ATS Automation Tooling Systems Inc. (ATSAF) Q1 2023 Earnings Conference Call August 10, 2022 8:30 AM ET

Company Participants

David Galison - Head of IR

Andrew Hider - CEO

Ryan McLeod - CFO

Conference Call Participants

David Ocampo - Cormark Securities

Mark Neville - Scotiabank

Justin Keywood - Stifel GMP

Maxim Sytchev - National Bank Financial

Operator

Good morning, ladies and gentlemen, welcome to the ATS Automation First Quarter Conference Call and Webcast. This call is being recorded on August 10th, 2022 at 8:30 AM Eastern Time. [Operator Instructions]

I'll now turn the call over to David Galison, Head of Investor Relations at ATS.

David Galison

Thank you, operator and good morning everyone. On the call today are Andrew Hider, Chief Executive Officer of ATS; and Ryan McLeod, Chief Financial Officer. Please note that our remarks today are accompanied by a slide deck, which can be viewed via our webcast and available at atsautomation.com.

We caution that the statements made on the webcast and conference call may contain forward-looking information and our cautionary statement regarding such information, including the material factors that could cause actual results to differ materially from the statements and the material factors or assumptions applied in making the statements, are detailed on Slide 2 of the slide deck.

Now, it's my pleasure to hand over the call to Andrew.

Andrew Hider

Thank you, David. Good morning, ladies and gentlemen, and thank you for joining us.

Today, ATS reported another quarter of profitable year-over-year growth. This quarter also featured record revenues, order bookings, and order backlog, all delivered in a challenging and fluid economic and business environment.

Our results reflect our focus on strategic markets and the ongoing application of the ABM playbook by our dedicated global teams. As part of our Expand strategy, integration activities progressed with all of our acquisitions from last year and we remain on target with our goals.

Today, I will update you on the business and Ryan will provide his financial report. Starting with our financial value drivers. Q1 revenues were a record CAD611 million, up 20% from last year driven by a combination of acquired businesses and continued strength across our core operations. Organic revenue growth was 6% year-over-year. Order bookings for the quarter were CAD736 million, up 16% year-over-year and featured key wins in both life sciences and transportation.

Our adjusted EBIT margin in Q1 was 14.3%. Moving to our outlook, we finished with approximately $1.6 billion of order backlog that includes several large enterprise programs with long durations providing a solid base of business. Our backlog remains distributed across diversified regulated industries where quality and reliability are mandatory.