Atlas Engineered Products Reports Record Q2 2018 Financial Results - Revenues Up 22%
January 25, 2018
Nanaimo, British Columbia Canada - ATLAS ENGINEERED PRODUCTS LTD. (the “Company” or “Atlas”) (TSX VENTURE: AEP), a leading supplier of trusses and engineered wood products, yesterday reported its financial results for the second quarter ended November 30, 2017. The financial statements and associated management discussion and analysis can be viewed on SEDAR at www.sedar.com. All amounts in are in Canadian dollars.
Financial Highlights for the Second Quarter 2018:
• Strong quarterly performance with revenues and operating income reaching record levels.
• Record revenues of $2,791,623 for the quarter ended November 30, 2017 (YTD: $5,530,681) compared to $2,294,954 for the quarter ended November 30, 2016 (YTD: $4,255,344), an increase of 22%.
• Gross Margin of 29% for the quarter ended November 30, 2017 compared to 28% for the quarter ended November 30, 2016.
• Income from operations of $513,867 for the quarter ended November 30, 2017 (YTD: $1,034,373) compared to income from operations of $537,010 for the quarter ended November 30, 2016 (YTD: $976,423).
• Adjusted EBITDA* totalled $649,087 after removing the listing expense related to the reverse takeover transaction (23% of total revenue). • The Company recorded a one-time non-cash item listing expense of $4,864,786, which resulted in a net loss of $4,506,473 during the quarter ended November 30, 2017 (YTD: $4,173,691).
• As of November 30, 2017, the Company had 30,730,405 common shares issued and outstanding.
Business Highlights for the Second Quarter 2018:
• The Company completed its reverse takeover acquisition and listed as a Tier 1 industrial issuer on the TSX Venture Exchange on November 9, 2017.
• Concurrent with the reverse takeover acquisition, the Company completed a $4.25 million private placement financing to strengthen the Company’s balance sheet, fund business development and pursue its acquisition strategy.
• The Company has implemented its acquisition strategy by:
• announcing the proposed acquisition of Clinton Roof Truss Ltd., which includes 31,000 square feet of plant, warehouse and office space on a 5- acre site strategically located to provide access to the growing Ontario communities west of Mississauga.
• announcing the proposed acquisition of Selkirk Truss (2010) Limited, based in Castlegar, British Columbia, which will provide a gateway to the Kootenay region for the Company. Atlas President, Guy Champagne, said, “Our record quarterly revenue and EBITDA results provide a remarkably strong base for the results we expect our recently announced acquisitions will add to our future financial results.” Champagne continued, “We have strong cash reserves and many future acquisition targets to evaluate, and are very pleased at this early stage to find ourselves solidly ahead of plan in all respects.”
About Atlas Engineered Products Ltd.
Atlas Engineered Products is one of British Columbia’s leading suppliers of trusses and engineered wood products. The company was formed over 18 years ago and operates manufacturing and distribution facilities in Nanaimo to meet the needs of residential and commercial builders. Atlas Engineered Products has expert design and engineering teams, a multipleshift state-of-the-art truss manufacturing operation, and large inventories of engineered beam and flooring components. Atlas Engineered Products aims to grow its base of business across Canada by pursuing an aggressive acquisition and consolidation strategy, and will continue to bring its construction industry partners unparalleled excellence in service, product, and support.
For further information please contact:
Atlas Engineered Products Ltd.
Phone: 1-250-754-1400
2005 Boxwood Rd.
Nanaimo, BC V9S 5X9
www.atlasengineeredproducts.co...
For investor relations please contact:
Rob Gamley
Phone: 1-604-689-7422
Email: [email protected]
Contact Financial Corp.
810 – 609 Granville St.
Vancouver, BC V7Y 1G5
*Non-IFRS Measures
Adjusted EBITDA is a measure not recognized under IFRS. However, management of Atlas believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-toperiod operating comparisons. Adjusted EBITDA does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Atlas' Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Atlas posted on SEDAR (www.sedar.com).
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. The Company 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 the Company’s control. Such factors include, among other things: risks and uncertainties relating to the Company including those to be described in the Filing Statement filed by the Company on www.sedar.com. 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.
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.