ATS Corp (ATS) 2024 Q3 法說會逐字稿

Third Quarter Conference Call and Webcast. This call is being recorded on February seventh, 2020 for sensors. And I'll now turn the call over to David Galison, Head of Investor Relations at ATS.

第三季電話會議和網路廣播。此通話是在 2020 年 2 月 7 日針對感測器進行錄製的。我現在會把電話轉給 ATS 投資者關係主管 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 ATS Automation.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 those 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 turn the call over to Andrew.

謝謝接線員，大家早安。今天參加電話會議的有 ATS 執行長 Andrew Hider 和財務長 Ryan McLeod。請注意，我們今天的講話附有幻燈片，可以透過我們的網路廣播觀看，也可以在 ATS Automation.com 上取得。我們提醒您，網路廣播和電話會議上的聲明可能包含前瞻性資訊以及我們對此類資訊的警告聲明，包括可能導致實際結果與這些聲明存在重大差異的重要因素以及在做出這些聲明時所採用的重要因素或假設。投影片的第二張投影片詳細介紹了這些陳述。現在我很高興將電話轉給安德魯。

Thank you, David. Good morning, everyone, and thank you for joining us today. We reported strong third quarter organic revenue growth, good contributions from recent acquisitions and adjusted earnings in line with our expectations as we build on the momentum achieved in the first half of the year. We completed the acquisition of avidity, which further expands our life sciences products and services offerings. This complementary to our existing businesses at the beginning of Q4, RPA solution via an Italian-based automation integrated with a focus on primary processing and pharmaceuticals, avidity and Atoka. For the most recent examples of how we use acquisitions to drive our strategy and evolve our portfolio. We are pleased to welcome both teams to ATS.

謝謝你，大衛。大家早安，感謝您今天加入我們。我們報告第三季度有機收入成長強勁，近期收購的良好貢獻以及調整後的收益符合我們的預期，因為我們在上半年取得的勢頭的基礎上繼續前進。我們完成了對 avidity 的收購，進一步擴大了我們的生命科學產品和服務範圍。這對我們在第四季度初的現有業務進行了補充，RPA 解決方案透過基於義大利的自動化集成，重點關注初級加工和製藥、avidity 和 Atoka。有關我們如何利用收購來推動我們的策略和發展我們的產品組合的最新範例。我們很高興歡迎兩個團隊加入 ATS。

Now I will update you on the business and our markets, and then Ryan will provide his financial report, starting with our financial value drivers. Order bookings for the quarter for $668 million, supported by organic growth in life sciences and strong performance in food and beverage. The underlying trends driving demand for HR solutions remain favorable. Q3 revenues were $752 million, up 16% from Q2 last year, including organic growth of 9%.

現在我將向您介紹業務和市場的最新情況，然後瑞安將提供他的財務報告，從我們的財務價值驅動因素開始。本季訂單預訂金額為 6.68 億美元，這得益於生命科學領域的有機成長以及食品和飲料領域的強勁表現。推動人力資源解決方案需求的基本趨勢仍然有利。第三季營收為 7.52 億美元，比去年第二季成長 16%，其中有機成長 9%。

Adjusted earnings from operations in Q3 were $101 million, up 17% versus Q3 last year. Moving to our outlook. Our backlog held strong at over $1.9 billion by market, and our LifeSciences backlog is up 10% compared to Q3 last year at a record $875 million, supported by wins in key areas, including auto injectors and contact lenses.

第三季調整後營運利潤為 1.01 億美元，比去年第三季成長 17%。轉向我們的展望。我們的市場積壓訂單保持在超過19 億美元的強勁水平，而我們的生命科學積壓訂單比去年第三季度增長了10%，達到創紀錄的8.75 億美元，這得益於在自動注射器和隱形眼鏡等關鍵領域取得的勝利。

We remain focused on opportunities to provide expanded or integrated solutions to our customers. For example, we secured a new order as a result of an innovative offering that includes bio that's dispensing technology and Supertech smart conveyance technology as part of a diagnostic cartridge assembly system. Our Life Sciences opportunity funnel remains strong, supported by market growth, including increased consumer demand for auto injectors, driven by GLP-1 drugs.

我們仍然專注於為客戶提供擴展或整合解決方案的機會。例如，我們透過創新產品獲得了一份新訂單，其中包括作為診斷盒組裝系統一部分的生物分配技術和 Supertech 智慧傳輸技術。我們的生命科學機會漏斗依然強勁，這得益於市場成長，包括在 GLP-1 藥物的推動下，消費者對自動注射器的需求增加。

In Transportation backlog was $564 million, down 36% compared to Q3 last year, reflecting ongoing execution of large programs, one in the last fiscal year, along with expected variability in program awards in this market, we are working with one of our OEM customers to support their revised timing on a portion of their existing program. While the near-term market for electric vehicles remains dynamic as OEMs look to lower platform costs and align capacity to end market demand, the long-term fundamentals remain intact and support demand for our solutions. Our transportation funnel is strong, reflects diversified long-term opportunities to support our test is putting to partner with customers by providing flexible solutions.

在運輸方面，積壓訂單為5.64 億美元，與去年第三季相比下降了36%，反映出大型專案（上一財年的一個專案）的持續執行，以及該市場專案獎項的預期變化，我們正在與我們的OEM 客戶合作支援他們對現有計劃的一部分進行修改的時間表。雖然隨著原始設備製造商尋求降低平台成本並根據終端市場需求調整產能，電動車的近期市場仍然充滿活力，但長期基本面保持不變並支持對我們解決方案的需求。我們的運輸管道很強大，反映了多元化的長期機會來支持我們的測試透過提供靈活的解決方案與客戶合作。

We are well positioned as the EV market continues to evolve. In food and beverage. Q3 bookings were strong as expected, and our ending backlog was $207 million. Notably we successfully secured our first IoT order for a tomato processing line. Our food and beverage businesses are focused on innovation and customer experience, including aftermarket service. As we expand our offerings to our customers and energy. Our funnel remains strong and is it refurbishment of existing nuclear reactors and an investment in new reactors providing sustainable clean energy. Ats has the experience specialized skills and proven track record to support customers with their energy initiatives. And consumer products.

隨著電動車市場的不斷發展，我們處於有利地位。在食品和飲料中。第三季的預訂量如預期強勁，最終積壓訂單達 2.07 億美元。值得注意的是，我們成功獲得了第一個番茄加工線的物聯網訂單。我們的食品和飲料業務專注於創新和客戶體驗，包括售後服務。隨著我們向客戶和能源擴展我們的產品。我們的管道仍然強勁，是翻新現有核反應器並投資提供可持續清潔能源的新反應器。 ATS 擁有豐富的專業技能和良好的業績記錄，可以支援客戶的能源計畫。和消費品。

Our funnel is stable. However, customers are continuing to evaluate their investments in the current economic climate, which may impact the timing of some opportunities on After Sales Services. Our consistent investment in the strategic area has included developing our digital solutions as these solutions evolve position to provide performance insights through our connected asset value chain and support our shift towards providing higher value services and both ATSN. nine ATS. equipment.

我們的漏斗是穩定的。然而，客戶正在繼續評估當前經濟環境下的投資，這可能會影響售後服務中某些機會的時機。我們在策略領域的持續投資包括開發我們的數位解決方案，因為這些解決方案不斷發展，透過我們的互聯資產價值鏈提供績效洞察，並支持我們向提供更高價值的服務和 ATSN 的轉變。九個苯丙胺類興奮劑。裝置.

During the quarter. We also security synergy with Triad and our life sciences business to identify OE. improvement opportunities for a customer on our digital offerings across the autumn patient value chain. Our funnel is strong, and we remain focused on developing our capabilities, utilizing an integrated architecture to help our customers, collect and analyze data and an efficient manner to drive performance. During the quarter, a global pharma customer or ATS, to contract to build their IoT platform for data actions on supply chain, lead times and material cost pressures continue to challenge in some areas of the business, which our teams consistently work to offset to the use of our supply chain levers and APM tools for increasingly leveraging digital tools to drive insights and opportunities. Abm activity and engagement remains strong, and we measure and monitor our success to identify areas for ongoing improvement and employment of our tools across the organization. During the quarter, we hosted our ABM global conference with a focus on ATS Business Model principles, processes and tools to achieve impact on our value drivers on M&A, we continue to expand our portfolio and our integration efforts with ability and the taco are underway and progressing according to plan.

本季期間。我們也透過與 Triad 和我們的生命科學業務的安全協同來識別 OE。為客戶提供整個秋季患者價值鏈中數位產品的改進機會。我們的管道很強大，我們仍然專注於發展我們的能力，利用整合架構來幫助我們的客戶，收集和分析數據，並以有效的方式提高績效。本季度，全球製藥客戶或 ATS 簽訂合約建立其物聯網平台，用於供應鏈上的數據操作，交貨時間和材料成本壓力繼續在某些業務領域面臨挑戰，我們的團隊始終致力於抵消這些挑戰利用我們的供應鏈槓桿和APM 工具，越來越多地利用數位工具來推動洞察和機會。反導活動和參與度仍然強勁，我們衡量和監控我們的成功，以確定在整個組織中持續改進和使用我們的工具的領域。本季度，我們舉辦了ABM 全球會議，重點關注ATS 商業模式原則、流程和工具，以實現對併購價值驅動因素的影響，我們繼續擴大我們的產品組合，我們的能力與taco 的整合工作正在進行中，正在按計劃進行。

Our M&A funnel remains an active, healthy and diversified across all target sizes will remain disciplined in our approach and assessment of each target on ESG. Ats scientific products earned a silver medal as part of the EcoVadis sustainability program, an improvement from brands last year. This award is a testament to the SP. team's commitment to promoting sustainable practices and reducing our environmental impact. Additionally, avidity recently launched the world's first water platform system for reusable cartridges that helps customers reduce their environmental footprint. We consistently work to identify ways to demonstrate our commitment to ESG principles and priorities across the organization as well for our customers on innovation, we remain focused on strategically investing capital to create solutions that drive returns for our customers.

