NANAIMO, BC, May 19, 2021 /CNW/ - Atlas Engineered Products
("AEP" or the "Company") (TSXV: AEP) (OTC Markets: APEUF) 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.
EBITDA
SUMMARY
|
Three
Months
Ended
|
Three
Months
Ended
|
Mar
2021
|
Mar
2020
|
EBITDA
|
827,012
|
(182,533)
|
Adjusted
EBITDA
|
855,674
|
(160,974)
|
Normalized
EBITDA
|
1,187,376
|
102,042
|
- 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.
SELECTED FINANCIAL
RESULTS
|
Three Months
Ended
|
Three Months
Ended
|
Mar
2021
|
Mar
2020
|
Revenue from the
Business
|
9,129,633
|
$7,097,979
|
Cost of
Sales
|
7,400,910
|
5,985,305
|
Gross
Profit
|
1,728,723
|
1,112,674
|
Gross Margin
%
|
19%
|
16%
|
Operating
Expenses
|
1,529,904
|
1,978,758
|
Operating Income
(loss)
|
198,819
|
(866,084)
|
Net Income (loss)
After Adjustments and
Taxes
|
51,208
|
(762,961)
|
Adjusted
EBITDA
|
855,674
|
(160,974)
|
Adjusted EBITDA
Margin %
|
9%
|
-2%
|
Normalized
EBITDA
|
1,187,376
|
102,042
|
Normalized EBITDA
Margin %
|
13%
|
1%
|
Weighted Average
Number of Shares
|
57,725,730
|
52,910,873
|
Adjusted EBITDA per
Share ($ per share)
|
0.01
|
(0.00)
|
Income (Loss) per
Share, Basic and Fully
Diluted ($ per share)
|
0.00
|
(0.01)
|
|
|
|
Selected Financial
Information as at:
|
|
Mar
2021
|
Mar
2020
|
Total
Assets
|
28,323,778
|
$27,981,392
|
Total Non-Current
Liabilities
|
9,410,540
|
10,204,196
|
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 months ended March 31,
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 months ended March 31,
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 months ended
March 31, 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.