Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | WMS | |
Entity Registrant Name | ADVANCED DRAINAGE SYSTEMS, INC. | |
Entity Central Index Key | 1,604,028 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 56,929,194 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash | $ 18,394 | $ 17,587 |
Receivables (less allowance for doubtful accounts of $6,968 and $6,826, respectively) | 228,905 | 171,961 |
Inventories | 261,721 | 263,792 |
Other current assets | 8,740 | 5,113 |
Total current assets | 517,760 | 458,453 |
Property, plant and equipment, net | 391,710 | 399,381 |
Other assets: | ||
Goodwill | 102,792 | 103,017 |
Intangible assets, net | 42,486 | 44,437 |
Other assets | 36,158 | 37,954 |
Total assets | 1,090,906 | 1,043,242 |
Current liabilities: | ||
Current maturities of debt obligations | 26,623 | 26,848 |
Current maturities of capital lease obligations | 21,787 | 22,007 |
Accounts payable | 102,884 | 105,521 |
Other accrued liabilities | 66,037 | 60,560 |
Accrued income taxes | 16,090 | 6,307 |
Total current liabilities | 233,421 | 221,243 |
Long-term debt obligations (less unamortized debt issuance costs of $2,837 and $3,028, respectively) | 278,561 | 270,900 |
Long-term capital lease obligations | 57,388 | 59,963 |
Deferred tax liabilities | 34,008 | 32,304 |
Other liabilities | 22,950 | 25,023 |
Total liabilities | 626,328 | 609,433 |
Commitments and contingencies (see Note 10) | ||
Mezzanine equity: | ||
Redeemable convertible preferred stock: $0.01 par value; 47,070 shares authorized; 44,170 shares issued; 22,987 and 23,300 shares outstanding, respectively | 287,337 | 291,247 |
Deferred compensation – unearned ESOP shares | (187,772) | (190,168) |
Redeemable noncontrolling interest in subsidiaries | 8,474 | 8,471 |
Total mezzanine equity | 108,039 | 109,550 |
Stockholders’ equity: | ||
Common stock; $0.01 par value: 1,000,000 shares authorized; 57,366 shares issued; 56,925 and 56,476 shares outstanding, respectively | 11,431 | 11,426 |
Paid-in capital | 375,215 | 364,908 |
Common stock in treasury, at cost | (9,033) | (8,277) |
Accumulated other comprehensive loss | (24,684) | (21,247) |
Retained deficit | (11,976) | (39,214) |
Total ADS stockholders’ equity | 340,953 | 307,596 |
Noncontrolling interest in subsidiaries | 15,586 | 16,663 |
Total stockholders’ equity | 356,539 | 324,259 |
Total liabilities, mezzanine equity and stockholders’ equity | $ 1,090,906 | $ 1,043,242 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Allowance for doubtful accounts | $ 6,968 | $ 6,826 |
Unamortized debt issuance costs | $ 2,837 | $ 3,028 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 57,366,000 | 57,366,000 |
Common stock, shares outstanding | 56,925,000 | 56,476,000 |
Redeemable Convertible Preferred Stock [Member] | ||
Mezzanine equity, par value | $ 0.01 | $ 0.01 |
Mezzanine equity, shares authorized | 47,070,000 | 47,070,000 |
Mezzanine equity, shares issued | 44,170,000 | 44,170,000 |
Mezzanine equity, shares outstanding | 22,987,000 | 23,300,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 387,847 | $ 358,359 |
Cost of goods sold | 288,156 | 271,620 |
Gross profit | 99,691 | 86,739 |
Operating expenses: | ||
Selling | 24,165 | 23,099 |
General and administrative | 21,382 | 26,676 |
Loss on disposal of assets and costs from exit and disposal activities | 1,104 | 3,423 |
Intangible amortization | 1,984 | 2,044 |
Income from operations | 51,056 | 31,497 |
Other expense: | ||
Interest expense | 3,802 | 4,479 |
Derivative gains and other income, net | (814) | (954) |
Income before income taxes | 48,068 | 27,972 |
Income tax expense | 14,284 | 9,746 |
Equity in net loss (income) of unconsolidated affiliates | 133 | (248) |
Net income | 33,651 | 18,474 |
Less: net income attributable to noncontrolling interest | 1,371 | 732 |
Net income attributable to ADS | $ 32,280 | $ 17,742 |
Weighted average common shares outstanding: | ||
Basic | 56,594 | 55,303 |
Diluted | 57,158 | 56,010 |
Net income per share: | ||
Basic | $ 0.51 | $ 0.29 |
Diluted | 0.51 | 0.28 |
Cash dividends declared per share | $ 0.08 | $ 0.07 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 33,651 | $ 18,474 |
Currency translation (loss) gain | (4,812) | 3,427 |
Comprehensive income | 28,839 | 21,901 |
Less: other comprehensive (loss) gain attributable to noncontrolling interest | (1,375) | 851 |
Less: net income attributable to noncontrolling interest | 1,371 | 732 |
Total comprehensive income attributable to ADS | $ 28,843 | $ 20,318 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows from Operating Activities | ||
Net income | $ 33,651 | $ 18,474 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,827 | 18,221 |
Deferred income taxes | 1,729 | (281) |
Loss on disposal of assets and costs from exit and disposal activities | 1,104 | 3,423 |
ESOP and stock-based compensation | 5,580 | 4,304 |
Amortization of deferred financing charges | 191 | 353 |
Fair market value adjustments to derivatives | (625) | 191 |
Equity in net loss (income) of unconsolidated affiliates | 133 | (248) |
Other operating activities | (1,030) | (1,656) |
Changes in working capital: | ||
Receivables | (54,910) | (47,469) |
Inventories | 1,040 | (2,445) |
Prepaid expenses and other current assets | (3,665) | (2,547) |
Accounts payable, accrued expenses, and other liabilities | 8,806 | (6,857) |
Net cash provided by (used in) operating activities | 9,831 | (16,537) |
Cash Flows from Investing Activities | ||
Capital expenditures | (6,874) | (17,949) |
Other investing activities | (109) | (254) |
Net cash used in investing activities | (6,983) | (18,203) |
Cash Flows from Financing Activities | ||
Proceeds from Revolving Credit Facility | 101,400 | 212,950 |
Payments on Revolving Credit Facility | (93,700) | (155,750) |
Payments on Term Loan | (72,500) | |
Proceeds from Senior Notes | 75,000 | |
Debt issuance costs | (2,268) | |
Payments of notes, mortgages and other debt | (230) | (1,225) |
Payments on capital lease obligations | (5,885) | (6,066) |
Cash dividends paid | (6,141) | (4,353) |
Proceeds from exercise of stock options | 3,215 | 6 |
Repurchase of common stock | (7,947) | |
Other financing activities | (257) | (652) |
Net cash (used in) provided by financing activities | (1,598) | 37,195 |
Effect of exchange rate changes on cash | (443) | (188) |
Net change in cash | 807 | 2,267 |
Cash at beginning of period | 17,587 | 6,450 |
Cash at end of period | 18,394 | 8,717 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for income taxes | 952 | 5,899 |
Cash paid for interest | 4,000 | 4,498 |
Non-cash operating, investing and financing activities: | ||
Acquisition of property, plant and equipment under capital lease and incurred lease obligations | 3,171 | 9,588 |
Balance in accounts payable for the acquisition of property, plant and equipment | $ 1,851 | $ 2,593 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Mezzanine Equity - USD ($) shares in Thousands, $ in Thousands | Total | Redeemable Non-controlling Interest in Subsidiaries [Member] | Redeemable Convertible Preferred Stock [Member] | Deferred Compensation - Unearned ESOP Shares [Member] | Total Mezzanine Equity [Member] |
Beginning Balance, Value at Mar. 31, 2017 | $ 8,227 | $ 302,814 | $ (198,216) | $ 112,825 | |
Beginning Balance, Shares at Mar. 31, 2017 | 24,225 | 15,863 | |||
Net income | 204 | 204 | |||
Redeemable convertible preferred stock dividends | $ (458) | ||||
Common stock dividends ($0.07 per share) | (3,895) | ||||
Allocation of ESOP shares to participants for compensation | 602 | $ 2,012 | 2,012 | ||
Allocation of ESOP shares to participants for Compensation, Shares | (161) | ||||
Exercise of common stock options | 6 | ||||
Restricted stock awards | 594 | ||||
Reclassification of liability- classified awards | 13,714 | ||||
Equity classified stock-based compensation expense before related tax effects | 1,084 | ||||
ESOP distribution in common stock | $ (4,457) | (4,457) | |||
ESOP distribution in common stock, Shares | (357) | ||||
Ending Balance, Value at Jun. 30, 2017 | 8,431 | $ 298,357 | $ (196,204) | 110,584 | |
Ending Balance, Shares at Jun. 30, 2017 | 23,868 | 15,702 | |||
Beginning Balance, Value at Mar. 31, 2018 | 109,550 | 8,471 | $ 291,247 | $ (190,168) | 109,550 |
Beginning Balance, Shares at Mar. 31, 2018 | 23,300 | 15,219 | |||
Net income | 338 | 338 | |||
Redeemable convertible preferred stock dividends | (497) | ||||
Common stock dividends ($0.07 per share) | (4,545) | ||||
Dividend paid to noncontrolling interest holder holder | (735) | (335) | (335) | ||
Allocation of ESOP shares to participants for compensation | 1,625 | $ 2,396 | 2,396 | ||
Allocation of ESOP shares to participants for Compensation, Shares | (192) | ||||
Exercise of common stock options | 2,513 | ||||
Restricted stock awards | 735 | ||||
Equity classified stock-based compensation expense before related tax effects | 773 | ||||
ESOP distribution in common stock | $ (3,910) | (3,910) | |||
ESOP distribution in common stock, Shares | (313) | ||||
Ending Balance, Value at Jun. 30, 2018 | $ 108,039 | $ 8,474 | $ 287,337 | $ (187,772) | $ 108,039 |
Ending Balance, Shares at Jun. 30, 2018 | 22,987 | 15,027 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Paid-In Capital [Member] | Common Stock in Treasury [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Deficit [Member] | Total ADS Stockholders' Equity [Member] | Non-controlling Interest in Subsidiaries [Member] |
Beginning Balance, Value at Mar. 31, 2017 | $ 237,610 | $ 12,393 | $ 755,787 | $ (436,984) | $ (24,815) | $ (83,678) | $ 222,703 | $ 14,907 |
Beginning Balance, Shares at Mar. 31, 2017 | 153,560 | 98,222 | ||||||
Net income | 18,270 | 17,742 | 17,742 | 528 | ||||
Other comprehensive income (loss) | 3,427 | 2,576 | 2,576 | 851 | ||||
Redeemable convertible preferred stock dividends | (458) | (458) | (458) | |||||
Common stock dividends ($0.07 per share) | (3,895) | (3,895) | (3,895) | |||||
Allocation of ESOP shares to participants for compensation | 602 | 602 | 602 | |||||
Exercise of common stock options | 6 | 3 | $ 3 | 6 | ||||
Exercise of common stock options, Shares | (1) | |||||||
Restricted stock awards | 594 | 447 | $ 147 | 594 | ||||
Restricted stock awards, Shares | (33) | |||||||
Reclassification of liability- classified awards | 13,714 | 13,714 | 13,714 | |||||
Equity classified stock-based compensation expense before related tax effects | 1,084 | 1,084 | 1,084 | |||||
ESOP distribution in common stock | 4,457 | 3,237 | $ 1,220 | 4,457 | ||||
ESOP distribution in common stock, Shares | (274) | |||||||
Common stock repurchases | (7,947) | $ (7,900) | $ (7,947) | (7,947) | ||||
Common stock repurchases, Shares | 400 | 400 | ||||||
Ending Balance, Value at Jun. 30, 2017 | 267,464 | $ 12,393 | 774,874 | $ (443,561) | (22,239) | (70,289) | 251,178 | 16,286 |
