advanced drainage systems, inc. (wms)

by:Nanqixing     2020-03-17
☒Annual Report submitted under Section 13 or 15 (d)
1934 Securities Trading Act☐Transition reports submitted under sections 13 or 15 (d)
1934 Securities Trading Act☐☒☐☒☒☐☒☐☒☐☐☒Directory statement about forwarding-
View statements, business risk factors, resolution of employee reviews, property legal procedures, safety disclosure of the registrant\'s common stock, related shareholder matters, and the purchase of equity securities by the issuer select the financial and operational data management department for financial status discussion and Analysis of operational results quantitative and qualitative disclosure of financial statements and supplementary data on market risks accounting and financial disclosure controls and procedures other information section ii. directors, executive officers and corporate governance executive compensation for the ownership of certain beneficial owners and management and related shareholders the principal accountant fees and services of independent directors part IV exhibits and Financial Statements
It appears to state our ability to remedy significant defects in internal control of the financial reports described in Item 9A.
The \"controls and procedures\" of this year\'s report and find further weaknesses that we do not currently know or have not yet discovered;
Effect of any claim, action, investigation or action arising from retelling our previously published financial statements, or matters relating to such restatements, including matters described under Item 3
\"Legal Proceedings\" reported this year \";
Fluctuations in the price and availability of resin and other raw materials, and our ability to deliver any increase in the cost of raw materials to customers in a timely manner;
Fluctuations in the general commercial and economic conditions of the markets in which we operate, including but not limited to factors related to credit supply, interest rates, capital and business fluctuations, and consumer confidence;
Non-cyclical and seasonal
Market and infrastructure expenditures for residential and residential buildings;
Risk of increased competition in our existing and future markets, including competition between manufacturers of high-performance thermoplastic bellows and manufacturers of products using alternative materials;
We have the ability to continue to change the current demand for concrete, steel and PVC (“PVC”)
Demand for our high performance thermoplastic bellows and related products;
Weather or seasonal effects;
The loss of any of our important customers;
Risks of international operations;
Risk of carrying out part of the business through joint ventures;
The ability to expand a new geographic or product market;
A table of content capabilities for the acquisition of our growth strategy;
Risks associated with the manufacturing process;
Our ability to manage assets;
Risks associated with our product warranty;
Our ability to manage supply procurement and customer credit policies;
Risks associated with ourselves
Insurance projects;
Our ability to control labor costs and our ability to attract, train and retain labor --
Qualified staff and key personnel;
Capacity to protect intellectual property;
Changes in laws and regulations including environmental laws and regulations;
Our product portfolio design capabilities;
Risks associated with our current debt levels;
The ability to meet future funding needs and fund our liquidity needs;
Other risks and uncertainties, including those listed under Item 1A. Risk Factors.
\"Table ContentsPARTIItem1.
We believe that our extensive national footprint in the United States creates cost and service advantages compared to our high density polyethylene pipe production competitors, only 11 domestic high density polyethylene pipes, the largest competitor, ranked according to the July 25, 2016 pipe, profile and pipe extruder plastic news, with recently estimated sales of $0. 14 billion, about nine times our net sales for fiscal 2017.
The ContentsAs table shown in the table below, we provide a wide range of high-performance thermoplastic bellows and related water management products for a highly diverse end market and geographical location.
At the time of the acquisition, $8.
5 million in cash;
$1 left
£ 0 will be paid on August 6, 2018.
34 catalogue of standard accessories (
T-shirt, wyes, elbow, etc. )
We produce and sell the products of the connecting pipe on the construction site are blow molding or injection molding in four domestic factories.
In addition, customized prefabricated accessories (e. g.
, More complex double wall tube reducer, elbow or structure)
We produce 20 factories in North America.
In addition to the extrusion of pipes, blow molding of accessories and injection molding, we have used various other processes in manufacturing facilities.
These processes include thermoforming, compression molding and custom plastic welding and manufacturing.
A wide range of production processes and expertise enable us to provide cost-
Deliver effective finished products to our customers in a timely manner at competitive prices.
We serve the international market mainly through joint ventures with local partners.
This joint venture strategy provides us with local and regional access to markets such as Brazil, Chile, Argentina, Mexico, Peru and Colombia.
These international facilities produce pipelines and related products and sell them in their respective regional markets.
Combine customer relationships, brand recognition and local management talent from local partners with our world
First-class manufacturing and process expertise, extensive product portfolio and innovation create a strong platform and exciting opportunities for continued international expansion.
In addition to quality testing at our manufacturing facility, we are equipped with two internal quality control laboratory facilities and with personnel to evaluate and confirm the quality of incoming and finished products.
We use centralized internal resources, combined with external third parties, to conduct annual safety, product and process quality audits at each of our facilitiesparty services.
In terms of quality, National Transportation product evaluation plans and other national institutions (“NTPEP”)
International Association of pipe and machinery officials (“IAPMO”)
Quebec Bureau of Standards (“BNQ”)
Intertek of Canadian Standards Association (“CSA”)
Mexicana de Acreditacion. C. (“EMA”)
NSF International and transport sector in many countries (“DOT”)
Municipalities conduct regular and irregular inspections of our plants to verify compliance with product quality and applicable standards.
Our operations and management training program is at the heart of our commitment and support for a safe, efficient manufacturing environment.
Through our advertising Academy, we provide targeted roles
Conduct specific training for our operations team members through a hybrid courseline and hands-
Training experience in safety, quality, product knowledge and manufacturing process.
With over 600 custom modules, our learning management system is the foundation for our operational training programs, providing us with the appropriate scale, efficiency and governance to support our growth.
We are firmly committed to training our manufacturing supervisors and managers through intense roles, including technical, management and leadership subjects
Based on the assimilation plan
Learning and classroom
Based on development experience.
We also run one.
A fleet of about 700 tractors.
Our effective shipping radius is about 300-
350 miles from one of our manufacturing plants or distribution centers.
The combination of the dedicated fleet and the company\'s driver team gives greater flexibility and responsiveness in meeting dynamic customer on-site delivery expectations.
We strive to do three or less. day lead-
Delivery time and the additional benefits of redeploying fleet and driver assets to cope with the shortage
Regional peak of sales activities.
