“ATS delivered exceptional business results during the second year of the pandemic and effectively managed challenges relating to supply chain, inflation, recruitment and retention, and global uncertainty. ATS was able to successfully integrate seven acquisitions, leverage innovation, and deliver outstanding solutions and service to customers while positioning our Company for further growth. Backed by the ATS Business Model and a culture of continuous improvement, our people and businesses are Stronger Together.”
Fiscal 2022 was, by any measure, an extraordinary year for ATS.
Fiscal 2022 was, by any measure, an extraordinary year for ATS.
The passion and drive of our people enabled us to successfully negotiate the second year of the pandemic and the challenges of supply chain disruptions, rising inflation and global political uncertainty. We met them all head-on to deliver record performance across a range of metrics while remaining true to our purpose: creating solutions that positively impact lives around the world. Across the Company, our people continually showed resilience and ingenuity in overcoming obstacles while also demonstrating the commitment to customers, shareholders and each other that has defined our approach from the beginning. We persevered, overcame and delivered. We are Stronger Together.
Fiscal 2022 presented the world with an uncertain and challenging business environment. However, history shows that those conditions can also create opportunity, and, in that environment, ATS was able to deliver double-digit growth. At the same time, in line with our strategy, we achieved on-target contributions from our recent acquisitions. As a result, our total revenues for fiscal 2022 were up 53%, which includes 20% from organic growth. In addition, our net income increased by 89% on a year-over-year basis, and our full-year Order Bookings, boosted by contributions from our acquired businesses, were up by 51%. We also enjoyed a corresponding share performance. Our adjusted basic earnings per share were $2.17, compared to $1.07 a year ago.
During the year, critical wins from several divisions, including Life Sciences, Food & Beverage, and Transportation, made vital contributions to our booking performance. Life Sciences, in particular, delivered strong performance in the critical sectors of medical devices, pharma and radiopharma, accounting for more than 50% of our year-closing Order Backlog. We ended the year with a $1.4 billion Order Backlog and a book-to-bill ratio of 1.13x setting us up for favourable organic growth. The size and composition of the Order Backlog, which confirm strong demand across our product and service offering, provide ATS with a solid foundation for our business as we head into a new fiscal year.
16.6% compound annual revenue growth over five years
25.2% compound annual growth in adjusted EBITDA over five years
15.8% adjusted EBITDA margin
Throughout fiscal 2022, we continued to deploy capital strategically, maintaining an efficient balance sheet while acquiring companies that can quickly contribute to our bottom line. Over the course of the year, we invested approximately $745 million to complete seven acquisitions (see “Stronger through Acquisitions” on page 13) in areas where we see highly attractive opportunities in both the near and long term. These acquisitions provide us with greater reach and scale, and expand our capacity to meet the evolving needs of our customers. In fiscal 2022, our existing businesses also delivered strong organic growth. In addition, we are excited by the potential we see in the development of after-sales service, which provides predictable revenues while helping strengthen our client relationships further. Finally, we look forward to exciting opportunities across our lines of business as we further leverage digitalization and innovation.
The ATS Business Model – or the ABM, as it’s better known – is now in its fifth year. And over that time, as we’ve grown, evolved our business, entered and exited markets and successfully met the challenge of a global pandemic, it has shown its value every day. It is not simply a management tool or approach; it is the defining element of our culture. Our playbook for solving problems, from the shop floor to a continent away, is an explainable, repeatable model for finding solutions and driving innovation. As we’ve grown, it has provided us with a common language, shared across our Company and operations, that has helped us to successfully pursue and integrate acquisitions (see story about M&A award on page 19) and to connect with new colleagues.
By driving continuous improvement and innovation, and welcoming great ideas, wherever they come from, the ABM has also been instrumental in helping acquired companies bring the best of their culture to ATS.
Our Company culture was recognized this year with two notable top employer awards. First, Forbes magazine included ATS on its Canada’s Best Employers list. This award is based on direct and indirect recommendations from employees and sector peers and a willingness of employees to suggest ATS as an employer to their friends. Later, Canada’s Top 100 Employers named ATS as one of Waterloo Area’s Top Employers for 2022. For over 40 years, Waterloo Region has been our home, and this award is a great honour for our organization.
As fiscal 2022 came to a close, we, like the rest of the world, were concerned and saddened by events in Ukraine. ATS has a small operation in Ukraine that serves as an internal supplier and employs 70 people. Since the crisis began, we have kept in contact with our employees and are extending additional assistance to our team members and their families to help during this challenging time. We also made a $200,000 donation to the Canadian Red Cross through our ATS Community Outreach program. 100% of the donated funds will go toward providing aid to Ukrainians: helping fund mobile health teams, meeting emergency needs and supporting families displaced by war.
For ATS, the pandemic was an important but not a defining factor of fiscal 2022. Using our “Forward Together” pandemic response playbook, developed in fiscal 2021, we collaborated effectively, responded rapidly and met our customers’ needs. However, as the pandemic recedes and the world of work evolves, we need to remember the lessons we learned about adaptability and not being limited by geography, even as we embrace the opportunity to meet with our customers and join with colleagues face to face.
Moving into fiscal 2023, we will continue to look for growth in our strategic industries and sectors – such as life sciences, food & beverage, and energy – where there is a high barrier to entry and value placed on exceptional quality. Our performance over the year shows that we can support one another, colleagues and customers, across a range of evolving challenges, including inflation and supply chain issues. As companies move to grow their businesses, improve quality, find cost savings or de-risk their operation, they will come to ATS for proven solutions and support.
Innovation and the growing impact and importance of digitalization also present tremendous opportunities for ATS. Building on our global reputation as an automation solutions provider, we look forward to providing our customers with game-changing strategic intelligence.
I believe we will remember fiscal 2022 as a pivotal year for our Company. In 2017, we introduced the ABM. Reflecting on the last five years, it has been a remarkable journey for our Company. We have been able to drive change, create growth and deliver value through our focus on People, Process and Performance. In five years, we have been able to more than double our revenues and triple our profitability. We have entered new markets and segments, and invested in people and technology. In a few short years, we have laid a foundation for lasting growth. And in many ways, we are just getting started.
I want to thank our leaders and employees for the energy and commitment they put into making tomorrow better than today. I also want to thank our customers for their confidence in ATS. There is no doubt that, for our Company and the world, there are still many challenges on the horizon, but I also believe we will meet those challenges because, as this year has shown, we are Stronger Together.
ATS produced record results in many areas and ended the year with strong Order Bookings and a solid Order Backlog.
2022 was a year of strong growth driven by our focus on people, process and performance.
ATS has established a global footprint to serve a growing base of customers worldwide.