Cover
Cover - shares | 6 Months Ended | |
Sep. 30, 2023 | Oct. 25, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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, $0.01 par value per share | |
Trading Symbol(s) | WMS | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 77,907,836 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001604028 | |
Current Fiscal Year End Date | --03-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 31, 2023 |
Current assets: | ||
Cash | $ 470,409 | $ 217,128 |
Receivables (less allowance for doubtful accounts of $6,678 and $8,227, respectively) | 352,562 | 306,945 |
Inventories | 385,090 | 463,994 |
Other current assets | 23,855 | 29,422 |
Total current assets | 1,231,916 | 1,017,489 |
Property, plant and equipment, net | 773,993 | 733,059 |
Other assets: | ||
Goodwill | 620,165 | 620,193 |
Intangible assets, net | 382,050 | 407,627 |
Other assets | 129,850 | 122,757 |
Total assets | 3,137,974 | 2,901,125 |
Current liabilities: | ||
Current maturities of debt obligations | 12,950 | 14,693 |
Current maturities of finance lease obligations | 11,698 | 8,541 |
Accounts payable | 223,536 | 210,111 |
Other accrued liabilities | 158,784 | 142,400 |
Accrued income taxes | 20,899 | 3,057 |
Total current liabilities | 427,867 | 378,802 |
Long-term debt obligations (less unamortized debt issuance costs of $10,782 and $11,804, respectively) | 1,264,197 | 1,269,391 |
Long-term finance lease obligations | 31,729 | 32,272 |
Deferred tax liabilities | 159,060 | 159,056 |
Other liabilities | 72,942 | 66,744 |
Total liabilities | 1,955,795 | 1,906,265 |
Commitments and contingencies (see Note 9) | ||
Mezzanine equity: | ||
Redeemable common stock: $0.01 par value; 8,206 and 9,429 shares outstanding, respectively | 133,349 | 153,220 |
Total mezzanine equity | 133,349 | 153,220 |
Stockholders’ equity: | ||
Common stock; $0.01 par value: 1,000,000 shares authorized; 80,635 and 79,057 shares issued, respectively; 70,018 and 69,518 shares outstanding, respectively | 11,663 | 11,647 |
Paid-in capital | 1,173,574 | 1,134,864 |
Common stock in treasury, at cost | (1,039,717) | (920,999) |
Accumulated other comprehensive loss | (29,658) | (27,580) |
Retained earnings | 913,551 | 626,215 |
Total ADS stockholders’ equity | 1,029,413 | 824,147 |
Noncontrolling interest in subsidiaries | 19,417 | 17,493 |
Total stockholders’ equity | 1,048,830 | 841,640 |
Total liabilities, mezzanine equity and stockholders’ equity | $ 3,137,974 | $ 2,901,125 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 31, 2023 |
Allowance for doubtful accounts | $ 6,678 | $ 8,227 |
Unamortized debt issuance costs | $ 10,782 | $ 11,804 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 80,635,000 | 79,057,000 |
Common stock, shares outstanding (in shares) | 70,018,000 | 69,518,000 |
Redeemable Common Stock | ||
Mezzanine equity, par value per share | $ 0.01 | $ 0.01 |
Mezzanine equity, shares outstanding (in shares) | 8,206,000 | 9,429,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 780,220,000 | $ 884,209,000 | $ 1,558,266,000 | $ 1,798,395,000 |
Cost of goods sold | 477,543,000 | 564,246,000 | 924,129,000 | 1,126,325,000 |
Gross profit | 302,677,000 | 319,963,000 | 634,137,000 | 672,070,000 |
Operating expenses: | ||||
Selling, general and administrative | 91,725,000 | 88,639,000 | 178,236,000 | 175,159,000 |
Loss (gain) on disposal of assets and costs from exit and disposal activities | 123,000 | (102,000) | (13,181,000) | 201,000 |
Intangible amortization | 12,792,000 | 13,841,000 | 25,594,000 | 27,518,000 |
Income from operations | 198,037,000 | 217,585,000 | 443,488,000 | 469,192,000 |
Other expense: | ||||
Interest expense | 21,941,000 | 18,261,000 | 43,653,000 | 29,333,000 |
Derivative (gain) loss and other (income) expense, net | (7,506,000) | 395,000 | (11,055,000) | (1,507,000) |
Income before income taxes | 183,602,000 | 198,929,000 | 410,890,000 | 441,366,000 |
Income tax expense | 47,476,000 | 47,508,000 | 102,534,000 | 102,573,000 |
Equity in net income of unconsolidated affiliates | (901,000) | (1,956,000) | (2,576,000) | (3,066,000) |
Net income | 137,027,000 | 153,377,000 | 310,932,000 | 341,859,000 |
Less: net income attributable to noncontrolling interest | 1,225,000 | 1,370,000 | 1,478,000 | 2,706,000 |
Net income attributable to ADS | $ 135,802,000 | $ 152,007,000 | $ 309,454,000 | $ 339,153,000 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 78,606 | 83,466 | 78,756 | 83,306 |
Diluted (in shares) | 79,307 | 84,498 | 79,475 | 84,485 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.73 | $ 1.82 | $ 3.93 | $ 4.07 |
Diluted (in dollars per share) | $ 1.71 | $ 1.80 | $ 3.89 | $ 4.01 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 137,027,000 | $ 153,377,000 | $ 310,932,000 | $ 341,859,000 |
Currency translation loss | (4,864,000) | (5,763,000) | (1,632,000) | (9,661,000) |
Comprehensive income | 132,163,000 | 147,614,000 | 309,300,000 | 332,198,000 |
Less: other comprehensive (income) loss attributable to noncontrolling interest | (605,000) | (277,000) | 446,000 | (272,000) |
Less: net income attributable to noncontrolling interest | 1,225,000 | 1,370,000 | 1,478,000 | 2,706,000 |
Total comprehensive income attributable to ADS | $ 131,543,000 | $ 146,521,000 | $ 307,376,000 | $ 329,764,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net income | $ 310,932,000 | $ 341,859,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 73,961,000 | 71,500,000 |
Deferred income taxes | 519,000 | (3,117,000) |
(Gain) loss on disposal of assets and costs from exit and disposal activities | (13,181,000) | 201,000 |
Stock-based compensation | 16,234,000 | 13,733,000 |
Amortization of deferred financing charges | 1,022,000 | 398,000 |
Fair market value adjustments to derivatives | (1,889,000) | 2,183,000 |
Equity in net income of unconsolidated affiliates | (2,576,000) | (3,066,000) |
Other operating activities | 756,000 | (713,000) |
Changes in working capital: | ||
Receivables | (43,530,000) | (43,680,000) |
Inventories | 79,215,000 | 15,799,000 |
Prepaid expenses and other current assets | (2,228,000) | (7,776,000) |
Accounts payable, accrued expenses, and other liabilities | 39,629,000 | 49,703,000 |
Net cash provided by operating activities | 458,864,000 | 437,024,000 |
Cash Flows from Investing Activities | ||
Capital expenditures | (82,625,000) | (75,545,000) |
Proceeds from Sale of Productive Assets | 19,979,000 | 0 |
Acquisition, net of cash acquired | 0 | (48,010,000) |
Other investing activities | 446,000 | 46,000 |
Net cash used in investing activities | (62,200,000) | (123,509,000) |
Cash Flows from Financing Activities | ||
Payments on syndicated Term Loan Facility | (3,500,000) | (3,500,000) |
Proceeds from Senior Notes due 2030 | 0 | 500,000,000 |
Debt issuance costs | 0 | (11,575,000) |
Payments on Equipment Financing | (4,458,000) | (7,104,000) |
Payments on finance lease obligations | (5,452,000) | (3,153,000) |
Repurchase of common stock | (101,564,000) | (192,602,000) |
Cash dividends paid | (22,224,000) | (20,367,000) |
Dividends paid to noncontrolling interest holder | 0 | (1,727,000) |
Proceeds from exercise of stock options | 2,623,000 | 4,660,000 |
Payment of withholding taxes on vesting of restricted stock units | (8,811,000) | (25,512,000) |
Net cash (used in) provided by financing activities | (143,386,000) | 124,820,000 |
Effect of exchange rate changes on cash | 3,000 | (1,103,000) |
Net change in cash | 253,281,000 | 437,232,000 |
Cash at beginning of period | 217,128,000 | 20,125,000 |
Cash at end of period | 470,409,000 | 457,357,000 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for income taxes | 78,300,000 | 101,470,000 |
Cash paid for interest | 33,464,000 | 18,276,000 |
Non-cash operating, investing and financing activities: | ||
Repurchase of common stock pending settlement | 7,500,000 | 2,561,000 |
Excise tax accrual, share repurchase | 843,000 | 0 |
Acquisition of property, plant and equipment under finance lease and incurred lease obligations | 9,827,000 | 6,681,000 |
Balance in accounts payable for the acquisition of property, plant and equipment | 25,199,000 | 15,631,000 |
Revolving Credit Agreement | ||
Cash Flows from Financing Activities | ||
Proceeds from Revolving Credit Agreement | 0 | 26,200,000 |
Payments on Revolving Credit Agreement | 0 | (140,500,000) |
Amended Revolving Credit Facility | ||
