Cover
Cover - shares | 3 Months Ended | |
Jun. 30, 2022 | Jul. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-36557 | |
Entity Registrant Name | ADVANCED DRAINAGE SYSTEMS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 51-0105665 | |
Entity Address, Address Line One | 4640 Trueman Boulevard | |
Entity Address, City or Town | Hilliard | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43026 | |
City Area Code | 614 | |
Local Phone Number | 658-0050 | |
Title of each class | Common Stock, $0.01 par value per share | |
Trading Symbol(s) | WMS | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 83,571,171 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001604028 | |
Current Fiscal Year End Date | --03-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Current assets: | ||
Cash | $ 463,696 | $ 20,125 |
Receivables (less allowance for doubtful accounts of $7,868 and $8,198, respectively) | 427,620 | 341,753 |
Inventories | 489,492 | 494,324 |
Other current assets | 20,532 | 15,696 |
Total current assets | 1,401,340 | 871,898 |
Property, plant and equipment, net | 636,042 | 619,383 |
Other assets: | ||
Goodwill | 619,626 | 610,293 |
Intangible assets, net | 449,115 | 431,385 |
Other assets | 119,240 | 116,799 |
Total assets | 3,225,363 | 2,649,758 |
Current liabilities: | ||
Current maturities of debt obligations | 18,113 | 19,451 |
Current maturities of finance lease obligations | 5,227 | 5,089 |
Accounts payable | 274,606 | 224,986 |
Other accrued liabilities | 148,605 | 134,877 |
Accrued income taxes | 58,207 | 6,838 |
Total current liabilities | 504,758 | 391,241 |
Long-term debt obligations (less unamortized debt issuance costs of $12,879 and $1,648, respectively) | 1,279,176 | 908,705 |
Long-term finance lease obligations | 11,429 | 11,393 |
Deferred tax liabilities | 166,741 | 168,435 |
Other liabilities | 66,472 | 64,939 |
Total liabilities | 2,028,576 | 1,544,713 |
Commitments and contingencies (see Note 9) | ||
Mezzanine equity: | ||
Redeemable common stock: $0.01 par value; 11,619 and 0 shares outstanding, respectively | 188,828 | 0 |
Redeemable convertible preferred stock: $0.01 par value; 0 and 47,070 shares authorized, respectively; 0 and 44,170 shares issued; 0 and 15,630 shares outstanding, respectively | 0 | 195,384 |
Total mezzanine equity | 188,828 | 195,384 |
Stockholders’ equity: | ||
Common stock; $0.01 par value: 1,000,000 shares authorized; 76,607 and 75,529 shares issued, respectively; 72,386 and 72,309 shares outstanding, respectively | 11,623 | 11,612 |
Paid-in capital | 1,079,701 | 1,065,628 |
Common stock in treasury, at cost | (408,861) | (318,691) |
Accumulated other comprehensive loss | (28,289) | (24,386) |
Retained earnings | 335,822 | 158,876 |
Total ADS stockholders’ equity | 989,996 | 893,039 |
Noncontrolling interest in subsidiaries | 17,963 | 16,622 |
Total stockholders’ equity | 1,007,959 | 909,661 |
Total liabilities, mezzanine equity and stockholders’ equity | $ 3,225,363 | $ 2,649,758 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Allowance for doubtful accounts | $ 7,868 | $ 8,198 |
Unamortized debt issuance costs | $ 12,879 | $ 1,648 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 76,607,000 | 75,529,000 |
Common stock, shares outstanding (in shares) | 72,386,000 | 72,309,000 |
Redeemable Common Stock | ||
Mezzanine equity, par value per share | $ 0.01 | $ 0.01 |
Mezzanine equity, shares outstanding (in shares) | 11,619,000 | 0 |
Redeemable Convertible Preferred Stock | ||
Mezzanine equity, par value per share | $ 0.01 | $ 0.01 |
Mezzanine equity, shares outstanding (in shares) | 0 | 15,630,000 |
Mezzanine equity, shares authorized (in shares) | 0 | 47,070,000 |
Mezzanine equity, shares issued (in shares) | 0 | 44,170,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 914,186 | $ 669,300 |
Cost of goods sold | 562,079 | 468,179 |
Gross profit | 352,107 | 201,121 |
Operating expenses: | ||
Selling, general and administrative | 86,520 | 76,221 |
Loss (gain) on disposal of assets and costs from exit and disposal activities | 303 | (11) |
Intangible amortization | 13,677 | 15,645 |
Income from operations | 251,607 | 109,266 |
Other expense: | ||
Interest expense | 11,072 | 7,907 |
Derivative gains and other income, net | (1,902) | (2,014) |
Income before income taxes | 242,437 | 103,373 |
Income tax expense | 55,065 | 26,455 |
Equity in net income of unconsolidated affiliates | (1,110) | (205) |
Net income | 188,482 | 77,123 |
Less: net income attributable to noncontrolling interest | 1,336 | 1,136 |
Net income attributable to ADS | $ 187,146 | $ 75,987 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 83,144 | 71,534 |
Diluted (in shares) | 84,389 | 73,124 |
Net income per share: | ||
Basic (in dollars per share) | $ 2.25 | $ 0.89 |
Diluted (in dollars per share) | $ 2.22 | $ 0.87 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 188,482 | $ 77,123 |
Currency translation (loss) gain | (3,898) | 2,041 |
Comprehensive income | 184,584 | 79,164 |
Less: other comprehensive income attributable to noncontrolling interest | 5 | 615 |
Less: net income attributable to noncontrolling interest | 1,336 | 1,136 |
Total comprehensive income attributable to ADS | $ 183,243 | $ 77,413 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows from Operating Activities | ||
Net income | $ 188,482 | $ 77,123 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 35,578 | 34,656 |
Deferred income taxes | (1,272) | 64 |
Loss (gain) on disposal of assets and costs from exit and disposal activities | 303 | (11) |
ESOP and stock-based compensation | 6,273 | 20,806 |
Amortization of deferred financing charges | 344 | 95 |
Fair market value adjustments to derivatives | (90) | (675) |
Equity in net income of unconsolidated affiliates | (1,110) | (205) |
Other operating activities | (3,535) | 450 |
Changes in working capital: | ||
Receivables | (79,616) | (67,388) |
Inventories | 8,039 | (28,985) |
Prepaid expenses and other current assets | (4,840) | (7,442) |
Accounts payable, accrued expenses, and other liabilities | 101,209 | 75,860 |
Net cash provided by operating activities | 249,765 | 104,348 |
Cash Flows from Investing Activities | ||
Capital expenditures | (36,189) | (25,546) |
Acquisition, net of cash acquired | (47,492) | 0 |
Other investing activities | 13 | 53 |
Net cash used in investing activities | (83,668) | (25,493) |
Cash Flows from Financing Activities | ||
Payments on syndicated Term Loan Facility | (1,750) | (1,750) |
Proceeds from Senior Notes due 2030 | 500,000 | 0 |
Debt issuance costs | (11,575) | 0 |
Payments on Equipment Financing | (3,548) | 0 |
Payments on finance lease obligations | (1,721) | (5,379) |
Repurchase of common stock | (57,699) | (102,013) |
Cash dividends paid | (10,170) | (9,451) |
Dividends paid to noncontrolling interest holder | 0 | (957) |
Proceeds from exercise of stock options | 1,249 | 1,336 |
Payment of withholding taxes on vesting of restricted stock units | (22,809) | (12,976) |
Other financing activities | 0 | (131) |
Net cash provided by (used in) financing activities | 277,677 | (131,321) |
Effect of exchange rate changes on cash | (203) | 290 |
Net change in cash | 443,571 | (52,176) |
Cash at beginning of period | 20,125 | 195,009 |
Cash at end of period | 463,696 | 142,833 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for income taxes | 5,055 | 2,605 |
Cash paid for interest | 4,714 | 3,714 |
Non-cash operating, investing and financing activities: | ||
Repurchase of common stock pending settlement | 9,662 | 13,365 |
Acquisition of property, plant and equipment under finance lease and incurred lease obligations | 1,754 | 9,382 |
Balance in accounts payable for the acquisition of property, plant and equipment | 16,881 | 6,578 |
Revolving Credit Agreement | ||
Cash Flows from Financing Activities | ||
Proceeds from Revolving Credit Agreement | 26,200 | 0 |
Payments on Revolving Credit Agreement | (140,500) | 0 |
Amended Revolving Credit Facility | ||
Cash Flows from Financing Activities | ||
Proceeds from Revolving Credit Agreement | 97,000 | 0 |
Payments on Revolving Credit Agreement | $ (97,000) | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity and Mezzanine Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Total Mezzanine Equity | Total Mezzanine Equity ESOP share conversion | Total Mezzanine Equity KSOP redeemable common stock conversion | Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred Stock ESOP share conversion | Deferred Compensation Unearned ESOP Shares | Redeemable Common Stock | Redeemable Common Stock ESOP share conversion | Redeemable Common Stock KSOP redeemable common stock conversion | Total ADS Stockholders’ Equity | Common Stock | Paid -In Capital | Common Stock in Treasury | Accumulated Other Compre-hensive Loss | Retained (Deficit) Earnings | Non- controlling Interest in Subsidiaries |
Beginning balance, common stock (in shares) at Mar. 31, 2021 | 72,071 | ||||||||||||||||
