Earnings call transcript Q4 2023

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Operator

Hello, everyone and welcome to ADS's Fourth Quarter and Fiscal Year 2023 Financial Results Call. And thank you for standing by. My name is Daisy, and I'll be coordinating your call today. [Operator Instructions]

I would now like to turn the call over to your host, Mr. of and President Relations. Vice Higgins, Corporate Investor Strategy Mike Sir, begin. you may

Michael Higgins

CEO; you morning, Scott with and our Good you. for with Barbour, Scott me. CFO, everyone. President have Thank I Thank being Cottrill, today. us our and here

remind also XX-K from and will materially discuss that would with discussed release Form statements, forward-looking in risk because Actual I factors factors you may in including press statements. those results we SEC. the the identified to like filed differ those forward-looking of various our our

While disclaim we so. update future, may forward-looking statements any the in we do obligation to

You reliance of all today. not these as of forward-looking should statements, place undue only which speak on

A included this submitted Lastly, is section the SEC. posted copy the in to release the on website. Relations of also has an release press the issued X-K been earlier morning Investor our we of

of replay company call a website. make via the will this webcast on conference We available

I'll over turn to With call Barbour. Scott the that,

Scott Barbour

call. us EBITDA And Mike. and sales you, Thank $X.X adjusted of grew $XXX record EBITDA XX%, XX.X%. million, XX%, an consecutive billion profitability. to today's I was in resulting revenue Net increased to of everyone joining ADS's sixth adjusted year and margin on Fiscal appreciate XXXX

CAGR XX macro-economic strategies strategies over and a drive months. past ADS like in a income of share above net model a have sales XX% net per last sales business Infiltrator XX%, market. long-term In to and addition, six years, at out was well and result ADS's environment to these of strong as dynamic the $X.XX. Both diluted that I'd point record-producing the EBITDA the profitable over and increased respectively, executed adjusted growth

our start well out non-residential strong our weakened shortly demand and results in end-markets. in operations to we as had against the in our fourth followed we and shipping despite We to non-residential market residential weakness overlapping and the to all by came response, favorable. the in adjustments quarter guidance very range markets. Full well year in and the a and year core residential close pricing demand with necessary the Beginning above In weakness plan rates executed September, demand, the made them. year executed

confident for non-residential to we through year construction but and due this of management cost solutions and we standards, slower remains Long-term, the Despite rates, the building need all pace the the the short-term residential relevant. water the which and in expect weakness inflation material customer. end-markets, continue to in remain higher lending highly interest tightening pace impact on calendar the of demand,

communities are brand for staying waste to and to most actively that precious management, our stormwater septic promise and We with engaging our manage water, true the standards communities. world's and are resource, safeguarding protect water environment improving on-site

the water in to position traditional plastic stormwater long-term sustainability management both a due ADS recycling. solutions the in have proposition, value runway markets, from on-site of materials water unique and for waste septic We to growth and package, conversion and

plastics, thereby committed to finding recycled performance. the of economy and cost the of North improving largest one and plastic financial giving we in As to use scale recyclers plastics innovative to us America, circularity the ways increase additional remain manage of the

with a expand engineering develop center, to plastics, and we efforts technologies new our and world-class and Last on October, for technology products innovate virgin operations. ground broke to recycled develop both manufacturing

companies for for value products choose proposition, our as to water recognized development effort being continue are impact, management projects. large-scale in our we Importantly, and

crop drainage investment markets more as agricultural to septic improve weakness a is to have markets, infrastructure, invest our yields. core healthy The on-site outlook. in agriculture, there high-return economy remains and continue favorable a and in While the landowners field

in widely accepted. less where is We new geographies are drainage pursuing growth agriculture

and come of technologies this thermoplastic that Groups last Infrastructure highlight the Farming is agricultural Jobs like scale. the better team on funds Act approval play growth I'd into opportunities secular very use the for trends a actively and to growth cultivating later relationships Department Transportation's Universities, addition, with contractors Texas and In year, Within understand pipe market local to around for onshoring November. as Investment of the will projects well and as infrastructure,

great actively projects market-share these bidding ADS's project on are of This and in tracking is proven to on plans. works. be that model We each opportunities areas specified of a example

material standpoint, and from offset increased the record of in As revenue. a relative lower pricing made margin two production X, new quarters. lower excellent pressure, to Slides Infiltrator decrease cost fourth XXX from Favorable quarter volume we profitability last X cost XX.X%, and over basis adjustments X% a above inflationary had despite absorption, the on shown and an prior adjusted fourth a year, quarter EBITDA fixed-cost points the

