HILLIARD, Ohio--(BUSINESS WIRE)--
Advanced Drainage Systems, Inc. (NYSE:WMS) (“ADS” or the “Company”), a
leading global manufacturer of water management products and solutions
for commercial, residential, infrastructure and agricultural
applications, today provided an update on the timing by when it
anticipates completing the restatement of historical interim and annual
financial statements and filing of its Annual Report on Form 10-K for
the fiscal year ended March 31, 2015 (the “Fiscal 2015 10-K”) and
amended Quarterly Reports on Form 10-Q for the quarterly periods in the
fiscal year ended March 31, 2015 (the “Amended Quarterly Reports”).
The Company will not complete the restatement and file its Fiscal 2015
10-K or Amended Quarterly Reports on or about February 1, 2016 as
previously anticipated. The Company now expects to complete the
restatement and file its Fiscal 2015 10-K and amended fiscal year 2015
quarterly reports by the end of February 2016, although there can be no
assurance that the process will be completed by that time.
This delay is due in part to certain accounting errors that management
recently identified with respect to the Company’s Mexican joint venture
affiliate that extend beyond the scope of the inventory and leasing
errors previously disclosed. The Company will continue to work
diligently to restate its historical financial statements and file its
Fiscal 2015 10-K and Amended Quarterly Reports as soon as practicable.
Based on the Company’s current assessment of the remaining work to be
completed, management believes the end of February is a reasonable date
to expect. However, the Company intends to provide an update on this
expected timeline on or about February 15, 2016.
Upon filing the Fiscal 2015 10-K and Amended Quarterly Reports, the
Company currently anticipates being in a position to soon thereafter
issue preliminary, unaudited financial results for the nine months ended
December 31, 2015 as well as provide updated fiscal year 2016 guidance.
The company also intends to conduct an annual stockholders’ meeting
following the filing of the Fiscal 2015 10-K and will provide an update
on or about February 15, 2016 regarding the timing for such annual
stockholders’ meeting.
In addition, the New York Stock Exchange (the “NYSE”) has agreed to
provide the Company with up to a three-month additional trading period
through April 15, 2016, subject to reassessment by the NYSE on an
ongoing basis, to become current in all of its periodic public filings,
including the Company’s Quarterly Reports for the fiscal year 2016
quarterly periods ended June 30, September 30 and December 31, 2015. The
Company currently expects to timely file its Annual Report on Form 10-K
for the fiscal year ending March 31, 2016.
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 31 distribution centers. To learn more about
the ADS, please visit the Company’s website at www.ads-pipe.com.
Forward Looking Statements
Certain statements in this press release may be deemed to be
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended.
Such statements include, but are not limited to, statements regarding
the timing for the Company’s restatement and the filing of its Fiscal
2015 10-K and other restated filings with the SEC, the anticipated
timing for the issuance of additional historic and future financial
information and related filings, the anticipated impact of any
accounting adjustments identified as part of the fiscal year 2015 audit
and prior period restatements and their impact on the Company’s
financial conditions and results of operations . 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, fluctuations in the price and
availability of resins and other raw materials and our ability to pass
any increased costs of raw materials on to our customers in a timely
manner; volatility in general business and economic conditions in the
markets in which we operate; factors relating to availability of credit,
interest rates, fluctuations in capital and business and consumer
confidence; cyclicality and seasonality of the non-residential and
residential construction markets and infrastructure spending; the risks
of increasing competition in our existing and future markets, including
competition from both manufacturers of high performance thermoplastic
corrugated pipe and manufacturers of products using alternative
materials; our ability to continue to convert current demand for
concrete, steel and PVC pipe products into demand for our high
performance thermoplastic corrugated pipe and Allied Products; the
effect of weather or seasonality; the loss of any of our significant
customers; the risks of doing business internationally; the risks of
conducting a portion of our operations through joint ventures; our
ability to expand into new geographic or product markets; our ability to
achieve the acquisition component of our growth strategy; the risk
associated with manufacturing processes; our ability to manage our
assets; the risks associated with our product warranties; our ability to
manage our supply purchasing and customer credit policies; the risks
associated with our self-insured programs; our ability to control labor
costs and to attract, train and retain highly-qualified employees and
key personnel; our ability to protect our intellectual property rights;
changes in laws and regulations, including environmental laws and
regulations; our ability to project product mix; the risks associated
with our current levels of indebtedness; our ability to meet future
capital requirements and fund our liquidity needs; the risk that
additional information may arise during the course of the Company’s
ongoing accounting review that would require the Company to make
additional adjustments or revisions or to restate further the financial
statements and other financial data for certain prior periods and any
future periods, any further delay in the filing of the Company’s Fiscal
2015 10-K or other restated filings with the SEC; a conclusion that the
Company’s disclosure controls and procedures (as defined in Rules
13a-15(e) and 15d-15(e) of the Exchange Act) were ineffective; the
review of potential weaknesses or deficiencies in the Company’s
disclosure controls and procedures, and discovering further weaknesses
of which we are not currently aware or which have not been detected;
additional uncertainties related to accounting issues generally and
other risks and uncertainties described in the Company’s filings with
the SEC. 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 risks and 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.