Cash Flows from Financing Activities | ||
Proceeds from Revolving Credit Agreement | 0 | 97,000,000 |
Payments on Revolving Credit Agreement | $ 0 | $ (97,000,000) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity and Mezzanine Equity (Unaudited) - USD ($) shares in Thousands | Total | Total Mezzanine Equity | Total Mezzanine Equity KSOP redeemable common stock conversion | Total Mezzanine Equity ESOP share conversion | Redeemable Common Stock | Redeemable Common Stock KSOP redeemable common stock conversion | Redeemable Common Stock ESOP share conversion | Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred Stock ESOP share conversion | Total ADS Stockholders’ Equity | Common Stock | Paid -In Capital | Common Stock in Treasury | Accumulated Other Compre-hensive Loss | Retained Earnings | Non- controlling Interest in Subsidiaries |
Beginning balance, common stock (in shares) at Mar. 31, 2022 | 75,529 | |||||||||||||||
Beginning balance, treasury stock (in shares) at Mar. 31, 2022 | 3,220 | |||||||||||||||
Beginning balance at Mar. 31, 2022 | $ 909,661,000 | $ 893,039,000 | $ 11,612,000 | $ 1,065,628,000 | $ (318,691,000) | $ (24,386,000) | $ 158,876,000 | $ 16,622,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Performance-based restricted stock units (in shares) | 527 | 205 | ||||||||||||||
Performance-based restricted stock units | (20,346,000) | (20,346,000) | $ 5,000 | $ (20,351,000) | ||||||||||||
Ending balance, common stock (in shares) at Jun. 30, 2022 | 76,607 | |||||||||||||||
Ending balance, treasury stock (in shares) at Jun. 30, 2022 | 4,221 | |||||||||||||||
Ending balance at Jun. 30, 2022 | 1,007,959,000 | 989,996,000 | $ 11,623,000 | 1,079,701,000 | $ (408,861,000) | (28,289,000) | 335,822,000 | 17,963,000 | ||||||||
Mezzanine equity, beginning balance (in shares) at Mar. 31, 2022 | 0 | 15,630 | ||||||||||||||
Mezzanine equity, beginning balance at Mar. 31, 2022 | $ 195,384,000 | $ 0 | $ 195,384,000 | |||||||||||||
Mezzanine equity, ending balance (in shares) at Jun. 30, 2022 | 11,619 | 0 | ||||||||||||||
Mezzanine equity, ending balance at Jun. 30, 2022 | 188,828,000 | $ 188,828,000 | $ 0 | |||||||||||||
Beginning balance, common stock (in shares) at Mar. 31, 2022 | 75,529 | |||||||||||||||
Beginning balance, treasury stock (in shares) at Mar. 31, 2022 | 3,220 | |||||||||||||||
Beginning balance at Mar. 31, 2022 | 909,661,000 | 893,039,000 | $ 11,612,000 | 1,065,628,000 | $ (318,691,000) | (24,386,000) | 158,876,000 | 16,622,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 341,859,000 | 339,153,000 | 339,153,000 | 2,706,000 | ||||||||||||
Other comprehensive loss | (9,661,000) | (9,389,000) | (9,389,000) | (272,000) | ||||||||||||
Common stock dividends | (20,239,000) | (20,239,000) | (20,239,000) | |||||||||||||
Share repurchases (in shares) | 1,865 | |||||||||||||||
Share repurchases | (195,163,000) | (195,163,000) | $ (195,163,000) | |||||||||||||
Dividends paid to noncontrolling interest holder | 1,727,000 | (1,727,000) | ||||||||||||||
KSOP redeemable common stock conversion (in shares) | 2,182 | |||||||||||||||
KSOP redeemable common stock conversion | 35,456,000 | 35,456,000 | $ 22,000 | 35,434,000 | ||||||||||||
Exercise of common stock options (in shares) | 183 | |||||||||||||||
Exercise of common stock options | 4,660,000 | 4,660,000 | $ 2,000 | 4,658,000 | ||||||||||||
Restricted stock awards (in shares) | 98 | 24 | ||||||||||||||
Restricted stock awards | (2,491,000) | (2,491,000) | $ 1,000 | $ (2,492,000) | ||||||||||||
Stock-based compensation expense | 13,733,000 | 13,733,000 | 13,733,000 | |||||||||||||
Ending balance, common stock (in shares) at Sep. 30, 2022 | 78,519 | |||||||||||||||
Ending balance, treasury stock (in shares) at Sep. 30, 2022 | 5,314 | |||||||||||||||
Ending balance at Sep. 30, 2022 | 1,055,742,000 | 1,038,413,000 | $ 11,642,000 | 1,119,453,000 | $ (536,697,000) | (33,775,000) | 477,790,000 | 17,329,000 | ||||||||
Mezzanine equity, beginning balance (in shares) at Mar. 31, 2022 | 0 | 15,630 | ||||||||||||||
Mezzanine equity, beginning balance at Mar. 31, 2022 | 195,384,000 | $ 0 | $ 195,384,000 | |||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||||
Conversion of convertible securities (in shares) | (2,182) | 12,022 | (15,630) | |||||||||||||
Temporary equity, conversion of convertible securities | $ (35,456,000) | $ 0 | $ (35,456,000) | $ 195,384,000 | $ (195,384,000) | |||||||||||
Mezzanine equity, ending balance (in shares) at Sep. 30, 2022 | 9,840 | 0 | ||||||||||||||
Mezzanine equity, ending balance at Sep. 30, 2022 | 159,928,000 | $ 159,928,000 | $ 0 | |||||||||||||
Beginning balance, common stock (in shares) at Jun. 30, 2022 | 76,607 | |||||||||||||||
Beginning balance, treasury stock (in shares) at Jun. 30, 2022 | 4,221 | |||||||||||||||
Beginning balance at Jun. 30, 2022 | 1,007,959,000 | 989,996,000 | $ 11,623,000 | 1,079,701,000 | $ (408,861,000) | (28,289,000) | 335,822,000 | 17,963,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 153,377,000 | 152,007,000 | 152,007,000 | 1,370,000 | ||||||||||||
Other comprehensive loss | (5,763,000) | (5,486,000) | (5,486,000) | (277,000) | ||||||||||||
Common stock dividends | (10,039,000) | (10,039,000) | (10,039,000) | |||||||||||||
Share repurchases (in shares) | 1,093 | |||||||||||||||
Share repurchases | (127,802,000) | (127,802,000) | $ (127,802,000) | |||||||||||||
Dividends paid to noncontrolling interest holder | 1,727,000 | (1,727,000) | ||||||||||||||
KSOP redeemable common stock conversion (in shares) | 1,779 | |||||||||||||||
KSOP redeemable common stock conversion | 28,900,000 | 28,900,000 | $ 18,000 | 28,882,000 | ||||||||||||
Exercise of common stock options (in shares) | 116 | |||||||||||||||
Exercise of common stock options | 3,411,000 | 3,411,000 | $ 1,000 | 3,410,000 | ||||||||||||
Restricted stock awards (in shares) | 17 | 0 | ||||||||||||||
Restricted stock awards | (34,000) | (34,000) | $ 0 | $ (34,000) | ||||||||||||
Stock-based compensation expense | 7,460,000 | 7,460,000 | 7,460,000 | |||||||||||||
Ending balance, common stock (in shares) at Sep. 30, 2022 | 78,519 | |||||||||||||||
Ending balance, treasury stock (in shares) at Sep. 30, 2022 | 5,314 | |||||||||||||||
Ending balance at Sep. 30, 2022 | $ 1,055,742,000 | 1,038,413,000 | $ 11,642,000 | 1,119,453,000 | $ (536,697,000) | (33,775,000) | 477,790,000 | 17,329,000 | ||||||||
Mezzanine equity, beginning balance (in shares) at Jun. 30, 2022 | 11,619 | 0 | ||||||||||||||
Mezzanine equity, beginning balance at Jun. 30, 2022 | 188,828,000 | $ 188,828,000 | $ 0 | |||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||||
Conversion of convertible securities (in shares) | (1,779) | |||||||||||||||
Temporary equity, conversion of convertible securities | (28,900,000) | $ (28,900,000) | ||||||||||||||
Mezzanine equity, ending balance (in shares) at Sep. 30, 2022 | 9,840 | 0 | ||||||||||||||
Mezzanine equity, ending balance at Sep. 30, 2022 | 159,928,000 | $ 159,928,000 | $ 0 | |||||||||||||
Beginning balance, common stock (in shares) at Mar. 31, 2023 | 69,518 | 79,057 | ||||||||||||||
Beginning balance, treasury stock (in shares) at Mar. 31, 2023 | 9,539 | |||||||||||||||
Beginning balance at Mar. 31, 2023 | $ 841,640,000 | 824,147,000 | $ 11,647,000 | 1,134,864,000 | $ (920,999,000) | (27,580,000) | 626,215,000 | 17,493,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 310,932,000 | 309,454,000 | 309,454,000 | 1,478,000 | ||||||||||||
Other comprehensive loss | (1,632,000) | (2,078,000) | (2,078,000) | 446,000 | ||||||||||||
Common stock dividends | (22,118,000) | (22,118,000) | (22,118,000) | |||||||||||||
Share repurchases (in shares) | 981 | |||||||||||||||
Share repurchases | (109,907,000) | (109,907,000) | $ (109,907,000) | |||||||||||||
KSOP redeemable common stock conversion (in shares) | 1,223 | |||||||||||||||
KSOP redeemable common stock conversion | 19,871,000 | 19,871,000 | $ 12,000 | 19,859,000 | ||||||||||||
Exercise of common stock options (in shares) | 56 | |||||||||||||||
Exercise of common stock options | 2,623,000 | 2,623,000 | $ 1,000 | 2,622,000 | ||||||||||||
Restricted stock awards (in shares) | 99 | 25 | ||||||||||||||
Restricted stock awards | (2,414,000) | (2,414,000) | $ 1,000 | $ (2,415,000) | ||||||||||||
Stock-based compensation expense | 16,234,000 | 16,234,000 | 16,234,000 | |||||||||||||
Performance-based restricted stock units (in shares) | 200 | 72 | ||||||||||||||
