Atlas Engineered Products Reports Record Third Quarter Financial and Operating Results
NANAIMO, BC, Nov. 24, 2022 /CNW/ - Atlas Engineered Products ("AEP" or the "Company") (TSX-V: AEP) (OTC Markets: APEUF) is pleased to announce its financial and operating results for the three and nine months ended September 30, 2022. All amounts are presented in Canadian dollars.
Financial Highlights for Q3 2022:
Expansion for 2022:
On February 28, 2022, the Company acquired Hi-Tec located in Lantzville, BC on Vancouver Island. Since purchasing Hi-Tec Industries on February 28, 2022, this operation contributed $1,586,956 in revenues and approximately $439,337 in EBITDA for the three months ended September 30, 2022 and $4,441,970 in revenues and approximately $1,278,833 in EBITDA for the nine months ended September 30, 2022. AEP has been working on integration of this location which has included a number of synergies with AEP's Atlas Building System location which include labour, shipping, and equipment. These results are starting to show in the results of the three and nine months ended September 30, 2022.
"We are pleased with another successful quarter of organic growth, as well as, the contribution from our latest acquisition, Hi-Tec Industries Ltd," said Hadi Abassi, CEO & President, Founder. "In addition to the ongoing operational improvements and growth of our legacy facilities, we have seen an immediate improvement in both revenues and margins from Hi-Tec. Our order book for the remainder of 2022 continues to be strong and we anticipate another year of record results for the Company."
Normal Course Issuer Bid ("NCIB") Update:
Subsequent to the three and nine months ended September 30, 2022, the Company purchased and cancelled an additional 1,162,286 shares under the NCIB that ended on November 3, 2022. From the commencement of this NCIB on November 3, 2021 to the end on November 3, 2022, the Company purchased and cancelled a total of 2,886,286 common shares at a weighted average price of $0.553 per share.
AEP has received approval for the TSX Venture Exchange to renew its NCIB to be transacted through the facilities of the TSXV. The renewed NCIB will commence on December 1, 2022 and end on December 1, 2023 or such earlier date as AEP may complete its purchases as set forth in its notice filed with the TSXV. Under the renewed NCIB, AEP may purchase up to 4,732,015 common shares of the Company, representing up to 10% of the Company's Public Float as of November 2, 2022.
AEP's board of directors continues to believe that the current market price for the Company's common shares does not currently reflect the underlying value of the Company. As a result, depending on future price movements and other factors, AEP's board of directors believes that the purchase of the shares is an appropriate use of AEP's funds and in the best interests of AEP's shareholders.
Non-GAAP / Non-IFRS Financial Measures
Certain financial measures in this news release do not have any standardized meaning under IFRS and, therefore are considered non-IFRS or non-GAAP measures. These non-IFRS measures are used by management to facilitate the analysis and comparison of period-to-period operating results for AEP and to assess whether AEP's operations are generating sufficient operating cash flow to fund working capital needs and to fund capital expenditures. As 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. The non-IFRS measures used in this news 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 Management's Discussion and Analysis for the period ended September 30, 2022 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 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.
FORWARD LOOKING INFORMATION
SELECTED FINANCIAL INFORMATION
Financial information for AEP's acquisitions are included in AEP's unaudited financial statements from the date of acquisition. Financial information for acquired businesses for periods prior to the date of acquisition were prepared by management and have not been reviewed or audited by independent 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 Products Ltd.
Company Codes: OTC-PINK:APEUF, TorontoVE:AEP, OTC-BB:APEUF
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