ATS Corporation (TSX and NYSE: ATS) ("ATS" or the "Company")
today reported its financial results for the three and nine months
ended December 29, 2024. All references to "$" or "dollars" in this
news release are to Canadian dollars unless otherwise
indicated.
Third quarter highlights:
- Revenues were $652.0 million compared to $752.0 million a year
ago.
- Net income was $6.5 million compared to $47.2 million a year
ago.
- Basic earnings per share were 7 cents, compared to 48 cents a
year ago.
- Adjusted EBITDA1 was $87.5 million compared to $119.3 million a
year ago.
- Adjusted basic earnings per share1 were 32 cents compared to 65
cents a year ago.
- Order Bookings2 were $883 million, 32.2% higher compared to
$668 million a year ago.
- Order Backlog2 was $2,060 million, 8.0% higher compared to
$1,907 million a year ago.
"Today ATS reported third quarter results for fiscal '25. Order
Bookings this quarter reflected strong organic growth and
contributions from our acquisitions," said Andrew Hider, Chief
Executive Officer. "As anticipated, third quarter results were
impacted by lower revenues as a result of reduced market demand in
the North American EV market, partially offset by strong and
diversified growth in life sciences and food and beverage."
Year-to-date highlights:
- Revenues were $1,959.0 million compared to $2,241.4 million a
year ago.
- Net Income was $40.9 million compared to $145.7 million a year
ago.
- Basic earnings per share were 42 cents, compared to $1.49 a
year ago.
- Adjusted EBITDA1 was $271.8 million compared to $354.6 million
a year ago.
- Adjusted basic earnings per share1 were $1.07 compared to $1.96
a year ago.
- Order Bookings1 were $2,442 million, compared to $2,100 million
a year ago.
Mr. Hider added: "Q3 was the second highest bookings quarter in
company history. As we transition into the final quarter of the
fiscal year and look ahead to fiscal 2026, our significant Order
Backlog provides good revenue visibility and a solid foundation for
ATS to drive customer and shareholder value creation."
1 Non-IFRS measure: see "Non-IFRS and
Other Financial Measures".
2 Supplementary financial measure: see
"Non-IFRS and Other Financial Measures".
Financial results
(In millions of dollars, except per share
and margin data)
Three Months Ended
December 29, 2024
Three Months Ended December 31,
2023
Variance
Nine Months Ended
December 29, 2024
Nine Months Ended December 31,
2023
Variance
Revenues
$
652.0
$
752.0
(13.3)%
$
1,959.0
$
2,241.4
(12.6)%
Net income
$
6.5
$
47.2
(86.2)%
$
40.9
$
145.7
(71.9)%
Adjusted earnings from operations1
$
65.7
$
101.2
(35.1)%
$
208.3
$
301.6
(30.9)%
Adjusted earnings from operations
margin2
10.1%
13.5%
(338)bps
10.6%
13.5%
(282)bps
Adjusted EBITDA1
$
87.5
$
119.3
(26.7)%
$
271.8
$
354.6
(23.4)%
Adjusted EBITDA margin2
13.4%
15.9%
(244)bps
13.9%
15.8%
(195)bps
Basic earnings per share
$
0.07
$
0.48
(85.4)%
$
0.42
$
1.49
(71.8)%
Adjusted basic earnings per share1
$
0.32
$
0.65
(50.8)%
$
1.07
$
1.96
(45.4)%
Order Bookings3
$
883
$
668
32.2%
$
2,442
$
2,100
16.3%
As At
December 29
2024
December 31 2023
Variance
Order Backlog3
$
2,060
$
1,907
8.0%
1 Non-IFRS financial measure - See
"Non-IFRS and Other Financial Measures".
2 Non-IFRS ratio - See "Non-IFRS and Other
Financial Measures".
3 Supplementary financial measure - See
"Non-IFRS and Other Financial Measures".
Recent Acquisitions
On July 24, 2024, the Company acquired Paxiom Group ("Paxiom").
With headquarters in Montreal, Canada, Paxiom is a provider of
primary, secondary, and end-of-line packaging machines in the food
& beverage, cannabis, and pharmaceutical industries. Paxiom's
product line is expected to complement ATS’ packaging and food
technology businesses and allow ATS to offer complete packaging and
end-of-line solutions. The total purchase price paid (based on
finalization of post-closing adjustments) was $146.4 million.
On August 30, 2024, the Company acquired all material assets of
Heidolph Instruments GmbH & Co. KG and Hans Heidolph GmbH
("Hiedolph"), a leading manufacturer of premium lab equipment for
the life sciences and pharmaceutical industries, with headquarters
in Schwabach, Germany and facilities in the United States ("U.S."),
South Korea and China. The purchase price paid in the second
quarter of fiscal 2025 was $45.1 million ($30.3 million Euros).
Third quarter summary
Third quarter of fiscal 2025 revenues were 13.3% or $100.0
million lower than in the corresponding period a year ago,
primarily reflecting a year-over-year decrease in organic revenue
(excluding contributions from acquired companies and foreign
exchange translation) of $151.8 million or 20.2%, partially offset
by revenues earned by acquired companies of $41.5 million, which
included $18.7 million from Heidolph and $13.2 million from Paxiom.
Revenues generated from construction contracts decreased 29.2% or
$141.6 million from the prior period due to lower Order Backlog
entering the period, primarily within the transportation market
which included several large electric vehicle ("EV") Order Bookings
a year ago. Revenues from services increased 3.3% or $5.0 million,
primarily due to revenues earned by acquired companies of $4.8
million. Revenues from the sale of goods increased 32.2% or $36.6
million primarily due to revenues earned by acquired companies of
$26.2 million, most notably from Avidity Science, LLC ("Avidity"),
in addition to organic revenue growth on higher Order Backlog
entering the period.
By market, revenues generated in life sciences increased $59.3
million or 18.7% year over year. This was primarily due to
contributions from acquisitions totalling $28.3 million, notably
from Avidity, and organic revenue growth on higher Order Backlog
entering the quarter. Revenues generated in food & beverage
increased $18.4 million or 19.4% from the corresponding period last
year due to contributions from acquisitions of $13.2 million and
organic revenue growth on higher Order Backlog entering the
quarter. Revenues in transportation decreased $190.6 million or
79.3% year over year, due to lower Order Backlog entering the
quarter, as the prior year included several large EV projects.
Revenues generated in consumer products increased $16.2 million or
23.5% year over year due to higher Order Backlog entering the
quarter, and execution on increased in-quarter Order Bookings
compared to the previous quarter. Revenues in energy decreased $3.3
million or 10.7% due to timing of program execution.
Net income for the third quarter of fiscal 2025 was $6.5 million
(7 cents per share basic), compared to net income of $47.2 million
(48 cents per share basic) for the third quarter of fiscal 2024.
The decrease primarily reflected lower revenues, and higher
selling, general, and administrative ("SG&A"), partially offset
by increased gross margin profitability and lower restructuring
costs. Adjusted basic earnings per share were 32 cents compared to
65 cents in the third quarter of fiscal 2024 (adjusted basic
earnings per share is a non-IFRS financial measure — see "Non-IFRS
and Other Financial Measures" and "Reconciliation of Non-IFRS
Measures to IFRS Measures").
Depreciation and amortization expense was $37.9 million in the
third quarter of fiscal 2025, compared to $35.2 million a year
ago.
