ATS Automation Tooling Systems Inc. (ATSAF) Q4 2022 Earnings Conference Call May 19, 2022 8:30 AM ET

Company Participants

David Galison - Head of Investor Relations

Andrew Hider - Chief Executive Officer

Ryan McLeod - Chief Financial Officer

Conference Call Participants

David Ocampo - Cormark Securities

Mark Neville - Scotiabank

Maxim Sytchev - National Bank Financial

Justin Keywood - Stifel

Cherilyn Radbourne - TD Securities

Mark Neville - Scotiabank

Operator

Good morning, ladies and gentlemen, welcome to the ATS Automation Fourth Quarter Conference Call and Webcast. This call is being recorded today, May 19, 2022 at 8:30 A.M. Eastern Time. [Operator Instructions]

I would now like to turn the call over to Mr. David Galison, Head of Investor Relations at ATS. Please go ahead, sir.

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 viewed via our webcast and available at atsautomation.com.

We caution that the statements made on our webcast and conference call may contain forward-looking information and our cautionary statement regarding such information including the material factors that could cause actually results to differ materially from the statements and the material factors or assumptions applied in making these 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. We're pleased to report another quarter of profitable growth for ATS featuring record revenues, strong order bookings and order backlog and continued adjusted EBIT margin expansion. Despite challenges in the global business environment, the year as whole saw ATS produce double-digit organic revenue growth while achieving on target contributions from newly acquired businesses. All of this reflected good execution of the ABM playbook by dedicated and resilient ATS teams worldwide. As part of our expand strategy, integration activities with all our recent acquisitions continued in Q4 and we completed the acquisition of HSG. Today, I will update you on our business and then, Ryan will provide his financial report.

Starting with our financial value drivers, Q4 revenues were a record $603 million up 51% from Q4 last year, driven by a combination of acquired businesses and continued strength across our core operations. Organically, revenues grew 11% year-over-year. For the full year, total revenues were up 53%, including 20% from organic growth. Q4 order bookings were $638 million, up 38% year-over-year. Bookings were strong across most market verticals in Q4 and featured key wins within Life Sciences, consumer, transportation and food. For the full year, bookings were up by 51%, driven by acquired businesses. Our adjusted EBIT margin for the quarter was 14.2%, representing margin expansion of 183 basis points from Q4 last year, with strong sequential and full year margin expansion as well.