Atlas Engineered Products ("AEP") announces its financial and operating results for the 3Q ended September 30, 2020. Revenue was $9.7 million for the three months ended September 30, 2020 as compared to $7.9 million for the three months ended June 30, 2020. This expansion through 3Q 2020 represents a quarterly growth in revenue of 22%.
Gross margins decreased to 22% for the three months ended September 30, 2020, from 24% for the three months ended June 30, 2020, but still showcases a 6% increase from the three months ended March 31, 2020. This 2 percentage point decline in 3Q 2020 was due to a number of competing factors including: a slightly depressed margin in some of our commercial and subdivision projects due to orders taken prior to lumber price increases; the successful launch of the new pre-manufactured wall line in Nanaimo which required additional production and design employee training and sales pipeline development; and startup costs, including sales pipeline development, associated with the new Novum Building Components acquisition.
The company had an operating profit of $482,818 in 3Q 2020, $248,675 in 2Q 2020, compared to an operating loss of ($866,084) in 1Q 2020. In addition, the company earned net income of $419,589 in 3Q 2020, $220,601 in 2Q 2020, compared to a net loss of ($762,961) in 1Q 2020.
"Q3 2020 was a solid quarter for AEP as we delivered another increase in revenues and profitability, over both of the previous quarters in 2020, despite the ongoing global pandemic and skyrocketing lumber prices. This was achieved through targeted sales activities to ensure that the sales pipelines at all locations continue to grow, and a continuation of our comprehensive cost reduction and cash preservation strategies implemented at the end Q1 2020," said AEP CEO & President Dirk Maritz.
AEP is a growth company that is acquiring and operating profitable, well-established operations in Canada's truss and engineered products industry.
