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by InsideTrade Staff on April 22, 2016

TemplateAdvanced Drainage Systems Inc. (NYSE:WMS) Chief Financial Officer Mark Sturgeon has notified the Company of his intent to retire

Advanced Drainage Systems Inc. (NYSE:WMS) announced that Mark Sturgeon, the Company’s Chief Financial Officer, has notified the Company of his intent to retire on March 31, 2016 after a highly successful 33-year career with the Company. Mr. Sturgeon will remain with the Company as an Executive Vice President to ensure a seamless transition from now until March 31, 2016. As part of the transition process, the Board has appointed Scott A. Cottrill as the Company’s Chief Financial Officer, effective immediately.

Joe Chlapaty, Chairman and Chief Executive Officer commented, “We owe Mark Sturgeon our utmost gratitude for his hard work and dedication throughout his long career at ADS. Mark has played a crucial role in the Company’s historical strong performance and in driving our business to the market leadership position that it holds today. I feel very fortunate to have worked alongside an executive as talented and intelligent as Mark for so many years and appreciate his tremendous contributions to our business. We appreciate Mark’s willingness to remain an Executive Vice President through fiscal year 2016 to assist with the transition process and we wish him all the best in his well-deserved retirement.”

Mr. Cottrill most recently held the position of Executive Vice President and Chief Financial Officer at Jeld-Wen, a leading global manufacturer of windows, doors and treated composite trim and panels, where he played an instrumental leadership role in strengthening the finance department. Prior to Jeld-Wen, Mr. Cottrill held various financial and accounting positions with Goodrich Corporation, including from 2005 to 2012 the positions of Vice President, Controller and Chief Accounting Officer. Mr. Cottrill began his career at PricewaterhouseCoopers, where he worked in the audit practice for over a decade with a focus on industrial and manufacturing companies.

Robert Kidder, the Company’s lead independent director, commented: “On behalf of the management team and the Board of Directors, we are thrilled to have an executive of the caliber and experience of Scott to join the ADS team. In addition to his financial and accounting expertise, Scott comes to us as a strong business leader with a proven track record of success, which we believe will help to further strengthen our financial function while supporting the Company’s continued growth.”

“I am very excited to join such a great company and a talented management team,” said Mr. Cottrill. “I look forward to working closely with senior management and the finance and accounting teams to help the Company continue to build on its leading market position.”

Advanced Drainage Equity Analysis

Advanced Drainage Systems Inc. (NYSE:WMS) opened trading today as $28.27 and is trading in the range of 28.07-30.90 today. Advanced Drainage’s current market cap stands at $1.51 billion.

Compared to other peers in the Rubber & Plastics sector, Advanced Drainage has outperformed in terms of quarterly revenue growth year over year at 0.14 vs. the industry average of 0.10.  Advanced Drainage’s earnings per share is currently at .26, which is below then the sector average of 0.86.

Advanced Drainage mean target price is $24.29 according to First Call.  This presents a solid downside to the current price of the equity.  The Mean Recommendation sits at 3.3

The most recent analyst actions consisted of Robert W. Baird initiating the stock on April 16th and Boenning & Scattergood initiating coverage with an initiation rating back in February.

The current quarter revenue estimates is 172.17M.  Sales are expected to grow at a 8.20% rate.  Advanced Drainage reported actual earnings last quarter of 0.31 which beat the .30 consensus estimate, a 3.30% surprise.

Corporate Profile

Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products for non-residential, residential, agriculture, and infrastructure applications in the United States and internationally. The company provides single, double, and triple wall corrugated polypropylene and polyethylene pipes; and allied products comprising PVC drainage structures, fittings and filters, and water quality filters and separators. It also purchases and distributes construction fabrics, and other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage. The company was founded in 1966 and is headquartered in Hilliard, Ohio.

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