Beginning balance, treasury stock (in shares) at Mar. 31, 2021 | 501 | ||||||||||||||||
Beginning balance at Mar. 31, 2021 | $ 833,515 | $ 819,784 | $ 11,578 | $ 918,587 | $ (10,959) | $ (24,220) | $ (75,202) | $ 13,731 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 77,123 | 75,987 | 75,987 | 1,136 | |||||||||||||
Other comprehensive (loss) income | 2,041 | 1,426 | 1,426 | 615 | |||||||||||||
Redeemable convertible preferred stock dividends | (1,550) | (1,550) | (1,550) | ||||||||||||||
Common stock dividends | (7,901) | (7,901) | (7,901) | ||||||||||||||
Dividends paid to noncontrolling interest holder | (957) | (957) | |||||||||||||||
Share repurchases (in shares) | 1,056 | ||||||||||||||||
Share repurchases | (115,378) | (115,378) | $ (115,378) | ||||||||||||||
Allocation of ESOP shares to participants for compensation | 12,064 | $ 2,091 | $ 2,091 | 12,064 | 12,064 | ||||||||||||
Exercise of common stock options (in shares) | 48 | ||||||||||||||||
Exercise of common stock options | 1,336 | 1,336 | 1,336 | ||||||||||||||
Restricted stock awards (in shares) | 99 | 29 | |||||||||||||||
Restricted stock awards | (3,230) | (3,230) | $ 1 | $ (3,231) | |||||||||||||
Performance-based restricted stock units (in shares) | 245 | 92 | |||||||||||||||
Performance-based restricted stock units | (9,743) | (9,743) | $ 2 | $ (9,745) | |||||||||||||
Stock-based compensation expense | 6,651 | 6,651 | 6,651 | ||||||||||||||
ESOP distribution in common stock (in shares) | 764 | ||||||||||||||||
ESOP distribution in common stock | 12,412 | 12,412 | $ 8 | 12,404 | |||||||||||||
Other | (79) | (79) | (79) | ||||||||||||||
Ending balance, common stock (in shares) at Jun. 30, 2021 | 73,227 | ||||||||||||||||
Ending balance, treasury stock (in shares) at Jun. 30, 2021 | 1,678 | ||||||||||||||||
Ending balance at Jun. 30, 2021 | 806,304 | 791,779 | $ 11,589 | 950,963 | $ (139,313) | (22,794) | (8,666) | 14,525 | |||||||||
Mezzanine equity, beginning balance (in shares) at Mar. 31, 2021 | 19,275 | 966 | |||||||||||||||
Mezzanine equity, beginning balance at Mar. 31, 2021 | 229,911 | $ 240,944 | $ (11,033) | ||||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||||||||
Allocation of ESOP shares to participants for compensation (in shares) | (167) | ||||||||||||||||
Allocation of ESOP shares to participants for compensation | $ 12,064 | 2,091 | $ 2,091 | 12,064 | 12,064 | ||||||||||||
ESOP distribution in common stock, temporary equity (in shares) | (993) | ||||||||||||||||
ESOP distribution in common stock | (12,412) | $ (12,412) | |||||||||||||||
Mezzanine equity, ending balance (in shares) at Jun. 30, 2021 | 18,282 | 799 | |||||||||||||||
Mezzanine equity, ending balance at Jun. 30, 2021 | 219,590 | $ 228,532 | $ (8,942) | ||||||||||||||
Beginning balance, common stock (in shares) at Mar. 31, 2022 | 72,309 | 75,529 | |||||||||||||||
Beginning balance, treasury stock (in shares) at Mar. 31, 2022 | 3,220 | ||||||||||||||||
Beginning balance at Mar. 31, 2022 | $ 909,661 | 893,039 | $ 11,612 | 1,065,628 | $ (318,691) | (24,386) | 158,876 | 16,622 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 188,482 | 187,146 | 187,146 | 1,336 | |||||||||||||
Other comprehensive (loss) income | (3,898) | (3,903) | (3,903) | 5 | |||||||||||||
Common stock dividends | $ (10,200) | (10,200) | (10,200) | ||||||||||||||
Share repurchases (in shares) | 800 | 772 | |||||||||||||||
Share repurchases | $ (67,361) | (67,361) | $ (67,361) | ||||||||||||||
KSOP redeemable common stock conversion (in shares) | 403 | ||||||||||||||||
KSOP redeemable common stock conversion | 6,556 | 6,556 | $ 4 | 6,552 | |||||||||||||
Exercise of common stock options (in shares) | 67 | ||||||||||||||||
Exercise of common stock options | 1,249 | 1,249 | $ 1 | 1,248 | |||||||||||||
Restricted stock awards (in shares) | 81 | 24 | |||||||||||||||
Restricted stock awards | (2,457) | (2,457) | $ 1 | $ (2,458) | |||||||||||||
Performance-based restricted stock units (in shares) | 527 | 205 | |||||||||||||||
Performance-based restricted stock units | (20,346) | (20,346) | $ 5 | $ (20,351) | |||||||||||||
Stock-based compensation expense | $ 6,273 | 6,273 | 6,273 | ||||||||||||||
Ending balance, common stock (in shares) at Jun. 30, 2022 | 72,386 | 76,607 | |||||||||||||||
Ending balance, treasury stock (in shares) at Jun. 30, 2022 | 4,221 | ||||||||||||||||
Ending balance at Jun. 30, 2022 | $ 1,007,959 | $ 989,996 | $ 11,623 | $ 1,079,701 | $ (408,861) | $ (28,289) | $ 335,822 | $ 17,963 | |||||||||
Mezzanine equity, beginning balance (in shares) at Mar. 31, 2022 | 15,630 | 0 | |||||||||||||||
Mezzanine equity, beginning balance at Mar. 31, 2022 | 195,384 | 195,384 | $ 195,384 | $ 0 | |||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||||||||
Temporary equity, conversion of convertible securities (in shares) | (15,630) | 12,022 | (403) | ||||||||||||||
Temporary equity, conversion of convertible securities | $ 0 | $ (6,556) | $ (195,384) | $ 195,384 | $ (6,556) | ||||||||||||
Mezzanine equity, ending balance (in shares) at Jun. 30, 2022 | 0 | 11,619 | |||||||||||||||
Mezzanine equity, ending balance at Jun. 30, 2022 | $ 188,828 | $ 188,828 | $ 0 | $ 188,828 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity and Mezzanine Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock dividends per share | $ 0.12 | $ 0.11 |
Background and Summary of Signi
Background and Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Background and Summary of Significant Accounting Policies | 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 innovative water management solutions in the stormwater and onsite septic waste water industries, providing superior drainage solutions for use in the construction and agriculture marketplace. ADS’s products are used across a broad range of end markets and applications, including non-residential, infrastructure and agriculture applications. The Company is managed and reports results of operations in three reportable segments: Pipe, Infiltrator Water Technologies Ultimate Holdings, Inc ("Infiltrator") and International. The Company also reports the results of its Allied Products and all other business segments as Allied Products and Other. Historically, sales of the Company’s products have been higher in the first and second quarters of each fiscal year due to favorable weather and longer daylight conditions accelerating construction activity during these periods. Seasonal variations in operating results may also be impacted by inclement weather conditions, such as cold or wet weather, which can delay projects. Basis of Presentation - The Company prepares its Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Condensed Consolidated Balance Sheet as of March 31, 2022 was derived from audited financial statements included in the Annual Report on Form 10-K for the year ended March 31, 2022 (“Fiscal 2022 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, 2022 and the results of operations for the three months ended June 30, 2022 and cash flows for the three months ended June 30, 2022. 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 2022 Form 10-K. Principles of Consolidation - The Condensed Consolidated Financial Statements include the Company, its wholly-owned subsidiaries, its majority-owned subsidiaries and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. The Company uses the equity method of accounting for equity investments where it exercises significant influence but does not hold a controlling financial interest. Such investments are recorded in Other assets in the Condensed Consolidated Balance Sheets and the related equity earnings from these investments are included in Equity in net income of unconsolidated affiliates in the Condensed Consolidated Statements of Operations. All intercompany balances and transactions have been eliminated in consolidation. Recent Accounting Guidance There have been no new accounting pronouncements issued or adopted since the filing of the Fiscal 2022 Form 10-K that have significance, or potential significance, to the Condensed Consolidated Financial Statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ACQUISITIONS Acquisition of Cultec - On April 29, 2022, the Company completed its acquisition of Cultec, Inc. (“Cultec”). Cultec was a family-owned technology leader in the stormwater and onsite septic wastewater industries. The acquisition of Cultec expands the Company’s portfolio of innovative water management solutions in the stormwater and onsite septic wastewater industries. The total fair value of consideration transferred was $47.5 million. The following table summarizes the consideration transferred and the preliminary purchase price allocation of assets acquired and liabilities assumed. The purchase price allocation for assets acquired and liabilities assumed is preliminary and will be finalized when valuations are complete and final assessments of the fair value of acquired assets and assumed liabilities are