Growth Follows Atlantic’s Completed Merger with Lyneer Staffing Solutions, Creating a Top 40 U.S. Staffing Firm with Over $400 Million in Annual Revenue
ENGLEWOOD CLIFFS, N.J., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Atlantic International Corp. (“Atlantic”) (OTC: ATLN), a leading provider of strategic staffing outsourced services and workforce solutions, today announced its financial results for the second quarter ended June 30, 2024. “Atlantic achieved substantial revenue growth in the second quarter, which was our first reporting period as a newly public company. We are extremely proud of all our employees who work every day to deliver e-commerce logistics on time and at the right price for our customers,” said Jeffrey Jagid, Chief Executive Officer.
Key Q2 Financial Highlights:
- Revenue: Atlantic International Corp. reported revenue of $104.6 million, representing a 17% increase compared to $89.4 million for the same period last year. Growth is attributed to expansion within our existing customer base and new customer wins, as well as improving demand for our core service offerings.
- Gross Profit: Gross profit for the quarter was $11.5 million, representing 11.0% of revenue, compared to $10.9 million, or 12.2% of revenue, in the same period last year. This was driven by expansion costs as we grow our relationships with existing clients opening new facilities and our onboarding of new clients.
Margin expansion is expected as we leverage our in-place executive team, existing back-office operations and add higher margin business, including permanent staffing revenues. We expect our next acquisition to bring an array of technology customers, which we expect to result in higher margin revenue and further diversify our customer base.
- Total Customers: As of June 30, 2024, we had approximately 1,100 total customers, compared to 1,000 as of March 31, 2024, a 10% increase quarter-over-quarter.
Operational Highlights:
- Expansion Initiatives: Atlantic International Corp.’s subsidiary Lyneer continues to execute on its strategic growth initiatives, including the expansion into new markets and the launch of innovative product lines. We are targeting combined annual revenue in excess of $1 billion in 2025, including acquisitions.
- New Onsite Locations: The company successfully opened the Rock Hill, South Carolina logistics center on behalf of UPS, bolstering our position in the fast-growing Southeast market and enhancing our service capabilities for the world’s largest global logistics provider.
- Investments in Operating Platform and M&A Expertise: We are making investments in our technology and infrastructure, including personnel, today, that we anticipate will deliver long-term results. Our newly established operating platform can service 3x Atlantic’s revenue run-rate, while delivering improved client service and satisfaction.
Management Commentary
“We are pleased to report another strong quarter, driven by solid revenue growth under the Atlantic brand,” said Jeffrey Jagid, CEO. “Our focus on operational excellence and strategic expansion has enabled us to deliver robust results and strengthen our market position. Looking ahead, we remain committed to growing topline revenue through new facilitates with our existing clients, through new customer acquisition, and through strategic M&A, creating significant value for our shareholders. We also look forward to our pending uplisting to a National Securities Exchange.”
Outlook
For the third quarter of 2024, Atlantic International Corp. expects revenue to be in the range of $105 - $115 million, reflecting continued momentum in our core customer base and seasonal trends. The company anticipates margins to improve, supported by ongoing efficiency initiatives and strategic investments, as well as reduced integration costs from the completed acquisition of Lyneer.
About Atlantic International Corp.
Atlantic International Corp. (“Atlantic”) is a leading strategic staffing, outsourced services, and workforce solutions company executing a high-growth strategy. Through its principal operating subsidiary, Lyneer Investments LLC (“Lyneer”), Atlantic’s approximately 300 employees generated over $400 million in revenue (for the twelve months ending December 31, 2023). According to Staffing Industry Analysts, Atlantic is among the top 20 largest national staffing companies servicing the light industrial, commercial, professional, finance, direct placement, and managed service provider verticals. Atlantic provides its customers with complete HR solutions, operating 40 independent on-site and vendor-on-premises facilities and paying over 12,000 employees weekly.
For more information about Lyneer Staffing Solutions please visit www.lyneer.com.
For more information about Atlantic International Corp., please visit www.atlantic-international.com.
With the exception of the historical information contained in this press release, the matters described herein, may contain “forward-looking statements” relating to the business of Atlantic, and its subsidiary company Lyneer. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects,” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at https://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors.
Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
