Atlas Engineered Products Ltd (CVE:AEP) (OTCMTS:APEUF) announced it had recorded a net profit for its first quarter of 2021 on a double-digit revenue increase.
For the three months ended March 31, the company recorded net income of C$51,208, compared to a net loss of C$762,961 in the year-ago quarter.
Revenue increased 29% year-over-year to C$9,129,633 for the company's best 1Q to date.
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In addition, Atlas said that non-IFRS measure normalized EBITDA increased substantially to C$1,187,376, from C$102,042 in the 1Q of 2020.
"The entire team at AEP has been working incredibly hard to navigate the challenges caused by the COVID-19 pandemic; from keeping employees safe to navigating material pricing increases and supply shortages,” said CEO Hadi Abassi in a statement.
“These record first-quarter results showcase those efforts and I am incredibly proud of what the company and its employees have accomplished. We are optimistic and excited to see what the rest of 2021 will bring with continued hard work and perseverance."
Also driving 1Q results were improved gross margins and significantly reduced operating expenses, the company said.
Gross margins came in at 19%, versus 16% for the year-ago quarter. Gross margins increased 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, Atlas said the manufacturing equipment bought at the end of January 2021 also improved automation at one of its facilities, with the ability for improved efficiencies within its core product lines.
Operating expenses were C$1,529,904, compared to C$1,978,758 in the year-ago period, representing an improvement of 23%. Operating expenses decreased sharply due to the company's cost-cutting measures and focus on profitability.
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