INCORPORATION BY REFERENCE
Exhibits 99.1 and 99.2 of this form 6-K are incorporated by reference as additional exhibits to the registrant's Registration Statements on Form F-10 (File No. 333-272138) and Form S-8 (File No. 333-273050).
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Management's Discussion and Analysis of the registrant for the quarter ended October 1, 2023 |
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Financial Statements of the registrant for the quarter ended October 1, 2023 |
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Press Release dated November 8, 2023 |
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ATS CORPORATION
(Registrant)
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Date: November 8, 2023 |
By: | /s/ Stewart McCuaig | ||||||||||||||||||
Name: Stewart McCuaig | ||||||||||||||||||||
Title: Vice President, General Counsel |
Appendix 99.1 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Variance |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
Variance |
|||||||||||||||||||||||||||
Revenues | $ | 735.7 | $ | 588.9 | 24.9% | $ | 1,489.4 | $ | 1,199.5 | 24.2% | ||||||||||||||||||||||
Net income |
$ | 50.7 | $ | 29.5 | 71.9% | $ | 98.5 | $ | 68.9 | 43.0% | ||||||||||||||||||||||
Adjusted earnings from operations1, 2 |
$ | 98.3 | $ | 76.1 | 29.2% | $ | 200.4 | $ | 155.3 | 29.0% | ||||||||||||||||||||||
Adjusted earnings from operations margin1, 2 |
13.4% | 12.9% | 44bps | 13.5% | 12.9% | 51bps | ||||||||||||||||||||||||||
Adjusted EBITDA1, 2 |
$ | 116.2 | $ | 89.8 | 29.4% | $ | 235.4 | $ | 182.3 | 29.1% | ||||||||||||||||||||||
Adjusted EBITDA margin1, 2 |
15.8% | 15.2% | 55bps | 15.8% | 15.2% | 61bps | ||||||||||||||||||||||||||
Basic earnings per share |
$ | 0.51 | $ | 0.32 | 59.4% | $ | 1.02 | $ | 0.75 | 36.0% | ||||||||||||||||||||||
Adjusted basic earnings per share1, 2 |
$ | 0.63 | $ | 0.51 | 23.5% | $ | 1.32 | $ | 1.08 | 22.2% | ||||||||||||||||||||||
Order Bookings1 |
$ | 742.0 | $ | 804.0 | (7.7)% | $ | 1,432.0 | $ | 1,539.0 | (7.0)% |
As At | October 1 2023 |
October 2 2022 |
Variance |
||||||||||||||
Order Backlog1 |
$ | 2,016 | $ | 1,793 | 12.4% |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
||||||||||||||||||||
Opening Order Backlog |
$ | 2,023 | $ | 1,555 | $ | 2,153 | $ | 1,438 | |||||||||||||||
Revenues |
(736) | (589) | (1,489) | (1,200) | |||||||||||||||||||
Order Bookings |
742 | 804 | 1,432 | 1,539 | |||||||||||||||||||
Order Backlog adjustments1 |
(13) | 23 | (80) | 16 | |||||||||||||||||||
Total |
$ | 2,016 | $ | 1,793 | $ | 2,016 | $ | 1,793 |
As at | October 1, 2023 |
October 2, 2022 |
|||||||||
Life Sciences | $ | 857 | $ | 782 | |||||||
Transportation |
736 | 614 | |||||||||
Food & Beverage | 162 | 162 | |||||||||
Consumer Products | 152 | 167 | |||||||||
Energy | 109 | 68 | |||||||||
Total |
$ | 2,016 | $ | 1,793 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
||||||||||||||||||||
Revenues |
$ | 735.7 | $ | 588.9 | $ | 1,489.4 | $ | 1,199.5 | |||||||||||||||
Cost of revenues |
527.3 | 427.5 | 1,068.2 | 868.3 | |||||||||||||||||||
Selling, general and administrative | 121.9 | 101.8 | 245.6 | 214.0 | |||||||||||||||||||
Restructuring costs | — | 1.3 | — | 1.3 | |||||||||||||||||||
Stock-based compensation | 3.5 | 5.3 | 13.5 | 1.3 | |||||||||||||||||||
Earnings from operations | $ | 83.0 | $ | 53.0 | $ | 162.1 | $ | 114.6 | |||||||||||||||
Net finance costs | $ | 15.5 | $ | 13.4 | $ | 32.4 | $ | 24.2 | |||||||||||||||
Provision for income taxes | 16.8 | 10.1 | 31.2 | 21.5 | |||||||||||||||||||
Net income | $ | 50.7 | $ | 29.5 | $ | 98.5 | $ | 68.9 | |||||||||||||||
Basic earnings per share | $ | 0.51 | $ | 0.32 | $ | 1.02 | $ | 0.75 | |||||||||||||||
Non-IFRS Financial Measures1 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
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Adjusted earnings from operations2 |
$ | 98.3 | $ | 76.1 | $ | 200.4 | $ | 155.3 | |||||||||||||||
EBITDA | $ | 117.0 | $ | 83.1 | $ | 231.8 | $ | 178.3 | |||||||||||||||
Adjusted EBITDA2 |
$ | 116.2 | $ | 89.8 | $ | 235.4 | $ | 182.3 | |||||||||||||||
Adjusted basic earnings per share2 |
$ | 0.63 | $ | 0.51 | $ | 1.32 | $ | 1.08 |
Revenues by type | Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
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Revenues from construction contracts |
$ | 479.7 | $ | 362.4 | $ | 988.6 | $ | 737.5 | |||||||||||||||
Services rendered |
149.1 | 116.5 | 291.4 | 230.6 | |||||||||||||||||||
Sale of goods | 106.9 | 110.0 | 209.4 | 231.4 | |||||||||||||||||||
Total revenues | $ | 735.7 | $ | 588.9 | $ | 1,489.4 | $ | 1,199.5 |
Revenues by market | Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
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Life Sciences |
$ | 291.5 | $ | 284.2 | $ | 576.4 | $ | 581.2 | |||||||||||||||
Transportation |
252.2 | 120.6 | 470.7 | 217.5 | |||||||||||||||||||
Food & Beverage |
109.8 | 75.0 | 240.5 | 183.8 | |||||||||||||||||||
Consumer Products |
64.5 | 77.3 | 148.2 | 153.0 | |||||||||||||||||||
Energy |
17.7 | 31.8 | 53.6 | 64.0 | |||||||||||||||||||
Total revenues | $ | 735.7 | $ | 588.9 | $ | 1,489.4 | $ | 1,199.5 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
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Earnings from operations |
$ | 83.0 | $ | 53.0 | $ | 162.1 | $ | 114.6 | |||||||||||||||
Amortization of acquisition-related intangible assets | 16.1 | 16.4 | 34.7 | 36.7 | |||||||||||||||||||
Acquisition-related transaction costs | 1.2 | 0.5 | 1.3 | 0.9 | |||||||||||||||||||
Acquisition-related inventory fair value charges | — | 3.9 | — | 9.1 | |||||||||||||||||||
Restructuring charges | — | 1.3 | — | 1.3 | |||||||||||||||||||
Mark to market portion of stock-based compensation | (2.0) | 1.0 | 2.3 | (7.3) | |||||||||||||||||||
Adjusted earnings from operations1, 2 |
$ | 98.3 | $ | 76.1 | $ | 200.4 | $ | 155.3 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
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Earnings from operations |
$ | 83.0 | $ | 53.0 | $ | 162.1 | $ | 114.6 | |||||||||||||||
Depreciation and amortization | 34.0 | 30.1 | 69.7 | 63.7 | |||||||||||||||||||
EBITDA1 |
$ | 117.0 | $ | 83.1 | $ | 231.8 | $ | 178.3 | |||||||||||||||
Restructuring charges | — | 1.3 | — | 1.3 | |||||||||||||||||||
Acquisition-related transaction costs | 1.2 | 0.5 | 1.3 | 0.9 | |||||||||||||||||||
Acquisition-related inventory fair value charges | — | 3.9 | — | 9.1 | |||||||||||||||||||
Mark to market portion of stock-based compensation2 |
(2.0) | 1.0 | 2.3 | (7.3) | |||||||||||||||||||
Adjusted EBITDA1, 2 |
$ | 116.2 | $ | 89.8 | $ | 235.4 | $ | 182.3 |
As at | October 1, 2023 |
March 31, 2023 |
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Cash and cash equivalents | $ | 187.4 | $ | 159.9 | |||||||
Debt-to-equity ratio1 |
0.74:1 | 1.18:1 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
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Cash, beginning of period | $ | 123.5 | $ | 139.9 | $ | 159.9 | $ | 135.3 | |||||||||||||||
Total cash provided by (used in): |
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Operating activities | 8.5 | (38.0) | (99.3) | (69.8) | |||||||||||||||||||
Investing activities | (25.9) | (8.8) | (46.2) | 1.0 | |||||||||||||||||||
Financing activities | 80.9 | 2.0 | 173.3 | 30.0 | |||||||||||||||||||
Net foreign exchange difference | 0.4 | 0.1 | (0.3) | (1.3) | |||||||||||||||||||
Cash, end of period | $ | 187.4 | $ | 95.2 | $ | 187.4 | $ | 95.2 |
Payments Due by Period | |||||||||||||||||||||||||||||||||||||||||
Total | <1 Year | 1-2 Years | 2-3 Years | 3-4 Years | 4-5 Years | >5 Years | |||||||||||||||||||||||||||||||||||
Bank indebtedness | $ | 3.0 | $ | 3.0 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Long-term debt obligations1 |
1,126.1 | 19.9 | 320.0 | 19.9 | 260.0 | 495.2 | 11.1 | ||||||||||||||||||||||||||||||||||
Lease liability obligations1 |
123.0 | 23.2 | 24.0 | 18.9 | 13.7 | 8.9 | 34.3 | ||||||||||||||||||||||||||||||||||
Purchase obligations | 435.2 | 415.7 | 17.4 | 2.0 | 0.1 | — | — | ||||||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | 596.5 | 596.5 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total | $ | 2,283.8 | $ | 1,058.3 | $ | 361.4 | $ | 40.8 | $ | 273.8 | $ | 504.1 | $ | 45.4 |
Three Months Ended |
Six Months Ended |
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October 1 2023 |
