Advanced Drainage Systems Announces Increase in Quarterly Cash Dividend

Rhea-AI Summary

Advanced Drainage Systems (NYSE: WMS) announced a 14% increase in its annual cash dividend to $0.64 per share. This decision, backed by strong financial performance and cash generation, reflects ADS' commitment to returning capital to shareholders. In Fiscal 2024, the company returned $251.3 million through dividends and share buybacks. The quarterly cash dividend of $0.16 per share will be paid on June 14, 2024, to shareholders of record as of May 31, 2024.

ADS, a leading provider of water management solutions, operates around 70 manufacturing plants and 40 distribution centers, and is a significant player in plastic recycling. The company focuses on commercial, residential, infrastructure, and agricultural markets.

Positive

• 14% increase in annual cash dividend to $0.64 per share.
• Quarterly cash dividend of $0.16 per share to be paid on June 14, 2024.
• $251.3 million returned to shareholders in Fiscal 2024 through dividends and share buybacks.
• Strong balance sheet and cash generation.
• Commitment to returning capital to shareholders while investing in safety, capacity, and productivity.
• Operates approximately 70 manufacturing plants and 40 distribution centers.
• One of the largest plastic recycling companies in North America.

Negative

• No mention of revenue or profit growth in the press release.
• No specific financial guidance provided for future quarters.
• Potential reliance on cash reserves for dividend increase.

HILLIARD, Ohio--(BUSINESS WIRE)-- Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading provider of innovative water management solutions in the stormwater and onsite septic wastewater industries, today announced that its Board of Directors (the “Board”) has approved a total annual cash dividend to its shareholders in the amount of $0.64 per share, a 14% increase over the prior year dividend amount.

Scott Barbour, President and Chief Executive Officer of Advanced Drainage Systems commented, "The 14% increase in the cash dividend is predicated on the strength of our balance sheet, formidable cash generation, and ongoing commitment to returning capital to shareholders. In Fiscal 2024, we returned $251.3 million to shareholders through dividends and share repurchases. Our strong financial performance and operational excellence initiatives provide us with the confidence and financial flexibility to return excess cash to our shareholders while simultaneously continuing to invest in safety, capacity and productivity at both ADS and Infiltrator."

The quarterly cash dividend amount of $0.16 per share will be paid on June 14, 2024, to shareholders of record at the close of business on May 31, 2024.

About the Company

Advanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite septic wastewater solutions that manages the world’s most precious resource: water. ADS and its subsidiary, Infiltrator Water Technologies, provide superior stormwater drainage and onsite septic wastewater products used in a wide variety of markets and applications including commercial, residential, infrastructure and agriculture, while delivering unparalleled customer service. ADS manages the industry’s largest company-owned fleet, an expansive sales team, and a vast manufacturing network of approximately 70 manufacturing plants and 40 distribution centers. The company is one of the largest plastic recycling companies in North America, ensuring over half a billion pounds of plastic is kept out of landfills every year. Founded in 1966, ADS’ water management solutions are designed to last for decades. To learn more, visit the Company’s website at www.adspipe.com.

Forward Looking Statements

Certain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “confident” and similar expressions are used to identify these forward-looking statements. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: fluctuations in the price and availability of resins and other raw materials and our ability to pass any increased costs of raw materials on to our customers in a timely manner; disruption or volatility in general business and economic conditions in the markets in which we operate; cyclicality and seasonality of the non-residential and residential construction markets and infrastructure spending; the risks of increasing competition in our existing and future markets; uncertainties surrounding the integration and realization of anticipated benefits of acquisitions; the effect of weather or seasonality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our operations through joint ventures; our ability to expand into new geographic or product markets; the risk associated with manufacturing processes; the effect of global climate change; cybersecurity risks; our ability to manage our supply purchasing and customer credit policies; our ability to control labor costs and to attract, train and retain highly qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; and other risks and uncertainties described in the Company’s filings with the SEC. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240516622957/en/

Michael Higgins

VP, Corporate Strategy & Investor Relations

(614) 658-0050

Michael.Higgins@adspipe.com

Source: Advanced Drainage Systems, Inc.

FAQ

What is the new annual cash dividend for Advanced Drainage Systems (WMS)?

The new annual cash dividend for Advanced Drainage Systems is $0.64 per share, a 14% increase over the previous year.

When will the quarterly dividend for Advanced Drainage Systems be paid?

The quarterly cash dividend of $0.16 per share will be paid on June 14, 2024.

What was the total amount returned to shareholders by Advanced Drainage Systems in Fiscal 2024?

Advanced Drainage Systems returned $251.3 million to shareholders in Fiscal 2024 through dividends and share buybacks.

What is the record date for the upcoming quarterly dividend of Advanced Drainage Systems?

The record date for the upcoming quarterly dividend is May 31, 2024.

What are some key operational areas of Advanced Drainage Systems?

Advanced Drainage Systems operates around 70 manufacturing plants and 40 distribution centers, focusing on commercial, residential, infrastructure, and agricultural markets.