EBITDA was $71.0 million (10.9% EBITDA margin) in the third
quarter of fiscal 2025 compared to $113.7 million (15.1% EBITDA
margin) in the third quarter of fiscal 2024. EBITDA for the third
quarter of fiscal 2025 included $3.3 million of restructuring
charges, $1.0 million of incremental costs related to acquisition
activity, $2.1 million of acquisition-related fair value
adjustments to acquired inventories, $8.7 million of one-time
settlement costs for a canceled customer project, and $1.4 million
of stock-based compensation expenses due to revaluation. EBITDA for
the corresponding period in the prior year included $16.2 million
of restructuring charges, $0.9 million of incremental costs related
to acquisition activity, $0.8 million of acquisition-related fair
value adjustments to acquired inventories, a $0.6 million recovery
of stock-based compensation revaluation expenses, and an $11.7
million gain on sale of facilities. Excluding these costs, adjusted
EBITDA was $87.5 million (13.4% adjusted EBITDA margin), compared
to $119.3 million (15.9% adjusted EBITDA margin) for the
corresponding period in the prior year. Lower adjusted EBITDA
reflected lower revenues and increased SG&A expenses, partially
offset by increased gross margin profitability. EBITDA and adjusted
EBITDA are non-IFRS financial measures, and EBITDA margin is a
non-IFRS ratio — see "Non-IFRS and Other Financial Measures."
Order Backlog Continuity
(In millions of dollars)
Three Months Ended
December 29, 2024
Three Months Ended December 31,
2023
Nine Months Ended
December 29, 2024
Nine Months Ended December 31,
2023
Opening Order Backlog
$
1,824
$
2,016
$
1,793
$
2,153
Revenues
(652)
(752)
(1,959)
(2,241)
Order Bookings
883
668
2,442
2,100
Order Backlog adjustments1
5
(25)
(216)
2
(105)
Total
$
2,060
$
1,907
$
2,060
$
1,907
1 Order Backlog adjustments include incremental Order Backlog of
acquired companies ($12 million acquired with Paxiom in the nine
months ended December 29, 2024, and $4 million acquired with
Avidity in the three and nine months ended December 31, 2023),
foreign exchange adjustments, scope changes and cancellations. 2
See Management’s Discussion and Analysis for the three and six
months ended September 29, 2024 ("Q2F25 MD&A").
Order Bookings
Third quarter of fiscal 2025 Order Bookings were $883 million, a
32.2% year-over-year increase, reflecting an increase of 21.9% in
organic Order Bookings growth, in addition to 8.2% of growth from
acquired companies and 2.1% from positive foreign exchange
translation impacts. Order Bookings from acquired companies
totalled $54.5 million. By market, Order Bookings in life sciences
increased compared to the prior-year period primarily due to
organic growth, along with $35.8 million of contributions from
acquired companies, including $23.2 million from Heidolph. Order
Bookings in food & beverage increased from the prior period due
to contributions from acquired companies of $18.8 million. Order
Bookings in transportation increased compared to the prior-year
period due to timing of customer projects. Order Bookings in
consumer products increased from the prior period primarily due to
the timing of customer projects. Order Bookings in energy increased
compared to the prior-year period primarily due to timing of
customer projects.
Trailing twelve month book-to-bill ratio at December 29, 2024
was 1.18:1. Book-to-bill ratio, Order Bookings and organic Order
Bookings growth are supplementary financial measures — see
"Non-IFRS and Other Financial Measures."
Backlog
At December 29, 2024, Order Backlog was $2,060 million, 8.0%
higher than at December 31, 2023, primarily on account of higher
Order Backlog in life sciences, consumer products, food &
beverage and energy markets, partially offset by lower Order
Backlog within the transportation market which included several
large EV Order Bookings a year ago.
Outlook
The life sciences funnel remains strong, with a focus on
strategic submarkets of pharmaceuticals, radiopharmaceuticals, and
medical devices. Management continues to identify opportunities
with both new and existing customers, including those who produce
auto-injectors and wearable devices for diabetes and obesity
treatments, contact lenses and pre-filled syringes, automated
pharmacy solutions, as well as opportunities to provide life
science solutions that leverage integrated capabilities from across
ATS. Funnel activity in food & beverage remains strong. The
Company continues to benefit from strong brand recognition within
the global tomato processing, other soft fruits processing and
vegetable processing industries, and there is continued interest in
automated solutions within the food & beverage market more
broadly. In transportation, the funnel consists of smaller
opportunities relative to the size of the Order Bookings received
throughout fiscal years 2023 and 2024 as North American industry
participants continue to moderate new capacity investment to match
end market demand and reduce platform costs. See "Update on Large
EV Customer" below. Funnel activity in consumer products is stable,
although discretionary spending by consumers, influenced by factors
such as inflationary pressures, may impact timing of some customer
investments in the Company's solutions. Funnel activity in energy
remains strong and includes longer-term opportunities in the
nuclear industry. The Company is focused on clean energy
applications including solutions for the refurbishment of nuclear
power plants, early participation in the small modular reactor
market, and grid battery storage.
Funnel growth in markets where environmental, social and
governance requirements are an increasing focus for customers —
including nuclear and grid battery storage, as well as consumer
goods packaging — provide ATS with opportunities to use its
capabilities to respond to customer sustainability standards and
goals, including global and regional requirements to reduce carbon
emissions. Customers seeking to de-risk or enhance the resiliency
of their supply chains, address a shortage of skilled workers or
combat higher labour costs also provide future opportunities for
ATS to pursue. Management believes that the underlying trends
driving customer demand for ATS solutions including rising labour
costs, labour shortages, production onshoring or reshoring and the
need for scalable, high-quality, energy-efficient production remain
favourable.
Order Backlog of $2,060 million is expected to help mitigate
some of the impact of quarterly variability in Order Bookings on
revenues in the short term. The Company’s Order Backlog includes
several large enterprise programs that have longer periods of
performance and therefore longer revenue recognition cycles,
particularly in life sciences. In the fourth quarter of fiscal
2025, management expects to generate revenues in the range of $650
million to $710 million. This estimate is calculated each quarter
based on management’s assessment of project schedules across all
customer contracts in Order Backlog, expectations for faster-turn
product and services revenues, expected delivery timing of
third-party equipment and operational capacity. In the short-term,
management expects lower transportation revenues to continue to
negatively impact margins, until reorganization actions are fully
implemented.
Supplier lead times are generally acceptable across key
categories; however, inflationary or other cost increases, price
and lead-time volatility have and may continue to disrupt the
timing and progress of the Company’s margin expansion efforts and
affect revenue recognition. Over time, achieving management's
margin target assumes that the Company will successfully implement
its margin expansion initiatives, and that such initiatives will
result in improvements to its adjusted earnings from operations
margin that offset these shorter-term pressures (see
"Forward-Looking Statements" for a description of the risks
underlying the achievement of the margin target in future
periods).
The timing of customer decisions on larger opportunities is
expected to cause variability in Order Bookings from quarter to
quarter, and may be influenced as a result of tariffs. Revenues in
a given period are dependent on a combination of the volume of
outstanding projects the Company is contracted to perform, the size
and duration of those projects, and the timing of project
activities including design, assembly, testing, and installation.