October 2 2022 |
% change | October 1 2023 |
October 2 2022 |
% change | |||||||||||||||
U.S. dollar | 1.343 | 1.307 | 2.8% | 1.343 | 1.292 | 3.9 | % | |||||||||||||
Euro | 1.459 | 1.314 | 11.0% | 1.460 | 1.336 | 9.3 | % |
Q2 2024 |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Q4 2022 |
Q3 2022 |
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Revenues | $ | 735.7 | $ | 753.6 | $ | 730.8 | $ | 647.0 | $ | 588.9 | $ | 610.6 | $ | 603.2 | $ | 546.8 | |||||||||||||||||||||||||||||||
Earnings from operations |
$ | 83.0 | $ | 79.0 | $ | 51.9 | $ | 56.0 | $ | 53.0 | $ | 61.6 | $ | 59.8 | $ | 38.2 | |||||||||||||||||||||||||||||||
Adjusted earnings from operations1, 4 |
$ | 98.3 | $ | 102.1 | $ | 101.9 | $ | 86.2 | $ | 76.1 | $ | 79.2 | $ | 81.6 | $ | 77.7 | |||||||||||||||||||||||||||||||
Net income |
$ | 50.7 | $ | 47.7 | $ | 29.6 | $ | 29.2 | $ | 29.5 | $ | 39.4 | $ | 39.9 | $ | 23.3 | |||||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.51 | $ | 0.50 | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.43 | $ | 0.44 | $ | 0.26 | |||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 0.51 | $ | 0.50 | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.42 | $ | 0.44 | $ | 0.26 | |||||||||||||||||||||||||||||||
Adjusted basic earnings per share1, 4 |
$ | 0.63 | $ | 0.69 | $ | 0.73 | $ | 0.56 | $ | 0.51 | $ | 0.57 | $ | 0.60 | $ | 0.58 | |||||||||||||||||||||||||||||||
Order Bookings2 |
$ | 742.0 | $ | 690.0 | $ | 737.0 | $ | 979.0 | $ | 804.0 | $ | 736.0 | $ | 638.0 | $ | 671.0 | |||||||||||||||||||||||||||||||
Order Backlog3 |
$ | 2,016.0 | $ | 2,023.0 | $ | 2,153.0 | $ | 2,143.0 | $ | 1,793.0 | $ | 1,555.0 | $ | 1,438.0 | $ | 1,475.0 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
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Adjusted EBITDA1 |
$ | 116.2 | $ | 89.8 | $ | 235.4 | $ | 182.3 | |||||||||||||||
Less: restructuring charges | — | 1.3 | — | 1.3 | |||||||||||||||||||
Less: acquisition-related transaction costs | 1.2 | 0.5 | 1.3 | 0.9 | |||||||||||||||||||
Less: acquisition-related inventory fair value charges | – | 3.9 | — | 9.1 | |||||||||||||||||||
Less: mark to market portion of stock-based compensation | (2.0) | 1.0 | 2.3 | (7.3) | |||||||||||||||||||
EBITDA | $ | 117.0 | $ | 83.1 | $ | 231.8 | $ | 178.3 | |||||||||||||||
Less: depreciation and amortization expense | 34.0 | 30.1 | 69.7 | 63.7 | |||||||||||||||||||
Earnings from operations |
$ | 83.0 | $ | 53.0 | $ | 162.1 | $ | 114.6 | |||||||||||||||
Less: net finance costs | 15.5 | 13.4 | 32.4 | 24.2 | |||||||||||||||||||
Less: provision for income taxes | 16.8 | 10.1 | 31.2 | 21.5 | |||||||||||||||||||
Net income |
$ | 50.7 | $ | 29.5 | $ | 98.5 | $ | 68.9 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
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Earnings from operations |
Finance costs |
Provision for income taxes | Net income |
Basic EPS |
Earnings from operations |
Finance costs |
Provision for income taxes | Net income |
Basic EPS |
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Reported (IFRS) |
$ | 83.0 | $ | (15.5) | $ | (16.8) | $ | 50.7 | $ | 0.51 | $ | 53.0 | $ | (13.4) | $ | (10.1) | $ | 29.5 | $ | 0.32 | |||||||||||||||||||||||||||||||||||||||
Amortization of acquisition- related intangibles |
16.1 | — | — | 16.1 | 0.17 | 16.4 | — | — | 16.4 | 0.18 | |||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring charges |
— | — | — | — | — | 1.3 | — | — | 1.3 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related inventory fair value charges |
— | — | — | — | — | 3.9 | — | — | 3.9 | 0.04 | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related transaction costs |
1.2 | — | — | 1.2 | 0.01 | 0.5 | — | — | 0.5 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mark to market portion of stock-based compensation |
(2.0) | — | — | (2.0) | (0.02) | 1.0 | — | — | 1.0 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||
Tax effect adjustments1
|
— | — | (3.8) | (3.8) | (0.04) | — | — | (5.9) | (5.9) | (0.06) | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted (non-IFRS)2 |
$ | 98.3 | $ | 62.2 | $ | 0.63 | $ | 76.1 | $ | 46.7 | $ | 0.51 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
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Earnings from operations |
Finance costs |
Provision for income taxes | Net income |
Basic EPS |
Earnings from Operations |
Finance costs |
Provision for income taxes | Net Income |
Basic EPS |
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Reported (IFRS) |
$ | 162.1 | $ | (32.4) | $ | (31.2) | $ | 98.5 | $ | 1.02 | $ | 114.6 | $ | (24.2) | $ | (21.5) | $ | 68.9 | $ | 0.75 | |||||||||||||||||||||||||||||||||||||||
Amortization of acquisition- related intangibles |
34.7 | — | — | 34.7 | 0.36 | 36.7 | — | — | 36.7 | 0.40 | |||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring charges |
— | — | — | — | — | 1.3 | — | — | 1.3 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related fair value inventory charges |
— | — | — | — | — | 9.1 | — | — | 9.1 | 0.10 | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related transaction costs |
1.3 | — | — | 1.3 | 0.01 | 0.9 | — | — | 0.9 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mark to market portion of stock-based compensation |
2.3 | — | — | 2.3 | 0.03 | (7.3) | — | — | (7.3) | (0.08) | |||||||||||||||||||||||||||||||||||||||||||||||||
Tax effect of the above
adjustments1
|
— | — | (9.6) | (9.6) | (0.10) | — | — | (10.1) | (10.1) | (0.11) | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted (non-IFRS)2 |
$ | 200.4 | $ | 127.2 | $ | 1.32 | $ | 155.3 | $ | 99.5 | $ | 1.08 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
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Organic revenue | $ | 685.5 | $ | 541.8 | $ | 1,390.3 | $ | 1,080.1 | |||||||||||||||
Revenues of acquired companies | 14.5 | 68.6 | 29.8 | 155.9 | |||||||||||||||||||
Impact of foreign exchange rate changes | 35.7 | (21.5) | 69.3 | (36.5) | |||||||||||||||||||
Total revenue | $ | 735.7 | $ | 588.9 | $ | 1,489.4 | $ | 1,199.5 | |||||||||||||||
Organic revenue growth | 16.4% | 15.9% |
As at | October 1 2023 |
March 31 2023 |
|||||||||
Accounts receivable | $ | 512.3 | $ | 399.7 | |||||||
Income tax receivable | 18.5 | 15.2 | |||||||||
Contract assets | 591.6 | 527.0 | |||||||||
Inventories | 280.1 | 256.9 | |||||||||
Deposits, prepaids and other assets | 91.5 | 93.4 | |||||||||
Accounts payable and accrued liabilities | (596.5) | (647.6) | |||||||||
Income tax payable | (39.2) | (38.9) | |||||||||
Contract liabilities | (286.7) | (296.6) | |||||||||
Provisions | (23.7) | (30.6) | |||||||||
Non-cash working capital | $ | 547.9 | $ | 278.5 | |||||||
Trailing six-month revenues annualized | $ | 2,978.6 | $ | 2,755.6 | |||||||
Working capital % | 18.4% | 10.1% |
As at | October 1 2023 |
March 31 2023 |
|||||||||
Cash and cash equivalents | $ | 187.4 | $ | 159.9 | |||||||
Bank indebtedness | (3.0) | (5.8) | |||||||||
Current portion of lease liabilities | (23.7) | (24.0) | |||||||||
Current portion of long-term debt | (0.2) | (0.1) | |||||||||
Long-term lease liabilities | (81.9) | (73.3) | |||||||||
Long-term debt | (1,008.4) | (1,155.7) | |||||||||
Net Debt | $ | (929.8) | $ | (1,099.0) | |||||||
Adjusted EBITDA (TTM)1 |
$ | 454.3 | $ | 401.2 | |||||||
Net Debt to Adjusted EBITDA1 |
2.0x | 2.7x |
(in millions of dollars) | Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
|||||||||||||||||||
Cash flows provided by (used in) operating activities |
$ | 8.5 | $ | (38.0) | $ | (99.3) | $ | (69.8) | |||||||||||||||
Acquisition of property, plant and equipment | (15.9) | (6.6) | (34.5) | (14.1) | |||||||||||||||||||
Acquisition of intangible assets | (5.9) | (2.4) | (10.3) | (7.2) | |||||||||||||||||||
Free cash flow | $ | (13.3) | $ | (47.0) | $ | (144.1) | $ | (91.1) |
(in millions of dollars) | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | |||||||||||||||||||||||||||||||||||||||
Total stock-based compensation expense | $ | 3.5 | $ | 10.0 | $ | 19.3 | $ | 9.9 | $ | 5.3 | $ | (4.0) | $ | 0.8 | $ | 12.7 | |||||||||||||||||||||||||||||||
Less: Mark to market portion of stock-based compensation |
(2.0) | 4.4 | 15.1 | 5.6 | 1.0 | (8.3) | (4.2) | 7.3 | |||||||||||||||||||||||||||||||||||||||
Base stock-based compensation expense | $ | 5.5 | $ | 5.6 | $ | 4.2 | $ | 4.3 | $ | 4.3 | $ | 4.3 | $ | 5.0 | $ | 5.4 |
