Atlantic International (OTC: ATLN), which acquired Lyneer Staffing Solutions earlier this year, reported revenue rose 17.1% to $104.6 million in the second quarter, though the firm posted a net loss of $54.9 million. The Englewood Cliffs, New Jersey-based firm reported the increase in revenue came primarily from higher revenue in its temporary placement business, where it rose 17.7%. Perm placement revenue fell 30.7% amid lower demand.

“Atlantic achieved substantial revenue growth in the second quarter, which was our first reporting period as a newly public company,” CEO Jeffrey Jagid said in a press release.

Second-quarter gross profit was $11.5 million, with a gross margin of 11.0%. That compares to gross profit of $10.9 million and a gross margin of 12.2% in the year-ago quarter. Atlantic International stated expansion costs and onboarding of new clients affected gross profit growth.

The company said it had 1,100 total customers as of June 30, up from 1,000 in the second quarter of last year. In addition, Atlantic International reported:

• It’s targeting combined annual revenue of more than $1 billion in 2025, including acquisitions.
• The company opened a logistics center in Rock Hill, South Carolina, on behalf of UPS.
• It’s making investments in its operating platform and M&A expertise.

Atlantic International - Q2 2024

Guidance

Atlantic International expects third-quarter revenue to range from $105 million to $115 million.

Share Price

Shares were trading at $6.05 as of 10:24 a.m. Eastern time today.