Performance-based restricted stock units | (6,394,000) | (6,394,000) | $ 2,000 | $ (6,396,000) | ||||||||||||
Other | $ (5,000) | (5,000) | (5,000) | |||||||||||||
Ending balance, common stock (in shares) at Sep. 30, 2023 | 70,018 | 80,635 | ||||||||||||||
Ending balance, treasury stock (in shares) at Sep. 30, 2023 | 10,617 | |||||||||||||||
Ending balance at Sep. 30, 2023 | $ 1,048,830,000 | 1,029,413,000 | $ 11,663,000 | 1,173,574,000 | $ (1,039,717,000) | (29,658,000) | 913,551,000 | 19,417,000 | ||||||||
Mezzanine equity, beginning balance (in shares) at Mar. 31, 2023 | 9,429 | |||||||||||||||
Mezzanine equity, beginning balance at Mar. 31, 2023 | 153,220,000 | 153,220,000 | $ 153,220,000 | |||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||||
Conversion of convertible securities (in shares) | (1,223) | |||||||||||||||
Temporary equity, conversion of convertible securities | (19,871,000) | $ (19,871,000) | ||||||||||||||
Mezzanine equity, ending balance (in shares) at Sep. 30, 2023 | 8,206 | |||||||||||||||
Mezzanine equity, ending balance at Sep. 30, 2023 | 133,349,000 | 133,349,000 | $ 133,349,000 | |||||||||||||
Beginning balance, common stock (in shares) at Jun. 30, 2023 | 79,651 | |||||||||||||||
Beginning balance, treasury stock (in shares) at Jun. 30, 2023 | 10,110 | |||||||||||||||
Beginning balance at Jun. 30, 2023 | 963,469,000 | 944,672,000 | $ 11,654,000 | 1,147,449,000 | $ (977,812,000) | (25,399,000) | 788,780,000 | 18,797,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 137,027,000 | 135,802,000 | 135,802,000 | 1,225,000 | ||||||||||||
Other comprehensive loss | (4,864,000) | (4,259,000) | (4,259,000) | (605,000) | ||||||||||||
Common stock dividends | (11,031,000) | (11,031,000) | (11,031,000) | |||||||||||||
Share repurchases (in shares) | 507 | |||||||||||||||
Share repurchases | (61,836,000) | (61,836,000) | $ (61,836,000) | |||||||||||||
KSOP redeemable common stock conversion (in shares) | 926 | |||||||||||||||
KSOP redeemable common stock conversion | 15,048,000 | 15,048,000 | $ 9,000 | 15,039,000 | ||||||||||||
Exercise of common stock options (in shares) | 35 | |||||||||||||||
Exercise of common stock options | 1,756,000 | 1,756,000 | $ 0 | 1,756,000 | ||||||||||||
Restricted stock awards (in shares) | 23 | 0 | ||||||||||||||
Restricted stock awards | (69,000) | (69,000) | $ 0 | $ (69,000) | ||||||||||||
Stock-based compensation expense | 9,331,000 | 9,331,000 | 9,331,000 | |||||||||||||
Other | $ (1,000) | (1,000) | (1,000) | |||||||||||||
Ending balance, common stock (in shares) at Sep. 30, 2023 | 70,018 | 80,635 | ||||||||||||||
Ending balance, treasury stock (in shares) at Sep. 30, 2023 | 10,617 | |||||||||||||||
Ending balance at Sep. 30, 2023 | $ 1,048,830,000 | $ 1,029,413,000 | $ 11,663,000 | $ 1,173,574,000 | $ (1,039,717,000) | $ (29,658,000) | $ 913,551,000 | $ 19,417,000 | ||||||||
Mezzanine equity, beginning balance (in shares) at Jun. 30, 2023 | 9,132 | |||||||||||||||
Mezzanine equity, beginning balance at Jun. 30, 2023 | 148,397,000 | $ 148,397,000 | ||||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||||
Conversion of convertible securities (in shares) | (926) | |||||||||||||||
Temporary equity, conversion of convertible securities | $ (15,048,000) | $ (15,048,000) | ||||||||||||||
Mezzanine equity, ending balance (in shares) at Sep. 30, 2023 | 8,206 | |||||||||||||||
Mezzanine equity, ending balance at Sep. 30, 2023 | $ 133,349,000 | $ 133,349,000 | $ 133,349,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity and Mezzanine Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends per share (in dollars per share) | $ 0.14 | $ 0.12 | $ 0.28 | $ 0.24 |
Background and Summary of Signi
Background and Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Background and Summary of Significant Accounting Policies | BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business - Advanced Drainage Systems, Inc., incorporated in Delaware, and its subsidiaries (collectively referred to as “ADS” or the “Company”) designs, manufactures and markets innovative water management solutions in the stormwater and onsite septic wastewater industries, providing superior drainage solutions for use in the construction and agriculture marketplace. ADS’s products are used across a broad range of end markets and applications, including non-residential, infrastructure and agriculture applications. The Company is managed and reports results of operations in three reportable segments: Pipe, Infiltrator Water Technologies Ultimate Holdings, Inc ("Infiltrator") and International. The Company also reports the results of its Allied Products and all other business segments as Allied Products and Other. Historically, sales of the Company’s products have been higher in the first and second quarters of each fiscal year due to favorable weather and longer daylight conditions accelerating construction activity during these periods. Seasonal variations in operating results may also be impacted by inclement weather conditions, such as cold or wet weather, which can delay projects. Basis of Presentation - The Company prepares its Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Condensed Consolidated Balance Sheet as of March 31, 2023 was derived from audited financial statements included in the Annual Report on Form 10-K for the year ended March 31, 2023 (“Fiscal 2023 Form 10-K”). The accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, of a normal recurring nature, necessary to present fairly its financial position as of September 30, 2023 and the results of operations for the three and six months ended September 30, 2023 and cash flows for the six months ended September 30, 2023. The interim Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, filed in the Company’s Fiscal 2023 Form 10-K. Principles of Consolidation - The Condensed Consolidated Financial Statements include the Company, its wholly-owned subsidiaries, its majority-owned subsidiaries and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. The Company uses the equity method of accounting for equity investments where it exercises significant influence but does not hold a controlling financial interest. Such investments are recorded in Other assets in the Condensed Consolidated Balance Sheets and the related equity earnings from these investments are included in Equity in net income of unconsolidated affiliates in the Condensed Consolidated Statements of Operations. All intercompany balances and transactions have been eliminated in consolidation. Recent Accounting Guidance - There have been no new accounting pronouncements issued or adopted since the filing of the Fiscal 2023 Form 10-K that have significance, or potential significance, to the Condensed Consolidated Financial Statements. |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups | 6 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Loss on Disposal of Assets and Costs from Exit and Disposal Activities | GAIN ON DISPOSAL OF ASSETS AND COSTS FROM EXIT AND DISPOSAL ACTIVITIESOn April 14, 2023, the Company completed its divestiture of substantially all of the assets of Spartan Concrete, Inc. to a third party purchaser for consideration of $20.0 million. The Company recognized a gain on the sale of $14.9 million in the Condensed Consolidated Statements of Operations. Prior to the divestiture, the Company recorded the results of operations in Allied & Other. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Revenue Disaggregation - The Company disaggregates net sales by Domestic, International and Infiltrator and further disaggregates Domestic and International by product type, consistent with its reportable segment disclosure. This disaggregation level best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Refer to “Note 12. Business Segments Information” for the Company’s disaggregation of Net sales by reportable segment. Contract Balances - The Company recognizes a contract asset representing the Company’s right to recover products upon the receipt of returned products and a contract liability for the customer refund. The following table presents the balance of the Company’s contract asset and liability as of the periods presented: (In thousands) September 30, 2023 March 31, 2023 Contract asset - product returns $ 1,364 $ 933 Refund liability 4,650 2,664 |
Leases
