NANAIMO, BC, Aug. 19, 2024 /CNW/ - Atlas Engineered Products ("AEP" or the "Company") (TSXV:AEP) (OTC Markets: APEUF) 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 First 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.
SELECTED FINANCIAL RESULTS
Three Months Ended
Six Months Ended
June 2024
June 2023
June 2024
June 2023
Revenue from the Business
$15,087,138
$11,217,336
$24,208,197
$20,846,704
Cost of Sales
10,644,246
7,819,049
18,338,152
14,592,636
Gross Profit
