Atlas Engineered Products Ltd. · TSXV:AEP
Atlas Engineered Products — Investor Presentation (April 2024)
25 slides from Atlas Engineered Products's investor presentation, April 2024
Slide 1: TSXV:AEP OTC:APEUF
TSXV:AEP OTC:APEUF
Slide 2: AEP Uniquely Positioned for Growth
2 AEP Uniquely Positioned for Growth
Slide 3: Mission: Quality Solutions and Products Across North America
To Provide Quality Solutions and Products in the Communities We Serve, while Building Partnerships across North America To Build a Strong, Successful Organization, while Providing a Succession Opportunity to Individual Owner Operators
Slide 4: Specialist design team using cutting edge design and engineering technology
Our specialist design team uses cutting edge design and engineering technology that ensures you get consistent, accurate, top quality product from our facility. We even help with acquiring building permits. AEP’s team of designers employs state- of-the-art BIM (Building-Information- Modeling) softwa
Slide 5: Roof Systems & Roof Trusses
Roof Systems & Roof Trusses Reduce installation times, increase your span options and employ our cost effective, cutting edge design and engineering team. From the simplest residential building to the most complex commercial designs, AEP roof trusses can be a cost effective and efficient part of you
Slide 6: Floor Joists, Trusses, Panels
FLOOR FLOOR FLOOR JOISTS TRUSSES PANELS A practical alternative to framing onsite, our custom-built floor panels give you greater quality control and ensure seamless integration with your wall and roof components. Quality floor systems and floor trusses from a production facility that also allows cu
Slide 7: Wall Panels
A cost-effective alternative to framing onsite, AEP wall panels give you greater quality control, ability to reduce on site labour requirements, and ensure a seamless integration with your floor and roof components. Our specialized design software and manufacturing capacity ensures that your walls a
Slide 8: Growth initiatives and acquisition criteria
+ Equipment upgrades, automation, and technological improvements + Product diversification + Sales and territory expansion + Manufacturing capacity growth + Integration efficiencies + Constantly assessing M&A targets for potential acquisitions + Is the geographical location ideal, does it fit with o
Slide 9: Grown to eight companies since 2017
Since our inception as AEP in November 2017, we have grown to eight companies. Our vision is to create a national family of operating companies deeply entrenched in serving regional construction markets. We are strengthening financial and operational performance of these acquired companies through s
Slide 10: AEP Uniquely Positioned for Growth
2017 2018 2019 2020 2022 2023 10 AEP Uniquely Positioned for Growth
Slide 11: AEP Uniquely Positioned for Growth
11 AEP Uniquely Positioned for Growth
Slide 12: Cost effective, efficient offsite manufacturing
+ Cost effective and efficient Offsite customized manufactured roof & + National buying power floor trusses and wall panels can be + Best-in class design, production installed onsite up to 5x’s faster than and automation technology traditional stick frame construction Roof, wall and floor systems an
Slide 13: Organic growth plans: wall panels, EWP, automation
+ Wall panel expansion Continue to develop new talent with + EWP expansion technical experience to provide our + Explore new products that add customers with the best products for synergies with our current products efficiency and ease and add value for our customer base Continue automating and upgr
Slide 14: Integration of acquisitions and EBITDA improvements
+ Integration is key after a + The table shows the potential EBITDA share or asset acquisition. improvements with acquisitions in their various The Company aims to stages of the integration process implement national buying + Share Acquisition 1: Integration completed, power, system upgrades, organi
Slide 15: M&A as an ongoing part of growth
M&A is an ongoing part of our growth initiatives. We are constantly assessing potential M&A targets and will announce acquisitions as they develop. + The manufactured wood products industry is AEP is providing an opportunity for many of these characterized by hundreds of small regional small operato
Slide 16: Eliminating the industry's two biggest pain-points
AEP is the well positioned to eliminate the industry’s two biggest Labour market is the tightest since 1990 and projected to become even tighter pain-points. Need for innovation is crucial to survival Number of additional Proportion of but companies are slow to adapt construction workers constructio
Slide 17: Housing affordability and supply need in Canada
“To restore affordability, an Canada is on track to break Federal government reveals plan additional 3.5M affordable ground on about 210,000 housing to bring in 500,000 immigrants housing units are needed by units this year but about 100,000 per year by 2025. 2030. ” additional housing starts are -
Slide 18: Revenue, gross profit, EBITDA and free cash flow 2019-2023
70 Free Cash Flow Millions Normalized EBITDA 61.9M 60 Gross Profit 55.0M Revenue 49.4M 50 40 35.7M 34.8M 30 19.8M 20 16.2M 15.7M 12.9M 13.6M 11.0M 9.9M 10 8.5M 7.3M 8.3M 4.5M 4.0M 3.9M 1.6M 0.2M 0 2019 2020 2021 2022 2023 Return on Equity 0% 2% 35% 39% 9% 18 AEP Uniquely Positioned for Growth
Slide 19: Fiscal 2023 results versus 2022
12 months 12 months Ending Dec. 31, 2023 Ending Dec. 31, 2022 Total Revenue 49,413,675 61,899,620 + AEP revenue for the year ended December 31, 2023 was $49,413,675 compared to revenue of $61,899,620 for the year Gross Profit 13,558,817 19,846,106 ended December 31, 2022. Revenues decreased due to t
Slide 20: Debt, equity, real estate and return on equity history
2017 2018 2018 2019 2020 2021 2022 2023 May Year End May Year End June - Dec Dec Year End Dec Year End Dec Year End Dec Year End Dec Year End Debt 531,981 1,704,918 7,470,165 8,275,599 6,999,633 6,970,656 13,484,447 33,689,544 Debt on - 555,700 985,625 1,839,976 1,771,978 1,606,598 3,794,990 6,246,5
Slide 21: Capitalization: price, market cap, shares, cash and debt
Current Price $1.48 (as of April 26, 2024) Market Capitalization $87.9M (as of April 26, 2024) Shares Outstanding (Basic) 59.4M (as of April 26, 2024) Current Cash $14.7M (as of Dec 31, 2023) Current Debt $33.7M (as of Dec 31, 2023) Insider Ownership 18.6% or 11.1M Shares (as of April 29, 2024) 21 A
Slide 22: Management team
As CFO, Mrs. MacRae provides overall leadership As COO: Ms. Dhaliwal leads the development of Mr. Abassi founded AEP in 1999 in Nanaimo, BC and direction for the Company’s financial the overarching operational strategy for all and they manufactured roof trusses for operations as she oversees account
Slide 23: Board of directors
Mr. Hubbard is currently President and CEO of Mr. Abassi founded AEP in 1999 in Nanaimo, BC Mr. Andreola has over 25 years of business Hubbard Consulting Ltd., and Owner of RCR and they manufactured roof trusses for Vancouver development and financial markets experience Mining LLP. He was also Board
Slide 24: Investment highlights
+ AEP is the first national consolidator of the Canadian wood + Strong profitability in fiscal 2021 with net income after products manufacturing industry, with operations in British adjustments and taxes of $6.9M and normalized EBITDA of $12.9M Columbia, Manitoba, Ontario, and New Brunswick + Contin
Slide 25: Investor relations contact
Jake Bouma Bouma Consulting Ltd. jake.bouma@atlasaep.ca IR Consultant for AEP Atlas Engineered Products 2005 Boxwood Rd Nanaimo, BC V9S 5X9 info@atlasaep.ca
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