Tree Island Announces Third Quarter 2012 Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/08/12 -- Tree Island Steel Ltd. (TSX: TSL)(TSX: TSL.DB) -
Q3 2012 Financial Highlights:
Tree Island Steel Ltd. (formerly Tree Island Wire Income Fund or the "Fund") ("Tree Island"(1) or the "Company")) (TSX: TSL)(TSX: TSL.DB) announced today its financial results for the three and nine-month periods ended September 30, 2012.
For the three-month period ended September 30, 2012(2), sales totaled $34.0 million versus $38.0 million during the corresponding period in 2011, while gross profit increased to $3.5 million from $1.4 million mainly due to Tree Island's ongoing focus on profitable growth. Gross profit per ton also improved to $144 per ton, compared to $51 per ton in the same period in 2011. Gross profit and gross profit per ton continued to demonstrate improvement on a consecutive quarter basis as the Company maintained price discipline and further improved operational efficiencies. As a result of Tree Island's ongoing focus on pricing and cost management, EBITDA increased to $1.0 million during the third quarter of 2012, which compares to an EBITDA loss of $1.3 million during the corresponding period in 2011.
For the nine-month period ended September 30, 2012(2), despite a 5% decrease in sales volume, Tree Island's revenues increased by 2% to $117.6 million from $114.9 million during the same period in 2011. Gross profit and EBITDA also increased to $11.7 million and $4.7 million, respectively. The year-over-year improvement in financial results is largely the result of focused management initiatives.
During the nine-month period ended September 30, 2012, Tree Island purchased 1,018,500 units at an average price of $0.30 per unit, under its previously announced normal course issuer bid. These units were cancelled by the Company at the end of the month of purchase. On September 6, 2012, the normal course issuer bid was extended to September 6, 2013. Under the renewed normal course issuer bid the Company may purchase up to 1,700,000 units.
"I am encouraged with our overall business strategy demonstrating strength and resilience in a business environment where price volatility and overall visibility continue to be a challenge," said Dale R. MacLean, President and CEO of Tree Island Steel Ltd. "Our financial performance during the third quarter is a clear testament to our focus on profitable growth, and the strength of our underlying business fundamentals evidenced by the meaningful improvement to profit margins on a year-over-year basis despite lower sales volumes."
Amar S. Doman, Chairman of Tree Island Steel Ltd. noted, "The Company continues to demonstrate financial and operational progress with a solid commitment to providing best-in-class product quality and service to customers and partners. The sustained improvement in financial results reflects the hard work and dedication of the Tree Island team during some challenging times, which have led to a stronger Tree Island today."
About Tree Island Steel Ltd.
Tree Island Steel Ltd. 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, since 1964, Tree Island Industries Ltd., through its four operating facilities in Canada and the United States, produces wire products for a diverse range of industrial, residential construction, commercial construction, agricultural, and specialty applications. Its products include 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, Industrial Alloys, TI Wire, and Tough Strand and Select Brand names. Tree Island also owns and operates a Hong Kong-based company that assists the international sourcing of products to Tree Island Industries Ltd. and its customers.
Forward-Looking Statements
This press release includes forward-looking information with respect to the Tree Island 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 Company's Board of Directors 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 Company 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 Steel Ltd.
Nancy Davies
Chief Financial Officer
(604) 523-4587
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Datum: 08.11.2012 - 15:45 Uhr
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News-ID 1169068
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