ATI Airtest Technologies Inc. (AAT:TSX.V; AATGF:OTC) has released an update on its recent sales activities. The company has added additional sales agents and expects that sales in Ontario will increase in the wake of the company's recent success with specialty food stores in Toronto.
Anticipating an Upturn in Sales
ATI Airtest has focused on expanding sales activities since the appointment of its new President, Lorne Stewart. The company has added two new sales agents, Chris Hampson, and Todd Points, to serve in Ontario and the Western United States, respectively. The company previously announced its partnership with a Toronto-based specialty food store, and the installation has proceeded according to expectations. This installation has proved the efficacy of Airtest's IAQEye wireless CO2 sensor, and additional installations are expected to proceed in the future.
The Ontario market, in particular, is expected to yield additional sales. In the last few weeks, site surveys were completed at a casino location, whose operator has over 30 locations across Canada, in the Greater Toronto Area, and a grocery store, whose operator has over 180 stores in Western Canada, in the Vancouver area.
Ron Struthers of Struthers' Resource Stock Report described Airtest as a "proven technology with big savings," based on its installations with Lowes, IKEA, and other stores across Canada.
The company expects to receive financial support for these installations through Save On Energy and Enbridge, both of which it has been meeting with regarding its proprietary IAQEye.
According to Ted Konyi, CEO of Airtest, "Although the most recent financials don't reflect this increased activity, I believe they soon will. In addition, cost-cutting measures and increased margins, implemented at the beginning of April, should result in a substantial improvement in profitability for the second quarter. With additional sales initiatives planned for the balance of the year, the company should show substantial improvement over previous periods."
In the United States market, the company has been supplying a national system integrator with CO2 sensors for a refit of Lowe's stores. Additionally, the company has seen success on numerous projects, from parking garage ventilation control systems, and sales of the company's new unique CO sensor, which communicates digitally with all building management systems, are also growing rapidly.
The company has also seen some sales activity in the United Kingdom.
A Proven Technology with Big Savings
Ron Struthers of Struthers' Resource Stock Report described Airtest as a "proven technology with big savings," based on its installations with Lowes, IKEA, and other stores across Canada.
Chris Temple of The National Investor said of Airtest, "If the company can keep up with what seems likely to be much more brisk demand for its offerings, it seems that the healthy quarter-over-quarter revenue that should ensue will foster a continuation in the share price rebound."
With Canadian tire stores in Ontario, the company's technology delivered over CA$240,000 in savings on natural gas. Based on rising energy demand, rising energy costs, and the company's use of subsidies, Struthers believes Airtest will perform well. Struthers also noted the company's low entry-level stock price for investors.
Chris Temple of The National Investor said of Airtest, "If the company can keep up with what seems likely to be much more brisk demand for its offerings, it seems that the healthy quarter-over-quarter revenue that should ensue will foster a continuation in the share price rebound."
The HVAC industry is expected to increase in value from US$25.6 billion in 2019 to US$35.8 billion in 2030 and has a compound annual growth rate of 9.7% from 2019 to 2025. This growth is being fueled by demand for energy-efficient utilities and an increase in construction in some areas, such as the southern United States.
A Focus on Sales
ATI Airtest has recently hired a new President who has experience in the HVAC industry and intends to focus on sales. Sales have started to trend upward for the company. A number of pilot installations have been planned within the next few months with large customers.
The company has an energy-efficient product suite that is expected to reduce operating expenses and carbon emissions.
Streetwise Ownership Overview*
ATI AirTest Technologies Inc. (AAT:TSX.V; AATGF:OTC)
Ownership and Share Structure
Management and insiders own approximately 15.26% of the company. Robert Bruce Mebruer owns 12.26% of the company with 27.30 million shares, George Burton Graham owns 2.55% with 5.67 million shares, and Lorne Kendall Ogden Stewart owns 0.45% with 1.00 million shares.
The company reports no institutional shareholders or strategic investors.
According to Airtest, it has CA$300k in the bank, with a monthly burn rate of CA$140k and a monthly profit of CA$30k.
The company reports no potential negatives.
Airtest does not work with any IR firms or influencers. Chris Temple with The National Investor provides analysis and news coverage of the company.
There are 222.67 million shares outstanding and 188.7 million free-float traded shares. The company has a market cap of CA$3.34 million.
Sign up for our FREE newsletter
Important Disclosures:
- ATI Airtest Technologies Inc. is an affiliate of and has a consulting relationship with Streetwise Reports and has paid a consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of ATI Airtest Technologies Inc.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
For additional disclosures, please click here.
