Mr. Anthony Caputo reports

ATS REPORTS ANNUAL AND FOURTH QUARTER FISCAL 2013 RESULTS

ATS Automation Tooling Systems Inc. has released financial results for the three and 12 months ended March 31, 2013, for its continuing operations (Automation Systems Group) and discontinued operations (Solar).

Fourth-quarter summary -- continuing operations:

• Revenues were $153.2-million, 6 per cent higher than the third quarter of fiscal 2013 and 12 per cent lower than the corresponding period a year ago;
• Earnings from operations were $14.0-million (9-per-cent operating margin) compared with $13.6-million (9-per-cent operating margin) in the third quarter of fiscal 2013 and $16.1-million (9 per cent operating margin) in the corresponding period a year ago;
• EBITDA (earnings before interest, taxes, depreciation and amortization) was $17.3-million (11-per-cent EBITDA margin) compared with $16.6-million (12-per-cent EBITDA margin) in the third quarter of fiscal 2013 and $19.0-million (11-per-cent EBITDA margin) in the corresponding period a year ago;
• Order bookings were $170-million, a 2-per-cent decrease from $173-million in the third quarter of fiscal 2013 and a 9-per-cent decrease from the fourth quarter of fiscal 2012;
• Period-end order backlog was a record $398-million, an increase of 3 per cent from $388-million in the third quarter of fiscal 2013 and an increase of 4 per cent from $382-million a year ago;
• The company's balance sheet was strong with cash net of debt of $104.3-million with $199.4-million of unutilized credit available under the credit agreement and another $18.9-million available under letter of credit facilities.

"Fourth-quarter operating results were solid," said Anthony Caputo, chief executive officer. "We achieved strong order bookings and ended the quarter with record order backlog. We are focused on our value creation strategy to grow, expand and scale. We have a strong operating foundation, a clear strategy for growth and the financial flexibility to support our plans."

Fourth-quarter summary -- continuing operations

By industrial market, consumer products and electronics revenues declined 52 per cent year over year due to lower order backlog entering the fourth quarter compared with a year ago, primarily on lower activity in consumer products markets. Energy market revenues decreased 54 per cent on lower order backlog entering the fourth quarter compared with a year ago, reflecting weakness in the solar market. Revenues from life sciences increased 6 per cent year over year due to higher order backlog entering the fourth quarter compared with a year ago on continued market strength. Transportation revenues decreased by 4 per cent on lower order backlog entering the fourth quarter compared with a year ago due to the timing of various larger opportunities in this market.

Fiscal 2013 fourth-quarter earnings from operations were $14.0-million (9-per-cent operating margin) compared with earnings from operations of $16.1-million (9-per-cent operating margin) in the fourth quarter of fiscal 2012. The decrease in earnings from operations primarily reflected lower revenues during the fourth quarter of fiscal 2013, which were partially offset by lower selling, general and administrative expenses compared with the corresponding period a year ago.

Annual summary -- continuing operations

Fiscal 2013 revenues were 1 per cent lower than a year ago. By industrial market, annual revenues from life sciences and transportation markets both increased 12 per cent year over year, primarily on increased order backlog entering the fiscal year compared with a year ago. Revenues in energy decreased 54 per cent compared with a year ago, primarily due to decreased order backlog entering the fiscal year compared with a year ago on weakness in the solar market. Revenues in consumer products and electronics decreased 23 per cent compared with a year ago, primarily due to lower order bookings during the fiscal year compared with a year ago on lower activity in the consumer products market.

Foreign exchange rate changes negatively impacted the translation of revenues earned by foreign-based ASG subsidiaries by approximately $7.8-million compared with fiscal 2012, primarily reflecting the strengthening of the Canadian dollar relative to the euro.

Earnings from operations were $56.6-million (10-per-cent operating margin) compared with earnings from operations of $60.3-million (10-per-cent operating margin) in the corresponding period a year ago. Excluding a $3.0-million gain relating to the sale of a redundant ASG facility in France, and the benefit of $3.7-million of previously unrecognized U.S. research and development tax credits, both of which were recognized in the third quarter of fiscal 2012, earnings from operations in fiscal 2012 were $53.6-million (9-per-cent operating margin). On a normalized basis, increased earnings from operations in fiscal 2013 primarily reflected reduced selling, general and administrative costs.