completed. Such finalization may result in material changes from the preliminary purchase price allocation. The Company's estimates and assumptions are subject to change during the measurement period (up to one year from the closing date), as the Company continues to finalize the valuations of assets acquired and liabilities assumed. (Amounts in thousands) Initial Amount Accounts receivable $ 5,957 Inventory 4,469 Intangible assets 31,400 Goodwill 9,660 Property, plant and equipment 1,986 Accounts payable (5,539) Accrued expenses (75) Other liabilities (366) Total fair value of consideration transferred $ 47,492 The preliminary goodwill of $9.7 million represents the excess of consideration transferred over the preliminary fair value of assets acquired and liabilities assumed and is attributable to expected operating efficiencies. The goodwill is deductible for income tax purposes and is assigned to Allied Products & Other. The preliminary purchase price excludes transaction costs. During the three months ended June 30, 2022, the Company incurred $1.5 million of transaction costs related to the acquisition such as legal, accounting, valuation and other professional services. These costs are included in selling, general and administrative expenses in the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income. The identifiable intangible assets recorded in connection with the closing of the acquisition of Cultec are based on preliminary valuations including customer relationships, patents and developed technology and tradename and trademarks totaling $31.4 million. (Amounts in thousands) Preliminary fair value Customer relationships $ 2,800 Patents and developed technology 16,200 Tradename and trademarks 12,400 Total identifiable intangible assets $ 31,400 The Company has excluded certain disclosures required under ASC 805, Business Combinations as they are not material to the financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Revenue Disaggregation - The Company disaggregates net sales by Domestic, International and Infiltrator and further disaggregates Domestic and International by product type, consistent with its reportable segment disclosure. This disaggregation level best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Refer to “Note 12. Business Segments Information” for the Company’s disaggregation of Net sales by reportable segment. Contract Balances - The Company recognizes a contract asset representing the Company’s right to recover products upon the receipt of returned products and a contract liability for the customer refund. The following table presents the balance of the Company’s contract asset and liability as of the periods presented: June 30, March 31, (In thousands) Contract asset - product returns $ 1,061 $ 978 Refund liability 2,940 2,356 |
Leases
Leases | 3 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | LEASES Nature of the Company’s Leases - The Company has operating and finance leases for plants, yards, corporate offices, tractors, trailers and other equipment. The Company’s leases have remaining terms of less than one year to |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories as of the periods presented consisted of the following: June 30, March 31, (In thousands) Raw materials $ 148,527 $ 156,050 Finished goods 340,965 338,274 Total inventories $ 489,492 $ 494,324 |
Net Income Per Share and Stockh
Net Income Per Share and Stockholders' Equity | 3 Months Ended |
Jun. 30, 2022 | |
Net Income Per Share And Stockholders Equity [Abstract] | |
Net Income Per Share and Stockholders' Equity | NET INCOME PER SHARE AND STOCKHOLDERS' EQUITY Employee Stock Ownership Plan ("ESOP") - As previously disclosed in the Fiscal 2022 Form 10-K, in April 2022 all currently outstanding 15.6 million shares of Preferred Stock held by the ESOP were converted into 12.0 million shares of the Company’s redeemable common stock at the Conversion rate of 0.7692. The Company’s 401(k) retirement plan (“KSOP”) holds these shares of common stock. When participants sell or forfeit these shares, the shares are no longer subject to the put option of the Internal Revenue Code and are no longer required to be classified in mezzanine equity. Net Income per Share - For the three months ended June 30, 2021, the Company was required to apply the two-class method to compute both basic and diluted net income per share. Holders of redeemable convertible preferred stock participated in dividends on an as-converted basis when declared on common stock. As a result, redeemable convertible preferred stock met the definition of participating securities. 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 Company was not required to apply the two-class method to compute net income per share for the three months ended June 30, 2022 as the redeemable common stock and common stock have the same rights to earnings 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 (In thousands, except per share data) 2022 2021 NET INCOME PER SHARE—BASIC: Net income attributable to ADS $ 187,146 $ 75,987 Adjustments for: Dividends to participating securities — (1,635) Net income available to common stockholders and participating securities 187,146 74,352 Undistributed income allocated to participating securities — (10,933) Net income available to common stockholders – Basic $ 187,146 $ 63,419 Weighted average number of common shares outstanding – Basic 83,144 71,534 Net income per common share – Basic $ 2.25 $ 0.89 NET INCOME PER SHARE—DILUTED: Net income available to common stockholders – Diluted $ 187,146 $ 63,419 Weighted average number of common shares outstanding – Basic 83,144 71,534 Assumed restricted stock - nonparticipating 147 282 Assumed exercise of stock options 757 941 Assumed performance units 341 367 Weighted average number of common shares outstanding – Diluted 84,389 73,124 Net income per common share – Diluted $ 2.22 $ 0.87 Potentially dilutive securities excluded as anti-dilutive 24 14,102 Stockholders’ Equity – During the three months ended June 30, 2022, the Company repurchased 0.8 million shares of common stock at a cost of $67.4 million. The repurchases were made under the Board of Directors’ authorization in February 2022 to repurchase up to an additional $1.0 billion of ADS Common Stock in accordance with applicable securities laws. As of June 30, 2022, approximately $932.6 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, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS ADS Mexicana - ADS conducts business in Mexico and Central America through its joint venture ADS Mexicana, S.A. de C.V. (“ADS Mexicana”). ADS owns 51% of the outstanding stock of ADS Mexicana and consolidates ADS Mexicana for financial reporting purposes. On June 6, 2022, the Company and ADS Mexicana amended the Intercompany Revolving Credit Promissory Note (the “Intercompany Note”) with a borrowing capacity of $9.5 million. The Intercompany Note matures on June 8, 2027. The Intercompany Note indemnifies the ADS Mexicana joint venture partner for 49% of any unpaid borrowing. The interest rates under the Intercompany Note are determined by certain base rates or Secured Overnight Financing Rate (“SOFR”) plus an applicable margin based on the Leverage Ratio. As of June 30, 2022 and March 31, 2022, there were no borrowings and $1.5 million borrowings, respectively, outstanding under the Intercompany Note. South American Joint Venture - The Tuberias Tigre - ADS Limitada joint venture (the “South American Joint Venture”) manufactures and sells HDPE corrugated pipe in certain South American markets. ADS owns 50% of the South American Joint Venture. ADS is the guarantor of 50% of the South American Joint Venture’s credit arrangement, and the debt guarantee is shared equally with the joint venture partner. The Company’s maximum potential obligation under this guarantee is $11.0 million as of June 30, 2022. The maximum borrowings permitted under the South American Joint Venture’s credit facility are $22.0 million. The Company does not anticipate any required contributions related to the balance of this credit arrangement. As of June 30, 2022 and March 31, 2022, the outstanding principal balances of the credit facility including letters of credit were $8.6 million and $9.9 |
Debt
