ATS
Corporation Awarded $11.3 Million Contract with FEC and Provides Financial
Performance Guidance
MCLEAN,
VA – (BUSINESSWIRE) – February 4, 2009, ATS Corporation (“ATSC” or the
“Company”) (OTCBB:ATCT), a leading information technology company that delivers
innovative technology solutions to government and commercial organizations,
today announced the award of a new, five-year contract with the Federal Election
Commission (“FEC”), valued at $11.3 million. Under the terms of the FEC
contract, ATSC will provide project management and full lifecycle software
development services, leveraging multiple technologies to perform enhancements,
maintenance, and new development in support of several mission critical systems
for the agency’s Information Technology Division.
These
systems are crucial to accomplishing the FEC mission – to administer and enforce the
Federal Election Campaign Act (“FECA”) - the statute that governs the
financing of federal elections by disclosing campaign finance information,
enforcing the
provisions of the law such as the limits and prohibitions on contributions, and
overseeing the public funding of Presidential elections.
“This
contract enables us to broaden our relationship with the FEC that began in 2002
by extending our capabilities across a consolidated IT support services
contract. The FEC has identified several key objectives for 2009 to
better equip it to fulfill its entrusted responsibility to administer,
enforce, and interpret the federal campaign finance statutes and we are pleased
to continue our support to this customer as it implements the tools and
technologies necessary to achieve these goals,” said Bob Pick, ATSC Vice
President.
Management’s
Outlook
Although
still finalizing its financial statements for December 31, 2008, the Company is
reaffirming its fiscal year 2008 guidance of revenue for the year to be between
$129 and $135 million and EBITDA (1) between $11.5 and $13 million.
Based on
current trends in the Company’s target markets and economic conditions, ATSC’s
2009 expectations are for total revenues of between $129 to $135 million and
EBITDA (1) between $11.5 and $13.0 million.
“While
our guidance for the full year of 2009 is the same as our guidance for the full
year of 2008, we are encouraged by several positive trends that we believe will
offset some of the revenue weaknesses we experienced in 2008,“ said Ed
Bersoff, ATSC President and Chief Executive Officer. “With this new
FEC announcement, as well as other business development activities, we
anticipate a return in quarter over quarter growth in 2009, unlike the declines
we experienced in 2008. Furthermore, we are very pleased in our above
industry average EBITDA margins and we expect to continue that trend in
2009. In fact, our ability to operate at attractive EBITDA margins has
allowed us to pay down over $11 million in debt in 2008, representing nearly 25%
of our total borrowings,“ Bersoff added.
About
ATS Corporation
ATSC is a
leading provider of software and systems development, systems integration,
infrastructure management and outsourcing, information sharing and consulting to
the Department of Defense, Federal civilian agencies, public safety and national
security customers, as well as commercial enterprises. Headquartered in
McLean, Virginia, the Company has more than 600 employees at 12 locations across
the country.
Any
statements in this press release about future expectations, plans, and prospects
for ATSC, including statements about the estimated value of the contract and
work to be performed, and other statements containing the words “estimates,”
“believes,” “anticipates,” “plans,” “expects,” “will,” and similar expressions,
constitute forward-looking statements within the meaning of The Private
Securities Litigation Reform Act of 1995. Actual results may differ materially
from those indicated by such forward-looking statements as a result of various
important factors, including: our dependence on our contracts with federal
government agencies for the majority of our revenue, our dependence on our GSA
schedule contracts and our position as a prime contractor on government-wide
acquisition contracts to grow our business, and other factors discussed in our
latest annual report on Form 10-K filed with the Securities and Exchange
Commission on March 17, 2008, as amended on March 21, 2008 and April 4, 2008. In
addition, the forward-looking statements included in this press release
represent our views as of February 4, 2009. We anticipate that subsequent events
and developments will cause our views to change. However, while we may elect to
update these forward-looking statements at some point in the future, we
specifically disclaim any obligation to do so. These forward-looking statements
should not be relied upon as representing our views as of any date subsequent to
February 4, 2009.
Additional
information about ATSC may be found at www.atsc.com.
Company
Contact:
Joann
O’Connell
Vice
President, Investor Relations
ATS
Corporation
(571)
766-2400
Media
Contact:
Penny
Parker
Corporate
Communications Manager
ATS
Corporation
(571)
766-2400
(1)
EBITDA is a non-GAAP measure that is defined as GAAP net income plus other
expense, interest expense, income taxes, and depreciation and
amortization. We have provided EBITDA because we believe it is a
commonly used measure of financial performance in comparable companies and is
provided to help investors evaluate companies on a consistent basis, as well as
to enhance an understanding of our operating results. EBITDA is not a
recognized term under U.S. GAAP and does not purport to be an alternative to net
income as a measure of operating performance or the cash flows from operating
activities as a measure of liquidity.