Automation solutions provider ATS Corporation (TSX: TSX:ATS) (NYSE: ATS) held its Institutional Investor Day on Wednesday, providing additional non-IFRS financial measures and supplementary financial measures to assist investors in understanding the company's performance beyond existing disclosures.
The company highlighted its return on invested capital (ROIC), a measure of capital deployment efficiency. As of March 31, 2023, ATS's ROIC stood at 12.7%. This figure is calculated by dividing tax-effected EBIT for return on invested capital by Average Invested Capital.
In addition to this, ATS disclosed its research expenditures and deferred development additions for fiscal 2023. The company spent $9.3 million on research related to the development of new technologies or products, while deferred development additions amounted to $18.1 million.
The company also shed light on its revenue breakdown, which includes reoccurring revenue, custom integration, equipment/products, and services. Management estimates that reoccurring revenues, defined as revenue from ancillary products and services associated with equipment sales and regular purchases of non-customized ATS products by customers, constitute between 25-35% of total revenues on a trailing twelve-month basis.
In terms of revenue disaggregation for fiscal 2023, custom integration revenues represented 44% of total revenues. This category includes end-to-end manufacturing solutions customized to customer needs. Equipment/products revenues accounted for 29% and included modular or standardized equipment and other products. Services revenues made up the remaining 27% and included consulting, digital and other services, including aftermarket services and spares.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.