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ATS Industrial Automation is a global leader integrator for EV battery, fixed energy storage, E-commerce packaging, electronic product assembly, and testing automation. Our customers are weary of production problems and want high-volume, high-speed capabilities so that they can deliver a quality product, on-time, and on-budget. With expertise in battery assembly, welding, vision, and process automation, ATS Industrial Automations provides the best route to scale their business. Our custom systems are modular and provide capabilities that enable the switching of products within the same production line. When every day matters, ATS Industrial Automation turns today’s innovation and automated processes into tomorrow’s reality.

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ATS Reports Third Quarter Fiscal 2020 Results

POSTED 02/06/2020

CAMBRIDGE, ON /CNW/ - ATS Automation Tooling Systems Inc. (TSX: ATA) ("ATS" or the "Company") today reported financial results for the three and nine months ended December 29, 2019.

Third quarter highlights:

  • Revenues increased 14% to $367.2 million. Organic growth in revenues was 5% with 9% coming from acquired businesses.
  • The Company initiated a previously announced reorganization plan. See "Reorganization Plan".
  • Earnings from operations were $10.4 million (3% operating margin), compared to $38.5 million (12% operating margin) a year ago. Adjusted earnings from operations1 were $37.5 million (10% margin), compared to $46.7 million (15% margin) a year ago.
  • EBITDA1 was $26.8 million (7% EBITDA margin), compared to $48.7 million (15% EBITDA margin) a year ago. Lower EBITDA primarily reflected restructuring charges, higher stock compensation expenses and operating inefficiencies from the implementation of the Reorganization Plan.
  • Earnings per share were 4 cents basic and diluted compared to 27 cents a year ago.
  • Adjusted basic earnings per share1 were 26 cents compared to 33 cents a year ago.
  • Order Bookings were $368 million, 7% lower than a year ago.
  • Order Backlog increased 1% to $939 million at December 29, 2019 compared to $926 million a year ago.
  • The Company acquired MARCO Limited, a leading provider of yield control and recipe formulation systems. See "Business Acquisitions – MARCO Limited".

"Third quarter performance featured year-over-year growth in revenues," said Andrew Hider, Chief Executive Officer. "Operationally, we initiated a reorganization plan designed to reallocate capital from underperforming facilities to high-performing facilities to support growth and drive continued performance improvement. When complete, this plan will contribute to our margin expansion plans and improve our return on invested capital."

Year-to-date highlights:

  • Revenues increased 16% to $1,047.6 million. Organic growth in revenues was 7% with 9% coming from acquisitions.
  • Earnings from operations were $70.7 million (7% operating margin), compared to $84.5 million (9% operating margin) in the prior year.
  • Adjusted earnings from operations1 were $118.0 million (11% margin), compared to $104.6 million (12% margin) in the prior year.
  • EBITDA1 was $123.8 million (12% EBITDA margin), compared to $114.6 million (13% EBITDA margin) in the prior year.
  • Earnings per share was 43 cents basic and diluted compared to 56 cents in the prior year.
  • Adjusted basic earnings per share1 increased 11% to 80 cents from 72 cents a year ago.
  • Order Bookings of $1,112 million were comparable to the corresponding period a year ago.

Mr. Hider added, "We have continued to execute on our M&A strategy with the acquisition of MARCO, a leading provider of yield control solutions for food and related markets. This is a first step for ATS into an attractive new vertical that provides a stable, mid-single digit growth rate, and is subject to regulation that drives the ongoing need for high-precision technologies. Integration of Comecer is on track as demonstrated by the $32 million joint program win in the third quarter for a new pharmaceutical customer. Going forward, we have a strong balance sheet that will allow us to continue pursuing our value creation strategy, build, grow and expand, with the goal of creating long-term shareholder value."

For further information:

Ryan McLeod, Vice President, Corporate Controller, 519 653-6500