For deliveries that are not within the economic delivery radius of our truck fleet, bid common carrier deliveries using a customized software platform to ensure minimum delivery shipping costs are achieved.
In addition, in the US and Canada, we have about 12% of the pipeline count by pickingup or walk-
On the basis of our factory and yard, further utilize our footprint to reduce the cost of shipping per pound and $ per revenue.
Facilities network table-
Our scale and extensive network of facilities provide a critical cost advantage compared to our competitors, due to our proximity to delivery locations, so we are able to ship products to customers and end users more effectively and facilitate faster product delivery. Our N-
The 12 tube is a double wall HDPE pipe with a strong corrugated appearance and a smooth inner wall of hydraulic and flow. Our N-
Pipelines compete in rainwater sewer and drainage markets, which are also served by concrete pipes.
Our HP storm tubes are made of polypropylene resin and are available (i)
Increased pipe stiffness relative to high density polyethylene; (ii)
High crack resistance of environmental stress (“ESCR”); and (iii)
The thermal performance is improved, thus improving the joint performance.
The physical properties of these improvements reduce the need for opt-in backfilling, save customers on installation costs, and expand the range of possible product applications.
Our single-wall Corrugated HDPE pipe is ideal for drainage projects with flexibility, light weight and low cost.
In agricultural drainage, roadside drains, septic tank systems and other building applications, single-wall high density polyethylene pipe products have been in use for decades.
In the agricultural market, technological improvements have highlighted the beneficial impact of drainage on crop yields.
This is an economical and convenient way for homeowners
Installation Solution for downspray operation
Basic drainage, Lane culvert and general lawn drainage.
Golf courses, parks and sports fields also use single-wall tubes to keep the surface dry by delivering excess groundwater fractions.
A table of contents sold in 20\' length.
Pipes can be perforated or non-perforated
Perforated according to specific drainage applications. Our ADS-
3000 triple wall tube, trail triple wall tube, consisting of corrugated polyethylene core molded between smooth white exterior wall and smooth black inner wall.
Compared to PVC 2729, this combination of three-wall designs increases strength and stiffness while reducing weight.
The triple wall has 3 \"and 4\" sizes and is sold through our distribution network.
We also produce smooth wall HDPE tubes of 3 \", 4\" and 6 \"diameter that are sold into residential drainage systems
Septic system market.
In fiscal 2017, we introduced a new product, a corrugated polypropylene pipe combined with a smooth exterior wall that uses directional fiberglass-reinforced material to create a stiffness and mounting performance
The diameter of the product is from 30 to 60 inch and the length is 13\' and 20 \'.
Our storm science and technology room is used for rainwater retention, detention and in Africa.
Residential site development and public projects.
These highly designed chambers are molded from high-density polyethylene and polypropylene resin and are designed in proprietary design to provide strength, durability and corrosion resistance.
These rooms allow for the efficient storage of the amount of rain, reducing the floor space and cost of underground buildings for contractors, developers and owners.
Our Storm technology room provides great flexibility in the design and layout of the underground water storage system.
They are an attractive alternative to open ponds, reducing ongoing maintenance and responsibility and providing more usable land for development.
Rainwater runoff is collected and stored in rows of Chambers and gradually re-enters the bottom of the water system to reduce erosion and protect the waterways.
The chamber is an open bottom that allows high-density stacking during storage and shipment. This freight-
Efficient features bring good cost
Competitive power of long-term service
Export Market distance.
These chamber systems typically include our other product lines such as bellows, prefabricated fittings, water quality units, and geotextile.
Content structure table-
Our Nyloplast PVC drainage structure is used for non-
Residential, residential and municipal site development, road and road construction, as well as landscaping, entertainment, industrial and mechanical applications.
The product range includes water control structures for online drains, drain pools, curb entrances and moving surfaces
Collect rainwater vertically down to the pipeline delivery system.
These custom structures are made by the use of hot-
Forming process for accurate field
Specific hydraulic design requirements.
Our Nyloplast products provide greater design flexibility and higher installation convenience, reduce the overall project cost and schedule, and are the preferred alternative to heavier and larger concrete structures.
These structures include rubber washers to ensure a waterproof connection to prevent soil penetration that plagues competing products.
We manufacture production accessories and joints using blow molding, injection molding and custom manufacturing on pipe products.
Our innovative coupling and accessory products are highly complementary to our broader product suite, including soil-Water tight-
The tight function of the diameter spectrum of the whole pipeline.
Our accessories are sold in all end markets where we sell the current pipe products.
Our BaySaver product line is designed to remove sediment, debris, oil and suspended solids throughout rainwater events by separating and/or filtering unwanted contaminants.
To meet the needs of a wide range of applications and customers, our BaySeparators can be made in a wide range of sizes.
These products help owners, developers and design engineers to maintain compliance with the emission requirements specified by the Environmental Protection Agency (“EPA”)
And state and local regulators.
Our BaySaver product line, combined with our plumbing, storm tech room, prefabricated accessories, Nyloplast construction, FleXstorm entry protection system and geotextile, constitutes a comprehensive rain management
We purchase and distribute for soil stabilization, reinforcement, filtration, separation, erosion control and sub-
Ground drainage.
Woven and non-woven
Woven polypropylene, geotextile products offer permanent, cost-efficient site-
Develop solutions.
Construction fabrics and geotextile are available in all of our end markets.
We use our raw material mixing and processing technology to produce a high density polyethylene pipeline containing recycled resin.
The product meets ASTM international standards and replaces most of the original resin used in the National Association of Road and transport officials products with optimized recycled materials.
To further develop our recycling material strategy, we have established the Green Line Polymer Company(“GLP”)As all of us
Recycling subsidiaries were owned in 2012.
GLP purchases and processes recycled raw materials that can be used for the products we produce and sell.
We set up our first production facility in Ohio and Georgia, focusing on post processing
High Density Polyethylene recycled materials for industrial use
Based on the success of this strategy, we acquired one that can provide cleaning, after
Consumers recycle high density polyethylene to our factory in the Midwest and set up a second
The consumer processing plant in Pennsylvania supports our factories in Ohio, Michigan and eastern and southern United States.
China Finance\'s advanced 88%
The original demand for high density polyethylene raw materials is handled internally (enhanced)
Operate through our GLP.
