Atlas Engineered Products Ltd. · TSXV:AEP
Atlas Engineered Products — Investor Presentation (May 2023)
26 slides from Atlas Engineered Products's investor presentation, May 2023
Slide 1: Uniquely Positioned for Growth
UNIQUELY POSITIONED FOR GROWTH May 2023 TSX.V:AEP OTC:APEUF v.0526 Rev 2.3.8
Slide 2: Forward Looking Statements
Forward Looking Statements Disclaimer This presentation is not, and nothing in it should be construed as, an offer, invitation The financial modelling is a projection, preliminary and subject to change. All forward– or recommendation in respect of securities of Atlas Engineered Products Ltd. (the lo
Slide 3: Who & What is AEP
Who & What is Mission AEP To Provide Quality Solutions and Products in the Communities We Serve, while Building Partnerships across North America We are Leading Manufacturers of Vision Engineered Wood Products across To Build a Strong, Successful Organization, while Providing a Canada Succession Opp
Slide 4: Our Services
Our Services Design, Engineering & Permitting Our specialist design team uses cutting edge design and engineering technology that ensures you get consistent, accurate, top quality product from our facility. We even help with acquiring building permits. AEP’s team of designers employs state- of-the-a
Slide 5: Our Products: Roof Systems & Roof Trusses
Our Products Roof Systems & Roof Trusses Reduce installation times, increase your span options and employ our cost effective, cutting edge design and engineering team. From the simplest residential building to the most complex commercial designs, AEP roof trusses can be a cost effective and efficien
Slide 6: Our Products: Floor Systems & Floor Trusses
Our Products FLOOR FLOOR FLOOR JOISTS TRUSSES PANELS Floor Systems & Floor Trusses A practical alternative to framing onsite, our custom-built floor panels give you greater quality control and ensure seamless integration with your wall and roof components. Quality floor systems and floor trusses fro
Slide 7: Our Products: Wall Panels
Our Products Wall Panels A cost-effective alternative to framing onsite, AEP wall panels give you greater quality control, ability to reduce on site labour requirements, and ensure a seamless integration with your floor and roof components. Our specialized design software and manufacturing capacity
Slide 8: Growth Initiatives
Organic Growth Growth Initiatives + Equipment upgrades, automation, and technological improvements + Product diversification + Sales and territory expansion + Manufacturing capacity growth + Integration efficiencies M&A Growth + Constantly assessing M&A targets for potential acquisitions + Is the ge
Slide 9: AEP Family of Companies
AEP Family of Companies Nanaimo, BC Carman, Manitoba Merrickville, Ontario A growing national footprint Since our inception as AEP in November 2017, we have grown to seven companies. Our vision is to create a national family of operating companies deeply entrenched in serving regional construction m
Slide 10: Acquisition Growth
Acquisition Growth 03/05/1 9 11/09/1 7 08/01/1 8 03/01/2 2 A E P L I S T S O N T H E T S X : V: A E P A C Q UI R ES : A E P A C Q UI R ES : A E P A C Q UI R ES : Atlas Building Satellite Building South Central Hi-Tec Industries Systems Components Building Systems FOR: $5.8 million in cash FOR: FOR:
Slide 11: Our Clients
Our Clients Single-Family Multi-family, Highrise Commercial & Lumber & Specialty Home Builders & Industrial Building Yards Sub-Division Developers Developers 11 AEP Uniquely Positioned for Growth
Slide 12: Why Do Clients Choose Us?