我們的併購管道在所有目標規模上仍然保持活躍、健康和多元化，我們對每個 ESG 目標的方法和評估也將保持嚴格。作為 EcoVadis 永續發展計畫的一部分，ATS 科學產品獲得了銀牌，這比去年的品牌有所進步。這個獎項是對SP的證明。團隊致力於促進永續實踐並減少對環境的影響。此外，avidity 最近推出了世界上第一個用於可重複使用濾芯的水平台系統，可幫助客戶減少對環境的影響。我們始終致力於尋找方法來證明我們對整個組織以及客戶創新的 ESG 原則和優先事項的承諾，我們仍然專注於策略性投資資本，以創建可為客戶帶來回報的解決方案。

And a few highlights for the quarter. In life sciences or commentary, the team developed a new software product for use by customers in the therapeutic Radiopharma market, specifically to allow nuclear medicine departments to link dose preparation inflammation directly to central hospital data systems. On Symphony RH., yes, Innovation Center continues to develop new solutions for auto injector device assembly alone for threaded components to be connected together at very high speed and accuracy.

以及本季的一些亮點。在生命科學或評論領域，該團隊開發了一種新的軟體產品，供治療性 Radiopharma 市場的客戶使用，特別是允許核醫學部門將劑量準備發炎直接連結到中央醫院數據系統。在 Symphony RH 上，是的，創新中心繼續開發用於自動注射裝置組裝的新解決方案，以便將螺紋組件以非常高的速度和精度連接在一起。

In food and beverage, Komag announced the launch, but 3D scanning vision system that helps to automate speed up the inspection and sorting of kegs, part of them being filled and to drive our effort. Ats posted its first ever global innovation summit in November, which included over 50 at ATSs top inhibitors with the purpose of sharing technologies, innovation trends and opportunities to accelerate technology development, including incorporating a I and our innovation approach and how we operate daily. In summary, our Q3 performance, including strong revenue and earnings growth.

在食品和飲料領域，Komag 宣布推出 3D 掃描視覺系統，該系統有助於自動化加速對小桶的檢查和分類，其中部分已填充，並推動我們的努力。 ATS 於11 月舉辦了首屆全球創新高峰會，其中包括50 多名ATS 頂級抑制劑，目的是分享技術、創新趨勢和加速技術開發的機會，包括將I 與我們的創新方法以及我們的日常運作方式相結合。總而言之，我們第三季的業績，包括強勁的營收和獲利成長。

Our opportunity fund. These acquisitions are performing to plan, and we remain confident in our ability to continue our trajectory and creating shareholder value. We are pleased to see a ATS. recognized once again as one of Waterloo region's top employers. Ats was founded in the Waterloo Ontario region over 45 years ago. And today, our team members continue to bring their best every day to serve our customers and grow our business. We remain guided by the AGM as our playbook we deliver on our shared purpose to create solutions that positively impact clients around the world. Now I will turn the call over to Ron Ryan, over to you.

我們的機會基金。這些收購正在按計劃進行，我們對繼續發展軌跡和創造股東價值的能力充滿信心。我們很高興看到 ATS。再次被評為滑鐵盧地區最佳雇主之一。 Ats 於 45 年前在安大略省滑鐵盧地區成立。今天，我們的團隊成員每天都繼續竭盡全力為我們的客戶服務並發展我們的業務。我們仍然以年度股東大會為指導，將其作為我們的共同目標，即創建對世界各地客戶產生積極影響的解決方案。現在我將把電話轉給 Ron Ryan，轉給你。

Thank you, Andrew. And good morning, everyone. Ats delivered strong financial results this quarter with organic revenue growth margin improvement. And we finished the quarter with a strong balance sheet. Starting with our operating results for the quarter, order bookings were $668 million, down 31.8% compared to Q3 last year.

謝謝你，安德魯。大家早安。 ATS 本季取得了強勁的財務業績，有機收入成長率有所提高。我們在本季結束時擁有強勁的資產負債表。從本季的經營業績來看，訂單預訂量為 6.68 億美元，比去年第三季下降 31.8%。

As a reminder, Q3 last year included $300 million of orders from an EV customer which were not expected to repeat this quarter. Of note in Q three this year, we drove year-over-year bookings growth in life sciences, including strong organic growth in addition to contributions from recently acquired companies, including avidity, our trailing 12-month book-to-bill ratio at the end of Q3 was [0.95 to 1] by market vertical. Our trailing 12-month book-to-bill at the end of Q3 was at or greater than one in all markets with the exception of transportation.

提醒一下，去年第三季包括電動車客戶的 3 億美元訂單，預計本季不會再出現這種情況。值得注意的是，今年第三季度，我們推動了生命科學領域的預訂量同比增長，除了最近收購的公司的貢獻外，還包括強勁的有機增長，包括avidity，我們過去12 個月的預訂與賬單比率以垂直市場劃分，第三季末的比率為 [0.95 比 1]。截至第三季末，我們過去 12 個月的訂單出貨比在所有市場（運輸除外）中均等於或大於 1。

We have previously noted that as we continued to execute on our large programs as an easy market, we do expect to see longer periods between ordering cycles. On revenues, Q3 revenues were $752 million, up 16.2% over Q3 last year. Organic revenue growth was 9.1% in the quarter. Recently acquired companies added approximately 5% to revenue growth and foreign exchange translation had a positive impact of 2.5% compared to Q3 last year.

我們之前已經指出，隨著我們繼續在寬鬆的市場中執行大型計劃，我們確實預計訂購週期之間的時間會更長。營收方面，第三季營收為 7.52 億美元，比去年第三季成長 16.2%。本季有機收入成長 9.1%。最近收購的公司使收入成長約 5%，與去年第三季相比，外匯換算產生了 2.5% 的正面影響。

We finished Q3 with just over $1.9 billion of order backlog. Looking ahead, our revenue conversion for Q4 is estimated to be in the 36% to 39% range of order backlog. As a reminder, this assessment is updated every quarter based on revenue expectations from existing backlog and new orders booked and billed within the core conversion range.

第三季結束時，我們的積壓訂單略高於 19 億美元。展望未來，我們第四季的營收轉換預計將在積壓訂單的 36% 至 39% 範圍內。提醒一下，此評估每季根據現有積壓訂單的收入預期以及在核心轉換範圍內預訂和計費的新訂單進行更新。

Because in the impact of approximately $200 million of transportation order backlog was one of our EV customers that has been delayed. Moving to earnings. Q3. Adjusted earnings from operations were $101.2 million 17% from Q3 last year, primarily due to revenue growth. Adjusted earnings from operations margin was 13.5% in the quarter, up 13 basis points compared to last year, reflecting improved operating leverage.

因為在大約 2 億美元的運輸訂單積壓的影響下，我們的電動車客戶之一被推遲了。轉向盈利。 Q3。調整後的營運利潤為 1.012 億美元，較去年第三季成長 17%，主要是由於營收成長。本季調整後營運利潤率為 13.5%，較去年上升 13 個基點，反映出營運槓桿有所改善。

Our Q3 gross margin, excluding acquisition related inventory, fair value charges was 28.5%, up 12 basis points from Q3 last year, reflecting higher volumes and acquisitions going forward with an EBIT customer realigning its person schedule, resulting in a delay of ATSs execution on this contract in our backlog, we expect to see some near-term margin pressure in this part of our business. We are actively mitigating this utilization pressure by redeploying resources on the other programs, including in our lifetime.

我們第三季的毛利率（不包括收購相關的庫存）公允價值費用為28.5%，比去年第三季上升12 個基點，反映出隨著息稅前利潤客戶重新調整其人員安排，未來的交易量和收購量增加，導致ATS 的執行延遲由於我們的積壓合同，我們預計這部分業務的近期利潤率將面臨一些壓力。我們正在透過在其他計劃（包括在我們的一生中）重新部署資源來積極減輕這種利用壓力。

So our expectations for this program to restart the first quarter of our fiscal '25. On supply chain material cost pressures still present for some categories of spend, most notably for electrical and mechanical parts, where lead times remain a challenge, lead times and generally improved and others. As we've previously noted, short-term inefficiencies caused by extended lead times in our supply chain impact our ability to drive margin expansion.

因此，我們預計該計劃將在 25 財年第一季重新啟動。在供應鏈上，某些類別的支出仍然存在材料成本壓力，尤其是電氣和機械零件，其中交貨時間仍然是一個挑戰，交貨時間普遍得到改善等。正如我們先前指出的，供應鏈交貨時間延長導致的短期效率低下會影響我們推動利潤擴張的能力。

Despite these ongoing challenges, our teams are well equipped to drive performance and mitigate these impacts for our customers. Moving to SG&A. Expenses were $6.9 million higher than Q3 last year and included $17.1 million of acquisition related amortization in 900,000 of acquisition related transaction costs, partially offset by an $11.7 million gain on the sale of two redundant. Excluding these items, Q. threes, SG&A was $107.9 million or $14.7 million higher than last year, primarily due to increased employee costs. Incremental SG&A expenses from acquisitions and foreign exchange translation impacts.

