Tree Island Announces First Quarter 2012 Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/14/12 -- Tree Island Wire Income Fund (TSX: TIL.UN)(TSX: TIL.DB) -
Q1 2012 Financial Highlights
Tree Island Wire Income Fund ("Tree Island" or the "Fund" (1)) announced today its financial results for the three month period ended March 31, 2012.
For the three months ended March 31, 2012(2), higher sales volumes and selling prices resulted in a 13 percent increase in revenues totaling $44.0 million, compared to $38.9 million during the corresponding period in 2011. Gross profit decreased $0.4 million to $4.0 million, while gross profit per ton also decreased by $16 per ton to $130 per ton, compared to $146 per ton in the same period in 2011. The decrease in gross profit and gross profit per ton primarily reflects the increases in cost of raw materials and were primarily offset by the increase in sales prices and volumes. Gross profit and gross profit per ton were also negatively impacted by the relatively stronger US dollar on costs for our Canadian operations when compared to the same period in 2011. Consequently, EBITDA decreased to $1.7 million versus $2.0 million.
"I am encouraged that we are realizing the benefits of our initiatives to maintain market positioning and increase selling prices in an environment that remains demanding and competitively challenging," said Dale R. MacLean, President and CEO of Tree Island Industries. "While we experienced early signs of an improved selling environment, the continued global economic uncertainty coupled with aggressive pricing in certain key product categories provides the backdrop for our outlook to remain cautious. Going forward, we will continue to concentrate our energies on gross profit improvement, cost management and our ability to further optimize capacity utilization."
Amar Doman, Chairman of the Fund noted, "The Fund's top line performance in the first quarter is promising from a market demand perspective. The macro-economic environment at large remains volatile, however there also seem to be some early indications and pockets of strength in certain of our key end markets. While we continue to run the business cautiously given the re-emergence of headwinds and uncertainty in global markets, we remain well positioned to drive economies of scale and demonstrate growth and optimal profitability when healthier market conditions present themselves."
About Tree Island Wire Income Fund
The Fund was launched on November 12, 2002 with the completion on an initial public offering. The Fund has a 100% ownership interest in Tree Island Industries Ltd and its performance depends on the performance of Tree Island Industries Ltd. Headquartered in Richmond, British Columbia, Tree Island Industries Ltd. produces wire products for a diverse range of construction, industrial, residential, manufacturing, and industrial applications. Its products include bright wire, stainless steel wire and galvanized wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products, engineered structural mesh, fencing and other fabricated wire products. The company markets these products under the Tree Island, Halsteel, K-Lath, Industrial Alloys, Tough Strand, and TI Select brand names.
Forward-Looking Statements
This press release includes forward-looking information with respect to the Fund and the company, including their business, operations and strategies, as well as financial performance and conditions. The use of forward-looking words such as "may", "will", "expect" or similar variations generally identify such statements. Any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Although management believes that expectations reflected in forward-looking statements are reasonable, such statements involve risks and uncertainties including risks and uncertainties discussed under the heading "Risk Factors" in the Fund's most recent annual information form and management discussion and analysis.
The forward looking statements contained herein reflect management's current beliefs and are based upon certain assumptions that management believes to be reasonable based on the information currently available to management. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward looking statements. In evaluating these statements, prospective investors should specifically consider various factors including the risks outlined in the Fund's most recent annual information form and management discussion and analysis which may cause actual results to differ materially from any forward looking statement. Such risks and uncertainties include, but are not limited to: general economic, market and business conditions, the cyclical nature of our business and demand for our products, financial condition of our customers, competition, volume and price pressure from import competition, deterioration in the Company's liquidity, disruption in the supply of raw materials, volatility in the costs of raw materials, significant exposure to the Western United States due to lack of geographic diversity, dependence on the construction industry, transportation costs, foreign exchange fluctuations, leverage and restrictive covenants, labour relations, trade actions, dependence on key personnel and skilled workers, reliance on key customers, intellectual property risks, energy costs, un-insured loss, credit risk, operating risk, management of growth, changes in tax, environmental and other legislation, and other risks and uncertainties set forth in our publicly filed materials.
This press release has been reviewed by the Fund's Board of Trustees and its Audit Committee, and contains information that is current as of the date of this press release, unless otherwise noted. Events occurring after that date could render the information contained herein inaccurate or misleading in a material respect. Readers are cautioned not to place undue reliance on this forward-looking information and management of the Fund undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise except as required by applicable securities laws.
Contacts:
Tree Island Wire Income Fund
Nancy Davies
Chief Financial Officer
(604) 523-4587
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Datum: 14.05.2012 - 15:36 Uhr
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