Debt | 3 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Long-term debt as of the periods presented consisted of the following: June 30, March 31, (In thousands) Term Loan Facility $ 432,500 $ 434,250 Senior Notes due 2027 350,000 350,000 Senior Notes due 2030 500,000 — Revolving Credit Facility — 114,300 Equipment Financing 27,668 31,254 Total 1,310,168 929,804 Unamortized debt issuance costs (12,879) (1,648) Current maturities (18,113) (19,451) Long-term debt obligations $ 1,279,176 $ 908,705 Senior Secured Credit Facilities – In July 2019, the Company entered into the credit agreement (the “Base Credit Agreement”) by and among the Company, as borrower, Barclays Bank PLC, as administrative agent, the several lenders from time to time party thereto. In September 2019, the Company amended the Base Credit Agreement (as amended the “Senior Secured Credit Facility”). The Senior Secured Credit Facility provides for a term loan facility in an initial aggregate principal amount of $700 million (the “Term Loan Facility”), a revolving credit facility in an initial aggregate principal amount of up to $350 million (the “Revolving Credit Facility”), a letter of credit sub-facility in the initial aggregate available amount of up to $50 million, as a sublimit of such Revolving Credit Facility (the “L/C Facility”) and a swing line sub-facility in the aggregate available amount of up to $50 million, as a sublimit of the Revolving Credit Facility (together with the Term Loan Facility, the Revolving Credit Facility and the L/C Facility, the “Senior Secured Credit Facility”). In May 2022, the Company entered into a Second Amendment (the "Second Amendment") to the Company's Base Credit Agreement with Barclays Bank PLC, as administrative agent under the Term Loan Facility, PNC Bank, National Association, as new administrative agent under the Revolving Credit Facility. Among other things, the Second Amendment (i) amended the Base Credit Agreement by increasing the Revolving Credit Facility (the "Amended Revolving Credit Facility") from $350 million to $600 million (including an increase of the sub-limit for the swing-line sub-facility from $50 million to $60 million), (ii) extended the maturity date of the Revolving Credit Facility to May 26, 2027, (iii) revised the “applicable margin” to provide an additional step-down to 175 basis points (for Term Benchmark based loans) and 75 basis points (for base rate loans) in the event the consolidated senior secured net leverage ratio is less than 2.00 to 1.00 , and (iv) reset the “incremental amount” and the investment basket in non-guarantors and joint ventures. The Second Amendment also revises the reference interest rate from LIBOR to SOFR for both the Amended Revolving Credit Facility and the Term Loan Facility. Letters of credit outstanding at June 30, 2022 and March 31, 2022 amount to $5.2 million and $9.2 million, respectively, and reduced the availability of the Revolving Credit Facility. Senior Notes due 2027 – On September 23, 2019, the Company issued $350.0 million aggregate principal amount of 5.0% Senior Notes due 2027 (the “2027 Notes”) pursuant to an Indenture, dated September 23, 2019 (the “2027 Indenture”), among the Company, the guarantors party thereto (the “Guarantors”) and U.S. Bank National Association, as Trustee (the “Trustee”). The 2027 Notes are guaranteed by each of the Company’s present and future direct and indirect wholly owned domestic subsidiaries that is a guarantor under the Company's Senior Secured Credit Facility. The 2027 Notes were offered and sold either to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933 (the “Securities Act”) or to persons outside the United States under Regulation S of the Securities Act. Senior Notes due 2030 – On June 9, 2022, the Company issued $500.0 million aggregate pri ncipal amount of 6.375% Senior Notes due 2030 (the “2030 Notes”) pursuant to an Indenture, dated June 9, 2022 (the "2030 Indenture"), amount the Company, the Guarantors and the Trustee. The 2030 Notes were offered and sold either to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act or to persons outside the United States under Regulation S of the Securities Act. Interest on the 2030 Notes will be payable semi-annually in cash in arrears on January 15 and July 15 of each year, commencing on January 15, 2023, at a rate of 6.375% per annum. The Senior Notes will mature on July 15, 2030. The Company used a portion of the net proceeds from the offering of the 2030 Notes to repay in full the outstanding borrowings under its Revolving Credit Facility and will use the remainder for general corporate purposes. The deferred financing costs associated with the 2030 Notes totaled $9.0 million and are recorded as a direct reduction from the carrying amount of the related debt. The Company may redeem the Notes, in whole or in part, at any time on or after July 15, 2025 at certain specified redemption prices set forth in the Indenture. In addition, at any time prior to July 15, 2025, the Company may redeem the Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date plus an applicable “make-whole” premium. At any time prior to July 15, 2025, the Company may also redeem up to 40% of the aggregate principal amount of Notes issued under the Indenture with net cash proceeds of certain equity offerings at a redemption price equal to 106.375% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The 2030 Indenture contains customary events of default, including, among other things, payment default, failure to comply with covenants or agreements contained in the 2030 Indenture or the 2030 Notes and certain provisions related to bankruptcy events. The 2030 Indenture also contains customary negative covenants. Equipment Financing – In November 2021, the Company purchased material handling equipment, trucks and trailers previously leased under a master lease agreement and classified as finance leases. The purchase was funded with debt through the Master Lease Agreement and Interim Funding Schedule with Fifth Third. The assets acquired are titled to the Company and included in Property, plant and equipment, net on the Company's Condensed Consolidated Balance Sheet. The equipment financing has a term of between 12 and 84 months, based on the life of the equipment, and bears a weighted average interest of 1.4%. The current portion of the equipment financing is $11.1 million and the long-term portion is $16.6 million at June 30, 2022. Valuation of Debt - The carrying amounts of current financial assets and liabilities approximate fair value because of the immediate or short-term maturity of these items. The following table presents the carrying and fair value of the Company’s 2027 Notes, 2030 Notes and Equipment Financing for the periods presented: June 30, 2022 March 31, 2022 Fair Value Carrying Value Fair Value Carrying Value (In thousands) Senior Notes due 2027 $ 324,198 $ 350,000 $ 349,902 $ 350,000 Senior Notes due 2030 489,580 500,000 — — Equipment Financing 26,784 27,668 29,302 31,254 Total fair value $ 840,562 $ 877,668 $ 379,204 $ 381,254 The fair values of the 2027 Notes and 2030 Notes was determined based on a quoted market data for the Company’s 2027 Notes and 2030 Notes, respectively. The fair value of the Equipment Financing was determined based on a comparison of the interest rate and terms of such borrowings to the rates and terms of similar debt available for the period. The categorization of the framework used to evaluate the 2027 Notes, 2030 Notes and Equipment Financing are considered Level 2. The Company believes the carrying amount on the remaining long-term debt, including the Term Loan Facility and Revolving Credit Facility, is not materially different from its fair value as the interest rates and terms of the borrowings are similar to currently available borrowings. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Purchase Commitments - The Company has historically secured supplies of resin raw material by agreeing to purchase quantities during a future given period at a fixed price. These purchase contracts typically ranged from 1 to 12 months and occur in the ordinary course of business. The Company also enters into equipment purchase contracts with manufacturers. The Company does not have any outstanding purchase commitments as of June 30, 2022. Litigation and Other Proceedings – The Company is involved from time to time in various legal proceedings that arise in the ordinary course of business, including but not limited to commercial disputes, environmental matters, employee related claims, intellectual property disputes and litigation in connection with transactions including acquisitions and divestitures. The Company does not believe that such litigation, claims, and administrative |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s effective tax rate will vary based on a variety of factors, including overall profitability, the geographical mix of income before taxes and related tax rates in jurisdictions where it operates and other one-time charges, as well as the occurrence of discrete events. For the three months ended June 30, 2022 and 2021, the Company utilized an effective tax rate of 22.7% and 25.6%, respectively, to calculate its provision for income taxes. Several items increased the effective rate including s tate and local income taxes for the three months ended June 30, 2022 and 2021. The Company’s ESOP also increased the effective rate for the three months ended June 30, 2021, which no longer impacts the effective tax rate after the repayment of the ESOP loan and the allocation of the remaining unallocated shares of Preferred Stock in the prior year. Additionally, discrete income tax benefits related to the stock-based compensation windfall decreased the rate for the three months ended June 30, 2022 and 2021. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION ADS has several programs for stock-based payments to employees and non-employee members of its Board of Directors, including stock options, performance-based restricted stock units and restricted stock. 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 periods presented: Three Months Ended 2022 2021 (In thousands) Component of income before income taxes: Cost of goods sold $ 674 $ 634 Selling, general and administrative expenses 5,599 6,017 Total stock-based compensation expense $ 6,273 $ 6,651 The following table summarizes stock-based compensation expense by award type for the periods presented: Three Months Ended 2022 2021 (In thousands) Stock-based compensation expense: Stock Options $ 1,279 $ 753 Restricted Stock 1,761 1,359 Performance-based Restricted Stock Units 2,740 4,188 Non-Employee Directors 493 351 Total stock-based compensation expense $ 6,273 $ 6,651 2017 Omnibus Incentive 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 5.0 million shares of the Company’s common stock for awards made thereunder, which awards may consist of stock options, restricted stock, restricted stock units, stock appreciation rights, phantom stock, cash-based awards, performance awards (which may take the form of performance cash, performance units or performance shares) or other stock-based awards. Restricted Stock – During the three months ended June 30, 2022, the Company granted 0.1 million shares of restricted stock with a grant date fair value of $8.5 million. Performance-based Restricted Stock Units (" Performance Units") – During the three months ended June 30, 2022, the Company granted 0.1 million performance share units at a grant date fair value of $6.6 million. Options – During the three months ended June 30, 2022, The Company granted 0.1 million nonqualified stock options under the 2017 Incentive Plan with a grant date fair value of $5.5 million. The Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The following table summarizes the assumptions used to estimate the fair value of stock-options during the periods presented: Three Months Ended Common stock price $99.29 Expected stock price volatility 41.1% Risk-free interest rate 2.9% Weighted-average expected option life (years) 6 Dividend yield 0.48% |
Business Segments Information
Business Segments Information | 3 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segments Information | BUSINESS SEGMENTS INFORMATION The Company operates its business in three distinct reportable segments: “Pipe”, “International” and “Infiltrator.” “Allied Products & Other” represents the Company’s Allied Products and all other business segments. The Chief Operating Decision Maker (the “CODM”) evaluates segment reporting based on Net Sales and Segment Adjusted Gross Profit. The Company calculated Segment Adjusted Gross Profit as net sales less costs of goods sold, depreciation and amortization, stock-based compensation and non-cash charges. A measure of assets is not applicable, as segment assets are not regularly reviewed by the CODM for evaluating performance or allocating resources. Pipe – The Pipe segment manufactures and markets high performance thermoplastic corrugated pipe throughout the United States. The Company maintains and serves these markets through product distribution relationships with many of the largest national and independent waterworks distributors, buying groups and co-ops, major national retailers as well as an extensive network of hundreds of small to medium-sized distributors across the United States. Products include single wall pipe, N-12 HDPE pipe sold into the Storm sewer, Infrastructure and Agriculture markets, High Performance polypropylene pipe sold into the Storm sewer, Infrastructure and sanitary sewer markets. Products are designed primarily for storm water management in the construction and infrastructure marketplace across a broad range of end markets and applications, including non-residential, residential, agriculture and infrastructure. Products are manufactured using HDPE and polypropylene plastic material. Infiltrator – Infiltrator is a leading national provider of plastic leach field chambers and systems, septic tanks and accessories, primarily for use in residential applications. Infiltrator products are used in onsite septic wastewater treatment systems in the United States and Canada. International – The International segment manufactures and markets pipe and allied products in certain regions outside of the United States, including Company owned facilities in Canada, subsidiaries that distribute to Europe and the Middle East, exports and through the Company’s joint ventures with local partners in Mexico and South America. The Company’s Mexican joint venture, ADS Mexicana, primarily serves the Mexican and Central American markets, while its South American Joint Venture, Tigre-ADS, is the primary channel to serve the South American markets. The Company’s International product lines include single wall pipe, N-12 HDPE pipe, high performance PP pipe and certain geographies also sell our broad line of Allied Products. Allied Products & Other – Allied Products and Other manufactures and markets products throughout the United States. Products include StormTech, Nyloplast, ARC Septic Chambers, Inserta Tee, BaySaver filters and water quality structures, Fittings, Cultec and FleXstorm. The Company maintains and serves these markets through product distribution relationships with many of the largest national and independent waterworks distributors, major national retailers as well as an extensive network of hundreds of small to medium-sized distributors across the United States. The Company also sells through a broad variety of buying groups and co-ops in the United States. The Company aggregates operating segments within the Allied Products & Other segment disclosure. None of the operating segments within the Allied Products & Other businesses segment disclosure exceeds the quantitative thresholds for separate segment reporting. 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, 2022 June 30, 2021 (In thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 524,857 $ (9,874) $ 514,983 $ 374,010 $ (1,903) $ 372,107 Infiltrator 166,290 (28,906) 137,384 126,742 (19,037) 107,705 International International - Pipe 53,419 (5,859) 47,560 50,838 (2,914) 47,924 International - Allied Products & Other 18,095 — 18,095 14,528 — 14,528 Total International 71,514 (5,859) 65,655 65,366 (2,914) 62,452 Allied Products & Other 198,909 (2,745) 196,164 127,036 — 127,036 Intersegment Eliminations (47,384) 47,384 — (23,854) 23,854 — Total Consolidated $ 914,186 $ — $ 914,186 $ 669,300 $ — $ 669,300 The following sets forth certain financial information attributable to the reportable segments for the periods presented: Three Months Ended 2022 2021 (In thousands) Segment Adjusted Gross Profit Pipe $ 168,579 $ 84,143 Infiltrator 75,794 59,402 International 20,484 21,378 Allied Products & Other 109,041 63,299 Intersegment Eliminations (815) (14) Total $ 373,083 $ 228,208 Depreciation and Amortization Pipe $ 12,865 $ 12,035 Infiltrator 4,867 3,436 International 1,371 1,458 Allied Products & Other (a) 16,475 17,727 Total $ 35,578 $ 34,656 Capital Expenditures Pipe $ 20,274 $ 9,830 Infiltrator 12,532 13,026 International 913 250 Allied Products & Other (a) 2,470 2,440 Total $ 36,189 $ 25,546 (a) Includes depreciation, amortization and capital expenditures not allocated to a reportable segment. The amortization expense of Infiltrator intangible assets acquired is included in Allied Products & Other. Reconciliation of Gross Profit to Segment Adjusted Gross Profit Three Months Ended 2022 2021 (In thousands) Reconciliation of Segment Adjusted Gross Profit: Total Gross Profit $ 352,107 $ 201,121 Depreciation and Amortization 20,302 17,532 ESOP and stock-based compensation expense 674 9,555 Total Segment Adjusted Gross Profit $ 373,083 $ 228,208 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Common Stock Dividend - During the second quarter of fiscal 2023, the Company declared a quarterly cash dividend of $0.12 per share of common stock. The dividend is payable on September 15, 2022 to stockholders of record at the close of business on September 1, 2022. Share Repurchase Program - During the second quarter of fiscal 2023, 0.6 million shares of common stock at a cost of $57.7 million were repurchased under the Board of Directors' authorization in February 2022. Employee Stock Purchase Plan - On July 21, 2022, the Company’s stockholders adopted and approved the Advanced Drainage Systems, Inc. Employee Stock Purchase Plan (the “ESPP”). By approving the ESPP, the Company’s stockholders set aside a fixed reserve of 400,000 shares of common stock that will be available to eligible employees of ADS and Participating Subsidiaries to purchase based on the terms and conditions of the ESPP. |
