Atlas Engineered Products Ltd told investors that it has carried the “strong momentum” gained in the first half of the year into the third quarter of 2021 and it has significant revenue to show for it.
The Nanaimo, British-Columbia based company reported revenue in just the two months of July and August of $11.5 million, up 18.8% from $9.68 million in the third quarter in 2020.
“Management is confident that 3Q 2021 revenues will surpass the 2Q 2021 revenues of $14.4 million, which were partly the result of higher-than-normal lumber prices,” said the company.
READ: Atlas Engineered Products sees record 2Q revenue and profits on organic growth and efficiency initiatives
In its performance update, Atlas Engineered also highlighted that current sales order bookings stand at approximately $12 million. “These orders are expected to be delivered by the end of the calendar year 2021,” said the company.
Based on the robust first half of the year, and strong current bookings, management forecast 2021 full year revenue of $50 million barring any significant weather stoppages or other unforeseen circumstances.
Atlas Engineered generated $35.7 million in revenue during the full year ended December 31, 2020.
"Strong demand and significant production volume increases have offset the drop in lumber prices and the 3Q is poised to be a record quarter for the company," Melissa MacRae, the interim CFO at Atlas Engineered said in a statement.
"While raw material price volatility and labour shortages continues to challenge the industry the solid start to the 3Q is a testament to the hard work and focus of the entire AEP team."
The company said its focus continues to be on the raw material and labour challenges experienced by the construction industry, while also driving forward with further organic growth and production efficiency initiatives.
Atlas Engineered Products is a growth company, which specializes in the manufacture and supply of roof trusses and wood products and is consolidating the industry in North America. For the uninitiated, trusses are prefabricated, triangular frameworks that support the roof of a house.
Atlas acquires profitable and well-established firms in the sector, and since listing in November 2017 with just one manufacturing plant of its own, has bought a number of other companies.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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