NANAIMO,
BC, April 20, 2022 /CNW/ - Atlas Engineered
Products ("AEP" or the "Company") (TSXV: AEP) (OTC Markets: APEUF)
is pleased to announce its financial and operating results for the
year ended December 31, 2021. All
amounts are presented in Canadian dollars.
"2021 continued to present many challenges for AEP. Rapidly
increasing material prices, supply chain shortages, material
allotments, labour shortages, and shipping logistic difficulties
were some of the major challenges faced during 2021 and continuing
into 2022. Throughout this, the team at AEP persevered
to help produce record results for 2021," said Hadi Abassi, CEO
& President and Founder of AEP. "The AEP team continues to work
hard on behalf of all stakeholders and is well prepared for another
strong year in 2022."
Financial Highlights for Fourth Quarter and Fiscal
2021:
- Fourth quarter results for the three months ended December 31, 2021 compared to the three months
ended December 31, 2020 resulted in
the Company's best fourth quarter to date. As shown in the
following table, the Company achieved improvements in revenue,
gross margin, and net income after adjustments and taxes while
maintaining consistent operating expenses.
Quarterly
Comparison
|
Three Months
Ended
|
Three Months
Ended
|
Dec
2021
|
Dec
2020
|
Revenue from the
Business
|
$13,896,440
|
$11,057,939
|
Cost of
Sales
|
8,716,457
|
8,867,583
|
Gross
Profit
|
5,179,983
|
2,190,356
|
Gross Margin
%
|
37%
|
20%
|
Operating
Expenses
|
1,575,822
|
1,574,547
|
Operating
Income
|
3,604,161
|
615,809
|
Net Income After
Adjustments and Taxes
|
2,459,868
|
351,757
|
- Revenue increased 26% to $13,896,440 for the three months ended
December 31, 2021 from $11,057,939 for the three months ended
December 31, 2020. This increase now
represents the Company's best fourth quarter to date. Overall
revenue for the year ended December 31,
2021 was $54,997,862,
representing a 54% improvement compared to revenue of $35,734,415 for the year ended December 31, 2020.
- Gross margin increased to 37% for the three months ended
December 31, 2021 compared to 20% for
the three months ended December 31,
2020, an 85% increase. Gross margin has also increased to
29% for the year ended December 31,
2021 compared to 20% for the year ended December 31, 2020, a 45% increase. Gross margins
increased due to some temporarily reduced raw material prices in
the final quarter that helped increase margins on jobs that were
set earlier in the year with higher raw material prices. This
helped offset any reductions in gross margin when some jobs were
set under lower prices while raw material prices were rising.
Additionally, some automated equipment purchased earlier in the
2021 year helped improve efficiencies.
- The Company recorded net income of $2,459,868 for the three months ended
December 31, 2021 compared to net
income of $351,757 for the three
months ended December 31, 2020. This
substantial increase was driven by increased revenues and gross
margins. Net income for the year ended December 31, 2021 was $6,954,348 compared to net income of $228,986 for the year ended December 31, 2020, another substantial
improvement due to increased revenues, improved gross margins, and
reduced operating expenses.
- Non-IFRS measure EBITDA margin increased to 22% for the year
ended December 31, 2021 from 10% for
the year ended December 31, 2020 due
to increased gross margins and reduced operating expenses. Non-IFRS
measure EBITDA increased to $12,336,327 for the year ended December 31, 2021 from $3,722,710 for the year ended December 31, 2020 due to a significant increase
in revenues, improved gross margins, and reduced operating expenses
for the year.
SELECTED FINANCIAL
RESULTS
|
Year
Ended
|
Dec
2021
|
Dec
2020
|
Revenue from the
Business
|
$54,997,862
|
$35,734,415
|
Cost of
Sales
|
38,844,926
|
28,437,395
|
Gross
Profit
|
16,152,936
|
7,297,020
|
Gross Margin
%
|
29%
|
20%
|
Operating
Expenses
|
6,271,904
|
6,815,802
|
Operating
Income
|
9,881,032
|
481,218
|
Net Income After
Adjustments and Taxes
|
6,954,348
|
228,986
|
Adjusted
EBITDA
|
12,610,867
|
3,346,671
|
Adjusted EBITDA Margin
%
|
23%
|
9%
|
Normalized
EBITDA
|
12,942,569
|
4,045,232
|
Normalized EBITDA
Margin %
|
24%
|
11%
|
Weighted Average Number
of Shares
|
57,728,196
|
56,528,593
|
Adjusted EBITDA per
Share ($ per share)
|
0.22
|
0.06
|
Income per Share, Basic
and Fully Diluted ($ per share)
|
0.12
|
0.00
|
|
|
|
Selected Financial
Information as at:
|
|
Dec
2021
|
Dec
2020
|
Total Assets
|
$35,780,659
|
$27,092,639
|
Total Non-Current
Liabilities
|
9,187,195
|
8,889,324
|
Expansion & Optimization for
2021:
In January 2021, the Company
acquired a significant amount of automated manufacturing equipment
for $958,160 plus taxes which has
been beneficial in upgrading some locations and improving
operational efficiencies, especially during a severe labour
shortage.
Outlook for 2022:
Subsequent to the year end, the Company announced the
acquisition of Hi-Tec Industries Ltd. ("Hi-Tec") on Vancouver
Island, British Columbia. This new
location will offer some unique synergies from labour to shipping
to equipment and more with the Company's Atlas Building Systems
location which is also on Vancouver Island. For the year ending
December 31, 2021, Hi-Tec earned
unaudited revenues of just over $5-million, net income before taxes of just over
$1-million and a normalized
EBITDA of $1.25 million,
resulting in a normalized EBITDA margin of 25 per cent. The Company
will be working on integrating this location over the course of
2022.
AEP will continue to assess M&A opportunities that fit with
the Company's goals and strategies, while also working to bring the
latest automation to improve operational efficiencies and, new
products and services to better serve our customers.
The construction industry has remained strong through the
beginning of 2022, but continues to present challenges from
material availability to labour shortages to shipping logistical
issues. The Company has effectively managed these challenges
throughout 2021 and will continue to work through these challenges
and mitigate their impacts on performance as much as possible in
2022.
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". For a description of the composition of these
measures, please refer to AEP's Management's Discussion and
Analysis for the year ended December 31,
2021 under "Non-IFRS / Non-GAAP Financial Measures",
available on AEP's website at www.atlasengineeredproducts.com
or on SEDAR at www.sedar.com.
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 year ended December 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 audited financial
statements for the year ended December 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 financial statements for the year ended December 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.
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.