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| 8-K - CURRENT REPORT - ADVANCED DRAINAGE SYSTEMS, INC. | d879258d8k.htm |
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Barclays Building & Building Products Symposium
February 26, 2015
Exhibit 99.1 |
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2
Forward Looking Statements and Non-GAAP
Financial Metrics
Certain statements in this presentation may be deemed to be forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. 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” 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; volatility in general business and economic
conditions in the markets in which we operate, including, without limitation, factors relating
to availability of credit, interest rates, fluctuations in capital and business and consumer confidence; 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, including competition from both
manufacturers of high performance thermoplastic corrugated pipe and manufacturers of products using alternative materials; our ability to
continue to convert current demand for concrete, steel and PVC pipe products into demand for our high
performance thermoplastic corrugated pipe and Allied Products; 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; our ability to achieve the acquisition component of our growth strategy; the risk
associated with manufacturing processes; our ability to manage our assets; the risks associated with our product warranties; our
ability to manage our supply purchasing and customer credit policies; the risks associated with our
self-insured programs; 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; our ability to project product mix; the risks associated
with our current levels of indebtedness; our ability to meet future capital requirements and
fund our liquidity needs; and the other risks and uncertainties described in the Company’s filings with the Securities and Exchange
Commission. 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. This presentation includes certain non-GAAP financial measures to describe the Company’s
performance. The reconciliation of those measures to GAAP measures are provided within
the appendix of the presentation. Those disclosures should not be viewed as a substitute for operating results determined in
accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that
may be presented by other companies. |
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Management Presenters
Joseph Chlapaty
Chairman, President & CEO
Years at the Company: 34
Years in the Industry: 34
Mark Sturgeon
Executive Vice President, Finance & CFO
Years at the Company: 33
Years in the Industry: 33
3
Ron Vitarelli
Co-Chief Operating Officer & Executive Vice President for Sales and
Marketing
Years at the Company: 26
Years in the Industry: 26 |
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ADS –
An Industrial Growth Company
The leading player in the industry
The only complete solutions provider for the water management
industry, with a history of product innovation
Track record of market share gains with material conversion
growing steadily over time
Large addressable opportunity across diverse construction
markets
Demonstrated ability to deliver above market growth, EBITDA
margin expansion and strong cash flows
Experienced management team with significant ownership stake
4 |
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ADS At A Glance
Significant management / ESOP ownership
ADS is the leading manufacturer of high performance
thermoplastic corrugated pipe, providing a comprehensive
suite of water management products and superior
drainage solutions for use in the construction and
infrastructure marketplace
–
Core products include thermoplastic corrugated pipe,
fittings, filters and chambers
Superior physical and performance characteristics
compared to substitute products such as concrete and
steel, driving conversion and market share gains
Network of 61 global manufacturing plants and 29
distribution centers
Highly diversified markets poised for recovery
Company Snapshot
FYTD2015
Sales
by
Geography
(1)
FYTD2015 Domestic Sales by End Use
Agriculture
19%
Infrastructure
10%
Residential
19%
Non-
Residential
52%
Construction: 81%
Domestic
87%
International
13%
Note: Fiscal year ends March 31.
1.
Does not include certain international sales stemming from our Joint Venture in
South America. Our Culture:
Our culture is results oriented and promotes competitiveness and a desire to win,
hard work, integrity and mental toughness
5 |
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Comprehensive Product Portfolio
Note: Net Sales based on nine months ending December 31, 2014.
