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EPIC: AEP
Market: TSX-V
52-week High/Low: C$0.75 / C$0.05
Sector: Engineering
Market Cap: C$8.08M
Atlas Engineered Products

Atlas Engineered Products

Atlas Engineered Products is one of British Columbia’s leading suppliers of trusses and engineered wood products. The company was formed over 18 years ago and operates manufacturing and distribution facilities in Nanaimo to meet the needs of residential and commercial builders. Atlas has expert design and engineering teams, a multiple-shift state-of-the-art truss manufacturing operation,...

Atlas Engineered Products

www.atlastruss.com

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Big picture - Why invest in Atlas Engineered Products


Atlas Engineered Products Snapshot

INDUSTRY CONSOLIDATION
An opportunity exists in the truss manufacturing industry for the consolidation of small regional operations due primarily to the age and retirement needs of owner operators lacking an exit strategy.
Atlas Engineered Products has been used as the target of a reverse takeover (RTO) to serve as the foundational investment in pursuit of an aggressive roll-up strategy.


INDUSTRY CHARACTERISTICS
Western Canada Truss Industry
Fragmented and characterized by small regional operations (sales in the $3-8 million range) headed by owner-managers nearing retirement.


Succession Planning
Succession and exit concerns stem from absence of individuals within company ranks with entrepreneurial instincts, management capabilities or capital to acquire businesses from current owners without vendor financing and risk.


The Opportunity
Atlas has the opportunity to acquire and assimilate truss companies operating in other markets for prices offering arbitrage as they transition from private ownership to a public structure.


Geographic Clustering
On Vancouver Island there are 5 truss manufacturing companies (2 in South Island area, 2 in the Central Island, 1 in the North Island).


Customer Loyalty
Each has a very loyal customer base among residential and commercial builders within the geographic areas they serve.


Market Strength
The Vancouver Island market is currently in the $30-35 million range. Due to the net in-migration of retirees to Vancouver Island, the construction industry is presently very strong.


Future Potential
British Columbia’s total market is in the $250-300 million range.


ACQUISITION STRATEGY
Sustain a high return on capital
- Maintain a strong share value as a currency for acquisitions
- Allow dividend distributions from surplus cash
Drive the value of new acquisitions
- Optimize operational efficiencies
- Increase sales through marketing and sales development and new products
- Focus on improved margins
Board’s 3 year goal is to build a company with $50 million in annual sales

Hadi Abassi, CEO and Director


Mr. Abassi is a highly successful entrepreneur and community leader. He is the founder and president and CEO of Atlas Group of companies. Mr. Abassi established Atlas Engineered Products in 1999 to manufacture roof trusses at its Nanaimo manufacturing facility to services customers on Vancouver Island, and established Coastal Windows in 2003 as a dealer and then subsequently a manufacture of customer doors and windows. He was former general sales manager of Starline Windows, and prior to that, the general manager of Columbia Taping Tools. Mr. Abassi holds a mechanical engineering degree from Swindon Technical College. As a community leader, Mr. Abassi has been nominated citizen of the year on three occasions, was nominated by the government of Canada to carry the Olympic torch and established the Vancouver Island Raiders football club in 2005. Since 2005, Vancouver Island Raiders has become a force within Canadian junior football.

Guy Champagne, President and Director


Mr. Champagne is an accomplished businessman and entrepreneur. He has been a director of Immunoprecise Antibodies Ltd. since December, 2016, and a director of Seahawk Ventures since August, 2015. From January, 2014, Mr. Champagne was actively involved in the management and operation of a group of privately owned companies, including: President of Aequitor Inc., former vice-president of Real Estate Webmasters Inc. and adviser for Hardy Buoys Smoked Fish Inc.; Managing partner and senior partner of BDC Consulting between 2006 and 2013, retiring in December, 2013; From 1974 to 2005, served as founder, executive, investor and consultant with numerous privately held technology companies until their sale and disposition in 2005 to pursue retirement; Maintained designation as a certified management consultant (Canadian Association of Certified Management Consultants) until 2016; During the late 1970s and 1980s and coincident with early success in business, pursued education including the Canadian Securities Course, the Canadian Institute of Chartered Business Valuators training program for the Chartered Business Valuator designation, and enrolled in the Institute of Corporate Directors program and honours mathematics program at McGill University.

Carmen Amezquita Hernandez, Chief Financial Officer


Ms. Hernandez is a chartered professional accountant and has over five years of experience related to the mining industry. Ms. Amezquita was a senior associate at Pricewaterhouse Coopers from September, 2007, to July, 2011. Since July, 2011, Ms. Amezquita has served as the CFO of Archer and Silver One Resources Inc., and has served as an accountant for and acted as controller for a number of junior resource issuers.

Greg Smith, Director


Mr. Smith is a seasoned capital markets veteran who held senior positions in investment banking before recently transitioning to private equity with the acquisition of one of the largest HVAC (heating, ventilation and air conditioning) companies in Western Canada. Mr. Smith also held the position of portfolio manager for Phillips, Hagar & North and executive director, Canadian Securitization Group, CIBC World Markets, in Toronto for close to 10 years. Mr. Smith currently serves as president and director of Broadway Refrigeration & Air Conditioning Co. Ltd. and Omega Mechanical Ltd., which collectively have over 150 employees. Mr. Smith earned an MBA from Dalhousie University and is a chartered financial analyst, and has served in advisory positions to multiple private and public ventures. He is currently serving as chairman and director of Lite Access Technologies and a director of Immunoprecise Antibodies.

Don Hubbard, Director


Mr. Hubbard is an accomplished businessman and community leader. Mr. Hubbard is currently president and CEO of Hubbard Consulting Ltd., and owner, partner and manager of RCR Mining LLP. Mr. Hubbard is also currently board chair of the Vancouver Island Health Authority. Mr. Hubbard is formerly the general manager of Lafarge North West Division and Island operations, which merged with Hub City Paving in which Mr. Hubbard held many senior operation positions with Hub City Paving. As a community leaver, Mr. Hubbard is a retired Rotarian, Ocean Side Club; Paul Harris fellow; founding member of Nanaimo Yes Committee; board director, Ducks Unlimited Canada National; founding member (treasurer) of the Vancouver Island Economic Alliance; board director of VIU Foundation; and board director of Malaspina International High School. He obtained his ICD designation from the Institute of Corporate Directors on May 6, 2012.

Dawn Wattie, Corporate Secretary


Ms. Wattie is a barrister and solicitor specializing in assisting companies involved in the advanced technology and the commercialization of intellectual property. Ms. Wattie holds a BA from University of Victoria and LLB from University of Windsor, and was called to the British Columbia bar in 1989. Ms. Wattie has been in private practice since 1997. Ms. Wattie is currently the corporate secretary to Immunoprecise Antibodies and has acted as corporate secretary for CB Gold Inc. from 2010 until 2015.

Atlas Engineered Products
2005 Boxwood Road, Nanaimo, BC V9S 5X9
Phone: 250.754.1400

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