Atlantic International Corp. Reports Strong 2024 Results with Over $442 Million in Revenue; Over 10% Revenue Growth
Company Completes First Quarter Publicly-Traded on Nasdaq Global Market under "ATLN"
Announces Strategic Developments and Outlook; Targets $1 to $1.5 Billion Revenue from Both Organic Growth and M&A Initiatives in the Next 12 to 18 Months
ENGLEWOOD CLIFFS, N.J., March 28, 2025 (GLOBE NEWSWIRE) -- Atlantic International Corp. ("Atlantic" or the "Company") (NASDAQ:ATLN), a leading provider of strategic staffing, outsourced services and workforce solutions, today announced its financial results for the fourth quarter and full year ended December 31, 2024.
Key Financial Highlights:
- Q4 2024 Revenue: Revenue for the fourth quarter was $129.5 million, representing an 11.5% increase from $116.2 million in Q4 2023.
- Q4 2024 Gross Profit: Gross profit for the quarter was $13.3 million, or 10.3% of revenue, compared to $12.6 million, or 10.84% of revenue, in Q4 2023.
- Q4 2024 Adjusted EBITDA: Adjusted EBITDA for Q4 was $1.9 million, reflecting ongoing cost efficiencies and revenue growth.
- Full-Year Revenue: Atlantic reported full-year revenue of $442.6 million, reflecting an increase of 10.3% compared to $401.4 million in 2023. Growth was driven by expansion in key industry verticals, new customer acquisitions, and increased demand for workforce solutions.
- Full-Year Gross Profit: Gross profit for the year was $47.2 million, or 10.7% of revenue, compared to $46.9 million, or 11.7% of revenue, in the prior year.
- Full-Year Adjusted EBITDA: Excluding one-time charges, Adjusted EBITDA was $4.7 million, reflecting operational improvements and cost efficiencies.
Operational and Strategic Highlights:
- Expansion of Workforce Solutions: The Company continued to expand its on-premise managed services, with new locations opening across Texas and the Southeast, serving major logistics and manufacturing clients.
- Technology Investments: Launched the Site Selection Dashboard, enabling customers to optimize hiring decisions through data-driven insights, which is expected to contribute to higher-margin revenue streams in 2025.
- Termination of Staffing 360 Acquisition: Atlantic formally terminated the planned merger with Staffing 360 Solutions Inc. due primarily to unresolved financial contingencies related to IRS settlement agreements. The Company remains focused on other strategic M&A opportunities aligned with its long-term growth strategy.
- Debt Refinancing Efforts: The Company is actively working on restructuring existing credit facilities to improve liquidity and financial flexibility, with a focus on reducing overall leverage.
Management Commentary:
"Our 2024 performance demonstrates the resilience and scalability of our business model," said Jeffrey Jagid, Chief Executive Officer of Atlantic International Corp. "We have a strong M&A pipeline which is expected to drive toward our stated goal of exceeding $1 to $1.5 billion revenue on a run-rate basis within 12-18 months. In addition, during 2025, we intend to implement robust margin improvement and cost cutting initiatives which should result in significant EBITDA margin expansion. We maintain a disciplined approach to value creation and are confident in our ability to drive revenue and earnings growth and operational efficiencies in 2025."
Non-GAAP Financial Measures
(Unaudited)
In addition to our financial results presented in accordance with GAAP, Atlantic may use certain non-GAAP financial measures, which we believe provide useful information to investors in evaluating our core operating performance. The following non-GAAP financial measure presented may not provide information that is directly comparable to that provided by other companies, as other companies may calculate such financial results differently. We view this non-GAAP financial measure as supplemental, which is not intended to be a substitute for, or superior to, the information provided by GAAP financial results.
"Adjusted EBITDA", a non-GAAP financial measure, is defined by Atlantic as net income (loss) before depreciation and amortization; stock-based compensation expense; interest expense, net; income tax (benefit) expense; organizational realignment activities; legal settlement expense and loss on extinguishment, change in fair value. Adjusted EBITDA should not be considered a measure of financial performance under GAAP. Items excluded from Adjusted EBITDA are significant components in understanding and assessing our past and future financial performance, and this presentation should not be construed as an inference by us that our future results will be unaffected by those items excluded from Adjusted EBITDA. Adjusted EBITDA is a key measure used by management to assess our operations including our ability to generate cash flows and our ability to repay our debt obligations and management believes it provides a good metric of our core profitability in comparing our performance to our competitors, as well as our performance over different time periods. Consequently, management believes it is useful information to investors. The measure should not be considered in isolation or as an alternative to net income, cash flows or other financial statement information presented in the consolidated financial statements as indicators of financial performance or liquidity. Also, Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.
In addition, although we excluded stock-based compensation expense because it is a non-cash expense, we expect to continue to incur stock-based compensation expense in the future and the associated stock issued may result in an increase in our outstanding shares of stock, which may result in the dilution of our shareholder ownership interest. We suggest that you evaluate these items and the potential risks of excluding such items when analyzing our financial position.
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 $440 million in revenue for the twelve months ended December 31, 2024. 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 50 independent on-site and vendor-on-premises facilities and paying over 14,000 employees weekly.
For more information about Atlantic International Corp., please visit www.atlantic-international.com.
Forward-Looking Statements & Safe Harbor Statement
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 http://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.
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