 - Resilient business model, proactive execution and safety-first emphasis delivered strong results - - Reiterate full year 2020 outlook -AUSTIN, Texas, Aug. 10, 2020 GLOBE NEWSWIRE -- Atlas Technical Consultants, Inc. Nasdaq: ATCX Atlas or the Company, a leading provider of professional testing, inspection, engineering, program management and consulting services, announced today results for the second quarter ended June 30, 2020.Second Quarter 2020 Highlights: Gross revenue of 112.7 million, with significant demand recovery since April driving sequential monthly revenue improvement as quarter progressed Net revenue1 of 91.6 million, representing 81.3 of gross revenues, compared to net revenues representing 79.2 of gross revenues in the prior year period Net income of 2.2 million Adjusted EBITDA2 of 15.4 million Backlog up year-over-year to a record 621 million Liquidity at the end of the quarter was approximately 39.0 million, including cash of 16.9 million plus availability under the revolving credit facility Signed agreements to acquire Alta Vista and WesTest, which will strengthen Atlas transportation and other infrastructure-related testing, inspection and engineering services in our West, Central and Northeast regionsMy sincere appreciation goes to our entire team as we work together during this very challenging time to operate safely, provide exceptional service and support to our clients, and take care of each other along the way, stated L. Joe Boyer, Atlas Chief Executive Officer. Delivering a solid quarter during extraordinary circumstances ultimately demonstrates the resilience of our business and underlying demand for our mission critical services. Our government-based volume grew steadily through the quarter as states continued to invest in critical infrastructure. Our planned acquisitions of Alta Vista and WesTest will further enhance our self-performance capabilities in this key growth sector, and our acquisition pipeline remains robust to further accelerate our success. In the private sector, we saw sequential monthly improvement in the quarter, and we are already positioning for a future that will see demand for safer environments in places of business, commercial structures and other spaces.Mr. Boyer continued, Overall, we believe our business is in great shape with strong project wins driving record backlog combined with a flexible cost structure to efficiently serve customers. We remain committed to generating additional cash flow and strengthening our balance sheet while executing our deleveraging acquisition strategy to generate additional value. We are confident that our strategy and capital resources, coupled with disciplined execution from our team, will continue to position us as a standout emerging growth company within our space in 2020 and into 2021.Second Quarter 2020 Results Gross revenue of 112.7 million, compared to 123.7 million in the prior year quarter. The lower revenue is attributable primarily to COVID-19 related delays in private sector work, partly offset by the contribution of Long Engineering acquired in February 2020. Net revenue of 91.6 million, compared to 97.9 million in the prior year quarter. The lower revenue is attributable to the decline in gross revenue, partly offset by an increasing level of self-performance work, minimizing reliance on third-party providers and pass-through participation. Net income was 2.2 million, compared to net income of 4.1 million in the prior year quarter. Adjusted EBITDA of 15.4 million, compared to 17.3 million in the prior year quarter, primarily due to lower net revenues partly offset by operating efficiency and discrete cost mitigation measures enacted at the onset of the pandemic. Backlog at quarter end totaled 621 million, up from 611 million at the end of the prior year quarter. Strong sales and backlog growth were driven by a range of project additions across the nationwide platform, an increase in average project size and the addition of Long Engineering. Operating cash flow of 6.3 million, compared to 6.4 million in the prior year quarter.Six Month 2020 Results Gross revenue of 222.0 million, compared to 229.3 million in the prior year period. Net revenue of 182.1 million, compared to 183.7 million in the prior year period. Net loss was 21.3 million, compared to net income of 4.9 million in the prior year period. The net loss in the first half 2020 included 27.3 million of one-time pre-tax costs, primarily related to 16.7 million of transaction costs and professional fees associated with the Companys business combination with Boxwood Merger Corp, and also 10.7 million of non-cash equity compensation. Adjusted EBITDA of 28.3 million, compared to 28.2 million in the prior year period, essentially stable year-over-year despite a decrease in revenue.Full Year 2020 Outlook Based on current backlog, the Company affirms its previously provided expectation for gross revenue to be in the range of 453 million to 468 million, with net revenue representing a higher percentage of gross revenue in 2020 compared to 2019. Adjusted EBITDA is anticipated to be in the range of 58 million to 64 million. The outlook reflects current visibility on the timing of work as stay-at-home orders are lifted.David D. Quinn, Sr. Chief Financial Officer, concluded, Our strong results validate the exceptional resilience of our business during a quarter in which the U.S. economy contracted at the steepest rate in our nations history. We are therefore optimistic about our outlook based on the trajectory of our end markets and the continued improvement in our labor utilization, as well as the adaptability of our highly variable cost structure to help us succeed in a variety of economic scenarios. We look forward to delivering on our 2020 objectives and to entering 2021 with significant momentum to further build on our success. 1 Net revenue is a Non-GAAP financial measure. Please see Reconciliation of Non-GAAP Financial Measures for a reconciliation of net revenue to the most comparable financial measure calculated in accordance with GAAP.2 Adjusted EBITDA is a Non-GAAP financial measure. Please see Reconciliation of Non-GAAP Financial Measures for a reconciliation of Adjusted EBITDA to the most comparable financial measure calculated in accordance with GAAP. Webcast and Conference Call The Company will host a webcast and conference call on Monday, August 10, 2020 at 5:00 p.m. Eastern time 4:00 p.m. Central time to review second quarter 2020 results, discuss recent events and conduct a question-and-answer session. The live webcast will be available at in the Investors section. The conference call will also be accessible by dialing 1-877-407-9716 Domestic and 1-201-493-6779 International. To access the replay of the call, dial 1-844-512-2921 Domestic and 1-412-317-6671 International with pass code 13707220. A replay of the webcast will be available on the Companys website.About Atlas Technical ConsultantsHeadquartered in Austin, Texas, Atlas is a leading provider of professional testing, inspection engineering and consulting services under the name Atlas Technical Consultants, offering solutions to public and private sector clients in the transportation, commercial, water, government, education and industrial markets. With more than 100 offices in 40 states and 3,200 employees, Atlas provides a broad range of mission-critical technical services, helping clients test, inspect, certify, plan, design and manage a wide variety of projects across diverse end markets. For more information, go to StatementsThe statements contained in this press release that are not purely historical are forward-looking statements and involve a number of risks and uncertainties. Our forward-looking statements include, but are not limited to, statements regarding our or our management teams expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions and estimates, are forward-looking statements. The words anticipate, believe, continue, could, estimate, expect, intends, may, might, plan, possible, potential, predict, project, should, would and variations of such words and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on our expectations and beliefs as of the date of this filing concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties some of which are beyond our control or other assumptions or estimates that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. 