TSX: ATA
CAMBRIDGE, ON June 18 /CNW/ - ATS Automation Tooling Systems Inc. todayreported its financial results for the three and 12 months ended March 31,2008 - and announced that it has completed a number of further steps tostrengthen the organization and restore profitability.
"We are executing a value creation strategy," said Anthony Caputo, ATSChief Executive Officer. "In fiscal 2009, we plan to stabilize and improveoperating performance. Our plan has four elements: improve management; fixAutomation Systems Group; position Photowatt France to become a standalonecompany; and strengthen the balance sheet. To date, we have made good progresson 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 usable 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 improveoperations at approximately $30 million. Costs incurred during the fourthquarter of fiscal 2008 included $11.1 million for restructuring and severance,PCG operating losses of $1.4 million and costs of $0.9 million relatedprimarily to the wind down of Spheral Solar. To offset a portion of theremaining costs, management intends to monetize other redundant and non-coreassets. The payback period on operational improvement costs is expected to beless than one year.
Earnings per Share
Fourth quarter 2008 earnings from continuing operations were 13 cents pershare 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 lossof $1.35 per share a year ago. For fiscal 2008, earnings from continuingoperations were 17 cents per share versus a loss of $1.28 per share in fiscal2007. Net loss for the year was 33 cents per share compared to a net loss of$1.42 in fiscal 2007.
Financial Results
In millions 3 months 3 months 12 months 12 months of dollars, ended ended ended ended except per Mar. 31, Mar. 31, Mar. 31, Mar. 31, share data 2008 2007 2008 2007-------------------------------------------------------------------------
-------------------------------------------------------------------------Revenues Automation Systems from Group $ 125.3 $ 113.8 $ 465.0 $ 466.0 continuing ------------------------------------------------------------ operations Photowatt Technologies 61.3 38.5 198.6 150.6 ------------------------------------------------------------ Inter-segment (0.1) (0.9) (0.3) (2.1) ------------------------------------------------------------ Consolidated $ 186.5 $ 151.4 $ 663.3 $ 614.5-------------------------------------------------------------------------
-------------------------------------------------------------------------EBITDA Automation Systems Group $ (2.1) $ (1.5) $ 9.1 $ 17.9 ------------------------------------------------------------ Photowatt Technologies - Photowatt France 6.8 5.9 6.3 28.9 - Other Solar (0.9) (33.8) (6.4) (48.6) - Gain on sale of silicon 16.8 0.0 16.8 0.0 ------------------------------------------------------------ Gain on sale of investments 0.0 0.0 31.8 0.0 ------------------------------------------------------------ Corporate and Inter-segment elimination (6.6) (6.0) (26.7) (14.9) ------------------------------------------------------------ Consolidated $ 14.0 $ (35.4) $ 30.9 $ (16.7)-------------------------------------------------------------------------
-------------------------------------------------------------------------Net income (loss) from continuing operations Consolidated $ 10.3 $ (78.4) $ 12.2 $ (76.7)-------------------------------------------------------------------------
-------------------------------------------------------------------------Earnings From continuing (loss) operations per share (basic & diluted) $ 0.13 $ (1.31) $ 0.17 $ (1.28) ------------------------------------------------------------ After discontinued operations (basic & diluted) $ 0.10 $ 1.35 $ (0.33) $ (1.42)-------------------------------------------------------------------------
ASG Results
- Excluding severance costs of $9.0 million and $2.6 million respectively, fiscal 2008 fourth quarter EBITDA was $6.9 million compared to EBITDA of $1.1 million a year ago;- Period end ASG Order Backlog increased 25% to $232 million from $185 million a year ago;- ASG Order Bookings for the fourth quarter increased to $137 million compared to $134 million a year ago;- ASG Order Bookings were $110 million during the first 10 weeks of the first quarter.
ASG's revenues increased 10% in the fourth quarter compared to a yearago. The increase came from strong Order Bookings during fiscal 2008. Periodend Order Backlog supports continued revenue growth. Operating resultsimproved, after severance costs, due to increased revenue, reducedamortization and better program execution.
Photowatt Technologies Results
- Fourth quarter Photowatt France EBITDA was $6.8 million compared to $5.9 million a year ago;- Total megawatts (MWs) sold at Photowatt France increased 64% to 13.1 MWs from 8.0 MWs in the fourth quarter of fiscal 2007 - with UMGSi products accounting for 60% of revenue;- Average cell efficiency improved in the fourth quarter to approximately 13.5% for UMGSi cells (from 12.6% a year ago);- Photowatt Technologies operating earnings of $19.2 million in the fourth quarter were comprised of $3.3 million of operating earnings at Photowatt France and $15.9 million generated from a gain on the sale of non-solar grade silicon that had nominal carrying value; the gain more than offset wind-down costs of SSP.
