ATS Corporation Announces Financial Results for the Third Quarter Ended September 30, 2009

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* Revenue of $32.1 million for the third quarter 2009, up 6% from the second of
quarter 2009 and ahead of revenue for the third quarter of 2008
* EBITDA (1) of $4.7 million or an EBITDA margin of 14.7% for the third quarter
of 2009
* Strong cash flow from operations of $3.2 million in the third quarter of 2009
* Total debt of $21.7 million as of September 30, 2009, down $6.5 million from
$28.2 million since June 30, 2009 and down $15.5 million since December 31, 2008

* DSO of 61 as of September 30, 2009, down from 67 days at June 30, 2009

MCLEAN, Va.--(Business Wire)--
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 operating results for the third
quarter ended September 30, 2009.

Third Quarter Results

ATSC reported revenue of $32.1 million for the third quarter of 2009. Revenue
for the third quarter increased by 0.1% over third quarter 2008 revenue of $32.0
million. Operating income for the quarter was $3.9 million and the net income
for the quarter was $2.0 million or $0.09 per diluted share, compared to an
operating loss of $55.8 million and a net loss of $51.0 million for the third
quarter of 2008. The operating and net losses incurred in the third quarter of
2008 were due to a $56.8 million, non-cash goodwill and intangible asset
impairment charge. EBITDA (1) was $4.7 million for this year`s third quarter,
resulting in an EBITDA margin of 14.7%, compared to $3.4 million, or a margin of
10.5% for the third quarter of 2008.

Backlog as of September 30, 2009 was approximately $153.1 million, of which
$51.8 million was funded. Days sales outstanding ("DSO") were 61 at the end of
the third quarter of fiscal year 2009.

As of September 30, 2009, ATSC`s balance sheet included debt of $18.5 million on
its revolving credit facility and approximately $3.2 million in promissory notes
related to the acquisitions of Potomac Management Group, Inc. and Number Six
Software, Inc. Additionally, the balance sheet included $50.6 million in
stockholders` equity.

Nine-Month Results

ATSC reported revenue of $89.5 million for the first nine months of 2009.
Operating income for the first nine months of 2009 was $8.3 million and the net
income for the period was $3.6 million or $0.16 per diluted share, compared to
an operating loss of $53.7 million and a net loss of $50.6 million for the first
nine months of 2008. The 2008 results reflect the impairment charge incurred in
the third quarter of 2008, as discussed under "Third Quarter Results". EBITDA
(1) was $10.7 million for the first nine months of 2009, resulting in an EBITDA
margin of 11.9%, compared to an Adjusted EBITDA (2) of $9.6 million, or a margin
of 9.6% for the first nine months of 2008.

Third Quarter Highlights and Management Comments

Third quarter new bookings totaled $30 million, primarily from add-ons or
additional funding from the Department of Housing and Urban Development, the
Pension Benefit Guaranty Corporation ("PBGC"), the Defense Logistics Agency, and
the Defense Technology Security Administration, among others. Within our
commercial business, we expanded our work with several customers, primarily
Fannie Mae; and we began new engagements with Neustar, Inc. and Perceptive
Software, Inc. Additionally, the Company won a new award after the close of the
third quarter to provide software development services to PBGC, valued at $12.2
million over 5 years.

ATSC President and Chief Executive Officer Dr. Edward H. Bersoff stated, "We are
extremely pleased to report strong results for the third quarter. For the second
consecutive quarter, our revenues and profits have grown and we`ve generated
strong cash flow. The revenue growth represents an increase in each of our
market areas. Our third quarter new bookings reflect expanded work with the
Company`s largest and longest standing customers and we are happy to continue
our exceptionally strong track record of customer satisfaction. As a
consequence, rather than re-competing many of our long-term contracts, several
of our clients continue to provide us with quarterly continued funding on a
non-competitive basis. And as further testament to solid client relationships,
our new $12 million award with PBGC was additive to our current base of business
with that customer. As we have discussed in earlier periods, we also saw our
Fannie Mae business further recover in the third quarter, and that business is
now operating at comparable levels to last year`s revenue for this customer."

Dr. Bersoff added further comments on the Company`s financial performance, "We
were very pleased with our margin performance in the third quarter and ability
to expand our year to date EBITDA margins to 11.9%, even with an increase in our
investment in business development of approximately 16% in the first nine months
of this year compared to the same period last year. We will continue to invest
in business development to support our long term growth objectives. We have also
improved our DSO which were at 61 days at the end of the third quarter of 2009,
a drop from 67 days at the end of the second quarter of 2009 and a drop of 25
days from the end of 2008. As a result of the strong profits and improvements in
cash flow, we paid down another $6.5 million in debt this quarter."