Pipe Products Portfolio:
$738mm of FYTD2015 Net Sales
Inserta
Tee
FleXstorm
Nyloplast®
Water Quality
Units & Filters
Geotextiles
Allied Products Portfolio:
$233mm of FYTD2015 Net Sales
Comprehensive product offering with attractive growth opportunities
Dual Wall (N-12)
HP Storm & Sanitary
Fittings
Chambers
Water Quality & Other
Structures
Triple Wall
Single Wall
6
StormTech
®
Chambers |
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THROUGH STRENGTH
StormTech
Chambers
Water Quality
Nyloplast
Structures
Fittings
Pipe
Water Management Solutions
Technical
&
Financial
Feasibility
Concept
Initiation
Design
&
Specification
Permit
Bid
Construction
TIME
Project Life Cycle
Foundation / Sump Wells
Downspout / Landscape /
Window Well Drainage
Culverts / Edge Drains
Wastewater
Disposal
7 |
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Clear market leading positions across all key
product categories
Unmatched operating scale and distribution
network: ~10x larger
than nearest domestic
HDPE competitor based on revenues
Fleet of approximately 625 tractor-trailers
combined with our advanced, versatile and
portable tooling equipment enables unmatched
manufacturing capabilities
Unrivaled technical expertise driven by our group
of over 50 field based engineers
Long-standing relationships with our expansive
network of distributors
The Clear Market Leader
Unmatched Operating Platform
Sole provider of holistic water management solutions to our industry
8
Puerto Rico
Manufacturing Plant
Distribution Center |
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Extensive Network of Distributors
Wholesale
Retail
Recreation
Buying
Extensive Network of Distributor Relationships
Leading Sales Force
Help educate design engineers and government
agencies to encourage the specification and
inclusion
of
our
products
and
obtain
regulatory approval
Consistently maintain thousands of touch-points with
customers and regulator authorities
Our broad product suite is highly attractive to end
consumers and has imbedded us as a supplier of choice
for many of our major customers
9
Network of over 230 dedicated direct sales professionals
with technical or engineering backgrounds
Highly
trained
and
qualified
to
educate
design
specialists and engineers
Supported
by
approximately
50
field-based
engineers
Our
technical
expertise,
complete
product
selection
and
distribution
network
position
us
as
the
critical
solution
provider |
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Significant Competitive Advantages
Competitors
Customers
ADS’
product portfolio, technical expertise, history of approvals, supply chain and
logistics capabilities support our leading market position
Comprehensive
Product
Offering
Customer Service,
Supply Chain,
& Logistics
Field Personnel /
Relationships
Approvals /
Specifications
10 |
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A Superior Product Compared to Alternatives
HDPE / PP is generally 20%
less expensive on a fully-
installed basis than RCP
= Strength of product attribute (full circle is strongest)
RCP resistance to abrasion
based on greater wall
thickness
HDPE / PP is lighter and
comes in longer lengths than
RCP
HDPE / PP is “flexible”
and
more sensitive to proper
installation
Key problem with CMP
Failure due to corrosion is a
major issue for CMP
All 3 equal assuming proper
installation
RCP is as good as HDPE /
PP in the lab but slightly
under-performs in the field
HDPE / PP
Reinforced Concrete (RCP)
Corrugated Metal (CMP)
Commentary
High Density Polyethylene (HDPE) and Polypropylene (PP) have superior attributes
relative to traditional materials
11
Ease / speed of installation
Installation sensitivity
Structural integrity
Resistance to corrosion
Resistance to abrasion
Joint integrity
Flow characteristics
Overall
Fully-installed cost |
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Multi-Pronged Growth Strategy
Well positioned to capitalize on growth driven by the strength of comprehensive
offering, our market position and being the only complete solutions provider
in the industry 12
Market Conversion
Allied Products
Market Recovery
Focus on displacing
alternative materials –
concrete, steel & PVC
pipe –
both
domestically and
internationally
Provide a strong value
proposition with our
superior High Density
Polyethylene (HDPE)
and Polypropylene
HP(PP) N –
12 pipe
product offerings
Portfolio of storm
water management
product lines
Allows us to offer a
comprehensive water
management solution
Differentiates us as a
solutions provider
compared to our
competition which are
viewed as product
suppliers
Current addressable
market opportunity
rebounding from a low
of approximately $10
billion; still well below
peak levels
Predicted solid
recovery in non-
residential –
our
largest end market
New housing starts
improving with new lot
development
International Growth
Creating strong growth
platforms utilizing local
partner’s relationships
coupled with our
world-class
manufacturing
expertise and
innovative product
portfolio
Focus on attractive
international markets
with large conversion
opportunity and low
risk |
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A Strong History of Market Conversion
1.
Based on Management’s estimates.