Significant production gains, including lower silicon usage per watt andimproved cell efficiency during the fourth quarter led to increasedprofitability of Photowatt's UMGSi products. Photowatt will continue to focuson improving profitability through cost reductions and improved efficiencies.
The PV Alliance, a joint venture involving Photowatt France, EDEV EnRReparties, (a partially owned subsidiary of Electricite de France), and CEAValorisation was advanced. The PV Alliance is contemplated to include Lab-Faband manufacturing in France. Phase 1 of Lab-Fab, designed to increase cellefficiency by up to 2%, was initiated.
Precision Components Group
The Company is in negotiations to sell the key operating assets andliabilities of PCG. Results have been restated to reflect the reclassificationof PCG as a discontinued operation.
Board Changes
Neil D. Arnold, Chairman of the Board of ATS, today announced theappointment of Anthony Caputo to the Board of Directors, effectiveimmediately. Mr. Caputo joined ATS in November 2007 as Chief Executive Officerwith a 25 year track record of delivering performance, growth and valuecreation.
Peter Puccetti, founder, Chairman and Chief Investment Officer ofGoodwood Inc. and J. Cameron MacDonald, President and Chief Executive Officerof Goodwood also announced their decision to step down from the Boardeffective June 19, 2008 as part of a planned governance transition.
In announcing their decision, Mr. Puccetti said: "While we intend toremain active ATS shareholders, we have accomplished what we set out to dolast year. We facilitated change at the Board and CEO level and participatedin the development of a new strategy for ATS. We're confident in the futuredirection of the business."
Quarterly Conference Call
ATS's quarterly conference call begins at 10 am eastern today and can beaccessed over the Internet at www.atsautomation.com or on the phone at416 644 3416.
About ATS
ATS Automation Tooling Systems Inc. provides innovative, custom designed,built and installed manufacturing solutions to many of the world's mostsuccessful companies. Founded in 1978, ATS uses its industry-leading knowledgeand global capabilities to serve the sophisticated automation systems' needsof multinational customers in industries such as healthcare,computer/electronics, automotive, energy and consumer products. It alsoleverages its many years of experience and skills to fulfill the specializedrepetitive equipment manufacturing requirements of customers. ThroughPhotowatt Technologies, ATS participates in the growing solar energy industryas an integrated manufacturer of ingots, wafers, cells and modules.Photowatt-branded products and systems serve businesses, institutions andhomeowners in established and emerging markets. ATS employs approximately3,500 people at 23 manufacturing facilities in Canada, the United States,Europe, Southeast Asia and China. The Company's shares are traded on theToronto Stock Exchange under the symbol ATA. Visit the Company's website atwww.atsautomation.com.
Note to Reader
This press release and Fourth Quarter Summary for the three months endedMarch 31, 2008 (fourth quarter of fiscal 2008) provide information on theCompany's operating activities of the fourth quarter of fiscal 2008 and shouldbe read in conjunction with the Company's audited Consolidated FinancialStatements and Management's Discussion and Analysis ("MD&A") for the yearsended March 31, 2008 and 2007 and the Company's fiscal 2008 Annual Report. TheCompany assumes that the reader of this press release and Fourth QuarterSummary has access to, and has read the audited Consolidated FinancialStatements and MD&A of the Company for fiscal 2008 and the unaudited interimConsolidated Financial Statements and MD&A for the first, second and thirdquarters of fiscal 2008. Accordingly, the purpose of this press release andfourth quarter summary is to provide a fourth quarter update. These documentsand other information relating to the Company, including the Company's fiscal2008 audited Consolidated Financial Statements, MD&A and Annual InformationForm, may be found on SEDAR's website at www.sedar.com.
The Company has two reportable segments: Automation Systems Group ("ASG")and Photowatt Technologies ("Photowatt") which includes Photowatt France (theongoing Photowatt Technologies operations), Photowatt USA (a small moduleassembly and sales operation closed during fiscal 2008) and Spheral Solar (ahalted development project that has been wound down). Any reference to solarproduction capacity assumes the use of polysilicon at 15% cell efficiency,unless otherwise stated. Actual solar capacity may vary materially for anumber of reasons including the use of UMGSi, changes in cell efficiencyand/or changes in production processes. References to Photowatt's cell''efficiency'' means the percentage of incident energy that is converted intoelectrical energy in a solar cell. Solar cells and modules are sold based onwattage output.
