Atlas Engineered Products Reports Record Third Quarter Financial and Operating Results

NANAIMO, BC, Nov. 24, 2022 /CNW/ – Atlas Engineered Merchandise (“AEP” or the “Firm”) (TSX-V: AEP) (OTC Markets: APEUF) is happy to announce its monetary and working outcomes for the three and 9 months ended September 30, 2022. All quantities are introduced in Canadian {dollars}.

Monetary Highlights for Q3 2022:

• Income elevated to $17,638,289 for the three months ended September 30, 2022 from $17,563,359 for the three months ended September 30, 2021. Moreover, income elevated to $46,909,032 for the 9 months ended September 30, 2022 from $41,101,422 for the 9 months ended September 30, 2021. This enhance now represents the Firm’s finest third quarter up to now.

• Non-IFRS EBITDA for the three and 9 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 9 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 9 months ended September 30, 2022 elevated in comparison with the three and 9 months ended September 30, 2021 because of elevated web revenue for the interval ensuing from elevated gross sales and improved gross margins.

• Gross margin for the three and 9 months ended September 30, 2022 was 35% and 32%, which was up from a gross margin of 31% and 27% for the three and 9 months ended September 30, 2021. Gross margins elevated because of pricing assessments and updates being accomplished in any respect places because of the fluctuating prices of uncooked supplies and labour. The Firm has additionally centered on enhancing efficiencies on new product strains and acquisitions, together with synergies between the brand new acquisition of Hello-Tec Industries Ltd. (“Hello-Tec”) and Atlas Constructing Techniques Ltd.

• Internet revenue after taxes was $3,131,612 and $6,739,031 for the three and 9 months ended September 30, 2022 in comparison with web revenue after taxes of $2,793,913 and $4,494,480 for the three and 9 months ended September 30, 2021. This enhance was primarily because of the enhance in revenues, enhancements in gross margin, and the brand new acquisition of Hello-Tec.

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Enlargement for 2022:

On February 28, 2022, the Firm acquired Hello-Tec situated in Lantzville, BC on Vancouver Island. Since buying Hello-Tec Industries on February 28, 2022, this operation contributed $1,586,956 in revenues and roughly $439,337 in EBITDA for the three months ended September 30, 2022 and $4,441,970 in revenues and roughly $1,278,833 in EBITDA for the 9 months ended September 30, 2022. AEP has been engaged on integration of this location which has included a lot of synergies with AEP’s Atlas Constructing System location which embrace labour, delivery, and tools. These outcomes are beginning to present within the outcomes of the three and 9 months ended September 30, 2022.

“We’re happy with one other profitable quarter of natural progress, in addition to, the contribution from our newest acquisition, Hello-Tec Industries Ltd,” mentioned Hadi Abassi, CEO & President, Founder. “Along with the continuing operational enhancements and progress of our legacy amenities, now we have seen a right away enchancment in each revenues and margins from Hello-Tec. Our order ebook for the rest of 2022 continues to be sturdy and we anticipate one other yr of report outcomes for the Firm.”

Regular Course Issuer Bid (“NCIB”) Replace:

Subsequent to the three and 9 months ended September 30, 2022, the Firm bought and cancelled an extra 1,162,286 shares beneath the NCIB that ended on November 3, 2022. From the graduation of this NCIB on November 3, 2021 to the top on November 3, 2022, the Firm bought and cancelled a complete of two,886,286 frequent shares at a weighted common value of $0.553 per share.

AEP has obtained approval for the TSX Enterprise Alternate to resume its NCIB to be transacted by means of the amenities of the TSXV. The renewed NCIB will start on December 1, 2022 and finish on December 1, 2023 or such earlier date as AEP might full its purchases as set forth in its discover filed with the TSXV. Beneath the renewed NCIB, AEP might buy as much as 4,732,015 frequent shares of the Firm, representing as much as 10% of the Firm’s Public Float as of November 2, 2022.

AEP’s board of administrators continues to consider that the present market value for the Firm’s frequent shares doesn’t presently mirror the underlying worth of the Firm. Consequently, relying on future value actions and different elements, AEP’s board of administrators believes that the acquisition of the shares is an acceptable use of AEP’s funds and in the most effective pursuits of AEP’s shareholders.

Non-GAAP / Non-IFRS Monetary Measures

Sure monetary measures on this information launch should not have any standardized that means beneath IFRS and, subsequently are thought-about non-IFRS or non-GAAP measures. These non-IFRS measures are utilized by administration to facilitate the evaluation and comparability of period-to-period working outcomes for AEP and to evaluate whether or not AEP’s operations are producing enough working money circulation to fund working capital wants and to fund capital expenditures. As these non-IFRS measures should not have any standardized that means beneath IFRS, these measures will not be akin to comparable measures introduced by different issuers. The non-IFRS measures used on this information launch might embrace “EBITDA”, “EBITDA margin”, “adjusted EBITDA”, “adjusted EBITDA margin”, “normalized EBITDA” and “normalized EBITDA margin”. For an outline of the composition of those measures, please seek advice from AEP’s Administration’s Dialogue and Evaluation for the interval ended September 30, 2022 beneath “Non-IFRS / Non-GAAP Monetary Measures”, accessible on AEP’s web site at www.atlasengineeredproducts.com or on SEDAR at www.sedar.com.

About Atlas Engineered Merchandise Ltd.

AEP is a progress firm that’s buying and working worthwhile, well-established operations in Canada’s truss and engineered merchandise business. We’ve a well-defined and disciplined acquisition and working progress technique enabling us to scale aggressively and apply new applied sciences, giving us a singular alternative to consolidate a fragmented business of unbiased operators.

www.atlasengineeredproducts.com

FORWARD LOOKING INFORMATION
Info set forth on this information launch incorporates forward-looking statements. These statements mirror administration’s present estimates, beliefs, intentions and expectations; they aren’t ensures of future efficiency. Though AEP believes that the expectations mirrored within the ahead trying statements are cheap, there is no such thing as a assurance that such expectations will show to be appropriate, or that such future occasions will happen within the disclosed time frames or in any respect.  AEP cautions that every one ahead trying statements are inherently unsure and that precise efficiency could also be affected by a lot of materials elements, lots of that are past AEP’s management. Such elements embrace, amongst different issues: Dangers and uncertainties referring to AEP, together with these to be described within the Administration’s Dialogue and Evaluation (“MD&A”) for AEP’s three and 9 months ended September 30, 2022.  Accordingly, precise and future occasions, situations and outcomes might differ materially from the estimates, beliefs, intentions and expectations expressed or implied within the forward-looking info. Besides as required beneath relevant securities laws, AEP undertakes no obligation to publicly replace or revise forward-looking info.

SELECTED FINANCIAL INFORMATION
Besides as famous beneath, the monetary info supplied on this information launch is derived from the AEP’s audited monetary statements for the three and 9 months ended September 30, 2022 and the associated notes thereto as ready in accordance with Worldwide Monetary Reporting Requirements (“IFRS”) and associated IFRS Interpretations Committee (“IFRICs”) as issued by the Worldwide Accounting Requirements Board (“IASB”). A duplicate of AEP’s monetary statements for the three and 9 months ended September 30, 2022  and the associated Administration’s Dialogue and Evaluation is obtainable on AEP’s web site at www.atlasengineeredproducts.com or on SEDAR at www.sedar.com.

Monetary info for AEP’s acquisitions are included in AEP’s unaudited monetary statements from the date of acquisition. Monetary info for acquired companies for durations previous to the date of acquisition had been ready by administration and haven’t been reviewed or audited by unbiased 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 Merchandise Ltd.

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