advanced drainage systems, inc. (wms)

by:Nanqixing     2020-03-20
☒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
The effect of any claim, action, investigation or action arising from retelling of our previously issued financial statements or matters related to such restatements, including as described under Item 3 below
\"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;
Our ability to achieve the acquisition part of our growth strategy;
Risks associated with the manufacturing process;
Capacity sheet for managing our 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;
Including the tax reduction and employment bill recently enacted, the fluctuation of our effective tax rate;
Due to the tax cuts and employment bills recently enacted, changes have taken place in our operating results, cash flow and financial position;
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 December 25, 2017 pipe, profile and pipe extruder plastic news, with recently estimated sales of $0. 135 billion, about ten times our net sales in fiscal 2018.
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.
32 Table ContentsOur factory no process-related by-
Products released into the discharge of atmospheric, waterway or solid waste.
At the beginning of pipeline production-
Ups and size changes-overs, non-
Recover the required scrap and any damaged finished pipe through the grinder for internal re-entryuse.
We mainly serve the international markets in Mexico and South America through joint ventures with local partners.
Our joint venture strategy provides us with local and regional access to major markets such as Mexico, Brazil, Chile, Argentina and Peru.
Our international joint venture produces pipelines and related products and sells them in their respective regional markets.
We also have
Subsidiaries selling our pipeline and related products in Europe and the Middle East.
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 profitable 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 11% 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.
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.
Three-wall corrugated polypropylene and polyethylene pipe content table (or “Pipe”)
As well as a variety of related products, including: Storm detention/detention and septic tanks (or “Chambers”);
PVC drainage structure (Or \"structure \"); fittings (or “Fittings”);
Water filter and separator (
Or \"water quality \").
We also sell a variety of complementary products distributed through the resale agreement, including geotextile products and drainage grilles, etc (
Or \"other resale \").
The following table summarizes the percentage of net sales of pipelines and related products. 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. 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.
Triple walls are available in 3 \"and 4\" sizes and are sold through our content network.
We also produce smooth wall HDPE tubes of 3 \", 4\" and 6 \"diameter that are sold into residential drainage systems
Septic system market.
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.
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.
ContentsOur ta Tee product line table consists of PVC hub, rubber sleeve and stainless steel belt.
The Inserta Tee compression is installed in the core wall of the main line pipe and can be used with all pipe material types and profiles.
This product offers a simple faucet
Compared to competing products, access to existing sanitary and rain drains by limiting the excavation required for installation.
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 maintain relationships with several of the largest environmental companies, such as waste management companies.
Republic Services
And Rumpke, Inc.
After providing us
High Density Polyethylene recycled materials for consumption.
We also have relationships with several key positions.
Industrial High Density Polyethylene suppliers including E. I.
Dubond neymor, Silgan plastics, integrated container and Alpla
, It provides us with materials that cannot be used in our respective production processes.
The ContentsOur sales and engineering target table is all sales opportunities that impact, track and quote early in the project lifecycle.
Concept Project visibility enables sales and engineering professionals to influence design specifications and increase the likelihood of incorporating our products into the bidding documents.
We strive to participate meaningfully in all stages of the project cycle, including design, bidding, award and installation.
In addition to direct channel clients, we maintain and develop relationships with federal agencies, municipalities, national standards regulators, private consulting engineers and architects.
Our continued interaction with these market participants allowed us to continue market penetration.
This ongoing conversation has positioned us as an industry resource for design guidance and product development, as well as a respected expert in water management solutions.
Intellectual property sheet for content, mental, health and safety status. ads-pipe. comwww. ads-pipe. comwww. ads-pipe. comItem1A.
Table for each quarter of ContentsMarch 31, 2016, 2015 and 2014 and fiscal 2016 and fiscal 2015 (the “Stock-
Based on salary restatements \").
Whether it\'s a previous recap or a stock
Time-based restatement of compensation
Spending and being expensive can put us at some additional risk that can adversely affect our financial position, operating results, and cash flow.
Additional litigation or government investigation and enforcement actions arising from prior restatements
Based on the restatement of compensation, and any transaction law documents in arrears.
Content table any interruption or fluctuation of the general business and economic conditions of the market in which we operate may have a significant adverse impact on the demand for our products and services.
Overall, fluctuations in the US economy may adversely affect our sales, depending on
Residential construction market
The continued uncertainty about the current economic situation poses 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 and construction industry experienced a significant decline after reaching its peak in 2005.
The annual compound growth rate of new housing starts at 9.