Given the specialized nature of the Company’s offerings, the size
and scope of projects vary based on customer needs. The Company
seeks to achieve revenue growth organically and by identifying
strategic acquisition opportunities that provide access to
attractive end-markets and new products and technologies and
deliver hurdle-rate returns. After-sales revenues and reoccurring
revenues, which ATS defines as revenues from ancillary products and
services associated with equipment sales, and revenues from
customers who purchase non-customized ATS product at regular
intervals, are expected to provide some balance to customers'
capital expenditure cycles.
Except for the delays related to working capital as noted in
ATS' Q2F25 MD&A and as outlined in "Update on Large EV
Customer" herein, the Company continues to target improvements in
non-cash working capital in other parts of the business by the end
of the fiscal year. Over the long-term, the Company expects to
continue investing in non-cash working capital to support growth,
with fluctuations expected on a quarter-over-quarter basis. The
Company’s long-term goal is to maintain its investment in non-cash
working capital as a percentage of annualized revenues below 15%.
The Company expects that continued cash flows from operations,
together with cash and cash equivalents on hand and credit
available under operating and long-term credit facilities will be
sufficient to fund its requirements for investments in non-cash
working capital and capital assets, and to fund strategic
investment plans including some potential acquisitions.
Acquisitions could result in additional debt or equity financing
requirements for the Company. Non-cash working capital as a
percentage of revenues is a non-IFRS ratio — see "Non-IFRS and
Other Financial Measures."
The Company continues to make progress in line with its plans to
integrate acquired companies, and expects to realize cost and
revenue synergies consistent with announced integration plans.
Reorganization Activities
In the third quarter of fiscal 2025, restructuring expenses of
$3.3 million were recorded in relation to the Company's previously
disclosed reorganization activities. For the nine months
ended December 29, 2024, total costs of $20.4 million were
recorded.
Update on Large EV Customer
As disclosed in the Company's Q2F25 MD&A, management has
been, and continues to be, engaged in discussions with a particular
customer of certain large EV programs with respect to outstanding
payments owed and completing the commissioning of these projects in
order to receive final milestone payments. While work remains
paused on these projects, management has been and continues to be
focused on efforts to resolve disagreements with the customer. The
Company is prepared to consider all legal avenues available to it,
including dispute resolution mechanisms and litigation, if
necessary (see "Risk Factors").
The Company has outstanding and overdue accounts receivable of
approximately $165 million from this customer and approximately
$175 million of contract assets reflecting work completed and
remaining to be invoiced. Foreign currency revaluation drove the
change in these amounts compared to the values disclosed in the
Company's Q2F25 MD&A. The Company believes that it has
fulfilled its obligations under the contracts with this customer
and that it is owed these amounts for work completed.
Tariffs
With respect to potential tariffs by the U.S. on goods from
Canada, and related responses by Canada, management is monitoring
the situation closely. Although ATS' global footprint and
decentralized operating model, along with ABM tools, provide some
flexibility to address potential disruptions over the longer term,
the Company could see short-term impacts if tariffs are effected.
The Company's equipment and product revenues from its Canadian
operations being sold into the U.S. has represented a mid-teens
percentage of the Company's total revenues for the nine months
ended December 29, 2024. Management is assessing possible impacts
and actively working with ATS' customers and suppliers to mitigate
challenges that tariffs could pose (see "Risk Factors").
Risk Factors
Risks applicable to ATS’ business operations are described in
the Company’s AIF under "Risk Factors." The AIF is available on
SEDAR+ at www.sedarplus.com and on the U.S. Securities Exchange
Commission’s EDGAR at www.sec.gov. Such risks described in the AIF
remain substantially unchanged. In addition, with respect to the
information provided in "Update on Large EV Customer" herein, the
risks titled "Litigation risk" and "Customer concentration risk" in
the AIF specifically apply and are supplemented by an additional
"Customer disagreement risk" in the Company's management's
discussion and analysis for the third quarter of fiscal 2025 (the
"Q3F25 MD&A") (see "Risk Factors" in the Q3F25 MD&A). In
addition, the risk titled "International trade risk" in the AIF is
supplemented as described in the Q3F25 MD&A.
Quarterly Conference Call
ATS will host a conference call and webcast at 8:30 a.m. eastern
on Wednesday, February 5, 2025 to discuss its quarterly results.
The listen-only webcast can be accessed live at
www.atsautomation.com. The conference call can be accessed live by
dialing (888) 660-6652 or (646) 960-0554 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 (until midnight February 12,
2025) by dialing (800) 770-2030 and using the access code
8782510.
About ATS
ATS Corporation 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
solutions 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, transportation, food & beverage, consumer products,
and energy. Founded in 1978, ATS employs over 7,500 people at more
than 65 manufacturing facilities and over 85 offices in North
America, Europe, Asia and Oceania. The Company's common shares are
traded on the Toronto Stock Exchange ("TSX") and the New York Stock
Exchange ("NYSE") under the symbol ATS. Visit the Company's website
at www.atsautomation.com.
Consolidated Revenues
(In millions of dollars)
Revenues by type
Three Months Ended
December 29, 2024
Three Months Ended December 31,
2023
Nine Months Ended
December 29, 2024
Nine Months Ended December 31,
2023
Revenues from construction contracts
$
343.6
$
485.2
$
1,056.0
$
1,473.8
Services rendered
158.0
153.0
491.8
444.4
Sale of goods
150.4
113.8
411.2
323.2
Total revenues
$
652.0
$
752.0
$
1,959.0
$
2,241.4
Revenues by market
Three Months Ended
December 29, 2024
Three Months Ended December 31,
2023
Nine Months Ended
December 29, 2024
Nine Months
Ended December 31, 2023
Life Sciences
$
376.1
$
316.8
$
1,054.9
$
893.3
Food & Beverage
113.3
94.9
304.0
335.3
Transportation
49.8
240.4
263.4
711.2
Consumer Products
85.2
69.0
246.4
217.2
Energy
27.6
30.9
90.3
84.4
Total revenues
$
652.0
$
752.0
$
1,959.0
$
2,241.4
Consolidated Operating Results
(In millions of dollars)
Three Months Ended
December 29, 2024
Three Months Ended December 31,
2023
Nine Months Ended
December 29, 2024
Nine Months Ended December 31,
2023
Earnings from operations
$
33.1
$
78.5
$
122.8
$
240.6
Amortization of acquisition-related
intangible assets
16.1
17.1
51.2
51.8
Acquisition-related transaction costs
1.0
0.9
3.2
2.1
Acquisition-related inventory fair value
charges
2.1
0.8
3.8
0.8
Gain on sale of facilities
—
(11.7
)
—
(11.7
)
Restructuring charges
3.3
16.2
