Atlas Engineered Products Reports Record Q3 Results Record Q3 Revenues, Increase of 81%

Atlas Engineered Products (“AEP” or the “Company”) is pleased to announce its financial and operating results for the three and nine months ended September 30, 2021. All amounts are presented in Canadian dollars.

“I am incredibly proud of the AEP team with their dedication and resilience in producing these record results,” said Hadi Abassi, AEP’s CEO, President and Founder. “The mandate for our team this year was improving AEP’s bottom line results and I couldn’t be happier with the results as we achieved net income of almost $4.5m for the year to date!”

Financial Highlights for Q3 2021

-Revenue increased by 81% to $17,563,359 for the three months ended September 30, 2021 compared to $9,677,692 for the three months ended September 30, 2020. This increase represents the Company’s best Q3 results to date. Revenue also increased 67% to $41,101,422 for the nine months ended September 30, 2021 from $24,676,476 for the nine months ended September 30, 2020. The Company’s revenues of $41,101,422 for the nine months ended September 30, 2021 exceeds revenue results for the entire year ended December 31, 2020 which was $35,734,415.

-Non-IFRS measure normalized EBITDA increased by 226% and 232% to $4,444,906 and $8,429,294 for the three and nine months ended September 30, 2021 compared to $1,363,275 and $2,542,363 for the three and nine months ended September 30, 2020. This turnaround was due to increases in revenues and gross margin, and reduced operating expenses. Normalized EBITDA of $8,429,294 for the nine months ended September 30, 2021 has more than doubled the Company’s normalized EBITDA for the full year ended December 31, 2020 which was $4,045,232.

-Gross profits for the three and nine months ended September 30, 2021 of $5,450,004 and $10,972,953, respectively, were more than double gross profits for the three ($2,124,812) and nine months ($5,106,664) ended September 30, 2020. Gross margin for the three months ended September 30, 2021 was 31%, up from gross margin of 22% for the three months ended September 30, 2020. Gross margins also increased to 27% for the nine months ended September 30, 2021 from 21% for the nine months ended September 30, 2020 due to the Company’s hard work navigating and controlling pricing during the rising raw material prices and shortages and now the reducing raw material prices, 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.

-The Company recorded a net income of $2,793,913 and $4,494,480 for the three and nine months ended September 30, 2021 compared to a net income of $419,589 for the three months ended September 30, 2020 and a net loss of $122,771 for the nine months ended September 30, 2020. This significant increase was also driven by increased revenues, improved gross margins, and reduced operating expenses.

“As noted in our third quarter peformance update, Q3 has provided another record quarter for the Company. These results were thanks to strong demand and hard work from the entire AEP team to improve efficiency and successfully maneouver us through fluctuating material prices and  both material and labour shortages,” said Melissa MacRae, Interim CFO. “We are all looking forward to what our fourth quarter is going to bring to finish out our results for 2021.”

For the complete press release, click here.

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.