Background and Summary of Sig_2
Background and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation - |
Principles of Consolidation | Principles of Consolidation - The Condensed Consolidated Financial Statements include the Company, its wholly-owned subsidiaries, its majority-owned subsidiaries and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. The Company uses the equity method of accounting for equity investments where it exercises significant influence but does not hold a controlling financial interest. Such investments are recorded in Other assets in the Condensed Consolidated Balance Sheets and the related equity earnings from these investments are included in Equity in net income of unconsolidated affiliates in the Condensed Consolidated Statements of Operations. All intercompany balances and transactions have been eliminated in consolidation. |
Recent Accounting Guidance | Recent Accounting Guidance There have been no new accounting pronouncements issued or adopted since the filing of the Fiscal 2022 Form 10-K that have significance, or potential significance, to the Condensed Consolidated Financial Statements. |
Leases | Nature of the Company’s Leases - The Company has operating and finance leases for plants, yards, corporate offices, tractors, trailers and other equipment. The Company’s leases have remaining terms of less than one year to |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Consideration Transferred and Preliminary Purchase Price Allocation of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration transferred and the preliminary purchase price allocation of assets acquired and liabilities assumed. The purchase price allocation for assets acquired and liabilities assumed is preliminary and will be finalized when valuations are complete and final assessments of the fair value of acquired assets and assumed liabilities are completed. Such finalization may result in material changes from the preliminary purchase price allocation. The Company's estimates and assumptions are subject to change during the measurement period (up to one year from the closing date), as the Company continues to finalize the valuations of assets acquired and liabilities assumed. (Amounts in thousands) Initial Amount Accounts receivable $ 5,957 Inventory 4,469 Intangible assets 31,400 Goodwill 9,660 Property, plant and equipment 1,986 Accounts payable (5,539) Accrued expenses (75) Other liabilities (366) Total fair value of consideration transferred $ 47,492 |
Summary of Identifiable Intangible Assets | The identifiable intangible assets recorded in connection with the closing of the acquisition of Cultec are based on preliminary valuations including customer relationships, patents and developed technology and tradename and trademarks totaling $31.4 million. (Amounts in thousands) Preliminary fair value Customer relationships $ 2,800 Patents and developed technology 16,200 Tradename and trademarks 12,400 Total identifiable intangible assets $ 31,400 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Asset and Liability | The following table presents the balance of the Company’s contract asset and liability as of the periods presented: June 30, March 31, (In thousands) Contract asset - product returns $ 1,061 $ 978 Refund liability 2,940 2,356 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of the periods presented consisted of the following: June 30, March 31, (In thousands) Raw materials $ 148,527 $ 156,050 Finished goods 340,965 338,274 Total inventories $ 489,492 $ 494,324 |
Net Income Per Share and Stoc_2
Net Income Per Share and Stockholders' Equity (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
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 (In thousands, except per share data) 2022 2021 NET INCOME PER SHARE—BASIC: Net income attributable to ADS $ 187,146 $ 75,987 Adjustments for: Dividends to participating securities — (1,635) Net income available to common stockholders and participating securities 187,146 74,352 Undistributed income allocated to participating securities — (10,933) Net income available to common stockholders – Basic $ 187,146 $ 63,419 Weighted average number of common shares outstanding – Basic 83,144 71,534 Net income per common share – Basic $ 2.25 $ 0.89 NET INCOME PER SHARE—DILUTED: Net income available to common stockholders – Diluted $ 187,146 $ 63,419 Weighted average number of common shares outstanding – Basic 83,144 71,534 Assumed restricted stock - nonparticipating 147 282 Assumed exercise of stock options 757 941 Assumed performance units 341 367 Weighted average number of common shares outstanding – Diluted 84,389 73,124 Net income per common share – Diluted $ 2.22 $ 0.87 Potentially dilutive securities excluded as anti-dilutive 24 14,102 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt as of the periods presented consisted of the following: June 30, March 31, (In thousands) Term Loan Facility $ 432,500 $ 434,250 Senior Notes due 2027 350,000 350,000 Senior Notes due 2030 500,000 — Revolving Credit Facility — 114,300 Equipment Financing 27,668 31,254 Total 1,310,168 929,804 Unamortized debt issuance costs (12,879) (1,648) Current maturities (18,113) (19,451) Long-term debt obligations $ 1,279,176 $ 908,705 |
Summary of Carrying And Fair Value of Senior Notes | The following table presents the carrying and fair value of the Company’s 2027 Notes, 2030 Notes and Equipment Financing for the periods presented: June 30, 2022 March 31, 2022 Fair Value Carrying Value Fair Value Carrying Value (In thousands) Senior Notes due 2027 $ 324,198 $ 350,000 $ 349,902 $ 350,000 Senior Notes due 2030 489,580 500,000 — — Equipment Financing 26,784 27,668 29,302 31,254 Total fair value $ 840,562 $ 877,668 $ 379,204 $ 381,254 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-based Compensation Expense | The Company recognized stock-based compensation expense in the following line items of the Condensed Consolidated Statements of Operations for the periods presented: Three Months Ended 2022 2021 (In thousands) Component of income before income taxes: Cost of goods sold $ 674 $ 634 Selling, general and administrative expenses 5,599 6,017 Total stock-based compensation expense $ 6,273 $ 6,651 The following table summarizes stock-based compensation expense by award type for the periods presented: Three Months Ended 2022 2021 (In thousands) Stock-based compensation expense: Stock Options $ 1,279 $ 753 Restricted Stock 1,761 1,359 Performance-based Restricted Stock Units 2,740 4,188 Non-Employee Directors 493 351 Total stock-based compensation expense $ 6,273 $ 6,651 |
Summary of Assumption Used to Estimate Fair Value of Stock Options | The following table summarizes the assumptions used to estimate the fair value of stock-options during the periods presented: Three Months Ended Common stock price $99.29 Expected stock price volatility 41.1% Risk-free interest rate 2.9% Weighted-average expected option life (years) 6 Dividend yield 0.48% |
Business Segments Information (
Business Segments Information (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
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, 2022 June 30, 2021 (In thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 524,857 $ (9,874) $ 514,983 $ 374,010 $ (1,903) $ 372,107 Infiltrator 166,290 (28,906) 137,384 126,742 (19,037) 107,705 International International - Pipe 53,419 (5,859) 47,560 50,838 (2,914) 47,924 International - Allied Products & Other 18,095 — 18,095 14,528 — 14,528 Total International 71,514 (5,859) 65,655 65,366 (2,914) 62,452 Allied Products & Other 198,909 (2,745) 196,164 127,036 — 127,036 Intersegment Eliminations (47,384) 47,384 — (23,854) 23,854 — Total Consolidated $ 914,186 $ — $ 914,186 $ 669,300 $ — $ 669,300 |
Schedule of Financial Information Attributable to Reportable Segments | The following sets forth certain financial information attributable to the reportable segments for the periods presented: Three Months Ended 2022 2021 (In thousands) Segment Adjusted Gross Profit Pipe $ 168,579 $ 84,143 Infiltrator 75,794 59,402 International 20,484 21,378 Allied Products & Other 109,041 63,299 Intersegment Eliminations (815) (14) Total $ 373,083 $ 228,208 Depreciation and Amortization Pipe $ 12,865 $ 12,035 Infiltrator 4,867 3,436 International 1,371 1,458 Allied Products & Other (a) 16,475 17,727 Total $ 35,578 $ 34,656 Capital Expenditures Pipe $ 20,274 $ 9,830 Infiltrator 12,532 13,026 International 913 250 Allied Products & Other (a) 2,470 2,440 Total $ 36,189 $ 25,546 (a) Includes depreciation, amortization and capital expenditures not allocated to a reportable segment. The amortization expense of Infiltrator intangible assets acquired is included in Allied Products & Other. |