0% from 2012 to 2017, the current level is still below the long-term level
The average term is 1.
4 million since the United StatesS.
The Census Bureau began to report the data needs of this market for our products and services, which in turn had a significant adverse impact on our financial position and operational results.
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.
Content table including durability, design, ease of installation, price and other product features-to-
Value base and service.
In particular, we compete with pipe products made of traditional materials on a global, national and local basis, and our high-performance thermoplastic bellows products are designed to replace these products.
For example, our N-
12 and SaniTite HP products face competition from concrete, steel and PVC pipe productsand large-
Diameter size of market segments.
The loss of any important customer can adversely affect our business, financial position, operating results and cash flow.
In order to obtain or retain the business or gain an unfair advantage, the content table affects foreign government officials, often requiring companies to maintain accurate books and records, as well as internal controls, including subsidiaries controlled in foreign countries.
Global anti-corruption enforcement has increased dramatically in recent years
The law of corruption is more voluntary.
Disclosure of the company, active investigation and enforcement procedures in the United StatesS.
The Justice Department and the SEC resulted in record fines and penaltiesU. S.
Regulators, increased criminal and civil litigation against companies and individuals.
Content tables can compete effectively unless our product selection keeps up with our competitive market trends or new product trends.
In addition, our ability to integrate new products and product lines into our distribution network may affect our competitive capabilities.
In addition, the success of new products and new product lines will depend on market demand, new products and new product lines may not be able to provide the expected results, which may have a negative impact on our future sales and operational results.
We have a lot of fixed costs, so our operating income is sensitive to changes in net sales.
Decline in revenue and profitability.
In addition, even if we successfully defend any claims relating to the products we distribute, claims of this nature may have a negative impact on our customers and our products.
Content sheet whether our business unit will successfully meet the future needs of regulators will not have a significant adverse impact on our business, financial position, operational results and cash flow.
Table Contentsinsured preferred provider organization.
In the event of an increase in the number and severity of insurance claims, our business, financial position, operating results and cash flow may be adversely affected.
Ideal table of contents.
If we fail to file a patent application in any such country in a timely manner, we may be excluded from filing a patent application at a later date.
In addition, we cannot guarantee that any of our patent applications will be approved.
Nor can we guarantee that patents issued due to our foreign patent application will have the same coverage as our US patents.
The patents we have may be challenged, invalidated or circumvented by others and may not have sufficient scope or strength to provide us with any meaningful protection or business advantage.
In addition, we cannot guarantee that our competitors will not infringe on our patents or that we have sufficient resources to enforce our patents.
Catalogue we may incur significant costs in compliance with environmental, health and safety laws or permits, or due to the satisfaction of any liability or obligation under these laws or permits.
Content risk table content related to our business agreements and tools for managing our debt contain restrictions and restrictions that may seriously affect our ability to operate our business and to our common stock
In addition, the terms of our credit services contain restrictions on our ability to pay dividends.
In addition, Delaware law may make some requirements to limit our ability to pay dividends to holders of common stock.
The content table of all shares of convertible preferred shares held by our employee stock ownership plan (“ESOP”)
Can be converted into our common stock at any time through the actions of the trustee of the employee stock ownership plan and will be allocated activities (such as retirement or other termination of employment) the employee shareholding account assigned to the employee shareholding program participants is automatically converted to our common stock.
This distributed common stock will not be locked in any way.
Up agreement and eligible for future sales in the event of applicable quantity, sales method, holding period and other restrictions of Rule 144.
As at March 31, 2018, there were approximately 23 persons.
The 3 million convertible preferred shares held by our employee stock ownership plan can be converted into about 17 shares in total.
9 million shares of our common stock
Subject to the limitation of Rule 144, all of these shares will be eligible for future sale by the employee stock ownership scheme trustee or employee stock ownership scheme participant.
Contents of the director\'s form or matters proposing that shareholders may 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. P5732(1)
Directory (2)
Manufacturing plants and distribution centers owned or leased by our South American joint venture are not integrated in advertising. 5732(1)Item3.
The revised catalogue of complaints was submitted in April 28, 2016.
The revised complaint alleges that the company violated Section 10 in its public disclosure for the period from July 25-20, 2014 to March 29 (b)and 20(a)
Revised Securities Trading Act of 1934 and rules 10b-
Promulgated under this regulation.
On March 10, 2017, the district court dismissed the plaintiff\'s full charge against all the defendants, but was biased.
The plaintiff appealed to the Second Circuit appeals court of the United States, and on October 13, 2017, the district court\'s judgment was affirmed by the Second Circuit.