2.
Source: MarketLine.
Corrugated
HDPE
pipe
has
been
displacing
traditional
products
such
as
reinforced
concrete,
corrugated
steel
and PVC pipe, across an ever expanding range of end markets since the late
1980’s Contractors,
engineers,
and
municipalities
continue
to
acknowledge
the
superior
physical
attributes
and
compelling value proposition of HDPE pipe
HDPE Share of Storm Sewer Market
(1)
Cement Pricing
(2)
Relative value of our products vs. concrete
should continue to rise as cement prices increase
($ Per Ton)
(HDPE % Share)
We continue to capture market share by driving industry conversion to our
products 13
<1%
<10%
20%
25%
0%
5%
10%
15%
20%
25%
30%
1990
2000
2010
2013
$80
$90
$100
$110
$120
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017 |
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Allied Products and Innovative Pipe Offerings
1.
Historical sales figures are unadjusted for inflation.
Allied Product Growth
Comprehensive portfolio of high margin products providing holistic solutions to the
water management industry
($ mm)
14
New Product Introduction & Ventures
2010
2012
2013
Acquired the remaining 50% interest in StormTech
Acquired Sewer Tap (Inserta Tee)
Acquired Flexstorm product line, established
Baysaver joint venture
2009
2011
2014
Product introduction: Bend-A-Drain (Retail Market)
Established Tigre-USA PVC Fittings joint venture
Product introduction: StormTech Mega Chamber -
MC4500
Product introduction: HP Pipe
Product introduction: StormTech Mega Chamber –
MC3500
2015
Acquired Ideal Pipe of Canada
HP N-12
StormTech®
Chambers
FleXstorm
Nyloplast®
$195
$231
$249
$260
$100
$150
$200
$250
$300
$350
FY11
FY12
FY13
FY14 |
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Addressable Market Opportunity
Agriculture
19%
Infrastructure
10%
Residential
19%
Non-
Residential
52%
FYTD2015 Domestic Sales by End Use
U.S. Non-Residential Building Construction Put in Place
(1)
Domestic markets served still well below prior peak levels
Construction: 81%
1.
Non-residential Put In Place based on McGraw Hill Dodge Research.
2.
Total U.S. Housing Starts estimates based on McGraw Hill Research.
Thousands of units
($ bn)
Total U.S. Housing Starts
(2)
15
50
150
250
350
450
2010
2011
2012
2013
2014P
2015P
2016P
0
625
1,250
1,875
2,500
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014P
2015P
2016P |
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Track Record of Above Market Growth
Non-Residential
Residential
Infrastructure
Agriculture
FY2010A
–
FY2014A
Domestic
Revenue
CAGR
vs.
End
Use
CAGR
Our holistic water management solutions has propelled above market growth across the
cycle 1.
Based on management estimates.
(1)
16
(6%)
10%
-10%
-5%
0%
5%
10%
15%
3%
6%
0%
5%
10%
15%
(4%)
2%
-10%
-5%
0%
5%
10%
17%
22%
0%
10%
20%
30%
ADS Growth
Market Growth |
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YTD Domestic End Market Performance
Non-Residential
Residential
Infrastructure
Agriculture
Domestic
Net
Sales
Growth
–
Three
&
Nine
Months
Ended
December
31
st
Compared
to
previous
years,
stronger
growth
is
being
seen
in
the
non-residential,
residential
and
infrastructure markets
17
10%
14%
0%
5%
10%
15%
20%
9%
9%
0%
5%
10%
15%
(1%)
16%
-10%
-5%
0%
5%
10%
15%
20%
25%
(5%)
(5%)
-20%
-10%
0%
10%
Three months ended
Dec 31, 2014
Nine months ended
Dec 31, 2014 |
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FY2015 Guidance
18
Commentary
FY2015 Net Sales and EBITDA Guidance
•
Net Sales
-
$1.185 billion to $1.2 billion
•
Adjusted EBITDA
-
$156 million to $160 million
Fundamentally, our business remains strong as
we continue to see robust demand for our
products in favorable end markets.
