---
schema_version: "secwatch.filing_event.v1"
accession: "0001604028-22-000008"
form_type: "8-K"
ticker: "WMS"
cik: "0001604028"
company_name: "ADVANCED DRAINAGE SYSTEMS, INC."
filed_at: "2022-02-03T23:59:59+00:00"
generated_at: "2026-06-27T11:43:52.384640+00:00"
event_type: "other_material"
sentiment: "positive"
materiality_score: 0.65
calibrated_materiality_score: 0.65
confidence: "high"
source: SEC EDGAR
---

# ADS terminates ESOP: repays $0.3M loan, converts preferred stock to common; pro forma EPS ~$3.03

## Summary
- Board authorized cash contribution to ESOP to repay outstanding ESOP loan of ~$0.3M; repayment effective March 31, 2022.
- All ~0.3M preferred shares (convertible at 0.7692 into common) will be converted to common stock after loan repayment.
- ESOP merged into existing 401(k) plan effective April 1, 2022, replacing leveraged ESOP with employer matching contributions.
- Pro forma basic EPS of $3.03 (FY2021) and $3.08 (nine months Dec 2021) vs historical $2.64 and $2.67.
- One-time accelerated ESOP compensation expense of ~$34M in Q4 FY2022; ongoing 401(k) expense ~$8-10M annual.

## SEC filing metadata
- accession: 0001604028-22-000008
- form_type: 8-K
- ticker: WMS
- cik: 0001604028
- company_name: ADVANCED DRAINAGE SYSTEMS, INC.
- filed_at: 2022-02-03T23:59:59+00:00
- event_type: other_material
- sentiment: positive
- materiality_score: 0.65
- calibrated_materiality_score: 0.65
- confidence: high
- sec_items: 8.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1604028/000160402822000008/0001604028-22-000008-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1604028/000160402822000008/wms-20220202.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001604028-22-000008
- JSON: https://secwatch.observer/filing/0001604028-22-000008.json
- Plain text: https://secwatch.observer/filing/0001604028-22-000008.txt

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.