Leases | 6 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | LEASES Nature of the Company’s Leases - The Company has operating and finance leases for plants, yards, corporate offices, tractors, trailers and other equipment. The Company’s leases have remaining terms of less than one year to 14 years. A portion of the Company’s yard leases include an option to extend the leases for up to five years. The Company has included renewal options which are reasonably certain to be exercised in its right-of-use assets and lease liabilities. |
Inventories
Inventories | 6 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories as of the periods presented consisted of the following: (In thousands) September 30, 2023 March 31, 2023 Raw materials $ 98,267 $ 108,206 Finished goods 286,823 355,788 Total inventories $ 385,090 $ 463,994 |
Net Income Per Share and Stockh
Net Income Per Share and Stockholders' Equity | 6 Months Ended |
Sep. 30, 2023 | |
Net Income Per Share And Stockholders Equity [Abstract] | |
Net Income Per Share and Stockholders' Equity | NET INCOME PER SHARE AND STOCKHOLDERS' EQUITY Net Income per Share - The following table presents information necessary to calculate net income per share for the periods presented, as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive: Three Months Ended September 30, Six Months Ended (In thousands, except per share data) 2023 2022 2023 2022 NET INCOME PER SHARE—BASIC: Net income available to common stockholders – Basic $ 135,802 $ 152,007 $ 309,454 $ 339,153 Weighted average number of common shares outstanding – Basic 78,606 83,466 78,756 83,306 Net income per common share – Basic $ 1.73 $ 1.82 $ 3.93 $ 4.07 NET INCOME PER SHARE—DILUTED: Net income available to common stockholders – Diluted $ 135,802 $ 152,007 $ 309,454 $ 339,153 Weighted average number of common shares outstanding – Basic 78,606 83,466 78,756 83,306 Assumed restricted stock 62 139 54 142 Assumed exercise of stock options 618 717 600 740 Assumed performance units 21 176 65 297 Weighted average number of common shares outstanding – Diluted 79,307 84,498 79,475 84,485 Net income per common share – Diluted $ 1.71 $ 1.80 $ 3.89 $ 4.01 Potentially dilutive securities excluded as anti-dilutive 23 18 62 36 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS ADS Mexicana - ADS conducts business in Mexico and Central America through its joint venture, ADS Mexicana, S.A. de C.V. (“ADS Mexicana”). ADS owns 51% of the outstanding stock of ADS Mexicana and consolidates ADS Mexicana for financial reporting purposes. On June 6, 2022, the Company and ADS Mexicana amended the Intercompany Revolving Credit Promissory Note (the “Intercompany Note”) with a borrowing capacity of $9.5 million. The Intercompany Note matures on June 8, 2027. The Intercompany Note indemnifies the ADS Mexicana joint venture partner for 49% of any unpaid borrowings. The interest rates under the Intercompany Note are determined by certain base rates or Secured Overnight Financing Rate (“SOFR”) plus an applicable margin based on the Leverage Ratio. As of both September 30, 2023 and March 31, 2023, there were no borrowings outstanding under the Intercompany Note. South American Joint Venture - The Tuberias Tigre - ADS Limitada joint venture (the “South American Joint Venture”) manufactures and sells HDPE corrugated pipe in certain South American markets. ADS owns 50% of the South American Joint Venture. ADS is the guarantor of 50% of the South American Joint Venture’s credit arrangement, and the debt guarantee is shared equally with the joint venture partner. The Company’s maximum potential obligation under this guarantee is $11.0 million as of September 30, 2023. 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 September 30, 2023 and March 31, 2023, the outstanding principal balances of the South American Joint Venture’s credit facility including letters of credit were $1.4 million and $5.5 million, respectively. As of September 30, 2023, there were no U.S. dollar denominated loans. The weighted average interest rate as of September 30, 2023 was 10.9% on Chilean peso denominated loans. |
Debt
Debt | 6 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Long-term debt as of the periods presented consisted of the following: (In thousands) September 30, 2023 March 31, 2023 Term Loan Facility $ 423,750 $ 427,250 Senior Notes due 2027 350,000 350,000 Senior Notes due 2030 500,000 500,000 Revolving Credit Facility — — Equipment Financing 14,179 18,638 Total 1,287,929 1,295,888 Less: Unamortized debt issuance costs 10,782 11,804 Less: Current maturities 12,950 14,693 Long-term debt obligations $ 1,264,197 $ 1,269,391 Senior Secured Credit Facilities – In May 2022, the Company entered into a Second Amendment (the "Second Amendment") to the Company's Base Credit Agreement with Barclays Bank PLC, as administrative agent under the Term Loan Facility, PNC Bank, National Association, as new administrative agent under the Revolving Credit Facility. Among other things, the Second Amendment (i) amended the Base Credit Agreement by increasing the Revolving Credit Facility (the "Amended Revolving Credit Facility") from $350 million to $600 million (including an increase of the sub-limit for the swing-line sub-facility from $50 million to $60 million), (ii) extended the maturity date of the Revolving Credit Facility to May 26, 2027, (iii) revised the “applicable margin” to provide an additional step-down to 175 basis points (for Term Benchmark based loans) and 75 basis points (for base rate loans) in the event the consolidated senior secured net leverage ratio is less than 2.00 to 1.00 , and (iv) reset the “incremental amount” and the investment basket in non-guarantors and joint ventures. The Second Amendment also revised the reference interest rate from LIBOR to SOFR for both the Amended Revolving Credit Facility and the Term Loan Facility. Letters of credit outstanding at September 30, 2023 and March 31, 2023 amounted to $11.2 million and $9.7 million, respectively, and reduced the availability of the Revolving Credit Facility. Senior Notes due 2027 – On September 23, 2019, the Company issued $350.0 million aggregate principal amount of 5.0% Senior Notes due 2027 (the “2027 Notes”) pursuant to an Indenture, dated September 23, 2019 (the “2027 Indenture”), among the Company, the guarantors party thereto (the “Guarantors”) and U.S. Bank National Association, as Trustee (the “Trustee”). Senior Notes due 2030 – On June 9, 2022, the Company issued $500.0 million aggregate pri ncipal amount of 6.375% Senior Notes due 2030 (the “2030 Notes”) pursuant to an Indenture, dated June 9, 2022 (the "2030 Indenture"), among the Company, the Guarantors and the Trustee. Equipment Financing – The assets under the Equipment Financing acquired are titled to the Company and included in Property, plant and equipment, net on the Company's Condensed Consolidated Balance Sheet. The equipment financing has an initial term of between 12 and 84 months, based on the life of the equipment, and bears a weighted average interest of 1.6% as of September 30, 2023 . The current portion of the equipment financing is $6.0 million, and the long-term portion is $8.2 million at September 30, 2023. Valuation of Debt - The carrying amounts of current financial assets and liabilities approximate fair value because of the immediate or short-term maturity of these items. The following table presents the carrying and fair value of the Company’s 2027 Notes, 2030 Notes and Equipment Financing for the periods presented: September 30, 2023 March 31, 2023 (In thousands) Fair Value Carrying Value Fair Value Carrying Value Senior Notes due 2027 $ 328,395 $ 350,000 $ 333,970 $ 350,000 Senior Notes due 2030 480,010 500,000 496,605 500,000 Equipment Financing 13,599 14,179 17,921 18,638 Total fair value $ 822,004 $ 864,179 $ 848,496 $ 868,638 The fair values of the 2027 Notes and 2030 Notes were determined based on quoted market data for the Company’s 2027 Notes and 2030 Notes, respectively. The fair value of the Equipment Financing was determined based on a comparison of the interest rate and terms of such borrowings to the rates and terms of similar debt available for the period. The categorization of the framework used to evaluate the 2027 Notes, 2030 Notes and Equipment Financing are considered Level 2. The Company believes the carrying amount of the remaining long-term debt, including the Term Loan Facility and Revolving Credit Facility, is not materially different from its fair value as the interest rates and terms of the borrowings are similar to currently available borrowings. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Purchase Commitments - The Company has historically secured supplies of resin raw material by agreeing to purchase quantities during a future given period at a fixed price. These purchase contracts typically ranged from 1 to 12 months and occur in the ordinary course of business. The Company does not have any outstanding purchase commitments with fixed price and quantity as of September 30, 2023. The Company also enters into equipment purchase contracts with manufacturers. Litigation and Other Proceedings – The Company is involved from time to time in various legal proceedings that arise in the ordinary course of business, including but not limited to commercial disputes, environmental matters, employee related claims, intellectual property disputes and litigation in connection with transactions including acquisitions and divestitures. The Company does not believe that such litigation, claims, and administrative proceedings will have a material adverse impact on the Company’s financial position or results of operations. The Company records a liability when a loss is considered probable, and the amount can be reasonably estimated. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s effective tax rate will vary based on a variety of factors, including overall profitability, the geographical mix of income before taxes and related tax rates in jurisdictions where it operates and other one-time charges, as well as the occurrence of discrete events. For the three months ended September 30, 2023 and 2022, the Company utilized an effective tax rate of 25.9% and 23.9%, respectively, to calculate its provision for income taxes. For the six months ended September 30, 2023 and 2022, the Company utilized an effective tax rate of 25.0% and 23.2%, respectively, to calculate its provision for income taxes. S tate and local income taxes increased the effective rate for the three and six months ended September 30, 2023 and 2022. Additionally, discrete income tax benefit related to the stock-based compensation windfall decreased the effective tax rate for the three and six months ended September 30, 2022 . |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATIONADS has several programs for stock-based payments to employees and non-employee members of its Board of Directors, including stock options, performance-based restricted stock units and restricted stock. The Company recognized stock-based compensation expense in the following line items of the Condensed Consolidated Statements of Operations for the periods presented: Three Months Ended September 30, Six Months Ended (In thousands) 2023 2022 2023 2022 Component of income before income taxes: Cost of goods sold $ 1,344 $ 758 $ 2,157 $ 1,432 Selling, general and administrative expenses 7,987 6,702 14,077 12,301 Total stock-based compensation expense $ 9,331 $ 7,460 $ 16,234 $ 13,733 The following table summarizes stock-based compensation expense by award type for the periods presented: Three Months Ended September 30, Six Months Ended (In thousands) 2023 2022 2023 2022 Stock-based compensation expense: Stock Options $ 1,307 $ 1,002 $ 2,741 $ 2,281 Restricted Stock 2,054 1,965 4,081 3,726 Performance-based Restricted Stock Units 5,035 4,052 7,919 6,792 Employee Stock Purchase Plan 381 — 381 — Non-Employee Directors 554 441 1,112 934 Total stock-based compensation expense $ 9,331 $ 7,460 $ 16,234 $ 13,733 2017 Omnibus Incentive Plan - The 2017 Incentive Plan provides for the issuance of a maximum of 5.0 million shares of the Company’s common stock for awards made thereunder, which awards may consist of stock options, restricted stock, restricted stock units, stock appreciation rights, phantom stock, cash-based awards, performance awards (which may take the form of performance cash, performance units or performance shares) or other stock-based awards. Restricted Stock – During the three and six months ended September 30, 2023, the Company granted less than 0.1 million and 0.1 million shares, respectively, of restricted stock with a grant date fair value of $2.2 million and $13.2 million, respectively. Performance-based Restricted Stock Units (“ Performance Units”) – During the six months ended September 30, 2023, the Company granted 0.1 million performance share units at a grant date fair value of $8.7 million. Options – During the six months ended September 30, 2023, the Company granted 0.2 million nonqualified stock options under the 2017 Incentive Plan with a grant date fair value of $7.5 million. The Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The following table summarizes the assumptions used to estimate the fair value of stock-options during the period presented: Six Months Ended September 30, 2023 Common stock price $96.51 Expected stock price volatility 45.6% Risk-free interest rate 3.8% Weighted-average expected option life (years) 6 Dividend yield 0.58% Employee Stock Purchase Plan (“ESPP”) - In July 2022, the Company’s shareholders approved the Advanced Drainage Systems, Inc. Employee Stock Purchase Plan, which provides for a maximum of 0.4 million shares of the Company’s common stock. Eligible employees may purchase the Company's common stock at 85% of the lower of the fair market value of the Company's common stock on the first day or the last day of the offering period. The first offering period commenced July 1, 2023 and will end December 31, 2023. |
Business Segments Information
Business Segments Information | 6 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segments Information | BUSINESS SEGMENTS INFORMATION The Company operates its business in three distinct reportable segments: “Pipe”, “International” and “Infiltrator.” “Allied Products & Other” represents the Company’s Allied Products and all other business segments. The Chief Operating Decision Maker (the “CODM”) evaluates segment reporting based on Net Sales and Segment Adjusted Gross Profit. The Company calculated Segment Adjusted Gross Profit as Net sales less Costs of goods sold, depreciation and amortization, stock-based compensation and non-cash charges. A measure of assets is not applicable, as segment assets are not regularly reviewed by the CODM for evaluating performance or allocating resources. The following table sets forth reportable segment information with respect to the amount of Net sales contributed by each class of similar products for the periods presented: Three Months Ended September 30, 2023 September 30, 2022 (In thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 430,389 $ (9,563) $ 420,826 $ 500,978 $ (10,770) $ 490,208 Infiltrator 133,731 (17,553) 116,178 150,735 (22,450) 128,285 International International - Pipe 52,405 (1,020) 51,385 56,461 (7,339) 49,122 International - Allied Products & Other 17,027 (26) 17,001 17,002 — 17,002 Total International 69,432 (1,046) 68,386 73,463 (7,339) 66,124 Allied Products & Other 183,304 (8,474) 174,830 202,200 (2,608) 199,592 Intersegment Eliminations (36,636) 36,636 — (43,167) 43,167 — Total Consolidated $ 780,220 $ — $ 780,220 $ 884,209 $ — $ 884,209 Six Months Ended September 30, 2023 September 30, 2022 (In thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 858,961 $ (17,707) $ 841,254 $ 1,025,835 $ (20,644) $ 1,005,191 Infiltrator 275,217 (36,131) 239,086 317,025 (51,356) 265,669 International International - Pipe 89,583 (1,548) 88,035 109,880 (13,198) 96,682 International - Allied Products & Other 32,625 (26) 32,599 35,097 — 35,097 Total International 122,208 (1,574) 120,634 144,977 (13,198) 131,779 Allied Products & Other 366,749 (9,457) 357,292 401,109 (5,353) 395,756 Intersegment Eliminations (64,869) 64,869 — (90,551) 90,551 — Total Consolidated $ 1,558,266 $ — $ 1,558,266 $ 1,798,395 $ — $ 1,798,395 The following sets forth certain financial information attributable to the reportable segments for the periods presented: Three Months Ended September 30, Six Months Ended (In thousands) 2023 2022 2023 2022 Segment Adjusted Gross Profit Pipe $ 125,856 $ 146,153 $ 286,505 $ 314,732 Infiltrator 73,663 71,278 147,927 147,072 International 21,339 17,630 37,368 38,114 Allied Products & Other 106,239 106,030 212,424 215,071 