the carrying and fair value of the Company’s 2027 Notes, 2030 Notes and Equipment Financing for the periods presented:
The fair values of the 2027 Notes and 2030 Notes were determined based on quoted market data for the Company’s 2027 Notes and 2030 Notes, respectively. The fair value of the Equipment Financing was determined based on a comparison of the interest rate and terms of such borrowings to the rates and terms of similar debt available for the period. The categorization of the framework used to evaluate the 2027 Notes, 2030 Notes and Equipment Financing are considered Level 2. The Company believes the carrying amount of the remaining long-term debt, including the Term Loan Facility and Revolving Credit Facility, is not materially different from its fair value as the interest rates and terms of the borrowings are similar to currently available borrowings.
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Commitments and Contingencies |
9 Months Ended |
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Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Purchase Commitments - The Company has historically secured supplies of resin raw material by agreeing to purchase quantities during a future given period at a fixed price. These purchase contracts typically ranged from 1 to 12 months and occur in the ordinary course of business. The Company does not have any outstanding purchase commitments with fixed price and quantity as of December 31, 2023. The Company also enters into equipment purchase contracts with manufacturers. Litigation and Other Proceedings – The Company is involved from time to time in various legal proceedings that arise in the ordinary course of business, including but not limited to commercial disputes, environmental matters, employee related claims, intellectual property disputes and litigation in connection with transactions including acquisitions and divestitures. The Company does not believe that such litigation, claims, and administrative proceedings will have a material adverse impact on the Company’s financial position or results of operations. The Company records a liability when a loss is considered probable, and the amount can be reasonably estimated.
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Income Taxes |
9 Months Ended |
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Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s effective tax rate will vary based on a variety of factors, including overall profitability, the geographical mix of income before taxes and related tax rates in jurisdictions where it operates and other one-time charges, as well as the occurrence of discrete events. For the three months ended December 31, 2023 and 2022, the Company utilized an effective tax rate of 22.2% and 24.0%, respectively, to calculate its provision for income taxes. For the nine months ended December 31, 2023 and 2022, the Company utilized an effective tax rate of 24.3% and 23.4%, respectively, to calculate its provision for income taxes. State and local income taxes increased the effective rate for the three and nine months ended December 31, 2023 and 2022. Discrete income tax benefits related to amended state tax returns and the federal return to provision adjustment decreased the effective tax rate for the three months ended December 31, 2023. Additionally, discrete income tax benefit related to the stock-based compensation windfall decreased the effective tax rate for the three and nine months ended December 31, 2022.
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | STOCK-BASED COMPENSATION ADS has several programs for stock-based payments to employees and non-employee members of its Board of Directors, including stock options, performance-based restricted stock units and restricted stock. The Company recognized stock-based compensation expense in the following line items of the Condensed Consolidated Statements of Operations for the periods presented:
The following table summarizes stock-based compensation expense by award type for the periods presented:
2017 Omnibus Incentive Plan - The 2017 Incentive Plan provides for the issuance of a maximum of 5.0 million shares of the Company’s common stock for awards made thereunder, which awards may consist of stock options, restricted stock, restricted stock units, stock appreciation rights, phantom stock, cash-based awards, performance awards (which may take the form of performance cash, performance units or performance shares) or other stock-based awards. Restricted Stock – During the nine months ended December 31, 2023, the Company granted 0.1 million shares of restricted stock with a grant date fair value of $13.2 million. Performance-based Restricted Stock Units (“Performance Units”) – During the nine months ended December 31, 2023, the Company granted 0.1 million performance share units at a grant date fair value of $8.7 million. Options – During the nine months ended December 31, 2023, the Company granted 0.2 million nonqualified stock options under the 2017 Incentive Plan with a grant date fair value of $7.5 million. The Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The following table summarizes the assumptions used to estimate the fair value of stock-options during the period presented:
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Business Segments Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments Information | BUSINESS SEGMENTS INFORMATION The Company operates its business in three distinct reportable segments: “Pipe”, “International” and “Infiltrator.” “Allied Products & Other” represents the Company’s Allied Products and all other business segments. The Chief Operating Decision Maker (the “CODM”) evaluates segment reporting based on Net Sales and Segment Adjusted Gross Profit. The Company calculated Segment Adjusted Gross Profit as Net sales less Costs of goods sold, depreciation and amortization, stock-based compensation and non-cash charges. A measure of assets is not applicable, as segment assets are not regularly reviewed by the CODM for evaluating performance or allocating resources. The following table sets forth reportable segment information with respect to the amount of Net sales contributed by each class of similar products for the periods presented:
The following sets forth certain financial information attributable to the reportable segments for the periods presented:
(a)Includes depreciation, amortization and capital expenditures not allocated to a reportable segment. The amortization expense of Infiltrator intangible assets is included in Allied Products & Other.