Ending Balance, Shares at Jun. 30, 2017 | 153,560 | 98,314 | ||||||
Beginning Balance, Value at Mar. 31, 2018 | 324,259 | $ 11,426 | 364,908 | $ (8,277) | (21,247) | (39,214) | 307,596 | 16,663 |
Beginning Balance, Shares at Mar. 31, 2018 | 56,889 | 413 | ||||||
Net income | 33,313 | 32,280 | 32,280 | 1,033 | ||||
Other comprehensive income (loss) | (4,812) | (3,437) | (3,437) | (1,375) | ||||
Redeemable convertible preferred stock dividends | (497) | (497) | (497) | |||||
Common stock dividends ($0.07 per share) | (4,545) | (4,545) | (4,545) | |||||
Dividend paid to noncontrolling interest holder holder | (735) | (735) | ||||||
Allocation of ESOP shares to participants for compensation | 1,625 | 1,625 | 1,625 | |||||
Exercise of common stock options | 2,513 | $ 2 | 3,215 | $ (704) | 2,513 | |||
Exercise of common stock options, Shares | 217 | 26 | ||||||
Restricted stock awards | 735 | $ 1 | 786 | $ (52) | 735 | |||
Restricted stock awards, Shares | 19 | 2 | ||||||
Equity classified stock-based compensation expense before related tax effects | 773 | 773 | 773 | |||||
ESOP distribution in common stock | 3,910 | $ 2 | 3,908 | 3,910 | ||||
ESOP distribution in common stock, Shares | 241 | |||||||
Common stock repurchases | $ 0 | |||||||
Common stock repurchases, Shares | 0 | |||||||
Ending Balance, Value at Jun. 30, 2018 | $ 356,539 | $ 11,431 | $ 375,215 | $ (9,033) | $ (24,684) | $ (11,976) | $ 340,953 | $ 15,586 |
Ending Balance, Shares at Jun. 30, 2018 | 57,366 | 441 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) - $ / shares | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Stockholders Equity [Abstract] | ||
Common stock dividend per share | $ 0.08 | $ 0.07 |
Background and Summary of Signi
Background and Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Background and Summary of Significant Accounting Policies | 1. BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business - Advanced Drainage Systems, Inc. and subsidiaries (collectively referred to as “ADS” or the “Company”), incorporated in Delaware, designs, manufactures and markets high performance thermoplastic corrugated pipe and related water management products, primarily in North and South America and Europe. ADS’s broad product line includes corrugated high density polyethylene (or “HDPE”) pipe, polypropylene (or “PP”) pipe and related water management products. The Company is managed based primarily on the geographies in which it operates and reports results of operations in two reportable segments: Domestic and International. 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, 2018 was derived from audited financial statements included in the Annual Report on Form 10-K for the year ended March 31, 2018 (“Fiscal 2018 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 June 30, 2018 and the results of operations and cash flows for the three months ended June 30, 2018. 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 2018 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 loss (income) of unconsolidated affiliates in the Condensed Consolidated Statements of Operations. All intercompany balances and transactions have been eliminated in consolidation. Recent Accounting Guidance Recently Adopted Accounting Guidance Revenue Recognition - In May 2014, the FASB issued an accounting standards update (“ASU”) which amends the guidance for revenue recognition. This amendment contains principles that will require an entity to recognize revenue to depict the transfer of goods and services to customers at an amount that an entity expects to be entitled to in exchange for goods or services. The amendment sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations and recognizing the revenue upon satisfaction of performance obligations. In August 2015, the FASB issued an additional accounting standards update that deferred the effective date of the new revenue standard for public entities to periods beginning after December 15, 2017, with early adoption permitted but not earlier than the original effective date of periods beginning after December 15, 2016. There have also been various additional accounting standards updates issued by the FASB in 2016 that further amend this new revenue standard. The updated standard permits the use of either the retrospective or cumulative effect transition method. The Company adopted these standards on April 1, 2018 using the modified retrospective transition method. See “Note 3. Revenue Recognition” for further information on the adoption of the revenue recognition ASU. Cash Flow Classification - In August 2016, the FASB issued an ASU which provides amended guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, including related to debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance and distributions received from equity method investees. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, and early adoption is permitted. This amended guidance must be applied retrospectively to all periods presented, but may be applied prospectively if retrospective application would be impracticable. The Company adopted this update effective April 1, 2018 using the retrospective method. The new standard did not have a material impact on the Condensed Consolidated Financial Statements. Goodwill Impairment - In January 2017, the FASB issued an ASU which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the standards update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The amendments are effective for annual periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted this update effective April 1, 2018. The new standard did not have an impact on the Condensed Consolidated Financial Statements. Definition of a Business - In January 2017, the FASB issued an ASU to clarify the definition of a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a more robust framework to use in determining when a set of assets and activities is a business. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company adopted this update effective April 1, 2018. The new standard did not have an impact on the Condensed Consolidated Financial Statements. Stock-Based Compensation - In May 2017, the FASB issued an ASU to clarify when modification accounting should be applied for changes to the terms or conditions of share-based payment awards. The amendments clarify that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company adopted this update effective April 1, 2018. The new standard did not have an impact on the Condensed Consolidated Financial Statements. Recent Accounting Guidance Not Yet Adopted Leases - In February 2016, the FASB issued an ASU which amends the guidance for leases. This standard contains principles that will require an entity to recognize most leases on the balance sheet by recording a right-of-use asset and a lease liability, unless the lease is a short-term lease that has an accounting lease term of twelve months or less. The standard also contains other changes to the current lease guidance that may result in changes to how entities determine which contractual arrangements qualify as a lease, the accounting for executory costs such as property taxes and insurance, as well as which lease origination costs will be capitalizable. The new standard also requires expanded quantitative and qualitative disclosures. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, and early adoption is permitted. The standard requires the use of the modified retrospective transition method, whereby the new guidance will be applied at the beginning of the earliest period presented in the financial statements of the period of adoption. The modified retrospective transition approach includes certain practical expedients that entities may elect to apply in transition. The Company expects to adopt this standard effective April 1, 2019. The Company has implemented a new software solution to improve the process of tracking and accounting for leases under the current and new standards. The Company has not yet determined whether to apply any of the available practical expedients. The Company is in the process of reviewing contracts under the new standard to determine the impact the new standard will have on the Condensed Consolidated Financial Statements. Measurement of Credit Losses - In June 2016, the FASB issued an ASU which provides amended guidance on the measurement of credit losses on financial instruments, including trade receivables. This standard requires the use of an impairment model referred to as the current expected credit loss model. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, and early adoption is permitted for fiscal years beginning after December 15, 2018. The Company expects to adopt this standard effective April 1, 2020. The Company is currently evaluating the impact of this standard on the Condensed Consolidated Financial Statements. Hedge Accounting – In August 2017, the FASB issued an ASU which expands an entity’s ability to apply hedge accounting for non-financial and financial risk components and provides a simplified approach for fair value hedging of interest rate risk. The standard also refines how entities assess hedge effectiveness. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, and early adoption is permitted. The Company expects to adopt this standard effective April 1, 2019. The Company is currently evaluating the impact of this standard on the Condensed Consolidated Financial Statements. With the exception of the pronouncements described above, there have been no new accounting pronouncements issued or adopted since the filing of the Fiscal 2018 Form 10-K that have significance, or potential significance, to the Condensed Consolidated Financial Statements. |
Loss on Disposal of Assets and
