NANAIMO, BC, Nov. 16, 2021 /CNW/ - Atlas Engineered Products
("AEP" or the "Company") (TSXV: AEP; (OTC-PINK:
APEUF) 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.
EBITDA
SUMMARY
|
Three Months
Ended
|
Nine Months
Ended
|
Year
Ended
|
Sept
2021
|
Sept
2020
|
Sept
2021
|
Sept
2020
|
Dec
2020
|
EBITDA
|
$4,419,712
|
$1,418,044
|
$8,004,573
|
$2,332,100
|
$3,722,710
|
Adjusted
EBITDA
|
4,444,906
|
1,175,598
|
8,097,592
|
1,957,190
|
3,346,671
|
Normalized
EBITDA
|
4,444,906
|
1,363,275
|
8,429,294
|
2,542,363
|
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.
SELECTED FINANCIAL
RESULTS
|
Three Months
Ended
|
Nine Months
Ended
|
Sept
2021
|
Sept
2020
|
Sept
2021
|
Sept
2020
|
Revenue from the
Business
|
$17,563,359
|
$9,677,692
|
$41,101,422
|
$24,676,476
|
Cost of
Sales
|
12,113,355
|
7,552,880
|
30,128,469
|
19,569,812
|
Gross
Profit
|
5,450,004
|
2,124,812
|
10,972,953
|
5,106,664
|
Gross Margin
%
|
31%
|
22%
|
27%
|
21%
|
Operating
Expenses
|
1,563,116
|
1,641,994
|
4,696,082
|
5,241,255
|
Operating Income
(Loss)
|
3,886,888
|
482,818
|
6,276,871
|
(134,591)
|
Net Income (Loss)
After Adjustments and Taxes
|
2,793,913
|
419,589
|
4,494,480
|
(122,771)
|
Adjusted
EBITDA
|
4,444,906
|
1,175,598
|
8,097,592
|
1,957,190
|
Adjusted EBITDA
Margin %
|
25%
|
12%
|
20%
|
8%
|
Normalized
EBITDA
|
4,444,906
|
1,363,275
|
8,429,294
|
2,542,363
|
Normalized EBITDA
Margin %
|
25%
|
14%
|
21%
|
10%
|
Weighted Average
Number of Shares
|
57,725,730
|
57,725,730
|
57,725,730
|
56,126,635
|
Adjusted EBITDA per
Share ($ per share)
|
0.08
|
0.02
|
0.14
|
0.03
|
Income (loss) per
Share, Basic and Fully Diluted ($ per share)
|
0.05
|
0.01
|
0.08
|
(0.00)
|
|
|
|
|
|
Selected Financial
Information as at:
|
|
|
|
|
|
|
|
Sept
2021
|
Dec
2020
|
Total
Assets
|
|
|
$34,397,126
|
$27,092,639
|
Total Non-Current
Liabilities
|
|
|
8,540,356
|
8,889,324
|
"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."
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.
FORWARD LOOKING INFORMATION
Information set
forth in this news release contains forward-looking statements.
These statements reflect management's current estimates, beliefs,
intentions and expectations; they are not guarantees of future
performance. Although AEP believes that the expectations reflected
in the forward looking statements are reasonable, there is no
assurance that such expectations will prove to be correct, or that
such future events will occur in the disclosed time frames or at
all. AEP cautions that all forward looking statements are
inherently uncertain and that actual performance may be affected by
a number of material factors, many of which are beyond AEP's
control. Such factors include, among other things: Risks and
uncertainties relating to AEP, including those to be described in
the Management's Discussion and Analysis ("MD&A") for AEP's
three and nine months ended September
30, 2021. Accordingly, actual and future events,
conditions and results may differ materially from the estimates,
beliefs, intentions and expectations expressed or implied in the
forward-looking information. Except as required under applicable
securities legislation, AEP undertakes no obligation to publicly
update or revise forward-looking information.
SELECTED FINANCIAL INFORMATION
Except as
noted below, the financial information provided in this news
release is derived from the AEP's unaudited financial statements
for the three and nine months ended September 30, 2021 and the related notes thereto
as prepared in accordance with International Financial Reporting
Standards ("IFRS") and related IFRS Interpretations Committee
("IFRICs") as issued by the International Accounting Standards
Board ("IASB"). A copy of AEP's unaudited financial
statements for the three and nine months ended September 30, 2021 and the related
Management's Discussion and Analysis is available on AEP's website
at www.atlasengineeredproducts.com or on SEDAR
at www.sedar.com.
Financial information for AEP's acquisitions are included in
AEP's unaudited financial statements from the date of acquisition.
Financial information for acquired businesses for periods prior to
the date of acquisition were prepared by management and have not
been reviewed or audited by independent auditors.
NON-GAAP/NON-IFRS FINANCIAL MEASURES
Certain
financial measures in this news release do not have any
standardized meaning under IFRS and, therefore are considered
non-IFRS or non-GAAP measures. These non-IFRS measures are used by
management to facilitate the analysis and comparison of
period-to-period operating results for AEP and to assess whether
AEP's operations are generating sufficient operating cash flow to
fund working capital needs and to fund capital expenditures. As
these non-IFRS measures do not have any standardized meaning under
IFRS, these measures may not be comparable to similar measures
presented by other issuers. The non-IFRS measures used in this news
release may include "EBITDA", "EBITDA margin", "adjusted EBITDA",
"adjusted EBITDA margin", "normalized EBITDA" and "normalized
EBITDA margin". "EBITDA" is calculated as revenue less operating
expenses before interest expense, interest income, amortization and
depletion, impairment charges, and income taxes. "EBITDA margin" is
EBITDA expressed as a percentage of revenues. "Adjusted EBITDA" is
EBITDA after adjusting for share-based payments, foreign exchange
gains or losses and non-recurring items. "Adjusted EBITDA margin"
is adjusted EBITDA expressed as a percentage of revenues.
"Normalized EBITDA" is EBITDA adjusted for one-time items.
"Normalized EBITDA margin" is normalized EBITDA expressed as a
percentage of revenues.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
SOURCE Atlas Engineered Products Ltd.