Ats Corporation · TSX:ATS
Ats — Q2 FY2023 Earnings Presentation
20 slides from Ats's earnings presentation, Nov 9, 2022
Slide 1: Second Quarter F2023 Earnings Presentation
Second Quarter F2023 Earnings Presentation November 9, 2022
Slide 2: Forward Looking Statements
Forward Looking Statements Note to Reader: This presentation and the oral statements made during this call may contain certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward- looking statements"). Forward-looking statements include a
Slide 3: Non-IFRS Measures and Other IFRS Measures
Non-IFRS Measures and Other IFRS Measures Throughout this presentation management uses certain non-IFRS 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 ope
Slide 4: Second Quarter Highlights
Second Quarter Highlights ▪ ATS delivered solid performance in a challenging economic environment ▪ Record Order Bookings¹ (up 58% y/y) to $804MM ▪ Record Order Backlog1 (up 38% y/y) to $1,793MM ▪ Revenues (up 13% y/y) to $589MM driven by recent acquisitions and organic growth1 ▪ Adj. Operating Marg
Slide 5: Our Value Drivers
Our 8 Value Drivers Financial EBIT Working Bookings Revenue Capital Margin Customer People On-Time Internal Fill Employee Quality Delivery Rate Turnover Continuous Improvement 5 5
Slide 6: Outlook
Outlook ▪ Diversified Order Backlog¹ provides solid base of work in strategic markets ▪ Life Sciences Order Backlog¹ $782 MM with strong funnel and opportunities across major submarkets ▪ EV Order Backlog¹ $614 MM due to rapid increase in global investment by OEMs ▪ Food & Beverage Order Backlog¹ $1
Slide 7: ATS Business Model
ATS Business Model STRENGTHEN OUR DELIVER PURSUIT OF CORE GROWTH EXCELLENCE m d e ine alu ea Customer Customer Long Term at gv ipl First Success Value isc in as er dd ing liv an inn De Performance Organization/Talent Strategic Planning al W Management Process rm Development Fo Value Drivers Goal Dep
Slide 8: Targeting Value Creation in Attractive Markets
Expanding Our Presence What We Look For Recent Acquisitions End Market Exposure ■ Growth orientated Attractive Low cyclicality Targeting Value Creation in Attractive Markets ■ Markets ü Life Sciences ■ Regulated spaces Acquired: Dec 2021 Price: ~US$450mm ■ Differentiated technology Strategic ■ Innov
Slide 9: Order Bookings
Order Bookings LTM Book to Bill Ratio1,2 LTM Order Bookings1,2 1.21 Figures in Millions of Canadian dollars $2,849 1.20 $2,555 $2,456 $2,281 1.15 $2,045 $1,938 1.13 1.13 1.12 Q1-F22 Q2-F22 Q3-F22 Q4-F22 Q1-F23 Q2-F23 Q1-F22 Q2-F22 Q3-F22 Q4-F22 Q1-F23 Q2-F23 1. See “Appendix: Reconciliation of Non-I
Slide 10: Q2 F2023 Financial Results
Q2 F2023 Financial Results (C$ mm, except per share data) Q2 F2023 Q2 F2022 Y/Y Change ($) Y/Y Change (%) Revenue Growth: Revenues $588.9 $522.1 $66.8 12.8% Organic 3.8 % Earnings from operations 53.0 43.7 9.3 21.3% Acquisitions 13.1 % Adjusted earnings from FX (4.1)% 75.1 70.7 4.4 6.2% operations1
Slide 11: F2023 Year-to-Date Financial Results
F2023 Year-to-Date Financial Results (C$ mm, except per share data) F2023 F2022 Y/Y Change ($) Y/Y Change (%) Revenue Growth: Revenues $1,199.5 $1,032.7 $166.8 16.2% Organic 4.6 % Earnings from operations 114.6 88.5 26.1 29.5% Acquisitions 15.1 % Adjusted earnings from FX (3.5)% 162.6 136.1 26.5 19.
Slide 12: Revenues by Type
Revenues by Type Q2 Fiscal 2023 Q2 Fiscal 2022 Sale of Sale of Goods Goods Revenues Revenues 16% 19% Service Service Revenues Construction Revenues 20% Revenues 22% Construction 61% Revenues 62% ▪ As expected, change in mix driven primarily by acquired companies ▪ Higher weighting on sale of goods p
Slide 13: Order Backlog
Order Backlog Order Backlog1 Order Backlog1,2 $1,793 $1,555 $1,475 $1,438 $1,248 $1,295 Transportation Life Sciences 34% 44% Food & Beverage 9% Energy Consumer Q1-F22 Q2-F22 Q3-F22 Q4-F22 Q1-F23 Q2-F23 4% Products 9% 1. See “Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures”; 2. Order B
Slide 14: Cash Flow Generation
Cash Flow Generation Cash Flow from Operations Free Cash Flow1 Figures in Millions of Canadian dollars Figures in Millions of Canadian dollars $79 $104 $44 $56 $(47) $(38) $(70) $(91) Q2-F22 Q2-F23 YTD-F22 YTD-F23 Q2-F22 Q2-F23 YTD-F22 YTD-F23 Net Debt to Adj. EBITDA1 3.2x 3.1x 2.8x 1.6x 1.6x 0.8x -
Slide 15: Summary
Summary ▪ Growth in revenues, with record Order Bookings1 and Order Backlog1 ▪ Positive activity levels across strategic end-markets ▪ Integration of acquisitions on track ▪ Estimated Q3-F23 Order Backlog1-to-revenue conversion in the 32% to 37% range ▪ ABM driving a disciplined, continuous improvem
Slide 16: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix Reconciliation of Non-IFRS Measures to IFRS Measures 16
Slide 17: Reconciliation of Non-IFRS Measures (Adjusted EBITDA, Order Bookings)
(C$ mm) Q2 Q2 YTD YTD (C$ mm) Q1 Q2 Q3 Q4 Q1 Q2 F2018 F2019 F2020 F2021 F2022 F2023 F2022 F2023 F2022 F2022 F2022 F2022 F2022 F2023 F2023 Adjusted EBITDA 133.3 161.9 195.1 200.7 343.9 88.8 83.3 189.6 161.2 LTM Order Bookings 1,938 2,045 2,281 2,456 2,555 2,849 Restructuring charges 11.2 — 26.6 14.3
Slide 18: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures (C$ mm) Q2 Q2 YTD YTD (C$ mm) Q2 F2018 F2019 F2020 F2021 F2022 F2023 F2022 F2023 F2022 F2023 Adjusted earnings from operations 75.1 70.7 162.6 136.1 Cash and cash 330.2 224.5 358.6 187.5 135.3 95.2 equivalents Restructuring charges 1.3 —
Slide 19: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures Measure (C$ mm) Q2 (C$) YTD YTD F2022 Q2 F2023 Q2 F2022 F2023 F2023 F2022 Accounts receivable 348.6 373.8 Basic earnings per share 0.32 0.32 0.75 0.63 Income tax receivable 9.0 6.8 Restructuring charges 0.01 — 0.01 — Acquisition-related
Slide 20: Appendix: Reclassification of Amounts by Market
Appendix: Reclassification of Amounts by Market Quarterly revenues Q3 FY22 Q4 FY22 Q1 FY23 Life Sciences revenues - As originally presented 302.5 320.3 278.5 Add: SP revenues reclassified from Consumer Products 3.9 18.7 18.5 Life Sciences revenues - reclassified 306.4 339.0 297.0 Consumer Products r