Advanced Drainage Systems Inc WMS
Q2 2011 Earnings Call Transcript

Transcript Call Date 01/25/2011

Operator: Ladies and gentlemen, thank you for standing by and welcome to the Conference Call for WMS Industries Fiscal 2011 the Second Quarter Results. During the presentation, all participants will be in a listen-only mode. Afterwards, you'll be invited to participate in the question-and-answer session. As a reminder, today's conference call on January 25, 2011, is being recorded.

I would now like to turn the call over to Bill Pfund, Vice President of Investor Relations for WMS Industries. Please go ahead.

William Pfund - VP, IR: Thank you, operator. Good afternoon, and welcome to WMS Industries' conference call to discuss our fiscal 2011 second quarter results and our outlook for the future. With me are Brian Gamache, Chairman and Chief Executive Officer; and Scott Schweinfurth, Executive Vice President, Chief Financial Officer and Treasurer; Orrin Edidin, our President is also joining us today from London where he is attending this week’s ICE - Totally Gaming exhibition. Although it has been a long day for him, he will be sharing his perspective on the show and our quarterly performance.

First, let me review our safe harbor language. Our call today contains forward-looking statements concerning the outlook for WMS and future business conditions. These statements are based on currently available information and involve certain risks and uncertainties. The Company's actual results may differ materially from those anticipated in the forward-looking statements depending on the factors described under 'Item 1. Business - Risk Factors' in the Company's Annual Report on Form 10-K for the year ended June 30, 2010 and in our more recent reports filed with the SEC. The forward-looking statements made on this call and webcast, the archived version of the webcast, and in any transcripts of this call are only made as of this date, January 25, 2011.

Now, let me turn the call over to Brian.

Brian R. Gamache - Chairman and CEO: Thank you, Bill and good afternoon, everyone. Today, WMS reported fiscal second quarter total revenue of $200 million and diluted earnings per share of $0.46 inclusive of a $0.02 per share benefit for the January to September 2010 period from the retroactive reinstatement of the Federal R&D tax credit.

Reflecting on the quarter and our future expectations three key takeaways should be noted. First, WMS continues to deliver consistent growth in total worldwide revenue generating a 6% increase in fiscal second quarter record revenues of $200 million. Notably, this revenue growth was led by a 12% increase in product sales revenue. This performance reflects continued strong global interest from operators upgrading their casino floors with our premium-featured Bluebird 2 and Bluebird xD platforms and the resulting increase in average sales price, which through the first six months of fiscal '11 is pacing well ahead of our guidance for the year.

WMS' revenue growth clearly reflects the high earnings performance of our products which has allowed us to capture growing share of industry spending throughout calendar 2010 both in North America and in international markets. As such, our path to continuing growth is based on innovative products and differentiated game content across our expanding product portfolio, including the success of our new Bluebird xD cabinet.

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