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News

ATS Reports First Quarter Fiscal 2018 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 2, 2017.

First Quarter Summary

  • First quarter revenues were $264.0 million, 1% lower than a year ago.
  • First quarter earnings from operations were $21.3 million (8% operating margin), compared to $22.6 million (9% operating margin) a year ago. First quarter adjusted earnings from operations1 were $26.3 million (10% margin), compared to $27.9 million (11% margin) a year ago.
  • First quarter EBITDA1 was $30.2 million (11% margin), compared to $31.5 million (12% margin) a year ago.
  • First quarter earnings per share were 12 cents basic and diluted compared to 13 cents basic and diluted a year ago. First quarter adjusted basic earnings per share1 were 16 cents compared to 17 cents in the first quarter a year ago.
  • First quarter Order Bookings were $266 million, an 11% increase from the first quarter of fiscal 2017.
  • Period end Order Backlog was a record $683 million, 12% higher than the first quarter of fiscal 2017.
  • The Company's balance sheet and financial capacity to support growth remained strong, with unutilized credit facilities of $638.1 million.
  • Subsequent to the first quarter, the Company amended its $750 million senior secured credit facility to extend the agreement by three years to August 29, 2021.
  • The Company has developed a three-part value creation strategy: Build, Grow and Expand, to drive the creation of long-term sustainable shareholder value. See "Strategic Framework".

"Our first quarter operating performance featured year over year growth in Order Bookings and sequential margin improvement," said Andrew Hider, Chief Executive Officer. "While we are focused on running the business, we have made good progress on the implementation of new processes with the goal of taking ATS's performance to the next level.  We have a clear strategic framework designed to build on our foundation, grow our core and expand our reach with the goal of creating long-term sustainable shareholder value."

First Quarter Summary
Fiscal 2018 first quarter revenues were 1% lower than in the corresponding period a year ago. Foreign exchange rate changes positively impacted the translation of revenues earned by foreign-based subsidiaries compared to the corresponding period a year ago, reflecting the weakening of the Canadian dollar relative to the U.S. dollar and Euro.

By market, fiscal 2018 first quarter revenues from consumer products & electronics increased 2% compared to the corresponding period a year ago. Revenues generated in the energy market decreased 67% primarily due to lower Order Backlog entering the first quarter of fiscal 2018 compared to a year ago. Revenues in the life sciences market increased 26%, primarily reflecting higher Order Backlog entering the first quarter of fiscal 2018 compared to a year ago.  Transportation revenues increased 25% compared to a year ago primarily due to higher Order Backlog entering the first quarter of fiscal 2018.  

Fiscal 2018 first quarter earnings from operations were $21.3 million (8% operating margin) compared to $22.6 million (9% operating margin) in the first quarter of fiscal 2017.  First quarter fiscal 2018 earnings from operations included $5.0 million related to amortization of identifiable intangible assets recorded on the acquisitions of PA, IWK and sortimat. Included in first quarter fiscal 2017 earnings from operations was $5.3 million related to amortization of identifiable intangible assets recorded on the acquisitions of PA, IWK and sortimat.  Excluding these items, first quarter fiscal 2018 adjusted earnings from operations were $26.3 million (10% margin), compared to adjusted earnings from operations of $27.9 million (11% margin) a year ago. Lower adjusted earnings from operations primarily reflected higher selling, general and administrative expenses compared to a year ago, partially offset by an improved gross margin in the first quarter of fiscal 2018.

Depreciation and amortization expense was $8.9 million in the first quarter of fiscal 2018 and in the first quarter of fiscal 2017.

EBITDA was $30.2 million (11% EBITDA margin) in the first quarter of fiscal 2018 compared to $31.5 million (12% EBITDA margin) in the first quarter of fiscal 2017.  

Order Bookings
First quarter fiscal 2018 Order Bookings were $266 million, an 11% increase from the first quarter of fiscal 2017. By customer market, higher Order Bookings in the consumer products & electronics, energy and life sciences markets were partially offset by lower order bookings in the transportation market. Foreign exchange rate changes positively impacted the translation of Order Bookings from foreign-based ATS subsidiaries compared to the corresponding period a year ago.  

Quarterly Conference Call
ATS' quarterly conference call begins at 10:00 a.m. eastern on Wednesday August 16, 2017, 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 66247293 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 17, 2017 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 23 manufacturing facilities and over 50 offices in North America, Europe, Southeast Asia and China.

 

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