HILLIARD, Ohio--(BUSINESS WIRE)--
Advanced Drainage Systems, Inc. (NYSE:WMS) (the “Company”), the leading
manufacturer of high performance thermoplastic corrugated pipe and
related products, announced today that it has delayed the filing of its
Annual Report on Form 10-K for the fiscal year ended March 31, 2015
beyond the July 14, 2015 extended filing date.
As previously disclosed by the Company in its Form 12b-25 filed with the
Securities and Exchange Commission on June 30, 2015, the Company is
reviewing methodologies utilized in its year-end inventory costing
analysis and the related impact on the Company’s fiscal year 2015
financial statements. This review is ongoing, and is primarily due to
the need to assess the impact of highly volatile raw material costs
during the Company’s fiscal 2015 fourth quarter. Although the Company’s
independent public accounting firm is performing audit testing
procedures for such items, the Company anticipates that the effect of
this review will be a reduction of year-end inventory values for fiscal
year 2015 as compared to previously reported amounts, and a related
increase in cost of sales. The Company anticipates these adjustments
will have a positive impact on cost of sales in fiscal year 2016. The
Company intends to make any necessary adjustments to its previously
issued earnings release for the fourth-quarter and full fiscal year 2015
in light of the above concurrent with the filing of its Form 10-K.
As part of the review process, the Company is now also conducting a
review of its accounting treatment for its transportation and equipment
leasing program. The Company’s transportation and equipment leases have
historically been recorded as operating leases and the Company is now in
the process of re-evaluating whether it is necessary to record such
leases as capital leases.
The Company is working diligently to conclude its review and analysis of
the items described above as well as the Company’s journal entry control
processes as previously disclosed, and will announce its anticipated
timing via press release once known.
About Advanced Drainage Systems, Inc.
Advanced Drainage Systems (ADS) is the leading manufacturer of high
performance thermoplastic corrugated pipe, providing a comprehensive
suite of water management products and superior drainage solutions for
use in the construction and infrastructure marketplace. Its innovative
products are used across a broad range of end markets and applications,
including non-residential, residential, agriculture and infrastructure
applications. The Company has established a leading position in many of
these end markets by leveraging its national sales and distribution
platform, its overall product breadth and scale and its manufacturing
excellence. Founded in 1966, the Company operates a global network of 61
manufacturing plants and 29 distribution centers.
Special Note Regarding Forward-Looking Statements
This press release contains statements that may be deemed to be
forward-looking within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Such statements include, but are not limited to, the
Company’s statements regarding the anticipated timing of filing of its
annual report on Form 10-K and any impact the conclusions resulting from
the audit of the Company’s fiscal 2015 financial statements may have on
previously reported financial statements. These statements are not
historical facts but rather are based on the Company’s current
expectations, estimates and projections regarding the Company’s
business, operations and other factors relating thereto. Words such as
“may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,”
“potential,” “continue,” “expects,” “intends,” “plans,” “projects,”
“believes,” “estimates” and similar expressions are used to identify
these forward-looking statements. Factors that could cause actual
results to differ from those reflected in forward-looking statements
include, but are not limited to, the timing and outcome of the areas
that are the subject of further analysis and review as described in this
press release, any further delay in the filing of the Company’s annual
report on Form 10-K, the impact on any previously reported financial
statements, additional uncertainties related to accounting issues
generally and other risks and uncertainties described in the Company’s
filings with the Securities and Exchange Commission. New risks and
uncertainties emerge from time to time and it is not possible for the
Company to predict all risks and uncertainties that could have an impact
on the forward-looking statements contained in this press release. In
light of the significant uncertainties inherent in the forward-looking
information included herein, the inclusion of such information should
not be regarded as a representation by the Company or any other person
that the Company’s expectations, objectives or plans will be achieved in
the timeframe anticipated or at all. Investors are cautioned not to
place undue reliance on the Company’s forward-looking statements and the
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
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Advanced Drainage Systems, Inc.
Michael Higgins, 614-658-0050
Mike.Higgins@ads-pipe.com
Source: Advanced Drainage Systems, Inc.