儘管面臨這些持續存在的挑戰，我們的團隊仍然有能力提高績效並減輕對客戶的影響。轉向 SG&A。費用比去年第三季高出 690 萬美元，其中包括 90 萬筆收購相關交易成本中的 1,710 萬美元收購相關攤銷，部分被出售兩台冗餘設備的 1,170 萬美元收益所抵銷。排除這些項目，Q. Threes，SG&A 為 1.079 億美元，比去年增加 1,470 萬美元，主要是由於員工成本增加。收購和外匯換算影響帶來的增加 SG&A 費用。

Stock based compensation expense for Q3 was $4.7 million, excluding the mark-to-market impact related to changes in our share price. Stock based compensation expense was $5.3 million in Q3 compared to an expense of $4.3 million last year. On earnings per share or EPS was $0.48 in Q3, up 50% over last year. Our adjusted EPS was up 16.1% to $0.65 in Q3, primarily reflecting growth in revenues we've begun to implement our previously announced reorganization plan.

第三季的股票補償費用為 470 萬美元，不包括與股價變動相關的市值計價的影響。第三季的股票補償費用為 530 萬美元，去年的費用為 430 萬美元。第三季每股盈餘或 EPS 為 0.48 美元，比去年同期成長 50%。第三季調整後每股收益成長 16.1%，達到 0.65 美元，主要反映了我們已經開始實施先前宣布的重組計劃的收入成長。

In Q3, we increased $16.2 million of costs, with total expected costs of approximately $20 million. The majority of the remaining costs are expected to be incurred in the fourth quarter. We anticipate that these targeted cost reductions will allow us to it invest further into accelerating growth in areas of the business to provide opportunity for higher returns and support of our strategic growth plans.

第三季度，我們增加了 1,620 萬美元的成本，預計總成本約為 2,000 萬美元。大部分剩餘成本預計將在第四季度產生。我們預計，這些有針對性的成本削減將使我們能夠進一步投資於加速業務領域的成長，從而提供更高回報的機會並支持我們的策略成長計劃。

Next. Moving to the balance sheet. In Q. three, cash was generated by operating activities were $110.5 million, reflecting the timing of project progress and milestone billings and payments, primarily on our large EV programs. Non-cash working capital as a percentage of revenue was 17.8% at the end of Q3, down from 18.4% at the end of Q2, again, primarily reflecting a reduction in working capital and investments and our large EV programs.

下一個。轉向資產負債表。第三季度，經營活動產生的現金為 1.105 億美元，反映了專案進度以及里程碑帳單和付款的時間，主要是我們的大型電動車專案。第三季末非現金營運資本佔收入的百分比為 17.8%，低於第二季末的 18.4%，這主要反映了營運資本和投資以及我們的大型電動車專案的減少。

In the short term, we continue to expect working capital to remain variable total year to date, investments in CapEx and intangible assets were $62.5 million, which included $17.7 million in Q three. Our planned fiscal 2014 CapEx investment of $80 million to $100 million has flexibility, and we expect to be in the lower end of this range for the year.

短期內，我們繼續預期今年迄今的營運資本總額將保持不變，資本支出和無形資產投資為 6,250 萬美元，其中第三季為 1,770 萬美元。我們計劃的 2014 財年資本支出投資為 8,000 萬至 1 億美元，具有靈活性，我們預計今年將處於該範圍的下限。

On leverage. Our net debt to adjusted EBITDA ratio was 2.3 to 1 as of the end of Q3, in line with our target leverage range of two to three times net debt to adjusted EBITDA.

關於槓桿。截至第三季末，我們的淨負債與調整後 EBITDA 比率為 2.3 比 1，符合我們淨負債與調整後 EBITDA 兩到三倍的目標槓桿範圍。

In the quarter, we funded the acquisition of avidity with cash on hand and by drawing on our credit facility. It's early days in integration. Efforts are progressing as planned. We look forward to our continued work with the avidity team along with the Taco .

在本季度，我們利用手頭現金和信貸額度為收購 avidity 提供了資金。現在還處於整合的早期階段。努力正在按計劃進行。我們期待與 avidity 團隊以及 Taco 繼續合作。

In summary, our quarterly performance once again highlighted the strength of our diversified and evolving portfolio and positions and strategic end markets going forward. But we'll continue applying measures to combat challenges, including those still lingering in our supply chain. Strong order backlog in our key market. It's once again provides good revenue visibility over the next several quarters. We remain confident in our team's ability to drive our strategy supported by the AGM, which will continue to unite service employees, our customers and long term value creation for our shareholders. Now we will open the call to questions from our analysts. Operator, could you please provide instructions?

總之，我們的季度業績再次凸顯了我們多元化和不斷發展的投資組合和地位以及未來策略終端市場的實力。但我們將繼續採取措施來應對挑戰，包括那些仍存在於我們供應鏈中的挑戰。我們的主要市場積壓訂單強勁。它再次提供了未來幾個季度良好的收入可見性。我們對我們的團隊在年度股東大會的支持下推動我們策略的能力仍然充滿信心，這將繼續團結服務員工、我們的客戶並為我們的股東創造長期價值。現在我們將開始接受分析師提問。接線生，您能指點一下嗎？

Thank you. I mean at this time, I would like to remind everyone in order to ask a question, please press star followed by the number one on your telephone keypad. To withdraw your question, press star one again. Your first question comes from Cherilyn Radbourne with TD Cowen. Please go ahead.

謝謝。我的意思是，此時，我想提醒大家，要問，請按星號，然後按電話鍵盤上的數字一。若要撤回您的問題，請再次按星號一。你的第一個問題來自 Cherilyn Radbourne 和 TD Cowen。請繼續。

Good morning, everyone. Thank you for taking my questions. This is Pat falling online on the ABI shale. And I think last quarter you were able to give us a breakdown on auto-injector bookings. I'm wondering if you have a comment on the level of quality, Autodesk and looking at this quarter and then if you're able to provide a breakdown with respect to the competition bookings by customers, I guess what is the level of competition you're seeing in that end market?

大家，早安。感謝您回答我的問題。這是帕特 (Pat) 在 ABI 頁岩上的表現。我認為上個季度您向我們提供了自動注射器預訂的詳細資訊。我想知道您是否對 Autodesk 的品質水平以及本季度的情況有何評論，然後如果您能夠提供有關客戶競爭預訂的詳細信息，我猜您的競爭水平是多少在那個終端市場看到了什麼？

Yes, good morning, Bob. We actually won a key word within the quarter. And it was an existing customer to new production line for this customer. And we continue to see this as a real area of opportunities. And to walk that, it's a bit more specific and to give you some some guidance as to ATSs position because it will help as we talk about competition as read and the competitive landscape, ATS invested in technology with Symphony. And it's our platform that allows us to do when you're building a process, you can do it in motion. And why that matters is when you look at output, it allows us to actually be up to almost two real time is the output at roughly half the footprint and a real key enabler. And it's just one of the areas that we look at from a standpoint of how innovation allows us to differentiate and really offer high value for our customers. As they continue to look at maximizing their launch and maximize the impact. And to give you a bit more context on the market. And certainly, there's multiple reports out about this space, whether it's the JPMorgan structure around going from $18 billion to $100 billion to our or even Morgan Stanley and significant level of increase on our mission has always been really enabling our customers to maximize their launch.

是的，早安，鮑伯。我們實際上在本季度贏得了一個關鍵字。這是一個為該客戶新建生產線的現有客戶。我們仍然認為這是一個真正充滿機會的領域。為了解決這個問題，它更具體一些，並為您提供一些有關 ATS 定位的指導，因為當我們談論閱讀競爭和競爭格局時，這將有所幫助，ATS 與 Symphony 一起投資了技術。當您建立流程時，我們的平台使我們能夠做到這一點，您可以動態地進行。為什麼這很重要，因為當你查看輸出時，它實際上使我們能夠實現幾乎兩個即時輸出，即大約一半足跡的輸出和真正的關鍵推動因素。這只是我們從創新如何使我們脫穎而出並真正為客戶提供高價值的角度來看的領域之一。他們繼續尋求最大化其發布並最大化影響力。並為您提供更多市場背景資訊。當然，有很多關於這個領域的報道，無論是摩根大通的結構從180 億美元到1000 億美元到我們，還是摩根士丹利，我們的使命的顯著增加始終真正使我們的客戶能夠最大限度地提高他們的發布能力。

And and with ours solution set with our capability on a global scale, it affords us the ability to be a leader in that space. So I'm pleased with the progress. We are pleased with the performance, and we do view this as a market that's going to continue to evolve.

我們的解決方案結合了我們在全球範圍內的能力，使我們有能力成為該領域的領導者。所以我對進展感到滿意。我們對這一表現感到滿意，我們確實認為這是一個將繼續發展的市場。

And Patrick, just just the specific. So it was a low single this this was up low single digit percentage of our bookings for the quarter.

派崔克，只是具體的。所以這是一個低單，這占我們本季預訂的低個位數百分比。

Okay. Thank you very much. And if I could ask one more on. We've got a lot of these moments in the Canadian nuclear energy sector, Capital Power, OBG, assessing level and at some are some. And then the more recent announcement of the refurbishment retrofitting at Pickering nuclear generating station figures. Can you comment on what you're seeing in your funnel with respect to slot games like this today are opting for APS with respect to mention developments and NAD., I guess what kind of timeframe should be looking at from an RFP to actual execution perspective?

