Q: On Sep 23 there was a question from Patrick regarding ATS and CJT where you express concern on CJT debt level yet you don’t mention the debt level on ATS which is much higher (debt/ebita ratio). Are you not concerned about ATS debt?
5i Research Answer:
ATS has a market cap of $3.5 bln and debt of $1.5 bln against cash fo $189 mln. CJT has a market cap of $1.4 bln, debt of $960 mln and not much in cash on the balance sheet.
Debt is a consideration for both companies but we would view the CJT business as a bit more cyclical and sensitive to general economic activity and the lack of cash on the balance sheet gives them a bit less wiggle room as well. We don't think the debt is a problem at this stage for either company really, but just a risk to keep in mind.