Advanced Drainage Systems Reverses Early Morning Plunge, Stock Still Lower By 2%

March 30, 2016 12:16 PM | 2 min read | Make a Comment
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Advanced Drainage Systems IncWMS
, a designer and manufacturer of pipe and related water management products,
issued a downward revised full year fiscal 2016 guidance which initially sent shares plunging lower. Shares of Advanced Drainage Systems opened for trading at $21.70 on Wednesday and quickly plunged to an intra-day low of $19.91. However, the stock quickly rebounded and was trading lower by less than 2 percent at $21.95 early afternoon. Advanced Drainage Systems said it expects its full year sales to fall in a range of $1.280 billion to $1.287 billion, adjusted EBITDA to be in a range of $180 million to $190 million and expects its capital expenditures to be approximately $45 million. The company guided its full year expectations back in Mary 2015 as follows: net sales to be in a range of $1.320 billion to $1.365 billion, adjusted EBITDA to be between $190 million to $215 million and capital expenditures to be approximately $40 million. Advanced Drainage Systems noted its revised expectations reflects adjustments related to a restatement of its historical financial statements and changes based on the ordinary course of business. Joe Chlapaty, Chairman and Chief Executive Officer of ADS commented, "We experienced strong momentum in our sales trends throughout fiscal year 2016, driven primarily by healthy conversion and favorable weather conditions in the majority of our end markets. Overall, we expect to generate net sales growth between 8.5% - 9.1% in fiscal year 2016, including strong double-digit growth that occurred during the second half of the year. Importantly, we anticipate our growth of 8% - 9% in our core construction markets will significantly outpace the market growth by 300 to 400 basis points. This momentum is expected to continue into fiscal year 2017, supported by double digit order activity and complemented by lower raw material and energy costs, which remain favorable compared to the prior year."
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Posted In: NewsGuidanceAdvanced Drainage SystemsDrainage SystemsJoe ChlapatyWater Management
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