ATS debt falls from prior year; liquidity, balance sheet are ‘strong’

By Devika Patel

Knoxville, Tenn., Aug. 16 – ATS Automation Tooling Systems Inc. saw its net debt position fall from the prior year to C$41 million from C$99 million.

The company amended its credit facility in the first quarter of fiscal 2018 and extended its term to August 2021.

Management stated that the company has “strong liquidity” and a “strong” balance sheet, with enough credit to support its growth objectives.

“At the end of the first quarter fiscal 2018, our total net debt position was C$41 million, was similar to prior quarter net debt and decreased from last year’s Q1 net debt position of C$99 million,” chief financial officer Maria Perrella said on the company’s first quarter earnings conference call on Wednesday.

“We have a strong balance sheet with available credit which will support our objective of profitable growth,” she said.

“We continue to have strong liquidity with cash on hand of C$279 million and a credit facility of which approximately C$638 million is unused.

“Our capital structure also includes a fixed-interest $250 million bond that matures in 2023,” Perrella said.

Perrella noted that the amended credit facility’s terms are substantially unchanged, with the exception of the maturity extension.

“Subsequent to our quarter-end, in July, we extended our C$750 million credit facility, which was due to expire a year from now, for an additional three years until August of 2021,” she said.

“Terms are substantially the same as the original credit agreement,” Perrella said.

First quarter EBITDA was C$30.2 million, compared to C$31.5 million a year ago.

The company had unused credit facilities of C$638.1 million.

At July 2, ATS had cash and cash equivalents of C$279.4 million, compared to C$286.7 million at March 31.

Based in Cambridge, Ont., ATS provides custom designed, built and installed manufacturing solutions to customers in industries such as health care, electronics, automotive and consumer products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.