Loss on Disposal of Assets and Costs from Exit and Disposal Activities | 3 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Loss on Disposal of Assets and Costs from Exit and Disposal Activities | 2. In fiscal 2018, the Company initiated restructuring activities (the “2018 Restructuring Plan”), including closing two underutilized manufacturing facilities, reducing headcount, optimizing product offerings and eliminating nonessential costs, designed to improve the Company’s cost structure. As additional restructuring opportunities may be identified, the Company does not have an estimated completion date or expected total cost estimate for the 2018 Restructuring Plan. The following table summarizes the activity included in Loss on disposal of assets and costs from exit and disposal activities recorded during the three months ended June 30, 2018 and 2017: Three Months Ended June 30, 2018 2017 (in thousands) Accelerated depreciation $ — $ 2,041 Plant severance (35 ) 641 Corporate severance — — Other restructuring activities 31 — Total 2018 Restructuring Plan activities $ (4 ) $ 2,682 Loss on other disposals and partial disposals of property, plant and equipment 1,108 741 Total loss on disposal of assets and costs from exit and disposal activities $ 1,104 $ 3,423 Approximately $2.7 million of the Total 2018 Restructuring Plan activities related to the Domestic reporting segment for the three months ended June 30, 2017, respectively. There were no 2018 Restructuring Plan activities related to the International reporting segment for the three months ended June 30, 2018 and 2017, respectively. A reconciliation of the beginning and ending amounts of restructuring liability related to the 2018 Restructuring Plan at June 30, 2018 and 2017 is as follows: Three Months Ended June 30, 2018 2017 (Amounts in thousands) (In thousands) Balance at the beginning of the period $ 3,901 $ — Expenses 55 — Non-cash expenses (59 ) — Payments (1,074 ) — Balance at the end of the period $ 2,823 $ — As of June 30, 2018 and March 31, 2018, the Company had $0.4 million and $0.5 million of long-term severance liability related to the restructuring activities recorded in Other liabilities in the Condensed Consolidated Balance Sheet. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 3. REVENUE RECOGNITION On April 1, 2018, the Company adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”), and all related amendments using the modified retrospective transition method. The adoption of ASC 606 did not impact the opening retained earnings balance or cause a material shift in the amount or timing of revenue recognition. Results for reporting periods beginning after April 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in a consistent manner with historical accounting policies. The Company generates revenue by selling pipe and related water management products primarily to distributors, retailers, buying groups and co-operative buying groups. Products are shipped predominately by the Company’s internal fleet, and the Company does not provide any additional revenue generating services after product delivery. Payment terms and conditions vary by contract. Revenue is recognized at the point in-time obligations under the terms of a contract with a customer are satisfied; generally upon the transfer of control of the promised goods. In substantially all of the Company’s contracts with customers, control is transferred to the customer upon delivery. The Company recognizes revenue in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Revenue is presented in the Condensed Consolidated Statements of Operations net of allowances for returns, rebates, discounts, and taxes collected concurrently with revenue-producing activities. Refer to “Note 13. Business Segments Information” for the Company’s disaggregation of Net sales by reportable segment. The disclosure of Net sales by reportable segment is aligned by geographical region and product type and best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Significant Judgments - The Company’s performance obligation under contracts with customers is to sell and deliver pipe and related water products. The Company’s contracts with customers may contain multiple performance obligations by promising to deliver multiple products to the customer. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company’s products are generally sold with a right of return, and the Company may provide credits or incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Variable consideration is estimated at contract inception and updated at the end of each reporting period as additional information becomes available and only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. 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 adoption of this standard resulted in the Company recording a contract asset for estimated inventory returns. On April 1, 2018, the estimated inventory returns resulted in a $0.6 million decrease in Receivables, net and a $0.6 million increase in Other current assets on the Company’s Consolidated Balance Sheets. The following table presents the balance of the Company’s contract asset and liability as of June 30, 2018 and April 1, 2018: June 30, 2018 April 1, 2018 (In thousands) Contract asset - product returns $ 674 $ 577 Refund liability 1,610 1,468 Practical Expedients and Exemptions - The Company expenses incremental costs to obtain a contract (e.g. sales commissions) when incurred as the amortization period would have been one year or less. These costs are recorded within selling expenses on the Condensed Consolidated Statements of Operations. The Company has elected the accounting policy election permitted by ASC 606 to account for shipping and handling costs as activities to fulfill the promise to transfer the goods when these activities are performed after a customer obtains control of the goods. Revenue will be recognized at the point of shipment. The Company has elected the accounting policy to exclude from the transaction price all sales taxes that are assessed by a governmental authority and that are imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer, for example, sales, use, value added, and some excise taxes. Further, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 4 . Inventories as of the periods presented consisted of the following: June 30, 2018 March 31, 2018 (In thousands) Raw materials $ 54,591 $ 54,909 Finished goods 207,130 208,883 Total inventories $ 261,721 $ 263,792 There were no work-in-process inventories as of the periods presented. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 5 . When applying fair value principles in the valuation of assets and liabilities, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company has not changed its valuation techniques used in measuring the fair value of any financial assets or liabilities during the fiscal years presented. The fair value estimates take into consideration the credit risk of both the Company and its counterparties. When active market quotes are not available for financial assets and liabilities, ADS uses industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including credit risk, interest rate curves, foreign currency rates and forward and spot prices for currencies. In circumstances where market-based observable inputs are not available, management judgment is used to develop assumptions to estimate fair value. Generally, the fair value of Level 3 instruments is estimated as the net present value of expected future cash flows based on internal and external inputs. Recurring Fair Value Measurements - The assets and liabilities carried at fair value as of the periods presented were as follows: June 30, 2018 Total Level 1 Level 2 Level 3 (In thousands) Assets: Derivative assets – diesel fuel contracts $ 818 $ — $ 818 $ — Interest rate swaps 3,414 — 3,414 — Total assets at fair value on a recurring basis $ 4,232 $ — $ 4,232 $ — Liabilities: Derivative liabilities – diesel fuel contracts $ 326 $ — $ 326 $ — Contingent consideration for acquisitions 460 — — 460 Total liabilities at fair value on a recurring basis $ 786 $ — $ 326 $ 460 March 31, 2018 Total Level 1 Level 2 Level 3 (In thousands) Assets: Derivative assets – diesel fuel contracts $ 596 $ — $ 596 $ — Interest rate swaps 2,801 — 2,801 — Total assets at fair value on a recurring basis $ 3,397 $ — $ 3,397 $ — Liabilities: Derivative liability - diesel fuel contracts $ 116 $ — $ 116 $ — Contingent consideration for acquisitions 578 — — 578 Total liabilities at fair value on a recurring basis $ 694 $ — $ 116 $ 578 For the three months ended June 30, 2018 and 2017, respectively, there were no transfers in or out of Levels 1, 2 or 3. Valuation of Contingent Consideration for Acquisitions - The fair values of the contingent consideration payables for acquisitions were calculated based on a discounted cash flow model, whereby the probability-weighted future payment value is discounted to the present value using a market discount rate. The method used to price these liabilities is considered Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value. Changes in the fair value of recurring fair value measurements using significant unobservable inputs (Level 3) for the periods presented were as follows: Three Months Ended June 30, 2018 2017 (In thousands) Balance at the beginning of the period $ 578 $ 1,348 Change in fair value 2 26 Payments of contingent consideration liability (120 ) (516 ) Balance at the end of the period $ 460 $ 858 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, or in the case of derivative instruments, because they are recorded at fair value. The carrying and fair value of the Company’s Senior Notes (discussed in “Note 12. Debt” in the Company’s Fiscal 2018 Form 10-K) were $125.0 million and $121.8 million, respectively, as of June 30, 2018 and $125.0 million and $122.3 million, respectively, at March 31, 2018. The fair value of the Senior Notes 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 Company believes the carrying amount on the remaining long-term debt, including the Secured Bank Term Loans, is not materially different from its fair value as the interest rates and terms of the borrowings are similar to currently available borrowings. The categorization of the framework used to evaluate this debt is considered Level 2. |
Derivative Transactions
Derivative Transactions | 3 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Derivative Transactions | 6 . DERIVATIVE TRANSACTIONS The Company uses interest rate swaps, commodity options in the form of collars and swaps, and foreign currency forward contracts to manage its various exposures to interest rate, commodity price fluctuations and foreign currency exchange rate fluctuations. For the interest rate swap executed on June 28, 2017, gains and losses resulting from the difference between the spot rate and applicable base rate is recorded in Interest expense. For collars, commodity swaps and foreign currency forward contracts, contract settlement gains and losses are recorded in the Condensed Consolidated Statements of Operations in Derivative gains and other income, net. Gains and losses related to mark-to-market adjustments for changes in fair value of the derivative contracts are also recorded in the Condensed Consolidated Statements of Operations in Derivative gains and other income, net. The Company recorded net losses and net (gains) on mark-to-market adjustments for changes in the fair value of derivatives contracts as well as net losses and net (gains) on the settlement of derivative contracts as follows: Three Months Ended June 30, 2018 2017 (in thousands) Diesel fuel option collars $ (12 ) $ 276 Interest rate swaps (613 ) (85 ) Total net unrealized mark-to-market (gains) losses $ (625 ) $ 191 Diesel fuel option collars (308 ) 52 Foreign exchange forward contracts (51 ) — Interest rate swaps (25 ) — Total net realized (gains) losses $ (384 ) $ 52 A summary of the fair value of derivatives is included in “Note 5. Fair Value Measurement.” |
