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.
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