Contentsour sales staff table to get the maximum number of new opportunities and to cross more effectively
Sell products than any of our competitors.
We keep thousands of connections all the time.
Liaise with customers, civil engineers and municipalities to continuously educate them on new product innovations and their advantages over traditional products.
We believe that we are industry leaders in these efforts and we believe that this work is an important part of our marketing strategy, especially in promoting N-
12 and SaniTite HP for storm and sanitary sewer systems, as regulatory approvals are critical to the specification and acceptance of these product lines.
Our main competitors in the United States are concrete pipe producers, including Quikrete, Forterra and oldprecast Precast, as well as smaller regional competitors.
In the corrugated steel pipe industry, our main national competitors are Contech engineering solutions, and we compete with Lane Enterprises, Pacific Corrugated and southeast culverts and other smaller competitors at the regional level.
In the PVC pipe industry, we mainly compete with JM Eagle, Diamond plastic and North American pipes.
We believe that we are the only manufacturer of corrugated high density polyethylene tubing with footprint across the country, and our competitors operate primarily at the regional and local levels.
In the corrugated high density polyethylene pipeline industry in the United States, our main competitors on a regional basis are JM Eagle, Lane connises and Prinsco.
An important part of our growth strategy is that we focus on industry education to drive regulatory approvals at the National, state and local levels for our core high density polyethylene products.
We hired a team of about 55 people.
Working closely with government agencies to obtain regulatory approvals for our products as well as civil engineering companies in the non-
Residential construction and roads
Construction projects.
With the launch of our HP storm and health management, we once again call on the National Transportation Department to strengthen the approval of our pipeline products.
Additional state and local regulatory approvals will continue to provide us with new growth opportunities in new and existing geographic markets.
As more state and municipal authorities recognize the benefits of our high density polyethylene N-the trend towards alternative traditional materials is expected to continue
By approving its use in a wider range of applications, 12 tubes and our polypropylene HP tubes. www. ads-pipe. comwww. ads-pipe. comwww. ads-pipe.
ComTable for content website 1a.
Satisfiability risk factors that comply with the applicable covenants in our financing arrangements may require additional amendments or exemptions under these financing arrangements, which may adversely affect our liquidity and financial position
Further and continuous determination, there are significant weaknesses in the effectiveness of the company\'s internal controls on financial reporting, which may reduce our ability to obtain financing, or may increase any financing that we obtain and require in order to comply with the applicable requirements, the additional expenses and time of our management.
Contents of further proceedings and remand forms.
Our ongoing remediation of significant weaknesses in internal control of financial reporting will require us to continue to incur significant costs and may require additional management time and attention, this may adversely affect our financial position, operating results and cash flow.
In addition, according to the official investigation, the company received a document summons from the SEC law enforcement department.
Both the securities class action lawsuit and the SEC investigation are further described under Item 3.
Legal proceedings.
\"We may also be affected by additional litigation or government investigations and law enforcement actions for retelling the stock in advance.
Filing based on compensation restatements and default transaction law.
Because of the market competition we operate, we can do it in a timely manner, or we can do it at all.
In addition, due to market share, some of our largest customers have historically put tremendous pressure on their external suppliers to keep them low prices.
If the increase in the cost of raw materials cannot be passed on to our customers, or if the time associated with the delivery is extended, our business, financial position, operating results and cash flow will be adversely affected.
On the whole, the slowdown in the US economy has had a negative impact on our sales, depending on the non-
Residential construction market
The ongoing uncertainty of the current economic situation will continue to pose a risk to our business unit
Residential construction market, as participants in the sector may delay spending due to a credit crunch, negative financial news and/or a decline in income or asset value, this may have an ongoing significant adverse impact on the needs of our products and services.
The housing construction industry fell sharply from its peak in 2005.
The annual growth rate of new housing starts at 13.
6% from 2010 to 2015, the current level is still well below the long-term level
The average term is 1.
5 million since the United StatesS.
The Census Bureau began reporting data on 1959.
The mortgage market continues to be disturbed, and the supply of mortgage loans for potential buyers has decreased, as the criteria for obtaining mortgage qualifications are more stringent, including new home construction loans. The multi-
The downturn in the housing construction industry has led to a sharp decrease in our demand for products and services in this market, compared with peak levels, this, in turn, has had a significant adverse effect on our financial position and the results of operations for the period 2008 to 2014.
Our business depends to a large extent on the overall level of activity in the agricultural market.
Corn production, soybean production, changes in farm income the value of farmland in the geographical location of our operations and the level of farm output are all material factors that may adversely affect the agricultural market, this has led to a reduction in the number of products purchased by our customers.
The nature of the agricultural market is that the decline in demand may occur suddenly, resulting in excess inventory,
Take advantage of the production capacity of pipeline products and reduce prices.
Our income and profitability can be compromised.
The demand for our products and services depends largely on the expenditure on infrastructure, which is cyclical in itself.
Infrastructure spending is affected by various factors beyond our control, including interest rates, availability and commitment of public funds for municipal and highway spending, and general economic conditions.
Sales of our products may be adversely affected by government budget cuts, including lower taxes than expected.
The adverse effects of the content table on our business, financial position, operating results and cash flow.
We might have to shut down.
Financing is carried out from time to time, depending on general economic conditions and/or the weak market in which we operate.
In addition to the decrease in demand for our products, these factors may also reduce the price of our products and limit our ability to deliver the increased cost of raw materials to our customers.
This coupled with the increase in excess capacity will have a negative impact on our profitability, cash flow and overall financial position.
The operation result table may be adversely affected by the weather.
The ContentsOur international business table puts us at political, economic and regulatory risks, which are often not faced by businesses operating only in the United States.
The content table of the part of our business carried out through the joint venture exposes us to risks and uncertainties, many of which are beyond our control, these risks can generate significant financial conditions, operating results and cash flows for our business.
Content operation table.
In addition, we may not be able to obtain the financing required to complete the acquisition on attractive terms or at all.
As part of its assessment of liability, including a table of contents of its stated warranty policies and procedures.
Since warranty issues may occur later in the product life cycle, management continues to review these estimates on a regular basis and compare them with historical estimates based on actual experience, considering adjustments to these estimates.