20.4
16.2
Settlement costs
8.7
—
8.7
—
Mark to market portion of stock-based
compensation
1.4
(0.6
)
(1.8
)
1.8
Adjusted earnings from
operations1
$
65.7
$
101.2
$
208.3
$
301.6
1 Non-IFRS Financial Measure, See "Non-IFRS and Other Financial
Measures"
Three Months Ended
December 29, 2024
Three Months Ended December 31,
2023
Nine Months Ended
December 29, 2024
Nine Months Ended December 31,
2023
Earnings from operations
$
33.1
$
78.5
$
122.8
$
240.6
Depreciation and amortization
37.9
35.2
114.7
104.8
EBITDA1
$
71.0
$
113.7
$
237.5
$
345.4
Restructuring charges
3.3
16.2
20.4
16.2
Acquisition-related transaction costs
1.0
0.9
3.2
2.1
Acquisition-related inventory fair value
charges
2.1
0.8
3.8
0.8
Settlement costs
8.7
—
8.7
—
Mark to market portion of stock-based
compensation
1.4
(0.6
)
(1.8
)
1.8
Gain on sale of facilities
—
(11.7
)
—
(11.7
)
Adjusted EBITDA1
$
87.5
$
119.3
$
271.8
$
354.6
1 Non-IFRS Financial Measure, See "Non-IFRS and Other Financial
Measures"
Order Backlog by Market
(In millions of dollars)
As at
December 29 2024
December 31 2023
Life Sciences
$
1,220
$
875
Food & Beverage
252
207
Transportation
250
564
Consumer Products
180
161
Energy
158
100
Total
$
2,060
$
1,907
Reconciliation of Non-IFRS Measures to IFRS Measures (In
millions of dollars, except per share data)
The following table reconciles adjusted EBITDA and EBITDA to the
most directly comparable IFRS measure (net income):
Three Months Ended December
29, 2024
Three Months Ended December 31,
2023
Nine Months Ended December 29,
2024
Nine Months Ended December 31,
2023
Adjusted EBITDA
$
87.5
$
119.3
$
271.8
$
354.6
Less: restructuring charges
3.3
16.2
20.4
16.2
Less: acquisition-related transaction
costs
1.0
0.9
3.2
2.1
Less: acquisition-related inventory fair
value charges
2.1
0.8
3.8
0.8
Settlement costs
8.7
—
8.7
—
Less: mark to market portion of
stock-based compensation
1.4
(0.6
)
(1.8
)
1.8
Less: gain on sale of facilities
—
(11.7
)
—
(11.7
)
EBITDA
$
71.0
$
113.7
$
237.5
$
345.4
Less: depreciation and amortization
expense
37.9
35.2
114.7
104.8
Earnings from operations
$
33.1
$
78.5
$
122.8
$
240.6
Less: net finance costs
22.5
17.5
65.5
49.9
Less: provision for income taxes
4.1
13.8
16.4
45.0
Net income
$
6.5
$
47.2
$
40.9
$
145.7
The following table reconciles adjusted earnings from
operations, adjusted net income, and adjusted basic earnings per
share to the most directly comparable IFRS measures (net income
(loss) and basic earnings (loss) per share):
Three Months Ended December
29, 2024
Three Months Ended December 31,
2023
Earnings from
operations
Finance costs
Provision for income
taxes
Net income
Basic EPS
Earnings from operations
Finance costs
Provision for income taxes
Net income
Basic EPS
Reported (IFRS)
$
33.1
$
(22.5
)
$
(4.1
)
$
6.5
$
0.07
$
78.5
$
(17.5
)
$
(13.8
)
$
47.2
$
0.48
Amortization of acquisition-related
intangibles
16.1
—
—
16.1
0.17
17.1
—
—
17.1
0.17
Restructuring charges
3.3
—
—
3.3
0.03
16.2
—
—
16.2
0.16
Acquisition-related inventory fair value
charges
2.1
—
—
2.1
0.02
0.8
—
—
0.8
0.01
Acquisition-related transaction costs
1.0
—
—
1.0
0.01
0.9
—
—
0.9
0.01
Settlement costs
8.7
—
—
8.7
0.09
—
—
—
—
—
Mark to market portion of stock-based
compensation
1.4
—
—
1.4
0.01
(0.6
)
—
—
(0.6
)
(0.01
)
Gain on sale of facilities
—
—
—
—
—
(11.7
)
—
—
(11.7
)
(0.11
)
Tax effect of the above adjustments1
—
—
(8.2
)
(8.2
)
(0.08
)
—
—
(6.0
)
(6.0
)
(0.06
)
Adjusted (non-IFRS)
$
65.7
$
30.9
$
0.32
$
101.2
$
63.9
$
0.65
1 Adjustments to provision for income taxes relate to the income
tax effects of adjustment items that are excluded for the purposes
of calculating non-IFRS based adjusted net income.
Nine Months Ended December 29,
2024
Nine Months Ended December 31,
2023
Earnings from
operations
Finance costs
Provision for income
taxes
Net income
Basic EPS
Earnings from operations
Finance costs
Provision for income taxes
Net income
Basic EPS
Reported (IFRS)
$
122.8
$
(65.5
)
$
(16.4
)
$
40.9
$
0.42
$
240.6
$
(49.9
)
$
(45.0
)
$
145.7
$
1.49
Amortization of acquisition-related
intangibles
51.2
—
—
51.2
0.52
51.8
—
—
51.8
0.53
Restructuring charges
20.4
—
—
20.4
0.21
16.2
—
—
16.2
0.17
Acquisition-related fair value inventory
charges
3.8
—
—
3.8
0.04
0.8
—
—
0.8
0.01
Acquisition-related transaction costs
3.2
—
—
3.2
0.03
2.1
—
—
2.1
0.02
Settlement costs
8.7
—
—
8.7
0.09
—
—
—
—
—
Mark to market portion of stock-based
compensation
(1.8
)
—
—
(1.8
)
(0.02
)
1.8
—
—
1.8
0.02
Gain on sale of facilities
—
—
—
—
—
(11.7
)
—
—
(11.7
)
(0.12
)
Tax effect of the above adjustments1
—
—
(22.0
)
(22.0
)
(0.22
)
—
—
(15.6
)
(15.6
)
(0.16
)
Adjusted (non-IFRS)
$
208.3
$
104.4
$
1.07
$
301.6
$
191.1
$
1.96
1 Adjustments to provision for income taxes relate to the income
tax effects of adjustment items that are excluded for the purposes
of calculating non-IFRS based adjusted net income.
The following table reconciles organic revenue to the most
directly comparable IFRS measure (revenue):
Three Months Ended
December 29, 2024
Three Months Ended December 31,
2023
Nine Months Ended
December 29, 2024
Nine Months Ended December 31,
2023
Organic revenue
$
600.2
$
706.2
$
1,820.8
$
2,096.5
Revenues of acquired companies
41.5
29.7
112.3
59.5
Impact of foreign exchange rate
changes
10.3
16.1
25.9
85.4
Total revenue
$
652.0
$
752.0
$
1,959.0
$
2,241.4
Organic revenue growth
(20.2
)%
(18.8
)%
The following table reconciles non-cash working capital as a
percentage of revenues to the most directly comparable IFRS
measures:
As at
December 29
2024
March 31 2024
Accounts receivable
$
709.1
$
471.3
Income tax receivable
17.7
13.4
Contract assets
619.5
704.7
Inventories
366.2
295.9
Deposits, prepaids and other assets
98.9
98.2
Accounts payable and accrued
liabilities
(629.8
)
(604.5
)
Income tax payable
(34.0
)
(44.7
)
Contract liabilities
(346.3
)
(312.2
)
Provisions
(35.7
)
(36.0
)
Non-cash working capital
$
765.6
$
586.1
Trailing six-month revenues annualized
$
2,529.5
$
3,087.0
Working capital %
30.3
%
19.0
%
The following table reconciles net debt to the most directly
comparable IFRS measures:
As at
December 29 2024
March 31 2024
Cash and cash equivalents
$
263.2
$
170.2
Bank indebtedness
(4.3
)
(4.1
)
Current portion of lease liabilities
(30.7
)
(27.6
)
Current portion of long-term debt
(0.2
)
(0.2
)
Long-term lease liabilities
(96.4
)
(83.8
)
Long-term debt
(1,611.0
)
(1,171.8
)
Net Debt
$
(1,479.4
)
$
(1,117.3
)
Pro Forma Adjusted EBITDA (TTM)
$
397.4
$
485.3
Net Debt to Pro Forma Adjusted
EBITDA
3.7x
2.3x
The following table reconciles free cash flow to the most
directly comparable IFRS measures:
(in millions of dollars)
Three Months Ended
December 29, 2024
Three Months Ended December 31,
2023
Nine Months Ended
December 29, 2024
Nine Months Ended December 31,
2023
Cash flows provided by (used in) operating
activities
$
66.7
$
110.5
$
(13.5
)
$
11.2
Acquisition of property, plant and
equipment
(6.9
)
(12.0
)
(22.1
)
(46.5
)
Acquisition of intangible assets
(9.5
)
(5.7
)
(27.0
)
(16.0
)
Free cash flow
$
50.3
$
92.8
$
(62.6
)
$
(51.3
)
Certain non-IFRS financial measures exclude the impact on
stock-based compensation expense of the revaluation of deferred
share units and restricted share units resulting specifically from
the change in market price of the Company's common shares between
periods. Management believes the adjustment provides further
insight into the Company's performance.
