ATS Reports Fourth Quarter Fiscal 2008 Results

CAMBRIDGE, ON June 18 /CNW/ - ATS Automation Tooling Systems Inc. today reported its financial results for the three and 12 months ended March 31, 2008 - and announced that it has completed a number of further steps to strengthen the organization and restore profitability.

'We are executing a value creation strategy,' said Anthony Caputo, ATS Chief Executive Officer. 'In fiscal 2009, we plan to stabilize and improve operating performance. Our plan has four elements: improve management; fix Automation Systems Group; position Photowatt France to become a standalone company; and strengthen the balance sheet. To date, we have made good progress on all these fronts.'

Highlights

• Strengthened leadership, improved business processes;
• Returned Photowatt France to profitability in the fourth quarter through cell efficiency and manufacturing yield improvements;
• Advanced the PV Alliance relationship;
• Improved ASG operating margin to 4% before restructuring charges of 9.0 million;
• Initiated the consolidation of certain small facilities and reduced ongoing ASG costs through staff reductions;
• Booked a $27 million repetitive equipment manufacturing order in the solar industry;
• Increased period end ASG Order Backlog to $232 million, 25% higher than a year ago;
• Improved liquidity through the sale of $16.8 million of silicon not sable by Photowatt France;
• Signed an $85 million credit facility subsequent to quarter end; and
• Sold the SSP building for net proceeds of $16.0 million subsequent to quarter end.

As previously announced, management estimated the costs to improve operations at approximately $30 million. Costs incurred during the fourth quarter of fiscal 2008 included $11.1 million for restructuring and severance, PCG operating losses of $1.4 million and costs of $0.9 million related primarily to the wind down of Spheral Solar. To offset a portion of the remaining costs, management intends to monetize other redundant and non-core assets. The payback period on operational improvement costs is expected to be less than one year.

Earnings per Share

Fourth quarter 2008 earnings from continuing operations were 13 cents per share compared to a loss of $1.31 per share in the fourth quarter a year ago. Earnings per share during the fourth quarter were 10 cents compared to a loss of $1.35 per share a year ago. For fiscal 2008, earnings from continuing operations were 17 cents per share versus a loss of $1.28 per share in fiscal 2007. Net loss for the year was 33 cents per share compared to a net loss of $1.42 in fiscal 2007.