21:26:50 EST Fri 09 Dec 2022
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
Atlas Engineered Products Ltd
Symbol AEP
Shares Issued 57,197,263
Close 2022-11-24 C$ 0.64
Recent Sedar Documents

Atlas Engineered earns $3.13-million in Q3 2022

2022-11-24 09:27 ET - News Release

Mr. Hadi Abassi reports

ATLAS ENGINEERED PRODUCTS REPORTS RECORD THIRD QUARTER FINANCIAL AND OPERATING RESULTS

Atlas Engineered Products Ltd. has released its financial and operating results for the three and nine months ended Sept. 30, 2022.

Financial highlights for Q3 2022:

  • Revenue increased to $17,638,289 for the three months ended Sept. 30, 2022, from $17,563,359 for the three months ended Sept. 30, 2021. Additionally, revenue increased to $46,909,032 for the nine months ended Sept. 30, 2022, from $41,101,422 for the nine months ended Sept. 30, 2021. This increase now represents the company's best third quarter to date.
  • Non-IFRS (international financial reporting standard) EBITDA (earnings before interest, taxes, depreciation and amortization) for the three and nine months ended Sept. 30, 2022, were $5,098,287 and $11,561,318, with an EBITDA margin of 29 per cent and 25 per cent. EBITDA for the three and nine months ended Sept. 30, 2021, were $4,555,705 and $8,209,988, with an EBITDA margin of 26 per cent and 20 per cent. EBITDA and EBITDA margin for the three and nine months ended Sept. 30, 2022, increased compared with the three and nine months ended Sept. 30, 2021, due to increased net income for the period resulting from increased sales and improved gross margins.
  • Gross margin for the three and nine months ended Sept. 30, 2022, was 35 per cent and 32 per cent, which was up from a gross margin of 31 per cent and 27 per cent for the three and nine months ended Sept. 30, 2021. Gross margins increased due to pricing assessments and updates being completed at all locations due to the fluctuating costs of raw materials and labour. The company has also focused on improving efficiencies on new product lines and acquisitions, including synergies between the new acquisition of Hi-Tec Industries Ltd. and Atlas Building Systems Ltd.
  • Net income after taxes was $3,131,612 and $6,739,031 for the three and nine months ended Sept. 30, 2022, compared with net income after taxes of $2,793,913 and $4,494,480 for the three and nine months ended Sept. 30, 2021. This increase was primarily due to the increase in revenues, improvements in gross margin and the new acquisition of Hi-Tec.

Expansion for 2022

On Feb. 28, 2022, the company acquired Hi-Tec located in Lantzville, B.C., on Vancouver Island. Since purchasing Hi-Tec Industries on Feb. 28, 2022, this operation contributed $1,586,956 in revenues and approximately $439,337 in EBITDA for the three months ended Sept. 30, 2022, and $4,441,970 in revenues and approximately $1,278,833 in EBITDA for the nine months ended Sept. 30, 2022. Atlas Engineered has been working on integration of this location which has included a number of synergies with Atlas Engineered's Atlas Building System location which include labour, shipping and equipment. These results are starting to show in the results of the three and nine months ended Sept. 30, 2022.

"We are pleased with another successful quarter of organic growth, as well as the contribution from our latest acquisition, Hi-Tec Industries Ltd.," said Hadi Abassi, chief executive officer, president and founder. "In addition to the ongoing operational improvements and growth of our legacy facilities, we have seen an immediate improvement in both revenues and margins from Hi-Tec. Our order book for the remainder of 2022 continues to be strong and we anticipate another year of record results for the company."

Normal course issuer bid (NCIB) update

Subsequent to the three and nine months ended Sept. 30, 2022, the company purchased and cancelled an additional 1,162,286 shares under the NCIB that ended on Nov. 3, 2022. From the commencement of this NCIB on Nov. 3, 2021, to the end on Nov. 3, 2022, the company purchased and cancelled a total of 2,886,286 common shares at a weighted average price of 55.3 cents per share.

Atlas Engineered has received approval for the TSX Venture Exchange to renew its NCIB to be transacted through the facilities of the TSX-V. The renewed NCIB will commence on Dec. 1, 2022, and end on Dec. 1, 2023, or such earlier date as Atlas Engineered may complete its purchases as set forth in its notice filed with the TSX-V. Under the renewed NCIB, Atlas Engineered may purchase up to 4,732,015 common shares of the company, representing up to 10 per cent of the company's public float as of Nov. 2, 2022.

Atlas Engineered's board of directors continues to believe that the current market price for the company's common shares does not currently reflect the underlying value of the company. As a result, depending on future price movements and other factors, Atlas Engineered's board of directors believes that the purchase of the shares is an appropriate use of Atlas Engineered's finances and in the best interests of Atlas Engineered's shareholders.

About Atlas Engineered Products Ltd.

Atlas Engineered is a growth company that is acquiring and operating profitable well-established operations in Canada's truss and engineered products industry. It has a well-defined and disciplined acquisition and operating growth strategy, enabling it to scale aggressively and apply new technologies, giving it a unique opportunity to consolidate a fragmented industry of independent operators.

We seek Safe Harbor.

© 2022 Canjex Publishing Ltd. All rights reserved.