Why Do Clients Choose Us? We save them money We save them time + Cost effective and efficient Offsite customized manufactured roof & + National buying power floor trusses and wall panels can be installed onsite up to 5x’s faster than + Best-in class design, production and traditional stick frame con
Slide 13: Organic Growth Initiatives
Organic Growth Initiatives Product Diversification Sales Team Development + Wall panel expansion Continue to develop new talent with technical + EWP expansion experience to provide our customers with the best products for efficiency and ease + Explore new products that add synergies with our current
Slide 14: Integration Impacts
+ Integration is key after a + The table shows the potential EBITDA improvements Integration share or asset acquisition. The Company aims to with acquisitions in their various stages of the integration process Impacts implement national buying + Share Acquisition 1: Integration completed, organic po
Slide 15: M&A Growth
M&A Growth M&A is an ongoing part of our growth initiatives. We are constantly assessing potential M&A targets and will announce acquisitions as they develop. Fragmentation Opportunity + The manufactured wood products industry is characterized Atlas is providing an opportunity for many of these smal
Slide 16: M&A Growth Industry Challenges
M&A Growth Industry Challenges AEP is the well positioned to eliminate the industry’s two Labour market is the tightest since 1990 biggest pain-points. and projected to become even tighter Size of Canadian Adoption of Technology2 300K 48% Number of additional Market1 Need for innovation is crucial t
Slide 17: Industry Tailwinds
Industry Tailwinds “To restore affordability, an Canada is on track to break ground Federal government reveals plan to additional 3.5M affordable housing on about 210,000 housing units this bring in 500,000 immigrants per units are needed by 2030. ” year but about 100,000 additional year by 2025. ho
Slide 18: Annual Performance
Annual Performance 70 Millions Free Cash Flow 61.9M 60 Normalized EBITDA 55.0M Gross Profit 50 Revenue 40 35.7M 34.8M 30 19.8M 20 16.2M 15.7M 12.9M 11.0M 10 8.5M 7.3M 8.3M 4.5M 4.0M 1.6M 0.2M 0 2019 2020 2021 2022 Return on Equity 0% 2% 35% 39% 18 AEP Uniquely Positioned for Growth
Slide 19: Quarterly Financial Results
3 months 3 months Quarterly Financial Ending Mar 31, 2023 Ending Mar. 31, 2022 Results Total Revenue 9,629,368 12,434,414 Gross Profit 2,855,781 3,886,357 + Revenue declined for first quarter of 2023 compared to the first quarter of 2022 due to Gross Margin % 30% 31% decreasing material prices and h
Slide 20: Year End Financial & Operating Results
Year End Financial 12 months Ending Dec. 31, 2022 12 months Ending Dec. 31, 2021 & Operating Total Revenue 61,899,620 54,997,862 Results Gross Profit 19,846,106 16,152,936 + Annual revenue growth was 13% for the year ended December 31, 2022 compared to the Gross Margin % 32% 29% prior year end. Most
Slide 21: Key Financial Metrics
Key Financial Metrics 2017 2018 2018 2019 2020 2021 2022 2023 May Year End May Year End June - Dec Dec Year End Dec Year End Dec Year End Dec Year End Q1 YTD Debt 531,981 1,704,918 7,470,165 8,275,599 6,999,633 6,970,656 13,484,447 13,028,931 Debt on Real Estate - 555,700 985,625 1,839,976 1,771,978
Slide 22: Capitalization Structure and Key Data
Capitalization Structure and Key Data Atlas Engineered Products Ltd. TSX.V:AEP OTC:APEUF $1.10 Current Price (as of May 26, 2023) Market Capitalization $63.7M 57.9M Shares Outstanding (Basic) (as of March 31, 2023) $16.2M Current Cash (as of March 31, 2023) $13.0M Current Debt (as of March 31, 2023)
Slide 23: Executive Team
Executive Team Hadi Abassi Melissa MacRae CPA, CA Gurmit Dhaliwal CEO & President, Founder Chief Financial Officer Chief Operating Officer Mr. Abassi founded AEP in 1999 in Nanaimo, BC and they As Interim CFO, Mrs. MacRae provides overall leadership and As the VP: Operations, Ms. Dhaliwal leads the
Slide 24: Board of Directors
Board of Directors Don Hubbard, ICD.D Hadi Abassi Paul Andreola Board Chair Director, CEO & President, Founder Director Mr. Hubbard is currently President and CEO of Hubbard Mr. Abassi founded AEP in 1999 in Nanaimo, BC and they Mr. Andreola has over 25 years of business development Consulting Ltd.,
Slide 25: Atlas Engineered Products Key Points
Atlas Engineered Products Key Points Market leader Strong track record of profitability + AEP is the first national consolidator of the Canadian wood products + Strong profitability in fiscal 2021 with net income after manufacturing industry, with operations in British Columbia, Manitoba, adjustment
Slide 26: Contact us
Contact us Jake Bouma Bouma Consulting Ltd. [email protected] IR Consultant for AEP Atlas Engineered Products 2005 Boxwood Rd Nanaimo, BC V9S 5X9 [email protected] atlasengineeredproducts.com TSX.V:AEP OTC:APEUF
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