(in millions of dollars) | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | ||||||||||||||||||||||||
Previously reported: adjusted earnings from operations | $ | 80.6 | $ | 75.1 | $ | 87.5 | $ | 85.8 | $ | 70.4 | |||||||||||||||||||
Mark to market portion of stock-based compensation | 5.6 | 1.0 | (8.3) | (4.2) | 7.3 | ||||||||||||||||||||||||
Revised: adjusted earnings from operations | $ | 86.2 | $ | 76.1 | $ | 79.2 | $ | 81.6 | $ | 77.7 | |||||||||||||||||||
Previously reported: adjusted EBITDA | $ | 95.1 | $ | 88.8 | $ | 100.8 | $ | 99.1 | $ | 83.5 | |||||||||||||||||||
Mark to market portion of stock-based compensation | 5.6 | 1.0 | (8.3) | (4.2) | 7.3 | ||||||||||||||||||||||||
Revised: adjusted EBITDA | $ | 100.7 | $ | 89.8 | $ | 92.5 | $ | 94.9 | $ | 90.8 | |||||||||||||||||||
Previously reported: adjusted basic earnings per share | $ | 0.52 | $ | 0.50 | $ | 0.64 | $ | 0.64 | $ | 0.52 | |||||||||||||||||||
Mark to market portion of stock-based compensation | 0.06 | 0.01 | (0.09) | (0.05) | 0.08 | ||||||||||||||||||||||||
Tax impact of mark to market portion of stock-based compensation |
(0.02) | — | 0.02 | 0.01 | (0.02) | ||||||||||||||||||||||||
Revised: adjusted basic earnings per share | $ | 0.56 | $ | 0.51 | $ | 0.57 | $ | 0.60 | $ | 0.58 | |||||||||||||||||||
Appendix 99.2 |
As at | Note | October 1 2023 |
March 31 2023 |
||||||||||||||
ASSETS | 11 |
||||||||||||||||
Current assets |
|||||||||||||||||
Cash and cash equivalents | $ | 187,382 | $ | 159,867 | |||||||||||||
Accounts receivable | 17 |
512,263 | 399,741 | ||||||||||||||
Income tax receivable | 18,465 | 15,160 | |||||||||||||||
Contract assets | 17 |
591,585 | 526,990 | ||||||||||||||
Inventories | 5 |
280,106 | 256,866 | ||||||||||||||
Deposits, prepaids and other assets |
6 |
91,467 | 93,350 | ||||||||||||||
1,681,268 | 1,451,974 | ||||||||||||||||
Non-current assets | |||||||||||||||||
Property, plant and equipment |
276,032 | 263,119 | |||||||||||||||
Right-of-use assets | 7 |
102,736 | 94,212 | ||||||||||||||
Other assets | 8 |
22,123 | 16,679 | ||||||||||||||
Goodwill | 1,113,484 | 1,118,262 | |||||||||||||||
Intangible assets | 566,677 | 593,210 | |||||||||||||||
Deferred income tax assets | 13 | 4,627 | 6,337 | ||||||||||||||
2,085,679 | 2,091,819 | ||||||||||||||||
Total assets | $ | 3,766,947 | $ | 3,543,793 | |||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||
Current liabilities | |||||||||||||||||
Bank indebtedness |
11 |
$ | 2,951 | $ | 5,824 | ||||||||||||
Accounts payable and accrued liabilities | 596,528 | 647,629 | |||||||||||||||
Income tax payable | 39,226 | 38,904 | |||||||||||||||
Contract liabilities | 17 |
286,652 | 296,555 | ||||||||||||||
Provisions | 10 |
23,675 | 30,600 | ||||||||||||||
Current portion of lease liabilities | 7 |
23,703 | 23,994 | ||||||||||||||
Current portion of long-term debt | 11 |
167 | 65 | ||||||||||||||
972,902 | 1,043,571 | ||||||||||||||||
Non-current liabilities | |||||||||||||||||
Employee benefits |
24,382 | 25,486 | |||||||||||||||
Long-term lease liabilities | 7 |
81,953 | 73,255 | ||||||||||||||
Long-term debt | 11 |
1,008,437 | 1,155,721 | ||||||||||||||
Deferred income tax liabilities | 13 |
99,758 | 104,459 | ||||||||||||||
Other long-term liabilities | 8 |
10,129 | 10,718 | ||||||||||||||
1,224,659 | 1,369,639 | ||||||||||||||||
Total liabilities | $ | 2,197,561 | $ | 2,413,210 | |||||||||||||
Commitments and contingencies |
11, 15 |
||||||||||||||||
EQUITY | |||||||||||||||||
Share capital |
12 |
$ | 864,661 | $ | 520,633 | ||||||||||||
Contributed surplus | 20,234 | 15,468 | |||||||||||||||
Accumulated other comprehensive income |
52,056 | 60,040 | |||||||||||||||
Retained earnings | 629,406 | 530,707 | |||||||||||||||
Equity attributable to shareholders | 1,566,357 | 1,126,848 | |||||||||||||||
Non-controlling interests | 3,029 | 3,735 | |||||||||||||||
Total equity | 1,569,386 | 1,130,583 | |||||||||||||||
Total liabilities and equity | $ | 3,766,947 | $ | 3,543,793 |
Three months ended | Six months ended |
||||||||||||||||||||||||||||||||||
Note |
October 1 2023 |
October 2 2022 |
October 1 2023 |
October 2 2022 |
|||||||||||||||||||||||||||||||
Revenues |
16, 17 |
$ | 735,716 | $ | 588,954 | $ | 1,489,365 | $ | 1,199,545 | ||||||||||||||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||||||||||||
Cost of revenues |
527,298 | 427,476 | 1,068,223 | 868,329 | |||||||||||||||||||||||||||||||
Selling, general and administrative | 121,940 | 101,849 | 245,624 | 214,021 | |||||||||||||||||||||||||||||||
Restructuring costs | 10 |
— | 1,271 | — | 1,271 | ||||||||||||||||||||||||||||||
Stock-based compensation | 14 |
3,455 | 5,307 | 13,445 | 1,320 | ||||||||||||||||||||||||||||||
Earnings from operations |
83,023 | 53,051 | 162,073 | 114,604 | |||||||||||||||||||||||||||||||
Net finance costs | 18 |
15,462 | 13,442 | 32,408 | 24,167 | ||||||||||||||||||||||||||||||
Income before income taxes |
67,561 | 39,609 | 129,665 | 90,437 | |||||||||||||||||||||||||||||||
Income tax expense |
13 |
16,818 | 10,079 | 31,198 | 21,514 | ||||||||||||||||||||||||||||||
Net income |
$ | 50,743 | $ | 29,530 | $ | 98,467 | $ | 68,923 | |||||||||||||||||||||||||||
Attributable to | |||||||||||||||||||||||||||||||||||
Shareholders |
|
$ | 50,665 | $ | 29,506 | $ | 98,228 | $ | 68,710 | ||||||||||||||||||||||||||
Non-controlling interests | 78 | 24 | 239 | 213 | |||||||||||||||||||||||||||||||
$ | 50,743 | $ | 29,530 | $ | 98,467 | $ | 68,923 | ||||||||||||||||||||||||||||
Earnings per share attributable to shareholders |
|||||||||||||||||||||||||||||||||||
Basic | 19 |
$ | 0.51 | $ | 0.32 | $ | 1.02 | $ | 0.75 | ||||||||||||||||||||||||||
Diluted |
19 |
$ | 0.51 | $ | 0.32 | $ | 1.01 | $ | 0.75 |
Three months ended | Six months ended |
|||||||||||||||||||||||||
October 1 2023 |
October 2 2022 |
October 1 2023 |
October 2 2022 |
|||||||||||||||||||||||
Net income |
$ | 50,743 | $ | 29,530 | $ | 98,467 | $ | 68,923 | ||||||||||||||||||
Other comprehensive income (loss): |
||||||||||||||||||||||||||
Items to be reclassified subsequently to net income: |
||||||||||||||||||||||||||
Currency translation adjustment (net of income taxes of $nil) |
5,199 | (4,267) | (15,028) | (28,525) | ||||||||||||||||||||||
Net unrealized gain (loss) on derivative financial instruments designated as cash flow hedges |
(4,443) | (7,274) | 1,141 | (9,696) | ||||||||||||||||||||||
Tax impact | 1,139 | 1,851 | (260) | 2,469 | ||||||||||||||||||||||
Loss (gain) transferred to net income for derivatives designated as cash flow hedges |
(83) | 864 | 2,404 | 44 | ||||||||||||||||||||||
Tax impact | 23 | (219) | (599) | (19) | ||||||||||||||||||||||
Cross-currency interest rate swap adjustment | 5,974 | 10,472 | 1,658 | 23,222 | ||||||||||||||||||||||
Tax impact | (1,493) | (2,617) | (414) | (5,805) | ||||||||||||||||||||||
Variable for fixed interest rate swap adjustment | (11) | — | 3,798 | — | ||||||||||||||||||||||
Tax impact | 2 | — | (950) | — | ||||||||||||||||||||||
Other comprehensive income (loss) |
6,307 | (1,190) | (8,250) | (18,310) | ||||||||||||||||||||||
Comprehensive income |
$ | 57,050 | $ | 28,340 | $ | 90,217 | $ | 50,613 | ||||||||||||||||||
Attributable to |
||||||||||||||||||||||||||
Shareholders | $ | 56,968 | $ | 28,354 | $ | 90,244 | $ | 50,403 | ||||||||||||||||||
Non-controlling interests | 82 | (14) | (27) | 210 | ||||||||||||||||||||||
$ | 57,050 | $ | 28,340 | $ | 90,217 | $ | 50,613 |
Six months ended October 1, 2023 |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Share capital |
Contributed surplus |
Retained earnings
|
Currency translation adjustments | Cash flow hedge reserve |
Total accumulated other comprehensive income |
Non-controlling interests | Total equity | ||||||||||||||||||||||||||||||||||||||||||
Balance, as at March 31, 2023 |
$ | 520,633 | $ | 15,468 | $ | 530,707 | $ | 51,206 | $ | 8,834 | $ | 60,040 | $ | 3,735 | $ | 1,130,583 | ||||||||||||||||||||||||||||||||||
Net income |
— | — | 98,228 | — | — | — | 239 | 98,467 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
— | — | — | (14,762) | 6,778 | (7,984) | (266) | (8,250) | ||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) |
— | — | 98,228 | (14,762) | 6,778 | (7,984) | (27) | 90,217 | ||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest 4 |
— | — | 471 | — | — | — | (679) | (208) | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation |
— | 5,103 | — | — | — | — | — | 5,103 | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 1,516 | (337) | — | — | — | — | — | 1,179 | ||||||||||||||||||||||||||||||||||||||||||
U.S. initial public offering (note 12) |
366,332 | — | — | — | — | — | — | 366,332 | ||||||||||||||||||||||||||||||||||||||||||
Common shares held in trust (note 12) |
(23,820) | — | — | — | — | — | — | (23,820) | ||||||||||||||||||||||||||||||||||||||||||
Balance, as at October 1, 2023
|
$ | 864,661 | $ | 20,234 | $ | 629,406 | $ | 36,444 | $ | 15,612 | $ | 52,056 | $ | 3,029 | $ | 1,569,386 |
Six months ended October 2, 2022 |
||||||||||||||||||||||||||||||||||||||||||||||||||
Share capital | Contributed surplus | Retained earnings | Currency translation adjustments | Cash flow hedge reserve | Total accumulated other comprehensive income | Non-controlling interests | Total equity | |||||||||||||||||||||||||||||||||||||||||||
Balance, as at March 31, 2022 |
$ | 530,241 | $ | 11,734 | $ | 416,773 | $ | 24,412 | $ | (1,564) | $ | 22,848 | $ | 4,087 | $ | 985,683 | ||||||||||||||||||||||||||||||||||
Net income |
— | — | 68,710 | — | — | — | 213 | 68,923 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | (28,522) | 10,215 | (18,307) | (3) | (18,310) | ||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | 68,710 | (28,522) | 10,215 | (18,307) | 210 | 50,613 | ||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest | — | — | 367 | — | — | — | (819) | (452) | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 2,129 | — | — | — | — | — | 2,129 | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 2,030 | (426) | — | — | — | — | — | 1,604 | ||||||||||||||||||||||||||||||||||||||||||
Common shares held in trust | (11,181) | — | — | — | — | — | — | (11,181) | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of common shares |
(3,561) | — | (17,510) | — | — | — | — | (21,071) | ||||||||||||||||||||||||||||||||||||||||||
Balance, as at October 2, 2022
|
$ | 517,529 | $ | 13,437 | $ | 468,340 | $ | (4,110) | $ | 8,651 | $ | 4,541 | $ | 3,478 | $ | 1,007,325 |
Three months ended | Six months ended |
||||||||||||||||||||||||||||||||||
Note | October 1 2023 |
October 2 2022 |
October 1 2023 |
October 2 2022 |
|||||||||||||||||||||||||||||||
Operating activities | |||||||||||||||||||||||||||||||||||
Net income |
$ | 50,743 | $ | 29,530 | $ | 98,467 | $ | 68,923 | |||||||||||||||||||||||||||
Items not involving cash | |||||||||||||||||||||||||||||||||||
Depreciation of property, plant and equipment | 6,888 | 6,032 | 13,680 | 12,099 | |||||||||||||||||||||||||||||||
Amortization of right-of-use assets | 7 |
7,235 | 5,669 | 14,352 | 11,401 | ||||||||||||||||||||||||||||||
Amortization of intangible assets | 19,921 | 18,361 | 41,650 | 40,192 | |||||||||||||||||||||||||||||||
Deferred income taxes | 13 |
9,683 | (7,225) | (327) | (14,225) | ||||||||||||||||||||||||||||||
Other items not involving cash | (1,871) | 2,593 | (562) | 8,547 | |||||||||||||||||||||||||||||||
Stock-based compensation | 14 |
3,106 | 1,434 | 5,103 | 2,129 | ||||||||||||||||||||||||||||||
Change in non-cash operating working capital | (87,212) | (94,412) | (271,666) | (198,820) | |||||||||||||||||||||||||||||||
Cash flows provided by (used in) operating activities |
$ | 8,493 | $ | (38,018) | $ | (99,303) | $ | (69,754) | |||||||||||||||||||||||||||
Investing activities | |||||||||||||||||||||||||||||||||||
Acquisition of property, plant and equipment | $ | (15,905) | $ | (6,640) | $ | (34,471) | $ | (14,135) | |||||||||||||||||||||||||||
Acquisition of intangible assets | (5,896) | (2,387) | (10,305) | (7,241) | |||||||||||||||||||||||||||||||
Business acquisitions, net of cash acquired | 4 |
(4,511) | — | (9,659) | — | ||||||||||||||||||||||||||||||
Settlement of cross-currency interest rate swap instrument | 8 | — | — | — | 21,493 | ||||||||||||||||||||||||||||||
Proceeds from disposal of property, plant and equipment | 397 | 229 | 8,255 | 906 | |||||||||||||||||||||||||||||||
Cash flows provided by (used in) investing activities |
$ | (25,915) | $ | (8,798) | $ | (46,180) | $ | 1,023 | |||||||||||||||||||||||||||
Financing activities | |||||||||||||||||||||||||||||||||||
Bank indebtedness | $ | (389) | $ | 14,945 | $ | (2,873) | $ | 15,894 | |||||||||||||||||||||||||||
Repayment of long-term debt | 8 | (20,022) | (10,001) | (465,944) | (14,302) | ||||||||||||||||||||||||||||||
Proceeds from long-term debt | 131,889 | 12,883 | 315,984 | 70,289 | |||||||||||||||||||||||||||||||
Proceeds from exercise of stock options | 229 | 626 | 1,179 | 1,604 | |||||||||||||||||||||||||||||||
Proceeds from U.S. initial public offering, net of issuance fees |
12 | (685) | — | 362,072 | — | ||||||||||||||||||||||||||||||
Purchase of non-controlling interest | 4 |
(208) | — | (208) | (452) | ||||||||||||||||||||||||||||||
Repurchase of common shares | — | (350) | — | (21,071) | |||||||||||||||||||||||||||||||
Acquisition of shares held in trust | 14 | (23,820) | (11,181) | (23,820) | (11,181) | ||||||||||||||||||||||||||||||
Principal lease payments | (6,094) | (4,908) | (13,115) | (10,807) | |||||||||||||||||||||||||||||||
Cash flows provided by financing activities |
$ | 80,900 | $ | 2,014 | $ | 173,275 | $ | 29,974 | |||||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 384 | 63 | (277) | (1,362) | |||||||||||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents |
63,862 | (44,739) | 27,515 | (40,119) | |||||||||||||||||||||||||||||||
Cash and cash equivalents, beginning of period |
123,520 | 139,902 | 159,867 | 135,282 | |||||||||||||||||||||||||||||||
Cash and cash equivalents, end of period |
$ | 187,382 | $ | 95,163 | $ | 187,382 | $ | 95,163 | |||||||||||||||||||||||||||
Supplemental information | |||||||||||||||||||||||||||||||||||
Cash income taxes paid | $ | 13,925 | $ | 24,403 | $ | 25,716 | $ | 27,749 | |||||||||||||||||||||||||||
Cash interest paid | $ | 11,820 | $ | 9,218 | $ | 34,138 | $ | 22,953 |
Cash used in investing activities for the two acquisitions was determined as follows: | |||||
Cash consideration | $ | 10,650 | |||
Less: cash acquired | (939) | ||||
$ | 9,711 | ||||
The preliminary allocation of the purchase price at fair value for the two acquisitions is as follows: | |||||
Purchase price allocation | |||||
Cash | $ | 939 | |||
Other current assets | 2,193 | ||||
Property, plant and equipment | 990 | ||||
Intangible assets with a definite life |
|||||
Technology | 2,856 | ||||
Brands | 1,318 | ||||
Customer relationships | 659 | ||||
Other | 1,429 | ||||
Current liabilities | (3,849) | ||||
Deferred tax liability | (622) | ||||
Net identifiable assets | $ | 5,913 | |||
Residual purchase price allocated to goodwill | 4,737 | ||||
Purchase consideration | $ | 10,650 |
As at | October 1 2023 |
March 31 2023 |
|||||||||
Raw materials | $ | 131,444 | $ | 138,792 | |||||||
Work in progress | 115,512 | 84,401 | |||||||||
Finished goods | 33,150 | 33,673 | |||||||||
$ | 280,106 | $ | 256,866 |
As at | October 1 2023 |
March 31 2023 |
|||||||||
Prepaid assets | $ | 32,887 | $ | 29,766 | |||||||
Supplier deposits | 38,133 | 45,565 | |||||||||
Investment tax credit receivable | 16,135 | 13,819 | |||||||||
Forward foreign exchange contracts | 4,312 | 4,200 | |||||||||
$ | 91,467 | $ | 93,350 |
Buildings | Vehicles and equipment |
Total |
|||||||||||||||||||||
Balance, at March 31, 2023 |
$ | 79,880 | $ | 14,332 | $ | 94,212 | |||||||||||||||||
Additions | 17,717 | 5,549 | 23,266 | ||||||||||||||||||||
Amortization | (10,567) | (3,785) | (14,352) | ||||||||||||||||||||
Exchange and other adjustments | (205) | (185) | (390) | ||||||||||||||||||||
Balance, at October 1, 2023 |
$ | 86,825 | $ | 15,911 | $ | 102,736 |
Balance, at March 31, 2023 |
$ | 97,249 | |||||||||
Additions | 23,266 | ||||||||||
Interest | 2,644 | ||||||||||
Payments | (15,759) | ||||||||||
Acquisition of subsidiaries | 4 |
157 | |||||||||
Exchange and other adjustments | (1,901) | ||||||||||
Balance, at October 1, 2023 |
$ | 105,656 | |||||||||
Less: current portion | 23,703 | ||||||||||
$ | 81,953 |
As at | October 1 2023 |
March 31 2023 |
|||||||||
Cross-currency interest rate swap instrument (i) |
$ | 17,845 | $ | 16,187 | |||||||
Variable for fixed interest rate swap instrument (ii) |
4,265 | 467 | |||||||||
Other |
13 | 25 | |||||||||
Total |
$ | 22,123 | $ | 16,679 |
As at | October 1 2023 |
March 31 2023 |
|||||||||
Cross-currency interest rate swap instrument (i) |