Notably, year increases HP throughout fourth product year-over-year and challenged. and key bright Midwest standpoint, Non-residential the The states resources have pipe, catch States, quality Nyloplast in strategy. in we basins remain focused market solutions, was United sales our part increased activity like areas last year-over-year. the with in remained and Northeast, construction Atlantic spot years Western the quarter. double-digit X% each five Coast revenue the residential a as a resilient ADS's all where States of Southeast Southern United the and grew in and over infrastructure a water quarter From

is last the systems Delta order In strong addition, today not quarter activity tanks sales normally seasonal treatment as strength and would environment doubt was facing demand of active are compared to also from There's no this we challenging. the year. The as increased uptick we and Infiltrator that see.

local the have the is all interest market, will XXXX which construction from about commercial We on reflected fiscal rate are our in issued guidance standards today. and cautious that the credit increases banks tightening effect impact

the remained season. three from The reduced and in heavy current headcount expect drainage, snowfall to actions we business Great size plant growth we to Plains the selling the agricultural market, market business several compressing that and contractors fundamentals, prevented our last in In field region the transportation. the completed fall. the however, and healthy in underlying see manufacturing right announced for in On closures spring We in environment. the call, earnings the demand installing

reduced increased also fiscal utilization The services, of headcount in costs largely better quarter. we closures fourth the benefit resulted and sequential the will third-party transportation took We and which logistics actions on in fleet the XXXX. usage plant

have to taken the assess appropriate necessary. and We to will steps production action levels, and to we network level-set if cost continue and inventory our take

the will adjusted on range Cottrill to we of you XXXX is guidance but XX% the going momentarily, into EBITDA Scott specifics XX%. committed see, remain to to get fiscal margin

A investing generation with a because the in for strong the and the and strong and regions us to that balance continue capacity cash the sheet upturn the We growth will and organic flow productivity, we long-term products, preparing stormwater opportunity ability of markets. will septic significant business, wastewater invest business, new in give markets. occur know for on-site our maintenance in the continue automation to combination in in profile

Finally, upon. full a Infiltrator of vision Roy's innovation Roy is with May. us Infiltrator material of and to XX-year and is end at Moore science manufacturing products, President the provided and of continue tremendous building leadership and foundation is remarkable, the His career Infiltrator retiring at of technology.

behalf XXXX to over take and Roy's in of I the contributions significant retirement. in succession, a a the relatively February whole for want and contributor short-time be wish position. in Craig he's of organization will planned part the Roy his joined us. been Taylor As taking his his Craig him On business with best

I'll to that, Scott. over With it turn

Scott Cottrill

Scott. Thanks,

increase This into generated shown of cash. $XXX As of $XXX flow our we cash the X, EBITDA an XX% on XXXX, converting operations adjusted $XXX of in to from is Slide million million in year, million. fiscal prior compared

most our generate One us capital attributes ability the of flow, ADS priorities. of allows important is which significant allocation our fund to to cash

high debt the X.X addition times, to million $XXX liquidity, continue of we ratio adjusted investing net to have rate EBITDA at in us than to business gives rate than in XX-month higher trailing historically. over -- ample room in a Our

investment Our our on and well debottlenecking investments productivity, are automation, like and growth initiatives as Southeast, as operations. in recycling in increasing the Florida regions focused

science, in product well focus are a manufacturing We innovation processes. as engineering to our well accelerate our as as increase also center investing on as technology and material world-class

fiscal us these as invest In our $XXX foot for when to we million we XXXX, to putting front between in capital our expenditures end-markets be expect on initiatives, core $XXX million our share repurchases acquisitions, In we shareholders. return remain XXXX, growth. Of business, will to our dividend fiscal priorities. allocation in the to quarterly capital committed to and organically in investing order,