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Supplemental Disclosure of Cash Flow Information |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow, Supplemental Disclosures | SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Supplemental disclosures of cash flow information for the nine months ended December 31 were as follows:
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Subsequent Events |
9 Months Ended |
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Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Common Stock Dividend - Subsequent to the end of the quarter, the Company declared a quarterly cash dividend of $0.14 per share of common stock. The dividend is payable on March 15, 2024, to stockholders of record at the close of business on March 1, 2024. Share Repurchase Program - Subsequent to the end of the quarter, 0.1 million shares of common stock at a cost of $13.1 million were repurchased under the Board of Directors' authorization in February 2022.
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Background and Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation - The Company prepares its Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Condensed Consolidated Balance Sheet as of March 31, 2023 was derived from audited financial statements included in the Annual Report on Form 10-K for the year ended March 31, 2023 (“Fiscal 2023 Form 10-K”). The accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, of a normal recurring nature, necessary to present fairly its financial position as of December 31, 2023 and the results of operations for the three and nine months ended December 31, 2023 and cash flows for the nine months ended December 31, 2023. The interim Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, filed in the Company’s Fiscal 2023 Form 10-K. |
Principles of Consolidation | Principles of Consolidation - The Condensed Consolidated Financial Statements include the Company, its wholly-owned subsidiaries, its majority-owned subsidiaries and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. The Company uses the equity method of accounting for equity investments where it exercises significant influence but does not hold a controlling financial interest. Such investments are recorded in Other assets in the Condensed Consolidated Balance Sheets and the related equity earnings from these investments are included in Equity in net income of unconsolidated affiliates in the Condensed Consolidated Statements of Operations. All intercompany balances and transactions have been eliminated in consolidation.
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Recent Accounting Guidance | Recent Accounting Guidance Improvements to Reportable Segment Disclosures - In November 2023, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) to amend ASC 280, Segment Reporting to enhance segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The amendments must be applied retrospectively to all periods presented in the financial statements. The Company is currently evaluating the impact of this standard on the Consolidated Financial Statements. Improvements to Income Tax Disclosures - In December 2023, the FASB issued an ASU to amend ASC 740, Income Taxes to enhance the transparency and usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. The amendments may be applied prospectively or retrospectively and are effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on the Consolidated Financial Statements. Except for the pronouncements described above, there have been no new accounting pronouncements issued or adopted since the filing of the Fiscal 2023 Form 10-K that have significance, or potential significance, to the Consolidated Financial Statements.
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Leases | Nature of the Company’s Leases - The Company has operating and finance leases for plants, yards, corporate offices, tractors, trailers and other equipment. The Company’s leases have remaining terms of less than one year to 14 years. A portion of the Company’s yard leases include an option to extend the leases for up to five years. The Company has included renewal options which are reasonably certain to be exercised in its right-of-use assets and lease liabilities.
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Revenue Recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Contract Asset and Liability | The following table presents the balance of the Company’s contract asset and liability as of the periods presented:
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Inventories (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories as of the periods presented consisted of the following:
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Net Income Per Share and Stockholders' Equity (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share And Stockholders Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Net Income Per Share | The following table presents information necessary to calculate net income per share for the periods presented, as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive:
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Debt (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-term debt as of the periods presented consisted of the following:
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Summary of Carrying And Fair Value of Senior Notes | The following table presents the carrying and fair value of the Company’s 2027 Notes, 2030 Notes and Equipment Financing for the periods presented:
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Stock-Based Compensation (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock-based Compensation Expense | The Company recognized stock-based compensation expense in the following line items of the Condensed Consolidated Statements of Operations for the periods presented:
The following table summarizes stock-based compensation expense by award type for the periods presented:
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Summary of Assumption Used to Estimate Fair Value of Stock Options | The following table summarizes the assumptions used to estimate the fair value of stock-options during the period presented:
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Business Segments Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from Reportable Segments by Product Type | The following table sets forth reportable segment information with respect to the amount of Net sales contributed by each class of similar products for the periods presented:
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Schedule of Financial Information Attributable to Reportable Segments | The following sets forth certain financial information attributable to the reportable segments for the periods presented:
(a)Includes depreciation, amortization and capital expenditures not allocated to a reportable segment. The amortization expense of Infiltrator intangible assets is included in Allied Products & Other.
