CAMBRIDGE, ON, Dec. 29, 2015 /CNW/ - ATS Automation Tooling
Systems Inc. (TSX: ATA) ("ATS" or the "Company") today
announced an update to previous disclosure regarding its investment
in non-cash working capital. As previously disclosed, during
the first two quarters of fiscal 2016 the Company increased its
investment in non-cash working capital by approximately
$68 million.
The Company does not expect to make significant progress against
its goal of reducing its overall investment in non-cash working
capital, both in absolute terms and as a percentage of revenues, in
its fiscal third quarter ending December
27, 2015. Over time, the Company's goal remains to
operate its investment in non-cash working capital as a percentage
of annualized revenue at a level below 15%.
The Company expects that continued cash flows from operations,
together with cash and cash equivalents on hand and credit
available under operating and long-term credit facilities, will be
sufficient to fund its requirements for investments in working
capital and capital assets and to fund strategic investment plans
including some potential acquisitions. This is only an update
on the Company's investments in non-cash working capital and
working capital levels. The Company's financial results for
the third quarter ended December 27,
2015, including its complete Interim Consolidated Statement
of Cash Flows are expected to be released on February 3, 2016.
About ATS
ATS is an industry-leading automation
solutions provider to many of the world's most successful
companies. ATS uses its extensive knowledge base and global
capabilities in custom automation, repeat automation, automation
products and value-added services including pre-automation and
after-sales services to address the sophisticated manufacturing
automation systems and service needs of multinational customers in
markets such as life sciences, chemicals, consumer products,
electronics, food, beverage, transportation, energy, and oil and
gas. Founded in 1978, ATS employs approximately 3,500 people at 25
manufacturing facilities and 51 offices in North America, Europe, Southeast
Asia and China.
Note to Readers: Forward-Looking Statements:
This news
release contains certain statements that may constitute
forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"). Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of ATS, or developments in ATS'
business or in its industry, to differ materially from the
anticipated results, performance, achievements or developments
expressed or implied by such forward-looking statements.
Forward-looking statements include all disclosure regarding
possible events, conditions or results of operations that is based
on assumptions about future economic conditions and courses of
action. Forward-looking statements may also include, without
limitation, any statement relating to future events, conditions or
circumstances. ATS cautions you not to place undue reliance upon
any such forward-looking statements, which speak only as of the
date they are made. Forward-looking statements relate to,
among other things: the Company's expectations with respect to its
overall investment in non-cash working capital, both in absolute
terms and as a percentage of revenues, in its fiscal third quarter
ending December 27, 2015; the Company
continuing to seek to reduce its investment in non-cash working
capital back to a level below 15 percent of annualized revenue; and
expectation in relation to meeting funding requirements for
investments. The risks and uncertainties that may affect
forward-looking statements include, among others: that the overall
investment in non-cash working capital, both in absolute terms and
as a percentage of revenues, as at the end of its fiscal third
quarter ending December 27, 2015, is
other than expected; that the Company is unable to reduce its
investment in non-cash working capital back to a level below 15% of
annualized revenues due to reasons, including without limitation,
increased customer demand for longer payment terms, lower than
expected Order Bookings, incurrence of unexpected new red programs,
changes to project build schedules and milestone invoicing
schedules, changes to the mix of new customer milestone and invoice
payment terms, project change orders, and the impact of changes to
foreign exchange rates on reported working capital and on recorded
revenues; impact of the global economy; general market performance
including capital market conditions and availability and cost of
credit; performance of the market sectors that ATS serves; foreign
currency and exchange risk; the relative strength of the Canadian
dollar; impact of factors such as increased pricing pressure and
possible margin compression; the regulatory and tax environment;
failure or delays associated with new customer programs; potential
for greater negative impact associated with any non-performance
related to large enterprise programs; variations in the amount of
Order Backlog completed in any given quarter; that one or more
customers, or other entities with which the Company has contracted,
experience insolvency or bankruptcy with resulting delays, costs or
losses to the Company; political, labour or supplier disruptions;
the development of superior or alternative technologies to those
developed by ATS; the success of competitors with greater capital
and resources in exploiting their technology; market risk for
developing technologies; risks relating to legal proceedings to
which ATS is or may become a party; exposure to product liability
claims; risks associated with greater than anticipated tax
liabilities or expenses; and other risks detailed from time to time
in ATS' filings with Canadian provincial securities
regulators. Forward-looking statements are based on
management's current plans, estimates, projections, beliefs and
opinions, and other than as required by applicable securities laws,
ATS does not undertake any obligation to update forward-looking
statements should assumptions related to these plans, estimates,
projections, beliefs and opinions change.
SOURCE ATS Automation Tooling Systems Inc.