in per Importantly, from annual today we dividend fiscal a XXXX. our to XX% announced share increase share, per $X.XX in $X.XX

backlog XXXX fiscal based X, guidance activity, order current on Slide we market and trends. present to Moving our

between in $X.X to we expect expect of the in half down year-over-year We million half XX% the adjusted year be year. second the to expected to and in resulting the $XXX to on to to the be revenue basis-points in billion, flat-to-down billion be of million, of of range range in XX%, basis, flat-to-down a XX% terms or margin revenue of is XX.X%, XX.X% phasing EBITDA first $XXX in Adjusted of $X.X year-over-year. to the XXX EBITDA

next provide for I'd now expectations like on year. details our to additional

seasonality expected half. revenue the the with of We first coming expect during XX% normal revenue, for year in approximately

and dynamics We in onshoring, markets expect residential infrastructure, septic better agriculture, the demand weakness in and active to continue with the non-residential on-site end-market businesses.

remain expectations. price cost year-over-year, driven favorable expect to by mix material We materials favorable

Over the driven years, been favorability by primarily our mix materials has fiscal price actions. last two pricing

fixed-cost pressure under result absorption. costs lower as be will will Manufacturing softness demand in

and labor costs. In see to utility cost on pressures addition, we continue inflationary

Lastly, costs. in expected as be trends utilization to of third-party fleet favorable our and is carriers, third-party transportation diesel greater to as due favorable, well versus logistic

appendix septic details presentation addressable can Scott, of you that there point at. and Based Before slide. $XX to call which the market the on look turning an addition back I that total growth, the market in the the billion. found out today's on market, I'd our is estimated to The of over encourage are now onsite slides be active to of two like inflation

the giving details provided timing of are a construction in project context products when In we to addition, ADS commercial involved slide projects, on with timeline. the

With that, I'll the to over turn Scott. call-back

Scott Barbour

before for it questions. I Thanks, want Scott. of up key A couple we open to highlight items

better today. guidance basis results against First, top-of-mind, spoke this I know than its and we April were to that a expected, on consolidated marginally

demonstrated as to XXXX. the we committed issued in to guidance the EBITDA XX% remain we Second, adjusted through target today, fiscal XX%

about. our in And our comes but to commitments, to we We cost be as will to the meet these keep of production manage service mind. importantly, we'll continue that able always upturn to customers want

Last, there confidence capital ADS increased proven model us both markets, share have in significant we to increase planned and is fiscal market-share in XXXX. our still investments end the for gives Infiltrator these opportunity for

invest conversion will of good have we this service that this in automation, We regions, demand when capacity package, relevant solutions to some of choice position committed to and management solutions. slower partner maintenance the recycling strategy ramps safety improvements and new markets. The sustainable capacity the ADS up, proposition, use to remain products, be ensure in in our and to these and market period important the right and leader the highly water unique in we're sustainability value water in being

with it So open that, for up questions. let's

Operator

Baird. [Operator is line Instructions] your ahead, Michael Our from open. you. Thank question Halloran Michael, please go today first comes from

Michael Halloran

morning everyone. Hey, good

Scott Barbour

Hey Michael.

Michael Halloran

And congrats well. to Roy as

here. a So things couple of

end-market So, loosely entails to what more of guidance low-end. end guidance when am to an about do not non-resi the numeric, side the something about where the the and you am on we you perspective? resi, might end range. that landscape the are and compares what thinking environment I the the you that lower think talk high-end of bottom the type upper Could and looking think for like I range just in of how look from And at

Scott Barbour

will happy is nice and And with with admit. our a Roy send off him. evening. guy, Board Okay. we Mike. miss to him And [indiscernible] have a I pretty had we

what see events than overlapping I our the as would to to environment, of demand And material think And events we're upper price and would occurred probably what question And in say is a if would weaknesses to guidance to I a then the demand get are plan residential the continued worst favorable require environment. upper-end, of to a upper-end? would end say, have which of occur to upturn of and the the would I that non-residential. to get between have I that have environment. in quicker So, set Right at the the markets to your get to upturn get certainly now, of lower-end? upper quicker the and weak, end part guidance, correctly, that get set we