Net Income Per Share and Stockh
Net Income Per Share and Stockholders' Equity | 3 Months Ended |
Jun. 30, 2018 | |
Net Income Per Share And Stockholders Equity [Abstract] | |
Stockholders Equity and Earnings Per Share [Text Block] | 7. The Company is required to apply the two-class method to compute both basic and diluted net income per share. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common stockholders. 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: Three Months Ended June 30, (In thousands, except per share data) 2018 2017 NET INCOME PER SHARE—BASIC: Net income attributable to ADS $ 32,280 $ 17,742 Adjustments for: Dividends to redeemable convertible preferred stockholders (497 ) (489 ) Dividends paid to unvested restricted stockholders (15 ) (19 ) Net income available to common stockholders and participating securities 31,768 17,234 Undistributed income allocated to participating securities (2,712 ) (1,429 ) Net income available to common stockholders – Basic $ 29,056 $ 15,805 Weighted average number of common shares outstanding – Basic 56,594 55,303 Net income per common share – Basic $ 0.51 $ 0.29 NET INCOME PER SHARE—DILUTED: Net income available to common stockholders – Diluted $ 29,056 $ 15,805 Weighted average number of common shares outstanding – Basic 56,594 55,303 Assumed exercise of stock options 564 707 Weighted average number of common shares outstanding – Diluted 57,158 56,010 Net income per common share – Diluted $ 0.51 $ 0.28 Potentially dilutive securities excluded as anti-dilutive 6,166 6,459 Stockholders’ Equity – During the three months ended June 30, 2017, the Company repurchased 0.4 million shares of common stock at a cost of $7.9 million. The Company did not repurchase any shares of common stock during the three months ended June 30, 2018. The repurchases were made under the Board of Directors’ authorization in February 2017 to repurchase up to $50 million of ADS common stock in accordance with applicable securities laws. As of June 30, 2018, approximately $42.1 million of common stock may be repurchased under the authorization. The repurchase program does not obligate the Company to acquire any particular amount of common stock, and may be suspended or terminated at any time at the Company’s discretion. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. ADS Mexicana - ADS conducts business in Mexico and Central America through its joint venture ADS Mexicana, S.A. de C.V. (together with its affiliate ADS Corporativo, 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. ADS Mexicana’s Revolving Credit Facility expired on June 22, 2018 and was replaced by an Intercompany Revolving Credit Promissory Note (the “Intercompany Note”) with a borrowing capacity of $12.0 million. The Intercompany Note matures on June 22, 2022. The other joint venture partner indemnifies the Company for 49% of any unpaid borrowing. The interest rates under the Intercompany Note are determined by certain base rates or London Interbank Offered Rate (“LIBOR”) plus an applicable margin based on the Leverage Ratio. As of June 30, 2018 there were no borrowings 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 facility, and the debt guarantee is shared equally with the joint venture partner. The Company’s maximum potential obligation under this guarantee is $11.0 million as of June 30, 2018. The maximum borrowings permitted under the South American Joint Venture’s credit facility are $22.0 million. This credit facility allows borrowings in either Chilean pesos or US dollars at a fixed interest rate determined at inception of each draw on the facility. The guarantee of the South American Joint Venture’s debt expires on December 31, 2020. ADS does not anticipate any required contributions related to the balance of this credit facility. As of June 30, 2018 and March 31, 2018, the outstanding principal balances of the credit facility including letters of credit were $13.4 million and $14.5 million, respectively. As of June 30, 2018, there were no U.S. dollar denominated loans. The weighted average interest rate as of June 30, 2018 was 5.7% on Chilean peso denominated loans. ADS and the South American Joint Venture have shared services arrangements in order to execute the joint venture services. In addition, the South American Joint Venture has entered into agreements for pipe sales with ADS and its other related parties, which totaled $0.6 million and $0.6 million for the three months ended June 30, 2018 and 2017, respectively. ADS pipe sales to the South American Joint Venture were $0.2 million and $0.1 million for the three months ended June 30, 2018 and 2017, respectively. BaySaver - BaySaver Technologies LLC (“BaySaver”) is a joint venture that was established to produce and distribute water quality filters and separators used in the removal of sediment and pollution from storm water. ADS owns 65% of the outstanding stock of BaySaver and consolidates its interest in BaySaver. ADS and BaySaver have entered into shared services arrangements in order to execute the joint venture services. Included within these arrangements are the lease of a plant and adjacent yard used to conduct business and operating expenses related to the leased facility. Tigre-ADS USA - Tigre-ADS USA was a joint venture established to manufacture and sell PVC fittings for waterworks, plumbing, and HVAC applications primarily in the United States and Canadian markets. In April 2018, the Company and the joint venture partner agreed to exchange the Company’s shares of Tigre-ADS USA for a release from the existing debt guarantees. Following the exchange, the Company no longer has an ownership interest in Tigre-ADS USA. As of June 30, 2018, ADS is the guarantor of 49% of a specific Tigre-ADS USA credit facility. The Company’s maximum potential obligation under this guarantee was $1.2 million as of June 30, 2018. The Company was released from the guarantee of Tigre-ADS USA’s debt on July 12, 2018. ADS purchased $0.5 million and $0.6 million of Tigre-ADS USA manufactured products for use in the production of ADS products during the three months ended June 30, 2018 and 2017. |
Debt
Debt | 3 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 9. Long-term debt as of the periods presented consisted of the following: June 30, 2018 March 31, 2018 (In thousands) Secured Bank Term Loans: Revolving Credit Facility — ADS $ 179,200 $ 171,500 Revolving Credit Facility — ADS Mexicana — — Senior Notes payable 125,000 125,000 Industrial revenue bonds 710 940 Equipment financing 3,111 3,336 Total 308,021 300,776 Unamortized debt issuance costs (2,837 ) (3,028 ) Current maturities (26,623 ) (26,848 ) Long-term debt obligation $ 278,561 $ 270,900 Events Related to the Secured Bank Term Loans - On June 22, 2018, the Company’s $12.0 million Revolving Credit Facility – ADS Mexicana matured. At June 22, 2018, there were no borrowings under the Revolving Credit Facility – ADS Mexicana. Fiscal 2019 Amendment to the Secured Bank Term Loans – On July 9, 2018, the Company amended the Second Amended and Restated Credit (the “Credit Agreement”) and the Second Amended and Restated Private Shelf Agreement (the “Private Shelf Agreement”) to amend the definition of Consolidated EBITDA and changed the timing of the quarterly rate adjustments. In addition, the amendment to the Credit Agreement clarified the process of a transition to replace LIBOR which is being phased out. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. COMMITMENTS AND CONTINGENCIES Purchase Commitments – The Company secures supplies of resin raw material by agreeing to purchase quantities during a future given period at a fixed price. These purchase contracts typically range from 1 to 12 months and occur in the ordinary course of business. Under such noncancelable purchase contracts in place at June 30, 2018, the Company has agreed to purchase resin over the period July 2018 through December 2018 at a committed purchase cost of $8.9 million. Litigation and Other Proceedings – As previously disclosed in the Company’s Fiscal 2018 Form 10-K, the Company’s historical accounting practices were the subject of an investigation by SEC’s Division of Enforcement (the “Enforcement Division”), which began in August 2015. That matter was resolved on July 10, 2018 via a settlement between the Company and the SEC. Pursuant to the settlement, the Company consented to the entry of an administrative order without admitting or denying the findings therein. The order required the Company to cease and desist from committing or causing any violations and any future violations of certain provisions of the federal securities laws and the rules promulgated thereunder and to pay a civil monetary penalty of $1.0 million, which payment has been made. The Company previously accrued an expense for the penalty amount during Fiscal 2018. 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax Act significantly revises the future ongoing U.S. corporate income tax by, among other things, lowering the U.S. corporate income tax rate from 35% to 21%, full expensing on qualified property, eliminates the domestic manufacturing deduction and implements a territorial tax system. The 21% U.S. corporate income tax rate was effective January 1, 2018. The Company has recognized the provisional tax impacts related to revaluation of deferred tax assets and liabilities and deemed repatriated earnings and included these amounts in its financial statements for the year ended March 31, 2018. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act. During the three months ended June 30, 2018, the Company did not make any adjustments to its provisional amounts included in its Consolidated Financial Statements for the year ended March 31, 2018. The accounting is expected to be finalized in conjunction with the filing of the fiscal 2018 U.S. corporate income tax return, no later than the close of third quarter fiscal 2019. 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 onetime charges, as well as discrete events. For the three months ended June 30, 2018 and 2017, the Company utilized an effective tax rate of 29.7% and 34.8%, respectively, to calculate its provision for income taxes. These rates are higher than the federal statutory rate primarily due to state and local income taxes and the Company’s Employee Stock Ownership Plan (“ESOP”). In addition, the effective tax rate for the three months ended June 30, 2017 differed from the federal statutory rate due to the impact of a $1.0 million discrete income tax benefit related to the release of tax reserves. