Atlas Engineered Products Reports Record First Quarter with Positive Net Income in Q1 2021 Financial and Operating Results

Atlas Engineered Products (“AEP” or the “Company”) is pleased to announce its financial and operating results for the first quarter ended March 31, 2021. All amounts are presented in Canadian dollars.

“The entire team at AEP has been working incredibly hard to navigate the challenges caused by the COVID-19 pandemic; from keeping employees safe to navigating material pricing increases and supply shortages. These record first quarter results showcase those efforts and I am incredibly proud of what the Company and its employees have accomplished,” said Hadi Abassi, CEO & President, Founder. “We are optimistic and excited to see what the rest of 2021 will bring with continued hard work and perserverence.”

Financial Highlights for Q1 2021

–Revenue increased 29% to $9,129,633 for the three months ended March 31, 2021 from $7,097,979 for the three months ended March 31, 2020. This increase represents the Company’s best first quarter to date.

–Non-IFRS measure normalized EBITDA increased substantially to $1,187,376 for the three months ended March 31, 2021 from $102,042 for the three months ended March 31, 2020. This turnaround due to substantial increases in revenues and gross margin, and significantly reduced operating expenses.

–Gross margin for the three months ended March 31, 2021 was 19%, which was up from gross margin of 16% for the three months ended March 31, 2020. Gross margins increased by 3% due to the Company’s hard work navigating and controlling pricing during the rising raw material prices and shortages, while constantly focusing on improving efficiencies for new product lines and acquisitions. Additionally, the manufacturing equipment bought at the end of January 2021 also improved automation at one of AEP’s facilities, with the ability for improved efficiencies within our core product lines.

–Operating expenses were $1,529,904 for the three months ended March 31, 2021 compared to $1,978,758 for the three months ended March 31, 2020, representing an improvement of 23%. Operating expenses have decreased sharply due to the Company’s cost cutting measures and focus on profitability.

–The Company recorded a net income of $51,208 for the three months ended March 31, 2021 compared to a net loss of $(762,961) for the three months ended March 31, 2020. This substantial increase was driven by increased revenues, improved gross margins, and significantly reduced operating expenses.

About Atlas Engineered Products Ltd.

AEP is a growth company that is acquiring and operating profitable, well-established operations in Canada’s truss and engineered products industry. We have a well-defined and disciplined acquisition and operating growth strategy enabling us to scale aggressively and apply new technologies, giving us a unique opportunity to consolidate a fragmented industry of independent operators.

Source: Atlas Engineered Products Ltd.