CAMBRIDGE, ON, April 8, 2020 /CNW/ - ATS Automation Tooling
Systems Inc. (TSX: ATA) ("ATS" or the "Company") today announced it
has received an Order Booking from a global automotive manufacturer
for a fully automated battery assembly system for their North
American manufacturing operations.
This enterprise program is valued at approximately $60 million and includes the design, build, and
installation of two turnkey battery assembly systems. These systems
are critical components of the customer's electric vehicle (EV)
strategy. The Order Booking will be recorded in the Company's
fourth quarter of fiscal 2020 and is expected to be delivered over
the next 18 months.
"Our ability to develop a low-risk solution based on our
demonstrated EV expertise and technology were critical in the
customer's decision to award ATS this strategic program," said
Andrew Hider, Chief Executive
Officer. "The program will be built on our best-in class
SuperTrakTM linear motion technology. We look
forward to delivering on this important project, and the
opportunity to expand this program in the future."
Update on Global Operations
ATS today provided an
update on its global operations and the impact of the ongoing
healthcare crisis caused by the recent novel coronavirus
("COVID-19") outbreak. COVID-19 has impacted and could further
impact the Company's operations and the operations of customers and
suppliers as a result of quarantines, facility closures, and travel
and logistical restrictions in connection with the outbreak.
"The global pandemic has caused uncertainty in our end-markets,
which we expect will impact customer ordering activity," said Mr.
Hider. "While some customers are proceeding with strategic
projects, as evidenced by the enterprise program we announced
today, others have shut down their operations and some are placing
ongoing programs on hold or deferring new projects to focus on
preserving liquidity."
Mr. Hider continued, "Our first priority is to ensure the
safety, health and mental wellness of our employees and ensuring
they are informed on all matters related to COVID-19 and are
equipped with the necessary resources. We are similarly concerned
for the well-being of our customers, suppliers, and our
communities, and we are committed to taking precautionary measures
recommended by global health authorities. We have a pandemic
response team that is working around the clock to coordinate our
global approach and ensure local regulations are followed."
Measures implemented to enable social distancing across ATS'
operations, including remote work and flexible schedules, have
caused the Company to operate below full capacity. Travel
restrictions and closures of customer facilities have disrupted
customer projects and service activity. These factors are expected
to negatively impact fourth quarter operating margins and are
expected to impact the Company's operating results in the first
quarter of fiscal 2021.
With travel restrictions in place, the Company is leveraging
innovative technologies such as
IlluminateTM Manufacturing
Intelligence and Enhanced Remote Support to assist customers in
maximizing overall equipment efficiency and operational efficiency
and productivity of their operations. These initiatives are
intended to help mitigate disruption.
Management is focused on cost-containment measures and the
preservation of liquidity. The duration and impact of the global
pandemic is uncertain at this time. However, the Company entered
its fourth fiscal quarter in a favourable position with Order
Backlog of $939 million and a strong
balance sheet featuring cash of $117.7
million together with $647.5
million of unutilized multi-purpose credit available as at
December 29, 2019.
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 4,500 people at 23
manufacturing facilities and over 50 offices in North America, Europe, Southeast
Asia and China. The
Company's shares are traded on the Toronto Stock Exchange under the
symbol ATA. Visit the Company's website at
www.atsautomation.com.
Note to Readers:
Non-IFRS Measures:
Order Bookings, Order Backlog, and operating margin are non-IFRS
measures and do not have any standardized meaning prescribed within
IFRS and therefore may not be comparable to similar measures
presented by other companies. Such measures should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Additional
information on non-IFRS measures can be found in the Company's
MD&A on SEDAR or on the Investor's section of the Company's
website.
Forward Looking Statements:
This news release contains certain statements that 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 are 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. Forward-looking statements relate to, among other
things, the announcement of a new Order Booking; the anticipated
timeline for program delivery; the expected direct and indirect
impact of certain COVID-19 pandemic related factors on fourth
quarter operating margins and on the Company's operating results in
the first quarter of fiscal 2021; the impact of leveraging
innovative technologies; and a focus on cost-containment measures
and the preservation of liquidity. The risks and uncertainties that
may affect forward-looking statements include, among others: the
progression of COVID-19 and its impacts on the Company's ability to
operate its assets, including the possible shut-down of facilities
due to COVID-19 outbreaks; the severity and duration of the
COVID-19 pandemic in all jurisdictions where the Company conducts
its business; the nature and extent of government imposed
restrictions on travel and business activities and the nature,
extent, and applicability of government assistance programs, in
both cases related to the COVID-19 pandemic, as applicable in all
jurisdictions where the Company conducts its business; the impact
of the COVID-19 pandemic on the Company's employees, customers, and
suppliers; the impact of the global economy and general market
performance; that the timing of completion of the enterprise
program is other than as expected due to various reasons, including
schedule changes or COVID-19 pandemic related factors; the customer
exercising any right to terminate the program in whole or in part
prior to its completion, thereby preventing ATS from realizing on
the full benefit of the program; the degree to which the Company is
successful with its initiatives related to cost containment and
preservation of liquidity; the degree to which the Company is
successful in selling and deploying its remote service offerings;
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; management
effectiveness and disaster response preparedness, including
business continuity plans in response to COVID-19, political,
labour or supplier disruptions; risks relating to legal proceedings
to which ATS is or may become a party; exposure to product and/or
professional liability claims; and other risks detailed from time
to time in ATS' filings with Canadian provincial securities
regulators. There can be no assurance that forward-looking
statements or information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, you should not place
undue reliance on the forward-looking statements or information
contained herein which speak only as of the date they are made.
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.