As we saw last quarter, unexpected weather
patterns can have a significant impact on our
results, with adverse weather historically
having the greatest impact during the fiscal
third and fourth quarters.
The recent, unusually cold weather in the last
half of February 2015 has caused a temporary
standstill in construction projects in
geographies ranging from New England to
Texas and the Carolinas, delaying their start or
completion. As these projects start back up, we
will see revenue normalize, though the timing of
this is out of our control. |
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International Market Growth Opportunities
~30 exclusive territory distribution
agreements in Mexico
Mexico / Central America
South America
Infrastructure primarily concrete-based
with widespread storm drainage
problems
JV strategy in Brazil, Chile, Argentina
and Colombia
Canada
The leading HDPE producer in
Canada; expanding market share
100% owned
Recently completed acquisition of
Ideal Pipe, expanding manufacturing
footprint and sales coverage
Established
platform
in
attractive
foreign
markets
with
growing
infrastructure
needs
19
Manufacturing Plant
Distribution Center
CANADA |
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Ideal Pipe Acquisition
20
Purchase price of ~$56.8 million CDN
Trailing 12 months sales of ~$43 million
CDN, trailing 12 months EBITDA of $7.8
million CDN
Acquisition increases manufacturing
footprint from 2 to 5 facilities
Opportunities to apply best practices from
both companies to improve cost structure
Opportunity to leverage Allied Products
through the Ideal sales and customer
network |
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21
Strong and Deep Management Team
Marc Askew
Vice President of
Procurement
Jim Clemans
Vice President of
Operational Services
Mike Huebert
Vice President of
Allied Products
Bernie Pipan
Vice President of
Corporate Accounts
Kevin Talley
Vice President of
Human Resources
33 Years
26 Years
2 Years
Joseph Chlapaty
Chairman, President
& CEO
Mark Sturgeon
Executive Vice
President, Finance &
CFO
Thomas Fussner
Co-Chief Operating
Officer & Executive
Vice President
Ron Vitarelli
Co-Chief Operating
Officer & Executive
Vice President
Ewout Leeuwenburg
Vice President of
International
Operations
Robert Klein
Executive Vice
President, Customer
Relations
Michael Higgins
Director, Business
Strategy & Analysis
34 Years
33 Years
24 Years
26 Years
18 Years
22 years
19 Years
27 Years
15 Years
Dedicated management team, averaging over 23 years of industry experience
High level of management and employee ownership ensures aligned objectives
Track record of success across economic cycles
Experienced management are significant shareholders and together
with our ESOP own ~50% of the
company |
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61 manufacturing locations and 29 distribution centers serving
all 50 states, Canada, Mexico and South America
~160 global pipe production lines able to produce ~1.2 billion
pounds annually
Fleet of ~625 tractor-trailers and ~1,100 trailers specially
designed to haul pipe and fitting products
Advanced, versatile and portable tooling equipment enables
unmatched manufacturing capabilities
Significant production capacity to support growth with minimal
investment (currently ~65% capacity utilization)
Team of 50 field-based engineers work closely with key
agencies to obtain regulatory approvals and with civil
engineering firms to influence the specification of our products
Unique, proprietary production equipment that provides a
lower cost profile, dramatically higher productivity, and faster
delivery cycle
Cutting edge resin blending technology and expertise
–
Ability to utilize both virgin and non-virgin materials while
maintaining high quality
Vertically integrated in the recycling process
through Green Line
Polymers Operational Excellence & Technical Expertise
Industry Leading Technical Expertise
Scale and Capacity
Our leading market position is supported by our extensive manufacturing network and
industry leading technical expertise
22 |
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Effectively passed on historical increases in resin costs via price increases
Focused on increasing the use of less costly and less volatile recycled resin in
our production process while maintaining product quality and performance
characteristics We hedge ~50% of anticipated virgin resin volumes for
12-month rolling periods The “shale revolution”
underway in the United States is ushering in positive dynamics for the production
of our key raw materials
The anticipated result of increased ethylene plant capacity coming online is lower
overall prices as well as less price volatility for resin
Raw Material Cost Management
Through a combination of our increasing utilization of non-virgin material and
overall improving market dynamics for resin we are well positioned to manage
raw material costs
Input Mix: FY 2005
(1)
Input Mix: FY 2014
(1)
23
HDPE Prices
(2)
1.