On October 27, 2017, the plaintiff filed an application for re-hearing with the Second Circuit Court.
The Second Circuit rejected the application for re-hearing on November 28, 2017.
The plaintiff did not seek a review by the Supreme Court, so the matter was closed. Item4.
Table 5.
The flow of 20182017 ContentsStock performance GraphTable ContentsItem.
Selected Financial and operational data sheets for content (1)(2)
EBITDA and Adjusted EBITDA, non-
GAAP Financial indicators have been reported in Form 10-
K as a supplementary measure of financial performance, these standards are not required by recognized accounting principles, nor are they proposed in accordance with recognized accounting principles.
We calculate EBITDA as net income before interest, income tax and depreciation and amortization.
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.
Other restrictions include cash requirements that fail to reflect our cash expenditures, working capital requirements, and cash costs for replacement Depreciation and amortized assets.
In evaluating EBITDA and Adjusted EBITDA, you should know that in the future we will incur the same or similar fees as some adjustments in this presentation, such as stocks
Based on compensation fees, fair value adjustment of derivative products and loss of foreign currency transactions.
In addition to using EBITDA and Adjusted EBITDA, management relies on our GAAP results to make up for these limitations.
Due to different calculation methods, our measurements of EBITDA and Adjusted EBITDA are not necessarily the same as other similar title headings of other companies. (a)(b)
Directory (c)
Represents our proportional share of interest, income tax, depreciation and amortization related to the South American joint venture and Tigre
Ads us joint venture, accounting under equity accounting.
In addition, these amounts include our proportional share of interest, income tax, depreciation and amortization related to the BaySaver joint venture prior to the acquisition of BaySaver in July 17, 2015, which was previously accounted for under the equity method.
Fiscal 2014 includes our share of the impairment of $1.
Our South American joint venture recorded 0 million. Our use of non-
GAAP measures affected by the adjustment of unincorporated affiliates do not mean that we can control the operation of unincorporated affiliates and the resulting income and expenses (d)(e)(f)(g)(h)(i)
Expenditures for fiscal 2018 relate to ongoing investigations by the SEC enforcement and related shareholder lawsuits. (j)(k)(l)
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 Discussion and Analysis of the financial status and operational results of content restructuring activities content that is expected to cover additional costsS.
The federal tax is about $0.
The first quarter ended December 31, 2017 was considered 9 million per cent of mandatory repatriation.
Based on the revised undistributed earnings calculation calculated in the fourth quarter, we confirm an additional measure --
Period adjustment of $0.
The quarterly income tax fee as at March 31, 2018 was 8 million.
A total of $5 in transitional taxes.
The fiscal year as at March 31, 2018 was recorded at 2 million per cent.
After taking advantage of the existing foreign tax credit, the company is expected to pay an additional US tax credit. S.
About $1 federal tax.
The fiscal year ended March 31, 2018 was 0 million.
There are many factors that affect our product needs.
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 the availability of credit, lending 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.
Content growth table for related products-
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 and 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 (
For example, the aftermath of Hurricane Katrina in 2005, the aftermath of Hurricane Rita in 2005, and the aftermath of Hurricane Harvey in 2017)
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 (
About 98% of the high density polyethylene resin we recycle is processed internally (enhanced)
Financial year 2018);
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 significant changes in content affected by bad weather conditions such as cold or wet weather, which may delay the project, resulting in a net for one or more quarters, but we believe that these deferred items usually result in an increase in net sales for 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 joint ventures in Mexico, Chile, Brazil, Argentina, Colombia and Peru.
The functional currency of the entire region 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.
Our results have been and will continue to be influenced by macroeconomic trends in the United States.
For fiscal 2018, 2017 and 2016, our domestic sales were $1,174.
4 million, $1,102.
$2 million and $1,113.
8 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 $17. 6million, $18.
$7 million and $20.
The fiscal year 2018 was 9 million, 2017 and 2016 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 2018, 2017 and 2016, our international sales were $155. 9million, $155.
$1 million and $176.
9 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 $44. 6million, $42.
$2 million and $50.
3 million fiscal year, 2018 fiscal year and 2017 fiscal year respectively for 2016 and.
Content list-
GAAP financial measurement report and adjusted EBITDA
GAAP Financial indicators have been reported in Form 10-
K as a supplementary measure of financial performance, these standards are not required by recognized accounting principles, nor are they proposed in accordance with recognized accounting principles.