The following table reconciles total stock-based compensation
expense to its components:
(in millions of dollars)
Q3 2025
Q2 2025
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Total stock-based compensation expense
$
5.1
$
2.7
$
3.7
$
(4.3
)
$
4.7
$
3.5
$
10.0
$
19.3
Less: Mark to market portion of
stock-based compensation
1.4
(1.9
)
(1.3
)
(8.5
)
(0.6
)
(2.0
)
4.4
15.1
Base stock-based compensation
expense
$
3.7
$
4.6
$
5.0
$
4.2
$
5.3
$
5.5
$
5.6
$
4.2
INVESTMENTS, LIQUIDITY, CASH FLOW AND
FINANCIAL RESOURCES
(In millions of dollars, except
ratios)
As at
December 29 2024
March 31 2024
Cash and cash equivalents
$
263.2
$
170.2
Debt-to-equity ratio1
1.08:1
0.79:1
1 Debt is calculated as bank indebtedness, long-term debt and lease
liabilities. Equity is calculated as total equity less accumulated
other comprehensive income.
Three Months Ended
December 29, 2024
Three Months Ended December 31,
2023
Nine Months Ended
December 29, 2024
Nine Months Ended December 31,
2023
Cash, beginning of period
$
246.9
$
187.4
$
170.2
$
159.9
Total cash provided by (used in):
Operating activities
66.7
110.5
(13.5
)
11.2
Investing activities
(30.3
)
(269.3
)
(243.9
)
(315.5
)
Financing activities
(21.6
)
232.8
344.6
406.1
Net foreign exchange difference
1.5
(0.5
)
5.8
(0.8
)
Cash, end of period
$
263.2
$
260.9
$
263.2
$
260.9
ATS CORPORATION
Interim Condensed Consolidated
Statements of Financial Position
(in thousands of Canadian dollars
- unaudited)
As at
December 29
2024
March 31 2024
ASSETS
Current assets
Cash and cash equivalents
$
263,152
$
170,177
Accounts receivable
709,127
471,345
Income tax receivable
17,668
13,428
Contract assets
619,510
704,703
Inventories
366,207
295,880
Deposits, prepaids and other assets
98,935
98,161
2,074,599
1,753,694
Non-current assets
Property, plant and equipment
320,133
296,977
Right-of-use assets
120,209
105,661
Other assets
3,123
18,416
Goodwill
1,369,149
1,228,600
Intangible assets
754,600
679,547
Deferred income tax assets
24,500
5,904
2,591,714
2,335,105
Total assets
$
4,666,313
$
4,088,799
LIABILITIES AND EQUITY
Current liabilities
Bank indebtedness
$
4,252
$
4,060
Accounts payable and accrued
liabilities
629,824
604,488
Income tax payable
33,998
44,732
Contract liabilities
346,271
312,204
Provisions
35,749
35,978
Current portion of lease liabilities
30,688
27,571
Current portion of long-term debt
193
176
1,080,975
1,029,209
Non-current liabilities
Employee benefits
26,262
24,585
Long-term lease liabilities
96,390
83,808
Long-term debt
1,611,039
1,171,796
Deferred income tax liabilities
86,661
81,353
Other long-term liabilities
8,946
14,101
1,829,298
1,375,643
Total liabilities
$
2,910,273
$
2,404,852
EQUITY
Share capital
$
841,559
$
865,897
Contributed surplus
35,982
26,119
Accumulated other comprehensive income
145,608
64,155
Retained earnings
729,346
724,495
Equity attributable to shareholders
1,752,495
1,680,666
Non-controlling interests
3,545
3,281
Total equity
1,756,040
1,683,947
Total liabilities and equity
$
4,666,313
$
4,088,799
Please refer to complete Interim Condensed Consolidated
Financial Statements for supplemental notes which can be found on
the Company’s profile on SEDAR+ at www.sedarplus.com, the Company's
profile on the U.S. Securities and Exchange Commission's website at
www.sec.gov, and on the Company’s website at
www.atsautomation.com.
ATS CORPORATION
Interim Condensed Consolidated
Statements of Income
(in thousands of Canadian
dollars, except per share amounts - unaudited)
Three months ended
Nine months ended
December 29 2024
December 31 2023
December 29 2024
December 31 2023
Revenues
$
651,993
$
752,052
$
1,959,044
$
2,241,417
Operating costs and expenses
Cost of revenues
454,061
538,435
1,374,193
1,606,658
Selling, general and administrative
156,365
114,187
430,025
359,811
Restructuring costs
3,360
16,228
20,435
16,228
Stock-based compensation
5,125
4,671
11,548
18,116
Earnings from operations
33,082
78,531
122,843
240,604
Net finance costs
22,440
17,537
65,492
49,945
Income before income taxes
10,642
60,994
57,351
190,659
Income tax expense
4,137
13,812
16,438
45,010
Net income
$
6,505
$
47,182
$
40,913
$
145,649
Attributable to
Shareholders
$
6,414
$
47,048
$
40,809
$
145,276
Non-controlling interests
91
134
104
373
$
6,505
$
47,182
$
40,913
$
145,649
Earnings per share attributable to
shareholders
Basic
$
0.07
$
0.48
$
0.42
$
1.49
Diluted
$
0.07
$
0.47
$
0.41
$
1.48
Please refer to complete Interim Condensed Consolidated
Financial Statements for supplemental notes which can be found on
the Company’s profile on SEDAR+ at www.sedarplus.com, the Company's
profile on the U.S. Securities and Exchange Commission's website at
www.sec.gov, and on the Company’s website at
www.atsautomation.com.
