In This Article:
VANCOUVER, British Columbia, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Tree Island Steel (''Tree Island'' or the ''Company'') (TSX: TSL) announced today its financial results for the three months ended September 30, 2024.
For the three-month period ended September 30, 2024, revenues, net of freight and distribution costs, decreased by $1.8 million to $51.6 million, compared to $53.4 million in 2023. Gross profit for the quarter decreased to $2.1 million, from $6.0 million in the same period in 2023. Adjusted EBITDA amounted to $6 thousand, compared to $4.1 million during the same period in 2023. The largest drivers for the decreased earnings are the lower average selling prices and reduced spreads between selling prices and raw material costs. This was due to competitive pricing pressures across our market segments but especially in the residential and industrial segments.
For the nine months ended September 30, 2024, revenues, net of freight and distribution costs, decreased by $30.0 million to $162.2 million compared to $192.2 million in 2023, and gross profit decreased to $11.5 million from $26.9 million. The decrease is for the same factors as in the quarter. The shutdown of Etiwanda facility last year also impacted volumes and revenue from Q3 2023 and onwards. This resulted in an Adjusted EBITDA of $6.0 million, compared to $20.6 million during the same period in 2023.
“In the past three months we continued to face uncertainty in the market. Generally slower demand from our customers along with declines in steel prices influenced market prices for our products. We remain committed to controlling our costs and leveraging our operational capabilities to navigate the challenging economic environment,” commented Nancy Davies, Chief Operating Officer of Tree Island Steel.
| RESULTS FROM OPERATIONS |
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| Three Months Ended |
| Nine Months Ended |
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| ($'000 unless otherwise stated) | September 30, |
| September 30, |
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| 2024 |
| 2023 |
| 2024 |
| 2023 |
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| Revenue | 54,948 |
| 56,890 |
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| 173,256 |
| 203,901 |
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| Freight and distribution costs | (3,334 | ) | (3,524 | ) |
| (11,103 | ) | (11,674 | ) |
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| Subtotal | 51,614 |
| 53,366 |
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| 162,153 |
| 192,227 |
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| Cost of sales | (48,179 | ) | (46,114 | ) |
| (146,600 | ) | (161,576 | ) |
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| Depreciation | (1,384 | ) | (1,213 | ) |
| (4,066 | ) | (3,747 | ) |
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| Gross profit | 2,051 |
| 6,039 |
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| 11,487 |
| 26,904 |
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| Selling, general and administrative expenses | (3,340 | ) | (3,213 | ) |
| (10,019 | ) | (10,049 | ) |
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| Operating income (loss) | (1,289 | ) | 2,826 |
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| 1,468 |
| 16,855 |
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| Foreign exchange gain (loss) | (89 | ) | 22 |
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| 495 |
| 39 |
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| Loss on disposition of property, plant and equipment disposal | ‐ |
| (7 | ) |
| ‐ |
| (104 | ) |
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| Site closure costs | ‐ |
| - |
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| ‐ |
| (1,340 | ) |
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| Reorganization costs | (33 | ) | - |
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| (44 | ) | (2,097 | ) |
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| Interest Income | 80 |
| 122 |
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| 415 |
| 513 |
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| Financing Expenses | (659 | ) | (551 | ) |
| (1,787 | ) | (1,359 | ) |
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| Income (Loss) before income taxes | (1,990 | ) | 2,412 |
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| 547 |
| 12,507 |
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| Income tax (expense) recovery | 144 |
| (468 | ) |
| (1,158 | ) | (3,064 | ) |
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| Net income (loss) | (1,846 | ) | 1,944 |
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| (611 | ) | 9,443 |
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| Net income (loss) per share | (0.07 | ) | 0.07 |
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| (0.02 | ) | 0.34 |
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| Dividends per share | 0.03 |
| 0.03 |
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| 0.09 |
| 0.13 |
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| September 30, |
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| December 31, |
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| Financial position as at: |
| 2024 |
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| 2023 |
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| Total assets |
| 170,484 |
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| 174,260 |
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| Total non‐current financial liabilities |
| 29,840 |
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| 28,439 |
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| Adjusted EBITDA |
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| Three Months Ended |
| Nine Months Ended |
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| ($'000 unless otherwise stated) | September 30, |
| September 30, |
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| 2024 |
| 2023 |
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| 2024 |
| 2023 |
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| Operating income (loss) | (1,289 | ) | 2,826 |
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| 1,468 |
| 16,855 |
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| Add back depreciation | 1,384 |
| 1,213 |
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| 4,066 |
| 3,747 |
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| Foreign exchange (loss) gain | (89 | ) | 22 |
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| 495 |
| 39 |
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| Adjusted EBITDA1 | 6 |
| 4,061 |
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| 6,029 |
| 20,641 |
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| 1 See definition on Adjusted EBITDA in Section 2 NON‐IFRS MEASURES of the September 30, 2024, MD&A. |
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About Tree Island Steel
Tree Island Steel, headquartered in Richmond, British Columbia since 1964, through its operating facilities in Canada and the United States, produces wire products for a diverse range of industrial, residential construction, commercial construction and agricultural applications. Its products include galvanized wire, bright wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products; concrete reinforcing mesh; fencing and other fabricated wire products. The Company markets these products under the Tree Island®, Halsteel®, K-Lath®, TI Wire®, ToughStrand® and ToughPanel® brand names.