好的。非常感謝。如果我可以再問一個。我們在加拿大核能領域、Capital Power、OBG、評估層面有很多這樣的時刻，有些是一些。然後是最近公佈的皮克林核電廠翻新改造數據。您能否評論一下您在漏斗中看到的有關老虎機遊戲的內容，例如今天選擇 APS 來提及開發和 NAD。我想從 RFP 到實際執行的角度應該考慮什麼樣的時間範圍？

Yes, absolutely. So a headline on market is favorable. And to give you some context, our trailing 12 months is 1.16 on this on this space. And so we're not only saying really favorable end market trends and dynamics. We're also performing and continue to execute and offer high value for the markets. As far as SMR in our funnel remains healthy. This is still early in its journey. And and and ATSs in our view is we're a high-value provider and we're staying close with the opportunities as they unfold. As far as the as far as I can do reactor and refurbishment programs, look, this is early on that said, it is very in line with what ATS offers for high value for these for this type of this type of work. And we're staying very close work in early days of our review of the application. And we do view this is something that will be the run rate in line with what our what we can offer and our high contribution towards itself to get back to your initial various favorable market dynamics on on a global scale. But this is a green energy that ATS supports and really one that we offer high value for our in our niche capability. And we continue to launch technology and solutions that enable us a strong position.

是的，一點沒錯。因此，市場上的頭條新聞是有利的。為了給您一些背景信息，我們在該領域的過去 12 個月的得分為 1.16。因此，我們不僅僅是在說真正有利的終端市場趨勢和動態。我們也正在並將繼續執行並為市場提供高價值。就我們漏斗中的 SMR 而言，它仍然保持健康。這還處於早期階段。在我們看來，ATS 是一家高價值提供商，我們將密切關注機會的出現。就我所能做的反應爐和翻新計劃而言，看，這是早期所說的，它非常符合 ATS 為此類工作提供的高價值。我們在申請審核的早期階段一直保持著非常密切的工作關係。我們確實認為，這將是與我們能夠提供的服務以及我們對自身的高貢獻相一致的運行率，以在全球範圍內恢復您最初的各種有利的市場動態。但這是 ATS 支持的一種綠色能源，也是我們為我們的利基能力提供高價值的能源。我們不斷推出技術和解決方案，使我們保持強勢地位。

Okay. Thank you very much.

好的。非常感謝。

Your next question comes from David Ocampo with Cormark Securities.

您的下一個問題來自 Cormark Securities 的 David Ocampo。

Thanks. Good morning, everyone. On the 200 million of EV and order backlog. I calculate curious if you guys see any risks not pushing to get pushed out further to the right. And ultimately, when that program does restart in fiscal Q1, will that be at the normal run rate or lower than your initial projections as of quarter deliveries and order execution?

謝謝。大家，早安。關於2億輛EV和訂單積壓。如果你們看到不推動進一步向右推的任何風險，我覺得很好奇。最終，當該計劃在第一財季重新啟動時，其運行速度會達到正常運行速度還是低於您對季度交付和訂單執行的最初預測？

Hi, good morning, David. It's Ryan. So I mean, our expectation is, is that as read as we laid out in our prepared remarks and in the disclosure materials, our expectation is this resumes in Q1 of fiscal 25 on scale, customers have the ability to to certainly change that dynamic. But that's not our expectation. In terms of run rate, Tom, you're at this point, we would expect it to resume as it had been originally planned and wouldn't see any ongoing impact from it. Does that mean that that's our that's our expectations.

嗨，早上好，大衛。是瑞安。所以我的意思是，我們的期望是，正如我們在準備好的評論和披露資料中所闡述的那樣，我們的期望是在 25 財年第一季大規模恢復，客戶有能力改變這種動態。但這不是我們的期望。就運行率而言，湯姆，目前我們預計它會按照最初計劃恢復，並且不會看到任何持續的影響。這是否意味著這就是我們的期望。

Okay. And then my last one, just on the supply chain issues. I mean this is something that's been head hurting you guys, at least for the last several quarters. Are you guys seeing any positive indicators relating to electrical components and those issues easing? And what are your expectations are on the timing of margin improvement once supply chain begins to normalize?

好的。然後是我的最後一篇，關於供應鏈問題。我的意思是，這是一件讓你們頭痛的事情，至少在過去幾季是這樣。你們是否看到與電氣元件相關的任何積極指標以及這些問題的緩解？一旦供應鏈開始正常化，您對利潤率改善的時間有何期望？

Yes. So to say it again and David, trying to answer, this is interesting. Amid all the suppliers are talking about improvements. I would say we have seen some incremental improvements. But when we look at data around quoted lead times, particularly in electric coal and mechanical components, we have not seen a material improvement on sold that. That really is when we talk about the challenges, that's really it is let's lead times of primary challenge. And that's that has an impact on our ability to on to reduce cost to supply light chain and offset some of those dynamics in terms of when it's when it when it shifts on certain believe this is something we stay very close to, but Dave will take one to two quarters for it to work its way through our programs and until we see a benefit in terms of what we can do from a margin perspective.

是的。所以大衛再說一遍，試著回答，這很有趣。所有供應商都在談論改進。我想說我們已經看到了一些漸進的改進。但當我們查看報價交貨時間的數據時，特別是電煤和機械部件，我們沒有看到銷售的實質改善。這確實是當我們談論挑戰時，這確實是讓我們引領主要挑戰的時間。這對我們降低輕鏈供應成本的能力產生了影響，並抵消了其中一些動態，當它發生變化時，我們相信這是我們非常接近的目標，但戴夫會採取一到兩個季度，讓它在我們的計劃中發揮作用，直到我們從利潤角度看到我們可以做的事情帶來的好處。

And if I could just follow up number on how much do you think supply chain has negatively impacted your gross margins? Because you guys have been in that 28% to 29% range for?

如果我可以跟進您認為供應鏈對您的毛利率產生了多大負面影響？因為你們一直處於 28% 到 29% 的範圍內？

Yes. I mean, it's not it's not as much. I mean, we've been able to offset a lot of it through pricing and other other areas. So it's not it's not a headwind, but it's a barrier from us expanding margins. So our typical playbook is when we get an order in which global we do, the design work and we look for it mission season in one of those areas is through supply chain. So whether it's it's finding alternative suppliers, whether it's reengineering to find cheaper component, sometimes they have less features, but they do the job that we need on. Sometimes it's pulling not pulling through similar or same components occur. There's multiple programs and with extended lead times that really limits our ability to exercise all of those all of those levers. So it's not as much headwind. Today's it was it or a negative impact on our margin does something that is limiting our ability to expand margins when we do get programs and harvest.

是的。我的意思是，不是那麼多。我的意思是，我們已經能夠透過定價和其他領域抵消掉很多。因此，這並不是逆風，而是我們擴大利潤的障礙。因此，我們典型的策略是，當我們收到一份訂單時，我們在全球範圍內進行設計工作，我們會透過供應鏈尋找其中一個領域的任務季節。因此，無論是尋找替代供應商，還是重新設計以尋找更便宜的組件，有時它們的功能較少，但它們完成了我們需要的工作。有時會發生拉動而不是拉動相似或相同的組件。有多個計劃和較長的交付時間，這確實限制了我們運用所有這些槓桿的能力。所以逆風沒有那麼大。今天，它或對我們利潤的負面影響限制了我們在獲得計劃和收穫時擴大利潤的能力。

But that makes sense. And the color.

但這是有道理的。還有顏色。

Your next question comes from Michael Doumet with Scotiabank. Please go ahead.

您的下一個問題來自豐業銀行的 Michael Doumet。請繼續。

Hey, good morning, guys. I was wondering if you could just elaborate on the margin pressure as it relates to the delayed EV. program. Is it strictly a result of mean operating deleveraging due to the deferral? And then I guess longer term, the question is how do you manage potential? What could be some lumpiness in transportation and the overall capacity in that business?

嘿，早上好，夥計們。我想知道您是否可以詳細說明與延遲電動車相關的利潤率壓力。程式.這是否完全是由於延遲而導致的平均經營去槓桿化的結果？然後我想從長遠來看，問題是你如何管理潛力？運輸和該業務的整體容量可能會出現什麼混亂？

Good morning, Michael. So I mean, I'll give you it is totally So the answer to your questions, yes, it's primary primarily deleveraging, and I'll give you a bit of context. So we've been converting approximately 25% to 30% of our product will put can build within the quarter. And so that provides you with a sense of the revenue challenges with EV., it's more towards the lower end of that, that range on. So in terms of what we're doing to mitigate, I talked about repurposing capacity where we can on including into into some life science programs. We have scaled back on contractors, but we are maintaining our cost structure as our expectation is for this program to restart, as we talked about in the first quarter of fiscal '25. So that's going to drive the temporary inefficiencies and he'll call utilization. But that's that's where we're going to see the negative impact on margins in the fourth quarter in ranking it.

