Advanced Drainage Systems Backs FY18 View; Buys DURASLOT

(RTTNews) - Advanced Drainage Systems, Inc. (WMS), a manufacturer of water management products and solutions, on Thursday said it maintained its financial targets for fiscal 2018 based on current visibility, backlog of existing orders and business trends.

The company continues to expect net sales for fiscal year 2018 to be in the range of $1.275 billion to $1.325 billion, and adjusted EBITDA to be in the range of $200 and $220 million.

Capital expenditures are expected to be approximately $55 to $60 million.

Joe Chlapaty, Chairman and Chief Executive Officer , said, "Margin pressure in the quarter was driven by material cost and pricing headwinds, which we anticipate will be partially offset in the second half of the year."

Separately, Advanced Drainage Systems said it has acquired DURASLOT, Inc., a manufacturer of storm water collection surface drains used in construction applications. Terms of the transaction were not disclosed.

This transaction is consistent with ADS' strategy of making synergistic tuck-in acquisitions to leverage the existing footprint and sales network as well as to supplement organic growth.

The company further announced that its Board of Directors has approved a quarterly cash dividend of $0.07 per share to be paid on September 15 to shareholders of record at the close of business on September 1.