Net Income Increased 650 per cent
Photo Credit: Atlas Engineered Products
NANAIMO – Atlas Engineered Products announced its financial and operating results for the three and six months ended June 30, 2021. All amounts are presented in Canadian dollars.
“These results are a culmination of hard work, perseverance, and focus by the entire AEP team to deal with all the recent challenges that have been out of our control and need to be handled every hour of the day,” said Hadi Abassi, CEO & President, Founder. “All of us at AEP are focusing on the day to day and looking to the future to the opportunities that arise through successful operational and financial results like these.”
Financial Highlights for Q2 2021:
- Revenue increased by 82 per cent to $14,408,430 for the three months ended June 30, 2021 compared to $7,900,805 for the three months ended June 30, 2020. This increase represents the Company’s best Q2 results to date. Revenue also increased 57 per cent to $23,538,063 for the six months ended June 30, 2021 from $14,998,784 for the six months ended June 30, 2020.
- Non-IFRS measure normalized EBITDA increased to $2,866,434 and $4,053,810 for the three and six months ended June 30, 2021 from $1,077,046 and $1,179,088 for the three and six months ended June 30, 2020. This turnaround is due to increases in revenues and gross margin, and reduced operating expenses. Additionally, normalized EBITDA of $4,053,810 for the six months ended June 30, 2021 is an increase over the entire fiscal year ended December 31, 2020 of $4,045,232 after only half a year.
- Gross margin for the three months ended June 30, 2021 was 26 per cent, up from gross margin of 24 per cent for the three months ended June 30, 2020. Gross margins also increased to 23 per cent for the six months ended June 30, 2021 from 20 per cent for the six months ended June 30, 2020 due to the Company’s hard work navigating and controlling pricing during the rising raw material prices and shortages, while constantly focusing on improving efficiencies for new product lines and acquisitions. Additionally, the manufacturing equipment bought at the end of January 2021 also improved automation at one of AEP’s facilities, with the ability for improved efficiencies within our core product lines.
- The Company recorded a net income of $1,649,359 for the three months ended June 30, 2021 compared to a net income of $220,601 for the three months ended June 30, 2020. This 650 per cent increase was driven by increased revenues, improved gross margins, and reduced operating expenses.