Atlas Engineered Products Ltd (CVE:AEP), a supplier of engineered wood products, revealed it had a strong start to its fiscal year and that it has appointed a new chief executive as it embarks on its next phase of growth.
Results for the first quarter to end August showed record revenue of $5.08 million - up more than 85% from the previous year. Cost of sales for the three months was $3.7 million versus $1.1 million for the same period in 2017. Gross margins remained stable at 27.1%.
Revenue for the three months from Atlas's core business in Nanaimo, British Columbia was $3.19 million, representing year-on-year organic growth of 17% from the same period last year.
Revenue from the Clinton, Ontario operations for the first quarter came in at $1.6 million versus $1.1 million under operation by previous owners, representing year-over-year organic growth in the Clinton operations of 46.0%.
The balance of revenues during the three months was provided by the Truebeam and Satellite plants.
"We had a strong start to the year, with first quarter 2018 revenue at record levels and operating results that are ahead of plan," said Guy Champagne, president of Atlas.
"I'm confident we can expect adjusted EBITDA margins to continue improving over the coming quarters as we execute on our M&A and integration strategy and the costs incurred to build infrastructure are overtaken by growth in contribution margin from operations.
"Organic revenue growth continues to gain momentum in both key regions we operate in, and our acquisition strategy is proving out."
The board of Atlas also announced today that after a diligent executive recruitment process, it had appointed Dirk Maritz as its president and CEO, to start on November 5 this year.
He joins Atlas from SMS Equipment Inc, where he has served since 2012.
His most recent role with SMS Equipment in Canada demonstrates his ability to lead a highly complex and diverse multi-territory business and operate at the highest levels, Atlas added.
Champagne said of Maritz: "He is an accomplished and proven corporate leader adept at developing strategy, building teams, inspiring excellence and generating results. I look forward to the impact he will bring to the performance and value of Atlas."
Both Hadi Abassi (the current CEO) and Guy Champagne will remain directors of Atlas and continue to serve the company as advisors.
Atlas Engineered Products Ltd added 5% in Toronto to stand at $0.42 each.