ATS CORPORATION
Interim Condensed Consolidated
Statements of Cash Flows
(in thousands of Canadian dollars
- unaudited)
Three months ended
Nine months ended
December 29 2024
December 31 2023
December 29 2024
December 31 2023
Operating activities
Net income
$
6,505
$
47,182
$
40,913
$
145,649
Items not involving cash
Depreciation of property, plant and
equipment
8,404
7,111
25,152
20,791
Amortization of right-of-use assets
8,563
7,304
24,967
21,656
Amortization of intangible assets
20,943
20,743
64,511
62,393
Deferred income taxes
(9,488
)
(8,693
)
(25,266
)
(9,020
)
Other items not involving cash
(1,605
)
(1,871
)
(2,666
)
(2,433
)
Stock-based compensation
3,281
3,043
9,907
8,146
Change in non-cash operating working
capital
30,081
35,689
(151,073
)
(235,977
)
Cash flows provided by (used in)
operating activities
$
66,684
$
110,508
$
(13,555
)
$
11,205
Investing activities
Acquisition of property, plant and
equipment
$
(6,901
)
$
(12,045
)
$
(22,111
)
$
(46,516
)
Acquisition of intangible assets
(9,506
)
(5,666
)
(27,032
)
(15,971
)
Business acquisitions, net of cash
acquired
2,280
(266,117
)
(179,389
)
(275,776
)
Settlement of cross-currency interest rate
swap instrument
(16,555
)
—
(16,555
)
—
Proceeds from disposal of property, plant
and equipment
350
14,554
1,135
22,809
Cash flows used in investing
activities
$
(30,332
)
$
(269,274
)
$
(243,952
)
$
(315,454
)
Financing activities
Bank indebtedness
$
(13,559
)
$
2,495
$
(503
)
$
(378
)
Repayment of long-term debt
(218,569
)
(76,151
)
(505,686
)
(542,095
)
Proceeds from long-term debt
193,836
310,844
908,354
626,828
Settlement of cross-currency interest rate
swap instrument
24,262
—
24,262
—
Proceeds from exercise of stock
options
52
775
139
1,954
Proceeds from U.S. initial public
offering, net of issuance fees
—
—
—
362,072
Purchase of non-controlling interest
—
13
—
(195
)
Repurchase of common shares
—
—
(44,983
)
—
Acquisition of shares held in trust
—
—
(14,690
)
(23,820
)
Principal lease payments
(7,678
)
(5,135
)
(22,244
)
(18,250
)
Cash flows provided by (used in)
financing activities
$
(21,656
)
$
232,841
$
344,649
$
406,116
Effect of exchange rate changes on cash
and cash equivalents
1,519
(569
)
5,833
(846
)
Increase in cash and cash equivalents
16,215
73,506
92,975
101,021
Cash and cash equivalents, beginning of
period
246,937
187,382
170,177
159,867
Cash and cash equivalents, end of
period
$
263,152
$
260,888
$
263,152
$
260,888
Supplemental information
Cash income taxes paid
$
21,797
$
7,946
$
51,213
$
33,662
Cash interest paid
$
23,147
$
20,814
$
62,837
$
54,952
Please refer to complete Interim Condensed Consolidated
Financial Statements for supplemental notes which can be found on
the Company’s profile on SEDAR+ at www.sedarplus.com, the Company's
profile on the U.S. Securities and Exchange Commission's website at
www.sec.gov, and on the Company’s website at
www.atsautomation.com.
Non-IFRS and Other Financial Measures
Throughout this document, management uses certain non-IFRS
financial measures, non-IFRS ratios and supplementary financial
measures to evaluate the performance of the Company.
The terms "EBITDA", "organic revenue", "adjusted net income",
"adjusted earnings from operations", "adjusted EBITDA", "pro forma
adjusted EBITDA", "adjusted basic earnings per share", and "free
cash flow", are non-IFRS financial measures, "EBITDA margin",
"adjusted earnings from operations margin", "adjusted EBITDA
margin", "organic revenue growth", "non-cash working capital as a
percentage of revenues", and "net debt to pro forma adjusted
EBITDA" are non-IFRS ratios, and "operating margin", "Order
Bookings", "organic Order Bookings", "organic Order Bookings
growth", "Order Backlog", and "book-to-bill ratio" are
supplementary financial measures, all of which do not have any
standardized meaning prescribed within IFRS and therefore may not
be comparable to similar measures presented by other companies.
Such measures should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. In addition, management uses "earnings from operations",
which is an additional IFRS measure, to evaluate the performance of
the Company. Earnings from operations is presented on the Company’s
consolidated statements of income as net income excluding income
tax expense and net finance costs. Operating margin is an
expression of the Company’s earnings from operations as a
percentage of revenues. EBITDA is defined as earnings from
operations excluding depreciation and amortization. EBITDA margin
is an expression of the Company’s EBITDA as a percentage of
revenues. Organic revenue is defined as revenues in the stated
period excluding revenues from acquired companies for which the
acquired company was not a part of the consolidated group in the
comparable period. Organic revenue growth compares the stated
period organic revenue with the reported revenue of the comparable
prior period. Adjusted earnings from operations is defined as
earnings from operations before items excluded from management’s
internal analysis of operating results, such as amortization
expense of acquisition-related intangible assets,
acquisition-related transaction and integration costs,
restructuring charges, legal settlement costs that arise outside of
the ordinary course of business, the mark-to-market adjustment on
stock-based compensation and certain other adjustments which would
be non-recurring in nature ("adjustment items"). Adjusted earnings
from operations margin is an expression of the Company’s adjusted
earnings from operations as a percentage of revenues. Adjusted
EBITDA is defined as adjusted earnings from operations excluding
depreciation and amortization. Pro forma adjusted EBITDA is
adjusted EBITDA on a pro forma basis to reflect full contribution
from recent acquisitions. Adjusted EBITDA margin is an expression
of the entity’s adjusted EBITDA as a percentage of revenues.
Adjusted basic earnings per share is defined as adjusted net income
on a basic per share basis, where adjusted net income is defined as
adjusted earnings from operations less net finance costs and income
tax expense, plus tax effects of adjustment items and adjusted for
other significant items of a non-recurring nature. Non-cash working
capital as a percentage of revenues is defined as the sum of
accounts receivable, contract assets, inventories, deposits,
prepaids and other assets, less accounts payable, accrued
liabilities, provisions and contract liabilities divided by the
trailing two fiscal quarter revenues annualized. Free cash flow is
defined as cash provided by operating activities less property,
plant and equipment and intangible asset expenditures. Net debt to
pro forma adjusted EBITDA is the ratio of the net debt of the
Company (cash and cash equivalents less bank indebtedness,
long-term debt, and lease liabilities) to the trailing twelve month
pro forma adjusted EBITDA. Order Bookings represent new orders for
the supply of automation systems, services and products that
management believes are firm. Organic Order Bookings are defined as
Order Bookings in the stated period excluding Order Bookings from
acquired companies for which the acquired company was not a part of
the consolidated group in the comparable period. Organic Order
Bookings growth compares the stated period organic Order Bookings
with the reported Order Bookings of the comparable prior period.
Order Backlog is the estimated unearned portion of revenues on
customer contracts that are in process and have not been completed
at the specified date. Book to bill ratio is a measure of Order
Bookings compared to revenue.
Following amendments to ATS’ RSU Plan in 2022 to provide the
Company with the option for settlement in shares purchased in the
open market and the creation of the employee benefit trust to
facilitate such settlement, ATS began to account for equity-settled
RSUs using the equity method of accounting. However, prior RSU
grants which will be cash-settled and deferred share unit ("DSU")
grants which will be cash-settled are accounted for as described in
the Company's annual consolidated financial statements and have
volatility period over period based on the fluctuating price of
ATS’ common shares. Certain non-IFRS financial measures (adjusted
EBITDA, net debt to pro forma adjusted EBITDA, adjusted earnings
from operations and adjusted basic earnings per share) exclude the
impact on stock-based compensation expense of the revaluation of
DSUs and RSUs resulting specifically from the change in market
price of the Company's common shares between periods. Management
believes that this adjustment provides insight into the Company's
performance, as share price volatility drives variability in the
Company's stock-based compensation expense.