Although management believes that our warranty reserve as of March 31, 2017 is sufficient, the actual results may be different from those estimates.
We deliver products to many customers through our own fleet. The U. S.
DOT manages our business in domestic interstate trade.
We comply with the security requirements for interstate operations stipulated by the United States. S. DOT.
Vehicle size and driver service hours are also still subject to federal and state regulations.
More stringent restrictions on the weight and size of the vehicle, the length and configuration of the trailer or the service time of the driver may increase our costs if we are unable to pass on these costs increases to the customer, will reduce our gross margin and net income (loss)
Increase our sales, general and administrative expenses.
Our information security measures and/or investigate and remedy any information security vulnerability.
Table of contents confidential and transfer agreements.
Due to differences in foreign trademarks, patents and other laws on ownership, our intellectual property rights may not be protected to the same extent in foreign countries as in the United States.
For any reason, our failure to obtain or maintain adequate protection of our intellectual property rights may have a significant adverse effect on our business, operational results and financial position.
We or our customers have a table of content rights to third parties and we usually compensate them for their use of the products we manufacture.
These claims may divert the attention and resources of management and may require us to bring or defend protracted costly litigation on behalf of ourselves or our clients, regardless of the merits of the claim.
If we are found liable for infringement, we may be required to enter into a license agreement (
If it is acceptable, or at all)
Or pay damages to stop the production or sale of certain products.
In addition, in order to avoid liability for future infringement, we may need to redesign or sell different products.
Any of the above can cause us to incur significant costs, prevent us from selling products, or have a negative impact on our competitive ability.
Content list-
Other disruptions to terrorist measures and raw material supply networks may affect our operations.
The content table constitutes liabilities, including obligations under the lease arrangement currently recorded as operating leases.
In addition, our revolving credit mechanism provides a total commitment of up to $325. 0million.
We still have $120 as of March 31, 2017.
Availability of 1 million under the revolving credit mechanism.
Our subsidiary, ADS ana, has $10.
There is a 5 million outstanding amount under a separate revolving credit mechanism.
If new debt is added to our current debt level, the associated risks we are facing now may increase. See “Note 12.
Debt for consolidated financial statements included in Item 8.
Financial statements and supplementary information.
\"The content risk table related to the common stock of our important shareholders may assign the shares they hold to their investors, and then they may sell them to the public market themselves.
Such sales shall not be subject to the quantity, sales method, holding period and other restrictions of rule 144th of the Securities Law (“Rule 144”).
With the end of the resale restriction, the market price of our common stock may decline if the holders of these shares sell these shares or are deemed by the market to intend to sell them.
Remove the director\'s content table;
Provide vacancies on our board, including new-
The position of director created can only be filled out by a majority vote of the directors in office at that time;
Shareholders are prohibited from holding special meetings of shareholders;
By agreeing in writing to prohibit the shareholder from taking action, thereby requiring all action to be taken at the general meeting of shareholders;
Do not give holders of accumulated voting rights to our common shares in respect of the election of directors, which means that the holders of most of our outstanding shares may elect all directors elected on behalf of them;
Make advance notice requirements for the nomination of our board of directors or for the proposed matters that shareholders can take action at the shareholders\' meeting;
Need a super
Majority shareholders vote 75% to approve any restructuring, capital restructuring, stock exchange, stock re-classification, merger, conversion or sale of all or essentially all assets of which we are a party, these assets are not approved by a vote of at least 75% members of the board;
And requires at least 75% of the holders of tradable shares of our voting common stock to approve the amendment of the articles of association and certain terms of the company\'s registration certificate. Item1B.
Table 2 of content websites. Properties6034(1)(2)
6034 table of ContentsOur manufacturing plants and distribution centers, including factories and distribution centers operated through our joint ventures, as shown in the following figure. (1)(1)Item3.
Implement the content table of the division\'s survey and intend to continue to do so.
While the investigation may ultimately be detrimental to the company, the company is currently unable to estimate the scope of possible losses, which may be substantial. Item4.
Table 5.
The flow of 20172016 ContentsStock performance GraphTable ContentsItem.
Selected Financial and operational data sheets for content (1)(2)
Adjusted earnings after full conversion per share, adjusted net income and unissued Weighted average fully converted common stock
GAAP measures are complementary measures based on the financial performance that GAAP does not need or does not meet GAAP.
We calculate the adjusted earnings per share after full conversion (Non-GAAP)
Adjusted net income (Non-GAAP)
, And the weighted average of the issued fully converted common stock (Non-GAAP)
By adjusting our net earnings per share
Basic net income available to ordinary shareholders
Basic and weighted average of issued common stock
The basic, most comparable, generally accepted accounting principles.
In order to adjust the net income of ordinary shareholders, we have (1)
The adjustment to the change in the fair value of redeemable convertible preferred shares classified as mezzanine equity was canceled ,(2)
Add the dividend back to the redeemable convertible preferred stock shareholder and the dividend paid to the unvested restricted shareholder ,(3)
The amount allocated to participating securities under the two items was adjusted accordingly
Calculation method of earnings per share ,(4)
During the applicable period, the employee shareholding deferred compensation for redeemable convertible preferred shares assigned to employee shareholding accounts was added, which is a non-
Cash charge for our income but no income tax deduction5)
The cost of compensation was increased due to the special dividend in January 2014.
We have also adjusted the issued Weighted average common stock
Basic assumptions ,(1)
Convertible preferred shares converted into shares of outstanding shares of common stock, and (2)
Increase shares in unissued restricted shares.
The following table lists the reconciliation of adjusted earnings per share after full conversion (Non-GAAP)
Adjusted net income (Non-GAAP)
And the weighted average of all converted ordinary shares issued (Non-GAAP)to Net income (loss)per share —
Basic net income (loss)
Available for general shareholders
Basic and weighted average of issued common stock
The basic, most comparable measures of recognized accounting principles are expressed for each period, respectively.
Adjusted EBITDA, non
GAAP financial measures have been reported in Form 10-
K as a supplementary measure of financial performance, the standard is not required by recognized accounting principles, nor is it proposed in accordance with recognized accounting principles.
We will calculate the adjusted EBITDA as net income before interest, income tax, depreciation and amortization, stock
Based on the cost of compensation
Cash and other expenses.