The end pretty working let's lower weakness. be that Right end the we're of Now, but now, is upper some non-residential the really clearly guidance, say. well. the getting be in particular us non guidance extraordinary good, if took environment down. price there would the That were -- of it would towards more event material the

standards me of and there. keeps that and what construction meat tightening those me our night, which effect potatoes regional were lifeblood it's are the projects local kind ask credit banks, of up at the you If out of It's stuff. on

infrastructure, the meat that onshoring not of that the but offset some all Now, and of it, potatoes.

the if event that the worst would extraordinary wrong there So, kind opposite governed then effects. of guide of or -- lower the we plan. materials end by lower me that that have we we This plan, And can't things end and the way. But a guidance. around took on non-residential market of some those the control, them was handle pricing would good thinking think be pricing about on very worry the the

Michael Halloran

maybe there's you the way of credit tightening a a in where -- context the pent-up about And Are That you're little anywhere a there bit weakness as in give demand, standards? makes seeing hesitance of Is you're given more the sensing sit here? market question interactions they're lot on seeing and that the the better a little think what we is, ask the of also of to a strength, you saying. market? just lot some non-res the the these, where space, pockets some in When sense. more bit customer, the some

Scott Barbour

either because some pretty increased forward trigger so smiled, And -- hesitancy on are financing that or there, in those The because west, worry most where described more particularly other we we our trigger. do the has Northeast, the I for there's Coast, are to of hesitancy about move just with projects, of robust, there hesitancy sales see is to of to things much in the Particularly robust. in more non-residential, always Texas projects, Ohio, around equity leadership to Southeast, demand new Atlantic demand. not Central where rates requirements very projects. but There's vacancy places, kind as the the in out We the regions the about real-estate is area. some go talk lot robust no we pull out pull weakness. that's other

Scott Cottrill

Onshoring strong. been is

Scott Barbour

on that we the development We've pursue pursuit of and we're in the onshoring. business get strong, point. of has many a Onshoring pursuing shipping makes lot actually homebuilders we're all I engineering better has datacenters warehouses six been been vehicle electric battery last to and some there's projects and in Scott -- a there’s residential this perfect actively related, good activity to projects that, pretty the the over us nine sometimes well vehicle platform different probably on. to different but plot made kind for think. pivot of a the different type And know firms, that relationships, contractors, as -- months, of you developed we've

Michael Halloran

Thank you. Great. time everyone. Really appreciate the

Scott Barbour

All right. Thank you.

Operator

Thank you.

Matthew, Our is comes today open. Barclays. line next question Bouley ahead, Matthew from from please your go

Matthew Bouley

for the you Thank everyone. morning Good taking questions.

fiscal in mentioned. line a XXXX you your you're margin in XXXX question Investor as just the So is to that with a longer-term kind Obviously, outlook, margins. Day on of guiding effectively

end you're in we markets? if -- a type clearly you profitability but this assuming a the in of can have should of that looking that think end-markets. look think necessarily structural kind what of I'm to recovery pressured able like, So the in how we about guidance, you. those not by for do that's year margin business do volumes look, Thank

Scott Barbour

kind what's bit the actually it's Investor the the we're target company. it, and Matt, ultimate eternal went XXX range, long-term look of the to range. that to pleased we profitability that probably we kind And plan. confidence there's plan, Day Okay, get the we in we of of a -- stay to three first in that past pretty next question that type And at of be leg-up in next that's as another year, the basis-point got in have little lot that of of able level a year can where three-year

topped or profitability out don't share, we to that increased kind in think business. market drive in our the as lookout, of you we've ability So in

of really Allied price, in and know, lot to that kind the margin that, added it's of material of trying gross closures in Infiltrator drive mix that. there's products, or you of As cost, We've business, in the big of ability improvements automation, three four factors -- the the pipe arms in to the conversion that and not things. costs around plant to get through that easy, some but couple our a been

that been the So be and to the the mix four -- price, will we remain all there will tools tools. These other continue that ones have important add to stuff. materials, adding will add mix, of to

be we're summary. think guess, don't I done my yet. I would that So

Scott Cottrill

fact Scott's really the The only business. we point, I'd to the add in thing still investing about talked we're

when ability the cost comes more in structure restructuring and investments on tooling side, the you is like we that back the reflective, the the automation been we need been we're adds And areas that. Florida, technology look the everything and And So, debottlenecking got, to years, enterprise and engineering the caught so in Southeast, about in at leverage growth demand in to running haven't investing to better. two take talking it productivity center, we in making been that recycling our refurbing the want. now, last maintenance to when to our we we then been care able We've of and -- able in as best equipment that and haven't up. get we've we're

margin go profitability piece, but really think mentioned, profitability So, not to I growth itself well part lends the story we our forward. Scott that that piece only as

