Nov. 3, 2010 (Canada NewsWire Group) --
TSX: ATA
CAMBRIDGE, ON, Nov. 3 /CNW/ - ATS Automation Tooling Systems Inc. ("ATS" or the "Company") today reported its financial results for the three and six months ended September 26, 2010.
Second Quarter Summary
- Consolidated revenues were $162.0 million compared to $151.1 million in the first quarter of the fiscal year and $148.2 million in the same period a year ago;
- Consolidated earnings from operations were $5.5 million compared to $9.7 million in the first quarter of the fiscal year and $9.3 million in the same period a year ago;
- Per share earnings were
.04 (basic and diluted) compared to
.07 (basic and diluted) in the first quarter of the fiscal year and
.07 (basic and diluted) in the same period a year ago; - The Company ended the period with a strong balance sheet with cash net of debt of $83.4 million at September 26, 2010.
"Our Automation Systems Group ("ASG") operating results were strong despite challenging conditions, however the Company's overall results were dampened by Photowatt," said Anthony Caputo, Chief Executive Officer. "Our growth plans for ASG are advancing. With the recent acquisition of Sortimat and future acquisitions, we are further tilting the balance of our business towards automation."
The integration of Sortimat is proceeding on plan and is focused on applying best practices to improve overall performance. This will take several quarters and until Sortimat is fully integrated, ASG operating margins will remain below historical levels. Both ASG and Sortimat will benefit from combined supply chain efficiencies, program management processes and other shared best practices and business systems. The new management team to lead ASG's businesses in the life sciences market is now in place.
The Company, in relation to separation of Photowatt, has engaged independent advisors to assist in identifying and evaluating strategic alternatives. Conditions in the solar and capital markets will be a consideration in the timing and form of separation. In the interim, the Company will continue to take necessary actions to operate and improve the business in both France and Ontario.
Financial Results
In millions of dollars,
except per share data | | 3 months
ended
Sept 26, 2010 | 3 months
ended
Sept 27, 2009 | 6 months
ended
Sept 26, 2010 | 6 months
ended
Sept 27, 2009 |
| | | | | | |
| Revenues | Automation Systems Group | $ 117.8 | $ 97.0 | $ 224.4 | $ 212.2 |
| Photowatt Technologies | 45.1 | 51.5 | 93.9 | 91.6 |
| Inter-segment | (0.9) | (0.3) | (5.1) | (2.9) |
| Consolidated | $ 162.0 | $ 148.2 | $ 313.2 | $ 300.9 |
| EBITDA | Automation Systems Group | $ 17.0 | $ 15.3 | $ 34.6 | $ 32.0 |
| Photowatt Technologies | 0.9 | 4.7 | 4.0 | 1.3 |
| Corporate and Inter-segment elimination | (6.2) | (4.5) | (12.0) | (11.1) |
| Consolidated | $ 11.7 | $ 15.5 | $ 26.6 | $ 22.2 |
| Net income | Consolidated | $ 3.3 | $ 6.0 | $ 9.7 | $ 6.3 |
Earnings
per share | From continuing operations
(basic & diluted) | $ 0.04 | $ 0.07 | $ 0.11 | $ 0.07 |
ASG Second Quarter Results
- Revenues increased to $117.8 million in the second quarter of fiscal 2011 compared to first quarter revenues of $106.6 million and $97.0 million a year ago reflecting the addition of Sortimat's businesses and improved Order Bookings compared to the prior periods;
- EBITDA was $17.0 million compared to $17.7 million in the first quarter of this fiscal year and $15.3 million in the same period a year ago;
- Earnings from operations were $14.5 million (operating margin of 12%) compared to $15.9 million (operating margin of 15%) in the first quarter of this fiscal year and $13.6 million (operating margin of 14%) in the same period a year ago;
- Period end Order Backlog was $208 million, a decrease of 3% from $215 million in the first quarter of this fiscal year and up from $197 million a year ago;
- Order Bookings were 24% higher at $105 million compared to $85 million in the first quarter of fiscal 2011 and 48% higher compared to $71 million in the second quarter of fiscal 2010;
- Order Bookings were $34 million during the first five weeks of the third quarter.
Despite the 21% year-over-year increase in revenues in the second quarter, ASG's operating margin decreased to 12% reflecting lower profitability in Sortimat's businesses and incremental amortization related to identifiable intangible assets recorded on the acquisition of Sortimat. Revenues increased year over year by 21% in life sciences, 363% in computer-electronics, 12% in transportation, and 65% in "other" markets (primarily consumer products), partially offset by declines of 4% in the energy market. Increased volumes in ASG were partially offset by year-over-year foreign exchange rate changes which negatively impacted the translation of revenues due to the strong Canadian dollar relative to the U.S. dollar and Euro.
Photowatt Second Quarter Results
- Revenues were $45.1 million, an 8% decrease over fiscal 2011 first quarter revenues of $48.8 million and a 12% decrease from $51.5 million a year ago;
- EBITDA was
.9 million compared to EBITDA of $3.2 million in the first quarter of fiscal 2011 and EBITDA of $4.7 million a year ago; - Loss from operations was $2.6 million compared to a loss from operations of
.1 million in the first quarter of fiscal 2011 and operating earnings of
.6 million a year ago; - Total megawatts (MWs) sold decreased 12% to 10.0 MWs from 11.4 MWs in the first quarter of fiscal 2011, and were 6% lower than the 10.6 MWs sold a year ago.
Second quarter fiscal 2011 revenues included $12.2 million of revenues generated primarily from the sale of excess raw material inventory, which was sold for approximately its net book value. The year-over-year decline in revenues reflected lower average selling prices, lower MWs sold and a decline in system sales. Revenues from the sale of systems decreased 35% to $20.1 million from $30.7 million a year ago. The decline in Photowatt's operating margin reflected lower revenues and incremental costs related to the start-up of Photowatt Ontario as well as higher operating costs incurred at Photowatt's joint venture, PV Alliance, to ramp-up in advance of the launch of its 25 MW cell line, which is expected in the third quarter of this fiscal year. Year-over-year foreign exchange rate changes negatively impacted the translation of revenues at PWF due to the strong Canadian dollar relative to the Euro.