Reconciliation of Gross Profit to Segment Adjusted Gross Profit | Reconciliation of Gross Profit to Segment Adjusted Gross Profit Three Months Ended 2022 2021 (In thousands) Reconciliation of Segment Adjusted Gross Profit: Total Gross Profit $ 352,107 $ 201,121 Depreciation and Amortization 20,302 17,532 ESOP and stock-based compensation expense 674 9,555 Total Segment Adjusted Gross Profit $ 373,083 $ 228,208 |
Background and Summary of Sig_3
Background and Summary of Significant Accounting Policies (Detail) | 3 Months Ended |
Jun. 30, 2022 segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 3 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 29, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 619,626 | $ 610,293 | |
Cultec | |||
Business Acquisition [Line Items] | |||
Total fair value of consideration transferred | $ 47,500 | ||
Goodwill | 9,660 | ||
Transaction costs related to Acquisition | $ 1,500 | ||
Intangible assets | $ 31,400 |
Acquisitions - Summary of Consi
Acquisitions - Summary of Consideration Transferred and Preliminary Purchase Price Allocation of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Apr. 29, 2022 | Mar. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 619,626 | $ 610,293 | |
Cultec | |||
Business Acquisition [Line Items] | |||
Accounts receivable | $ 5,957 | ||
Inventory | 4,469 | ||
Intangible assets | 31,400 | ||
Goodwill | 9,660 | ||
Property, plant and equipment | 1,986 | ||
Accounts payable | (5,539) | ||
Accrued expenses | (75) | ||
Other liabilities | (366) | ||
Total fair value of consideration transferred | $ 47,492 |
Acquisitions - Summary of Ident
Acquisitions - Summary of Identifiable Intangible Assets (Detail) - Cultec $ in Thousands | Apr. 29, 2022 USD ($) |
Business Acquisition [Line Items] | |
Total identifiable intangible assets | $ 31,400 |
Customer relationships | |
Business Acquisition [Line Items] | |
Total identifiable intangible assets | 2,800 |
Patents and developed technology | |
Business Acquisition [Line Items] | |
Total identifiable intangible assets | 16,200 |
Tradename and trademarks | |
Business Acquisition [Line Items] | |
Total identifiable intangible assets | $ 12,400 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Contract Asset and Liability (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract asset - product returns | $ 1,061 | $ 978 |
Refund liability | $ 2,940 | $ 2,356 |
Leases (Detail)
Leases (Detail) | 3 Months Ended |
Jun. 30, 2022 | |
Minimum | |
Lessee Lease Description [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Lessee Lease Description [Line Items] | |
Remaining lease term | 28 years |
Maximum | Yard | |
Lessee Lease Description [Line Items] | |
Lease renewal term | 5 years |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 148,527 | $ 156,050 |
Finished goods | 340,965 | 338,274 |
Total inventories | $ 489,492 | $ 494,324 |
Net Income Per Share and Stoc_3
Net Income Per Share and Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2022 | Feb. 28, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity Class Of Treasury Stock [Line Items] | ||||
Share repurchases (in shares) | 800,000 | |||
Stock repurchased during period | $ 67,361 | $ 115,378 | ||
Stock repurchase program, additional amount authorized | $ 1,000,000 | |||
Stock repurchase program, authorized amount | $ 932,600 | |||
Employee Stock Ownership Plan E S O P Plan | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Conversion rate | 0.7692 | |||
Employee Stock Ownership Plan E S O P Plan | Redeemable Convertible Preferred Stock | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Temporary equity, conversion of convertible securities (in shares) | (15,600,000) | |||
Employee Stock Ownership Plan E S O P Plan | Redeemable Common Stock | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Temporary equity, conversion of convertible securities (in shares) | 12,000,000 |
Net Income Per Share and Stoc_4
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, 2022 | Jun. 30, 2021 | |
NET INCOME PER SHARE—BASIC: | ||
Net income attributable to ADS | $ 187,146 | $ 75,987 |
Adjustments for: | ||
Dividends to participating securities | 0 | (1,635) |
Net income available to common stockholders and participating securities | 187,146 | 74,352 |
Undistributed income allocated to participating securities | 0 | (10,933) |
Net income available to common stockholders – Basic | $ 187,146 | $ 63,419 |
Weighted average number of common shares outstanding – Basic (in shares) | 83,144 | 71,534 |
Net income per common share - Basic (in dollars per share) | $ 2.25 | $ 0.89 |
NET INCOME PER SHARE—DILUTED: | ||
Net income available to common stockholders – Diluted | $ 187,146 | $ 63,419 |
Weighted average number of common shares outstanding – Basic (in shares) | 83,144 | 71,534 |
Weighted average number of common shares outstanding – Diluted (in shares) | 84,389 | 73,124 |
Net income per common share - Diluted (in dollars per share) | $ 2.22 | $ 0.87 |
Potentially dilutive securities excluded as anti-dilutive (in shares) | 24 | 14,102 |
Assumed restricted stock - nonparticipating | ||
NET INCOME PER SHARE—DILUTED: | ||
Dilutive securities (in shares) | 147 | 282 |
Assumed exercise of stock options | ||
NET INCOME PER SHARE—DILUTED: | ||
Dilutive securities (in shares) | 757 | 941 |
Assumed performance units | ||
NET INCOME PER SHARE—DILUTED: | ||
Dilutive securities (in shares) | 341 | 367 |
Related Party Transactions (Det
Related Party Transactions (Detail) - USD ($) | 3 Months Ended | ||
Jun. 30, 2022 | Jun. 06, 2022 | Mar. 31, 2022 | |
South American Joint Venture | |||
Related Party Transaction [Line Items] | |||
Maximum borrowings permitted under credit facility | $ 22,000,000 | ||
Company's ownership percentage | 50% | ||
Percentage of debt guarantee | 50% | ||
Maximum potential payment under guarantee | $ 11,000,000 | ||
Outstanding principal balance including letters of credit | 8,600,000 | $ 9,900,000 | |
South American Joint Venture | US Dollar Denominated Loans | |||
Related Party Transaction [Line Items] | |||
Outstanding principal balance including letters of credit | $ 0 | ||
South American Joint Venture | Chilean Peso Denominated Loans | |||
Related Party Transaction [Line Items] | |||
Weighted average interest rate | 5.80% | ||
Consolidated Entity, Excluding Consolidated VIE | |||
Related Party Transaction [Line Items] | |||
Maximum borrowings permitted under credit facility | $ 9,500,000 | ||
Maximum borrowings permitted under credit facility | $ 0 | $ 1,500,000 | |
Consolidated Entity, Excluding Consolidated VIE | ADS Mexicana | |||
Related Party Transaction [Line Items] | |||
Company's ownership percentage | 51% | ||
Percentage of ownership in joint venture | 49% |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt , gross | $ 1,310,168 | $ 929,804 |
Unamortized debt issuance costs | (12,879) | (1,648) |
Current maturities | (18,113) | (19,451) |
Long-term debt obligations | 1,279,176 | 908,705 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 0 | 114,300 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 432,500 | 434,250 |
Senior Notes | Senior Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 350,000 | 350,000 |
Senior Notes | Senior Notes due 2030 | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 500,000 | 0 |
Equipment Financing | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 27,668 | $ 31,254 |
Current maturities | (11,100) | |
Long-term debt obligations | $ 16,600 |
Debt - Senior Secured Credit Fa
Debt - Senior Secured Credit Facility (Detail) $ in Millions | 1 Months Ended | |||
May 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2019 USD ($) | |
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowings permitted under credit facility | $ 600 | $ 350 | ||
Leverage ratio, maximum for variable rate step-down | 2 | |||
Outstanding letters of credit | $ 5.2 | $ 9.2 | ||
Revolving Credit Facility | Term Benchmark Based Loans Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Revolving Credit Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Letter of Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowings permitted under credit facility | 50 | |||
Sublimit of Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowings permitted under credit facility | $ 60 | 50 | ||
Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 700 |
Debt - Senior Notes (Detail)
Debt - Senior Notes (Detail) - USD ($) $ in Millions | Jun. 09, 2022 | Sep. 23, 2019 |
Senior Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 350 | |
Debt instrument, interest rate | 5% | |
Senior Notes due 2030 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 500 | |
Debt instrument, interest rate | 6.375% | |
Deferred financing costs | $ 9 | |
Senior Notes due 2030 | Debt Instrument, Redemption, Period One | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price, percentage of principal amount redeemed, excluding make whole premium | 100% | |
Debt instrument, redemption price, percentage of principal amount redeemed | 106.375% | |