Scott Barbour

yet. not We're done

Scott Cottrill

yet. done not We're

Matthew Bouley

in seeing guys you're for construction there have said. improvement And I land one, the the question side, to direct Got side. wanted particularly second the residential Well I exposure signs new guess you obviously, I on the resi is, of you some and on some Thank in early activity. signs then obviously, development guess, the it. that. of side, ask septic

mean And year one, residential the to see your what how number two, Thank So, you. trend? continuing number would is kind I within non-residential full of do if your effects you this be business, contemplated outlook? knock-on

Scott Barbour

demand you things it to those -- the impact hear but activity, So, for we're of the some and itself same in mentioned see kind us. and say, we that manifested just waiting right the now, us. talk, I'd land things We we those for some of all really in septic. orders development, hasn't see develop onsite

Matt, I going of, kind I these it's are back -- to some if did So today not going of to customers spaces the end. happen will happen, than it's it's in quarter, to think, better this certainly our they November. feel in

Michael Higgins

Yeah, Matt, this with agree is said. Higgins. Mike Scott what would I

more -- get I think know when as we to September. will we

Scott Barbour

early It is too right to now. call

Michael Higgins

Much of, into early fiscal too six-weeks our it, call to kind call, year.

through I think around marginally results know we that of as Clearly, good kind we laid were there's in right? of now, the in go some better plan work today, to going April play where the for residential, the you take positive through, Scott commentary but we summer. some than kind mentioned to it's but front time again, right space, we'll out that of more

Scott Barbour

that the signal And ADS. day to we be to get beneficial about that say, we a non-res much for nice and to the sure, September that signal would more I that positive that, would us be our four would residential, will let's that non-res feel months in and follow would business. to Matt, at six us, to mean,

Matthew Bouley

All thank and good it. guys. you right. Got luck, Well, gentlemen

Scott Barbour

you. Thank All right.

Michael Higgins

Matt. Thanks,

Operator

you. Thank

from John please open. Lovallo go is your line ahead, is John, question next UBS. Our from

Spencer Kaufman

John. Hey on you for questions. for guys, Kaufman Spencer actually, the good morning. This is Thank

a to transportation. well pullback sustainable you what is for happen pricing need if had to current First one, have down? come as price costs mentioned in seeing those you And continue backs] I your WMS do guys as would How to (ph)? costs, [get some think material think

Scott Cottrill

the Yeah. we as resin resin the the Spencer look of got seeing well. talk that cost we fact on I is of others. we've because and But when will hold of it’s on It's comes majority off prop, we're the pricing again, couple seeing of inflationary pricing always our utility [indiscernible] you come at we and last mean, even because hold to value the way the and we're to years, it that off, most pressures onto costs labor of the over got that. still we've

Spencer Kaufman

the reason about year? Okay, type it. think maybe CapEx. of I bit sort look you're about that. the are you mean, how projects happen. to would Is I assume in talked some we I'm Investor because normalization but just go going imagine CapEx your CapEx got of probably And that higher is Day your versus the here? guys longer-term, exiting some we guys at And in outlook probably you if just this it should on guide what investing little fair to the than year, is of really asking going to a just

you So are about I'm moving guys that just forward? curious how thinking

Scott Cottrill

we right our generation, I we based adjusted $XXX and XXXX, flow lowest-risk would on leverage business, to now, based $XXX $XXX year million to many say, at And million in of times have of the these spend mentioned to taking kind this year cash XXXX operations X.X to North to flow so water at our our we're right levels cash million sheet capital. business to put talking on the invest in I about leverage, we of that now, ended and it's that owned want And earlier would X.X is last target at times. the prior of our in from or highest-return of fiscal There ratio balance are the that use here say again, EBITDA trajectory. guardrails, our just use. conversion in our CapEx two Yeah. year, we're current another opportunities that our fiscal America range going accelerated the least

