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News

ATS Reports First Quarter Fiscal 2017 Results

ATS Automation

CAMBRIDGE, ON - ATS Automation Tooling Systems Inc. (TSX: ATA) ("ATS" or the "Company") today reported financial results for the three months ended July 3, 2016.

First Quarter Summary

  • Revenues were $265.4 million, 4% higher than the first quarter a year ago, primarily reflecting foreign exchange rate changes;
  • Earnings from operations were $22.6 million (9% operating margin), compared to $17.5 million (7% operating margin) in the first quarter of fiscal 2016. Adjusted earnings from continuing operations1 were $27.9 million (11% margin), compared to $27.4 million (11% margin) a year ago;
  • EBITDA1 was $31.5 million (12% margin), compared to $28.7 million (11% margin) in the first quarter a year ago;
  • Earnings per share were 13 cents basic compared to 11 cents basic a year ago. Adjusted basic earnings per share from continuing operations1 were 17 cents compared to 18 cents in the first quarter a year ago;
  • Order Bookings were $239 million, an 8% increase from the first quarter of fiscal 2016;
  • Period end Order Backlog was $610 million, 3% higher than the first quarter of fiscal 2016; and
  • The Company's balance sheet and financial capacity to support growth remained strong, with unutilized credit facilities of $651.2 million and $3.9 million of credit available under letter of credit facilities.

1 Non-IFRS measure: see "Notice to Reader: Non-IFRS Measures and Additional IFRS Measures".

"First quarter operating performance was solid," said Anthony Caputo, Chief Executive Officer. "Order Backlog is significant, well diversified and of strategic importance to our customers. We have a healthy balance sheet, significant cash resources and funding available. As a result, we are in a strong position to continue to pursue our growth strategy, both organically and through acquisition."

First Quarter Summary
Fiscal 2017 first quarter revenues were 4% higher than in the corresponding period a year ago. Higher revenues primarily reflected foreign exchange rate changes which positively impacted the translation of revenues earned by foreign-based subsidiaries compared to the corresponding period a year ago, primarily reflecting the weakening of the Canadian dollar relative to the U.S dollar and Euro. By market, fiscal 2017 first quarter revenues from consumer products & electronics decreased 3% compared to the corresponding period a year ago. Revenues generated in the energy market increased 253% primarily due to higher Order Backlog entering the first quarter of fiscal 2017 compared to a year ago. Revenues in the life sciences market decreased 11% primarily reflecting timing of project activities. Transportation revenues decreased 24% primarily reflecting lower Order Backlog entering the first quarter of fiscal 2017 compared to a year ago.

Fiscal 2017 first quarter earnings from operations were $22.6 million (9% operating margin) compared to $17.5 million (7% operating margin) in the first quarter of fiscal 2016. Excluding $5.3 million related to amortization of identifiable intangible assets recorded on the acquisitions of PA, IWK, and sortimat, first quarter fiscal 2017 adjusted earnings from operations were $27.9 million (11% margin). First quarter earnings from operations a year ago included $2.2 million of restructuring and severance costs and $7.7 million related to the amortization of identifiable intangible assets recorded on the acquisitions of PA, IWK, ATW, and sortimat. Excluding these items, adjusted earnings from operations a year ago were $27.4 million (11% margin).

Depreciation and amortization expense was $8.9 million in the first quarter of fiscal 2017, compared to $11.2 million a year ago. The decrease primarily reflected lower amortization of identifiable intangible assets recorded on the acquisitions of PA, IWK, ATW and sortimat compared to the first quarter of fiscal 2016. EBITDA was $31.5 million (12% EBITDA margin) in the first quarter of fiscal 2017 compared to $28.7 million (11% EBITDA margin) in the first quarter of fiscal 2016. Excluding restructuring and severance costs, first quarter fiscal 2016 EBITDA was $30.9 million (12% EBITDA margin).

Order Bookings
First quarter fiscal 2017 Order Bookings were $239 million, an 8% increase from the first quarter of fiscal 2016. By customer market, increased Order Bookings in the transportation market more than offset lower Order Bookings in the consumer products and electronics markets. Order Bookings in the life sciences market were flat. Foreign exchange rate changes also positively impacted the translation of Order Bookings from foreign-based ATS subsidiaries compared to the first quarter of 2016.

Quarterly Conference Call
ATS' quarterly conference call begins at 10:00 a.m. eastern on Wednesday August 17, 2016, and can be accessed live at www.atsautomation.com or on the phone by dialing (647) 427-7450 five minutes prior. A replay of the conference will be available on the ATS website following the call. Alternatively, a telephone recording of the call will be available for one week by dialing (416) 849-0833 and entering passcode 61394229 followed by the number sign.

Annual Shareholders' Meeting
The Company will host its annual meeting of shareholders at 10:00 a.m. eastern on Thursday, August 18, 2016 at the TMX Broadcast Centre, The Exchange Tower, 130 King Street West, Toronto Ontario.

About ATS
ATS is an industry-leading automation solutions provider to many of the world's most successful companies. ATS uses its extensive knowledge base and global capabilities in custom automation, repeat automation, automation products and value-added services including pre-automation and after-sales services to address the sophisticated manufacturing automation systems and service needs of multinational customers in markets such as life sciences, chemicals, consumer products, electronics, food, beverage, transportation, energy, and oil and gas. Founded in 1978, ATS employs approximately 3,500 people at 24 manufacturing facilities and over 50 offices in North America, Europe, Southeast Asia and China.

 

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