ATRM Reports Strong Backlog at KBS Builders, Recent Order for 14 Homes; EdgeBuilder Secures Record Contract
January 30 2017 - 4:05PM
Marketwired
ATRM Reports Strong Backlog at KBS Builders, Recent Order for 14
Homes; EdgeBuilder Secures Record Contract
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.
Forward-Looking Statements
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.
Contact: Stephen A. Clark ATRM Holdings, Inc. (651) 704-1800