NANAIMO, BC, April 28, 2020 /CNW/ - Atlas Engineered Products ("AEP" or the "Company") (TSX-V: AEP; OTC Markets: APEUF) is pleased to provide an update regarding significant contracts being awarded at its operations across Canada.
"AEP continues to be deemed an essential business and all of locations across Canada remain open at this time," said Brittany Ray-Wilks, Executive Vice President. "We are very proud of the actions we have taken as a company, as well as our team's ability to adapt and change to a new way of working and doing business. We continue to not only serve our loyal customers, but to win new contracts. We are looking forward to a very busy spring and summer as the construction season gets ready to take off."
Despite the uncertainty presented by COVID-19, AEP maintains a focused sales strategy, and, as a result, all of our locations are seeing growth in their sales pipelines. Quoting activities have been steadily increasing at our Western Canadian operations. In addition, the Prairies and Ontario regions are seeing a comeback as the weather improves and planning begins for the lifting COVID-19 restrictions.
"The construction industry is looking at alternative options and we are seeing a shift towards customized engineered roofs, walls, floors and beams as a total solution offering. This appears to be true for single residential buildings, multi-family developments, sub-division developments, as well as light industrial and/or wood construction commercial buildings alike. Despite the impacts of COVID-19, we continue to see the value and size of individual AEP projects and client relationships growing rapidly," explained AEP President and CEO Dirk Maritz. "By investing in new technologies, upgrading our design and engineering capacities, and improving workflows and productivity in our operations, we are able to offer our customers additional products and complete turn-key project solutions, allowing us to win projects for the rest of 2020 and beyond."
Atlas Building Systems (Nanaimo, BC) continues to expand its business with significant multi-product contracts and has been delivering on a significant Engineered Wood Product (EWP) and Truss packages for several developments across Vancouver Island. In addition to normal day-to-day sales and volumes, Atlas Building Systems has also:
- Entered new geographical markets outside of its traditional Nanaimo market. Atlas has won two new truss contracts with W&J Construction Ltd. in Langford and Seymour Pacific Developments in Port Alberni that total over $200,000;
- Completed new market penetration and product diversification. Atlas has won a Truss and EWP project with Campbell Shores Holdings in Campbell River worth more than $300,000; and
- Entered into numerous multi-level residential projects. Atlas has won a contract with Northview Apartment REIT for an EWP and Truss package for between $800,000 - $900,000, and another contract with Windley Contracting for approximately $500,000.
Coastal Windows & Doors (Nanaimo, BC) customer lists continue to grow, and project gains continue to be seen in Nanaimo. Coastal is now also making progress into the Victoria market, the North Island and other parts of BC.
South Central Building Systems (Carman, MB) is in the midst of a significant project quoting as the Prairie winter is finally subsiding.
In Ontario quoting activity and projects wins continues to increase, and Truss and EWP combo packages are starting to account for more significant new contracts. Pacer Building Components (Illderton, ON) recently secured over $400,000 of purchase orders for May and June 2020.
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, 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, 2019. In addition, the COVID19 pandemic has had a largely unprecedented and unpredictable impact, and could negatively impact the demand for AEP's products and services, the ability to collect accounts receivable or ability to maintain its operations. 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.
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SOURCE Atlas Engineered Products Ltd.
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