VANCOUVER, British Columbia, April 30, 2018 (GLOBE NEWSWIRE) -- ATLAS ENGINEERED PRODUCTS LTD.
(the “Company”) (TSX-V:AEP), a leading supplier of trusses and engineered wood products, released
its financial results for the third quarter ended February 28, 2018.
Accretive Acquisitions
The Company’s Clinton and Truebeam acquisitions were completed during the final week of the third quarter. The
key benefits of these acquisitions are:
- Immediately accretive revenues and EBITDA for each of Clinton and Truebeam which will be reflected in the fourth fiscal
quarter 2018.
- Servicing growing Southwestern Ontario communities of Mississauga, Hamilton and London, as well as Northern Alberta
communities of Fort McMurray and Peace River.
- Operational in three major provinces in Canada, which will allow for future expansion in these key provinces on an
accelerated basis.
Financial highlights for the Third Quarter 2018:
The third quarter financial results include the impact of costs associated with adding to the Company’s
management team and infrastructure to support growth, and expenses related to the Company’s accretive acquisition and expansion
program.
- Revenue growth to $2,079,046 for the 2018 quarter as compared to revenue of $1,757,921 for the 2017 quarter, which represents
a 18% increase for the quarter.
- Year over year revenue growth for the nine months ended February 28, 2018 was 26%.
- Q3 Gross Margins of 24% for the Quarter, and 27% year-to-date.
- Adjusted EBITDA* of $83,830 for the quarter is lower as compared to $222,722 for the three months ended February 28, 2017 due
to increased costs to support the Company’s expansion. In future quarters these will be offset by the results of the Company’s
accretive acquisitions.
- Net loss of $295,757 for the third quarter 2018 compared to net income of $140,215. Increase in net loss mostly a
result of share based payment expense of $285,412 and acquisition costs relating to Clinton and Truebeam.
Guy Champagne, President of Atlas, commented, “We are very pleased that our Atlas Nanaimo operation has been
able to support the significant investments we have made in launching our growth strategy. This is a testament to how strong our
core business is and provides a very stable foundation for rapid growth. Next quarter’s will affirm the positive financial
impacts of our Clinton and Truebeam operations.”
Stock Option Grants
The Company has also granted a total of 470,000 stock options to employees and officers of the Company.
The stock options are exercisable at $0.65 per share, in respect of 232,500, and $0.55 per share, in respect of 237,500
options. All options are exercisable for a period of five years from the date of grant.
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 British Columbia,
Ontario and Alberta to meet the needs of residential and commercial builders. Atlas has expert design and engineering teams,
multiple-shift state-of-the-art truss manufacturing operations, and large inventories of engineered beam and flooring components.
The Company aims to grow its base of business across Canada by pursuing an aggressive acquisition and consolidation strategy. The
Company will bring its construction industry partners across Canada unparalleled excellence in service, product, and support.
For further information please contact:
Atlas Engineered Products Ltd.
Guy Champagne, President
Phone: 1-250-754-1400
Email: info@atlasep.ca
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 the Company 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 Company’s management discussion and analysis for the
quarter ended February 28, 2018 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.
