FINAL TRANSCRIPT

ATS Corporation

Third Quarter 2023 Results Conference Call

Event Date/Time: February 9, 2023 - 8:30 a.m. E.T.

Length: 55 minutes

"While Cision has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript is error-free. Cision will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or liabilities which may arise out of or result from any use made of this transcript or any error contained therein."

  • Bien que Cision ait fait des efforts commercialement raisonnables afin de produire cette transcription, la société ne peut affirmer ou garantir qu'elle ne contient aucune erreur. Cision ne peut être tenue responsable pour toute perte de profits ou autres dommage ou responsabilité causé par ou découlant directement, indirectement, accessoirement ou spécialement de toute erreur liée à l'utilisation de ce texte ou à toute erreur qu'il contiendrait. »

CORPORATE PARTICIPANTS

David Galison

ATS Corporation - Head of Investor Relations

Andrew Hider

ATS Corporation - Chief Executive Officer

Ryan McLeod

ATS Corporation - Chief Financial Officer

CONFERENCE CALL PARTICIPANTS

Patrick Sullivan

TD Securities - Analyst

David Ocampo

Cormark Securities, Inc. - Analyst

Michael Glen

Raymond James - Analyst

Justin Keywood

Stifel - Analyst

Sabahat Khan

RBC Capital Markets - Analyst

Maxim Sytchev

National Bank Financial - Analyst

2

PRESENTATION

Operator

Good morning, ladies and gentlemen. Welcome to the ATS Corporation Third Quarter Conference Call and Webcast. This call is being recorded on February 9, 2023 at 8:30 a.m. Eastern time. Following the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up for questions.

I'll now turn the call over to David Galison, Head of Investor Relations at ATS.

David Galison -

Thank you, Operator, and good morning, everyone. On the call today are Andrew Hider, Chief Executive Officer of ATS; and Ryan McLeod, Chief Financial Officer. Please note that our remarks today are accompanied by a slide deck, which can be viewed via our webcast and available at atsautomation.com.

We caution that the statements made on the webcast and conference call may contain forward- looking information and our cautionary statement regarding such information, including the material factors that could cause actual results to differ materially from the statements and the material factors or assumptions applied in making these statements are detailed on Slide 2 of the slide deck.

Now, it's my pleasure to turn the call over to Andrew.

3

Andrew Hider -

Thank you, David. Good morning, ladies and gentlemen, and thank you for joining us.

ATS is proud to report another quarter of record bookings, backlog and revenues. Adjusted earnings were in line with our expectation and as anticipated, cash generation was strong as EV programs progressed.

Despite continued economic volatility, our performance in this environment demonstrates the strength of our strategy and market focus and an unwavering commitment to the ATS business model, which is at the core of everything we do. In the quarter, we announced two acquisitions, made further progress on current integrations and published our sustainability report.

We also completed a corporate name change and rebranded to reflect the evolution of ATS as a diversified technologically advanced organization, delivering solutions that positively impact lives around the world. Our new name ATS Corporation under the new trading symbol, ATS, better reflects the company we are today and creates consistency in our brand presence.

Today, I will update you on the business and Ryan will provide his financial report. Starting with our financial value drivers. Q3 revenues were $647 million up 18% from Q3 last year, driven by a combination of acquired businesses and continued strength across our core operations. Organic revenue growth was 10% year-over-year, reflecting good execution across our strategic markets.

4

Order bookings for the quarter of $979 million were another record, up 46% year-over-year, including $355 million of life sciences bookings and $392 million from transportation. Our Adjusted EBIT margin in Q3 was 12.5%.

Moving to our outlook. We finished the quarter with a record backlog of over $2.1 billion. Our backlog once again, provides us with a solid base to work from in key markets. Life Sciences backlog was $739 million. In the quarter, we drove strong organic bookings growth versus last year.

Our funnel has progressively strengthened throughout the year. We're also building our integrated funnel across the life sciences businesses and see momentum continuing to build with great examples of ongoing collaboration between SP, Comecer, Life Sciences systems, and BioDot.

For example, this quarter SP partner with Comecer and booked an integrated solution that included a flexible filling line for vials, syringes, and cartridges with an isolator. Synergies like this support our direction and the value proposition of our integrated Life Sciences group.

Transportation ending backlog was $887 million, up 350% year-over-year, driven by the shift to electrification of vehicles. Subsequent to the end of the quarter, we announced another US$120 million and follow on work from EV.

Our experience in this space, combined with market dynamics creates further opportunity for us to support key customers and the challenges they're facing in transforming their production capacity.

5

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

ATS - Automation Tooling Systems Inc. published this content on 24 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2023 14:04:02 UTC.