way. through got, allocation, that then will, continue of to optimize if to and our to that shareholders we'll and target, capital kind and leverage that we hit forecast that return our cash we've excess program capital we deployment be comes our then to So have share the cash repurchase

flexible very capital over and much allocation lever we're on it a optimizing advantage of significant We years. very taking plan have, to couple strategic that being know is deployment much next of priorities that will committed the we and So fully and it. here

Spencer Kaufman

Got the luck Thanks. color, it. Appreciate Scott. guys. Good

Scott Cottrill

Thank you.

Operator

you. Thank

Our is is your line ahead, Deutsche Bank. Joe, Joe Ahlersmeyer from open. please next question from go

Joseph Ahlersmeyer

morning, to finish good Hey, nice the everyone year. and

Scott Barbour

you. Thank

Scott Cottrill

Thanks, Joe.

Joseph Ahlersmeyer

Yes.

at you that bit So baked in really maybe dimensionalizing the more, it a you that into term? I further trying you just see today, I'm for balance provided number? is that Would I only the for PO's hang prices either favorability range to qualitatively near relative deflation. your what's the resin your gross you today on EBITDA? sheet talked mind or in see now there to kind in call favorability purchases about this from point to at we where range materials this out just if they what guess the gross number are price-mix additional And of Does the point would spot year represent the understand

Scott Cottrill

Yes.

material our and waterfall bar in I EBITDA It to bridge couple So forward going it's the been at that been Joe green been and to it's entirely we we commit performed last talk job And does driven end-of-the-year. be at XXXX actions. presentations you a when guide, green over as our that pricing years, our secret, and move quarterly to or story chart of if be going that it good present bar. into to couple of cost no price-cost but deflation, has years, as historically, if look of much showing way is, point. the look last generated to your you management not, it's very bar the forward the largely, we a of by we've the would And and

the the and onto very our we that last be increases majority we'll about we've price smart said, That that always talked are. is the locally years commitment. being We gotten of two over holding like about

We like have does. everybody competition

that look So about that. and at we'll be smart

end-market, the a We bit to we competition more commodity-based conversion little have little business. in of be to a don't bit that's a there, -- story which also got have is agriculture sensitive that we

So we've of those reflected the now, will represented Right our during if then talked pivot in that And project are -- adjust. and and year, guide. plus based. things in that quoting XX% change as and are our things the we'll past, pricing is obviously,

got see ability cost keeping our utility So, differently go in on to if things We've happen we energy that our types resin the making front adjust side, or of we either in of the of pivot side, a those we them way great make side, that happen guys any in things sure than job and labor cost sales and accordingly. a do that what in of expect. and that

Joseph Ahlersmeyer

first if hate what guy, to Thanks point? does just to had on that the than I non-res for great. to more that outlooked res? XX% to or to about comment by And comment driven, point the down I be non-res? color. And res in XX%, maybe coming XX% look to non-res the of was April same it sort than in this Okay, the it that could guess better at but is I versus Or of whether more, dig down little more a for relative the half on that maybe you sort XX% XX%, just contextualize res XX%

Scott Barbour

material this as for line putting better month. slightly But price and the and the were kind together I The of outperformance the and more we revenue So performance sales say mix slightly transportation kind led was -- would that than there would, about by of in non-residential. and the plans thought we than residential guidance. where it better came was with we total out anticipated

we're of good right? we slightly we're extract knew use, had plan, a a real to ahead and had to go data -- point is year. against month, like It's start know, We around people it's month. people looking to not like I'd we say would in for okay. construction standards decent the non-residential affects the and executing in how word What The want hey, lending This kind It's that early the, year. projects. It's a the uncertainty of May's plan to is, whole plan.

ADS the front we're as the in and business. it's the And of know at all chart, in the process end you construction

impacts start Had in that overestimate year this and guidance. stuff a bit. a to do put could good we And good have I quarter we we if that it. like the and us, to little we'll to not So what working this -- want just start, did gets be to keep what mean, a that's waivers you'd and us. what the that's and

Joseph Ahlersmeyer

quarter the Understood. Obviously, luck guys. additional detail. Good on the appreciate

Scott Barbour

Thank you.