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 12. ADS has several programs for stock-based payments to employees and non-employee members of its Board of Directors, including stock options and restricted stock. Equity-classified restricted stock awards are measured based on the grant-date estimated fair value of each award. The Company accounts for all restricted stock granted to Directors as equity-classified awards. The Company recognized stock-based compensation expense in the following line items of the Condensed Consolidated Statements of Operations for the three months ended June 30, 2018 and 2017: Three Months Ended June 30, 2018 2017 (in thousands) Component of income before income taxes: Cost of goods sold $ 62 $ 45 Selling expenses 36 25 General and administrative expenses 1,461 1,620 Total stock-based compensation expense $ 1,559 $ 1,690 The following table summarizes stock-based compensation expense by award type for the three months ended June 30, 2018 and 2017: Three Months Ended June 30, 2018 2017 (in thousands) Stock-based compensation expense: Equity-classified Stock Options $ 773 $ 1,084 Restricted Stock 543 368 Non-Employee Directors 243 238 Total stock-based compensation expense $ 1,559 $ 1,690 2017 Omnibus Plan On May 24, 2017, the Board of Directors approved the 2017 Omnibus Incentive Plan (the “2017 Incentive Plan”) which was approved by the Company’s stockholders on July 17, 2017. The 2017 Incentive Plan provides for the issuance of a maximum of 3.5 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. During the three months ended June 30, 2018, the Company granted 0.1 million shares of restricted stock. The grant date fair value of the restricted stock was $2.3 million. Performance Units - Options – During the three months ended June 30, 2018, the Company granted 0.2 million nonqualified stock options under the 2017 Incentive Plan. The grant date fair value of the nonqualified stock options was $1.9 million. The Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The following table summarizes the assumptions used in estimate the fair value of stock-options during the three months ended June 30, 2018: Three Months Ended June 30, 2018 Common stock price $25.75 Expected stock price volatility 30.5% Risk-free interest rate 2.9% Weighted-average expected option life (years) 6.0 Dividend yield 1.2% |
Business Segments Information
Business Segments Information | 3 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segments Information | 13. The Company operates its business in two distinct operating and reportable segments based on the markets it serves: “Domestic” and “International.” The Chief Operating Decision Maker (“CODM”) evaluates segment reporting based on Net sales and Segment Adjusted EBITDA. The Company calculates Segment Adjusted EBITDA as net income or loss before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other expenses. Beginning, April 1, 2018, the Company revised its allocation of allowances for returns, rebates, and discounts between Pipe and Allied Products for segment reporting purposes. Prior to April 1, 2018, the Company allocated substantially all returns, rebates, and discounts to Pipe net sales. These changes did not impact the Company’s previously reported consolidated financial results. The prior period segment results and related disclosures have been recast to conform to the current year presentation under the new allocation methodology. 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: Three Months Ended June 30, 2018 2017 (In thousands) Domestic Pipe $ 242,026 $ 228,623 Allied Products 100,472 90,874 Total domestic 342,498 319,497 International Pipe 34,448 29,954 Allied Products 10,901 8,908 Total international 45,349 38,862 Total Net sales $ 387,847 $ 358,359 The following sets forth certain additional financial information attributable to the reportable segments for the periods presented: Domestic International Total (In thousands) For the three months ended June 30, 2018 Net sales $ 342,498 $ 45,349 $ 387,847 Segment Adjusted EBITDA 68,832 6,311 75,143 Interest expense 3,757 45 3,802 Income tax expense 13,257 1,027 14,284 Depreciation and amortization 15,953 1,874 17,827 Equity in net loss of unconsolidated affiliates — 133 133 Capital expenditures 5,881 993 6,874 For the three months ended June 30, 2017 Net sales $ 319,497 $ 38,862 $ 358,359 Segment Adjusted EBITDA 55,089 5,256 60,345 Interest expense 4,385 94 4,479 Income tax expense 9,515 231 9,746 Depreciation and amortization 16,263 1,958 18,221 Equity in net loss (income) of unconsolidated affiliates 218 (466 ) (248 ) Capital expenditures 17,108 841 17,949 The following sets forth certain additional financial information attributable to the reportable segments as of the periods presented: June 30, 2018 March 31, 2018 (In thousands) Investments in unconsolidated affiliates International $ 11,028 $ 12,343 Total $ 11,028 $ 12,343 Total identifiable assets Domestic $ 963,346 $ 904,718 International 145,746 142,822 Eliminations (18,186 ) (4,298 ) Total $ 1,090,906 $ 1,043,242 The following reconciles segment adjusted EBITDA to net income for the periods presented: For the Three Months Ended June 30, 2018 2017 Domestic International Domestic International (In thousands) Reconciliation of Segment Adjusted EBITDA: Net income $ 30,589 $ 3,062 $ 15,150 $ 3,324 Depreciation and amortization 15,953 1,874 16,263 1,958 Interest expense 3,757 45 4,385 94 Income tax expense 13,257 1,027 9,515 231 Segment EBITDA 63,556 6,008 45,313 5,607 Derivative fair value adjustments (12 ) — 191 — Foreign currency transaction gains — (171 ) — (869 ) Loss on disposal of assets and costs from exit and disposal activities 1,009 95 3,319 104 Unconsolidated affiliates interest, tax, depreciation and amortization (a) — 379 294 414 Contingent consideration remeasurement 2 — 26 — Stock-based compensation expense 1,559 — 1,690 — ESOP deferred stock-based compensation 4,021 — 2,614 — Executive retirement (benefit) expense (328 ) — 15 — Restatement-related (benefit) costs (b) (1,231 ) — 1,460 — Transaction costs (c) 256 — 167 — Segment Adjusted EBITDA $ 68,832 $ 6,311 $ 55,089 $ 5,256 (a) Includes the proportional share of interest, income taxes, depreciation and amortization related to the South American Joint Venture and the former Tigre-ADS USA joint venture, which are accounted for under the equity method of accounting. (b) Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with the restatement of the prior period financial statements as reflected in the fiscal year 2015 Form 10-K and fiscal year 2016 Form 10-K/A. The benefit recognized in fiscal 2019 is the result of insurance proceeds received in fiscal 2019. (c) Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with the debt refinancing and asset acquisitions and dispositions. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Dividends on Common Stock - During the second quarter of fiscal 2019, the Company declared a quarterly cash dividend of $0.08 per share of common stock. The dividend is payable on September 14, 2018 to stockholders of record at the close of business on August 31, 2018. |
Background and Summary of Sig24
Background and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2018 | |
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, 2018 was derived from audited financial statements included in the Annual Report on Form 10-K for the year ended March 31, 2018 (“Fiscal 2018 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 June 30, 2018 and the results of operations and cash flows for the three months ended June 30, 2018. 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 2018 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 loss (income) of unconsolidated affiliates in the Condensed Consolidated Statements of Operations. All intercompany balances and transactions have been eliminated in consolidation. |
Recent Accounting Guidance | Recent Accounting Guidance Recently Adopted Accounting Guidance Revenue Recognition - In May 2014, the FASB issued an accounting standards update (“ASU”) which amends the guidance for revenue recognition. This amendment contains principles that will require an entity to recognize revenue to depict the transfer of goods and services to customers at an amount that an entity expects to be entitled to in exchange for goods or services. The amendment sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations and recognizing the revenue upon satisfaction of performance obligations. In August 2015, the FASB issued an additional accounting standards update that deferred the effective date of the new revenue standard for public entities to periods beginning after December 15, 2017, with early adoption permitted but not earlier than the original effective date of periods beginning after December 15, 2016. There have also been various additional accounting standards updates issued by the FASB in 2016 that further amend this new revenue standard. The updated standard permits the use of either the retrospective or cumulative effect transition method. The Company adopted these standards on April 1, 2018 using the modified retrospective transition method. See “Note 3. Revenue Recognition” for further information on the adoption of the revenue recognition ASU. Cash Flow Classification - In August 2016, the FASB issued an ASU which provides amended guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, including related to debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance and distributions received from equity method investees. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, and early adoption is permitted. This amended guidance must be applied retrospectively to all periods presented, but may be applied prospectively if retrospective application would be impracticable. The Company adopted this update effective April 1, 2018 using the retrospective method. The new standard did not have a material impact on the Condensed Consolidated Financial Statements. Goodwill Impairment - In January 2017, the FASB issued an ASU which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the standards update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The amendments are effective for annual periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted this update effective April 1, 2018. The new standard did not have an impact on the Condensed Consolidated Financial Statements. Definition of a Business - In January 2017, the FASB issued an ASU to clarify the definition of a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a more robust framework to use in determining when a set of assets and activities is a business. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company adopted this update effective April 1, 2018. The new standard did not have an impact on the Condensed Consolidated Financial Statements. Stock-Based Compensation - In May 2017, the FASB issued an ASU to clarify when modification accounting should be applied for changes to the terms or conditions of share-based payment awards. The amendments clarify that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company adopted this update effective April 1, 2018. The new standard did not have an impact on the Condensed Consolidated Financial Statements. Recent Accounting Guidance Not Yet Adopted Leases - In February 2016, the FASB issued an ASU which amends the guidance for leases. This standard contains principles that will require an entity to recognize most leases on the balance sheet by recording a right-of-use asset and a lease liability, unless the lease is a short-term lease that has an accounting lease term of twelve months or less. The standard also contains other changes to the current lease guidance that may result in changes to how entities determine which contractual arrangements qualify as a lease, the accounting for executory costs such as property taxes and insurance, as well as which lease origination costs will be capitalizable. The new standard also requires expanded quantitative and qualitative disclosures. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, and early adoption is permitted. The standard requires the use of the modified retrospective transition method, whereby the new guidance will be applied at the beginning of the earliest period presented in the financial statements of the period of adoption. The modified retrospective transition approach includes certain practical expedients that entities may elect to apply in transition. The Company expects to adopt this standard effective April 1, 2019. The Company has implemented a new software solution to improve the process of tracking and accounting for leases under the current and new standards. The Company has not yet determined whether to apply any of the available practical expedients. The Company is in the process of reviewing contracts under the new standard to determine the impact the new standard will have on the Condensed Consolidated Financial Statements. Measurement of Credit Losses - In June 2016, the FASB issued an ASU which provides amended guidance on the measurement of credit losses on financial instruments, including trade receivables. This standard requires the use of an impairment model referred to as the current expected credit loss model. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, and early adoption is permitted for fiscal years beginning after December 15, 2018. The Company expects to adopt this standard effective April 1, 2020. The Company is currently evaluating the impact of this standard on the Condensed Consolidated Financial Statements. Hedge Accounting – In August 2017, the FASB issued an ASU which expands an entity’s ability to apply hedge accounting for non-financial and financial risk components and provides a simplified approach for fair value hedging of interest rate risk. The standard also refines how entities assess hedge effectiveness. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, and early adoption is permitted. The Company expects to adopt this standard effective April 1, 2019. The Company is currently evaluating the impact of this standard on the Condensed Consolidated Financial Statements. With the exception of the pronouncements described above, there have been no new accounting pronouncements issued or adopted since the filing of the Fiscal 2018 Form 10-K that have significance, or potential significance, to the Condensed Consolidated Financial Statements. |
Loss on Disposal of Assets an25
Loss on Disposal of Assets and Costs from Exit and Disposal Activities (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Loss on Disposal of Assets and Costs from Exit and Disposal Activities | The following table summarizes the activity included in Loss on disposal of assets and costs from exit and disposal activities recorded during the three months ended June 30, 2018 and 2017: Three Months Ended June 30, 2018 2017 (in thousands) Accelerated depreciation $ — $ 2,041 Plant severance (35 ) 641 Corporate severance — — Other restructuring activities 31 — Total 2018 Restructuring Plan activities $ (4 ) $ 2,682 Loss on other disposals and partial disposals of property, plant and equipment 1,108 741 Total loss on disposal of assets and costs from exit and disposal activities $ 1,104 $ 3,423 |
Schedule of Reconciliation of Restructuring Liability | A reconciliation of the beginning and ending amounts of restructuring liability related to the 2018 Restructuring Plan at June 30, 2018 and 2017 is as follows: Three Months Ended June 30, 2018 2017 (Amounts in thousands) (In thousands) Balance at the beginning of the period $ 3,901 $ — Expenses 55 — Non-cash expenses (59 ) — Payments (1,074 ) — Balance at the end of the period $ 2,823 $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and April 1, 2018: June 30, 2018 April 1, 2018 (In thousands) Contract asset - product returns $ 674 $ 577 Refund liability 1,610 1,468 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of the periods presented consisted of the following: June 30, 2018 March 31, 2018 (In thousands) Raw materials $ 54,591 $ 54,909 Finished goods 207,130 208,883 Total inventories $ 261,721 $ 263,792 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Carried at Fair Value | The assets and liabilities carried at fair value as of the periods presented were as follows: June 30, 2018 Total Level 1 Level 2 Level 3 (In thousands) Assets: Derivative assets – diesel fuel contracts $ 818 $ — $ 818 $ — Interest rate swaps 3,414 — 3,414 — Total assets at fair value on a recurring basis $ 4,232 $ — $ 4,232 $ — Liabilities: Derivative liabilities – diesel fuel contracts $ 326 $ — $ 326 $ — Contingent consideration for acquisitions 460 — — 460 Total liabilities at fair value on a recurring basis $ 786 $ — $ 326 $ 460 March 31, 2018 Total Level 1 Level 2 Level 3 (In thousands) Assets: Derivative assets – diesel fuel contracts $ 596 $ — $ 596 $ — Interest rate swaps 2,801 — 2,801 — Total assets at fair value on a recurring basis $ 3,397 $ — $ 3,397 $ — Liabilities: Derivative liability - diesel fuel contracts $ 116 $ — $ 116 $ — Contingent consideration for acquisitions 578 — — 578 Total liabilities at fair value on a recurring basis $ 694 $ — $ 116 $ 578 |
Summary of Changes in Fair Value of Recurring Fair Value Measurements Using Unobservable Inputs | Changes in the fair value of recurring fair value measurements using significant unobservable inputs (Level 3) for the periods presented were as follows: Three Months Ended June 30, 2018 2017 (In thousands) Balance at the beginning of the period $ 578 $ 1,348 Change in fair value 2 26 Payments of contingent consideration liability (120 ) (516 ) Balance at the end of the period $ 460 $ 858 |
Derivative Transactions (Tables
Derivative Transactions (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash Settlements and Net Losses and Net (Gains) on Mark-to-Market Adjustments for Changes in Fair Value of Derivative Contracts | The Company recorded net losses and net (gains) on mark-to-market adjustments for changes in the fair value of derivatives contracts as well as net losses and net (gains) on the settlement of derivative contracts as follows: Three Months Ended June 30, 2018 2017 (in thousands) Diesel fuel option collars $ (12 ) $ 276 Interest rate swaps (613 ) (85 ) Total net unrealized mark-to-market (gains) losses $ (625 ) $ 191 Diesel fuel option collars (308 ) 52 Foreign exchange forward contracts (51 ) — Interest rate swaps (25 ) — Total net realized (gains) losses $ (384 ) $ 52 |
Net Income Per Share and Stoc30
Net Income Per Share and Stockholders' Equity (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
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: Three Months Ended June 30, (In thousands, except per share data) 2018 2017 NET INCOME PER SHARE—BASIC: Net income attributable to ADS $ 32,280 $ 17,742 Adjustments for: Dividends to redeemable convertible preferred stockholders (497 ) (489 ) Dividends paid to unvested restricted stockholders (15 ) (19 ) Net income available to common stockholders and participating securities 31,768 17,234 Undistributed income allocated to participating securities (2,712 ) (1,429 ) Net income available to common stockholders – Basic $ 29,056 $ 15,805 Weighted average number of common shares outstanding – Basic 56,594 55,303 Net income per common share – Basic $ 0.51 $ 0.29 NET INCOME PER SHARE—DILUTED: Net income available to common stockholders – Diluted $ 29,056 $ 15,805 Weighted average number of common shares outstanding – Basic 56,594 55,303 Assumed exercise of stock options 564 707 Weighted average number of common shares outstanding – Diluted 57,158 56,010 Net income per common share – Diluted $ 0.51 $ 0.28 Potentially dilutive securities excluded as anti-dilutive 6,166 6,459 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt as of the periods presented consisted of the following: June 30, 2018 March 31, 2018 (In thousands) Secured Bank Term Loans: Revolving Credit Facility — ADS $ 179,200 $ 171,500 Revolving Credit Facility — ADS Mexicana — — Senior Notes payable 125,000 125,000 Industrial revenue bonds 710 940 Equipment financing 3,111 3,336 Total 308,021 300,776 Unamortized debt issuance costs (2,837 ) (3,028 ) Current maturities (26,623 ) (26,848 ) Long-term debt obligation $ 278,561 $ 270,900 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [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 three months ended June 30, 2018 and 2017: Three Months Ended June 30, 2018 2017 (in thousands) Component of income before income taxes: Cost of goods sold $ 62 $ 45 Selling expenses 36 25 General and administrative expenses 1,461 1,620 Total stock-based compensation expense $ 1,559 $ 1,690 The following table summarizes stock-based compensation expense by award type for the three months ended June 30, 2018 and 2017: Three Months Ended June 30, 2018 2017 (in thousands) Stock-based compensation expense: Equity-classified Stock Options $ 773 $ 1,084 Restricted Stock 543 368 Non-Employee Directors 243 238 Total stock-based compensation expense $ 1,559 $ 1,690 |
Summary of Assumption Used in Estimate Fair Value of Stock Options | The following table summarizes the assumptions used in estimate the fair value of stock-options during the three months ended June 30, 2018: Three Months Ended June 30, 2018 Common stock price $25.75 Expected stock price volatility 30.5% Risk-free interest rate 2.9% Weighted-average expected option life (years) 6.0 Dividend yield 1.2% |
Business Segments Information (
Business Segments Information (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
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: Three Months Ended June 30, 2018 2017 (In thousands) Domestic Pipe $ 242,026 $ 228,623 Allied Products 100,472 90,874 Total domestic 342,498 319,497 International Pipe 34,448 29,954 Allied Products 10,901 8,908 Total international 45,349 38,862 Total Net sales $ 387,847 $ 358,359 |