$ | 10,129 | $ | 10,718 | |||||||
Warranty | Restructuring | Other | Total | ||||||||||||||||||||
Balance, at March 31, 2023 |
$ | 11,102 | $ | 18,590 | $ | 908 | $ | 30,600 | |||||||||||||||
Provisions made | 4,017 | — | 4,414 | 8,431 | |||||||||||||||||||
Provisions used | (2,729) | (7,820) | (4,446) | (14,995) | |||||||||||||||||||
Exchange adjustments | (135) | (231) | 5 | (361) | |||||||||||||||||||
Balance, at October 1, 2023 |
$ | 12,255 | $ | 10,539 | $ | 881 | $ | 23,675 |
As at | October 1 2023 |
March 31 2023 |
|||||||||
Other facilities | $ | 2,951 | $ | 5,824 |
As at | October 1 2023 |
March 31 2023 |
|||||||||
Credit Facility | $ | 540,162 | $ | 691,906 | |||||||
Senior Notes | 475,405 | 472,990 | |||||||||
Other facilities | 1,827 | 202 | |||||||||
Issuance costs | (8,790) | (9,312) | |||||||||
1,008,604 | 1,155,786 | ||||||||||
Less: current portion | 167 | 65 | |||||||||
$ | 1,008,437 | $ | 1,155,721 |
|
Principal |
Interest |
|||||||||
Less than one year | $ | 167 | $ | 19,733 | |||||||
One - two years | 300,315 | 19,725 | |||||||||
Two - three years | 137 | 19,717 | |||||||||
Three - four years | 240,268 | 19,709 | |||||||||
Four - five years | 475,522 | 19,699 | |||||||||
Thereafter | 985 | 10,087 | |||||||||
$ | 1,017,394 | $ | 108,670 |
Number of common shares | Share capital | |||||||||||||
Balance, at March 31, 2023 |
91,602,192 | $ | 520,633 | |||||||||||
Exercise of stock options | 50,195 | 1,516 | ||||||||||||
Initial public offering, net of offering costs and deferred tax | 6,900,000 | 366,332 | ||||||||||||
Common shares held in trust | (387,794) | (23,820) | ||||||||||||
Balance, at October 1, 2023 |
98,164,593 | $ | 864,661 |
Three months ended | Six months ended |
||||||||||||||||||||||||||||||||||
October 1 2023 |
October 2 2022 |
October 1 2023 |
October 2 2022 |
||||||||||||||||||||||||||||||||
Income before income taxes and non-controlling interest |
$ | 67,561 | $ | 39,609 | $ | 129,665 | $ | 90,437 | |||||||||||||||||||||||||||
Combined Canadian basic federal and provincial income tax rate | 26.50% | 26.50% | 26.50% | 26.50% | |||||||||||||||||||||||||||||||
Income tax expense based on combined Canadian basic federal and provincial income tax rate |
$ | 17,903 | $ | 10,497 | $ | 34,361 | $ | 23,966 | |||||||||||||||||||||||||||
Increase (decrease) in income taxes resulting from: |
|||||||||||||||||||||||||||||||||||
Adjustments in respect of current income tax of previous periods | 907 | 118 | 752 | 36 | |||||||||||||||||||||||||||||||
Non-taxable items net of non-deductible items |
(1,959) | 608 | (3,674) | (249) | |||||||||||||||||||||||||||||||
Unrecognized assets | 2,868 | 1,146 | 4,607 | 3,437 | |||||||||||||||||||||||||||||||
Income taxed at different rates and statutory rate changes | (2,430) | (1,775) | (4,079) | (4,727) | |||||||||||||||||||||||||||||||
Manufacturing and processing allowance and all other items | (471) | (515) | (769) | (949) | |||||||||||||||||||||||||||||||
At the effective income tax rate of 24% (October 2, 2022 – 24%) |
$ | 16,818 | $ | 10,079 | $ | 31,198 | $ | 21,514 | |||||||||||||||||||||||||||
Income tax expense reported in the interim condensed consolidated statements of income: |
|||||||||||||||||||||||||||||||||||
Current tax expense |
$ | 7,135 | $ | 17,304 | $ | 31,525 | $ | 35,739 | |||||||||||||||||||||||||||
Deferred tax expense (recovery) |
9,683 | (7,225) | (327) | (14,225) | |||||||||||||||||||||||||||||||
$ | 16,818 | $ | 10,079 | $ | 31,198 | $ | 21,514 | ||||||||||||||||||||||||||||
Deferred tax related to items charged or
credited directly to equity and goodwill:
|
|||||||||||||||||||||||||||||||||||
Loss on revaluation of cash flow hedges |
$ | (329) | $ | (985) | $ | (2,223) | $ | (3,355) | |||||||||||||||||||||||||||
Opening deferred tax of acquired company | 4 |
(61) | — | (715) | — | ||||||||||||||||||||||||||||||
Other items recognized through equity | 3,562 | (4,381) | 4,798 | (5,700) | |||||||||||||||||||||||||||||||
Income tax charged directly to equity and goodwill | $ | 3,172 | $ | (5,366) | $ | 1,860 | $ | (9,055) |
For the six months ended |
October 1 2023 |
October 2 2022 |
||||||||||||||||||
Number of stock options | Weighted average exercise price | Number of stock options | Weighted average exercise price | |||||||||||||||||
Stock options outstanding, beginning of year | 785,429 | $ | 26.69 | 890,408 | $ | 21.04 | ||||||||||||||
Granted | 176,112 | 57.71 | 223,144 | 36.42 | ||||||||||||||||
Exercised (i) |
(50,195) | 23.50 | (96,760) | 16.57 | ||||||||||||||||
Forfeited | (5,128) | 38.38 | (20,382) | 23.84 | ||||||||||||||||
Stock options outstanding, end of year | 906,218 | $ | 32.83 | 996,410 | $ | 24.86 | ||||||||||||||
Stock options exercisable, end of year, time-vested options | 424,635 | $ | 23.65 | 481,158 | $ | 19.57 | ||||||||||||||
For the six months ended |
October 1 2023 |
October 2 2022 |
|||||||||
Weighted average risk-free interest rate | 3.52 | % | 2.66 | % | |||||||
Dividend yield | 0 | % | 0 | % | |||||||
Weighted average expected volatility | 36 | % | 34 | % | |||||||
Weighted average expected life | 4.77 years | 4.75 years | |||||||||
Number of stock options granted:
Time-vested
|
176,112 | 223,144 | |||||||||
Weighted average exercise price per option | $ 57.71 | $ 36.42 | |||||||||
Weighted average value per option:
Time-vested
|
$ 20.83 | $ 12.24 |
For the three months ended |
October 1 2023 |
October 2 2022 |
|||||||||
Stock options | $ | 500 | $ 483 | ||||||||
RSUs | 3,703 | 4,099 | |||||||||
DSUs | (748) | 725 | |||||||||
$ | 3,455 | $ | 5,307 |
For the six months ended |
October 1 2023 |
October 2 2022 |
|||||||||
Stock options | $ | 1,012 | $ 848 | ||||||||
RSUs | 10,994 | 3,003 | |||||||||
DSUs | 1,439 | (2,531) | |||||||||
$ | 13,445 | $ | 1,320 |
The minimum purchase obligations are as follows as at October 1, 2023: |
|||||
Less than one year | $ | 415,724 | |||
One - two years | 17,394 | ||||
Two - three years | 1,990 | ||||
Three - four years | 67 | ||||
Four - five years | 38 | ||||
More than five years | 7 | ||||
$ | 435,220 |
As at | October 1, 2023 |
||||||||||||||||
Right-of-use assets | Property, plant and equipment | Intangible assets | |||||||||||||||
Canada | $ | 32,616 | $ | 62,128 | $ | 27,743 | |||||||||||
United States | 11,164 | 128,393 | 322,750 | ||||||||||||||
Germany | 25,177 | 34,980 | 37,965 | ||||||||||||||
Italy | 18,719 | 38,834 | 134,980 | ||||||||||||||
Other Europe | 10,333 | 10,702 | 33,744 | ||||||||||||||
Other | 4,727 | 995 | 9,495 | ||||||||||||||
Total Company | $ | 102,736 | $ | 276,032 | $ | 566,677 |
As at | March 31, 2023 |
||||||||||||||||
Right-of-use assets | Property, plant and equipment | Intangible assets |
|||||||||||||||
Canada | $ | 21,384 | $ | 57,589 | $ | 25,584 | |||||||||||
United States | 12,514 | 111,702 | 334,731 | ||||||||||||||
Germany | 25,250 | 35,848 | 43,291 | ||||||||||||||
Italy | 21,136 | 40,645 | 145,217 | ||||||||||||||
Other Europe | 9,031 | 16,049 | 33,729 | ||||||||||||||
Other | 4,897 | 1,286 | 10,658 | ||||||||||||||
Total Company | $ | 94,212 | $ | 263,119 | $ | 593,210 |
Revenues from external customers for the three months ended |
October 1 2023 |
October 2 2022 |
|||||||||
Canada | $ | 21,780 | $ | 25,100 | |||||||
United States | 371,018 | 318,062 | |||||||||
Germany | 74,914 | 56,893 | |||||||||
Italy | 32,809 | 9,104 | |||||||||
Other Europe | 149,760 | 101,622 | |||||||||
Other | 85,435 | 78,173 | |||||||||
Total Company | $ | 735,716 | $ | 588,954 |
Revenues from external customers for the six months ended |
October 1 2023 |
October 2 2022 |
|||||||||
Canada | $ | 64,927 | $ | 53,321 | |||||||
United States | 723,755 | 626,526 | |||||||||
Germany | 146,294 | 115,504 | |||||||||
Italy | 66,472 | 43,776 | |||||||||
Other Europe | 296,482 | 208,239 | |||||||||
Other | 191,435 | 152,179 | |||||||||
Total Company | $ | 1,489,365 | $ | 1,199,545 |
Three months ended |
Six months ended |
|||||||||||||||||||||||||||||||
October 1 2023 |
October 2 2022 |
October 1 2023 |
October 2 2022 |
|||||||||||||||||||||||||||||
Revenues from construction contracts | $ | 479,755 | $ | 362,421 | $ | 988,623 | $ | 737,497 | ||||||||||||||||||||||||
Services rendered | 149,078 | 116,532 | 291,381 | 230,629 | ||||||||||||||||||||||||||||
Sale of goods | 106,883 | 110,001 | 209,361 | 231,419 | ||||||||||||||||||||||||||||
