Atlas Engineered Products Reports Fourth Quarter and Year Ended 2024 Financial and Operating Results, Including YoY Revenue Increases of 6% in Q4 and 13% Annual

NANAIMO, BC, April 25, 2025 /CNW/ - Atlas Engineered Products ("AEP" or the "Company") (TSXV: AEP) (OTC Markets: APEUF) is pleased to announce its financial and operating results for the fourth quarter and year ended December 31, 2024. All amounts are presented in Canadian dollars.

Financial and Operating Highlights

• Revenue of $55.8M, representing an increase of 13% year-over-year
• Wall Panel revenue increased by 159% year-over-year
• Engineered Wood Products revenue increased by 21% year-over-year
• Adjusted EBITDA of $8.5M, despite costs of $645K associated with automation and expansion of the management and sales team
• Strong balance sheet with cash of $13M, long-term debt of $21M, and real estate net carrying value of $15M, without recent appraisals.

Hadi Abassi, President and CEO of AEP, commented: "I am proud of the effort and results that the team at AEP has accomplished. Total housing starts in Ontario and BC, two key markets for the Company, declined by double digit percentages, 2024 over 2023. Despite the housing start statistics, the Company has produced a 15% adjusted EBITDA margin and worked diligently to drive organic growth in wall panels and engineered wood products. I am encouraged by the start of 2025 to continue our organic growth efforts across Canada and strategic acquisitions that will further strengthen our geographical footprint."

Revenue for the three and twelve months ended December 31, 2024 was $15,069,615 and $55,828,723 compared to revenue of $14,197,425 and $49,413,675 for the three and twelve months ended December 31, 2023, representing a 6% and 13% increase, respectively. Revenue has increased due to acquisitive growth and organic growth – two key strategies of the Company. The year ended December 31, 2024 was the first full year that included results from LCF, a strategic acquisition that closed on August 23, 2023. LCF increased revenues for fiscal 2024 by almost 45% in addition to adding significant wall panel production to the Company and knowledge for the entire group. Organic growth in wall panels was 27% and 159% for the three and twelve months ended December 31, 2024, respectively, compared to the three months ended December 31, 2023, these results included LCF in full for both periods.

Gross profit for the three and twelve months ended December 31, 2024 was $3,591,777 and $4,084,663 compared to $3,046,448 and $4,258,301 for the three and twelve months ended December 31, 2023, representing an 18% increase and 0.1% decrease, respectively. Gross profits increased for the three months ended December 31, 2024 due to an increase in sales and an improvement in gross margin of 3% over the prior period.

Net loss after taxes was $212,128 for the year ended December 31, 2024 compared to net income after taxes of $3,149,838 for the year ended December 31, 2023. This decrease was primarily due to a more competitive market for sales that resulted in lower margins, as well as, increased costs related to future sales and robotics plans that will require significant expansion in sales teams, management, and support staff. Additionally, the Company recognized an impairment loss of $1,484,952 due to the write off of the vendor deposit as required under IFRS.

Non-IFRS measure adjusted EBITDA for the year ended December 31, 2024 was $8,499,458 compared to $9,298,310 in adjusted EBITDA for the year ended December 31, 2023. This does not include any adjustment for costs associated with future automation and expansion of the management and sales team of $645,000.

Selected Financial Results

Outlook for 2025

The Company is continuing to see strong quoting volumes in comparison to 2024. For the first three months of 2025, the Company saw a 25% increase in quoting volume and a 4% increase in orders compared to the same period last year. The Company anticipates higher quote to order conversion as winter comes to an end and the typically busier building season commences. The Company does continue to actively monitor economic policy developments related to the long-standing Canada and U.S. trade relationship and if those developments are anticipated to impact the Company in 2025. The Company reiterates that in the past four years, 1% or less of its revenues have come from sales outside of Canada.

AEP continues to work at delivering organic growth through increased wall panel manufacturing and supply of engineered wood products. This organic growth would help insulate the Company to potential effects of a recession by allowing for increased sales volume potential per order. While industry volumes are largely driven by macroeconomic and political factors beyond the Company's control, AEP will continue to leverage its scale, agility and strong balance sheet to further gain market share. 

In addition to the Company's organic growth strategies, the Company continues to assess acquisition opportunities across North America. In September, the Company announced due diligence completion for a future acquisition in Western Canada which was anticipated to close in early Spring of 2025. This closing is still anticipated for Spring of 2025. The Company is also assessing additional opportunities to enhance its geographical footprint, manufacturing capabilities, and industry knowledge. AEP has a robust pipeline of very attractive deals, now that the industry has normalized from the high lumber prices and demand during the Covid-19 pandemic. This provides an opportunity for significant value creation for shareholders over the medium to long-term.   

AEP believes that the future of the industry will be in robotic manufacturing and the new facility in Ontario is continuing with the completion of excavation and foundation work and the start of the steel framing for the facility. The building is anticipated to be completed later in 2025.

Conference Call

AEP will host a conference call to discuss the results today, April 25, 2025 at 11:00am EST (8:00am PST). The call will be hosted by Hadi Abassi, CEO & President, Founder, and Melissa MacRae, CFO. Details to join this conference call are below.

Date: Friday, April 25, 2025
Time: 11:00am EST (8:00am PST)
Webinar Link: https://atlasaep.ca/9a29aDFja
Meeting ID: 286 831 885 522 3
Passcode: ha9sM76k

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 year ended December 31, 2024 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.

Company contact details:
Hadi Abassi, CEO & President, Founder
Atlas Engineered Products Ltd.
Email: info@atlasep.ca
250-754-1400
PO Box 37036 Country Club PO
Nanaimo, BC V9T 6N4
www.atlasengineeredproducts.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. Although AEP believes that the expectations reflected in the forward looking statements are reasonable, there is no assurance that such expectations will prove to be correct, or that such future events will occur in the disclosed time frames or at all.  AEP 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 AEP's control.  Such factors include, among other things: risks and uncertainties related to the housing market, changes in interest rates and other risks and uncertainties relating to AEP, including those described in the Management's Discussion and Analysis ("MD&A") for AEP's year ended December 31, 2024.  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, AEP undertakes no obligation to publicly update or revise forward-looking information.

SELECTED FINANCIAL INFORMATION
Except as noted below, the financial information provided in this news release is derived from the AEP's audited financial statements for the year ended December 31, 2024 and the related notes thereto as prepared in accordance with International Financial Reporting Standards ("IFRS") and related IFRS Interpretations Committee ("IFRICs") as issued by the International Accounting Standards Board ("IASB").  A copy of AEP's financial statements for the year ended December 31, 2024 and the related Management's Discussion and Analysis is available on AEP's website at www.atlasengineeredproducts.com or on SEDAR at www.sedar.com.

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. 

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SOURCE Atlas Engineered Products Ltd.