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 rising material prices, supply chain shortages, material allocations, labor shortages, and shipping logistics challenges were some of the key challenges faced in 2021 and will continue into 2022. Throughout this, the AEP team persevered to help deliver record-breaking results for 2021,” said Hadi Abassi, CEO, President and AEP founder, “The AEP team continues to work hard on behalf of all stakeholders and is well prepared for another strong year in 2022.”

Fourth Quarter and Fiscal 2021 Financial Highlights:

  • 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 improved its revenues, gross margin and net profit after adjustments and taxes while maintaining constant operating expenses.

Quarterly comparison

Three months completed

Three months completed

Dec 2021

Dec 2020

Company income

$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%

Functionnary costs

1,575,822

1,574,547

Operating result

3,604,161

615 809

Net income after adjustments and taxes

2,459,868

351,757

  • Revenues increased by 26% to reach $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 turnover for the financial year ended December 31, 2021 been $54,997,862i.e. an improvement of 54% compared to a turnover of $35,734,415 for the year ended December 31, 2020.
  • Gross margin increased to 37% for the three months ended December 31, 2021 against 20% for the three months ended December 31, 2020, an increase of 85%. Gross margin also increased to 29% for the year ended December 31, 2021 compared to 20% for the year ended December 31, 2020, an increase of 45%. Gross margins increased due to the temporary decline in commodity prices in the last quarter, which contributed to higher margins on jobs established earlier in the year with higher commodity prices. This helped offset any reduction in gross margin when some jobs were priced lower as commodity prices rose. Additionally, some automated equipment purchased earlier in 2021 has helped improve efficiency.
  • The Company recorded a net profit of $2,459,868 for the three months ended December 31, 2021 compared to the net result of $351,757 for the three months ended December 31, 2020. This substantial increase is explained by the increase in revenues and gross margins. Net income for the year ended December 31, 2021 been $6,954,348 compared to the net result of $228,986 for the year ended December 31, 2020another 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 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

Company income

$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%

Functionnary costs

6,271,904

6,815,802

Operating result

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

Earnings per share, basic and fully diluted ($ per share)

0.12

0.00




Selected financial information at:


Dec 2021

Dec 2020

Total assets

$35,780,659

$27,092,639

Total non-current liabilities

9,187,195

8,889,324

Expansion and optimization for 2021:

In January 2021the Company has acquired a significant amount of automated manufacturing equipment to $958,160 plus taxes, which has been beneficial for upgrading some sites and improving operational efficiency, especially during a severe labor shortage.

Outlook for 2022:

Subsequent to year-end, the Company announced the acquisition of Hi-Tec Industries Ltd. (“Hi-Tec”) on Vancouver Island, British Columbia. This new location will offer unique synergies ranging from labor 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, 2021Hi-Tec achieved unaudited revenue of just over $5 milliona net profit before taxes of just over $1 million and normalized EBITDA of $1.25 million, resulting in a normalized EBITDA margin of 25%. The Company will work to integrate this location during 2022.

AEP will continue to evaluate M&A opportunities that align with company goals and strategies, while striving to bring the latest automations to improve operational efficiency and new products and services to better serve our customers. .

The construction industry remained strong through early 2022, but continues to present challenges ranging from material availability to labor shortages to shipping logistics issues. The Company has effectively managed these challenges throughout 2021 and will continue to address these challenges and mitigate their performance impacts as much as possible in 2022.

Non-GAAP/Non-IFRS Financial Measures

Certain financial measures in this press release do not have a standardized meaning under IFRS and are therefore considered non-IFRS or non-GAAP measures. These non-IFRS measures are used by management to facilitate the analysis and comparison of AEP’s results of operations from period to period and to assess whether AEP’s activities generate operations sufficient to fund working capital requirements and capital expenditures. Because 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. Non-IFRS measures used in this press 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 MD&A 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 growing company that acquires and operates profitable and well-established businesses in from Canada the trusses and engineered products industry. We have a well-defined and disciplined operational growth and acquisition strategy that allows us to aggressively scale and apply new technologies, giving us a unique opportunity to consolidate a fragmented industry of independent operators.

FORWARD-LOOKING INFORMATION

The information in this press 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 can be no assurance that such expectations will prove to be correct, or that such future events will occur within the timeframe stated or at all. AEP cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by a number of important factors, many of which are beyond AEP’s control. These factors include, among others: The risks and uncertainties relating to AEP, including those that will be described in the Management’s Discussion and Analysis (“MD&A”) for AEP’s fiscal year ended the 31st of December, 2021. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied by the forward-looking information. Except as required by applicable securities laws, AEP undertakes no obligation to publicly update or revise any forward-looking information.

SELECTED FINANCIAL INFORMATION

Except as otherwise noted below, the financial information provided in this press release is derived from AEP’s audited financial statements for the year ended December 31, 2021 and related notes prepared in accordance with International Financial Reporting Standards (“IFRS”) and the related IFRS Interpretations Committee (“IFRIC”) issued by the International Accounting Standards Board (“IASB”). A copy of the financial statements of the AEP for the year ended the 31st of December2021 and related MD&A are available on AEP’s website at www.atlasengineeredproducts.com or on SEDAR at www.sedar.com.

Financial information relating to AEP’s acquisitions is included in AEP’s unaudited financial statements from the date of acquisition. The financial information of the businesses acquired for periods prior to the date of acquisition has been prepared by management and has not been reviewed or audited by independent auditors.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS ITS TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE RELEVANCE OR ACCURACY OF THIS RELEASE.

SOURCE Atlas Engineered Products Ltd.

For further information: Atlas Engineered Products Ltd., Phone: 1-250-754-1400, Email: [email protected], PO Box 37036 Country Club PO, Nanaimo, BC V9T 6N4, www.atlasengineeredproducts.com; For Investor Relations, please contact: Paul Andreola, Director, Phone: 1-604-644-0072, Email: [email protected]Atlas Engineered Products Ltd., PO Box 37036 Country Club PO, Nanaimo, BC V9T 6N4, www.atlasengineeredproducts.com

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