Total Company | $ | 735,716 | $ | 588,954 | $ | 1,489,365 | $ | 1,199,545 |
Three months ended |
Six months ended |
|||||||||||||||||||||||||||||||
Revenues by market | October 1 2023 |
October 2 2022 |
October 1 2023 |
October 2 2022 |
||||||||||||||||||||||||||||
Life Sciences | $ | 291,458 | $ | 284,248 | $ | 576,428 | $ | 581,264 | ||||||||||||||||||||||||
Transportation | 252,201 | 120,568 | 470,734 | 217,553 | ||||||||||||||||||||||||||||
Food & Beverage | 109,840 | 74,987 | 240,454 | 183,773 | ||||||||||||||||||||||||||||
Consumer Products | 64,541 | 77,314 | 148,184 | 152,984 | ||||||||||||||||||||||||||||
Energy | 17,676 | 31,837 | 53,565 | 63,971 | ||||||||||||||||||||||||||||
Total Company | $ | 735,716 | $ | 588,954 | $ | 1,489,365 | $ | 1,199,545 |
Timing of revenue recognition based on transfer of control for the three months ended |
October 1 2023 |
October 2 2022 |
|||||||||
Goods and services transferred at a point in time | $ | 106,883 | $ | 110,001 | |||||||
Goods and services transferred over time | 628,833 | 478,953 | |||||||||
Total Company | $ | 735,716 | $ | 588,954 |
Timing of revenue recognition based on transfer of control for the six months ended |
October 1 2023 |
October 2 2022 |
|||||||||
Goods and services transferred at a point in time | $ | 209,361 | $ | 231,419 | |||||||
Goods and services transferred over time | 1,280,004 | 968,126 | |||||||||
Total Company | $ | 1,489,365 | $ | 1,199,545 |
As at | October 1 2023 |
March 31 2023 |
|||||||||
Trade receivables | $ | 484,189 | $ | 368,855 | |||||||
Contract assets | 591,585 | 526,990 | |||||||||
Contract liabilities | (286,652) | (296,555) | |||||||||
Unearned revenue (i) |
(33,942) | (33,490) | |||||||||
Net contract balances | $ | 755,180 | $ | 565,800 |
As at | October 1 2023 |
March 31 2023 |
|||||||||
Contracts in progress: | |||||||||||
Costs incurred | $ | 3,433,737 | $ | 3,285,121 | |||||||
Estimated earnings | 1,159,300 | 1,091,180 | |||||||||
4,593,037 | 4,376,301 | ||||||||||
Progress billings | (4,288,104) | (4,145,866) | |||||||||
Net contract assets and liabilities | $ | 304,933 | $ | 230,435 |
Three months ended | Six months ended |
|||||||||||||||||||||||||||||||
Note | October 1 2023 |
October 2 2022 |
October 1 2023 |
October 2 2022 |
||||||||||||||||||||||||||||
Interest expense | $ | 14,517 | $ | 12,647 | $ | 30,618 | $ | 22,461 | ||||||||||||||||||||||||
Interest on lease liabilities | 7 | 1,459 | 902 | 2,644 | 1,920 | |||||||||||||||||||||||||||
Interest income | (514) | (107) | (854) | (214) | ||||||||||||||||||||||||||||
$ | 15,462 | $ | 13,442 | $ | 32,408 | $ | 24,167 |
For the three months ended |
October 1 2023 |
October 2 2022 |
|||||||||
Weighted average number of common shares outstanding | 98,883,583 | 91,727,583 | |||||||||
Dilutive effect of RSUs | 134,615 | 30,322 | |||||||||
Dilutive effect of performance-based RSUs | 190,633 | — | |||||||||
Dilutive effect of stock option conversion | 373,369 | 341,186 | |||||||||
Diluted weighted average number of common shares outstanding | 99,582,200 | 92,099,091 |
For the six months ended |
October 1 2023 |
October 2 2022 |
|||||||||
Weighted average number of common shares outstanding | 96,617,655 | 91,873,831 | |||||||||
Dilutive effect of RSUs | 123,997 | 11,802 | |||||||||
Dilutive effect of performance-based RSUs | 197,339 | — | |||||||||
Dilutive effect of stock option conversion | 378,166 | 325,368 | |||||||||
Diluted weighted average number of common shares outstanding | 97,317,157 | 92,211,001 |
Appendix 99.3 |
Appendix 99.4 |
Appendix 99.5 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Variance | Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
Variance | |||||||||||||||||||||||||||
Revenues | $ | 735.7 | $ | 588.9 | 24.9% | $ | 1,489.4 | $ | 1,199.5 | 24.2% | ||||||||||||||||||||||
Net income |
$ | 50.7 | $ | 29.5 | 71.9% | $ | 98.5 | $ | 68.9 | 43.0% | ||||||||||||||||||||||
Adjusted earnings from operations1, 2 |
$ | 98.3 | $ | 76.1 | 29.2% | $ | 200.4 | $ | 155.3 | 29.0% | ||||||||||||||||||||||
Adjusted earnings from operations margin1, 2 |
13.4% | 12.9% | 44bps | 13.5% | 12.9% | 51bps | ||||||||||||||||||||||||||
Adjusted EBITDA1, 2 |
$ | 116.2 | $ | 89.8 | 29.4% | $ | 235.4 | $ | 182.3 | 29.1% | ||||||||||||||||||||||
Adjusted EBITDA margin1, 2 |
15.8% | 15.2% | 55bps | 15.8% | 15.2% | 61bps | ||||||||||||||||||||||||||
Basic earnings per share |
$ | 0.51 | $ | 0.32 | 59.4% | $ | 1.02 | $ | 0.75 | 36.0% | ||||||||||||||||||||||
Adjusted basic earnings per share1, 2 |
$ | 0.63 | $ | 0.51 | 23.5% | $ | 1.32 | $ | 1.08 | 22.2% | ||||||||||||||||||||||
Order Bookings1 |
$ | 742.0 | $ | 804.0 | (7.7)% | $ | 1,432.0 | $ | 1,539.0 | (7.0)% |
As At | October 1 2023 |
October 2 2022 |
Variance |
||||||||||||||
Order Backlog1 |
$ | 2,016 | $ | 1,793 | 12.4% |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
||||||||||||||||||||
Opening Order Backlog |
$ | 2,023 | $ | 1,555 | $ | 2,153 | $ | 1,438 | |||||||||||||||
Revenues |
(736) | (589) | (1,489) | (1,200) | |||||||||||||||||||
Order Bookings |
742 | 804 | 1,432 | 1,539 | |||||||||||||||||||
Order Backlog adjustments1 |
(13) | 23 | (80) | 16 | |||||||||||||||||||
Total |
$ | 2,016 | $ | 1,793 | $ | 2,016 | $ | 1,793 |
For more information, contact: | For general media inquiries, contact: | ||||
David Galison | Matthew Robinson | ||||
Head of Investor Relations | Director, Corporate Communications | ||||
ATS Corporation | ATS Corporation | ||||
730 Fountain Street North | 730 Fountain Street North | ||||
Cambridge, ON, N3H 4R7 | Cambridge, ON, N3H 4R7 | ||||
(519) 653-6500 | (519) 653-6500 | ||||
dgalison@atsautomation.com | mrobinson@atsautomation.com |
Revenues by type | Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
|||||||||||||||||||
Revenues from construction contracts |
$ | 479.7 | $ | 362.4 | $ | 988.6 | $ | 737.5 | |||||||||||||||
Services rendered |
149.1 | 116.5 | 291.4 | 230.6 | |||||||||||||||||||
Sale of goods | 106.9 | 110.0 | 209.4 | 231.4 | |||||||||||||||||||
Total revenues | $ | 735.7 | $ | 588.9 | $ | 1,489.4 | $ | 1,199.5 |
Revenues by market | Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
|||||||||||||||||||
Life Sciences | $ | 291.5 | $ | 284.2 | $ | 576.4 | $ | 581.2 | |||||||||||||||
Transportation | 252.2 | 120.6 | 470.7 | 217.5 | |||||||||||||||||||
Food & Beverage | 109.8 | 75.0 | 240.5 | 183.8 | |||||||||||||||||||
Consumer Products | 64.5 | 77.3 | 148.2 | 153.0 | |||||||||||||||||||
Energy | 17.7 | 31.8 | 53.6 | 64.0 | |||||||||||||||||||
Total revenues | $ | 735.7 | $ | 588.9 | $ | 1,489.4 | $ | 1,199.5 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
||||||||||||||||||||
Earnings from operations | $ | 83.0 | $ | 53.0 | $ | 162.1 | $ | 114.6 | |||||||||||||||
Amortization of acquisition-related intangible assets | 16.1 | 16.4 | 34.7 | 36.7 | |||||||||||||||||||
Acquisition-related transaction costs | 1.2 | 0.5 | 1.3 | 0.9 | |||||||||||||||||||
Acquisition-related inventory fair value charges | — | 3.9 | — | 9.1 | |||||||||||||||||||
Restructuring charges | — | 1.3 | — | 1.3 | |||||||||||||||||||
Mark to market portion of stock-based compensation | (2.0) | 1.0 | 2.3 | (7.3) | |||||||||||||||||||
Adjusted earnings from operations1, 2 |
$ | 98.3 | $ | 76.1 | $ | 200.4 | $ | 155.3 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
||||||||||||||||||||
Earnings from operations | $ | 83.0 | $ | 53.0 | $ | 162.1 | $ | 114.6 | |||||||||||||||
Depreciation and amortization | 34.0 | 30.1 | 69.7 | 63.7 | |||||||||||||||||||
EBITDA1 |
$ | 117.0 | $ | 83.1 | $ | 231.8 | $ | 178.3 | |||||||||||||||
Restructuring charges | — | 1.3 | — | 1.3 | |||||||||||||||||||
Acquisition-related transaction costs | 1.2 | 0.5 | 1.3 | 0.9 | |||||||||||||||||||
Acquisition-related inventory fair value charges | — | 3.9 | — | 9.1 | |||||||||||||||||||
Mark to market portion of stock-based compensation2 |
(2.0) | 1.0 | 2.3 | (7.3) | |||||||||||||||||||
Adjusted EBITDA1, 2 |
$ | 116.2 | $ | 89.8 | $ | 235.4 | $ | 182.3 |
As at | October 1, 2023 |
October 2, 2022 |
|||||||||
Life Sciences | $ | 857 | $ | 782 | |||||||
Transportation |
736 | 614 | |||||||||
Food & Beverage | 162 | 162 | |||||||||
Consumer Products | 152 | 167 | |||||||||
Energy | 109 | 68 | |||||||||
Total |
$ | 2,016 | $ | 1,793 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
||||||||||||||||||||
Adjusted EBITDA1 |
$ | 116.2 | $ | 89.8 | $ | 235.4 | $ | 182.3 | |||||||||||||||
