ATS(ATS) - 2024 Q2 - Quarterly Report

Financial Performance - For the six months ended September 29, 2024, the company reported an income (loss) before income taxes of $(1,366) thousand, compared to$67,561 thousand for the same period last year[93]. - For the six months ended September 29, 2024, total company revenue was CAD 1,307,051, a decrease from CAD 1,489,365 for the same period in 2023, representing a decline of approximately 12.2%[119]. - The total company revenue for the three months ended September 29, 2024, was CAD 612,781, down from CAD 735,716 for the same period in 2023, reflecting a decline of approximately 16.7%[119]. - Revenue from construction contracts for the three months ended September 29, 2024, was CAD 317,462, compared to CAD 479,755 for the same period in 2023, indicating a decrease of about 33.9%[119]. - The company reported total revenue from external customers in the United States for the six months ended September 29, 2024, at CAD 583,063, compared to CAD 723,755 for the same period in 2023, a decrease of approximately 19.4%[118]. Debt and Financing - As of September 29, 2024, the Company had utilized $732,532 under its Credit Facility, with$732,520 classified as long-term debt[73]. - The Company has additional credit facilities available totaling $110,935, with$19,497 outstanding as of September 29, 2024[78]. - The Company's U.S. $350,000 aggregate principal amount of senior notes bears interest at a rate of 4.125$400,000 aggregate principal amount of senior unsecured notes, bearing interest at a rate of 6.50% per annum, maturing on August 21, 2032[82]. - The Company’s long-term debt as of September 29, 2024, is $1,594,002, up from$1,171,796 on March 31, 2024[85]. - The Company met all financial covenants under its Credit Facility as of September 29, 2024[77]. Restructuring and Cost Management - The North American Electric Vehicle market is experiencing a slowdown in sales growth, leading to reduced investment and program cancellations, prompting the Company to initiate cost structure reductions in its transportation-related businesses, with restructuring expenses of $17,075 recorded in Q2 fiscal 2025[71]. - The total estimated cost of restructuring activities is expected to be at the higher end of the previously disclosed range of$15,000 to $20,000[71]. Stock and Shareholder Activity - During the six months ended September 29, 2024, the Company repurchased 1,020,887 common shares under its normal course issuer bid for$44,983[89]. - The balance of common shares outstanding decreased from 98,219,496 on March 31, 2024, to 96,869,371 on September 29, 2024[90]. - The total number of stock options outstanding increased to 1,048,581 with a weighted average exercise price of $36.16 as of September 29, 2024, compared to 906,218 options at$32.83 as of October 1, 2023[98]. - The company granted 241,327 time-vesting stock options during the six months ended September 29, 2024, with a weighted average exercise price of $45.37[100]. - The stock-based compensation expense for the six months ended September 29, 2024, totaled$6,423 thousand, down from $13,445 thousand for the same period last year[108]. Tax and Deferred Tax - The company recognized an income tax expense related to Pillar Two income taxes of$538 thousand for the three months ended September 29, 2024, and $1,051 thousand for the six months ended September 29, 2024[93]. - The company recognized a deferred tax recovery of$(10,882) thousand for the three months ended September 29, 2024, compared to a deferred tax expense of $9,683 thousand for the same period last year[93]. Contract and Asset Management - Total net contract assets and liabilities as of September 29, 2024, were CAD 344,802, compared to CAD 392,499 as of March 31, 2024, showing a decrease of approximately 12.2$74,280 in the three months ended September 29, 2024, compared to a decrease of $87,212 in the same period last year[134]. - Contract assets increased to$136,775 in the three months ended September 29, 2024, from $15,768 in the previous year[134]. - Accounts payable and accrued liabilities decreased to$72,030 in the latest quarter, compared to $5,031 in the same period last year[134]. - Contract liabilities increased to$120,509 in the three months ended September 29, 2024, from $35,770 in the previous year[134]. - Provisions increased to$8,700 in the latest quarter, compared to a decrease of $1,784 in the same period last year[134]. - Inventories decreased to$8,377 in the three months ended September 29, 2024, from $10,473 in the previous year[134]. - Foreign exchange and other liabilities increased to$7,999 in the latest quarter, compared to $1,397 in the same period last year[134]. - Income tax receivable slightly increased to$2,343 in the latest quarter, compared to $2,219 in the previous year[134]. - Deposits, prepaids, and other assets increased to$9,596 in the three months ended September 29, 2024, from a decrease of $4,297 in the previous year[134]. - Total accounts receivable decreased to$(17,972) in the latest quarter, compared to $(107,220) in the same period last year[134].