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Reconciliation of Gross Profit to Segment Adjusted Gross Profit |
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Statement of Cash Flows, Supplemental Disclosures (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures | Supplemental disclosures of cash flow information for the nine months ended December 31 were as follows:
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Background and Summary of Significant Accounting Policies (Detail) |
9 Months Ended |
---|---|
Dec. 31, 2023
segment
| |
Accounting Policies [Abstract] | |
Number of reportable segments | 3 |
Discontinued Operations and Disposal Groups (Details) - USD ($) |
9 Months Ended | ||
---|---|---|---|
Apr. 14, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from disposition of assets | $ 19,979,000 | $ 0 | |
Spartan Concrete, Inc. | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (Loss) on Disposition of Other Assets | $ 14,900,000 | ||
Proceeds from disposition of assets | $ 20,000,000 |
Revenue Recognition - Schedule of Contract Asset and Liability (Detail) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Mar. 31, 2023 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract asset - product returns | $ 1,546 | $ 933 |
Refund liability | $ 4,628 | $ 2,664 |
Leases (Detail) |
9 Months Ended |
---|---|
Dec. 31, 2023 | |
Minimum | |
Lessee Lease Description [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Lessee Lease Description [Line Items] | |
Remaining lease term | 14 years |
Maximum | Yard | |
Lessee Lease Description [Line Items] | |
Lease renewal term | 5 years |
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Mar. 31, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 106,097 | $ 108,206 |
Finished goods | 299,312 | 355,788 |
Total inventories | $ 405,409 | $ 463,994 |
Related Party Transactions (Detail) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Mar. 31, 2023 |
Jun. 06, 2022 |
|
South American Joint Venture | |||
Related Party Transaction [Line Items] | |||
Maximum borrowings permitted under credit facility | $ 11.0 | ||
Company's ownership percentage | 50.00% | ||
Percentage of debt guarantee | 50.00% | ||
Maximum potential payment under guarantee | $ 5.5 | ||
Outstanding principal balance including letters of credit | 0.0 | $ 5.5 | |
Consolidated Entity, Excluding Consolidated VIE | |||
Related Party Transaction [Line Items] | |||
Maximum borrowings permitted under credit facility | $ 9.5 | ||
Maximum borrowings permitted under credit facility | $ 0.0 | ||
Consolidated Entity, Excluding Consolidated VIE | ADS Mexicana | |||
Related Party Transaction [Line Items] | |||
Company's ownership percentage | 51.00% | ||
Percentage of ownership in joint venture | 49.00% |
Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Mar. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt , gross | $ 1,284,287 | $ 1,295,888 |
Less: Unamortized debt issuance costs | 10,270 | 11,804 |
Less: Current maturities | 12,275 | 14,693 |
Long-term debt obligations | 1,261,742 | 1,269,391 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 0 | 0 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 422,000 | 427,250 |
Senior Notes | Senior Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 350,000 | 350,000 |
Senior Notes | Senior Notes due 2030 | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 500,000 | 500,000 |
Equipment Financing | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 12,287 | $ 18,638 |
Less: Current maturities | 5,300 | |
Long-term debt obligations | $ 7,000 |
Debt - Senior Secured Credit Facility (Detail) $ in Millions |
1 Months Ended | |||
---|---|---|---|---|
May 31, 2022
USD ($)
|
Dec. 31, 2023
USD ($)
|
Mar. 31, 2023
USD ($)
|
Sep. 30, 2019
USD ($)
|
|
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowings permitted under credit facility | $ 600.0 | $ 350.0 | ||
Leverage ratio, maximum for variable rate step-down | 2.00 | |||
Outstanding letters of credit | $ 11.2 | $ 9.7 | ||
Revolving Credit Facility | Term Benchmark Based Loans Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Revolving Credit Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Sublimit of Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowings permitted under credit facility | $ 60.0 | $ 50.0 |