Scott Cottrill

Thanks, Joe.

Operator

Thank open. please from go comes is Loop Instructions] [Operator Stevenson question Capital. your from Our you. next ahead, Jeff Jeff, line

Jeffrey Stevenson

my taking questions for thanks today. Hey,

that gains And that accelerated it funding So calendar in infrastructure the IIJA meaningful looks are you then during year how of any back-half versus much are share is yet like overall story? flow-through quarter, growth a the and market of more or of wondering growth? seeing

Scott Barbour

say probably we had Barbour improvement quarter quarter some or here, Scott in and growth would for gain. the infrastructure, where showed So, each some showed minimal each it's Jeff. improvement, I us year share

will what in wouldn't performance, IIJA. flow been from minimal where we I Southeast, know projects get But gain in as we future get think we and specified the our in projects as coming or Florida, said, be approved Coast two share specified share Texas, the gains on it gains. years since the just was call more real the on East last does That that flow probably share our money that I now was year to IIJA date, probably? funds in that to that beginning in

Scott Cottrill

Roughly.

Scott Barbour

the a repair bridges, are I been in flowing field. kind is design. services, wouldn't direction been in that of of our out has it It's lot all asphalts, and our yet, money say replaced, guys of on

I is and capacity yet of where the those that's play which is roads to spending adds really in packages. highways, in come think So we

Michael Higgins

gone year the activity said. kind What of is good infrastructure was of on the really that to early is and and get XX% Scott of been mature but just teams where which in funds back, so guys or Jeff. of traditional there, quickly. much amounts very has Texas about We're past starting feedback real thing close kind Scott the what there we from think have Yes, material over more pretty Again, be our said, of and our The approvals has been pretty in repairing seeing sales. our out we Mike what success I market can really probably states Higgins. is Go the the good kind work to there. ramp. growth not pretty reconstruction reiterate mobilized fields to the have just

stuff the And flow So that's transportation you'll construction, to The we best will really start the on play, et stuff kind roads, new see of like expansion still that. back-half cetera, the in the come. for through release is, and of that now of maintenance, year. repaving is knowledge capacity of where kind

Scott Barbour

Back next half over the year.

Michael Higgins

selling to or look are years back of we we for today. some least see, mean, our see is that big we're volume our on a this program. activity. going don't I knew us, this hey, We'll where decent I one and at in you're what think spike share volume four or won't multi-year you is now we'll better say, from five and amount than Yes.

Jeffrey Stevenson

Very [Multiple helpful question just second color. And is Sure. Speakers]. then my

Scott Barbour

apologize. Could I'm your add sorry. question, your if repeat you question. repeat in I'll thing I my

Jeffrey Stevenson

worries. No Yes.

right now, over? inventories kind of you how view and the Just is on destocking

Scott Barbour

pace out. the most that thing over. sales to the is -- a lot in that, about important make is doubt Yes, all when Infiltrator. Infiltrator, years No done. intake where two the I that's program for did of And occurred about business. back that. pursuit comes we would worked confident two primarily made is was think investment about we We've plus we exact organizationally the package when of apologize bid big going or it order kind the in we through kind We're pretty years ago some quick for time Mike's right Craig, what that we've Roy, talk Starting that happen. exclusively those it was that and their to like I a infrastructure on in pre-pandemic. right I really and it And in and feel something occurred and multi-year tacking talent, not to add, share. we ago, public the gain where It's onto was waiting team a very place destocking turnaround is ship And stuff that that, could thing, of -- reorganization knew

that a those sales was and guys we IIJA doing talent, and started gain know was are nice those We talent markets those making states X.X Texas and the doing we are ago. Bob we proud business and the those very and Before those That that Jon approval, even more what team efforts. ton than Klein years of about did thing, approved development investments really a helped job. Sickels. a share knew in We're drive all

investments that to business, of ago. about We the to that So think our because business. we have and think That about to does about time we one is, have able our And and scale things in when business we make years make I -- that business. I to go I long-term we're this mean and don't some pay that's of see talk versus us, off. go competitors resiliency it's and and that’s And investments do I different the go of understand the always scale X.X take and organization really size our those a capability in long-cycle that. many that people,

that's took to -- this part time I whole important think. of thing a So there the little just I really

Jeffrey Stevenson

Great, thank Thank you. you.

