ATS(US:ATS)2025-02-05 12:59Financial Performance - Total revenues for the three months ended December 29, 2024, were $651,993, a decrease of 13.3% compared to $752,052 for the same period in 2023[3] - Net income for the three months ended December 29, 2024, was $6,505, down 86.2% from $47,182 in the same period last year[3] - Earnings per share attributable to shareholders for the three months ended December 29, 2024, were $0.07, compared to $0.48 for the same period in 2023[3] - Comprehensive income for the three months ended December 29, 2024, was $65,008, compared to $45,049 for the same period in 2023, an increase of 44.4%[5] - The company reported an income before income taxes of $10,642 for the three months ended December 29, 2024, compared to $60,994 for the same period in 2023[70] Assets and Liabilities - Total assets increased to $4,666,313 as of December 29, 2024, up from $4,088,799 as of March 31, 2024, representing a growth of 14.1%[2] - Total liabilities increased to $2,910,273 as of December 29, 2024, from $2,404,852 as of March 31, 2024, reflecting a rise of 21%[2] - Cash and cash equivalents rose to $263,152 as of December 29, 2024, compared to $170,177 as of March 31, 2024, an increase of 54.6%[2] - Trade receivables as of December 29, 2024, were $663,146,000, an increase of 51.7% from $437,329,000 as of March 31, 2024[91] - Contract assets decreased to $619,510,000 as of December 29, 2024, from $704,703,000 as of March 31, 2024[91] - Net contract balances increased to $853,614,000 as of December 29, 2024, compared to $778,772,000 as of March 31, 2024[91] Operating Costs and Expenses - The company reported operating costs of $454,061 for the three months ended December 29, 2024, down 15.7% from $538,435 in the same period last year[3] - The company incurred restructuring costs of $3,360 for the three months ended December 29, 2024, compared to $16,228 in the same period last year[3] - Interest expense for the three months ended December 29, 2024, was $25,255,000, an increase of 49.5% from $16,898,000 in 2023[94] - The company recorded risk management losses of $13,310 for the three months ended December 29, 2024, compared to gains of $1,487 in the same period of the previous year[49] Equity and Shareholder Information - Total equity as of December 31, 2023, reached CAD 1,618,266 thousand, up from CAD 1,130,583 thousand as of March 31, 2023, indicating a growth of approximately 43%[7] - The Company has a normal course issuer bid allowing for the repurchase of up to 8,259,180 common shares until December 15, 2025[65] - As of December 29, 2024, the Company has repurchased 1,020,887 common shares for $44,983 under the previous NCIB program[66] - The weighted average number of common shares outstanding for the three months ended December 29, 2024, was 97,926,990, a decrease from 98,906,456 in 2023[97] Acquisitions - The acquisition of Paxiom Group was completed for a total purchase price of CAD 146,438 thousand, enhancing the company's capabilities in packaging solutions[22] - The total purchase price for the acquisition of Paxiom was $146,438, with a net identifiable asset value of $66,901 and residual goodwill of $79,537[24] - Paxiom contributed approximately $22,323 in revenue and incurred a net loss of $1,235 from the acquisition date to December 29, 2024[26][27] - The total purchase price for the acquisition of Heidolph was $45,064, with net identifiable assets valued at $42,722 and residual goodwill of $2,342[28][29] - Heidolph contributed approximately $23,335 in revenue and incurred a net loss of $1,066 from the acquisition date to December 29, 2024[31] Cash Flow and Financing - Cash flows provided by operating activities for the nine months ended December 31, 2023, were CAD 11,205 thousand, a significant decrease from CAD 110,508 thousand in the previous year[9] - The company recorded a significant cash outflow of CAD 269,274 thousand in investing activities for the nine months ended December 31, 2023, compared to CAD 315,454 thousand in the previous year[9] - The Company issued $600,000 in CAD Senior Notes at an interest rate of 6.50% per annum, with the latest issuance completed on December 19, 2024[61] - The Company has a total of $1,611,232 in long-term debt as of December 29, 2024, which includes $519,335 from the Credit Facility and $1,103,380 from Senior Notes[64] Taxation - The effective income tax rate increased to 29% for the nine months ended December 29, 2024, compared to 24% for the same period in 2023[70] - The company recognized income tax expense related to Pillar Two income taxes of CAD 1,579 for the nine months ended December 29, 2024, compared to CAD 0 in the same period of 2023[71] Stock Options and Compensation - The number of stock options outstanding increased to 1,035,380 with a weighted average exercise price of CAD 36.05 as of December 29, 2024, compared to 865,386 options at CAD 33.43 in the prior year[74] - The company granted 241,327 time-vesting stock options during the nine months ended December 29, 2024, compared to 176,112 in the same period of 2023[73] - The company incurred stock-based compensation expenses of CAD 9,907 thousand for the nine months ended December 31, 2023, compared to CAD 8,146 thousand in the previous year[9] Market Conditions and Risks - The company expects to continue monitoring the potential impact of tariffs on its financial condition and operations, which remains uncertain[21] - The company recorded unrealized losses of $5,016 on foreign currency risk management forward contracts during the three months ended December 29, 2024[49]