Schedule of Additional Financial Information Attributable to Reportable Segments | The following sets forth certain additional financial information attributable to the reportable segments for the periods presented: Domestic International Total (In thousands) For the three months ended June 30, 2018 Net sales $ 342,498 $ 45,349 $ 387,847 Segment Adjusted EBITDA 68,832 6,311 75,143 Interest expense 3,757 45 3,802 Income tax expense 13,257 1,027 14,284 Depreciation and amortization 15,953 1,874 17,827 Equity in net loss of unconsolidated affiliates — 133 133 Capital expenditures 5,881 993 6,874 For the three months ended June 30, 2017 Net sales $ 319,497 $ 38,862 $ 358,359 Segment Adjusted EBITDA 55,089 5,256 60,345 Interest expense 4,385 94 4,479 Income tax expense 9,515 231 9,746 Depreciation and amortization 16,263 1,958 18,221 Equity in net loss (income) of unconsolidated affiliates 218 (466 ) (248 ) Capital expenditures 17,108 841 17,949 The following sets forth certain additional financial information attributable to the reportable segments as of the periods presented: June 30, 2018 March 31, 2018 (In thousands) Investments in unconsolidated affiliates International $ 11,028 $ 12,343 Total $ 11,028 $ 12,343 Total identifiable assets Domestic $ 963,346 $ 904,718 International 145,746 142,822 Eliminations (18,186 ) (4,298 ) Total $ 1,090,906 $ 1,043,242 |
Schedule of Reconciliation of Segment Adjusted EBITDA to Net Income | The following reconciles segment adjusted EBITDA to net income for the periods presented: For the Three Months Ended June 30, 2018 2017 Domestic International Domestic International (In thousands) Reconciliation of Segment Adjusted EBITDA: Net income $ 30,589 $ 3,062 $ 15,150 $ 3,324 Depreciation and amortization 15,953 1,874 16,263 1,958 Interest expense 3,757 45 4,385 94 Income tax expense 13,257 1,027 9,515 231 Segment EBITDA 63,556 6,008 45,313 5,607 Derivative fair value adjustments (12 ) — 191 — Foreign currency transaction gains — (171 ) — (869 ) Loss on disposal of assets and costs from exit and disposal activities 1,009 95 3,319 104 Unconsolidated affiliates interest, tax, depreciation and amortization (a) — 379 294 414 Contingent consideration remeasurement 2 — 26 — Stock-based compensation expense 1,559 — 1,690 — ESOP deferred stock-based compensation 4,021 — 2,614 — Executive retirement (benefit) expense (328 ) — 15 — Restatement-related (benefit) costs (b) (1,231 ) — 1,460 — Transaction costs (c) 256 — 167 — Segment Adjusted EBITDA $ 68,832 $ 6,311 $ 55,089 $ 5,256 (a) Includes the proportional share of interest, income taxes, depreciation and amortization related to the South American Joint Venture and the former Tigre-ADS USA joint venture, which are accounted for under the equity method of accounting. (b) Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with the restatement of the prior period financial statements as reflected in the fiscal year 2015 Form 10-K and fiscal year 2016 Form 10-K/A. The benefit recognized in fiscal 2019 is the result of insurance proceeds received in fiscal 2019. (c) Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with the debt refinancing and asset acquisitions and dispositions. |
Background and Summary of Sig34
Background and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended |
Jun. 30, 2018Segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 2 |
Loss on Disposal of Assets an35
Loss on Disposal of Assets and Costs from Exit and Disposal Activities - Additional Information (Detail) | 3 Months Ended | ||
Jun. 30, 2018USD ($)Facility | Jun. 30, 2017USD ($) | Mar. 31, 2018USD ($) | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Number of manufacturing facilities closed | Facility | 2 | ||
Restructuring plan activities | $ (4,000) | $ 2,682,000 | |
Other Accrued Liabilities and Other Liabilities [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Severance liability related to restructuring plan | 400,000 | $ 500,000 | |
2018 Restructuring Plan [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Restructuring plan activities | 55,000 | ||
Domestic [Member] | 2018 Restructuring Plan [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Restructuring plan activities | 2,700,000 | ||
International Segment [Member] | 2018 Restructuring Plan [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Restructuring plan activities | $ 0 | $ 0 |
Loss on Disposal of Assets an36
Loss on Disposal of Assets and Costs from Exit and Disposal Activities - Summary of Loss on Disposal of Assets and Costs from Exit and Disposal Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Discontinued Operations And Disposal Groups [Abstract] | ||
Accelerated depreciation | $ 2,041 | |
Plant severance | $ (35) | 641 |
Other restructuring activities | 31 | |
Total 2018 Restructuring Plan activities | (4) | 2,682 |
Loss on other disposals and partial disposals of property, plant and equipment | 1,108 | 741 |
Total loss on disposal of assets and costs from exit and disposal activities | $ 1,104 | $ 3,423 |
Loss on Disposal of Assets an37
Loss on Disposal of Assets and Costs from Exit and Disposal Activities - Schedule of Reconciliation of Restructuring Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Expenses | $ (4) | $ 2,682 |
2018 Restructuring Plan [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Balance at the beginning of the period | 3,901 | |
Expenses | 55 | |
Non-cash expenses | (59) | |
Payments | (1,074) | |
Balance at the end of the period | $ 2,823 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Receivables (less allowance for doubtful accounts of $6,968 and $6,826, respectively) | $ 228,905 | $ 171,961 |
Other current assets | $ 8,740 | 5,113 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Receivables (less allowance for doubtful accounts of $6,968 and $6,826, respectively) | 600 | |
Other current assets | $ 600 |
Schedule of Contract Asset and
Schedule of Contract Asset and Liability (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Contract With Customer Asset And Liability [Abstract] | ||
Contract asset - product returns | $ 674 | $ 577 |
Refund liability | $ 1,610 | $ 1,468 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 54,591 | $ 54,909 |
Finished goods | 207,130 | 208,883 |
Total inventories | $ 261,721 | $ 263,792 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Work-in-process inventories | $ 0 | $ 0 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Assets and Liabilities Carried at Fair Value (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | $ 4,232 | $ 3,397 |
Contingent consideration for acquisitions | 460 | 578 |
Total liabilities at fair value on a recurring basis | 786 | 694 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 4,232 | 3,397 |
Total liabilities at fair value on a recurring basis | 326 | 116 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration for acquisitions | 460 | 578 |
Total liabilities at fair value on a recurring basis | 460 | 578 |
Diesel Fuel Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 818 | 596 |
Derivative liability | 326 | 116 |
Diesel Fuel Contracts [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 818 | 596 |
Derivative liability | 326 | 116 |
Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 3,414 | 2,801 |
Interest Rate Swaps [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 3,414 | $ 2,801 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets and liabilities, additional transfers | $ 0 | $ 0 | |
Senior Notes Payable [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior notes | 125,000,000 | $ 125,000,000 | |
Senior notes, fair value | $ 121,800,000 | $ 122,300,000 |
Fair Value Measurement - Summ44
Fair Value Measurement - Summary of Changes in Fair Value of Recurring Fair Value Measurements Using Unobservable Inputs (Detail) - Level 3 [Member] - Contingent Consideration [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance beginning | $ 578 | $ 1,348 |
Change in fair value | 2 | 26 |
Payments of contingent consideration liability | (120) | (516) |
Balance ending | $ 460 | $ 858 |
Derivative Transactions - Sched
Derivative Transactions - Schedule of Cash Settlements and Net Losses and Net (Gains) on Mark-to-Market Adjustments for Changes in Fair Value of Derivative Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Derivatives, Fair Value [Line Items] | ||
Total net unrealized mark-to-market (gains) losses | $ (625) | $ 191 |
Total net realized (gains) losses | (384) | 52 |
Diesel Fuel Option Collars [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net unrealized mark-to-market (gains) losses | (12) | 276 |
Total net realized (gains) losses | (308) | 52 |
Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net unrealized mark-to-market (gains) losses | (613) | $ (85) |
Total net realized (gains) losses | (25) | |
Foreign Exchange Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net realized (gains) losses | $ (51) |
Net Income Per Share and Stoc46
Net Income Per Share and Stockholders' Equity - Summary of Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
NET INCOME PER SHARE—BASIC: | ||
Net income attributable to ADS | $ 32,280 | $ 17,742 |
Dividends to redeemable convertible preferred stockholders | (497) | (489) |
Dividends paid to unvested restricted stockholders | (15) | (19) |
Net income available to common stockholders and participating securities | 31,768 | 17,234 |
Undistributed income allocated to participating securities | (2,712) | (1,429) |
Net income available to common stockholders – Basic | $ 29,056 | $ 15,805 |
Weighted average number of common shares outstanding – Basic | 56,594 | 55,303 |
Net income per common share – Basic | $ 0.51 | $ 0.29 |
NET INCOME PER SHARE—DILUTED: | ||
Net income available to common stockholders – Diluted | $ 29,056 | $ 15,805 |
Weighted average number of common shares outstanding – Basic | 56,594 | 55,303 |
Assumed exercise of stock options | 564 | 707 |
Weighted average number of common shares outstanding – Diluted | 57,158 | 56,010 |
Net income per common share – Diluted | $ 0.51 | $ 0.28 |
Potentially dilutive securities excluded as anti-dilutive | 6,166 | 6,459 |
Net Income Per Share and Stoc47
Net Income Per Share and Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Feb. 28, 2017 | |
Equity Class Of Treasury Stock [Line Items] | |||
Repurchases of common stock | $ 7,947 | ||
Stock repurchase program amount authorized | $ 50,000 | ||
Common Stock [Member] | |||
Equity Class Of Treasury Stock [Line Items] | |||
Common stock repurchases, Shares | 0 | 0.4 | |
Repurchases of common stock | $ 0 | $ 7,900 | |
Stock repurchase program amount authorized | $ 42,100 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | |
