---
schema_version: "secwatch.filing_event.v1"
accession: "0001604028-22-000026"
form_type: "8-K"
ticker: "WMS"
cik: "0001604028"
company_name: "ADVANCED DRAINAGE SYSTEMS, INC."
filed_at: "2022-05-19T23:59:59+00:00"
generated_at: "2026-06-25T09:14:13.309418+00:00"
event_type: "other_material"
sentiment: "neutral"
materiality_score: 0.55
calibrated_materiality_score: 0.55
confidence: "high"
source: SEC EDGAR
---

# ADS completes ESOP-to-401(k) transition; preferred stock converted, pro forma EPS rises to $4.06

## Summary
- All 15.6M preferred shares converted into 12.0M common shares as of April 11, 2022, at 0.7692 ratio.
- Pro forma FY2022 net income attributable to ADS $344.6M vs. historical $271.3M, basic EPS $4.06 vs. $3.22.
- ESOP compensation eliminated ($53.4M); new 401(k) expense estimated at $8-10M annually ($9M mid-point reflected).
- EPS calculation simplified: no longer uses two-class method for preferred participating securities.

## SEC filing metadata
- accession: 0001604028-22-000026
- form_type: 8-K
- ticker: WMS
- cik: 0001604028
- company_name: ADVANCED DRAINAGE SYSTEMS, INC.
- filed_at: 2022-05-19T23:59:59+00:00
- event_type: other_material
- sentiment: neutral
- materiality_score: 0.55
- calibrated_materiality_score: 0.55
- confidence: high
- sec_items: 8.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1604028/000160402822000026/0001604028-22-000026-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1604028/000160402822000026/wms-20220519.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001604028-22-000026
- JSON: https://secwatch.observer/filing/0001604028-22-000026.json
- Plain text: https://secwatch.observer/filing/0001604028-22-000026.txt

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