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 announced that Joseph A. Chlapaty has communicated
to the Board of Directors his intention to retire as the Company’s
President, Chief Executive Officer, and Chairman of the Board by the end
of calendar year 2017. As part of the Company’s succession plan, the
Board has created a search committee and has hired recruiting firm Korn
Ferry (NYSE: KFY) to identify and evaluate both internal and external
candidates to succeed Mr. Chlapaty. Mr. Chlapaty will remain as
President, CEO and Chairman of the Board throughout the search process
to ensure an orderly transition.
“It has been my honor and privilege to have served ADS over the past
thirty seven years,” Mr. Chlapaty said. “As I journey towards my 72nd
birthday and look to the bright future of ADS, I believe the timing is
right to begin planning for new leadership for our Company. Importantly,
this announcement comes at a time when ADS is very well positioned for
the future. We continue to lead the industry with our complete water
management solutions. We have a highly capable management team,
tremendous talent across our organization and are in a strong financial
position. Since our founding in 1966, our products have been
instrumental in revolutionizing water management, beginning with the
American agricultural industry to the construction and infrastructure
markets we serve today. And while our Company’s success to date has been
impressive, I believe the best days are still ahead for ADS, and I
intend to maintain a significant ownership position in the Company.
Finally, I would like to thank all of our employees, customers, advisors
and shareholders for the incredible support I have received from them
over the years.”
C. Robert Kidder, ADS’ lead independent director commented, “We are
grateful to Joe for his valued leadership and the many contributions he
has made to ADS’ success and growth over the years. Under Joe’s
leadership, ADS has grown from a small, private company with $50 million
in sales to an industry leader with an exceptionally strong brand and
more than $1.2 billion in sales across multiple end markets and
geographies. His thorough knowledge of all facets of our business and
operations and his deep understanding of our history, culture and the
markets we serve were instrumental in shaping ADS to what it is today.”
Joseph A. Chlapaty joined ADS in 1980 and has served as Chairman of the
Board since 2008, Chief Executive Officer since 2004 and President since
1994. From 1980 to 1994, Mr. Chlapaty served as our Vice President and
Chief Financial Officer. Before joining ADS, Mr. Chlapaty served as
Corporate Accounting Manager, Assistant Treasurer, and Treasurer for
Lindberg Corporation and prior to that was with Arthur Andersen LLP. Mr.
Chlapaty serves on the advisory board to Fifth Third Bank of Columbus,
and is also a member or former member of several not-for-profit boards,
including Nationwide Children’s Hospital, KIPP Journey Academy, Ohio
Foundation of Independent Colleges, the University of Dubuque and
Marietta College. Mr. Chlapaty holds a bachelor’s degree in Business
Administration from the University of Dubuque and an MBA from DePaul
University.
About ADS
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 63
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. 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,” “confident” 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
relating to our operations and business include: 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, including, without limitation, 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 that would require
the Company to make additional adjustments or revisions or to restate
the financial statements and other financial data for certain prior
periods and any future periods, any further delay in the filing of any
filings with the SEC; 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 and the 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170307006349/en/
Advanced Drainage Systems, Inc.
Michael Higgins, 614-658-0050
Director-Investor
Relations and Business Strategy
Mike.Higgins@ads-pipe.com
Source: Advanced Drainage Systems, Inc.