| | Smallcap Discoveries: Update on Atlas Engineered Products Ltd |
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Atlas is a growth company that is acquiring and operating profitable, well-established operations in Canada's truss and engineered products industry. We have a well-defined and disciplined acquisition and operating growth strategy enabling us to scale aggressively, giving us a unique opportunity to consolidate a fragmented industry of independent operators.
On December 29, 2021, I joined the board of Atlas. I personally own 404,000 shares of Atlas’ stock and control another 821,079 shares through NameSilo Technologies (URL:CSE). In addition, I also own 125,000 warrants and 100,000 options. With a significant vested interest in the future of Atlas, I decided to join the Board of Directors because I believe I will be a valuable addition, bringing forward my capital markets experience and dedication to helping high growth potential companies succeed.
A little about me: before I began my professional career working in the investment industry, I worked in the construction industry. I even studied construction management at Douglas College. While I’ve been out of the construction industry for a few years, I believe I have a very good understanding of the business. I know where companies like Atlas fit into the construction industry, and what makes them successful. I like this company and more importantly, I like the opportunity it presents.
On February 3, 2021 the Company announced that CEO Dirk Maritz had resigned as the CEO, and stepped down as a Director. Atlas founder, Hadi Abbasi, has returned as the Company CEO and president.
Over the past few years, I have come to know Dirk and the team. I admire Dirk, he has implemented structure, operational systems, and a level of professionalism the organization desperately needed to properly position the company for both M&A and organic growth. Initially, when Atlas went public its sole operation in Nanaimo, British Columbia was generating roughly $8 million in annual revenue. Approximately, three years later, Atlas has grown to 7 locations across Canada and generated trailing 12-month revenues of roughly $33.7 million. Last year Atlas was negatively impacted by the Covid slowdowns but has since recovered amidst a booming home building industry. I believe Atlas is perfectly positioned for growth and will continue executing on its strategy of consolidating this highly fragmented roof truss and engineered wood product industry.
I believe this change in management is the right move for the Company. Hadi has always been consistent in his passion for Atlas and what his vision is for the company.
To be clear, this was a mutual decision, and I think Dirk has done a great job getting the company positioned for good growth. The analogy that resonates for me, is that some companies run marathons and others run relay races. Dirk has handed off the baton to Hadi. Atlas has an established platform, that I believe will demonstrate strong organic growth and is ready for the next phase of M&A growth.
This move will also significantly cut SG&A. For a company of this size, the drop in expenses should have a material effect on the bottom line. I've been looking to see the company focus on cost reduction and strong bottom-line metrics for some time now. With the solid imprint Dirk has left on the business I believe the company is very well positioned now to grow aggressively and efficiently. I look forward to great things for the company and will do all I can to help ensure its success.
Yours truly,
Paul Andreola
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