“Other”
defined
as
resin
which
could
be
allocated
to
either
“Virgin”
or
“Recycled”.
2.
Chemical Data historical pricing for HDPE blow mold grade.
Virgin Resin
Recycled Resin
50
60
70
80
90
100
110
($ per pound)
Virgin
40%
Recycled
56%
Other
4%
Virgin
70%
Recycled
24%
Other
6% |
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North America Polyethylene Capacity Expansions
The next wave of capacity expansion will be in
North America
Low cost natural gas liquids from shale gas production
have made North America the low cost producer of
ethylene, and thus polyethylene, outside of the Middle
East
Most U.S. and Canadian polyethylene producers
have announced capacity expansions with startups
prior to 2018
Similar to the expansion schedule in the Middle East
over the last 10 years, it is likely that many of these
projects will be delayed or slow to come on-stream; thus
the surge of new capacity is expected to be more
gradual then announced
24
•
2014
–
LyondellBasell -
U.S. Gulf Coast
•
220 MM lbs HDPE (debottleneck)
•
2015
–
Nova -
Joffre, Alberta, Canada
•
1,000 MM lbs LLDPE
•
2016
–
Braskem/Idesa
-
Nachital,
Mexico
(Late
2015)
•
661 MM lbs LDPE
•
1.65 B lbs HDPE
–
LyondellBasell
-
•
992 MM lbs polyethylene
–
ExxonMobil
-
•
2.86 B lbs mLL / LLDPE
–
Ineos/Sasol
-
•
1.0 B lbs bimodal HDPE
–
Formosa -
Point Comfort, TX
•
661 MM lbs LDPE
•
2017
–
CPChem
-
•
2.2 B lbs polyethylene
–
Dow -
Freeport, TX
•
World scale Polyethylene, most likely mLL/LLDPE
–
Sasol -
Lake Charles, Louisiana
•
992 MM lbs mLL / LL / HDPE
•
Future
–
Shell -
Monaca, PA
•
1.1 B lbs HDPE (Slurry)
•
1.1 B lbs HDPE (Gas Phase)
•
1.1 B lbs LLDPE
–
ASCENT (Odebrecht/Braskem)
-
•
3 PE units (Ineos licensee)
–
Badlands
NGL’s
LLC
–
North
Dakota
•
3.3 B lbs of Polyethylene
•
Announced October 2014
Wood county, WV
Sweeny,
TX
LaPort, TX
Baytown,
TX
U.S. Gulf Coast
24 |
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Financial Overview |
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Financial Highlights
Above-Market
Growth
Attractive Cash
Flow Dynamics
Unmatched track record in driving market conversion
to our products from traditional products
with a long runway ahead
Ability to deliver complete solutions through our comprehensive portfolio of
products and expansive distribution network
Well positioned to capitalize on recovery in our core domestic end
markets Poised to benefit from operating leverage
and improving product mix
Ongoing focus on cost management and operational efficiency
Strong Earnings
Momentum
Attractive End
Market Dynamics
Significant production capacity supports low capex requirements to fund
growth Minimal interest expense given conservative capital structure
Proven history of generating strong free cash flows
Well positioned to drive continued growth
26 |
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MOMENTUM
THROUGH STRENGTH
Note: Fiscal year end March 31.
1.
EBITDA adjustments include one-time transaction costs and certain non-cash
items. 2.
Free Cash Flow defined as adjusted EBITDA less cash taxes, cash interest and
capital expenditures. 3.
Excludes impact of $22.6mm ESOP dividend on income tax and net income.