Dr. Bersoff concluded, "We believe our strong financial performance for the
quarter provides strong momentum for sustaining our organic growth and
increasing shareholder value as we end the year and enter 2010."

Management`s Revised Outlook

Based on ATSC`s year to date profit margins, the Company is updating its EBITDA
(1) guidance for 2009. The Company is now increasing its EBITDA (1) forecast for
the year to be between $12 million and $13.5 million. The Company is reiterating
its revenue guidance range of $121 million and $125 million.

Dr. Bersoff commented, "We have consistently exceeded our target EBITDA and
EBITDA margins each quarter of 2009 and expect to end the year with EBITDA
margins for the full year well in excess of industry norms."

Conference Call

ATSC will conduct a third quarter conference call on Monday, November 9, 2009 at
5:00 p.m. ET. The dial-in number for the live teleconference is (866) 847-7863,
conference ID # 1410276. For international participants, please call into
011-800-4040-2020 and use the same conference ID #. A recorded replay of the
teleconference will also be available on the Company website (www.atsc.com) for
one year from the conference call date.

About ATS Corporation

ATSC is a leading provider of software and systems development, systems
integration, infrastructure management and outsourcing, information sharing,
training 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 10 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 16, 2009. In addition, the forward-looking
statements included in this press release represent our views as of November 9,
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 November 9, 2009.

Additional information about ATSC may be found at www.atsc.com.

(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. Please refer to the table at the bottom of
the statement of operations in this release that reconciles GAAP
net income to EBITDA.

(2) Adjusted EBITDA is defined as EBITDA adjusted for one time
severance expenses not expected to be reflected in the ongoing
performance of ATSC. Adjusted 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. Please
refer to the table at the end of this release that reconciles
GAAP net income to adjusted EBITDA.

ATS Corporation
Consolidated Statements of Operations (unaudited)

Three Months Nine Months
Ended September 30, Ended September 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)

Revenue $ 32,074,434 $ 32,032,605 $ 89,497,757 $ 100,694,902

Operating costs and expenses
Direct costs 21,342,643 22,551,682 59,990,312 67,785,098
Selling, general and administrative expenses 6,089,196 7,007,507 18,908,327 24,222,018
Depreciation and amortization 772,275 1,505,705 2,324,018 5,582,615
Impairment charge - 56,772,541 - 56,772,541
Total operating costs and expenses 28,204,114 87,837,435 81,222,657 154,362,272

Operating income (loss) 3,870,320 (55,804,830 ) 8,275,100 (53,667,370 )

Other (expense) income
Interest, net (597,742 ) (896,913 ) (2,164,426 ) (2,646,049 )
Other income (loss) 60,037 (13,458 ) 60,037 52,714

Income (loss) before income taxes 3,332,615 (56,715,201 ) 6,170,711 (56,260,705 )

Income tax expense (benefit) 1,340,816 (5,759,836 ) 2,581,535 (5,647,221 )

Net income (loss) $ 1,991,799 $ (50,955,365 ) $ 3,589,176 $ (50,613,484 )

Weighted average number of shares outstanding
-basic 22,741,726 22,381,860 22,648,962 20,825,206
-diluted 22,846,549 22,381,860 22,697,864 20,825,206

Net income (loss) per share
-basic $ 0.09 $ (2.28 ) $ 0.16 $ (2.43 )
-diluted $ 0.09 $ (2.28 ) $ 0.16 $ (2.43 )

Reconciliation of GAAP Net Income to EBITDA (1) and EBITDA (2)

Three Months Nine Months
Ended September 30, Ended September 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)

Net Income $ 1,991,799 $ (50,955,365 ) $ 3,589,176 $ (50,613,484 )

Adjustments
Depreciation and amortization 772,275 1,505,705 2,324,018 5,582,615
Impairment charge - 56,772,541 - 56,772,541
Interest 597,742 896,913 2,164,426 2,646,049
Taxes 1,340,816 (5,759,836 ) 2,581,535 (5,647,221
EBITDA (1) 4,702,632 2,459,958 81,222,657 8,740,500

- 890,516 - 890,516
Adjusted EBITDA (2) 4,702,632 3,350,474 10,659,155 9,631,016

ATS Corporation
Consolidated Balance Sheets

September 30, December 31,
2009 2008
(unaudited) (audited)

ASSETS
Current assets
Cash $ 398,866 $ 364,822
Accounts receivable, net 23,062,128 29,268,647
Prepaid expenses 717,246 537,974
Other current assets 4,775 22,771
Deferred income taxes, current 1,009,985 1,321,890

Total current assets 25,193,000 31,516,104

Property and equipment, net 3,174,644 3,712,340
Goodwill 55,370,011 59,128,648
Intangible assets, net 6,653,777 8,304,686
Restricted cash 1,323,930 1,316,530
Other assets 190,357 387,897
Deferred income taxes 2,026,296 2,003,348