Senior Notes due 2030 | Debt Instrument, Redemption, Period One | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price, percentage | 40% |
Debt - Equipment Financing (Det
Debt - Equipment Financing (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | ||
Current maturities of debt obligations | $ 18,113 | $ 19,451 |
Long-term debt obligations | $ 1,279,176 | $ 908,705 |
Equipment Financing | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate of equipment financing | 1.40% | |
Current maturities of debt obligations | $ 11,100 | |
Long-term debt obligations | $ 16,600 | |
Minimum | Equipment Financing | ||
Debt Instrument [Line Items] | ||
Equipment financing term | 12 months | |
Maximum | Equipment Financing | ||
Debt Instrument [Line Items] | ||
Equipment financing term | 84 months |
Debt - Valuation of Debt (Detai
Debt - Valuation of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | $ 840,562 | $ 379,204 |
Fair Value | Equipment Financing | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | 26,784 | 29,302 |
Carrying Value | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | 877,668 | 381,254 |
Carrying Value | Equipment Financing | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | 27,668 | 31,254 |
Senior Notes due 2027 | Fair Value | Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | 324,198 | 349,902 |
Senior Notes due 2027 | Carrying Value | Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | 350,000 | 350,000 |
Senior Notes due 2030 | Fair Value | Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | 489,580 | 0 |
Senior Notes due 2030 | Carrying Value | Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | $ 500,000 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - Inventory | 3 Months Ended |
Jun. 30, 2022 USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Total purchase commitment | $ 0 |
Minimum | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase commitment contract period | 1 month |
Maximum | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase commitment contract period | 12 months |
Income Taxes (Detail)
Income Taxes (Detail) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 22.70% | 25.60% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Additional stock-based compensation expense | $ 6,273 | $ 6,651 |
Non-Employee Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Additional stock-based compensation expense | 493 | 351 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Additional stock-based compensation expense | 1,279 | 753 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Additional stock-based compensation expense | 1,761 | 1,359 |
Performance-based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Additional stock-based compensation expense | 2,740 | 4,188 |
Cost of goods sold | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Additional stock-based compensation expense | 674 | 634 |
Selling, general and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Additional stock-based compensation expense | $ 5,599 | $ 6,017 |
Stock-Based Compensation (2017
Stock-Based Compensation (2017 Omnibus Plan) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | May 24, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock awards | $ (2,457) | $ (3,230) | |
2017 Omnibus Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock awards (in shares) | 100,000 | ||
Restricted stock awards | $ 8,500 | ||
2017 Omnibus Plan | Performance-based Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of performance units granted (in shares) | 100,000 | ||
Number of performance units granted, value | $ 6,600 | ||
2017 Omnibus Plan | Assumed exercise of stock options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of stock options granted (in shares) | 100,000 | ||
Number of stock options granted, value | $ 5,500 | ||
2017 Omnibus Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock approved for issuance (in shares) | 5,000,000 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Assumption Used to Estimate Fair Value of Stock Options (Detail) | 3 Months Ended |
Jun. 30, 2022 $ / shares | |
Share-Based Payment Arrangement [Abstract] | |
Common stock price (in dollars per share) | $ 99.29 |
Expected stock price volatility | 41.10% |
Risk-free interest rate | 2.90% |
Weighted-average expected option life (years) | 6 years |
Dividend yield | 0.48% |
Business Segments Information -
Business Segments Information - Additional Information (Detail) | 3 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segments Information_2
Business Segments Information - Schedule of Revenue from Reportable Segments by Product Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||
Net Sales | $ 914,186 | $ 669,300 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net Sales | (47,384) | (23,854) |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 47,384 | 23,854 |
Pipe | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 514,983 | 372,107 |
Pipe | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 524,857 | 374,010 |
Pipe | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net Sales | (9,874) | (1,903) |
Infiltrator | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 137,384 | 107,705 |
Infiltrator | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 166,290 | 126,742 |
Infiltrator | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net Sales | (28,906) | (19,037) |
International | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 65,655 | 62,452 |
International | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 71,514 | 65,366 |
International | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net Sales | (5,859) | (2,914) |
International | International - Pipe | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 47,560 | 47,924 |
International | International - Pipe | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 53,419 | 50,838 |
International | International - Pipe | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net Sales | (5,859) | (2,914) |
International | International - Allied Products & Other | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 18,095 | 14,528 |
International | International - Allied Products & Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 18,095 | 14,528 |
Allied Products & Other | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 196,164 | 127,036 |
Allied Products & Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 198,909 | 127,036 |
Allied Products & Other | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ (2,745) | $ 0 |
Business Segments Information_3
Business Segments Information - Schedule of Financial Information Attributable to Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||
Segment Adjusted Gross Profit | $ 373,083 | $ 228,208 |
Depreciation and Amortization | 35,578 | 34,656 |
Capital Expenditures | 36,189 | 25,546 |
Operating Segments | Pipe | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted Gross Profit | 168,579 | 84,143 |
Depreciation and Amortization | 12,865 | 12,035 |
Capital Expenditures | 20,274 | 9,830 |
Operating Segments | Infiltrator | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted Gross Profit | 75,794 | 59,402 |
Depreciation and Amortization | 4,867 | 3,436 |
Capital Expenditures | 12,532 | 13,026 |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted Gross Profit | 20,484 | 21,378 |
Depreciation and Amortization | 1,371 | 1,458 |
Capital Expenditures | 913 | 250 |
Operating Segments | Allied Products & Other | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted Gross Profit | 109,041 | 63,299 |
Depreciation and Amortization | 16,475 | 17,727 |
Capital Expenditures | 2,470 | 2,440 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted Gross Profit | $ (815) | $ (14) |
Business Segments Information_4
Business Segments Information - Reconciliation of Gross Profit to Segment Adjusted Gross Profit (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Gross profit | $ 352,107 | $ 201,121 |
Total Segment Adjusted Gross Profit | 373,083 | 228,208 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Depreciation and Amortization | 20,302 | 17,532 |
ESOP and stock-based compensation expense | $ 674 | $ 9,555 |
Subsequent Events (Detail)
Subsequent Events (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Aug. 04, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jul. 21, 2022 | |
Subsequent Event [Line Items] | ||||
Common stock dividends per share (in dollars per share) | $ 0.12 | $ 0.11 | ||
Share repurchases (in shares) | 800,000 | |||
Stock repurchased during period | $ 67,361 | $ 115,378 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Common stock dividends per share (in dollars per share) | $ 0.12 | |||
Share repurchases (in shares) | 600,000 | |||
Stock repurchased during period | $ 57,700 | |||
Subsequent Event | Employee Stock | ||||
Subsequent Event [Line Items] | ||||
Common stock approved for issuance (in shares) | 400,000 |