Advanced Drainage Systems, Inc. (WMS) has reported a 31.06 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $9.05 million, or $0.14 a share in the quarter, compared with $13.13 million, or $0.21 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $11.38 million, or $0.16 a share compared with $16.26 million or $0.22 a share, a year ago.
Revenue during the quarter dropped 5.79 percent to $294.72 million from $312.83 million in the previous year period. Gross margin for the quarter contracted 36 basis points over the previous year period to 23.56 percent. Total expenses were 92.81 percent of quarterly revenues, up from 90.02 percent for the same period last year. That has resulted in a contraction of 280 basis points in operating margin to 7.19 percent.
Operating income for the quarter was $21.18 million, compared with $31.23 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $43.39 million compared with $49.52 million in the prior year period. At the same time, adjusted EBITDA margin contracted 110 basis points in the quarter to 14.72 percent from 15.83 percent in the last year period.
Joe Chlapaty, chairman and chief executive officer of ADS commented, "Our results for the third quarter came in as expected, with continued softness in the domestic Ag market, lower sales in the Canadian Ag market and a relatively flat domestic construction market. In spite of these market headwinds, we are pleased with our overall performance during the quarter as we continued to outpace the overall construction market while generating strong profits and cash flow. On a year-to-date basis, we have generated solid growth of 5% in our non-residential end market, and continue to see double digit growth of our HP Pipe as well as strong growth in our Allied products."
For fiscal year 2017, Advanced Drainage Systems, Inc. forecasts revenue to be in the range of $1,225 million to $1,250 million.
Operating cash flow declines
Advanced Drainage Systems, Inc. has generated cash of $116.63 million from operating activities during the nine month period, down 9.90 percent or $12.81 million, when compared with the last year period.
The company has spent $41.42 million cash to meet investing activities during the nine month period as against cash outgo of $35.40 million in the last year period.
The company has spent $69.07 million cash to carry out financing activities during the nine month period as against cash outgo of $89.82 million in the last year period.
Cash and cash equivalents stood at stood at $12.10 million as at Dec. 31, 2016.
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