NANAIMO, BC, Oct. 2, 2019 /CNW/ - Atlas Engineered Products ("AEP" or the "Company") (TSX-V: AEP; OTC Markets: APEUF) is pleased to highlight recent significant contract awards based on AEP's expanding ability to deliver new product lines from multiple facilities.
"It is exciting to see our expanded production capacity reflected in the contracts and purchase orders we are receiving from both existing and new clients, as well as specific newly targeted markets" explained CEO Dirk Maritz. "AEP is seeing growth in each business division – residential, commercial and agricultural. As the construction industry embraces the shift to customized engineered roofs, walls, floors and beams, the value and size of individual AEP projects and client relationships are growing rapidly."
- Ontario custom homes sub-division – AEP's Pacer Building Components division in Ilderton, Ontario has been engaged to supply roof trusses for the first phase of a Wastell Homes custom homes development consisting of 150 homes plus 4 multi-family buildings with a total of 360 units. Two additional phases are expected for this project.
- Ontario agricultural building – Additional saws and truss tables at AEP's Clinton Building Components facility in Clinton, Ontario, have resulted in significantly larger project wins. A recent bid by Clinton Building Components on a barn truss project resulted in a single order for between $400,000 - $500,000.
- Vancouver Island multi-family developments – The ability of AEP's Atlas Building Systems facility in Nanaimo, BC to supply engineered wood products (EWP) in addition to trusses has resulted in significantly expanded purchase orders from Vancouver Island developer Westurban Developments Ltd. Four recent projects in Duncan, Parksville, Nanaimo and Campbell River, BC generating contracts worth more than $500,000
- Vancouver Island multi-story condominiums – The use of EWP in multi-story buildings is a significant growth area for AEP. A Nanaimo, BC based client is developing six new, four-plus story projects using Atlas Building Systems EWP and trusses. The total value of these purchase orders is well over $1 million.
- US brand name hotel – Deliveries of trusses and wall panels to a Michigan brand-name hotel project began in September 2019. This single contract is worth over $750,000 and represents a significant expansion of AEP's reach into the US market.
"The order books at all our facilities across Canada are very robust right through into 2020. As a result, we expect our recent revenue and net income trajectory to continue. We anticipate our Q3 revenues to be in the range of 14% to 18% higher than Q2 2019," said Mr. Maritz. "At this level, we expect to deliver solid normalized EBITDA margin performance in the 13% to 17% range, depending on the exact product mix. We continue to drive improvement of margins across all product categories"
This outlook is provided to enhance visibility into AEP's expectations for financial targets for the remainder of 2019. Please refer to the section below regarding forward-looking statements.
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. AEP has a well-defined and disciplined acquisition and operating growth strategy enabling it to scale aggressively, giving AEP 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. 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 six months ended June 30, 2019. 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, the Company undertakes no obligation to publicly update or revise forward-looking information.
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SOURCE Atlas Engineered Products Ltd.
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