Less: restructuring charges | — | 1.3 | — | 1.3 | |||||||||||||||||||
Less: acquisition-related transaction costs | 1.2 | 0.5 | 1.3 | 0.9 | |||||||||||||||||||
Less: acquisition-related inventory fair value charges | — | 3.9 | — | 9.1 | |||||||||||||||||||
Less: mark to market portion of stock-based compensation | (2.0) | 1.0 | 2.3 | (7.3) | |||||||||||||||||||
EBITDA | $ | 117.0 | $ | 83.1 | $ | 231.8 | $ | 178.3 | |||||||||||||||
Less: depreciation and amortization expense | 34.0 | 30.1 | 69.7 | 63.7 | |||||||||||||||||||
Earnings from operations | $ | 83.0 | $ | 53.0 | $ | 162.1 | $ | 114.6 | |||||||||||||||
Less: net finance costs | 15.5 | 13.4 | 32.4 | 24.2 | |||||||||||||||||||
Less: provision for income taxes | 16.8 | 10.1 | 31.2 | 21.5 | |||||||||||||||||||
Net income | $ | 50.7 | $ | 29.5 | $ | 98.5 | $ | 68.9 |
Three Months Ended October 1, 2023 | Three Months Ended October 2, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from operations |
Finance costs |
Provision for income taxes | Net income |
Basic EPS |
Earnings from operations |
Finance costs |
Provision for income taxes | Net income |
Basic EPS |
||||||||||||||||||||||||||||||||||||||||||||||||||
Reported (IFRS) |
$ | 83.0 | $ | (15.5) | $ | (16.8) | $ | 50.7 | $ | 0.51 | $ | 53.0 | $ | (13.4) | $ | (10.1) | $ | 29.5 | $ | 0.32 | |||||||||||||||||||||||||||||||||||||||
Amortization of acquisition- related intangibles |
16.1 | — | — | 16.1 | 0.17 | 16.4 | — | — | 16.4 | 0.18 | |||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring charges |
— | — | — | — | — | 1.3 | — | — | 1.3 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related inventory fair value charges |
— | — | — | — | — | 3.9 | — | — | 3.9 | 0.04 | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related transaction costs |
1.2 | — | — | 1.2 | 0.01 | 0.5 | — | — | 0.5 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mark to market portion of stock-based compensation |
(2.0) | — | — | (2.0) | (0.02) | 1.0 | — | — | 1.0 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||
Tax effect adjustments1
|
— | — | (3.8) | (3.8) | (0.04) | — | — | (5.9) | (5.9) | (0.06) | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted (non-IFRS)2 |
$ | 98.3 | $ | 62.2 | $ | 0.63 | $ | 76.1 | $ | 46.7 | $ | 0.51 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings from operations |
Finance costs |
Provision for income taxes | Net income |
Basic EPS |
Earnings from Operations |
Finance costs |
Provision for income taxes | Net Income |
Basic EPS |
||||||||||||||||||||||||||||||||||||||||||||||||||
Reported (IFRS) |
$ | 162.1 | $ | (32.4) | $ | (31.2) | $ | 98.5 | $ | 1.02 | $ | 114.6 | $ | (24.2) | $ | (21.5) | $ | 68.9 | $ | 0.75 | |||||||||||||||||||||||||||||||||||||||
Amortization of acquisition- related intangibles |
34.7 | — | — | 34.7 | 0.36 | 36.7 | — | — | 36.7 | 0.40 | |||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring charges |
— | — | — | — | — | 1.3 | — | — | 1.3 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related fair value inventory charges |
— | — | — | — | — | 9.1 | — | — | 9.1 | 0.10 | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related transaction costs |
1.3 | — | — | 1.3 | 0.01 | 0.9 | — | — | 0.9 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mark to market portion of stock-based compensation |
2.3 | — | — | 2.3 | 0.03 | (7.3) | — | — | (7.3) | (0.08) | |||||||||||||||||||||||||||||||||||||||||||||||||
Tax effect of the above
adjustments1
|
— | — | (9.6) | (9.6) | (0.10) | — | — | (10.1) | (10.1) | (0.11) | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted (non-IFRS)2 |
$ | 200.4 | $ | 127.2 | $ | 1.32 | $ | 155.3 | $ | 99.5 | $ | 1.08 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
||||||||||||||||||||
Organic revenue | $ | 685.5 | $ | 541.8 | $ | 1,390.3 | $ | 1,080.1 | |||||||||||||||
Revenues of acquired companies | 14.5 | 68.6 | 29.8 | 155.9 | |||||||||||||||||||
Impact of foreign exchange rate changes | 35.7 | (21.5) | 69.3 | (36.5) | |||||||||||||||||||
Total revenue | $ | 735.7 | $ | 588.9 | $ | 1,489.4 | $ | 1,199.5 | |||||||||||||||
Organic revenue growth | 16.4% | 15.9% |
As at | October 1 2023
|
March 31 2023 |
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Accounts receivable | $ | 512.3 | $ | 399.7 | |||||||
Income tax receivable | 18.5 | 15.2 | |||||||||
Contract assets | 591.6 | 527.0 | |||||||||
Inventories | 280.1 | 256.9 | |||||||||
Deposits, prepaids and other assets | 91.5 | 93.4 | |||||||||
Accounts payable and accrued liabilities | (596.5) | (647.6) | |||||||||
Income tax payable | (39.2) | (38.9) | |||||||||
Contract liabilities | (286.7) | (296.6) | |||||||||
Provisions | (23.7) | (30.6) | |||||||||
Non-cash working capital | $ | 547.9 | $ | 278.5 | |||||||
Trailing six-month revenues annualized | $ | 2,978.6 | $ | 2,755.6 | |||||||
Working capital % | 18.4% | 10.1% |
As at | October 1 2023 |
March 31 2023 |
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Cash and cash equivalents | $ | 187.4 | $ | 159.9 | |||||||
Bank indebtedness | (3.0) | (5.8) | |||||||||
Current portion of lease liabilities | (23.7) | (24.0) | |||||||||
Current portion of long-term debt | (0.2) | (0.1) | |||||||||
Long-term lease liabilities | (81.9) | (73.3) | |||||||||
Long-term debt | (1,008.4) | (1,155.7) | |||||||||
Net Debt | $ | (929.8) | $ | (1,099.0) | |||||||
Adjusted EBITDA (TTM)1 |
$ | 454.3 | $ | 401.2 | |||||||
Net Debt to Adjusted EBITDA1 |
2.0x | 2.7x |
(in millions of dollars) | Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
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Cash flows provided by (used in) operating activities | $ | 8.5 | $ | (38.0) | $ | (99.3) | $ | (69.8) | |||||||||||||||
Acquisition of property, plant and equipment | (15.9) | (6.6) | (34.5) | (14.1) | |||||||||||||||||||
Acquisition of intangible assets | (5.9) | (2.4) | (10.3) | (7.2) | |||||||||||||||||||
Free cash flow | $ | (13.3) | $ | (47.0) | $ | (144.1) | $ | (91.1) |
(in millions of dollars) | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | |||||||||||||||||||||||||||||||||||||||
Total stock-based compensation expense | $ | 3.5 | $ | 10.0 | $ | 19.3 | $ | 9.9 | $ | 5.3 | $ | (4.0) | $ | 0.8 | $ | 12.7 | |||||||||||||||||||||||||||||||
Less: Mark to market portion of stock-based compensation |
(2.0) | 4.4 | 15.1 | 5.6 | 1.0 | (8.3) | (4.2) | 7.3 | |||||||||||||||||||||||||||||||||||||||
Base stock-based compensation expense | $ | 5.5 | $ | 5.6 | $ | 4.2 | $ | 4.3 | $ | 4.3 | $ | 4.3 | $ | 5.0 | $ | 5.4 |
(in millions of dollars) | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | |||||||||||||||||||||||||||||
Previously reported: adjusted earnings from operations | $ | 80.6 | $ | 75.1 | $ | 87.5 | $ | 85.8 | $ | 70.4 | $ | 70.7 | |||||||||||||||||||||||
Mark to market portion of stock-based compensation | 5.6 | 1.0 | (8.3) | (4.2) | 7.3 | 6.1 | |||||||||||||||||||||||||||||
Revised: adjusted earnings from operations | $ | 86.2 | $ | 76.1 | $ | 79.2 | $ | 81.6 | $ | 77.7 | $ | 76.8 | |||||||||||||||||||||||
Previously reported: adjusted EBITDA | $ | 95.1 | $ | 88.8 | $ | 100.8 | $ | 99.1 | $ | 83.5 | $ | 83.3 | |||||||||||||||||||||||
Mark to market portion of stock-based compensation | 5.6 | 1.0 | (8.3) | (4.2) | 7.3 | 6.1 | |||||||||||||||||||||||||||||
Revised: adjusted EBITDA | $ | 100.7 | $ | 89.8 | $ | 92.5 | $ | 94.9 | $ | 90.8 | $ | 89.4 | |||||||||||||||||||||||
Previously reported: adjusted basic earnings per share | $ | 0.52 | $ | 0.50 | $ | 0.64 | $ | 0.64 | $ | 0.52 | $ | 0.53 | |||||||||||||||||||||||
Mark to market portion of stock-based compensation | 0.06 | 0.01 | (0.09) | (0.05) | 0.08 | 0.07 | |||||||||||||||||||||||||||||
Tax impact of mark to market portion of stock-based compensation |
(0.02) | — | 0.02 | 0.01 | (0.02) | (0.01) | |||||||||||||||||||||||||||||
Revised: adjusted basic earnings per share | $ | 0.56 | $ | 0.51 | $ | 0.57 | $ | 0.60 | $ | 0.58 | $ | 0.59 | |||||||||||||||||||||||
As at | October 1, 2023 |
March 31, 2023 |
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Cash and cash equivalents | $ | 187.4 | $ | 159.9 | |||||||
Debt-to-equity ratio1 |
0.74:1 | 1.18:1 |
Three Months Ended October 1, 2023 |
Three Months Ended October 2, 2022 |
Six Months Ended October 1, 2023 |
Six Months Ended October 2, 2022 |
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Cash, beginning of period | $ | 123.5 | $ | 139.9 | $ | 159.9 | $ | 135.3 | |||||||||||||||
