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Atlas Engineered Products Reports Record First Quarter with Positive Net Income in Q1 2021 Financial and Operating Results NANAIMO , BC , May 19 , 2021 / CNW / - Atlas Engineered Products ( " AEP " or the " Company " ) ( TSXV : AEP ) ( OTC Markets : APEUF ) is pleased to announce its financial and operating results for the first quarter ended March 31 , 2021. All amounts are presented in Canadian dollars . " 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 . These record first quarter results showcase those efforts and I am incredibly proud of what the Company and its employees have accomplished , " said Hadi Abassi , CEO & President , Founder . " We are optimistic and excited to see what the rest of 2021 will bring with continued hard work and perserverence . " Financial Highlights for Q1 2021 : • Revenue increased 29 % to $ 9,129,633 for the three months ended March 31 , 2021 from $ 7,097,979 for the three months ended March 31 , 2020. This increase represents the Company's best first quarter to date . • Non - IFRS measure normalized EBITDA increased substantially to $ 1,187,376 for the three months ended March 31 , 2021 from $ 102,042 for the three months ended March 31 , 2020. This turnaround due to substantial increases in revenues and gross margin , and significantly reduced operating expenses . EBITDA SUMMARY Three Months Ended Mar 2021 Three Months Ended Mar 2020 EBITDA 827,012 ( 182,533 ) Adjusted EBITDA 855,674 ( 160,974 ) Normalized EBITDA 1,187,376 102,042 • Gross margin for the three months ended March 31 , 2021 was 19 % , which was up from gross margin of 16 % for the three months ended March 31 , 2020. Gross margins increased by 3 % 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 , the manufacturing equipment bought at the end of January 2021 also improved automation at one of AEP's facilities , with the ability for improved efficiencies within our core product lines . • Operating expenses were $ 1,529,904 for the three months ended March 31 , 2021 compared to $ 1,978,758 for the three months ended March 31 , 2020 , representing an improvement of 23 % . Operating expenses have decreased sharply due to the Company's cost cutting measures and focus on profitability . • The Company recorded a net income of $ 51,208 for the three months ended March 31 , 2021 compared to a net loss of $ ( 762,961 ) for the three months ended March 31 , 2020. This substantial increase was driven by increased revenues , improved gross margins , and significantly reduced operating expenses . SELECTED FINANCIAL RESULTS Revenue from the Business Cost of Sales Three Months Ended Mar 2021 9,129,633 7,400,910 Three Months Ended Mar 2020 $ 7,097,979 5,985,305