Atlantic International (ATLN) Registration filing summary

Company overview and business model

• Completed acquisition of Lyneer Investments LLC, a national workforce solutions firm with over $400M in 2023 revenue and $5.4M adjusted EBITDA.

• Lyneer provides temporary, temp-to-perm, and permanent staffing across multiple verticals, including commercial, professional, finance, and managed service provider sectors.

• The business model emphasizes proactive recruitment, a national footprint, and a scalable, technology-driven approach to workforce management.

• Lyneer serves over 1,200 clients, places 60,000+ employees annually, and operates from more than 100 locations nationwide.

• The company is pursuing an aggressive M&A strategy to expand into high-growth verticals such as healthcare and financial services.

Financial performance and metrics

• Lyneer reported $401.4M in net service revenue for 2023, down 9.1% from 2022, primarily due to lower temporary placement demand.

• Gross profit for 2023 was $46.9M (11.7% margin), with adjusted EBITDA of $5.4M, down from $14.7M in 2022.

• Net loss for 2023 was $15.3M, compared to a $3.2M loss in 2022, driven by higher interest expense and transaction costs.

• As of March 31, 2024, Lyneer had $973,886 in cash, $67.6M in current assets, and $157.4M in total liabilities, with all debt classified as current due to covenant breaches.

• Lyneer’s liquidity is constrained, with negative committed resources and substantial debt obligations totaling $137.3M as of March 31, 2024.

Use of proceeds and capital allocation

• No proceeds will be received by the company from the resale of shares by selling shareholders.

• Proceeds from the Merger Note and future capital raises are earmarked for debt repayment and refinancing, with a $35M Merger Note due September 30, 2024.

• The company must complete a $20M capital raise and restructure debt to maintain operations and avoid default.