ASG order bookings

Fourth-quarter fiscal 2013 order bookings were $170-million, a 9-per-cent decrease from the fourth quarter of fiscal 2012 order bookings of $187-million. Strong order bookings in the transportation market were more than offset by lower order bookings in the life sciences market, which primarily reflected the timing of various larger opportunities, and weakness in the consumer products market.

Fiscal 2013 order bookings were $623-million, a 9-per-cent decrease from fiscal 2012 order bookings of $688-million. Continued strength in life sciences and transportation was offset by lower activity in energy, consumer products and electronics.

Fourth-quarter summary -- discontinued operations: Solar

Fiscal 2013 fourth-quarter revenues of $1.6-million were 84 per cent lower than in the fourth quarter of fiscal 2012 reflecting regulatory delays affecting demand. Ontario Solar recorded a $600,000 loss in the fourth quarter of fiscal 2013. The fourth-quarter loss in fiscal 2012 was $7.9-million, $2.0-million of which related to Ontario Solar and $5.9-million of which related to Photowatt France, which was divested in the second half of fiscal 2012.

Regarding the plan to implement the separation of Solar from ATS, during the year ended March 31, 2013, the company's 50-per-cent-owned joint venture; Ontario Solar PV Fields signed a definitive agreement to sell four ground-mount solar projects, representing approximately 34 megawatts. The transaction is subject to a number of approvals and conditions, including the purchaser securing financing for the projects. The company expects the transaction to close in the first half of calendar 2013. OSPV will retain 25-per-cent ownership of the projects until the projects reach commercial operation, which is expected in calendar 2014. Net proceeds to the company are expected to be approximately $20-million, scheduled to be paid based on the projects achieving certain development milestones. To date, the company has received down payments of $800,000 for its 50-per-cent share of the projects.

The company has signed a definitive agreement to sell the Ontario Solar manufacturing assets and inventory. Delivery of the assets is expected to occur in the second quarter of fiscal 2014. Net proceeds to the company are expected to be approximately $6-million with the final one-third of this amount expected to be paid in the third quarter of fiscal 2014. The company expects to incur restructuring charges of approximately $2-million to complete its obligations related to the sale and wind-down of the business.

Regarding the remaining three ground-mount solar projects, the company has signed a non-binding memorandum of understanding which sets the major commercial terms for the sale of the projects. The company is working to conclude a definitive agreement for the sale of those projects.

Annual results materials

ATS's annual consolidated financial statements, management's discussion and analysis, and annual information form for the year ended March 31, 2013, are available on the company's website and on SEDAR.

Quarterly conference call

ATS's quarterly conference call begins at 10 a.m. Eastern on Thursday, May 23, and can be accessed live on the company's website or on the phone by dialling 416-644-3415 five minutes prior.

                           CONSOLIDATED STATEMENTS OF INCOME                            
                  (in thousands of dollars, except per share amounts)  
            
                                                                 Years ended March 31,
                                                                   2013          2012
Revenues
Revenues from construction contracts                        $   538,150   $   544,052
Sale of goods                                                    24,407        22,019
Services rendered                                                28,541        29,291
                                                            ------------  ------------
Total revenues                                                  591,098       595,362
Operating costs and expenses
Cost of revenues                                                441,182       438,728
Selling, general and administrative                              89,485        94,516
Stock-based compensation                                          3,786         4,857
(Gain) on sale of land and building                                   ?        (2,989)
                                                            ------------  ------------
Earnings from operations                                         56,645        60,250
Net finance costs                                                 2,013         1,565
                                                            ------------  ------------
Income from continuing operations before income taxes            54,632        58,685
Income tax expense                                               13,558        14,670
                                                            ------------  ------------
Income from continuing operations                                41,074        44,015
(Loss) from discontinued operations, net of tax                 (25,991)     (103,521)
                                                            ------------  ------------
Net income (loss)                                           $    15,083   $   (59,506)
                                                            ============  ============
Attributable to
Shareholders                                                     15,031       (59,588)
Non-controlling interests                                            52            82
Earnings (loss) per share attributable to shareholders
Basic -- from continuing operations                         $      0.47   $      0.51
Basic -- from discontinued operations                             (0.30)        (1.19)
                                                            ------------  ------------
                                                                   0.17         (0.68)
Earnings (loss) per share attributable to shareholders
Diluted -- from continuing operations                              0.46          0.51
Diluted -- from discontinued operations                           (0.29)        (1.19)
                                                            ------------  ------------
                                                                   0.17         (0.68)

We seek Safe Harbor.