Atlas Technical Consultants, Inc. (ATCX) Reports Q4 Revenues of $113M

Atlas Technical Consultants, Inc. (NASDAQ: ATCX) reported Q4 revenue for the quarter came in at $113 million, versus $112 million reported last year.

“We are very pleased with the positive momentum of our business during 2019, delivering record annual revenue and Adjusted EBITDA1 while also establishing a record backlog of unfilled orders as we enter 2020. We executed well throughout the year, growing our business and delivering results in line with plan,” said Atlas’ Chief Executive Officer, L. Joe Boyer. “We experienced an improved project mix increasing our net service revenues by self-performing more services versus subcontracting to outside providers. This continued shift has resulted in improved financial performance while enhancing the overall efficiency of our workforce.”

Mr. Boyer continued, “Demand conditions remain solid in our markets, with nearly half of our business being government-based projects, providing stability and predictability of revenue streams, with increasing and significant opportunities coming from municipal and state agencies outsourcing services to the private sector. We are benefiting from these favorable industry tailwinds which we expect to continue over the long term. We are taking advantage of our national scale and deep qualifications to pursue larger projects and enhance cross-selling opportunities, producing attractive project awards and expanding backlog. We also continue to execute strategic, accretive tuck-in acquisitions, such as our recent addition of Long Engineering, to broaden our technical capabilities, footprint, client base and services. With our pre-eminent position in the infrastructure-related professional services markets and our focus on superior execution, we are poised to capitalize on the multiple growth avenues ahead and to drive value for our stockholders.”

GUIDANCE:

Atlas Technical Consultants, Inc. sees FY2020 revenue of $505-530 million.

For the full year 2020, gross revenue is expected to be in the range of $505.0 million to $530.0 million, with net revenue representing a higher percentage of gross revenue in 2020 compared to 2019. Adjusted EBITDA for the full year 2020 is anticipated to be in the range of $74.0 million to $80.0 million.

At February 28, 2020, the Company had outstanding shares of class A and class B common stock of 29,700,000.

Mr. Boyer stated, "In 2020, we plan to execute our strategic priorities and pursue investments that benefit our people, clients, and shareholders. We are excited by the path forward as a public company, the long-term demand environment for our services and our multi-pronged opportunity to generate profitable growth.”

As the Coronavirus Disease (COVID-19) continues to expand and intensify in the U.S., Atlas has already taken immediate steps to mitigate the risk of the exposure in the interest of protecting its people, customers and business. We are pleased to be able to help our clients and our impacted communities mitigate the effects of this national emergency with our best-in-class team of nearly 500 industrial hygiene specialists. Atlas has already deployed its highly experienced teams of specialists to advise on and implement best practices for Atlas and address the meaningful increase in inbound requests from customers for industrial hygiene services. As building sciences service has been a core business since 1982, we are currently responding to our client needs as a response to this epidemic for industrial hygiene services ranging from safety planning, exposure pathway assessments, cleaning protocol development and decontamination oversight ranging from Washington to Florida.

Atlas has initiated a series of contingency plans to manage possible service interruptions and maintain real-time communication across its entire organization and with its clients. We remain committed to keeping our people safe and addressing our customer’s needs.

To date, the Company has not had any significant adverse impact on its business from COVID-19 and believes it is well prepared to further address the needs of customers and the communities where it operates.

"While our 2020 outlook does not currently factor in any impact related to this unfortunate pandemic, we are mindful of the potential macroeconomic disruptions beyond our control. We will continue to monitor this situation very closely and believe we are well-prepared to protect our staff and ensure continuity of service to our clients during this uncertain period,” concluded Mr. Boyer.

For earnings history and earnings-related data on Atlas Technical Consultants, Inc. (ATCX) click here.

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