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Atlas Engineered Products Reports Record Q2 Revenue and Profits Q2 Revenues Increase 82 % , Net Income Increased 650 % NANAIMO , BC , Aug. 23 , 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 three and six months ended June 30 , 2021. All amounts are presented in Canadian dollars . " These results are a culmination of hard work , perseverance , and focus by the entire AEP team to deal with all the recent challenges that have been out of our control and need to be handled every hour of the day , " said Hadi Abassi , CEO & President , Founder . " All of us at AEP are focusing on the day to day and looking to the future to the opportunities that arise through successful operational and financial results like these . " Financial Highlights for Q2 2021 : • Revenue increased by 82 % to $ 14,408,430 for the three months ended June 30 , 2021 compared to $ 7,900,805 for the three months ended June 30 , 2020. This increase represents the Company's best Q2 results to date . Revenue also increased 57 % to $ 23,538,063 for the six months ended June 30 , 2021 from $ 14,998,784 for the six months ended June 30 , 2020 . • Non - IFRS measure normalized EBITDA increased to $ 2,866,434 and $ 4,053,810 for the three and six months ended June 30 , 2021 from $ 1,077,046 and $ 1,179,088 for the three and six months ended June 30 , 2020. This turnaround is due to increases in revenues and gross margin , and reduced operating expenses . Additionally , normalized EBITDA of $ 4,053,810 for the six months ended June 30 , 2021 is an increase over the entire fiscal year ended December 31 , 2020 of $ 4,045,232 after only half a year . EBITDA SUMMARY Three Months Ended June 2021 June 2020 $ 2,827,271 $ 1,096,589 EBITDA Adjusted EBITDA Normalized EBITDA Six Months Ended June 2021 June 2020 $ 914,056 942,566 3,722,108 781,592 $ 3,654,283 Year Ended Dec 2020 $ 3,722,710 3,346,671 2,866,434 2,866,434 1,077,046 4,053,810 1,179,088 4,045,232 • Gross margin for the three months ended June 30 , 2021 was 26 % , up from gross margin of 24 % for the three months ended June 30 , 2020. Gross margins also increased to 23 % for the six months ended June 30 , 2021 from 20 % for the six months ended June 30 , 2020 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 . • The Company recorded a net income of $ 1,649,359 for the three months ended June 30 , 2021 compared to a net income of $ 220,601 for the three months ended June 30 , 2020. This 650 % increase was driven by increased revenues , improved gross margins , and reduced operating expenses . SELECTED FINANCIAL RESULTS Revenue from the Business Cost of Sales Gross Profit Three Months Ended June 2021 $ 14,408,430 10,614,204 3,794,226 June 2020 $ 7,900,805 6,031,627 1,869,178 Six Months Ended June 2021 $ 23,538,063 18,015,114 5,522,949 June 2020 $ 14,998,784 12,016,932 2,981,852 Gross Margin % 26 % 24 % 23 % 20 % Operating Expenses 1,603,062 Operating Income ( Loss ) 2,191,164 1,620,503 248,675 3,132,966 3,599,261 2,389,983 ( 617,409 ) Net Income ( Loss ) After Adjustments and Taxes 1,649,359 220,601 1,700,567 ( 542,360 )