Q2 Revenues Increase 82%, Net Income Increased
650%
NANAIMO, BC, Aug. 23, 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
three and six months ended June 30,
2021. All amounts are presented in Canadian dollars.
"These results are a culmination of hard work, perseverance, and
focus by the entire AEP team to deal with all the recent challenges
that have been out of our control and need to be handled every hour
of the day," said Hadi Abassi, CEO & President, Founder. "All
of us at AEP are focusing on the day to day and looking to the
future to the opportunities that arise through successful
operational and financial results like these."
Financial Highlights for Q2 2021:
- Revenue increased by 82% to $14,408,430 for the three months ended
June 30, 2021 compared to
$7,900,805 for the three months ended
June 30, 2020. This increase
represents the Company's best Q2 results to date. Revenue also
increased 57% to $23,538,063 for the
six months ended June 30, 2021 from
$14,998,784 for the six months ended
June 30, 2020.
- Non-IFRS measure normalized EBITDA increased to $2,866,434 and $4,053,810 for the three and six months ended
June 30, 2021 from $1,077,046 and $1,179,088 for the three and six months ended
June 30, 2020. This turnaround is due
to increases in revenues and gross margin, and reduced operating
expenses. Additionally, normalized EBITDA of $4,053,810 for the six months ended June 30, 2021 is an increase over the entire
fiscal year ended December 31, 2020
of $4,045,232 after only half a
year.
EBITDA
SUMMARY
|
Three Months
Ended
|
Six Months
Ended
|
Year
Ended
|
June
2021
|
June
2020
|
June
2021
|
June
2020
|
Dec
2020
|
EBITDA
|
$2,827,271
|
$1,096,589
|
$3,654,283
|
$914,056
|
$3,722,710
|
Adjusted
EBITDA
|
2,866,434
|
942,566
|
3,722,108
|
781,592
|
3,346,671
|
Normalized
EBITDA
|
2,866,434
|
1,077,046
|
4,053,810
|
1,179,088
|
4,045,232
|
- Gross margin for the three months ended June 30, 2021 was 26%, up from gross margin of
24% for the three months ended June 30,
2020. Gross margins also increased to 23% for the six months
ended June 30, 2021 from 20% for the
six months ended June 30, 2020 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.
- The Company recorded a net income of $1,649,359 for the three months ended
June 30, 2021 compared to a net
income of $220,601 for the three
months ended June 30, 2020. This 650%
increase was driven by increased revenues, improved gross margins,
and reduced operating expenses.
SELECTED FINANCIAL
RESULTS
|
Three Months
Ended
|
Six Months
Ended
|
June
2021
|
June
2020
|
June
2021
|
June
2020
|
Revenue from the
Business
|
$14,408,430
|
$7,900,805
|
$23,538,063
|
$14,998,784
|
Cost of
Sales
|
10,614,204
|
6,031,627
|
18,015,114
|
12,016,932
|
Gross
Profit
|
3,794,226
|
1,869,178
|
5,522,949
|
2,981,852
|
Gross Margin
%
|
26%
|
24%
|
23%
|
20%
|
Operating
Expenses
|
1,603,062
|
1,620,503
|
3,132,966
|
3,599,261
|
Operating Income
(Loss)
|
2,191,164
|
248,675
|
2,389,983
|
(617,409)
|
Net Income (Loss)
After Adjustments and Taxes
|
1,649,359
|
220,601
|
1,700,567
|
(542,360)
|
Adjusted
EBITDA
|
2,866,434
|
942,566
|
3,722,108
|
781,592
|
Adjusted EBITDA
Margin %
|
20%
|
12%
|
16%
|
5%
|
Normalized
EBITDA
|
2,866,434
|
1,077,046
|
4,053,810
|
1,179,088
|
Normalized EBITDA
Margin %
|
20%
|
14%
|
17%
|
8%
|
Weighted Average
Number of Shares
|
57,725,730
|
57,725,730
|
57,725,730
|
55,318,301
|
Adjusted EBITDA per
Share ($ per share)
|
0.05
|
0.02
|
0.06
|
0.01
|
Income (loss) per
Share, Basic and Fully Diluted ($ per share)
|
0.03
|
0.00
|
0.03
|
(0.01)
|
|
|
|
|
|
Selected Financial
Information as at:
|
|
|
|
June
2021
|
Dec
2020
|
Total
Assets
|
|
|
$32,042,324
|
$27,092,639
|
Total Non-Current
Liabilities
|
|
|
9,036,007
|
8,889,324
|
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 June 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 six months ended June 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 six months
ended June 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.