Holding company operating through its wholly-owned subsidiaries KBS Builders, Inc., EdgeBuilder, Inc. and Glenbrook Building Supply, Inc. KBS Builders, Inc. manufactures modular housing units for commercial and residential applications, ATRM Holdings, Inc. (OTCMKTS:ATRM), announces that its subsidiaries are preparing for busy building season.
St. PAUL, MN–(Marketwired – Jan 30, 2017) – ATRM Holdings, Inc. (OTCQB : ATRM) (“ATRM” or the “Company”) today reported that its KBS Builders, Inc. subsidiary (“KBS”) has built a strong backlog of projects to be constructed in the first and second quarters, leading up to its busy building season. As of December 31, 2016, KBS’s backlog included nearly 50 single-family homes as well as an 18-unit, three-story apartment building. During January 2017, KBS continued its strong sales efforts, contracting for over 20 additional single-family homes and a single order for fourteen townhome style homes.
“Building off a steady stream of production during the second half of 2016, KBS is poised to be operating at full capacity at its South Paris, ME plant well into the second quarter of 2017 leading up to the historically strong spring and summer building season,” stated Dan Koch, ATRM’s Chief Executive Officer. “The new contracts in 2017 have been coming in at a rate that is closer to the rate we see during our busy season; a significant improvement over what we experienced during the winter months of 2015 and 2016. These contracts are a result of the new builders KBS has engaged, our commitment to quality, and our efforts to focus on commercial work that corresponds with KBS’s strengths. KBS’s backlog represents the strong demand for KBS’s quality products. We are extremely pleased with the progress that KBS has made over the past year.”
In addition to the positive developments at KBS, ATRM also announced that its EdgeBuilder, Inc. and Glenbrook Building Supply, Inc. subsidiaries (“EBGL”), have signed a contract for wall panels and building supplies totaling more than $2.0 million. The contract, which includes more than 80,000 lineal feet of wall panels that will be constructed in EBGL’s Prescott, WI facility, is for a multi-family housing project located in Maple Grove, MN. The contract is with a large, well-known general contractor in the Twin Cities area, which is a new customer for EBGL. The order represents the largest-ever secured by EBGL, which businesses were acquired by ATRM in October 2016. “Landing this contract is a great beginning to the operations of EBGL,” Mr. Koch noted. “We believe this order to be indicative of the strong demand for our wall panel products throughout the upper Midwest and the continued positive construction activity in response to the demand for multi-family housing units. In addition to the new contract, EBGL’s businesses have also built a strong backlog through existing customers and the addition of several new customers.”
“ATRM continues to demonstrate improvements in its operating subsidiaries,” said Jeff Eberwein, Chairman of the Board of Directors. “The strong start to 2017 at KBS with their strong backlog, as well as the positive start for EBGL, is very encouraging. We are excited about the direction of ATRM and its businesses and look forward to demonstrating ATRM’s ability to produce positive earnings. We continue to believe KBS is capable of generating annual revenues of $40 million when both plants are fully utilized with operating profit margins of 5-10%. Additionally, we believe that EBGL will add another $15 million to $18 million of annual revenues, with operating profit margins of 10%.”
About ATRM Holdings, Inc.
ATRM Holdings, Inc. ( OTCQB : ATRM ) is a holding company operating through its wholly-owned subsidiaries KBS Builders, Inc., EdgeBuilder, Inc. and Glenbrook Building Supply, Inc. KBS Builders, Inc. manufactures modular housing units for commercial and residential applications. EdgeBuilder, Inc. and Glenbrook Building Supply, Inc. manufacture wall panels and supply general contractors with lumber, windows, doors, and other building supplies, used in both residential and commercial construction. ATRM is based in Oakdale, Minnesota, with facilities in South Paris and Waterford, Maine, Oakdale, Minnesota and Prescott, Wisconsin. ATRM’s website is www.atrmholdings.com.
This press release may contain “forward-looking statements”, as such term is used within the meaning of the Private Securities Litigation Reform Act of 1995. These “forward-looking statements” are not based on historical fact and involve assessments of certain risks, developments, and uncertainties in the Company’s business looking to the future. Such forward-looking statements can be identified by the use of terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “estimate”, “intend”, “continue”, or “believe”, or the negatives or other variations of these terms or comparable terminology. Forward-looking statements may include projections, forecasts, or estimates of future performance and developments. These forward-looking statements are based upon assumptions and assessments that the Company believes to be reasonable as of the date hereof. Whether those assumptions and assessments will be realized will be determined by future factors, developments, and events, which are difficult to predict and may be beyond the Company’s control. Actual results, factors, developments, and events may differ materially from those the Company assumed and assessed. Risks, uncertainties, contingencies, and developments, including those discussed in the Company’s filings with the Securities and Exchange Commission, could cause the Company’s future operating results to differ materially from those set forth in any forward-looking statement. There can be no assurance that any such forward-looking statement, projection, forecast or estimate contained can be realized or that actual returns, results, or business prospects will not differ materially from those set forth in any forward-looking statement. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.
ATRM Holdings, Inc. (OTCMKTS:ATRM) shares have moved +14.29% on the news thus far today and have traded in the range of $1.75 – 2.50 during the current session. In order to take a look at where the stock might be headed longer term, investors often look to research firms that cover the stock. Sell-side research firms currently have a consensus one-year price target of $3.00 on the stock. This is according to brokerage analysts polled by Thomson Reuters First Call. The sell-side analysts are projecting earnings per share of $0.00 for the next fiscal quarter. For the current year, analysts are predicting earnings of $nan per share according to First Call.
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In looking at where the stock is trading on a technical level, the stock is trading +25.71% away from its 50-day moving average of $1.59. Based on the most recent available data, the equity is -33.55% off of its 52-week high of $3.01 and +263.64% away from its 52-week low which is $0.55.
Today, the stock opened at $1.75 and the last bid at the time of writing stood at $2.00. During the session thus far, the equity dipped down to $1.75 and touched $2.50 as the high point. ATRM Holdings, Inc. (OTCMKTS:ATRM) has a market cap of $4.79M and has seen an average daily volume of 2,105 over the past three months.
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