ATS(US:ATS)2024-08-08 12:14Financial Performance - Total revenues for the three months ended June 30, 2024, were $694,270, a decrease of 7.9% compared to $753,649 for the same period in 2023[5] - Net income for the same period was $35,327, down 26.0% from $47,724 in the prior year[5] - Earnings per share attributable to shareholders decreased to $0.36 from $0.50, reflecting a decline of 28.0%[5] - Comprehensive income for the three months ended June 30, 2024, was $46,028, compared to $33,167 in the same period last year, reflecting a growth of 38.6%[7] - Revenue from construction contracts was $394,993, down 22.4% from $508,868 in the prior year[75] - Life Sciences market revenue increased to $328,421, up 15.2% from $284,970 in the previous year[76] - The company reported net finance costs of $19,518 for the three months ended June 30, 2024, compared to $16,946 in the same period last year[79] Assets and Liabilities - Total assets increased to $4,242,282 as of June 30, 2024, compared to $4,088,799 as of March 31, 2024, representing a growth of 3.8%[3] - Total liabilities increased to $2,554,727, compared to $2,404,852, marking a rise of 6.2%[3] - Long-term debt rose to $1,289,758 from $1,171,796, an increase of 10.0%[3] - Trade receivables as of June 30, 2024, were $538,689, an increase from $437,329 as of March 31, 2024[76] - Contract assets rose to $726,427 from $704,703, while contract liabilities increased to $365,359 from $312,204[76] Cash Flow and Equity - Cash and cash equivalents rose to $185,086 from $170,177, an increase of 8.3%[3] - Cash flows used in operating activities for the three months ended July 2, 2023, were $(107,796), while cash flows provided by financing activities were $92,375[14] - The company reported total equity of $1,529,454 as of July 2, 2023, up from $1,130,583 as of March 31, 2023[11] - Cash and cash equivalents at the end of the period were $123,520, down from $159,867 at the beginning of the period[14] Shareholder Activities - The company repurchased 1,020,887 common shares for $44,983 during the three months ended June 30, 2024, with a total of 7,023,631 shares remaining available for repurchase under the NCIB program[49] - The authorized share capital consists of an unlimited number of common shares, and the company intends to purchase up to 8,044,818 common shares under the normal course issuer bid (NCIB) by December 14, 2024[48] - The total number of common shares outstanding decreased from 98,219,496 on March 31, 2024, to 97,200,364 on June 30, 2024, reflecting a repurchase of shares[50] - The weighted average number of common shares outstanding increased to 98,119,205 from 94,397,253 year-over-year[82] Expenses and Costs - The company recognized an income tax expense of $12,748 for the three months ended June 30, 2024, compared to $14,380 for the same period in the previous year[54] - The company recognized a tax expense related to Pillar Two income taxes of $513 during the three months ended June 30, 2024[54] - The company recognized an expense of $837 related to short-term and low-value leases in the cost of revenues for the three months ended June 30, 2024, down from $1,001 in the same period last year[31] - The company reported a total stock-based compensation expense of $3,723 for the three months ended June 30, 2024, down from $9,990 in the same period last year[67] Acquisitions and Future Plans - The company acquired Paxiom Group for cash consideration of $140,000, with the transaction closing on July 24, 2024[24] - The company expects to close the acquisition of Heidolph Instruments in the third calendar quarter of 2024, subject to closing conditions[25] - The company plans to reduce its cost structure in response to a slowdown in the North American EV market, with estimated costs of $15 million to $20 million expected to commence in the second quarter of fiscal 2025[38] Currency and Risk Management - The company reported a currency translation adjustment of $11,393, compared to a loss of $20,227 in the prior year[7] - The company recorded risk management losses of $1,310 on foreign currency risk management forward contracts for the three months ended June 30, 2024, compared to gains of $6,636 in the prior year[36] Working Capital - Total change in non-cash working capital was a decrease of $106,874 for the three months ended June 30, 2024, compared to a decrease of $184,454 in the prior year[84] - The company reported a change in non-cash operating working capital of $(184,454) for the three months ended July 2, 2023[14] - As of June 30, 2024, the total balance of right-of-use assets increased to $108,044, up from $105,661 as of March 31, 2024, reflecting an addition of $9,929 during the quarter[29] - Lease liabilities rose to $114,309 as of June 30, 2024, compared to $111,379 at the end of March 2024, with additions of $9,929 and interest of $1,420 recorded[30] Minimum Purchase Obligations - The minimum purchase obligations as of June 30, 2024, totaled $350,163, with $337,299 due within one year[68]