Intersegment Eliminations (454) 430 (2,509) (385) Total $ 326,643 $ 341,521 $ 681,715 $ 714,604 Depreciation and Amortization Pipe $ 13,663 $ 13,135 $ 28,391 $ 26,000 Infiltrator 5,534 5,027 10,892 9,894 International 1,236 1,283 2,474 2,654 Allied Products & Other (a) 16,288 16,477 32,204 32,952 Total $ 36,721 $ 35,922 $ 73,961 $ 71,500 Capital Expenditures Pipe $ 23,809 $ 27,023 $ 53,413 $ 47,297 Infiltrator 6,042 8,514 11,496 21,046 International 1,786 1,114 2,935 2,027 Allied Products & Other (a) 8,910 2,705 14,781 5,175 Total $ 40,547 $ 39,356 $ 82,625 $ 75,545 (a) Includes depreciation, amortization and capital expenditures not allocated to a reportable segment. The amortization expense of Infiltrator intangible assets is included in Allied Products & Other. Three Months Ended September 30, Six Months Ended (In thousands) 2023 2022 2023 2022 Reconciliation of Segment Adjusted Gross Profit: Total Gross Profit $ 302,677 $ 319,963 $ 634,137 $ 672,070 Depreciation and Amortization 22,622 20,800 45,421 41,102 Stock-based compensation expense 1,344 758 2,157 1,432 Total Segment Adjusted Gross Profit $ 326,643 $ 341,521 $ 681,715 $ 714,604 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Common Stock Dividend - During the third quarter of fiscal 2024, the Company declared a quarterly cash dividend of $0.14 per share of common stock. The dividend is payable on December 15, 2023 to stockholders of record at the close of business on December 1, 2023. Share Repurchase Program - During the third quarter of fiscal 2024, 0.3 million shares of common stock at a cost of $38.7 million were repurchased under the Board of Directors' authorization in February 2022. |
Background and Summary of Sig_2
Background and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2023 | |
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 2023 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 14 years. A portion of the Company’s yard leases include an option to extend the leases for up to five years. The Company has included renewal options which are reasonably certain to be exercised in its right-of-use assets and lease liabilities. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Asset and Liability | The following table presents the balance of the Company’s contract asset and liability as of the periods presented: (In thousands) September 30, 2023 March 31, 2023 Contract asset - product returns $ 1,364 $ 933 Refund liability 4,650 2,664 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of the periods presented consisted of the following: (In thousands) September 30, 2023 March 31, 2023 Raw materials $ 98,267 $ 108,206 Finished goods 286,823 355,788 Total inventories $ 385,090 $ 463,994 |
Net Income Per Share and Stoc_2
Net Income Per Share and Stockholders' Equity (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Net Income Per Share And Stockholders Equity [Abstract] | |
Summary of Net Income Per Share | The following table presents information necessary to calculate net income per share for the periods presented, as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive: Three Months Ended September 30, Six Months Ended (In thousands, except per share data) 2023 2022 2023 2022 NET INCOME PER SHARE—BASIC: Net income available to common stockholders – Basic $ 135,802 $ 152,007 $ 309,454 $ 339,153 Weighted average number of common shares outstanding – Basic 78,606 83,466 78,756 83,306 Net income per common share – Basic $ 1.73 $ 1.82 $ 3.93 $ 4.07 NET INCOME PER SHARE—DILUTED: Net income available to common stockholders – Diluted $ 135,802 $ 152,007 $ 309,454 $ 339,153 Weighted average number of common shares outstanding – Basic 78,606 83,466 78,756 83,306 Assumed restricted stock 62 139 54 142 Assumed exercise of stock options 618 717 600 740 Assumed performance units 21 176 65 297 Weighted average number of common shares outstanding – Diluted 79,307 84,498 79,475 84,485 Net income per common share – Diluted $ 1.71 $ 1.80 $ 3.89 $ 4.01 Potentially dilutive securities excluded as anti-dilutive 23 18 62 36 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt as of the periods presented consisted of the following: (In thousands) September 30, 2023 March 31, 2023 Term Loan Facility $ 423,750 $ 427,250 Senior Notes due 2027 350,000 350,000 Senior Notes due 2030 500,000 500,000 Revolving Credit Facility — — Equipment Financing 14,179 18,638 Total 1,287,929 1,295,888 Less: Unamortized debt issuance costs 10,782 11,804 Less: Current maturities 12,950 14,693 Long-term debt obligations $ 1,264,197 $ 1,269,391 |
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: September 30, 2023 March 31, 2023 (In thousands) Fair Value Carrying Value Fair Value Carrying Value Senior Notes due 2027 $ 328,395 $ 350,000 $ 333,970 $ 350,000 Senior Notes due 2030 480,010 500,000 496,605 500,000 Equipment Financing 13,599 14,179 17,921 18,638 Total fair value $ 822,004 $ 864,179 $ 848,496 $ 868,638 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-based Compensation Expense | The Company recognized stock-based compensation expense in the following line items of the Condensed Consolidated Statements of Operations for the periods presented: Three Months Ended September 30, Six Months Ended (In thousands) 2023 2022 2023 2022 Component of income before income taxes: Cost of goods sold $ 1,344 $ 758 $ 2,157 $ 1,432 Selling, general and administrative expenses 7,987 6,702 14,077 12,301 Total stock-based compensation expense $ 9,331 $ 7,460 $ 16,234 $ 13,733 The following table summarizes stock-based compensation expense by award type for the periods presented: Three Months Ended September 30, Six Months Ended (In thousands) 2023 2022 2023 2022 Stock-based compensation expense: Stock Options $ 1,307 $ 1,002 $ 2,741 $ 2,281 Restricted Stock 2,054 1,965 4,081 3,726 Performance-based Restricted Stock Units 5,035 4,052 7,919 6,792 Employee Stock Purchase Plan 381 — 381 — Non-Employee Directors 554 441 1,112 934 Total stock-based compensation expense $ 9,331 $ 7,460 $ 16,234 $ 13,733 |
Summary of Assumption Used to Estimate Fair Value of Stock Options | The following table summarizes the assumptions used to estimate the fair value of stock-options during the period presented: Six Months Ended September 30, 2023 Common stock price $96.51 Expected stock price volatility 45.6% Risk-free interest rate 3.8% Weighted-average expected option life (years) 6 Dividend yield 0.58% |
Business Segments Information (
Business Segments Information (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 September 30, 2022 (In thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 430,389 $ (9,563) $ 420,826 $ 500,978 $ (10,770) $ 490,208 Infiltrator 133,731 (17,553) 116,178 150,735 (22,450) 128,285 International International - Pipe 52,405 (1,020) 51,385 56,461 (7,339) 49,122 International - Allied Products & Other 17,027 (26) 17,001 17,002 — 17,002 Total International 69,432 (1,046) 68,386 73,463 (7,339) 66,124 Allied Products & Other 183,304 (8,474) 174,830 202,200 (2,608) 199,592 Intersegment Eliminations (36,636) 36,636 — (43,167) 43,167 — Total Consolidated $ 780,220 $ — $ 780,220 $ 884,209 $ — $ 884,209 Six Months Ended September 30, 2023 September 30, 2022 (In thousands) Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Pipe $ 858,961 $ (17,707) $ 841,254 $ 1,025,835 $ (20,644) $ 1,005,191 Infiltrator 275,217 (36,131) 239,086 317,025 (51,356) 265,669 International International - Pipe 89,583 (1,548) 88,035 109,880 (13,198) 96,682 International - Allied Products & Other 32,625 (26) 32,599 35,097 — 35,097 Total International 122,208 (1,574) 120,634 144,977 (13,198) 131,779 Allied Products & Other 366,749 (9,457) 357,292 401,109 (5,353) 395,756 Intersegment Eliminations (64,869) 64,869 — (90,551) 90,551 — Total Consolidated $ 1,558,266 $ — $ 1,558,266 $ 1,798,395 $ — $ 1,798,395 |