早上好，麥可。所以我的意思是，我會給你答案，是的，這是主要的去槓桿化，我會給你一些背景資訊。因此，我們已經將大約 25% 到 30% 的產品轉化為可在本季內生產的產品。因此，這讓您對電動車的收入挑戰有了一定的認識。它更接近該範圍的低端。因此，就我們正在採取的緩解措施而言，我談到了重新利用我們可以納入某些生命科學計畫的能力。我們已經縮減了承包商的規模，但我們正在維持我們的成本結構，因為我們期望該計劃重新啟動，正如我們在 25 財年第一季談到的那樣。因此，這將導致暫時的低效率，他將稱之為利用率。但這就是我們在第四季度排名時將看到的對利潤率的負面影響。

Can you maybe just a sense for the magnitude, the margin pressure in Q4 based on the lower utilization?

您能否了解第四季度由於利用率較低而帶來的利潤率壓力的大小？

Yes. So I mean, I patient later with the revenue headwind. And and so if I mean, if you think about our typical cost structure where our cost structure, it's roughly halfway per pin half materials. So the materials does have an impact. And then what we're dealing with is is the labor inefficiency. And then, like I said, we're able to offset some of that. But on there's there's going to be an impact.

是的。所以我的意思是，我稍後會對收入逆風保持耐心。因此，如果我的意思是，如果你考慮我們典型的成本結構，我們的成本結構大約是每個引腳一半材料的一半。所以材料確實有影響。然後我們面臨的是勞動效率低。然後，就像我說的，我們能夠抵消其中的一些影響。但在那裡會有影響。

Okay. That's helpful. And then just maybe more broadly on Life Sciences, inorganic growth. It was still negative in the quarter, which is a little bit of surprise given some of the bookings that you called out last quarter. What is what is the visibility on an acceleration in organic growth in that end market and where we really are you just in terms of Apple right, offer GLP-1? Just just trying to get a sense for how much GLP ones can really move the needle going forward.

好的。這很有幫助。然後可能更廣泛地涉及生命科學，無機生長。本季仍然為負數，考慮到您上季度公佈的一些預訂量，這有點令人驚訝。該終端市場有機成長加速的可見度如何？就 Apple 而言，我們到底處於什麼位置，提供 GLP-1？只是想了解 GLP 能夠在多大程度上真正推動前進。

Yes. Sorry, Michael, you're asking me. Revenue growth in Life Sciences?

是的。抱歉，邁克爾，你在問我。生命科學領域的收入成長？

Yes, exactly. Yes.

對，就是這樣。是的。

So we did have we did have positive organic growth in Life Science revenues in the quarter. It was low single digit, but there was there was positive revenue growth.

因此，本季生命科學收入確實實現了積極的有機成長。雖然這個數字較低，但收入卻出現了正成長。

And for your question, more around where we invest in this GLP one progression? Or what would you like to understand from a context around that space? That market?

對於您的問題，更多關於我們在這項 GLP 進展中投資的地方？或者您想從該空間周圍的背景中了解什麼？那個市場？

Yes, just right for the confusion on the organic growth, but the question in terms of where you are on the round and overall GLT, the ability to move the needle for all for life sciences, um, Lucky and there are multiple reports out there and I cited a little bit earlier on in the discussion around whether it's a Morgan Stanley or whether it's JP Morgan. And the net result is this is a significant growth area for this solutions. And whether it's going from $18.8 billion in 2023 to $100 billion in 2030 or more of a different magnitude, the growth profile is real and it's really tied to US obesity and the market there is also and a significant growth profile.

是的，這正好解決了有機成長方面的困惑，但問題在於你在整體和整體 GLT 中的位置，為生命科學領域的所有人帶來推動的能力，嗯，幸運的是，那裡有多個報告我在前面關於它是摩根士丹利還是摩根大通的討論中引用了一點。最終結果是，這是該解決方案的一個重要成長領域。無論是從 2023 年的 188 億美元成長到 2030 年的 1,000 億美元，還是其他不同的規模，成長狀況都是真實的，而且確實與美國的肥胖有關，而且那裡的市場也有顯著的成長狀況。

So, you know, net net it off opportunity, a significant opportunity for ATS to drive high impact. And as we look at it where it is in its journey, we view it's still early in its journey and and wallets made progress. And to give you some context around progress last year of approvals, it was the second highest approved for the year in the last 10 years of Nova drugs, basically new molecules and sold. We're seeing continued approval in areas to support growth. We're seeing that that auto-injector is an area that that offers high value for for end customers or end patients. And ATS has a strong play in the ability to support. That said, it's only one piece of our life sciences offering, and we have multiple offerings that we like. And as a reminder, um, you know, last last quarter, our contact lenses was one of the largest orders within within the space. So low. We like this area. We're also involved in radiopharmaceuticals, which is identification and treatment of cancer were involved in in wearables. And the treatment of diabetes were involved in in many areas that offer high value for customers that are very strategic for customers and product launches.

所以，你知道，淨淨機會是 ATS 產生高影響力的重要機會。當我們審視它的發展歷程時，我們認為它仍處於發展的早期階段，錢包也取得了進展。為了給大家一些有關去年批准進展的背景信息，這是過去 10 年 Nova 藥物（基本上是新分子和銷售）中今年批准數量第二高的。我們看到支持成長的領域不斷獲得批准。我們發現自動注射器是一個為最終客戶或最終患者提供高價值的領域。而ATS在支援能力上有著很強的發揮。也就是說，這只是我們生命科學產品的一部分，我們還有多種我們喜歡的產品。提醒一下，嗯，你知道，上個季度，我們的隱形眼鏡是該領域最大的訂單之一。這麼低。我們喜歡這個地區。我們也涉足放射性藥物領域，即可穿戴設備中涉及的癌症識別和治療。糖尿病治療涉及許多為客戶提供高價值的領域，這些領域對於客戶和產品發布都非常具有戰略意義。

Super helpful. Thank you, Andrea.

超有幫助。謝謝你，安德里亞。

Your next question comes from Patrick Baumann with JPMorgan. Please go ahead.

您的下一個問題來自摩根大通的派崔克鮑曼。請繼續。

Hi, good morning. Thanks for coming in. Just wondering if you can give an update on the funnel on for orders across some EV.s and food and beverage. I think you just talk about life sciences really specifically about calendar year 2024, and that's much your fiscal year. I'm curious how you think about orders over the next year and then more near term on you to have that you had a really tough comp in the third quarter here. So obviously, orders being down shouldn't be surprised people. But on the fourth quarter, looks like the comp is a little bit easier. Do you have line of sight to some growth there, or should we expect book-to-bill to remain below one kind of in the short term?

早安.感謝您的光臨。只是想知道您是否可以提供一些電動車以及食品和飲料訂單漏斗的最新資訊。我認為您只是談論生命科學，特別是 2024 年，這就是您的財政年度。我很好奇你如何看待明年的訂單以及近期的訂單，因為你在第三季的表現非常艱難。顯然，訂單下降不應讓人感到驚訝。但到了第四節，比賽似乎變得簡單了一些。您是否認為那裡會出現一些增長，或者我們是否應該預期訂單出貨比在短期內保持在某一水平以下？

Multiple questions on that. And we'll see if I assume that if I can answer all of them, but I'll go in any order size it up. Okay. And I'll walk I'll walk EV. first to kind of get line of sight and then I'll go into to regulated food and then we can talk a bit more around other areas. But thoughts are and I showed this in my prepared remarks, our funnel in the mid to long term remains strong. And and well, and we're staying very close with customers. Wal-mart, certainly near term will be impacted by current market dynamics. And the customers are faced with many more areas, whether it's technology and technology development or cost structure that they are looking to offset or even just matching capacity to consumer demand. We're staying close. And when we look at areas that ATS. is differentiated ourselves, we have I'd put ourselves in a position that when our customers come out and they get back to a more measured pace, we're in a position to offer high value. And you think of the solutions like the digital twin that we've launched, really enable us to maximize our impact to launch their product. And the discussions we've had just done on ED. being a key piece of their investment for action in ATS offers high value for this space.

對此有多個問題。我們將看看我是否假設我可以回答所有這些問題，但我將按任何順序進行評估。好的。我會步行 我會步行電動車。首先是為了引起大家的注意，然後我將討論受管制的食品，然後我們可以就其他領域進行更多討論。但我的想法是，我在準備好的演講中表明了這一點，我們的中長期漏斗仍然強勁。而且我們與客戶保持非常密切的關係。沃爾瑪短期內肯定會受到當前市場動態的影響。客戶面臨更多的領域，無論是技術和技術開發，還是他們希望抵消的成本結構，甚至只是將產能與消費者需求相匹配。我們保持密切聯繫。當我們觀察 ATS 領域時。我們自己是與眾不同的，我會把自己置於這樣一個位置：當我們的客戶出來並且他們恢復到更加謹慎的步伐時，我們就能夠提供高價值。你會想到我們推出的數位孿生等解決方案，確實使我們能夠最大限度地發揮我們的影響力來推出他們的產品。我們剛剛就 ED 進行了討論。作為 ATS 行動投資的關鍵部分，為該領域帶來了很高的價值。

Up one more area just as a reference, while we certainly still have a large customer, we are working with with roughly 10 customers in this space right now and so did varying degrees of where they are in their journey for the launch. It continues to be an opportunity and strategic for the value we can create for our customer base.

