NANAIMO, British Columbia, Jan. 25, 2018 (GLOBE NEWSWIRE) -- ATLAS ENGINEERED PRODUCTS LTD.
(the “Company” or “Atlas”) (TSX VENTURE:AEP), a leading supplier of trusses and engineered wood products,
yesterday reported its financial results for the second quarter ended November 30, 2017. The financial statements and
associated management discussion and analysis can be viewed on SEDAR at www.sedar.com. All amounts in are in Canadian dollars.
Financial Highlights for the Second Quarter 2018:
- Strong quarterly performance with revenues and operating income reaching record levels.
- Record revenues of $2,791,623 for the quarter ended November 30, 2017 (YTD: $5,530,681) compared to $2,294,954 for
the quarter ended November 30, 2016 (YTD: $4,255,344), an increase of 22%.
- Gross Margin of 29% for the quarter ended November 30, 2017 compared to 28% for the quarter ended November 30,
2016.
- Income from operations of $513,867 for the quarter ended November 30, 2017 (YTD: $1,034,373) compared to income
from operations of $537,010 for the quarter ended November 30, 2016 (YTD: $976,423).
- Adjusted EBITDA* totalled $649,087 after removing the listing expense related to the reverse takeover transaction
(23% of total revenue).
- The Company recorded a one-time non-cash item listing expense of $4,864,786, which resulted in a net loss of
$4,506,473 during the quarter ended November 30, 2017 (YTD: $4,173,691).
- As of November 30, 2017, the Company had 30,730,405 common shares issued and outstanding.
Business Highlights for the Second Quarter 2018:
- The Company completed its reverse takeover acquisition and listed as a Tier 1 industrial issuer on the TSX Venture
Exchange on November 9, 2017.
- Concurrent with the reverse takeover acquisition, the Company completed a $4.25 million private placement
financing to strengthen the Company’s balance sheet, fund business development and pursue its acquisition strategy.
- The Company has implemented its acquisition strategy by:
- announcing the proposed acquisition of Clinton Roof Truss Ltd., which includes 31,000 square feet of plant, warehouse and
office space on a 5-acre site strategically located to provide access to the growing Ontario communities west of
Mississauga.
- announcing the proposed acquisition of Selkirk Truss (2010) Limited, based in Castlegar, British Columbia, which will provide
a gateway to the Kootenay region for the Company.
Atlas President, Guy Champagne, said, “Our record quarterly revenue and EBITDA results provide a remarkably
strong base for the results we expect our recently announced acquisitions will add to our future financial results.”
Champagne continued, “We have strong cash reserves and many future acquisition targets to evaluate, and are very pleased at this
early stage to find ourselves solidly ahead of plan in all respects.”
About Atlas Engineered Products Ltd.
Atlas Engineered Products is one of British Columbia’s leading suppliers of trusses and engineered wood
products. The company was formed over 18 years ago and operates manufacturing and distribution facilities in Nanaimo to meet the
needs of residential and commercial builders. Atlas has expert design and engineering teams, a multiple-shift state-of-the-art
truss manufacturing operation, and large inventories of engineered beam and flooring components. Atlas aims to grow its base of
business across Canada by pursuing an aggressive acquisition and consolidation strategy, and will continue to bring its
construction industry partners unparalleled excellence in service, product, and support.
For further information please contact:
Atlas Engineered Products Ltd.
Phone: 1-250-754-1400
2005 Boxwood Rd.
Nanaimo, BC V9S 5X9
www.atlasengineeredproducts.com
For investor relations please contact:
Rob Gamley
Phone: 1-604-689-7422
Email: rob@contactfinancial.com
Contact Financial Corp.
810 – 609 Granville St.
Vancouver, BC V7Y 1G5
*Non-IFRS Measures
Adjusted EBITDA is a measure not recognized under IFRS. However, management of Atlas believes that most shareholders,
creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating
performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest
income, taxes, depreciation and amortization, stock based compensation, restructuring costs, impairment charges and other
non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating
comparisons.
Adjusted EBITDA does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar
measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in
accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References
to the Atlas' Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis
of Atlas posted on SEDAR (www.sedar.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. The Company
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 the Company’s control. Such factors include, among other things: risks and
uncertainties relating to the Company including those to be described in the Filing Statement filed by the Company on
www.sedar.com. 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, the Company undertakes no obligation to publicly update or revise forward-looking information.
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.