Historical Financial Performance
27
12%
$863
$1,014
$1,017
$1,069
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
2011
2012
2013
2014
$44
$52
$50
$77
741%
121%
178%
309%
0%
200%
400%
600%
800%
$0
$50
$100
2011
2012
2013
2014
$101
$117
$130
$147
12%
13%
14%
0%
5%
10%
15%
20%
25%
30%
$0
$20
$40
$60
$80
$100
$120
$140
$160
2011
2012
2013
2014
Adj. EBITDA ($ mm)
EBITDA Margin ( %)
Actively drive market share gains through material
conversion and Allied Product growth
Muted demand in the non-residential end market over
the past several years; however, broader end markets in
midst of recovery
Improving profitability driven by operational efficiency
and product mix shift, despite raw material headwinds in
recent years
FCF ($ mm)
FCF as a % of Net Income
Commentary
FY Revenue
FY Adjusted EBITDA
(1)
FY Free Cash Flow
(2)
Revenue ($ mm)
(3) |
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FY2015 Q3 Financial Results
28
Note: As of December 31, 2014; fully converted shares of common stock outstanding of
73.3 million, common shares of 53.2 million. 1.
Adjusted Earnings per fully converted share.
Summary Financial Highlights
Detailed Financial Results
Quarterly net sales increased 6.4%, to
$278.2 million
Adjusted EBITDA of $27.7 million
Adjusted earnings per fully converted
share of $0.03, compared to a net loss
of $.12 in the prior year
Declared quarterly dividend of $0.04 /
common share |
 LEADERSHIP
•
GROWTH
•
MOMENTUM
THROUGH STRENGTH
FY2015 9-Month Financial Results
29
Note: As of December 31, 2014; fully converted shares of common stock outstanding of
73.3 million, common shares of 53.2 million. 1.
Adjusted Earnings per fully converted share.
Summary Financial Highlights
Detailed Financial Results
Net sales have increased 9.4%, to
$971.2 million
Adjusted EBITDA of $137.3 million, an
increase of 5.2%
Adjusted earnings per fully converted
share of $0.62 compared to $.45 in the
prior year |
 LEADERSHIP
•
GROWTH
•
MOMENTUM
THROUGH STRENGTH
Current Capitalization
30
1.
Revolving Credit Facility has a borrowing capacity of $325mm.
|
 LEADERSHIP
•
GROWTH
•
MOMENTUM
THROUGH STRENGTH
ADS –
An Industrial Growth Company
The leading player in the industry
The only complete solutions provider for the water management
industry, with a history of product innovation
Track record of market share gains with material conversion
growing steadily over time
Large addressable opportunity across diverse construction
markets
Demonstrated ability to deliver above market growth, EBITDA
margin expansion and strong cash flows
Experienced management team with significant ownership stake
31 |
 LEADERSHIP
•
GROWTH
•
MOMENTUM
THROUGH STRENGTH
Appendix |
 LEADERSHIP
•
GROWTH
•
MOMENTUM
THROUGH STRENGTH
Shares Outstanding
July 30, 2014 (Post-IPO)
December 31, 2014 (FY15 Q3 Earnings)
As of December 31, 2014, the Company had
73,280,294 fully converted shares of common
stock outstanding. The following table illustrates
the breakdown of the period ending shares of
common stock outstanding:
Period
Ending
Shares
Outstanding
–
FY15
Q3
Common Stock
53,203,871
Unvested Restricted Stock
232,977
Convertible Preferred Stock
19,843,446
Total Shares Outstanding
73,280,294
33
As of July 30, 2014 (Post-IPO), the Company had
73,201,560 fully converted shares of common
stock outstanding. The following table illustrates
the breakdown of the period ending shares of
common stock outstanding:
Period
Ending
Shares
Outstanding
–
Post
IPO
Common Stock
52,876,151
Unvested Restricted Stock
226,313
Convertible Preferred Stock
20,099,096
Total Shares Outstanding
73,201,560 |
 LEADERSHIP
•
GROWTH
•
MOMENTUM
THROUGH STRENGTH
EBITDA and Adjusted EBITDA Reconciliation
Note: Fiscal year end March 31.
1.
EBITDA
as
net
income
attributable
to
ADS
before
interest,
income
taxes,
depreciation
and
amortization.
2.
Adjusted EBITDA as EBITDA before stock based compensation expense, non-cash
charges and certain other expenses. 34
EBITDA and Adjusted EBITDA Reconciliation |