再增加一個領域作為參考，雖然我們當然仍然有一個大客戶，但我們目前正在與該領域的大約 10 個客戶合作，他們在發布過程中的不同程度也是如此。它仍然是我們可以為客戶群創造價值的機會和策略。

Moving on to the regulated to look, this was a strong quarter and we are pleased with the performance of the business. And I guess last year weight was a, you know, a big comped up to two kind of reference against or comp against. I had had a large order of roughly, call it, $20 million last last year in two Q., three of the team team continues to execute part aligned around technology, G. innovation and really bringing our customer solutions to market. It's an example of just the way that we think about and utilize innovation. Our business. I've worked with that with AI. and utilizing AI with Vision and with our great tech business. And we're providing the capability to really do a assessment to understand tomatoes when they're appeals to look for areas that maybe had been missed and then kick-out. So it all offers higher yield, higher ability and energy continues to be a discussion point. So pleased with the progress on that group, pleased with the performance and one that we view we can continue to really offer high value for our customers.

轉向監管領域，這是一個強勁的季度，我們對業務表現感到滿意。我想去年的體重是一個很大的對比，有兩個參考或對比。去年，我在兩個季度收到了一筆大約 2000 萬美元的大訂單，團隊中的三人繼續圍繞技術、G. 創新執行部分工作，並真正將我們的客戶解決方案推向市場。這是我們思考和利用創新方式的一個例子。我們的生意。我已經與人工智慧合作過。並將人工智慧與視覺和我們偉大的科技業務結合。當西紅柿需要尋找可能被遺漏的區域然後被剔除時，我們提供了真正進行評估以了解西紅柿的能力。因此，這一切提供了更高的產量、更高的能力和能量仍然是一個討論點。我們對團隊的進展感到非常滿意，對他們的表現感到滿意，我們認為我們可以繼續為客戶提供真正的高價值。

And then beyond that, I guess to the fourth quarter that should we expect some growth there? Or is or should you think book-to-bill can kind of view around one in the fourth quarter, but.

除此之外，我想我們應該期待第四季出現一些成長嗎？或者你認為訂單到賬單可以在第四季度左右看到，但是。

Yes, Patrick. So so this is Ryan. It's we don't we don't typically provide forward looking on our bookings. And if you don't with some of these large programs, there's variability. And if something comes in the last two weeks of March, the first two weeks of April that that can drive some a different discussion. And that's why when we're looking at bookings, we're looking at trailing 12 month and offer a longer period to understand directionally where business is trending. And he'll our funnel of our backlog rather typically goes out about three quarters into it little bit longer, given the duration of those programs. And then we have some shorter cycle businesses that have been audited. And but that that is really how we look at the business from a from a quarter-to-quarter perspective.

是的，派崔克。這就是瑞安。但我們通常不會在預訂中提供前瞻性資訊。如果您不使用其中一些大型程序，就會出現變化。如果三月的最後兩週或四月的前兩週有什麼事情發生，那可能會引發一些不同的討論。這就是為什麼當我們查看預訂時，我們會查看過去 12 個月的情況，並提供更長的時間段來定向了解業務趨勢。考慮到這些計劃的持續時間，他會將我們的積壓工作漏斗通常延長約四分之三的時間。然後我們還有一些經過審計的周期較短的業務。但這確實是我們從季度到季度的角度看待業務的方式。

And just to add a little bit to there, yes, that we've been very focused on on strategic end markets and being well positioned in those areas. And so you think of areas like and we talked a bit about life sciences around our in our and our focus on on key issues that offer high value. Our addition with identity and the value that brings. And by the way, to think about it from a standpoint of now, we're in a lab something almost follow. The molecule were in the lab, all the way to production to energy and the ability and resurgence of new killer being a green energy supporting really the energy challenges on a global scale. So So well, we don't provide that. We have been very strategic in the markets we support and they've been very focused. So not a new into end market, our target that's always been to out execute and really drive performance in the business through our ATM and our playbook.

補充一點，是的，我們一直非常關注策略終端市場，並在這些領域處於有利地位。因此，您會想到類似的領域，我們圍繞著我們討論了一些生命科學，我們專注於提供高價值的關鍵問題。我們加入了身分和帶來的價值。順便說一句，從現在的角度來看，我們在一個實驗室裡，幾乎可以看到下面的情況。該分子在實驗室中，一直到生產到能源，以及作為綠色能源的新殺手的能力和復興，真正支持全球的能源挑戰。那麼好吧，我們不提供這個。我們在我們支持的市場上一直非常具有策略性，而且他們也非常專注。因此，這並不是終端市場的新手，我們的目標始終是透過我們的 ATM 和我們的策略來執行並真正提高業務績效。

Okay, great. That makes a ton of sense. Thanks for us. Bearing with me with that, with that short term question, I am kind of due to this asset due to the call center, we'll keep that line going from. Thanks so much. Best luck.

好的，太好了。這很有道理。謝謝我們。就我而言，對於這個短期問題，我有點感謝呼叫中心的這項資產，我們將保留這條線路。非常感謝。好運。

Thanks, Patrick.

謝謝，派崔克。

Your next question comes from Michael Glen with Raymond James. Please go ahead.

你的下一個問題來自邁克爾·格倫和雷蒙德·詹姆斯。請繼續。

Hey, good morning. So over the past two days, we've seen some pretty strong indications from two of the largest players in the obesity drug market. Regarding this capacity constraints they're facing. So can you help us draw the connection between what the sales are referencing specifically and how this plays into your auto-injector product offering?

嗨，早安。因此，在過去的兩天裡，我們看到了肥胖藥物市場上兩個最大參與者的一些相當強烈的跡象。關於他們面臨的能力限制。那麼，您能否幫助我們將銷售具體引用的內容與您的自動注射器產品供應中的作用聯繫起來？

And I can't tell you often have reference the sort of funnels. Can you say whether the order funnel has grown and in that market sequentially from last quarter to this quarter, can you could give some indication that, Eric, when should we think about timing of these orders coming into play?

我不能告訴你要經常參考那種漏斗。您能否說明訂單漏斗是否有所增長，以及從上個季度到本季度在該市場中是否連續增長，您能否給出一些指示，埃里克，我們應該何時考慮這些訂單發揮作用的時間？

Yes. So Michael, it just to kind of give you some some, sir real walk down approach here. As I mentioned in my prepared remarks, the life sciences funnel is strong and our backlog is very strong. The growth of our funnel continues to build. And I would say, as has grown and our opportunities and we view the big moves really is generally favorable and and it's an area that we can offer high value. And when and often times and I talk about strategic end markets and strategic products for our customers when our customers are launching a solution and their demand is significant, they're looking to the folks like ATS to really help them provide that back into the market. And I walked through excuse me, I walk through our Symphony Technology and really the impact of this has. But also what it allows us to do is to take a more standard approach to a customized solution. And let me let me put more meat on the bonds are this allows us to really take this standard products at the standard capability and bring it to multiple customers. And as customers ramp, they want to go with that provider that offers them the highest capability and highest ability to launch their solution on time on quality, on budget and all, by the way, to be able to continue to increase as their demand increases. So so while I mentioned earlier in the discussion and call businesses, this is early in its journey, we do view we are well positioned to move to really maximize our impact to maximize our customers' ability to meet market demands.

是的。邁克爾，這只是為了給你一些建議，先生，真正的走近這裡。正如我在準備好的發言中提到的，生命科學管道很強大，我們的積壓工作也非常多。我們的漏斗不斷成長。我想說，隨著我們的發展和機會的成長，我們認為重大舉措確實普遍有利，而且這是我們可以提供高價值的領域。當我經常為我們的客戶談論戰略終端市場和戰略產品時，當我們的客戶推出解決方案並且他們的需求很大時，他們希望像 ATS 這樣的人真正幫助他們將這些解決方案帶回市場。對不起，我詳細介紹了我們的 Symphony 技術，以及它確實產生的影響。而且它還允許我們採取更標準的方法來客製化解決方案。讓我讓我在債券上投入更多的精力，這使我們能夠真正以標準能力採用這種標準產品並將其帶給多個客戶。隨著客戶數量的增加，他們希望與能夠為他們提供最高能力和最高能力的提供者合作，以按時、按質、按預算推出他們的解決方案，順便說一句，能夠隨著需求的增加而繼續增加。因此，雖然我之前在討論和電話業務中提到，這還處於早期階段，但我們確實認為我們處於有利位置，可以真正最大限度地發揮我們的影響力，最大限度地提高客戶滿足市場需求的能力。

Okay. And then if we think about last quarter, the indication you provided was something in the ballpark of $100 million of orders for auto-injectors in this quarter. That was down, it was low single digit. If we think about that number in the context of what you're talking about market size, the $18 billion growing to $100 billion, that is what what's hot, what's your what's your sense of the of the pie in those numbers? Are you able to give some type of assessment on that? What's the size of the piece you're calling for in that market?

好的。然後，如果我們考慮一下上個季度，您提供的指示是本季自動注射器訂單約為 1 億美元。那是下降了，只有低個位數。如果我們在你所談論的市場規模的背景下考慮這個數字，即 180 億美元增長到 1000 億美元，這就是最熱門的，你對這些數字中的蛋糕有什麼感覺？您能對此給出某種類型的評估嗎？您在該市場上需要的產品尺寸是多少？

So Michael, all start just on on orders. I mean the numbers you referenced starter Kern directionally directionally accurate, but keep in mind with orders, they are lumpy regardless of market, they're going to feel the sizes on the timing of those. Those aren't going to be some scenarios, a steady straight line up into the right. It's going to be it's going to be more lumpy, just just fit or call it variable. And you know, we're talking dollars versus percent. But as you look at the ramp and it's no, it was a one for one as far as and increases and percent of the business. But the general growth profile will follow the profile of the investment made very clear. And I did mention that that was a JPMorgan slash Morgan Stanley estimate the market, regardless whether you read it from from those banks or others, the market growth profile is very strong. And ATS. is well positioned to support that. That space timing will be variable. Customers will be we'll be looking at their launches when they get approval. So it will certainly be variable. We are in a position and we're working with customers to ensure that their successful launch and one last mile minor one here. We've been in this space for over two decades. And while it's it's new and exciting and an area that we can support the drive, we've also been in this market and we have a strong reputation in the space to really help our customers actually here.