We calculate EBITDA as net income before interest, income tax and depreciation and amortization.
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.
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.
\"Results Table of Content Network sales operations-
Net sales totaled $1,330.
The 4 million fiscal year increased by $2018. 1million or 5.
8%, $1,257.
3 million fiscal year 2017.
The cost of goods sold increased by $66. 4million, or 6. 9%, to $1,027.
In 2018, it was $9 million, compared to $961.
The 5 million financial year period was 2017 per cent.
Sales expenses for fiscal 2018 decreased by 30 basis points from fiscal 2017.
The main reason for the decrease was the benefit of bad debt charges for fiscal 2018, which were charged about $0.
6 million of Canadian customers previously booked were offset by an increase of $1.
Compensation costs 3 million
General and administrative expenses as a percentage of revenue for fiscal 2018 decreased by 140 basis points over fiscal 2017.
The main reason for the decrease was the $13 decrease in professional and legal costs.
5 million reduced costs due to restatements.
The reduction is also due to reduced inventory-
Basic compensation fee of $1. 3 million.
This reduction was partially offset by a $2 legal settlement. 0 million.
On April 1, 2017, all stock options were modified and the equity classification was carried out.
All stock options are liabilities for the fiscal year ended March 31, 2017-
Classification leads to adjustments in fair value for each period.
For the fiscal year ended March 31, 2018, we recorded $11.
4 million of the costs associated with the restructuring activities, including the closure of four inadequate manufacturing facilities.
In addition, we recorded losses of approximately $3 for other disposal and partial disposal of property, plant and equipment. 6 million. See “Note 2.
Loss of disposal of assets and cost of withdrawal from disposal activities \"for further discussion.
Compared with fiscal 2018, the percentage of intangible amortization in revenue in fiscal 2017 remained relatively stable.
Interest expenditure on our debt and capital lease debt was reduced by $2. 2 million or 12
Compared with fiscal 6%, fiscal 2018 was 2017.
The decrease in interest spending is mainly due to an average decrease of $25 in our total outstanding debt. 0 million or 7.
The balance for fiscal 1% was 2018, compared to the average balance for fiscal 2017.
Net income from derivatives and other income decreased to $4.
In fiscal year 0, revenue was $2018.
Fiscal 2017.
The reduction in derivatives contract earnings is mainly due to the large number of propylene swaps that the company has Due in fiscal 2017.
The reduction in derivatives contract earnings was partially offset by changes in foreign exchange rates.
As of fiscal March 31, 2018 and 2017, our effective tax rate is 14. 8% and 38.
0% respectively.
The reduction in the actual tax rate is mainly due to the tax law and the impact on the return on the adjustment of the terms. See “Note 17.
Income tax on other information \".
Net loss equity of unincorporated affiliates decreased by $3.
6 million fiscal year net loss 2018 dollar.
7 million fiscal year net loss 4 dollar for 2018 fiscal year.
The 3 million financial year period was 2017 per cent.
Net losses were mainly reduced by $1.
9 million proceeds recognized as a result of our contribution to the outstanding accounts receivable of the South American joint venture. See “Note 10.
For additional information, please invest in unincorporated affiliates \".
The reduction is also due to $1.
3 million impairment costs associated with our investment in the South American joint venture in fiscal 2017 were partially offset by $0.
3 million impairment expenses related to our investment in Tigre-
Advertising for fiscal 2018.
Compared with fiscal 2018, revenue attributable to non-controlling interests in fiscal 2017 was relatively flat as a percentage of income.
Compared with the fiscal year ended March 31, 2017, the content 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.
International sales fell by $21. 9 million, or 12. 4%, to $155.
The fiscal year 2017 was $176.
The previous year was 9 million.
The decrease in pipeline sales was due to a decrease of $15 in volume.
Net price fell $2 at 1 million. 7 million.
Combined Product sales also fell by $4.
5 million, or 12. 1%.
The cost 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.
According to our judgment, we should list the catalogue at any time.
In fiscal 2018, we bought back 400,000 ordinary shares for $7. 9 million. -
Liquidity is a sign of liquidity and potential demandterm funding.
We define liquidity as current assets minus current liabilities.
In fiscal 2018, cash from business activities was $137.
1 million compared to $104 in cash provided by business activities.
The fiscal year 2 million was 2017.
The cash flow from operating activities in fiscal 2018 was primarily affected by the increase in continuing operating income, including retelling the reduction in related costs.
During fiscal 2017, cash from operating 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 2018, cash for investment activities was $30.
4 million, mainly $41.