Evaluate the effectiveness of our business strategy, make budget decisions, and compare our performance with the performance of other peer companies using similar measures. (a)
Directory (b)
On behalf of the purchase, sales and inter-company loans and
Functional currency.
Fiscal 2015 includes $5.
The Canadian currency derivatives contract related to the acquisition of the ideal pipeline lost 6 million. (c)(d)(e)(f)(g)(h)(i)(j)(k)
Free cash flow is a non-
Includes GAAP financial indicators for operating cash flow minus capital expenditure.
Free cash flow is a measure used by management and the company\'s board of directors to assess the Company\'s ability to generate cash.
As a result, free cash flow is presented in Table 10 in this annual report
K as a liquidity supplement to GAAP that does not require or do not comply with GAAP, because management believes that, free cash flow provides useful information for investors and others in understanding and evaluating our ability to generate cash flow from operations after capital expenditure.
Table 7 content website
Management\'s Discussion and Analysis of operating conditions and results has many factors that affect the demand for our products.
Our business is cyclical and sensitive to the general economic situation, mainly in the United States, Canada, Mexico and South America. The non-
The residential, agricultural and infrastructure markets we serve are affected by credit supply, loan practices, interest rates and unemployment rates.
Demand for new homes, agricultural income, business development and road infrastructure spending have a direct impact on our financial position and operating results.
Therefore, the following factors may have a direct impact on the business of our product sales market: economic strength;
Non-quantity and type
Residential and residential construction;
Expenditure funds for infrastructure;
Agricultural income and value of agricultural land
Improve the inventory of housing lots;
Changes in raw material prices;
Availability and cost of credit; non-
Residential Occupancy rate;
Commodity price;
Population factors such as population growth and family structure.
The price of our products is affected by the competitive pricing dynamics of our industry and the cost of raw material input.
Our industry is highly competitive and the selling price of our products may vary according to the competitor\'s sales policy.
The cost of raw materials accounts for a large part of the cost of our pipeline products or pipeline sales.
In order to make up for the rising price of raw materials, our goal is to increase the selling price of our products, but if we can\'t do so, it may affect our profitability.
Changes in raw material costs and changes in sales prices may also affect changes in the periodto-
Period comparison of net sales.
Our high density polyethylene and PP pipes and related water management product lines compete with other manufacturers of polyethylene bellows and manufacturers of alternative products made from traditional materials such as concrete, steel and PVC.
Our net sales are driven by market trends, including an ongoing increase in the use of thermoplastic bellows products as a replacement for traditional materials.
Compared with similar products made of traditional materials, the thermoplastic bellows is usually lighter, more durable, more economical and easier to install.
We believe that customers will continue to recognize the superior features and compelling value proposition of our thermoplastic products and expand regulatory approvals to enable them to be used in new markets and regions.
In addition, we believe that, given that our pp tube products can be used for other applications, the PP tube products will also help to speed up the conversion.
Our related products include rainwater and septic tanks, PVC drainage structures, accessories, rainwater filters and water separators.
These products complement our pipeline product line, enabling us to provide our customers with comprehensive water management solutions and drive organic growth.
Our leading market position in pipeline products enables us to cross
Effective Sales of Alliance products.
The integrated products we offer also help us increase our pipeline sales in certain markets.
Our combined products are less sensitive to the rise in resin prices as resin prices account for a smaller proportion of the cost of the combined products.
Our raw material costs and product sales prices fluctuate as the price of the resin used in production changes.
We actively manage the purchase of resin and pass on the fluctuation of resin cost to customers as much as possible to maintain our profitability.
Fluctuations in crude oil prices and natural gas prices may affect the cost of the resin.
In addition, changes and interruptions in existing ethylene or polyethylene capacity may also significantly increase the price of the resin (
Like the aftermath of Hurricane Katrina and Rita in 2015)
Even if the price of crude oil and natural gas remains low, it is usually in a short period of time.
In some cases, our ability to pass on raw material price increases to our customers may lag behind the growth of our cost of selling goods.
In history, the price of raw materials has risen sharply in a short period of time, and the supply has been seriously interrupted (
Hurricane or fire in petrochemical facilities)
, This may raise the price to a level that cannot be fully passed on to the customer, as the pricing of competitive products made from different raw materials or the expected duration of raw material pricing will increase.
For more information about the risks associated with our raw material costs, see Item 1A \". Risk Factors —
Risks related to our business.
\"Increase the price of using less --
Volatile recovery high density polyethylene resin in our pipeline products instead of the original resin, while meeting or exceeding industry standards;
In order to closely monitor the quality and minimize the cost, more and more recycled high density polyethylene resin (
In the fiscal year 2017, about 88% of the high density polyethylene resin we recycle is processed internally);
Manage a resin price risk program that includes fixed price and quantity contracts in kind as well as financial hedging.
For our raw polypropylene resin price exposure, we use the financial hedging of propylene as an agent for polypropylene.
Maintain supply agreement with our major resin suppliers offering a wide range of products
More than the annual terms and quantities we expect to consume.
The results of our operations are affected seasonally.
Historically, due to favorable weather and longer daylight conditions, sales of our products have increased in the first and second quarters of each fiscal year, accelerated the time of these period of construction project activities in the northern United States and in the spring of Canada.
Seasonal changes in operating results may also be significantly affected by bad weather conditions, such as cold or wet weather, which may delay the project, resulting in a decline in net sales for one or more quarters, however, we believe that these deferred projects often result in an increase in net sales in the subsequent quarters.
Although we sell and manufacture our products in many countries, our sales and production costs are mainly in the United States. S. dollars. We have wholly-
It has factories in Canada, the Netherlands and Puerto Rico and joint ventures in Mexico, Chile, Brazil, Argentina, Colombia and Peru.
Table of Contents the functional currency of all regions we have
Own facilities and joint venture facilities other than the United StatesS.
The dollar is Canadian dollar, euro, Mexican peso, Chilean peso, Brazilian real, Argentine peso and Colombian peso.
From time to time, we use derivatives to reduce the risk exposure of currency fluctuations.
In fiscal 2015, we started to implement hedging strategies to manage our exposure to the Canadian dollar and to a lesser extent manage our exposure to the Mexican peso, which we continued to do in fiscal 2016 and fiscal 2017.