所以邁克爾，一切都從訂單開始。我的意思是，你引用的入門者克恩的數字在方向上是準確的，但請記住訂單，無論市場如何，它們都是不穩定的，他們會根據這些時間的大小來感受。這些不會是某些場景，一條穩定的直線向右延伸。它將變得更加凹凸不平，只是適合或稱其為可變的。你知道，我們談論的是美元與百分比。但當你看到坡道時，你會發現事實並非如此，就業務的成長和百分比而言，這是一對一的。但整體成長概況將遵循非常明確的投資概況。我確實提到，這是摩根大通大幅削減摩根士丹利對市場的估計，無論您是從這些銀行還是其他銀行讀到的，市場成長狀況都非常強勁。還有苯丙胺類興奮劑。能夠很好地支持這一點。此空間時間將是可變的。當客戶獲得批准後，我們將關注他們的發布。所以它肯定會是可變的。我們處於有利位置，正在與客戶合作，確保他們的成功發布，並完成最後一英里的小任務。我們在這個領域已經有二十多年了。雖然這是一個新的、令人興奮的領域，也是我們可以支援驅動器的領域，但我們也已經進入這個市場，我們在該領域擁有良好的聲譽，可以真正幫助我們的客戶。

Okay. Thanks for taking the questions.

好的。感謝您提出問題。

Your next question comes from Justin Keywood with Stifel. Please go ahead.

您的下一個問題來自 Stifel 的 Justin Keywood。請繼續。

Good morning. We saw some deleveraging in the quarter, our balance sheet. So 2.3 times that could suggest a reasonable capacity for further M&A are able to update us on the pipeline, target verticals and potential size of deals that you're looking at?

早安.本季我們的資產負債表出現了一些去槓桿化。那麼 2.3 倍可能表示進一步併購的合理能力能夠讓我們了解您正在考慮的交易管道、目標垂直領域和潛在交易規模的最新情況？

Good morning, Justin. But we are in a position. And and I'll just say if I just step back and I did mention this, our funnel remains healthy. And and when we look at our funnel, it is a mixture of sizes, small, medium and large, aligned around various strategic products and technologies for end markets that we view our strong end markets and strategic end markets. And so we're pleased with where we sit. We've added volatility. We've added a taco two very good additions to the family. Our position in the ability to continue to cultivate is strong. And and we we continue to have very strong area, very good dialogues with that with potential targets. That said, we're patient. And when we find high value for our customers and shareholders, we're in a position to move quickly. Understood.

早安，賈斯汀。但我們處於有利位置。我只想說，如果我退後一步並確實提到了這一點，我們的漏斗仍然保持健康。當我們審視我們的漏斗時，它是小型、中型和大型規模的混合體，圍繞著終端市場的各種戰略產品和技術，我們認為我們強大的終端市場和戰略終端市場。所以我們對我們所處的位置感到滿意。我們增加了波動性。我們添加了炸玉米餅，這兩個非常好的家庭成員。我們在持續培育能力方面的地位很強。我們繼續與潛在目標進行非常強大的領域、非常好的對話。也就是說，我們很有耐心。當我們發現客戶和股東的高價值時，我們就能迅速採取行動。明白了。

And then a follow-up to GLP-1. We saw Novo announced an acquisition of Catalyst to shore up manufacturing capacity for fill finish. one question is if a TSR offers fill finish and does that take away the opportunity? And then also just on the GLP-1, our backlog, if we're able to characterize the percentage and I know it was at a record level in the current quarter,

然後是 GLP-1 的後續行動。我們看到 Novo 宣布收購 Catalyst，以增強填充塗料的製造能力。一個問題是，如果 TSR 提供​​填充飾面，這是否會剝奪這個機會？然後還有 GLP-1，我們的積壓，如果我們能夠描述百分比並且我知道它在本季度處於創紀錄的水平，

Tom, to walk through the acquisition, we generally view that as positive for ATS. and it's just one more proof point of the constraint to get product to market and and exciting times for our ability to support. But also in I referenced this on the call pause as it as a highlight for innovation. We launched an IoT solution set for customer, and it was it was around a pharma customer to work with a contract manufacturer opportunity, data processing. And and it's just how we can continue to evolve and really support customers as they move in these in these directions to really bring their products to market and understand all the data variables to support those launches.

Tom，回顧此次收購，我們普遍認為這對 ATS 來說是正面的。這只是將產品推向市場的限制的另一個證明點，也是我們支持能力的令人興奮的時刻。但我也在通話暫停中提到了這一點，因為它是創新的亮點。我們為客戶推出了一套物聯網解決方案，它是圍繞製藥客戶與合約製造商合作的機會、數據處理。這就是我們如何繼續發展並真正支持客戶朝這些方向發展，真正將他們的產品推向市場並了解支援這些發布的所有數據變數。

I'm Ryan will touch upon the second part of the question.

我是瑞安，我將談談問題的第二部分。

Yes. So it's it's to low double digits as a percentage of backlog.

是的。因此，積壓訂單的百分比處於低兩位數的水平。

So just to clarify low single digits for bookings, but a double digits for backlog?

那麼，只是為了澄清預訂量較低的個位數，但積壓的量卻達到兩位數？

Correct.

正確的。

Thank you.

謝謝。

So Justin, just to clarify. So keep in mind, these programs are in a range of 12 months from from timing of order to execution and delivery. So that the orders that we booked last quarter I'm sorry, back in our fiscal Q2 are still in relatively early stages. And so most of that is still in our backlog.

賈斯汀，我只是想澄清一下。因此請記住，這些計劃從下訂單到執行和交付的時間間隔為 12 個月。因此，抱歉，我們上季預訂的訂單在第二財季仍處於相對早期階段。因此，其中大部分仍處於積壓狀態。

So thank you for taking my call.

謝謝您接聽我的電話。

Thank you, Justin.

謝謝你，賈斯汀。

Your next question comes from Maxim Sytchev with National Bank. Please go ahead.

您的下一個問題來自國家銀行的 Maxim Sytchev。請繼續。

I didn't know, gentlemen, morning, perhaps, Andrew, maybe just one more kind of fun methodology slash philosophical question for you. When we think about kind of return on invested capital by vertical, Tom, when you look at time of transports, obviously more lumpiness, more working capital intensity, like when you go across the portfolio, how does it stack up versus other verticals within ATS? And over the long term, should we assume that kind of a preferred route, it would be to get to on a 9% to 80% healthcare in 10 years? Or how should we think about box level of competition? Maybe in any comments would be super helpful. Thanks.

我不知道，先生們，早安，也許安德魯，也許只是為您提供另一種有趣的方法論來解決哲學問題。當我們考慮垂直領域的投資資本回報率時，湯姆，當你考慮運輸時間時，顯然更多的塊狀，更多的營運資金強度，就像當你瀏覽投資組合時，它與ATS 內的其他垂直領域相比如何疊加？從長遠來看，我們是否應該假設一種首選途徑是在 10 年內獲得 9% 至 80% 的醫療保健？或者說我們應該如何看待盒子層級的競爭？也許任何評論都會非常有幫助。謝謝。

Yes. So So Max, as you're very focused strategy around around capital allocation and it is very aligned to return on invested capital. And if you just take a step back and look at our M&A pipeline and what we've been balanced, it really aligns around there. Just take the last few Digital Life Sciences, regulated food and areas that debt that we offer high impact on an external perspective. When we look internally, we look at investment return and ensure that the return on on on where we're focused is at the level of threshold we would expect. And so while every market is going to have an opportunity, certain markets are going to have higher returns and that totally aligned for innovation, the salary line for technology development, and there's no shortage of opportunity for life sciences and our continued expansion.

是的。 So So Max，因為您非常關注資本配置的策略，而且它與投資資本回報率非常一致。如果你退後一步看看我們的併購管道以及我們已經平衡的內容，你會發現它確實與此一致。就拿最後幾個數位生命科學、受監管的食品和我們對外部視角產生重大影響的債務領域來說吧。當我們審視內部時，我們會專注於投資回報，並確保我們關注的領域的回報處於我們預期的門檻水準。因此，雖然每個市場都會有機會，但某些市場將會有更高的回報，這與創新、技術開發的薪資線完全一致，而且生命科學和我們的持續擴張也不乏機會。

And I referenced a few of these on the call are we invested in launched a new, a new life sciences system around run auto-injectors around capability, building within within the space to even continue to improve our output. We talked about a capability development and radios and utilizing IoT as a support structure. And we talked about really the launch of IoT solution within within the pharma space. So as we look at, as we look at our investor investments, we expect a strong return, and we also expect a strong penetration to support our growth in strategic end markets.