Total cash provided by (used in): | |||||||||||||||||||||||
Operating activities | 8.5 | (38.0) | (99.3) | (69.8) | |||||||||||||||||||
Investing activities | (25.9) | (8.8) | (46.2) | 1.0 | |||||||||||||||||||
Financing activities | 80.9 | 2.0 | 173.3 | 30.0 | |||||||||||||||||||
Net foreign exchange difference | 0.4 | 0.1 | (0.3) | (1.3) | |||||||||||||||||||
Cash, end of period | $ | 187.4 | $ | 95.2 | $ | 187.4 | $ | 95.2 |
As at | October 1 2023 |
March 31 2023 |
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ASSETS | ||||||||||||||
Current assets |
||||||||||||||
Cash and cash equivalents | $ | 187,382 | $ | 159,867 | ||||||||||
Accounts receivable | 512,263 | 399,741 | ||||||||||||
Income tax receivable | 18,465 | 15,160 | ||||||||||||
Contract assets | 591,585 | 526,990 | ||||||||||||
Inventories | 280,106 | 256,866 | ||||||||||||
Deposits, prepaids and other assets |
91,467 | 93,350 | ||||||||||||
1,681,268 | 1,451,974 | |||||||||||||
Non-current assets | ||||||||||||||
Property, plant and equipment |
276,032 | 263,119 | ||||||||||||
Right-of-use assets | 102,736 | 94,212 | ||||||||||||
Other assets | 22,123 | 16,679 | ||||||||||||
Goodwill | 1,113,484 | 1,118,262 | ||||||||||||
Intangible assets | 566,677 | 593,210 | ||||||||||||
Deferred income tax assets | 4,627 | 6,337 | ||||||||||||
2,085,679 | 2,091,819 | |||||||||||||
Total assets | $ | 3,766,947 | $ | 3,543,793 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Current liabilities | ||||||||||||||
Bank indebtedness |
$ | 2,951 | $ | 5,824 | ||||||||||
Accounts payable and accrued liabilities | 596,528 | 647,629 | ||||||||||||
Income tax payable | 39,226 | 38,904 | ||||||||||||
Contract liabilities | 286,652 | 296,555 | ||||||||||||
Provisions | 23,675 | 30,600 | ||||||||||||
Current portion of lease liabilities | 23,703 | 23,994 | ||||||||||||
Current portion of long-term debt | 167 | 65 | ||||||||||||
972,902 | 1,043,571 | |||||||||||||
Non-current liabilities | ||||||||||||||
Employee benefits |
24,382 | 25,486 | ||||||||||||
Long-term lease liabilities | 81,953 | 73,255 | ||||||||||||
Long-term debt | 1,008,437 | 1,155,721 | ||||||||||||
Deferred income tax liabilities | 99,758 | 104,459 | ||||||||||||
Other long-term liabilities | 10,129 | 10,718 | ||||||||||||
1,224,659 | 1,369,639 | |||||||||||||
Total liabilities | $ | 2,197,561 | $ | 2,413,210 | ||||||||||
EQUITY | ||||||||||||||
Share capital |
$ | 864,661 | $ | 520,633 | ||||||||||
Contributed surplus | 20,234 | 15,468 | ||||||||||||
Accumulated other comprehensive income | 52,056 | 60,040 | ||||||||||||
Retained earnings | 629,406 | 530,707 | ||||||||||||
Equity attributable to shareholders | 1,566,357 | 1,126,848 | ||||||||||||
Non-controlling interests | 3,029 | 3,735 | ||||||||||||
Total equity | 1,569,386 | 1,130,583 | ||||||||||||
Total liabilities and equity | $ | 3,766,947 | $ | 3,543,793 |
Three months ended | Six months ended |
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October 1 2023 |
October 2 2022 |
October 1 2023 |
October 2 2022 |
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Revenues |
$ | 735,716 | $ | 588,954 | $ | 1,489,365 | $ | 1,199,545 | ||||||||||||||||||||||||
Operating costs and expenses | ||||||||||||||||||||||||||||||||
Cost of revenues |
527,298 | 427,476 | 1,068,223 | 868,329 | ||||||||||||||||||||||||||||
Selling, general and administrative | 121,940 | 101,849 | 245,624 | 214,021 | ||||||||||||||||||||||||||||
Restructuring costs | — | 1,271 | — | 1,271 | ||||||||||||||||||||||||||||
Stock-based compensation | 3,455 | 5,307 | 13,445 | 1,320 | ||||||||||||||||||||||||||||
Earnings from operations | 83,023 | 53,051 | 162,073 | 114,604 | ||||||||||||||||||||||||||||
Net finance costs | 15,462 | 13,442 | 32,408 | 24,167 | ||||||||||||||||||||||||||||
Income before income taxes | 67,561 | 39,609 | 129,665 | 90,437 | ||||||||||||||||||||||||||||
Income tax expense | 16,818 | 10,079 | 31,198 | 21,514 | ||||||||||||||||||||||||||||
Net income | $ | 50,743 | $ | 29,530 | $ | 98,467 | $ | 68,923 | ||||||||||||||||||||||||
Attributable to | ||||||||||||||||||||||||||||||||
Shareholders |
$ | 50,665 | $ | 29,506 | $ | 98,228 | $ | 68,710 | ||||||||||||||||||||||||
Non-controlling interests | 78 | 24 | 239 | 213 | ||||||||||||||||||||||||||||
$ | 50,743 | $ | 29,530 | $ | 98,467 | $ | 68,923 | |||||||||||||||||||||||||
Earnings per share attributable to shareholders | ||||||||||||||||||||||||||||||||
Basic | $ | 0.51 | $ | 0.32 | $ | 1.02 | $ | 0.75 | ||||||||||||||||||||||||
Diluted | $ | 0.51 | $ | 0.32 | $ | 1.01 | $ | 0.75 |
Three months ended | Six months ended |
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October 1 2023 |
October 2 2022 |
October 1 2023 |
October 2 2022 |
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Operating activities | ||||||||||||||||||||||||||||||||
Net income | $ | 50,743 | $ | 29,530 | $ | 98,467 | $ | 68,923 | ||||||||||||||||||||||||
Items not involving cash | ||||||||||||||||||||||||||||||||
Depreciation of property, plant and equipment | 6,888 | 6,032 | 13,680 | 12,099 | ||||||||||||||||||||||||||||
Amortization of right-of-use assets | 7,235 | 5,669 | 14,352 | 11,401 | ||||||||||||||||||||||||||||
Amortization of intangible assets | 19,921 | 18,361 | 41,650 | 40,192 | ||||||||||||||||||||||||||||
Deferred income taxes | 9,683 | (7,225) | (327) | (14,225) | ||||||||||||||||||||||||||||
Other items not involving cash | (1,871) | 2,593 | (562) | 8,547 | ||||||||||||||||||||||||||||
Stock-based compensation | 3,106 | 1,434 | 5,103 | 2,129 | ||||||||||||||||||||||||||||
Change in non-cash operating working capital | (87,212) | (94,412) | (271,666) | (198,820) | ||||||||||||||||||||||||||||
Cash flows provided by (used in) operating activities | $ | 8,493 | $ | (38,018) | $ | (99,303) | $ | (69,754) | ||||||||||||||||||||||||
Investing activities | ||||||||||||||||||||||||||||||||
Acquisition of property, plant and equipment | $ | (15,905) | $ | (6,640) | $ | (34,471) | $ | (14,135) | ||||||||||||||||||||||||
Acquisition of intangible assets | (5,896) | (2,387) | (10,305) | (7,241) | ||||||||||||||||||||||||||||
Business acquisitions, net of cash acquired | (4,511) | — | (9,659) | — | ||||||||||||||||||||||||||||
Settlement of cross-currency interest rate swap instrument | — | — | — | 21,493 | ||||||||||||||||||||||||||||
Proceeds from disposal of property, plant and equipment | 397 | 229 | 8,255 | 906 | ||||||||||||||||||||||||||||
Cash flows provided by (used in) investing activities | $ | (25,915) | $ | (8,798) | $ | (46,180) | $ | 1,023 | ||||||||||||||||||||||||
Financing activities | ||||||||||||||||||||||||||||||||
Bank indebtedness | $ | (389) | $ | 14,945 | $ | (2,873) | $ | 15,894 | ||||||||||||||||||||||||
Repayment of long-term debt | (20,022) | (10,001) | (465,944) | (14,302) | ||||||||||||||||||||||||||||
Proceeds from long-term debt | 131,889 | 12,883 | 315,984 | 70,289 | ||||||||||||||||||||||||||||
Proceeds from exercise of stock options | 229 | 626 | 1,179 | 1,604 | ||||||||||||||||||||||||||||
Proceeds from U.S. initial public offering, net of issuance fees |
(685) | — | 362,072 | — | ||||||||||||||||||||||||||||
Purchase of non-controlling interest | (208) | — | (208) | (452) | ||||||||||||||||||||||||||||
Repurchase of common shares | — | (350) | — | (21,071) | ||||||||||||||||||||||||||||
Acquisition of shares held in trust | (23,820) | (11,181) | (23,820) | (11,181) | ||||||||||||||||||||||||||||
Principal lease payments | (6,094) | (4,908) | (13,115) | (10,807) | ||||||||||||||||||||||||||||
Cash flows provided by financing activities | $ | 80,900 | $ | 2,014 | $ | 173,275 | $ | 29,974 | ||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 384 | 63 | (277) | (1,362) | ||||||||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 63,862 | (44,739) | 27,515 | (40,119) | ||||||||||||||||||||||||||||
Cash and cash equivalents, beginning of period | 123,520 | 139,902 | 159,867 | 135,282 | ||||||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 187,382 | $ | 95,163 | $ | 187,382 | $ | 95,163 | ||||||||||||||||||||||||
Supplemental information | ||||||||||||||||||||||||||||||||
Cash income taxes paid | $ | 13,925 | $ | 24,403 | $ | 25,716 | $ | 27,749 | ||||||||||||||||||||||||
Cash interest paid | $ | 11,820 | $ | 9,218 | $ | 34,138 | $ | 22,953 |