Our results have been and will continue to be influenced by macroeconomic trends in the United States.
For fiscal 2017, 2016 and 2015, our domestic sales were $1,102.
2 million, $1,113.
$8 million and $1,027.
9 million respectively.
Unincorporated sales of non-consolidated joint ventures in our country (our Tigre-
Before July 17, 2015, the ads us joint venture and our BaySaver joint venture), were $18. 7million, $20.
$9 million and $24.
The fiscal year 2017 was 9 million, 2016 and 2015 respectively.
Our international division produces and sells products outside the United States, and the growth strategy focuses on the facilities we have in Canada and the markets that provide services through our joint ventures in Mexico and South America.
The pipelines produced in these countries are mainly sold to the same area.
Our joint venture strategy provides us with local and regional access to new markets.
In fiscal 2017, 2016 and 2015, our international sales were $155. 1million, $176.
$9 million and $152.
1 million respectively.
Our investment in the South American joint venture is accounted for by equity law, not for the purpose of financial reporting.
Unincorporated sales of the South American joint venture were $42. 2million, $50.
$3 million and $58.
5 million fiscal year, 2017 fiscal year and 2016 fiscal year respectively for 2015 and.
In February 2017, we acquired the assets of the plastic pipe industry (“PTI”)
A manufacturer that produces high-density polyethylene pipes and related accessories to trade in full cash for $9. 5 million.
At the time of the acquisition, $8.
5 million in cash;
$1 left
£ 0 will be paid on August 6, 2018.
After the acquisition, we will increase the manufacturing footprint in Georgia and Texas, while increasing the production capacity of existing manufacturing facilities in Florida to better meet the growing needs of the region.
Adjusted EBITDA, this is a non-
GAAP financial measures have been reported in Form 10-
K as a supplementary measure of financial performance, the standard is not required by recognized accounting principles, nor is it proposed in accordance with recognized accounting principles.
We will calculate the adjusted EBITDA as net income before interest, income tax, depreciation and amortization, stock
Based on the cost of compensation
Cash and other expenses.
The content-Adjusted EBITDA table is not a GAAP measure of our financial performance and should not be considered as an alternative indicator of net income or any other performance measure based on GAAP, it should not be interpreted to infer that our future results will not be affected by unusual or unusualRepeat the project.
In evaluating the adjusted EBITDA, please note that in the future we will incur the same or similar fees as some of the adjustments in this presentation, such as stocks
Based on compensation fees, fair value adjustment of derivative products and loss of foreign currency transactions.
Our introduction to the Adjusted EBITDA should not be interpreted as implying that our future results will not be affected by any such adjustments.
In addition to using the adjusted EBITDA, management relies on our GAAP results to make up for these limitations.
Due to different calculation methods, our measurements of the adjusted EBITDA are not necessarily comparable to other similar title titles from other companies. System-
Sales of the whole network
GAAP measures equal to the net sales of our domestic and international sectors plus all net sales of our unincorporated joint ventures (
Our South American joint venture, our Tigre-
Before July 17, 2015, the ads us joint venture and our BaySaver joint venture).
We use this indicator to measure the overall business performance of all regions and markets we serve. (a)(b)(c)
Content adjusted earnings of fully converted shares per share, adjusted net income and weighted average fully converted common stock
Adjusted earnings after full conversion per share (Non-GAAP)
Is a key indicator used by management and the board to assess our financial performance, as if all shares held by the employee stock ownership plan and all redeemable common shares will be converted to common shares.
This information is useful for investors as over time preferred shares held by ESOP need to be distributed to our employees, which is done in the form of common stock after the conversion of preferred shares.
Therefore, this measure is included in this report, as it provides information for investors to understand the impact on the financial statements once all preferred shares are converted and distributed.
Adjusted earnings after full conversion per share (Non-GAAP)
Due to different calculation methods, it is not necessarily comparable to other similar title titles of other companies.
Free cash flow is a non-
GAAP Financial indicators used by management and company boards to assess the Company\'s ability to generate cash.
Management believes that free cash flow provides useful information for investors and others to help them understand and evaluate our ability to generate cash flow from operations after capital expenditures.
Free cash flow does not include property, plant and equipment purchases completed through financing arrangements.
Free cash flow should not be considered as an alternative to operating activity cash flow as a measure of liquidity or any other measure of liquidity derived from GAAP.
Due to the different calculation methods, our measurement of free cash flow is not necessarily the same as other similar title headings of other companies.
For reconciliation of free cash flow and cash flow from operating activities, the most comparable measure of GAAP, see Item 6 \".
Selected Financial and Operational Data \".
Compared with the fiscal year ended March 31, 2017, the operating results table for the fiscal year ended March 31, 2016-
Net sales totaled $1,257.
A decrease of $33 in the fiscal year of 3 million was 2017. 4million or 2.
6%, $1,290.
7 million fiscal year 2016.
The price of goods sold fell by $43. 9million, or 4. 4%, to $961.
In 2017, it was $5 million, compared to $1,005.
The 3 million financial year period was 2016 per cent.
Sales expenses for fiscal 2017 increased by $3. 0million, or 3.
4%, more than fiscal 2016.
The main reason for the increase is that the cost of bad debts has increased by $2.
9 million is mainly due to the deterioration of the five customer accounts, including $0.
6 million cancellation of accounts receivable from unincorporated affiliates.
Sales expenses increased to 7 as a percentage of net sales.
The fiscal year 2017 was 3% per cent, compared to 6 per cent.
9% per cent growth over the fiscal year 2016.
General and administrative expenses for fiscal 2017 increased by $18. 4 million, or 19.
9%, more than fiscal 2016.
The main reason for the increase is Inventory
Compensation fee based on $8.
Compared with the $5 earnings, the financial year of 0 million is 2017.
The fiscal year 1 million was 2016.
In addition, legal and professional costs increased by $6.
5 million due to the third-
The costs of the client\'s consultation and ongoing litigation.
Losses to dispose of assets or operations totaled $8.
The fiscal year 5 million was $2017, compared to $0.
Net annual growth of 8 million was $7, or 2016.
Compared with fiscal 7 million, fiscal 2017 was 2016.