Total assets $ 93,932,015 $ 106,369,553
LIABILITIES AND SHAREHOLDERS` EQUITY
Current liabilities:
Current portion of long-term debt $ 21,205,176 $ 2,583,333
Capital leases - current portion 22,927 86,334
Accounts payable and accrued expenses 7,833,839 10,224,266
Accrued salaries and related taxes 4,150,549 2,999,576
Accrued vacation 2,646,060 2,220,865
Income taxes payable, net 775,373 600,121
Deferred revenue 1,509,019 1,745,352
Deferred rent - current portion 320,498 379,520

Total current liabilities 38,463,441 20,839,367

Long-term debt - net of current portion 458,333 34,492,558
Capital leases - net of current portion - 745
Deferred rent - net of current portion 2,700,109 2,842,171
Other long-term liabilities (at fair value) 1,695,569 2,283,256

Total liabilities 43,317,452 60,458,097

Shareholders` equity:
Preferred stock $0.0001 par value, 1,000,000 shares authorized, and no shares issued and outstanding - -
Common stock $0.0001 par value, 100,000,000 shares authorized, 31,082,865 and 30,867,304 shares issued,respectively, and 22,746,232 and 22,524,549 shares outstanding, respectively 3,109 3,087
Additional paid-in capital 131,412,907 130,767,038
Treasury stock, at cost, 8,344,633 and 8,342,755 shares held, respectively (30,276,223 ) (30,272,007 )
Accumulated deficit (49,601,646 ) (53,190,822 )
Accumulated other comprehensive loss (net of tax benefit of $650,251 and $887,416, respectively) (923,584 ) (1,395,840 )

Total shareholders` equity 50,614,563 45,911,456

Total liabilities and shareholders` equity $ 93,932,015 $ 106,369,553

ATS Corporation
Consolidated Statements of Cash Flows (unaudited)

Nine months Ended
September 30,
2009 2008
(unaudited) (unaudited)
Cash flows from operating activities
Net income (loss) $ 3,589,176 $ (50,613,484 )
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization 2,324,018 5,582,615
Impairment charge - 56,772,541
Stock-based compensation 519,462 618,634
Deferred income taxes (87,772 ) (8,029,350 )
Deferred rent (201,085 ) (23,574 )
Gain on disposal of equipment - (2,373 )
Provision for bad debt 432,703 23,781

Changes in assets and liabilities, net of adjustments related to other comprehensive loss:
Accounts receivable 5,773,814 (78,539 )
Prepaid expenses and other current assets (179,273 ) 160,306
Restricted cash (7,400 ) (30,192 )
Other assets 215,537 (1,014,469 )
Accounts payable and other accrued expenses (2,550,401 ) 639,364
Accrued salaries and related taxes 1,150,973 (596,350 )
Accrued vacation 425,195 144,523
Accrued interest 358,433 240,391
Income taxes payable and receivable 238,095 1,738,485
Other current liabilities (236,333 ) (200,866 )
Other long-term liabilities - (45,976 )
Net cash provided by operating activities 11,765,142 5,285,467

Cash flows from investing activities
Purchase of property and equipment (135,414 ) (151,280 )
Proceeds from disposals of equipment - 21,352
Proceeds from release of escrows 3,758,637 -
Acquisitions of businesses - net of cash acquired - 155,891
Net cash provided by investing activities 3,623,223 25,963

Cash flows from financing activities
Borrowings on line of credit 45,760,848 47,868,284
Payments on line of credit (59,947,409 ) (53,128,697 )
Issuance of notes payable 139,176 -
Payments on notes payable (1,364,996 ) (2,174,357 )
Payments on capital leases (64,152 ) (74,516 )
Proceeds from stock issued pursuant to Employee Stock Purchase Plan 126,428 211,813
Payments to repurchase stock (4,216 ) -
Proceeds from exchange of stock for warrants, net of expense - 234,135
Net cash used in financing activities (15,354,321 ) (7,063,338 )

Net increase (decrease) in cash 34,044 (1,751,908 )
Cash, beginning of period 364,822 1,901,977
Cash, end of period $ 398,866 $ 150,069

Supplemental disclosures:
Cash paid or received during the period for:
Income taxes paid $ 2,436,380 $ 2,340,704
Income tax refunds 12,148 1,917,399
Interest paid 1,861,649 2,463,804
Interest received 48,256 28,227
Non-cash investing and financing activities and adjustment to other comprehensive loss:
Unrealized other comprehensive income (loss) on interest rate swap, net of tax 350,522 201,274

ATS Corporation
Company Contact:
Joann O`Connell
Vice President, Investor Relations
(571) 766-2400
or
Media Contact:
Penny Parker
Corporate Communications Manager
(571) 766-2400

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