Capital expenditure and Capital software increased by $7 million and $2.
0 million for the acquisition of Duraslot, Inc.
The company received $13.
6 million of the proceeds from the sale of the company-
Have life insurance
In fiscal 2018, cash for financing activities was $95.
Million, mainly for the payment of $46 net debt.
8 million in connection with the refinancing of secured bank loans and senior notes payable, as stated in note 12.
Debt \", to pay US $24 in capital lease debt.
2 million, $18 dividend.
5 million, buy back $7 of common stock. 9 million.
The content sheet company is obliged to contribute to the plan, and when aggregated with the planned dividend, it is equal to the amount required to enable the plan to regularly pay ADS the principal and interest due.
The compensation fee is confirmed based on the average annual fair value of the shares during the period when ADS receives regular loan payments and the number of employee shareholding shares assigned to the participant\'s account.
-After repaying the above-mentioned employee stock ownership plan loan, the company will no longer need to apply for these two loans
Classification method for determining net income per share.
In addition, the company does not need to confirm the fair value of deferred compensation for employee shareholding attributable to redeemable preferred shares.
-Repayment of ESOP loans for redeemable convertible preferred shares and related conversion will have an impact on the number of issues of common stock.
As shares are converted, the number of common shares issued will increase. -
In September 24, 2010, we entered into a credit agreement with PNC Bank, National Association or PNC as an administrative agent and lender.
The credit agreement, which was revised and reiterated in June 12, 2013 and subsequently further revised, provides that our bank\'s fixed-term loans include (i)
The revolving credit mechanism provides for revolving loans and letters of credit with a maximum principal of $0. 325 billion ,(ii)
The total amount of fixed-term loans provided for fixed-term loans was $100 million, and (iii)
ADS Mexicana revolving credit financing described below, more comprehensive description in our fiscal 2017 form 10K.
On June 22, 2017, we entered into a Second Amended and Restated Credit Agreement with PNC, which amended and restated the agreement as at June 12, 2013, provided us with a $0. 55 billion revolving credit loan which is more fully described in \"Note 12.
Debt for consolidated financial statements \".
Contents of circular credit facility in Mexico-
In September 24, 2010, ADS Mexicana entered into a credit agreement with PNC and its lenders as an administrative agent.
The credit agreement, which was revised and reiterated in June 12, 2013 and subsequently further revised, provides that the total principal amount of revolving loans and credit certificates shall not exceed $12. 0million.
As of March 31, 2018, ADS Mexicana did not withdraw outstanding principal from revolving credit financing for $12.
0 million for drawing. -
On December 11, 2009, we signed a private shelf agreement with Prudential Investment Management Co. , Ltd.
Or Prudential, the agreement was revised and reiterated on September 24, 2010, followed by further revisions, stipulating that from time to time we issue Senior Secured promissory notes with a total principal amount of up to US dollars to Prudential or its affiliates.
On June 22, 2017, we entered into a second revised and restated private shelf agreement with Prudential, which amended and restated the agreement as at September 24, 2010, provision is made to issue, from time to time, a secured senior note with a principal amount of up to $0. 175 billion to Prudential or its affiliates, which is more adequately described in Note 12.
Debt for consolidated financial statements \".
According to the private shelf agreement, we have $50 million for senior notes.
As at March 31, 2018, the outstanding principal balance on these notes was US dollars. (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 equity to account for equity investments, in which case we have significant influence but do not have a controlling financial interest, such as our South American 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 lower cost or net realizable 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 future undiscounted cash flows is less than the book amount of these assets, the impairment loss is confirmed within the scope of the fair value of the asset minus any disposal cost less than the book amount of the asset. -Indefinite-
From March31, or whenever an event or change of circumstances indicates that the book value may be greater than the fair value, an impairment test is carried out on an annual basis for the living intangible asset.
Determining the fair value of these assets is inherently persuasive and involves the use of important estimates and assumptions.
Our fair value estimates are based on assumptions that we think are reasonable, but they are uncertain in themselves.
Estimated fair value of these uncertainties
Living Intangible assets, we use the revenue method to discount the expected performance using market-derived returns.
When the estimated fair value of intangible assets is less than the book value, the impairment loss is confirmed.
Table ContentsOther assets
Other assets include equity
Method investment.
Whenever an event or change of circumstances indicates that the book amount may not be recoverable, we evaluate the impairment of other assets and confirm the impairment loss when the value decrease below the book value is determined to be other valuethan-temporary. -
We sell pipeline products and related water management products.