In fiscal 2017, we recorded the costs associated with three manufacturing facilities that were closed for approximately $3 in fiscal 2017.
The accelerated depreciation of 5 million and specifically identified obsolete assets is approximately $3. 0 million.
In addition, we recorded $2.
Compared with $0, 0 million fixed asset disposal and partial disposal.
8 million fiscal year 2016.
Compared with fiscal 2017, intangible amortization remained relatively stable in fiscal 2016.
Interest expenditure on our debt and capital lease debt was reduced by $1. 0million or 5.
Compared with fiscal 4%, fiscal 2017 was 2016.
Our total outstanding debt fell by an average of $46. 0 million or 11
The balance for fiscal 8% was 2017, compared to the average balance for fiscal 2016.
The impact of the reduction in outstanding debt on interest expenditure was partially offset by an increase in the average capital lease debt of $6. 6 million or 9.
Compared with fiscal 1%, interest spending in fiscal 2017 decreased by 2016.
Table ContentsDerivative (gains)
Loss and others (income)
Net derivative fees (gains)
Loss and others (income)
Net expenditure increased to $6.
The financial year was $2017 and lost $16.
6 million fiscal year 2016.
The following table details the unimplemented and implemented networks (gain)
Loss of derivatives
The total income tax is $24.
The fiscal year 6 million was 2017, compared with the $23 fiscal year.
An increase of $5 million in the 2016 fiscal year. 1million.
The actual tax rate for these provisions is 38.
Fiscal 0% was 2017, compared to 39.
Fiscal 6% 2016.
The tax rate this year is higher than the federal statutory rate of 35%, mainly due to state and local income taxes and non-
The deductible expenses are partially offset by foreign income taxed at a lower tax rate.
The tax rate for the current year decreased from the previous year, mainly due to the income tax impact of the closure of Puerto Rico\'s manufacturing facilities being partially offset by the income tax impact of inventory
Based on compensation.
For fiscal 2017, uncertain tax positions related to foreign jurisdictions were released due to the lapse of the statute of limitations.
Net loss equity of unincorporated affiliates decreased by $0.
Net loss of $4 for 9 million fiscal year, more than fiscal 2017.
3 million fiscal year net loss 5 dollar for 2017 fiscal year.
The 2 million financial year period was 2016 per cent.
Net losses decreased due to $4.
The impairment costs associated with our investment in the South American joint venture in fiscal 2016 were partially offset by $1.
3 million impairment costs associated with our investment in a South American joint venture in fiscal 2017 and our higher share of net losses in fiscal 2017.
Compared to $1, 5 million.
The 4 million financial year period was 2016 per cent.
Non-controlling earnings fell by $2. 5 million or 46. 4%, to $3.
Fiscal year 0 million is $2017, compared to $5.
The fiscal year 2016 was 5 million per cent.
The main reason for the decrease is the decrease in net advertising income-Mexicana.
Compared with the fiscal year ended March 31, 2016, the content table for the fiscal year ended March 31, 2015-
Net sales totaled $1,290.
The fiscal year of 7 million increased by $2016, an increase of 110. 6million or 9.
4%, $1,180.
1 million fiscal year 2015.
The content table of the ideal pipeline, sales increased by about $39.
$7 million offset the $9 decline in Mexican sales. 4million.
In addition, the Canadian dollar fell about 13% against the dollar. S.
Compared to fiscal 2016, the US dollar for fiscal 2015 had a negative impact on Canada\'s $15 net sales.
The year ended March 31, 2016 was 2 million per cent.
The cost of goods sold increased by $30. 3million, or 3. 1%, to $1,005.
During the fiscal year 3 million, it was 2016 euros, compared with $975.
During the fiscal year of 2015.
Sales expenses for fiscal 2016 increased by $8. 0 million, or 9.
Up 9% from fiscal 2015.
The percentage increase in net sales for fiscal 2016 was mainly driven by bad debt costs and stocks
Based on compensation.
Revenue for fiscal 2016 was $0.
5 million from inventory
Compared to the cost of $1, based on compensation.
5 million during the comparable period, this is mainly due to the impact of the company\'s share price decline on liability accounting --
Classified stock rewards
The cost of bad debts increased by $1.
6 million is mainly the result of the cancellation of accounts receivable from unincorporated affiliates.
General and administrative expenses for fiscal 2016 increased by $16.
6 million, or 21.
9%, more than fiscal 2015.
The main reason for the increase is the substantial increase in accounting, auditing, tax Professional fees as part of our preparation of Form 10 for fiscal 2015, legal and other professional fees related to retelling previously submitted quarterly and annual financial statementsK.
There is no such amount for the 2015 financial year.
These costs are about $28.
The fiscal year 2016 was 0 million.
Wages and compensation costs have also increased by 12%, or $3.
4 million, and incremental General and administrative costs associated with the acquisition of $1 for the ideal pipeline and BaySaver. 9million.
Additional increases related to the increase in indirect expenses of the company, including an increase in depreciation expenses, and an increase in legal and administrative expenses related to listed companies.
These increases were partially offset by reduced inventory
Basic compensation of $26.
7 million, this is mainly due to the impact of the company\'s share price decline on its liability accounting --
Classified stock rewards
Overall, the general and administrative costs are 7.
2% of net sales compared to 6.
The previous year was 4%.
The total loss of disposed assets or business is $0.
The fiscal year 8 million was $2016, compared to $0.
Net annual growth of 4 million was $2015.
Compared with 4 million fiscal years, Contents2016\'s fiscal deficit was 2015.
Business related to our geography sold in fiscal year 2015
Traffic product line, and no sales business in fiscal 2016.
The disposal of machines and equipment caused a loss of $0. $8 million and $1.
Fiscal 1 million and fiscal 2016 were respectively 2015 and related to the replacement of assets in the normal business process.
Invisible Amortization is reduced by $0. 6million or 5.
Compared with fiscal 4%, fiscal 2016 was 2015.
The main reason for the reduction is $7 in intangible assets.
8 million was amortized in fiscal 2015, offsetting the additional amortization of the ideal pipeline intangible assets acquired in the fourth quarter of fiscal 2015 and the BaySaver intangible assets acquired in the second quarter of fiscal 2016.
