secwatch.observer — SEC 8-K summary
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Issuer:     ADVANCED DRAINAGE SYSTEMS, INC. (WMS)
CIK:        0001604028
Form:       8-K
Filed at:   2022-05-19T23:59:59+00:00
Accession:  0001604028-22-000026
Event type: other_material
Sentiment:  neutral
Materiality: 0.55
Item codes: 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1604028/000160402822000026/0001604028-22-000026-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1604028/000160402822000026/wms-20220519.htm
  HTML page:      https://secwatch.observer/filing/0001604028-22-000026

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer