Tree Island Steel Announces Second Quarter 2013 Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/08/13 -- Q2 2013 Financial Highlights:
Tree Island Steel Ltd. ("Tree Island" or the "Company") (TSX: TSL)(TSX: TSL.DB) announced today its financial results for the three and six month periods ended June 30, 2013(1).
For the three-month period ended June 30, 2013, revenues increased to $40.6 million versus $39.6 million during the second quarter in 2012. Volumes also increased by 12% in the second quarter to 29,160 tons, primarily due to increasing demand for construction products in the Company's US markets. Gross profit continued to strengthen in the quarter, amounting to $5.4 million, representing a 27% improvement when compared to $4.2 million in the corresponding period in 2012. As a result, gross margin increased to 13.3% from 10.7%, and gross profit per ton also improved to $185 per ton, from $163 per ton in the same period in 2012. The improvements in revenues and gross profit together are the result of ongoing focus on profitable growth, cost management and operational efficiencies. These strategies resulted in EBITDA increasing 44% to $2.9 million, or $98 per ton compared, to $2.0 million and $76 per ton during the corresponding period in 2012.
For the six-month period ended June 30, 2013, revenues amounted to $78.7 million on 56,761 tons compared to $83.6 million on 56,583 tons during the same period in 2012. The lower revenues in 2013 primarily reflect price adjustments that were in line with corresponding raw material cost reductions, coupled with product mix changes and competitive factors in certain business lines, particularly, nail imports and galvanized wire sales in Canada. Gross profit increased to $9.6 million at a margin of 12.2% compared to $8.2 million or 9.8%, while gross profit per ton also increased to $170 per ton versus $145 per ton in the corresponding period in 2012. EBITDA during the first six months of 2013 increased by 26% to $4.7 million versus $3.7 million during the same period last year.
"I am pleased to see our focus on profitable growth demonstrate meaningful improvement in gross profit and EBITDA on a year-over-year basis," said Dale R. MacLean, President and CEO of Tree Island Steel. "The resurgence of the construction industry in the US, albeit still lower than historical levels, is demonstrating a positive trend along with stability in our other key end markets. Looking ahead, we remain cautiously optimistic as we navigate through the ongoing volatility in raw material and selling prices, which we have grown accustomed to, while focusing on strategies to selectively grow revenues by leveraging our brands, providing best in class product and service quality, and optimizing operational efficiencies in an effort to target and achieve improved returns for the Company and our shareholders."
Amar S. Doman, Chairman of Tree Island Steel noted, "Tree Island's second quarter results continue to demonstrate promise with improvement at the gross profit and EBITDA lines. The Company is in a good position to take advantage of increasing demand in the future."
About Tree Island Steel
Tree Island Steel, headquartered in Richmond, British Columbia, since 1964, 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 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, Industrial Alloys, TI Wire, and Tough Strand and Select Brand names. The Company also owns and operates a China-based company that assists the international sourcing of products to Tree Island and its customers.
Forward-Looking Statements
This press release includes forward-looking information with respect to Tree Island including its 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 Tree Island'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: 08.08.2013 - 14:00 Uhr
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