ATS Reports Third Quarter Fiscal 2020 Results

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