Operating margin, adjusted earnings from operations, EBITDA,
EBITDA margin, adjusted EBITDA, pro forma adjusted EBITDA and
adjusted EBITDA margin are used by the Company to evaluate the
performance of its operations. Management believes that earnings
from operations is an important indicator in measuring the
performance of the Company’s operations on a pre-tax basis and
without consideration as to how the Company finances its
operations. Management believes that organic revenue and organic
revenue growth, when considered with IFRS measures, allow the
Company to better measure the Company's performance and evaluate
long-term performance trends. Organic revenue growth also
facilitates easier comparisons of the Company's performance with
prior and future periods and relative comparisons to its peers.
Management believes that EBITDA and adjusted EBITDA are important
indicators of the Company’s ability to generate operating cash
flows to fund continued investment in its operations. Management
believes that adjusted earnings from operations, adjusted earnings
from operations margin, adjusted EBITDA, adjusted net income and
adjusted basic earnings per share are important measures to
increase comparability of performance between periods. The
adjustment items used by management to arrive at these metrics are
not considered to be indicative of the business’ ongoing operating
performance. Management uses the measure "non-cash working capital
as a percentage of revenues" to assess overall liquidity. Free cash
flow is used by the Company to measure cash flow from operations
after investment in property, plant and equipment and intangible
assets. Management uses net debt to pro forma adjusted EBITDA as a
measurement of leverage of the Company. Order Bookings provide an
indication of the Company’s ability to secure new orders for work
during a specified period, while Order Backlog provides a measure
of the value of Order Bookings that have not been completed at a
specified point in time. Both Order Bookings and Order Backlog are
indicators of future revenues that the Company expects to generate
based on contracts that management believes to be firm. Organic
Order Bookings and organic Order Bookings growth allow the Company
to better measure the Company's performance and evaluate long-term
performance trends. Organic Order Bookings growth also facilitates
easier comparisons of the Company's performance with prior and
future periods and relative comparisons to its peers. Book to bill
ratio is used to measure the Company’s ability and timeliness to
convert Order Bookings into revenues. Management believes that ATS
shareholders and potential investors in ATS use these additional
IFRS measures and non-IFRS financial measures in making investment
decisions and measuring operational results.
A reconciliation of (i) adjusted EBITDA and EBITDA to net
income, (ii) adjusted earnings from operations to net income, (iii)
adjusted net income to net income, (iv) adjusted basic earnings per
share to basic earnings per share (v) free cash flow to its IFRS
measure components and (vi) organic revenue to revenue, in each
case for the three- and nine-months ended December 29, 2024 and
December 31, 2023 is contained in this document (see
"Reconciliation of Non-IFRS Measures to IFRS Measures"). This
document also contains a reconciliation of (i) non-cash working
capital as a percentage of revenues and (ii) net debt to their IFRS
measure components, in each case at both December 29, 2024 and
March 31, 2024 (see "Reconciliation of Non-IFRS Measures to IFRS
Measures"). A reconciliation of Order Bookings and Order Backlog to
total Company revenues for the three- and nine-months ended
December 29, 2024 and December 31, 2023 is also contained in this
news release (see "Order Backlog Continuity").
Forward-Looking Statements
This news release contains certain statements that may
constitute forward-looking information and forward-looking
statements within the meaning of applicable Canadian and United
States securities laws ("forward-looking statements"). All such
statements are made pursuant to the "safe harbour" provisions of
Canadian provincial and territorial securities laws and the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking
statements include all statements that are not historical facts
regarding possible events, conditions or results of operations that
ATS believes, expects or anticipates will or may occur in the
future, including, but not limited to: the value creation strategy;
the Company’s strategy to expand organically and through
acquisition, and the expected benefits to be derived; disciplined
acquisitions; various market opportunities for ATS; expanding in
emerging markets; expectation on transportation revenues, including
the expected decrease in demand for the Company's solutions in the
EV space, and the allocation of resources to other markets;
conversion of opportunities into Order Bookings; the announcement
of new Order Bookings and the anticipated timeline for delivery;
potential impacts on the time to convert opportunities into Order
Bookings; the Company’s Order Backlog partially mitigating the
impact of variable Order Bookings; the expected benefits where the
Company engages with customers on enterprise-type solutions; the
potential impact of the Company’s approach to market and timing of
customer decisions on Order Bookings, performance period, and
timing of revenue recognition; collection of payments from
customers, including milestone payments relating to certain large
EV programs; expected benefits with respect to the Company’s
efforts to grow its product portfolio and after-sale service
revenues; the ability of after-sales revenues and reoccurring
revenues to provide some balance to customers’ capital expenditure
cycles; initiatives in furtherance of the Company’s goal of
improving its adjusted earnings from operations margin over the
long term; the uncertainty of supply chain dynamics; the
anticipated range of revenues for the following quarter;
expectation of realization of cost and revenue synergies from
integration of acquired businesses; non-cash working capital levels
as a percentage of revenues in the short-term and the long-term;
planned reorganization activities, including the reorganization
activity implemented to reflect the expected decrease in demand for
the Company’s solutions in the EV space, and its ability to improve
the cost structure of the Company, and the expected timing and cost
of the reorganization activities; expectation in relation to
meeting liquidity and funding requirements for investments;
potential to use debt or equity financing to support strategic
opportunities and growth strategy; underlying trends driving
customer demand; potential impacts of variability in bookings
caused by the strategic nature and size of EV programs; revenue
growth in other markets and due to acquisitions to offset any
reduced volumes from the EV program in fiscal 2025; expected
capital expenditures for fiscal 2025; the uncertainty and potential
impact on the Company’s business and operations due to the current
macroeconomic environment including the impacts of any epidemic or
pandemic outbreak or resurgence, inflation, uncertainty caused by
the supply chain dynamics, interest rate changes, defaults,
non-performance or other adverse developments that affect financial
institutions, transactional counterparties or other companies in
the financial services industry generally, international trade
disputes sparked by tariffs and retaliatory tariffs or other
non-tariff measures, and regional conflicts; the Company's
potential consideration of any private dispute resolution process
or litigation in connection with the existing disagreement with an
EV customer; and the Company’s belief with respect to the outcome
or impact of any lawsuits, claims, counterclaims and
contingencies.
