Atlas Engineered Products sees increasing revenues and posts a profit in its 3Q

Atlas Engineered Products Ltd. (CVE:AEP) (OTCMKTS:APEUF) said it saw increasing revenues and posted a profit in its third quarter.  

The company reported revenue of C$9,677,692 for the three months ended September 30, 2020, compared to C$7,900,805 for the three months ended June 30, 2020.

Atlas said its profitability has continued to improve during 2020. It posted an operating profit of C$482,818 in 3Q, compared to a profit of C$248,675 in 2Q and a loss of C$866,084 in the 1Q.

READ: Atlas Engineered Products on way to becoming leading supplier of pre-manufactured wall panels on Vancouver Island

In addition, the company said it earned net income of C$419,589 in 3Q and C$220,601 in Q2, versus a loss of C$762,961 in 1Q. 

Atlas said this expansion through 3Q represents a quarterly growth in revenue of 22%. The quarter-over-quarter increase in total revenues was driven by reslient markets in British Columbia and Manitoba, paired with an Ontario market rebound after coronavirus (COVID-19) related permitting restrictions were lifted at the end of May.

The company said it anticipates that the robust sales volumes momentum will continue into 4Q, following a very active third quarter that saw strong quoting activity, increased housing starts, increased permitting, and low-interest rates. 

“Q3 2020 was a solid quarter for AEP as we delivered another increase in revenues and profitability, over both of the previous quarters in 2020, despite the ongoing global pandemic and skyrocketing lumber prices,” said CEO Dirk Maritz in a statement.

“This was achieved through targeted sales activities to ensure that the sales pipelines at all locations continue to grow, and a continuation of our comprehensive cost reduction and cash preservation strategies implemented at the end Q1 2020.”

Maritz added: “The AEP team has continued to deliver strong revenues and operating profits in Q3 2020, while remaining diligent in maintaining the safety and well being of all our staff during this global pandemic. I am proud of the team we have built at AEP. We all have a focus to expand product lines, increase revenues, and ensure that all locations contribute to a healthy sales pipeline and continued growth.”

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Story by ProactiveInvestors