Interest expenditure on our debt and capital lease debt was reduced by $0. 9million or 4.
Compared with fiscal 7%, fiscal 2016 was 2015.
In fiscal 2015, the company had a higher balance of revolving credit financing before July 2014, until the IPO proceeds were used to reduce the balance of revolving credit financing.
The net loss of derivative products and other expenses increased by $2.
Between $2 million and $2016.
6 million compared to $14.
4 million fiscal year 2015.
The increase in fees is mainly due to realized and unrealized losses of hedging activities.
Hedge losses in fiscal 2016 were $16.
9 million includes realized losses settled in cash of $14.
7 million and unrealized losses-to-
Market adjustment for $2. 2million.
In contrast, net hedging losses are $15.
€ 4 million incurred in the 2015 financial year, including the actual loss of $7 for cash settlement.
Unrealized losses of $7 million.
7 million on the unfavorable mark-to-
Market adjustment.
In addition to hedging losses, the company achieved a loss of $0.
5 million after completing the acquisition of BaySaver, due to the re-measurement of our investment since the acquisition of step in July 17, 2015. See “Note 3. Acquisitions.
\"The balance of the change is mainly related to foreign currency trading activities and other insignificant gains and losses.
The total income tax is $23.
The fiscal year 5 million was $2016, compared to $6.
An increase of $3 million in the 2015 fiscal year. 2million.
The actual tax rate for these provisions is 39.
Fiscal 6% was 2016 compared to fiscal 127.
Fiscal 6% 2015.
The effective tax rate for fiscal 2015 substantially exceeds the federal statutory tax rate, in part due to significant permanent differences related to non-fiscal policy
Stock appreciation and stock-
Compensation fee based on compensation fee, its effect increases due to close interruption
Even the number of pre-
Tax revenue, while the effective tax rate for fiscal 2016 is closer to the normal effective tax rate for the company.
Net loss equity of unincorporated affiliates increased by $2.
9 million fiscal year net loss 2015 dollar.
2 million fiscal year net loss 2 dollar for 2016 fiscal year.
The 3 million financial year period was 2015 per cent.
The main reason for the increase is $4.
0 million impairment expenses related to our investment in the South American joint venture, which is partially offset by the lower net loss generated by the South American joint venture, the joint venture reduced our share of losses in fiscal 2016 to $1.
4 million, $2.
The comparable period of the previous year was 6 million.
Non-controlling income increased by $1. 4 million or 33. 5%, to $5.
The fiscal year 5 million was $2016, compared to $4.
1 million fiscal year 2015.
35, as mentioned above.
BaySaver\'s 0% Non-controlling stake is now included in the fiscal 2016 results that began after July 17, 2015.
In addition to the cash dividends paid by our ADS Mexicana joint venture, our content sheet.
If foreign income is repatriated, these amounts will be liable for income tax liabilities in the appropriate tax jurisdiction. -
Liquidity is a sign of liquidity and potential demandterm funding.
We define liquidity as current assets minus current liabilities.
As disclosed in note 1, the reduction in net current deferred tax assets is due to the adoption of an accounting standard update requiring all Deferred tax assets and liabilities to be classified as non-current.
These increases have reduced liquidity to $187.
As at March 31, 2016, it had increased from $4 million to $228.
9 million as at March 31, 2015, the main reason was the decrease in inventory by $30.
1 million and $7 Increase in accounts payable.
Long-7 million and current due date
Regular debt and capital lease obligations of $29.
8 million, an increase of $32 in accounts receivable essentially offset this amount. 6million.
In fiscal 2017, cash from business activities was $104.
2 million compared to $135 in cash provided by business activities.
The fiscal year 3 million was 2016.
Cash flows from operating activities in fiscal 2017 were primarily affected by $27.
Inventory increases by 9 million and other changes in working capital.
In fiscal 2017, cash for investment activities was $61.
3 million, mainly $46.
Capital expenditure and Capital software increased by $7 million and $8.
6 million acquisition of plastic pipe industry (“PTI”)and $4.
6 million purchase of equipment through financing.
In fiscal 2015, cash for investment activities was $76.
1 million, mainly $32.
Capital expenditure and Capital software increased by $1 million and $36.
Investment in the ideal pipeline is $4 million.
In the first quarter of 6 million fiscal year, $2015 was invested in a domestic joint venture and $4.
Invest in our international joint venture to support the growth plan.
In fiscal 2017, cash for financing activities was $42.
8 million, primarily for the payment of a net debt of $5.
1 million, pay US $21 for our capital lease debt.
Dividends paid at $8 million and $16. 8million.
In fiscal 2015, cash from financing activities was $1.
8 million, net income was $72.
After deducting the deferred issuance cost, 2 million is deducted from the IPO of our common stock, mainly offset by net debt payment, capital lease obligation payment, IPO issuance cost and dividend payment.
Debt and capitalization lease debt form (2)(1)(2)(3)
Table ContentsOff-
Balance sheet arrangement
Our consolidated financial statements include
Subsidiaries owned, subsidiaries owned by most of us and variable interest entities (“VIEs”)
We are the main beneficiaries.
We use the equity method to account for equity investments, in which case we have had a significant impact but have not held a holding financial interest including our South American joint venture and Tigre-
American ADS joint venture-
We hold Accounts receivable from customers from different countries.
Provide credit to the customer based on an assessment of the customer\'s financial position, and generally do not require collateral.
Table of Contents-
Inventory is indicated at a cost or at a lower market value.
The cost is determined using the advanced first-out method, which is based on a very complex analysis due to the company\'s purchase of a large amount of materials.
During the fluctuation of raw material prices, the complexity of the first-out analysis is further increased. -
We sign lease contracts for buildings, transportation and other equipment as well as aircraft.
In applying the criteria required to determine whether a lease should be classified as a capital lease, judgement needs to be made.
Goodwill reviews impairment annually from March31, or whenever an event or situation change indicates that the book value may not be recoverable.
The implied fair value of goodwill is determined by considering the benefits and market methods.
Specific content table-
Living Intangible assetsDefinite-
Whenever an event or situation change indicates that the book amount of the asset group may not be recovered, a recoverable test is conducted on the living intangible assets.
The asset group is primarily established by determining the minimum level of available cash flow.
If the estimate of futur
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