Advanced Drainage Systems (WMS) risk factors, FY2025 10-K

Risks Relating to Our Business

1. 01Fluctuations in the price and availability of resins, our principal raw materials, new tariff policies and our inability to obtain adequate supplies of resins from suppliers and pass on resin price increases to customers could adversely affect our business, financial condition, results of operations and cash flows
2. 02Any disruption or volatility in general business and economic conditions in the markets in which we operate including market uncertainty and volatility, could have a material adverse effect on the demand for our products and services
3. 03Demand for our products and services could decrease if we are unable to compete effectively, and our success depends largely on our ability to convert current demand for competitive products into demand for our products
4. 04We may be affected by global climate change or by legal, regulatory or market responses to such change
5. 05Our results of operations could be adversely affected by the effects of weather
6. 06The loss of any of our significant customers could adversely affect our business
7. 07Because our business is working capital intensive, we rely on our ability to manage our supply purchasing and customer credit policies
8. 08We may be unable to successfully integrate businesses to realize the anticipated benefits of acquisitions or do so within the intended timeframe
9. 09Conducting a portion of our operations through joint ventures exposes us to risks and uncertainties, many of which are outside of our control
10. 10We may not be able to successfully expand into new products
11. 11We continue to invest in our initiatives. If we fail to implement these initiatives as expected, our business, financial condition, and results of operations could be adversely affected
12. 12We are affected by increased fuel and energy prices, and our inability to obtain sufficient quantities of fuel to operate our in-house delivery fleet
13. 13Internally manufacturing our products at our own facilities subjects our business to risks associated with manufacturing processes and supply chain disruption
14. 14The nature of our business exposes us to construction defect and product liability claims as well as other legal proceedings
15. 15In the conduct of our business, we collect, use, transmit and store data on information systems, which are vulnerable to
16. 16Our success depends upon our ability to control labor costs and to attract, train and retain highly qualified employees and key personnel
17. 17If we are unable to protect our intellectual property rights, or we infringe on the intellectual property rights of others, our ability to compete could be negatively impacted
18. 18We could incur significant costs in complying with environmental, health and safety laws or permits or as a result of satisfying any liability or obligation imposed under such laws or permits

Risks Relating to Our Indebtedness

1. 19Our level of indebtedness could adversely affect our business, financial conditions or results of operations and prevent us from fulfilling our obligations under the agreements governing the terms of our indebtedness

Risks Relating to Our Common Stock

1. 20Future sales of shares by existing stockholders could cause our stock price to decline
2. 212025, there were stock options outstanding to purchase a total of approximately 0.9 million shares of our common stock. In addition, approximately 1.8 million shares of common stock are available for grant under our 2017 Omnibus Plan
3. 22Our directors, officers and principal stockholders have significant voting power and may take actions that may not be in the best interests of our other stockholders. The trustee of our retirement plan has certain limited powers to vote a large block of shares on matters presented to stockholders for approval
4. 23Anti-takeover provisions in our charter documents and Delaware law could discourage, delay or prevent a change in control of us and may affect the trading price of our common stock
5. 24As a publicly-traded manufacturing company, we are subject to a variety of risks in addition to the risks described above, each of which could adversely affect our financial position, results of operations or cash flows