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 September 30, Six Months Ended (In thousands) 2023 2022 2023 2022 Segment Adjusted Gross Profit Pipe $ 125,856 $ 146,153 $ 286,505 $ 314,732 Infiltrator 73,663 71,278 147,927 147,072 International 21,339 17,630 37,368 38,114 Allied Products & Other 106,239 106,030 212,424 215,071 Intersegment Eliminations (454) 430 (2,509) (385) Total $ 326,643 $ 341,521 $ 681,715 $ 714,604 Depreciation and Amortization Pipe $ 13,663 $ 13,135 $ 28,391 $ 26,000 Infiltrator 5,534 5,027 10,892 9,894 International 1,236 1,283 2,474 2,654 Allied Products & Other (a) 16,288 16,477 32,204 32,952 Total $ 36,721 $ 35,922 $ 73,961 $ 71,500 Capital Expenditures Pipe $ 23,809 $ 27,023 $ 53,413 $ 47,297 Infiltrator 6,042 8,514 11,496 21,046 International 1,786 1,114 2,935 2,027 Allied Products & Other (a) 8,910 2,705 14,781 5,175 Total $ 40,547 $ 39,356 $ 82,625 $ 75,545 (a) Includes depreciation, amortization and capital expenditures not allocated to a reportable segment. The amortization expense of Infiltrator intangible assets is included in Allied Products & Other. |
Reconciliation of Gross Profit to Segment Adjusted Gross Profit | Three Months Ended September 30, Six Months Ended (In thousands) 2023 2022 2023 2022 Reconciliation of Segment Adjusted Gross Profit: Total Gross Profit $ 302,677 $ 319,963 $ 634,137 $ 672,070 Depreciation and Amortization 22,622 20,800 45,421 41,102 Stock-based compensation expense 1,344 758 2,157 1,432 Total Segment Adjusted Gross Profit $ 326,643 $ 341,521 $ 681,715 $ 714,604 |
Background and Summary of Sig_3
Background and Summary of Significant Accounting Policies (Detail) | 6 Months Ended |
Sep. 30, 2023 segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 3 |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups (Details) - USD ($) | 6 Months Ended | ||
Apr. 14, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Sale of Productive Assets | $ 19,979,000 | $ 0 | |
Spartan Concrete, Inc. | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (Loss) on Disposition of Other Assets | $ 14,900,000 | ||
Proceeds from Sale of Productive Assets | $ 20,000,000 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Contract Asset and Liability (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Contract asset - product returns | $ 1,364 | $ 933 |
Refund liability | $ 4,650 | $ 2,664 |
Leases (Detail)
Leases (Detail) | 6 Months Ended |
Sep. 30, 2023 | |
Minimum | |
Lessee Lease Description [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Lessee Lease Description [Line Items] | |
Remaining lease term | 14 years |
Maximum | Yard | |
Lessee Lease Description [Line Items] | |
Lease renewal term | 5 years |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 98,267 | $ 108,206 |
Finished goods | 286,823 | 355,788 |
Total inventories | $ 385,090 | $ 463,994 |
Net Income Per Share and Stoc_3
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 | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
NET INCOME PER SHARE—BASIC: | ||||
Net income available to common stockholders – Basic | $ 135,802 | $ 152,007 | $ 309,454 | $ 339,153 |
Weighted average number of common shares outstanding – Basic (in shares) | 78,606 | 83,466 | 78,756 | 83,306 |
Net income per common share - Basic (in dollars per share) | $ 1.73 | $ 1.82 | $ 3.93 | $ 4.07 |
NET INCOME PER SHARE—DILUTED: | ||||
Net income available to common stockholders – Diluted | $ 135,802 | $ 152,007 | $ 309,454 | $ 339,153 |
Weighted average number of common shares outstanding – Basic (in shares) | 78,606 | 83,466 | 78,756 | 83,306 |
Weighted average number of common shares outstanding – Diluted (in shares) | 79,307 | 84,498 | 79,475 | 84,485 |
Net income per common share - Diluted (in dollars per share) | $ 1.71 | $ 1.80 | $ 3.89 | $ 4.01 |
Potentially dilutive securities excluded as anti-dilutive (in shares) | 23 | 18 | 62 | 36 |
Assumed restricted stock | ||||
NET INCOME PER SHARE—DILUTED: | ||||
Dilutive securities (in shares) | 62 | 139 | 54 | 142 |
Assumed exercise of stock options | ||||
NET INCOME PER SHARE—DILUTED: | ||||
Dilutive securities (in shares) | 618 | 717 | 600 | 740 |
Assumed performance units | ||||
NET INCOME PER SHARE—DILUTED: | ||||
Dilutive securities (in shares) | 21 | 176 | 65 | 297 |
Related Party Transactions (Det
Related Party Transactions (Detail) - USD ($) | 6 Months Ended | ||
Sep. 30, 2023 | Mar. 31, 2023 | Jun. 06, 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 | 1,400,000 | $ 5,500,000 | |
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 | 10.90% | ||
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 | ||
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 | Sep. 30, 2023 | Mar. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt , gross | $ 1,287,929 | $ 1,295,888 |
Less: Unamortized debt issuance costs | 10,782 | 11,804 |
Less: Current maturities | 12,950 | 14,693 |
Long-term debt obligations | 1,264,197 | 1,269,391 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 0 | 0 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 423,750 | 427,250 |
Senior Notes | Senior Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 350,000 | 350,000 |
Senior Notes | Senior Notes due 2030 | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 500,000 | 500,000 |
Equipment Financing | ||
Debt Instrument [Line Items] | ||
Long-term debt , gross | 14,179 | $ 18,638 |
Less: Current maturities | 6,000 | |
Long-term debt obligations | $ 8,200 |
Debt - Senior Secured Credit Fa
Debt - Senior Secured Credit Facility (Detail) $ in Millions | 1 Months Ended | |||
May 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | Mar. 31, 2023 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 | $ 11.2 | $ 9.7 | ||
Revolving Credit Facility | Term Benchmark Based Loans Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Revolving Credit Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Sublimit of Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowings permitted under credit facility | $ 60 | $ 50 |
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% |
Debt - Equipment Financing (Det
Debt - Equipment Financing (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2023 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Current maturities of debt obligations | $ 12,950 | $ 14,693 |
Long-term debt obligations | $ 1,264,197 | $ 1,269,391 |
Equipment Financing | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate of equipment financing | 1.60% | |
Current maturities of debt obligations | $ 6,000 | |
Long-term debt obligations | $ 8,200 | |
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 | Sep. 30, 2023 | Mar. 31, 2023 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | $ 822,004 | $ 848,496 |
Fair Value | Equipment Financing | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | 13,599 | 17,921 |
Carrying Value | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | 864,179 | 868,638 |
Carrying Value | Equipment Financing | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | 14,179 | 18,638 |
Senior Notes due 2027 | Fair Value | Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | 328,395 | 333,970 |
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 | 480,010 | 496,605 |
Senior Notes due 2030 | Carrying Value | Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes and equipment financing | $ 500,000 | $ 500,000 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - Inventory | 6 Months Ended |
Sep. 30, 2023 USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Total purchase commitment | $ 0 |
Minimum | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase commitment contract period | 1 month |
Maximum | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase commitment contract period | 12 months |
Income Taxes (Detail)
Income Taxes (Detail) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 25.90% | 23.90% | 25% | 23.20% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | $ 9,331 | $ 7,460 | $ 16,234 | $ 13,733 |
Non-Employee Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | 554 | 441 | 1,112 | 934 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | 1,307 | 1,002 | 2,741 | 2,281 |
Assumed performance units | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | 2,054 | 1,965 | 4,081 | 3,726 |
Performance-based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | 5,035 | 4,052 | 7,919 | 6,792 |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | 381 | 0 | 381 | 0 |
Cost of goods sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | 1,344 | 758 | 2,157 | 1,432 |
Selling, general and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Additional stock-based compensation expense | $ 7,987 | $ 6,702 | $ 14,077 | $ 12,301 |
Stock-Based Compensation (2017
Stock-Based Compensation (2017 Omnibus Plan) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | May 24, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock awards | $ (69) | $ (34) | $ (2,414) | $ (2,491) | |