Forward-looking statements are inherently subject to significant
known and unknown risks, uncertainties, and other factors that may
cause the actual results, performance, or achievements of ATS, or
developments in ATS’ business or in its industry, to differ
materially from the anticipated results, performance, achievements,
or developments expressed or implied by such forward-looking
statements. Important risks, uncertainties, and factors that could
cause actual results to differ materially from expectations
expressed in the forward-looking statements include, but are not
limited to: the impact of regional or global conflicts; general
market performance including capital market conditions and
availability and cost of credit; risks related to the international
trade disputes sparked by tariffs and retaliatory tariffs or other
non-tariff measures, and any escalation of such trade disputes;
risks related to a recession, slowdown, and/or sustained downturn
in the economy; performance of the markets that ATS serves;
industry challenges in securing the supply of labour, materials,
and, in certain jurisdictions, energy sources such as natural gas;
impact of inflation; interest rate changes; foreign currency and
exchange risk; the relative weakness of the Canadian dollar; risks
related to customer concentration; risks related to customer
disagreements, and in particular, the risk of failing to reach a
satisfactory resolution with respect to the current disagreement
with one of the Company’s EV customers and the risk that any
proceedings with that EV customer will be concluded in a manner
that is adverse to the Company; the risk that the Company will be
unsuccessful in collecting the outstanding payments owed in
connection with the current disagreement with one of the Company’s
EV customers and in completing the commissioning of certain large
EV programs; impact of factors such as increased pricing pressure,
increased cost of energy and supplies, and delays in relation
thereto, and possible margin compression; the regulatory and tax
environment; the emergence of new infectious diseases or any
epidemic or pandemic outbreak or resurgence, and collateral
consequences thereof, including the disruption of economic
activity, volatility in capital and credit markets, and legislative
and regulatory responses; the effect of events involving limited
liquidity, defaults, non-performance or other adverse developments
that affect financial institutions, transaction counterparties, or
other companies in the financial services industry generally, or
concerns or rumours about any events of these kinds or other
similar risks, that have in the past and may in the future lead to
market-wide liquidity problems; energy shortages and global prices
increases; inability to successfully expand organically or through
acquisition, due to an inability to grow expertise, personnel,
and/or facilities at required rates or to identify, negotiate and
conclude one or more acquisitions; or to raise, through debt or
equity, or otherwise have available, required capital; that the ATS
Business Model (“ABM") is not effective in accomplishing its goals;
that ATS is unable to expand in emerging markets, or is delayed in
relation thereto, due to any number of reasons, including inability
to effectively execute organic or inorganic expansion plans, focus
on other business priorities, or local government regulations or
delays; that the timing of completion of new Order Bookings is
other than as expected due to various reasons, including schedule
changes or the customer exercising any right to withdraw the Order
Booking or to terminate the program in whole or in part prior to
its completion, thereby preventing ATS from realizing on the full
benefit of the program; that some or all of the sales funnel is not
converted to Order Bookings due to competitive factors or failure
to meet customer needs; that the market opportunities ATS
anticipates do not materialize or that ATS is unable to exploit
such opportunities; failure to convert Order Backlog to revenue
and/or variations in the amount of Order Backlog completed in any
given quarter; timing of customer decisions related to large
enterprise programs and potential for negative impact associated
with any cancellations or non-performance in relation thereto; that
the Company is not successful in growing its product portfolio
and/or service offering or that expected benefits are not realized;
that efforts to improve adjusted earnings from operations margin
over long-term are unsuccessful, due to any number of reasons,
including less than anticipated increase in after-sales service
revenues or reduced margins attached to those revenues, inability
to achieve lower costs through supply chain management, failure to
develop, adopt internally, or have customers adopt, standardized
platforms and technologies, inability to maintain current cost
structure if revenues were to grow, and failure of ABM to impact
margins; that after-sales or reoccurring revenues do not provide
the expected balance to customers’ expenditure cycles; that
revenues are not in the expected range; that acquisitions made are
not integrated as quickly or effectively as planned or expected
and, as a result, anticipated benefits and synergies are not
realized; non-cash working capital as a percentage of revenues
operating at a level other than as expected due to reasons,
including, the timing and nature of Order Bookings, the timing of
payment milestones and payment terms in customer contracts, and
delays in customer programs; that planned reorganization activity
does not succeed in improving the cost structure of the Company, or
is not completed at the cost or within the timelines expected, or
at all; underlying trends driving customer demand will not
materialize or have the impact expected; that capital expenditure
targets are increased in the future or the Company experiences cost
increases in relation thereto; risk that the ultimate outcome of
lawsuits, claims, and contingencies give rise to material
liabilities for which no provisions have been recorded; the
consequence of activist initiatives on the business performance,
results, or share price of the Company; the impact of analyst
reports on price and trading volume of ATS’ shares; and other risks
and uncertainties detailed from time to time in ATS' filings with
securities regulators, including, without limitation, the risk
factors described in ATS’ annual information form for the fiscal
year ended March 31, 2024, which are available on the System for
Electronic Data Analysis and Retrieval+ (SEDAR+) at
www.sedarplus.com and on the U.S. Securities Exchange Commission’s
Electronic Data Gathering, Analysis and Retrieval System (EDGAR) at
www.sec.gov. ATS has attempted to identify important factors that
could cause actual results to materially differ from current
expectations, however, there may be other factors that cause actual
results to differ materially from such expectations.
Forward-looking statements are necessarily based on a number of
estimates, factors, and assumptions regarding, among others,
management's current plans, estimates, projections, beliefs and
opinions, the future performance and results of the Company’s
business and operations; the ability of ATS to execute on its
business objectives; the effectiveness of ABM in accomplishing its
goals; the ability to successfully implement margin expansion
initiative; initiatives in furtherance of the Company’s goal of
improving its adjusted earnings from operations margin over the
long term; the anticipated growth in the life sciences, food &
beverage, consumer products, and energy markets; the ability to
seek out, enter into and successfully integrate acquisitions;
ongoing cost inflationary pressures and the Company’s ability to
respond to such inflationary pressures; the effects of foreign
currency exchange rate fluctuations on its operations; the
Company’s competitive position in the industry; the Company’s
ability to adapt and develop solutions that keep pace with
continuing changes in technology and customer needs; the ability to
maintain mutually beneficial relationships with the Company’s
customers; and general economic and political conditions, and
global events, including any epidemic or pandemic outbreak or
resurgence, and the international trade disputes sparked by tariffs
and retaliatory tariffs or other non-tariff measures, and any
escalation of such trade disputes.
Forward-looking statements included in this news release are
only provided to understand management’s current expectations
relating to future periods and, as such, are not appropriate for
any other purpose. Although ATS believes that the expectations
reflected in such forward-looking statements are reasonable, such
statements involve risks and uncertainties, and ATS cautions you
not to place undue reliance upon any such forward-looking
statements, which speak only as of the date they are made. ATS does
not undertake any obligation to update forward-looking statements
contained herein other than as required by law.
Certain forward-looking information included in this news
release may also constitute a "financial outlook" within the
meaning of applicable securities laws. Financial outlook involves
statements about ATS’ prospective financial performance, financial
position or cash flows that is based on and subject to the
assumptions about future economic conditions and courses of action
described above as well as management’s assessment of project
schedules across all customer contracts in Order Backlog,
expectations for faster-turn product and services revenues,
expected delivery timing of third-party equipment and operational
capacity. Such assumptions are based on management’s assessment of
the relevant information currently available and any financial
outlook included herein is provided for the purpose of helping
readers understand management’s current expectations and plans for
the future as of the date hereof. The actual results of ATS’
operations may vary from the amounts set forth in any financial
outlook and such variances may be material. Readers are cautioned
that reliance on any financial outlook may not be appropriate for
other purposes or in other circumstances and that the risk factors
described above and other factors may cause actual results to
differ materially from any financial outlook.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250205374000/en/
For more information, contact: David Galison Head of
Investor Relations ATS Corporation 730 Fountain Street North
Cambridge, ON, N3H 4R7 (519) 653-6500
dgalison@atsautomation.com
For general media inquiries, contact: Matthew Robinson
Director, Corporate Communications ATS Corporation 730 Fountain
Street North Cambridge, ON, N3H 4R7 (519) 653-6500
mrobinson@atsautomation.com
Grafico Azioni ATS (NYSE:ATS)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni ATS (NYSE:ATS)
Storico
Da Feb 2024 a Feb 2025