Operator

Thank you.

question please line Blair next is Oppenheimer. your from from is Brian, ahead, Our go open. Bryan

Bryan Blair

Thank Good morning, everyone. you.

Scott Barbour

morning. Good

Scott Cottrill

Good morning.

Bryan Blair

relative To further apologize, I your I order frame into this and backlog of [stat] pre-pandemic going run-rate detail. is fiscal to XXXX/ How missed levels? look your (ph)

Scott Barbour

Okay.

in XX levels -- of type a it of ships The to get Barbour, that $X -- welcome. a would XXXX we what, I behavior behavior backlog days more a cycle you of business, million, down backlogs and XX three where two have, is ADS let's it's million This would a kind more days. within to or day to the fast it's and day $X backlog levels. them little as one let's first. pre-pandemic, take So pre-pandemic, is is maturity out Infiltrator and where backlog day Backlog -- of that reflective of now Scott it Infiltrator three order, and is of example, take think through different, an just were an very Bryan as

thought bubble in these that in that, hits flushed to and areas, of the somewhat tells side all got them of tells well, many in overstocking we've of we're in some regions the below and kind kind back looks back kind on it us says, any areas, at some us we've ADS we to Which levels some there pre-pandemic that of again out country. of areas, the the absorbed were channel, it

As you know, it's a that very way. regional business. And you it have to look at in

Scott Cottrill

one. above staying Book-to-bill

Scott Barbour

demand The book-to-bill is It's down those believe. kind of over the one. I above -- bubble periods is just

Scott Cottrill

sales backlog. which above of days to that peak And month in extremely days now at we backlog, think or of the is the tracking to bit ADS business, high. XX of of XX kind sales the little closer were kind I one and tracking on we're roughly a

in as there accustomed So that of that difficulty you're shows now demand to… that your Scott we're there much know we’re level us lot came because kind the and that to a outstripping us deliver through, supply-chain, able being of and you was was that's a at where worked capacity at mentioned, meeting on-time, more

Scott Barbour

I'd the case say that's January. been since

Scott Cottrill

Yes.

Scott Barbour

adjustments, in our those think in that we October, making Since and were in February, in March, residential, non-res customary in and been the of April really January, shipment markets behavior. had types November hard November-December. it there were also, early behavior very December, clearly -- November, the began adjustments on I going adjustments then started September

Michael Higgins

that I back far we're order other well of kind trends. the as as seeing to would order with matches up go I we've think the the is your And part of that guidance question issued today. activity

Bryan Blair

or up your there think the Are And scale that would be metrics detail. helpful. funnel of to Anything helpful the help any opportunity you Very offer overall? us very runway infrastructure teams following of pipeline can multi-year on and bidding other project on there. Understood.

Scott Cottrill

I is, are incremental very kinds lot of There that. to and we streets. numbers. roads talking large of what that. really in -- projects the kind is types and a detailed a Yes, I of of and work on would really haven't you're play mean, kind of lot the highways of to We're going impact caution people in

got we a construction -- And our that at or look product street is kind typically to standard is highway so, on construction. what you've of then and

of magnitude kind X% somewhere Let's just value. of order rough the of call it of X% project to

the what's the us, that of for So kind you idea of the -- opportunity will real give an right?

Bryan Blair

helpful. Thanks Very again.

Scott Barbour

you. Thank

Operator

today. Thank questions you. This is we all the have

like back management to hand for the I'd team it So closing any to remarks.

Scott Barbour

have you. We you the good a the day of Thank today and forward a good right. to really and We talking and very and to call And later today's of next appreciate answer them. questions, questions to look good in over we're glad participation All the couple several weekend. days.

Operator

joining for call. everyone today's you Thank

disconnect now lovely your may have and You day. lines a

Advanced Drainage Systems (WMS) 18 May 232023 Q4 Earnings call transcript