Ats Corporation · TSX:ATS
Ats — Q1 F2023 Earnings Presentation
18 slides from Ats's earnings presentation, Aug 10, 2022
Slide 1: First Quarter F2023 Earnings Presentation
First Quarter F2023 Earnings Presentation August 10, 2022
Slide 2: Forward Looking Statements
Forward Looking Statements Notice to Reader: This presentation and the oral statements made during this call contain certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements include all
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: First Quarter Highlights
First Quarter Highlights ▪ ATS continued to perform well in a fluid economic environment ▪ Record Order Bookings¹ (up 16% y/y) ▪ Record Order Backlog1 (up 25% y/y) to $1,555 million ▪ Record revenues up 20% y/y driven by recent acquisitions and organic growth1 in Transportation ▪ 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 ▪ Order Backlog¹ of $1,555 million (up 25% y/y) provides good future revenue visibility ▪ Life Sciences positive across medical devices, pharma and radiopharma ▪ EV funnel growth related to increasing global investment by OEMs to meet stated production targets ▪ Food & Beverage funnel activi
Slide 7: ATS Business Model
ATS Business Model STRENGTHEN OUR DELIVER PURSUIT OF CORE GROWTH EXCELLENCE Customer Customer Long Term First Success Value Performance Organization/Talent Strategic Planning Management Development Process Goal Deployment Value Drivers Monthly Business Reviews Continuous KPI’s Improvement Daily Annu
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 ■ Regulated spaces Acquired: Dec 2021 ✓ Life Sciences Price: ~US$450mm ■ Differentiated technology Strategic ■ Innov
Slide 9: Order Bookings
Order Bookings LTM Book to Bill Ratio1,2 LTM Order Bookings1,2 Figures in Millions of Canadian dollars 1. See “Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures”; 9 2. LTM Order Bookings = Order Bookings for the previous twelve months
Slide 10: Q1 F2023 Financial Results
Q1 F2023 Financial Results (C$ mm, except per share data) Q1 F2023 Q1 F2022 Y/Y Change ($) Y/Y Change (%) Revenues $610.6 $510.6 $100.0 19.6% Revenue Growth: Organic 5.5 % Earnings from operations 61.6 44.9 16.7 37.2% Adjusted earnings from Acquisitions 17.1 % 87.5 65.4 22.1 33.8% FX (3.0)% operatio
Slide 11: Revenues by Type
Revenues by Type Q1 Fiscal 2023 Q1 Fiscal 2022 ▪ As expected, change in mix driven primarily by acquired companies ▪ Higher weighted on product sales provides good balance to our project-based revenues 11
Slide 12: Order Backlog
Order Backlog Order Backlog1 Order Backlog1,2 1. See “Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures”; 2. Order Backlog in C$ mm; 12
Slide 13: 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 Net Debt to Adj. EBITDA1 2 ▪ Q1-23 cash used in operations primarily related to timing of investments in non-cash working capital driven by project execution
Slide 14: Summary
Summary ▪ Record revenues, Order Bookings1 and Order Backlog1 ▪ Mitigation efforts via ABM in response to challenging business environment ▪ Positive activity levels across strategic end-markets ▪ Integration of acquisitions on track – CFT (March 2021), BioDot (June 2021), NCC (September 2021), SP (
Slide 15: Appendix
Appendix Reconciliation of Non-IFRS Measures to IFRS Measures 15
Slide 16: Reconciliation of Non-IFRS Measures to IFRS Measures
(C$ mm) Q1 Q1 (C$) F2018 F2019 F2020 F2021 F2022 Q1 F2023 Q1 F2022 F2023 F2022 Adjusted EBITDA 133.3 161.9 195.1 200.7 343.9 100.8 77.9 Basic earnings per share 0.43 0.31 Restructuring charges 11.2 — 26.6 14.3 5.9 — — Acquisition-related transaction costs — 0.03 Gain on sale of facility — — — (5.3)
Slide 17: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures (C$ mm) Q1 Q1 (C$ mm) Q1 F2023 F2022 F2018 F2019 F2020 F2021 F2022 F2023 Adjusted earnings from operations 87.5 65.4 Cash and cash equivalents 330.2 224.5 358.6 187.5 135.3 139.9 Acquisition-related transaction costs 0.4 2.1 Amortization
Slide 18: Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures
Appendix: Reconciliation of Non-IFRS Measures to IFRS Measures Measure (C$ mm) Q1 F2022 F2023 Accounts receivable 348.6 342.3 Income tax receivable 9.0 7.1 Contract assets 360.8 469.0 Inventories 207.9 225.8 Deposits, prepaids and other assets 84.8 89.0 Accounts payable and accrued (501.5) (520.8) l