Debt - Senior Notes (Detail) - USD ($) $ in Millions |
Jun. 09, 2022 |
Sep. 23, 2019 |
---|---|---|
Senior Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 350.0 | |
Debt instrument, interest rate | 5.00% | |
Senior Notes due 2030 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 500.0 | |
Debt instrument, interest rate | 6.375% |
Debt - Equipment Financing (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Mar. 31, 2023 |
|
Debt Instrument [Line Items] | ||
Current maturities of debt obligations | $ 12,275 | $ 14,693 |
Long-term debt obligations | $ 1,261,742 | $ 1,269,391 |
Equipment Financing | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate of equipment financing | 1.60% | |
Current maturities of debt obligations | $ 5,300 | |
Long-term debt obligations | $ 7,000 | |
Minimum | Equipment Financing | ||
Debt Instrument [Line Items] | ||
Equipment financing term | 12 months | |
Maximum | Equipment Financing | ||
Debt Instrument [Line Items] | ||
Equipment financing term | 84 months |
Commitments and Contingencies (Detail) - Inventory |
9 Months Ended |
---|---|
Dec. 31, 2023
USD ($)
| |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Total purchase commitment | $ 0 |
Minimum | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase commitment contract period | 1 month |
Maximum | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase commitment contract period | 12 months |
Income Taxes (Detail) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 22.20% | 24.00% | 24.30% | 23.40% |
Stock-Based Compensation - Summary of Assumption Used to Estimate Fair Value of Stock Options (Detail) |
9 Months Ended |
---|---|
Dec. 31, 2023
$ / shares
| |
Share-Based Payment Arrangement [Abstract] | |
Common stock price (in dollars per share) | $ 96.51 |
Expected stock price volatility | 45.60% |
Risk-free interest rate | 3.80% |
Weighted-average expected option life (years) | 6 years |
Dividend yield | 0.58% |
Business Segments Information - Additional Information (Detail) |
9 Months Ended |
---|---|
Dec. 31, 2023
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segments Information - Reconciliation of Gross Profit to Segment Adjusted Gross Profit (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Gross profit | $ 259,849 | $ 223,917 | $ 893,986 | $ 895,987 |
Total Segment Adjusted Gross Profit | 284,253 | 245,233 | 965,968 | 959,837 |
Segment Reconciling Items | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Depreciation and Amortization | 23,088 | 20,573 | 68,509 | 61,675 |
Stock-based compensation expense | $ 1,316 | $ 743 | $ 3,473 | $ 2,175 |
Statement of Cash Flows, Supplemental Disclosures (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for income taxes | $ 114,712 | $ 136,320 |
Cash paid for interest | 51,484 | 24,757 |
Repurchase of common stock pending settlement | 1,139 | 0 |
Excise tax accrual, share repurchase | 1,486 | 0 |
Acquisition of property, plant and equipment under finance lease | 21,061 | 10,684 |
Balance in accounts payable for the acquisition of property, plant and equipment | $ 22,925 | $ 14,748 |
Subsequent Events (Detail) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Feb. 08, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Subsequent Event [Line Items] | |||||
Common stock dividends per share (in dollars per share) | $ 0.14 | $ 0.12 | $ 0.42 | $ 0.36 | |
Stock repurchased during period | $ 70,905 | $ 179,864 | $ 180,812 | $ 375,027 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Common stock dividends per share (in dollars per share) | $ 0.14 | ||||
Share repurchases (in shares) | 0.1 | ||||
Stock repurchased during period | $ 13,100 |
Label | Element | Value |
---|---|---|
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | $ (20,346,000) |
Parent [Member] | ||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | (20,346,000) |
Treasury Stock, Common [Member] | ||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | $ (20,351,000) |
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensation | 205,000 |
Common Stock [Member] | ||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | $ 5,000 |
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensation | 527,000 |
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