We ship mainly to customers through internal fleet, to a lesser extent through third partyparty carriers.
We do not provide any additional revenue-generating services after the product is delivered.
Employee stock ownership schedule (ESOP)-
When the shares of convertible preferred shares are allocated to the employee stock ownership plan stock account of the employee stock ownership plan participants, we reduce the amount of deferred compensation reflected in the deferred compensation
Employee shares not obtained in the mezzanine equity. -Equity-
Classified rewards are measured based on grants
For accounting purposes, at each relevant reporting date, the estimated fair value of each award estimated to be forfeited is deducted.
The compensation fee is directly confirmed.
The line basis of the period of service required by the employee (usually the period of ownership of the grant. Volatility. Expected term. Risk-
Free rate. Dividend yield.
Content valuation table for redeemable convertible preferred shares-
Prior to the effective date of the IPO, the trustee of our employee stock ownership plan has the ability to give US shares of our redeemable convertible preferred shares.
If our redeemable convertible preferred shares may be converted into common stock no longer \"registered-
Type class of security \"(e. g.
, If there is a delisting)
The option held by the ESOP trustee will then become applicable, which grants ESOP the ability to give US shares of our redeemable convertible preferred stock.
The preferred securities that may be redeemable at the time of an event that is not entirely within the company\'s control shall be classified as securities other than the permanent equity. -
Income tax is calculated according to the asset liability method.
Deferred tax assets and liabilities are recognized and represent future tax consequences arising from the difference between the book amount of the financial statements of existing assets and liabilities and their respective tax bases. -
We confirm uncertain tax positions based on fasb asc 740, \"income tax\", provide guidance related to financial statements, confirm and measure tax positions taken or expected to be taken in tax returns.
This standard specifies the minimum confirmation threshold that needs to be reached before confirmation in the financial statements.
ASC 740 \"income tax\" also provides guidance on the cancellation of confirmations, classification, interest and penalties, interim accounting and disclosure.
Table 7 of the most recent accounting statements.
The content usage tables for forward fixed price contracts, financial hedging, and vertical integration of recycled materials increase our focus on efficiency and lead to lower overall supply costs. Item8. Item9. Item9A.
ContentsManagement report form on internal control of financial reporting control environment-we employ qualified individuals for key financial and leadership positions;
Strengthen training and development focused on ethics, compliance and anti-corruption
Corruption and corporate culture
Complete the assessment of the financial and senior executive bodies;
Control and enhanced reporting procedures at the entity level have been implemented and strengthened.
We also take action to improve processes and controls to strengthen the documentation and basis of account balances, journal entries and accounting estimates.
Lease accounting-we have improved the process and control of determining the appropriate lease accounting and classification.
These actions include the implementation of new software solutions to improve the leasing accounting process, the design of existing controls and the implementation of additional controls.
Inventory accounting-we have improved the design of existing controls, implemented additional controls, and strengthened the process of inventory cost accounting, including those related to the capitalization of differences.
Journal entries and account reconciliation-we implemented an enhanced journal entry and account reconciliation policy to support account balances, journal entries, accrual calculation, and management estimates.
We have improved the log entry process, including the evaluation of user access and the system approval enhancement of log entry.
In addition, we have implemented a new software solution to improve the process and documentation of account reconciliation.
ContentsADS Mexicana control environment table-we have set up a Management Oversight Committee related to foreign operations to implement and strengthen controls at the entity level, to strengthen key accounting policies and procedures, and to comply with and counter-
Corruption in our Mexican business.
Advertising revenue recognition cuts in Mexico-
Closing process-we have developed a new policy and strengthened internal controls related to advertising Mexico revenue recognition cutsoff process. Item9B.
Table of contents.
Item 11 \"other director information, board of directors and corporate governance information.
\"Other Director Information, board of directors and corporate governance information\", \"Report of compensation committee\", \"Discussion and Analysis of compensation\" and \"Report of compensation committee\" item 12.
Item 13 of \"secured ownership of certain beneficial owners and management\" and \"equity compensation plan information.
Item 14 of \"information on other directors, board of directors and information on corporate governance.
\"Audit and other service fees\" form. (a)1.
Financial statements. (a)2.
Schedule of financial statementsExhibits.
Content Index Table of advanced drainage system company registration certificate for exhibition and reiterated(
Refer to Annex 3 for inclusion.
Registrant\'s Current Report on Form 8-K (FileNo. 001-36557)
(Filed with the Securities and Exchange Commission on July 30, 2014).
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