Atlas Engineered Products Reports Third Quarter 2024 Financial and Operating Results

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, 2024. All amounts are presented in Canadian dollars.

Highlights for Third Quarter 2024:

• Revenue of $16.5M, representing an increase of 15% year-over-year
• Wall Panel revenue increased by 120% year-over-year
• Engineered Wood Products revenue increased by 48% year-over-year
• Adjusted EBITDA of $3.05M, representing an increase of 3% year-over-year, despite costs of $0.2M associated with automation and expansion of the sales team
• Sales team has expanded by 63% year-to-date and expect to see significant contributions to revenue growth and profitability in 2025

Hadi Abassi, President and CEO of AEP, commented: “We anticipated the market to continue to be slow and more competitive until the interest rate cut cycle inspired builders to increase activity. The team worked diligently to take market share, and successfully increase sales in other products lines like walls panels and engineered wood products. The Company has recently seen an increase in market activity for the upcoming quarter and see a building order book and funnel for 2025, which we see as a key inflection year for the Company. Ultimately, we continue to strategically balance the need for incremental sales resources heading into a busy 2025, with management around market share gains and gross margins. We see a deep pipeline of M&A opportunities at attractive multiples and are preparing for an exciting future with robotics automation. The Company has instituted a renewal to the NCIB, as we see these levels as attractive for deployment of capital back into our shares through accretive repurchases”.

Revenue for the three and nine months ended September 30, 2024 was $16,550,911 and $40,759,108 compared to revenue of $14,369,546 and $35,216,250 for the three and nine months ended September 30, 2023, representing a 15% and 16% increase. The acquisition of LCF added significant wall panel production to the Company and knowledge for the entire group. Overall wall panel revenues have increased 120% and 368%, respectively, for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023. At our Ontario and BC locations, the Company has seen a 272% and 800% increase in wall panel revenues for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023.

Gross profit for the three months ended September 30, 2024 was $4,084,663 compared to $4,258,301 for the three months ended September 30, 2023. Gross profits declined due to a more competitive market for sales. Due to this more competitive market the Company has had to adjust its internal strategy to allow for lower margin work in order to gain revenues and market share. The Company has also invested in increasing the number of sales staff, training, and management in order to gain revenues and market share and prepare for future robotic expansion. This has impacted the Company’s gross profits and income in the short term. The Company expects this to normalize in the fourth quarter of 2024 and into 2025.

Net income after taxes was $914,458 for the three months ended September 30, 2024 compared to net income after taxes of $1,300,751 for the three months ended September 30, 2023. This decrease was primarily due to a more competitive market for sales that resulted in lower margins, as well as, increased costs related to future sales and robotics plans that will require significant expansion in sales teams, management, and support staff.

Non-IFRS measure adjusted EBITDA for the three months ended September 30, 2024 was $3,046,469 compared to $2,950,340 in adjusted EBITDA for the three months ended September 30, 2023, representing a 3% increase. This does not include any adjustment for costs associated with future automation and expansion of the sales team of $0.2M.

For full results 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.

Contact:

Jake Bouma – Representative for AEP – (604) 317-3936 – jake.bouma@atlasaep.ca

Source: Atlas Engineered Products Ltd.