ATS selects financial advisor for Solar Group; adds
Solar CFO to further round out executive team
TSX: ATA
CAMBRIDGE, ON, Jan. 3 /CNW/ - ATS Automation Tooling Systems Inc. today
announced it has selected BMO Nesbitt Burns as financial adviser to assist in
assessing and pursuing financing opportunities and strategic alternatives for
its growing Solar Group.
"I believe there is tremendous value in our Solar assets, and the
appointment of a financial adviser represents an important next step in our
plans to unlock the value of this investment for our shareholders," said Ron
Jutras, ATS President and CEO. "Together with the Solar Committee of our Board
of Directors, the Solar Group management team will work with BMO Nesbitt Burns
to help us assess the funding strategies for our Solar Group. In addition to
considering other alternatives, this will include an assessment of the merits
of a possible public offering of securities of our Solar Group. We're
continuing to execute a deliberate, focused approach to enable us to fund and
rapidly grow our Solar business for the benefit of ATS shareholders."
Consistent with its future plans for the Solar Group and to further
strengthen Solar Group's management, the Company also announced the
appointment of James E. Kopperson, CA, CPA, as Solar Group's first Chief
Financial Officer. Mr. Kopperson was most recently Chief Financial Officer and
Vice President of Corporate Development of RDM Corporation, a publicly traded
Canadian manufacturing company. Earlier in his 14 year career, Mr. Kopperson
was a partner with KPMG and served in the Office of the Chief Accountant, the
Ontario Securities Commission. He will report to Syl Ghirardi, Solar Group's
President and CEO.
"In James, we have found an outstanding professional with qualifications
earned in both public accounting and in the corporate world," said Mr.
Ghirardi. "At this stage in our development, James will fill a very important
and necessary role in Solar Group's executive management team. On behalf of
our management team, I look forward to working with James and BMO Nesbitt
Burns as well as the special Solar Committee of our Board of Directors, as we
continue to execute our strategic plan for Solar."
ATS in Solar
Demand for solar power is growing rapidly around the world due to a
number of long-term drivers, including growing energy usage, the demand for
clean, renewable energy sources, the escalating price and scarcity of fossil
fuels and government incentives.
ATS's Solar Group began in 1997 and today consists of Photowatt
International, a leading, vertically integrated, manufacturer of conventional
solar cells and modules, and ATS's Spheral Solar Power division (SSP), a
developer and now emerging manufacturer of innovative next-generation solar
technology products. To date, all reported revenue and earnings of the ATS
Solar Group have been generated from Photowatt. For the first six months of
the ATS current fiscal year, ATS Solar segment revenues were $70.1 million and
earnings from operations (EBIT) were $9.7 million, representing an operating
margin of 13.8%. Solar is now ATS's second largest operating segment and in
fiscal 2005, represented approximately 19% of consolidated revenue.
Photowatt
ATS acquired Photowatt of Bourgoin-Jallieu, France in 1997. Since that
time, ATS has applied its automation technology to expand Photowatt and make
it a profitable international solar energy company. The increasingly strong
financial performance of Photowatt reflects growing market demand, ongoing
capacity expansion and significant improvements in production yields,
throughput gains, cost reduction initiatives and optimization of significant
capital investments made by ATS since acquisition.
Spheral Solar Power (SSP)
SSP is a next generation proprietary solar technology that Solar Group is
currently developing for commercial manufacture and introduction. Management
believes that the lightweight, pliable and durable characteristics of SSP-
based solar products address multiple application opportunities and attractive
markets not well served by conventional solar products. Some of these
applications include portable power as well as solar-embedded residential
roofing tiles and commercial roofing membranes. SSP technology is expected to
be able to deliver these products with an attractive manufacturing cost and
lower silicon usage relative to products manufactured using conventional solar
technology.
Since embarking on the start up and commercialization of the technology
in July 2002, ATS has made considerable progress with SSP. In addition to
developing the innovative processes and first high volume production equipment
required to enable production of the technology, ATS has constructed and
opened the first automated, fully-integrated SSP solar cell factory in
Cambridge, Ontario, Canada. Initial manufacturing of SSP solar cells recently
began in this 193,000 sq ft facility and work required to optimize production
throughput, yields and cell efficiency is now underway. The SSP initiative has
been partially funded by Technology Partnerships Canada.
About BMO Nesbitt Burns
BMO Nesbitt Burns (www.bmo.com), the investment and corporate banking
practice of BMO Financial Group, offers corporate, institutional and
government clients a complete range of financial services, including capital
raising, structured finance, M&A, treasury and market risk management
services, research and institutional investing. In the U.S., under the Harris
Nesbitt name, it offers these services to institutional and corporate clients,
focusing on selected sectors in the middle market.
About ATS
ATS Automation Tooling Systems Inc. (www.atsautomation.com) is the
industry's leading designer and producer of turn-key automated manufacturing
and test systems, which are used primarily by multinational corporations
operating in a variety of industries including: healthcare, automotive,
computer/electronics and consumer products. Through its Solar Group, ATS is
also an emerging leader in the rapidly growing market for solar energy cells
and modules. The Company also makes precision components and subassemblies
using its process knowledge and automation technology. ATS employs
approximately 3,900 people at 25 manufacturing facilities in Canada, the
United States, Europe and Asia-Pacific. The Company's shares are traded on the
Toronto Stock Exchange under the symbol ATA.
Certain statements in this press release contain forward-looking
information within the meaning of applicable securities laws ("forward-looking
statements"). Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results, performance
or achievements of ATS, or developments in ATS's business or in its industry,
to differ materially from the anticipated results, performance, achievements
or developments expressed or implied by such forward-looking statements.
Forward-looking statements include all disclosure regarding possible events,
conditions or results of operations that is based on assumptions about future
economic conditions and courses of action. Forward-looking statements may also
include, without limitation, any statement relating to future events,
conditions or circumstances. ATS cautions you not to place undue reliance upon
any such forward-looking statements, which speak only as of the date they are
made. Forward-looking statements relate to, among other things, assessing and
pursuing financing opportunities and strategic alternatives for ATS' Solar
Group, realizing the value of ATS's Solar Group investment, completing
financing for the Solar Group, capitalizing on increasing market demand for
solar technology, executing on ATS's strategic plan for the Solar Group, the
demand for SSP products and solar energy, SSP-based solar products' ability to
address application opportunities and markets not well served by conventional
solar products, and optimizing SSP solar cell production throughput, yields
and cell efficiency. The risks and uncertainties that may affect forward-
looking statements include, among others, risks involved in successfully
developing and commercializing SSP technology on a cost-effective basis,
ability to achieve lower silicon usage relative to conventional solar
technology, the cost and availability of silicon and other raw materials and
certain specialized manufacturing tools and fixtures used in the production of
SSP's products, the successful expansion of production capability and adoption
of new production processes, the extent of market demand for solar products
such as those developed by SSP, the availability of government subsidies for
solar products, the development of superior or alternative technologies to
those developed by ATS, the success of competitors with greater capital and
resources in exploiting their technology and marketing their products and
other risks detailed from time to time in ATS's filings with Canadian
provincial securities regulators, including ATS's Annual Report and Annual
Information Form for the fiscal year ended March 31, 2005. Forward-looking
statements are based on management's current plans, estimates, projections,
beliefs and opinions, and ATS does not undertake any obligation to update
forward-looking statements should assumptions related to these plans,
estimates, projections, beliefs and opinions change.
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For further information: Carl Galloway, VP Treasurer; Gerry Beard, VP, CFO, (519) 653-6500