我在電話會議上提到了其中的一些內容，我們投資了一個新的生命科學系統，圍繞著功能運行自動注射器，在空間內進行構建，甚至繼續提高我們的產量。我們討論了能力開發和無線電以及利用物聯網作為支援結構。我們真正討論了在製藥領域內推出物聯網解決方案。因此，當我們審視我們的投資者投資時，我們期望獲得強勁的回報，我們也期望強大的滲透力​​來支持我們在策略終端市場的成長。

Maxygen has continued to add on a little bit here to So so on the transport Navy business is primarily inorganic play for us. So from a return perspective, and we've talked about this from a look at return on investment. Typically, internal investments generate a higher return and return thresholds more quickly. So even though this is a higher investment in working capital in this business from a return on invested capital, the fact that it's organic really puts it at a similar playing field with the rest of the rest of the verticals.

Maxygen 繼續在此添加一點內容，所以運輸海軍業務對我們來說主要是無機業務。所以從回報的角度來看，我們已經從投資回報的角度討論了這個問題。通常，內部投資會產生更高的回報，而且回報門檻更快。因此，儘管該業務的營運資本投資來自投資資本回報，但它是有機的事實確實使其與其他垂直行業處於類似的競爭環境。

Okay. That's helpful. And that's what you might impact was in London where I think last quarter you mentioned that you have some pilot programs with other auto OEMs. Are just curious to see if there's any potential directional update you can provide on most of the nursing homes?

好的。這很有幫助。這就是你可能在倫敦產生的影響，我想上個季度你提到你與其他汽車原始設備製造商有一些試點項目。只是想知道您是否可以為大多數療養院提供任何潛在的方向性更新？

Yes. I mean so there are progressing to plan, and we have no other delays in our program. So so they're progressing to plan, and we're staying close with our customers around their investment in their and their long-term view on the market. And and so it's I would just say it's it's ongoing progress and why one or one were aligned around.

是的。我的意思是，計劃正在取得進展，我們的計劃沒有其他延誤。因此，他們正在按計劃進行，我們也與客戶保持密切聯繫，圍繞他們的投資以及他們對市場的長期看法。所以我只想說這是它正在不斷取得的進展以及為什麼一個或一個人會與之保持一致。

Okay. Okay, excellent. Thanks so much. Thank you, Max. Again, if you would like to ask a question, please press star one now.

好的。好的，非常好。非常感謝。謝謝你，麥克斯。再次強調，如果您想提問，請立即按星號。

Your next question comes from Sabahat Khan with RBC Capital Markets. Please go ahead.

您的下一個問題來自加拿大皇家銀行資本市場的 Sabahat Khan。請繼續。

Great. Thanks and good morning. I'm just a clarification question that I just wanted to tie off the comment in the press release about the $200 million of delayed backlog. I guess should we assume that if the delay hadn't happened to their revenue would have been higher by $2 million for this next quarter? Is that $200 million at revenue impact maybe go to be split somewhat in this upcoming call? Order and maybe a bit after that.

偉大的。謝謝，早安。我只是一個澄清問題，我只是想將新聞稿中有關 2 億美元延遲積壓的評論聯繫起來。我想我們是否應該假設，如果沒有發生延遲，他們下個季度的收入會增加 200 萬美元？在即將召開的電話會議中，這 2 億美元的收入影響是否可能會有所分配？訂購，也許在那之後一點。

Yes, good morning, solvents, Ryan. So the $200 million backlog. So like for a period of time and regional color, roughly 12 months, what would have been remaining on that program? So I mentioned this earlier, but from our backlog, which typically revenue in the range of 25% to 30%, and in this case with with EV, a longer duration programs would have been more towards the lower end of that.

是的，早上好，溶劑，瑞安。所以有 2 億美元的積壓。那麼，就像一段時間和地區色彩一樣，大約 12 個月，該計劃中還剩下什麼？所以我之前提到過這一點，但從我們的積壓訂單來看，收入通常在25% 到30% 範圍內，在這種情況下，對於電動車來說，持續時間較長的計劃將更接近於較低端。

Okay. Great. And then there's a little bit of discussion earlier on your participation in kind of the nuclear space. I'm just wondering, I guess, given the role they're playing and some of the elements of orders, refurbishment or things like that kind of are you working on becoming more involved in other parts of a new build or to start tomorrow morning? Do you have kind of the capacity and capabilities get involved? Are there some R&D and other capabilities that you're looking to add to maybe partake in this? Or what seems to be more like a 5, 10, 15-year type runway here for that side of the business? Curious what capabilities are where you can play today versus maybe three, five years from now?

好的。偉大的。然後之前有一些關於您參與核空間的討論。我只是想知道，考慮到他們所扮演的角色以及訂單、翻新或類似事情的一些要素，您是否正在努力更多地參與新建築的其他部分或明天早上開始？你有什麼樣的能力和能力參與其中？您是否希望增加一些研發和其他能力來參與其中？或者對於這方面的業務來說，什麼似乎更像是 5 年、10 年、15 年類型的跑道？好奇你今天可以使用哪些功能，而從現在起三、五年後，可以使用哪些功能？

So a couple of things. First, we like our niche position and we like the value it creates. We are continuing to expand that, that value creation. And you look at the SMR space that we're supporting. You look at you look at what we can do on refer our investment, you look at what we can do and decommissioning and even in areas around new and identifying. So so it is that it is an area that says when we step back, we like the strategic position we are today, we like the opportunities that we can build into. And we can do that both from an innovation perspective as well as well as realistic supporting our customers through through different technologies. So it's an area that I would say we're going to continue to highlight and continue to drive.

有幾件事。首先，我們喜歡我們的利基地位，我們喜歡它創造的價值。我們正在繼續擴大價值創造。你看看我們支援的 SMR 領域。你看看我們可以在推薦投資方面做什麼，你看看我們可以做什麼和退役，甚至在新的和識別的領域。因此，這個領域表明，當我們退後一步時，我們喜歡我們今天的戰略地位，我們喜歡我們可以利用的機會。我們可以從創新的角度以及透過不同的技術為客戶提供現實的支援來做到這一點。因此，我想說，我們將繼續強調並繼續推動這一領域。

Great. And then just one last one, I guess on the EV side, given some of the discussions you're having with some of your larger customers here, are some of the other people other, I guess, OEMs that were in the pipeline that we're doing, some test runs are trying out your capability because I guess how does the discussions progressing there? Any update on the timelines of that those other potential customers are thinking about?

偉大的。然後，我想在電動車方面，考慮到您與這裡的一些大客戶進行的一些討論，我想還有其他一些人，我想，我們正在準備的原始設備製造商正在做的一些測試正在測試你的能力，因為我猜那裡的討論進度如何？其他潛在客戶正在考慮的時間表有什麼更新嗎？

No, I would say the mid to long term narrative hasn't hasn't changed dramatically. What I can tell you is what we what we do view is that the net result will be customers are going to be a bit measured in their pace of investment and really looking at this over long periods of time. That said that when we talk about CapEx spend and focus for CapEx spend, ED. as it is a key priority. And so while the near term, we do view is impacted and we've talked a bit about that. So I don't need to dwell further. Our customers focused around technology innovation, profitability being a key focus. And then matching capacity. These are areas where we're ATS. does well and supports in a strong way as far as our capability to digital twin through making modifications to really testing and give you context of a digital twin what it allowed to do. And there's an old adage of right measure, measure twice cut once well with digital twin, we can measure 51 hundred thousand times, couple of months. And it allows us to do really real-time view of what these changes will impact, how what will align around on their production launch and then support their ability to modify change and really minimis impact on on their launch. And so our view is we continue to offer high value in this space. And while it's certainly going to have some some dynamics over the next short term, you know, quarter to we're going to be very, very focused on offering customers high barrier through that cycle.

不，我想說的是，中長期的敘述並沒有發生巨大的變化。我可以告訴你的是，我們的觀點是，最終的結果將是客戶會對他們的投資速度進行一些衡量，並在很長一段時間內真正關注這一點。也就是說，當我們談論資本支出和資本支出重點時，ED。因為這是一個關鍵優先事項。因此，從短期來看，我們確實認為受到了影響，我們已經對此進行了一些討論。所以我不需要再多說了。我們的客戶專注於技術創新，獲利能力是重點。然後是容量的匹配。這些是我們使用 ATS 的領域。透過對實際測試進行修改，並為您提供數位孿生的背景信息，我們的數位孿生能力表現良好並提供了強有力的支持。有句古老的格言說，正確的測量，用數字孿生測量兩次，一次好，我們可以在幾個月內測量 510 萬次。它使我們能夠真正即時地了解這些變化將產生什麼影響，以及如何與他們的產品發布相一致，然後支持他們修改變化的能力，並真正最小化對其發布的影響。因此，我們的觀點是，我們將繼續在這個領域提供高價值。雖然在下一個短期內肯定會出現一些動態，但你知道，我們將非常非常專注於在整個週期中為客戶提供高門檻。

Great. Thanks very much for the color.

偉大的。非常感謝你的顏色。

Mr. Hider and no other questions back to you for closing remarks.

Hider 先生，沒有其他問題請您作結語。

Thank you, operator. We look forward to continuing to execute on our goal of creating value for our customers and shareholders. Thanks for joining us today. I look forward to speaking to you on our year-end call, Mac. Stay safe and goodbye for now.

謝謝你，接線生。我們期待繼續執行為客戶和股東創造價值的目標。感謝您今天加入我們。 Mac，我期待在年終電話會議上與您交談。保持安全並暫時再見。

This concludes today's conference. You may now disconnect.

今天的會議到此結束。您現在可以斷開連線。