South American Joint Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Company's ownership percentage | 50.00% | ||
Maximum borrowings permitted under credit facility | $ 22,000,000 | ||
Debt, expiration date | Dec. 31, 2020 | ||
Percentage of debt guarantee | 50.00% | ||
Maximum potential payment under guarantee | $ 11,000,000 | ||
Outstanding letters of credit | 13,400,000 | $ 14,500,000 | |
Sales with related parties | 600,000 | $ 600,000 | |
Sale with joint ventures | 200,000 | 100,000 | |
South American Joint Venture [Member] | US Dollar Denominated Loans [Member] | |||
Related Party Transaction [Line Items] | |||
Outstanding letters of credit | $ 0 | ||
South American Joint Venture [Member] | Chilean Peso Denominated Loans [Member] | |||
Related Party Transaction [Line Items] | |||
Weighted average interest rate | 5.70% | ||
BaySaver [Member] | |||
Related Party Transaction [Line Items] | |||
Company's ownership percentage | 65.00% | ||
Tigre-ADS USA [Member] | |||
Related Party Transaction [Line Items] | |||
Debt, expiration date | Jul. 12, 2018 | ||
Percentage of debt guarantee | 49.00% | ||
Maximum potential payment under guarantee | $ 1,200,000 | ||
Purchases from related party | 500,000 | $ 600,000 | |
Corporate Joint Venture | |||
Related Party Transaction [Line Items] | |||
Maximum borrowings permitted under credit facility | $ 12,000 | ||
Revolving credit facility maturity date | Jun. 22, 2018 | ||
Debt, expiration date | Jun. 22, 2022 | ||
Percentage of ownership in joint venture | 49.00% | ||
Remaining borrowing capacity | $ 0 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||
Related Party Transaction [Line Items] | |||
Company's ownership percentage | 51.00% |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) | Jun. 30, 2018 | Jun. 22, 2018 | Mar. 31, 2018 |
Debt Instrument [Line Items] | |||
Total | $ 308,021,000 | $ 300,776,000 | |
Unamortized debt issuance costs | (2,837,000) | (3,028,000) | |
Current maturities | (26,623,000) | (26,848,000) | |
Long-term debt obligation | 278,561,000 | 270,900,000 | |
Equipment Financing [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 3,111,000 | 3,336,000 | |
ADS [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 179,200,000 | 171,500,000 | |
ADS Mexicana [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 0 | ||
Senior Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes | 125,000,000 | 125,000,000 | |
Industrial Revenue Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Industrial revenue bonds | $ 710,000 | $ 940,000 |
Debt (Secured Bank Term Loans)
Debt (Secured Bank Term Loans) - Additional Information (Detail) - USD ($) | Jun. 22, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Debt Instrument [Line Items] | |||
Payments on Revolving Credit Facility | $ 93,700,000 | $ 155,750,000 | |
Revolving Credit Facility [Member] | ADS Mexicana [Member] | |||
Debt Instrument [Line Items] | |||
Payments on Revolving Credit Facility | $ 12,000,000 | ||
Outstanding letters of credit | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Purchase Commitments) - Additional Information (Detail) - Inventory [Member] $ in Millions | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase contracts period range, start | 1 month |
Purchase contracts period range, end | 12 months |
Total purchase commitment | $ 8.9 |
Commitments and Contingencies52
Commitments and Contingencies (Litigation and Other Proceedings) - Additional Information (Detail) $ in Millions | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Federal Securities Laws Violation [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Payment of penalties for legal fees and expenses | $ 1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Change in corporate income taxes | 21.00% | 35.00% | ||
Effective income tax rate | 29.70% | 34.80% | ||
Discrete income tax benefit | $ 1 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense (benefit) | $ 1,559 | $ 1,690 |
Non-Employee Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense (benefit) | 243 | 238 |
Equity-Classified Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense (benefit) | 773 | 1,084 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense (benefit) | 543 | 368 |
Cost of Goods Sold [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense (benefit) | 62 | 45 |
Selling Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense (benefit) | 36 | 25 |
General and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense (benefit) | $ 1,461 | $ 1,620 |
Stock-Based Compensation (2017
Stock-Based Compensation (2017 Omnibus Plan) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | May 24, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Restricted stock awards | $ 735 | $ 594 | |
2017 Omnibus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Restricted stock awards, Shares | 100,000 | ||
Number of nonqualified stock options granted | 200,000 | ||
Restricted stock awards | $ 2,300 | ||
Number of nonqualified stock options granted, Value | $ 1,900 | ||
Share-based compensation award description | the performance units, 50% of the award is based upon the achievement of certain levels of Return on Invested Capital for the performance period and 50% is based upon the achievement of certain levels of Free Cash Flow for the performance period. | ||
Performance awards performance period | 3 years | ||
2017 Omnibus Plan [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Number of performance units granted | 100,000 | ||
Number of performance units granted, Value | $ 2,800 | ||
2017 Omnibus Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Common stock approved for issuance | 3,500,000 |
Stock-Based Compensation - Su56
Stock-Based Compensation - Summary of Assumption Used in Estimate Fair Value of Stock Options (Detail) | 3 Months Ended |
Jun. 30, 2018$ / shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Common stock price | $ 25.75 |
Expected stock price volatility | 30.50% |
Risk-free interest rate | 2.90% |
Weighted-average expected option life (years) | 6 years |
Dividend yield | 1.20% |
Business Segments Information -
Business Segments Information - Additional Information (Detail) | 3 Months Ended |
Jun. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Number of operating segments | 2 |
Business Segments Information58
Business Segments Information - Schedule of Revenue from Reportable Segments by Product Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 387,847 | $ 358,359 |
Domestic [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 342,498 | 319,497 |
Domestic [Member] | Pipe [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 242,026 | 228,623 |
Domestic [Member] | Allied Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 100,472 | 90,874 |
International Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 45,349 | 38,862 |
International Segment [Member] | Pipe [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 34,448 | 29,954 |
International Segment [Member] | Allied Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 10,901 | $ 8,908 |
Business Segments Information59
Business Segments Information - Schedule of Additional Financial Information Attributable to Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 387,847 | $ 358,359 | |
Segment Adjusted EBITDA | 75,143 | 60,345 | |
Interest expense | 3,802 | 4,479 | |
Income tax expense | 14,284 | 9,746 | |
Depreciation and amortization | 17,827 | 18,221 | |
Equity in net loss (income) of unconsolidated affiliates | 133 | (248) | |
Capital expenditures | 6,874 | 17,949 | |
Investments in unconsolidated affiliates | 11,028 | $ 12,343 | |
Total identifiable assets | 1,090,906 | 1,043,242 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Total identifiable assets | (18,186) | (4,298) | |
Domestic [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 342,498 | 319,497 | |
Segment Adjusted EBITDA | 68,832 | 55,089 | |
Interest expense | 3,757 | 4,385 | |
Income tax expense | 13,257 | 9,515 | |
Depreciation and amortization | 15,953 | 16,263 | |
Equity in net loss (income) of unconsolidated affiliates | 218 | ||
Capital expenditures | 5,881 | 17,108 | |
Total identifiable assets | 963,346 | 904,718 | |
International Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 45,349 | 38,862 | |
Segment Adjusted EBITDA | 6,311 | 5,256 | |
Interest expense | 45 | 94 | |
Income tax expense | 1,027 | 231 | |
Depreciation and amortization | 1,874 | 1,958 | |
Equity in net loss (income) of unconsolidated affiliates | 133 | (466) | |
Capital expenditures | 993 | $ 841 | |
Investments in unconsolidated affiliates | 11,028 | 12,343 | |
Total identifiable assets | $ 145,746 | $ 142,822 |
Business Segments Information60
Business Segments Information - Schedule of Reconciliation of Segment Adjusted EBITDA to Net Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Net income | $ 32,280 | $ 17,742 |
Interest expense | 3,802 | 4,479 |
Income tax expense | 14,284 | 9,746 |
Fair market value adjustments to derivatives | (625) | 191 |
Loss on disposal of assets and costs from exit and disposal activities | (1,104) | (3,423) |
Total stock-based compensation expense (benefit) | 1,559 | 1,690 |
Domestic [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Net income | 30,589 | 15,150 |
Depreciation and amortization | 15,953 | 16,263 |
Interest expense | 3,757 | 4,385 |
Income tax expense | 13,257 | 9,515 |
Segment EBITDA | 63,556 | 45,313 |
Fair market value adjustments to derivatives | (12) | 191 |
Loss on disposal of assets and costs from exit and disposal activities | 1,009 | 3,319 |
Unconsolidated affiliates interest, tax, depreciation and amortization | 294 | |
Contingent consideration remeasurement | 2 | 26 |
Total stock-based compensation expense (benefit) | 1,559 | 1,690 |
ESOP deferred stock-based compensation | 4,021 | 2,614 |
Executive retirement (benefit) expense | (328) | 15 |
Restatement-related (benefit) costs | (1,231) | 1,460 |
Transaction costs | 256 | 167 |
Segment Adjusted EBITDA | 68,832 | 55,089 |
International Segment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Net income | 3,062 | 3,324 |
Depreciation and amortization | 1,874 | 1,958 |
Interest expense | 45 | 94 |
Income tax expense | 1,027 | 231 |
Segment EBITDA | 6,008 | 5,607 |
Foreign currency transaction gains | (171) | (869) |
Loss on disposal of assets and costs from exit and disposal activities | 95 | 104 |
Unconsolidated affiliates interest, tax, depreciation and amortization | 379 | 414 |
Segment Adjusted EBITDA | $ 6,311 | $ 5,256 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | 3 Months Ended | |
Jun. 30, 2018 | Sep. 30, 2018 | |
Second Quarter [Member] | ||
Subsequent Event [Line Items] | ||
Dividend payable date | Sep. 14, 2018 | |
Dividend payable, date of record | Aug. 31, 2018 | |
Common Stock [Member] | Scenario Forecast [Member] | ||
Subsequent Event [Line Items] | ||
Cash dividend declared | $ 0.08 |