Atlas Engineered Products (“AEP” or the “Company”) is pleased to announce its financial and operating results for the three and six months ended June 30, 2024. All amounts are presented in Canadian dollars. Highlights for the second quarter, 2024 include:
- Revenue of $15.1M, representing an increase of 34% year-over-year
- Adjusted EBITDA of $3.1M, representing an increase of 50% year-over-year
- Closed a bought deal private placement on June 26, 2024 for $14.6M and ended the quarter with a strong cash position of $20.0M
- Strategic investments in robotics automation have commenced with capital allocated to locations in Ontario, New Brunswick, and British Columbia
Hadi Abassi, President and CEO of AEP, commented: “We expect lower interest rates and structural housing shortages in Canada to create a vibrant environment for activity in the future, however, there is transition period that continues to be challenging for the industry. Notwithstanding that, the Company generated healthy margins in the quarter and is managing expenses to produce strong bottom line results. We are very pleased with the contribution from LCF and see a compelling acquisition environment to further build out the platform that we have established in Canada. We continue to strategically balance the need for sales with the gross margin that is attainable in a more competitive market, all while preparing for an exciting future with robotics automation.”
Financial Highlights for Second Quarter 2024:
- Revenue for the three and six months ended June 30, 2024 was $15,087,138 and $24,208,197 compared to revenue of $11,217,336 and $20,846,704 for the three and six months ended June 30, 2023, representing a 34% and 16% increase.
- Gross profit for the three months ended June 30, 2024 was $4,442,892 compared to $3,398,287 for the three months ended June 30, 2023.
- Net income after taxes was $705,578 for the three months ended June 30, 2024 compared to net income after taxes of $786,236 for the three months ended June 30, 2023. This decrease was primarily due to the amortization related to the intangible assets of the LCF acquisition. The valuation of the intangible assets was recently finalized and amortization was recorded from the date of acquisition up to June 30, 2024. $584,206 was recorded for amortization related to the intangible assets for the three months ended June 30, 2024, moving forward amortization would be $170,225 each quarter for these intangible assets.
- Non-IFRS measure adjusted EBITDA for the three months ended June 30, 2024 was $3,086,768 compared to $2,051,169 in adjusted EBITDA for the three months ended June 30, 2023.
Robotic Update
On June 26, 2024, the Company closed a bought deal private placement and concurrent brokered private placement (the “Financing Raise”) for aggregate gross proceeds of $14,562,855. The Company has already allocated funds from the Financing Raise towards the robotics expansion at locations in Ontario, New Brunswick, and British Columbia. The first deposits have been place and the Company is actively preparing for the arrival of the robots in 2025 & 2026. All areas from the sales team to the design team to the production teams are being bolstered throughout 2024 and in to 2025 to help prepare for the increased capacity at each of these locations. The Company intends to release more metrics and targets around the implementation of robotics during the third quarter of 2024, to highglight the benefits from operating and capital effiencies, increased capacity and geographic expansion.
For full results click here.
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.
Contact:
Jake Bouma – Representative for AEP – (604) 317-3936 – jake.bouma@atlasaep.ca
Source: Atlas Engineered Products Ltd.