NANAIMO,
BC, Nov. 24, 2022 /CNW/ - Atlas Engineered
Products ("AEP" or the "Company") (TSX-V: AEP) (OTC Markets: APEUF)
is pleased to announce its financial and operating results for the
three and nine months ended September 30,
2022. All amounts are presented in Canadian dollars.
Financial Highlights for Q3 2022:
- Revenue increased to $17,638,289
for the three months ended September 30,
2022 from $17,563,359 for the
three months ended September 30,
2021. Additionally, revenue increased to $46,909,032 for the nine months ended
September 30, 2022 from $41,101,422 for the nine months ended
September 30, 2021. This increase now
represents the Company's best third quarter to date.
- Non-IFRS EBITDA for the three and nine months ended
September 30, 2022 was $5,098,287 and $11,561,318, with an EBITDA margin of 29% and
25%. EBITDA for the three and nine months ended September 30, 2021 was $4,555,705 and $8,209,988, with an EBITDA margin of 26% and 20%.
EBITDA and EBITDA margin for the three and nine months ended
September 30, 2022 increased compared
to the three and nine months ended September
30, 2021 due to increased net income for the period
resulting from increased sales and improved gross margins.
EBITDA
SUMMARY
|
Three Months
Ended
|
Nine Months
Ended
|
Sept
2022
|
Sept
2021
|
Sept
2022
|
Sept
2021
|
EBITDA
|
$5,098,287
|
$4,555,705
|
$11,561,318
|
$8,209,988
|
Adjusted
EBITDA
|
5,155,651
|
4,580,899
|
11,778,911
|
8,303,007
|
Normalized
EBITDA
|
5,155,651
|
4,580,899
|
11,778,911
|
8,634,709
|
- Gross margin for the three and nine months ended September 30, 2022 was 35% and 32%, which was up
from a gross margin of 31% and 27% for the three and nine months
ended September 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.
("Hi-Tec") and Atlas Building Systems Ltd.
- Net income after taxes was $3,131,612 and $6,739,031 for the three and nine months ended
September 30, 2022 compared to net
income after taxes of $2,793,913 and
$4,494,480 for the three and nine
months ended September 30, 2021. This
increase was primarily due to the increase in revenues,
improvements in gross margin, and the new acquisition of
Hi-Tec.
SELECTED FINANCIAL
RESULTS
|
Three Months
Ended
|
Nine Months
Ended
|
Sept
2022
|
Sept
2021
|
Sept
2022
|
Sept
2021
|
Revenue from the
Business
|
$17,638,289
|
$17,563,359
|
$46,909,032
|
$41,101,422
|
Cost of
Sales
|
11,473,688
|
12,113,355
|
32,114,233
|
30,128,469
|
Gross
Profit
|
6,164,601
|
5,450,004
|
14,794,799
|
10,972,953
|
Gross Margin
%
|
35 %
|
31 %
|
32 %
|
27 %
|
Operating
Expenses
|
1,773,293
|
1,563,116
|
5,249,349
|
4,696,082
|
Operating
Profit
|
4,391,308
|
3,886,888
|
9,545,450
|
6,276,871
|
Net Income After
Adjustments and Taxes
|
3,131,612
|
2,793,913
|
6,739,031
|
4,494,480
|
Adjusted
EBITDA
|
5,155,651
|
4,580,899
|
11,778,911
|
8,303,007
|
Adjusted EBITDA Margin
%
|
29 %
|
26 %
|
25 %
|
20 %
|
Normalized
EBITDA
|
5,155,651
|
4,580,899
|
11,778,911
|
8,634,709
|
Normalized EBITDA
Margin %
|
29 %
|
26 %
|
25 %
|
21 %
|
Weighted Average Number
of Shares, Basic
|
59,215,310
|
57,725,730
|
59,016,124
|
57,725,730
|
Adjusted EBITDA per
Share ($ per share)
|
0.09
|
0.08
|
0.20
|
0.14
|
Income per Share, Basic
($ per share)
|
0.05
|
0.05
|
0.11
|
0.08
|
Income per Share, Fully
Diluted ($ per share)
|
0.05
|
0.04
|
0.11
|
0.06
|
|
|
|
|
|
Selected Financial
Information as at:
|
|
|
|
Sept
2022
|
Dec
2021
|
Total Assets
|
|
|
$51,821,429
|
$35,780,659
|
Total Non-Current
Liabilities
|
|
|
15,111,179
|
9,187,195
|
Expansion for 2022:
On February 28, 2022, the Company
acquired Hi-Tec located in Lantzville,
BC on Vancouver Island. Since purchasing Hi-Tec Industries
on February 28, 2022, this operation
contributed $1,586,956 in revenues
and approximately $439,337 in EBITDA
for the three months ended September 30,
2022 and $4,441,970 in
revenues and approximately $1,278,833
in EBITDA for the nine months ended September 30, 2022. AEP has been working on
integration of this location which has included a number of
synergies with AEP'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 September 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, CEO & President,
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 September 30, 2022, the Company purchased and
cancelled an additional 1,162,286 shares under the NCIB that ended
on November 3, 2022. From the
commencement of this NCIB on November 3,
2021 to the end on November 3,
2022, the Company purchased and cancelled a total of
2,886,286 common shares at a weighted average price of $0.553 per share.
AEP has received approval for the TSX Venture Exchange to renew
its NCIB to be transacted through the facilities of the TSXV. The
renewed NCIB will commence on December 1,
2022 and end on December 1,
2023 or such earlier date as AEP may complete its purchases
as set forth in its notice filed with the TSXV. Under the renewed
NCIB, AEP may purchase up to 4,732,015 common shares of the
Company, representing up to 10% of the Company's Public Float as of
November 2, 2022.
AEP'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, AEP's board of
directors believes that the purchase of the shares is an
appropriate use of AEP's funds and in the best interests of AEP's
shareholders.
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 period ended September 30,
2022 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.
www.atlasengineeredproducts.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. 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 and nine months ended September
30, 2022. 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 three and nine months ended September
30, 2022 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 three and nine months
ended September 30, 2022 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.