Employee Stock Purchase Plan Maximum Shares in Offering Period [Domain] | 400,000 | 400,000 | |||
Employee Stock Purchase Plan Purchase Discount | 85% | ||||
2017 Omnibus Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock awards (in shares) | 100,000 | 100,000 | |||
Restricted stock awards | $ 2,200 | $ 13,200 | |||
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 | $ 8,700 | ||||
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) | 200,000 | ||||
Number of stock options granted, value | $ 7,500 | ||||
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) | 6 Months Ended |
Sep. 30, 2023 $ / shares | |
Share-Based Payment Arrangement [Abstract] | |
Common stock price (in dollars per share) | $ 96.51 |
Expected stock price volatility | 45.60% |
Risk-free interest rate | 3.80% |
Weighted-average expected option life (years) | 6 years |
Dividend yield | 0.58% |
Business Segments Information -
Business Segments Information - Additional Information (Detail) | 6 Months Ended |
Sep. 30, 2023 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 | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 780,220 | $ 884,209 | $ 1,558,266 | $ 1,798,395 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (36,636) | (43,167) | (64,869) | (90,551) |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 36,636 | 43,167 | 64,869 | 90,551 |
Pipe | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 420,826 | 490,208 | 841,254 | 1,005,191 |
Pipe | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 430,389 | 500,978 | 858,961 | 1,025,835 |
Pipe | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (9,563) | (10,770) | (17,707) | (20,644) |
Infiltrator | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 116,178 | 128,285 | 239,086 | 265,669 |
Infiltrator | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 133,731 | 150,735 | 275,217 | 317,025 |
Infiltrator | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (17,553) | (22,450) | (36,131) | (51,356) |
International | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 68,386 | 66,124 | 120,634 | 131,779 |
International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 69,432 | 73,463 | 122,208 | 144,977 |
International | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (1,046) | (7,339) | (1,574) | (13,198) |
International | International - Pipe | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 51,385 | 49,122 | 88,035 | 96,682 |
International | International - Pipe | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 52,405 | 56,461 | 89,583 | 109,880 |
International | International - Pipe | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (1,020) | (7,339) | (1,548) | (13,198) |
International | International - Allied Products & Other | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 17,001 | 17,002 | 32,599 | 35,097 |
International | International - Allied Products & Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 17,027 | 17,002 | 32,625 | 35,097 |
International | International - Allied Products & Other | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (26) | (26) | ||
Allied Products & Other | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 174,830 | 199,592 | 357,292 | 395,756 |
Allied Products & Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 183,304 | 202,200 | 366,749 | 401,109 |
Allied Products & Other | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ (8,474) | $ (2,608) | $ (9,457) | $ (5,353) |
Business Segments Information_3
Business Segments Information - Schedule of Financial Information Attributable to Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Segment Adjusted Gross Profit | $ 326,643 | $ 341,521 | $ 681,715 | $ 714,604 |
Depreciation and Amortization | 36,721 | 35,922 | 73,961 | 71,500 |
Capital Expenditures | 40,547 | 39,356 | 82,625 | 75,545 |
Net sales | 780,220 | 884,209 | 1,558,266 | 1,798,395 |
Pipe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 420,826 | 490,208 | 841,254 | 1,005,191 |
Infiltrator | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 116,178 | 128,285 | 239,086 | 265,669 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 68,386 | 66,124 | 120,634 | 131,779 |
International | International - Pipe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 51,385 | 49,122 | 88,035 | 96,682 |
International | International - Allied Products & Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 17,001 | 17,002 | 32,599 | 35,097 |
Allied Products & Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 174,830 | 199,592 | 357,292 | 395,756 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (36,636) | (43,167) | (64,869) | (90,551) |
Operating Segments | Pipe | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted Gross Profit | 125,856 | 146,153 | 286,505 | 314,732 |
Depreciation and Amortization | 13,663 | 13,135 | 28,391 | 26,000 |
Capital Expenditures | 23,809 | 27,023 | 53,413 | 47,297 |
Net sales | 430,389 | 500,978 | 858,961 | 1,025,835 |
Operating Segments | Infiltrator | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted Gross Profit | 73,663 | 71,278 | 147,927 | 147,072 |
Depreciation and Amortization | 5,534 | 5,027 | 10,892 | 9,894 |
Capital Expenditures | 6,042 | 8,514 | 11,496 | 21,046 |
Net sales | 133,731 | 150,735 | 275,217 | 317,025 |
Operating Segments | International | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted Gross Profit | 21,339 | 17,630 | 37,368 | 38,114 |
Depreciation and Amortization | 1,236 | 1,283 | 2,474 | 2,654 |
Capital Expenditures | 1,786 | 1,114 | 2,935 | 2,027 |
Net sales | 69,432 | 73,463 | 122,208 | 144,977 |
Operating Segments | International | International - Pipe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 52,405 | 56,461 | 89,583 | 109,880 |
Operating Segments | International | International - Allied Products & Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 17,027 | 17,002 | 32,625 | 35,097 |
Operating Segments | Allied Products & Other | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted Gross Profit | 106,239 | 106,030 | 212,424 | 215,071 |
Depreciation and Amortization | 16,288 | 16,477 | 32,204 | 32,952 |
Capital Expenditures | 8,910 | 2,705 | 14,781 | 5,175 |
Net sales | 183,304 | 202,200 | 366,749 | 401,109 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted Gross Profit | (454) | 430 | (2,509) | (385) |
Net sales | 36,636 | 43,167 | 64,869 | 90,551 |
Intersegment Eliminations | Pipe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (9,563) | (10,770) | (17,707) | (20,644) |
Intersegment Eliminations | Infiltrator | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (17,553) | (22,450) | (36,131) | (51,356) |
Intersegment Eliminations | International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (1,046) | (7,339) | (1,574) | (13,198) |
Intersegment Eliminations | International | International - Pipe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (1,020) | (7,339) | (1,548) | (13,198) |
Intersegment Eliminations | International | International - Allied Products & Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (26) | (26) | ||
Intersegment Eliminations | Allied Products & Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ (8,474) | $ (2,608) | $ (9,457) | $ (5,353) |
Business Segments Information_4
Business Segments Information - Reconciliation of Gross Profit to Segment Adjusted Gross Profit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Gross profit | $ 302,677 | $ 319,963 | $ 634,137 | $ 672,070 |
Total Segment Adjusted Gross Profit | 326,643 | 341,521 | 681,715 | 714,604 |
Segment Reconciling Items | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Depreciation and Amortization | 22,622 | 20,800 | 45,421 | 41,102 |
Stock-based compensation expense | $ 1,344 | $ 758 | $ 2,157 | $ 1,432 |
Subsequent Events (Detail)
Subsequent Events (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Nov. 02, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Subsequent Event [Line Items] | |||||
Common stock dividends per share (in dollars per share) | $ 0.14 | $ 0.12 | $ 0.28 | $ 0.24 | |
Stock repurchased during period | $ 61,836,000 | $ 127,802,000 | $ 109,907,000 | $ 195,163,000 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Common stock dividends per share (in dollars per share) | $ 0.14 | ||||
Share repurchases (in shares) | 300,000 | ||||
Stock repurchased during period | $ 38,700,000 |