Page 1

Atlas Engineered Products Reports Record Q3 Results Record Q3 Revenues , Increase of 81 % NANAIMO , BC , Nov. 16 , 2021 / CNW / - Atlas Engineered Products ( " AEP " or the " Company " ) ( TSXV : AEP ; ( OTC - PINK : APEUF ) is pleased to announce its financial and operating results for the three and nine months ended September 30 , 2021. All amounts are presented in Canadian dollars . " I am incredibly proud of the AEP team with their dedication and resilience in producing these record results , " said Hadi Abassi , AEP's CEO , President and Founder . " The mandate for our team this year was improving AEP's bottom line results and I couldn't be happier with the results as we achieved net income of almost $ 4.5m for the year to date ! " Financial Highlights for Q3 2021 : • Revenue increased by 81 % to $ 17,563,359 for the three months ended September 30 , 2021 compared to $ 9,677,692 for the three months ended September 30 , 2020. This increase represents the Company's best Q3 results to date . Revenue also increased 67 % to $ 41,101,422 for the nine months ended September 30 , 2021 from $ 24,676,476 for the nine months ended September 30 , 2020. The Company's revenues of $ 41,101,422 for the nine months ended September 30 , 2021 exceeds revenue results for the entire year ended December 31 , 2020 which was $ 35,734,415 . • Non - IFRS measure normalized EBITDA increased by 226 % and 232 % to $ 4,444,906 and $ 8,429,294 for the three and nine months ended September 30 , 2021 compared to $ 1,363,275 and $ 2,542,363 for the three and nine months ended September 30 , 2020. This turnaround was due to increases in revenues and gross margin , and reduced operating expenses . Normalized EBITDA of $ 8,429,294 for the nine months ended September 30 , 2021 has more than doubled the Company's normalized EBITDA for the full year ended December 31 , 2020 which was $ 4,045,232 . EBITDA SUMMARY EBITDA Adjusted EBITDA Three Months Ended Sept 2021 $ 4,419,712 4,444,906 Sept 2020 $ 1,418,044 Nine Months Ended Sept 2021 Sept 2020 Year Ended Dec 2020 $ 3,722,710 $ 8,004,573 $ 2,332,100 1,175,598 8,097,592 1,957,190 3,346,671 Normalized EBITDA 4,444,906 1,363,275 8,429,294 2,542,363 4,045,232 • Gross profits for the three and nine months ended September 30 , 2021 of $ 5,450,004 and $ 10,972,953 , respectively , were more than double gross profits for the three ( $ 2,124,812 ) and nine months ( $ 5,106,664 ) ended September 30 , 2020. Gross margin for the three months ended September 30 , 2021 was 31 % , up from gross margin of 22 % for the three months ended September 30 , 2020. Gross margins also increased to 27 % for the nine months ended September 30 , 2021 from 21 % for the nine months ended September 30 , 2020 due to the Company's hard work navigating and controlling pricing during the rising raw material prices and shortages and now the reducing raw material prices , 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 $ 2,793,913 and $ 4,494,480 for the three and nine months ended September 30 , 2021 compared to a net income of $ 419,589 for the three months ended September 30 , 2020 and a net loss of $ 122,771 for the nine months ended September 30 , 2020. This significant increase was also driven by increased revenues , improved gross margins , and reduced operating expenses . SELECTED FINANCIAL RESULTS Three Months Ended Nine Months Ended