Tree Island Steel (''Tree Island'' or the ''Company'') (TSX: TSL)
announced today its financial results for the three month and year
ended December 31, 2020.
For the three‐month period ended December 31,
2020, revenues increased by $9.1 million to $54.2 million, from
higher volumes shipped across all market segments. Gross profit for
the fourth quarter increased to $6.6 million, from $3.5 million in
the same period in 2019, as a result of increased sales volumes,
operating leverage from increased volumes, and cost management.
EBITDA amounted to $4.5 million, compared to $0.6 million during
the same period in 2019.
For the year ended December 31, 2020, revenues
increased by $15.5 million to $215.9 million when compared to 2019.
The increase is primarily due to higher shipped volumes, with
growth in our Agricultural, Industrial and Residential Construction
segment sales. Gross profit increased to $25.9 million, from $17.8
million, and gross margin was higher at 12.0%, as compared to 8.9%
in 2019. The increased gross profit for the period is primarily the
result of higher sales volume, improved efficiencies, operating
leverage from increased volumes and cost management. The higher
gross margins also resulted in an EBITDA of $17.8 million, compared
to $7.6 million during the same period in 2019.
The Company is pleased to announce that its
board of directors approved an increase in its quarterly dividend
to $0.03 per issued and outstanding common shares, from $0.02 per
share, which equates to an annual dividend of $0.12 per share. The
dividend is payable on April 15, 2021 to shareholders of record on
the close of business on March 31, 2021.
“Our outlook for a sustained economic recovery
is positive, as the globe exits the pandemic and businesses support
an increase in demand for products and services. We will continue
to closely focus on servicing our customers, while aligning our
products and operations to these market needs,” said Remy
Stachowiak, President and COO of Tree Island Steel.
“As our end-markets gradually recover, we are
encouraged by the results in 2020 and cautiously optimistic of
continued improvements in our business,” said Amar S. Doman,
Executive Chair of Tree Island Steel.
RESULTS FROM OPERATIONS |
|
|
|
|
($'000
unless otherwise stated) |
|
|
|
|
|
Three Months
Ended |
Year Ended |
|
December 31, |
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
Revenue |
54,197 |
|
45,144 |
|
215,894 |
|
200,405 |
|
Cost of sales |
(46,105 |
) |
(40,046 |
) |
(184,008 |
) |
(176,407 |
) |
Depreciation |
(1,487 |
) |
(1,616 |
) |
(6,036 |
) |
(6,227 |
) |
Gross profit |
6,605 |
|
3,482 |
|
25,850 |
|
17,771 |
|
Selling, general and administrative expenses |
(3,397 |
) |
(3,967 |
) |
(13,954 |
) |
(15,757 |
) |
Operating income |
3,208 |
|
(485 |
) |
11,896 |
|
2,014 |
|
Foreign exchange gain (loss) |
(226 |
) |
(490 |
) |
(173 |
) |
(676 |
) |
Gain (loss) on property, plant and equipment |
- |
|
5 |
|
5 |
|
5 |
|
Restructuring and other expenses |
(20 |
) |
(1,419 |
) |
(217 |
) |
(1,901 |
) |
Changes in financial liabilities recognized at fair value |
- |
|
(1 |
) |
- |
|
(1 |
) |
Financing expenses |
(590 |
) |
(1,072 |
) |
(4,335 |
) |
(4,662 |
) |
Income (loss) before income taxes |
2,372 |
|
(3,462 |
) |
7,176 |
|
(5,221 |
) |
Income tax recovery (expense) |
(682 |
) |
263 |
|
(2,045 |
) |
31 |
|
Net income (loss) |
1,690 |
|
(3,199 |
) |
5,131 |
|
(5,190 |
) |
|
|
|
|
|
Net income
per share |
0.06 |
|
(0.11 |
) |
0.18 |
|
(0.18 |
) |
Dividends
per share |
0.02 |
|
0.02 |
|
0.08 |
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
|
December
31, |
|
Financial position as at: |
2020 |
|
2019 |
|
Total assets |
|
|
146,549 |
|
159,122 |
|
Total
non‐current financial liabilities |
|
|
71,236 |
|
85,627 |
|
|
|
|
|
|
RESULTS FROM OPERATIONS |
|
|
($'000
unless otherwise states) |
|
|
|
Three Months
Ended |
Year Ended |
|
December 31, |
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
Operating
income (loss) |
3,208 |
|
(485 |
) |
11,896 |
|
2,014 |
|
Add back depreciation |
1,487 |
|
1,616 |
|
6,036 |
|
6,227 |
|
Foreign exchange gain (loss) |
(226 |
) |
(490 |
) |
(173 |
) |
(676 |
) |
EBITDA1 |
4,469 |
|
641 |
|
17,759 |
|
7,565 |
|
1 See definition on EBITDA in Section 2 NON‐IFRS MEASURES of the
December 31, 2020, MD&A. |
|
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 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
ToughPanelTM brand names.
Forward‐Looking Statements
This press release includes forward‐looking
information with respect to Tree Island including its business,
operations and strategies, its dividend policy and the declaration
and payment of dividends thereunder 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
Company’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 COVID‐19 pandemic impact on the
company, 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, transportation costs,
foreign exchange fluctuations, leverage and restrictive covenants,
labour relations, trade actions, dependence on key personnel and
skilled workers, 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.
For further information contact: Ali Mahdavi,
Investor Relations Tree Island Steel(416) 962‐3300e‐mail:
amahdavi@treeisland.com Website: www.treeisland.com
Tree Island Steel (TSX:TSL)
Historical Stock Chart
From Nov 2024 to Dec 2024
Tree Island Steel (TSX:TSL)
Historical Stock Chart
From Dec 2023 to Dec 2024