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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.
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 $(762,961) for the three months ended March 31, 2020. This substantial increase was driven by increased revenues, improved gross margins, and significantly reduced operating expenses.
SELECTED FINANCIAL RESULTS
Revenue from the Business
Cost of Sales
Gross Margin %
Operating Income (loss)
Net Income (loss) After Adjustments and
Adjusted EBITDA Margin %
Normalized EBITDA Margin %
Weighted Average Number of Shares
Adjusted EBITDA per Share ($ per share)
Income (Loss) per Share, Basic and Fully
Selected Financial Information as at:
Total Non-Current Liabilities
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.
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