VANCOUVER, British Columbia, March 13, 2025 (GLOBE NEWSWIRE) -- Tree Island Steel (''Tree Island'' or the ''Company'') (TSX: TSL) announced today its financial results for the year ended December 31, 2024.
For the three-month period ended December 31, 2024, revenues, net of freight and distribution, decreased by $2.5 million to $44.8 million, from $47.3 million in the same period in 2023. The largest drivers for the decreased earnings are the lower average selling prices and the narrowing of margins between selling prices and raw material costs. This was due to competitive pricing pressures across our market segments especially in the residential and industrial segments and led by aggressive import pricing. Gross profit for the fourth quarter decreased to $0.3 million, from $3.4 million in the same period in 2023, for the same reasons. Adjusted EBITDA amounted to negative $1.6 million, compared to $0.9 million during the same period in 2023 from lower gross profit.
For the year ended December 31, 2024, revenues, net of freight and distribution, decreased by $32.6 million to $207.0 million, from $239.6 million in 2023 and gross profit decreased to $11.8 million from $30.3 million. The decrease is due to the same factors noted in the quarter. This resulted in an Adjusted EBITDA of $4.4 million, compared to $21.5 million during 2023.
"In the past three months we have continued to face uncertainty in the market. Generally slower demand from our customers and pricing pressures from competitors continued to impact average selling prices. The inclusion of Canada in the updated US Section 232 Steel and Aluminum tariffs and any other potential tariffs affecting our U.S. exports also add further uncertainty. We are committed to manage our costs and leverage our operational capabilities on both sides of the border to navigate the challenging economic and trade environment," commented Nancy Davies, Chief Operating Officer of Tree Island Steel.
Given the economic uncertainty, the Board of Directors has decided to reduce the quarterly dividend by 50% to $0.015 per share, on the issued and outstanding Common Shares of the Company, payable on April 15, 2025, to holders of record at the close of business on March 31, 2025.
| RESULTS FROM OPERATIONS | ||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||
| ($'000 unless otherwise stated) | December 31, | December 31, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenue | 47,856 | 50,635 | 221,111 | 254,572 | ||||||||||
| Freight and distribution costs | (3,018 | ) | (3,291 | ) | (14,120 | ) | (15,001 | ) | ||||||
| Subtotal | 44,838 | 47,344 | 206,991 | 239,571 | ||||||||||
| Cost of sales | (43,134 | ) | (42,684 | ) | (189,733 | ) | (204,261 | ) | ||||||
| Depreciation | (1,406 | ) | (1,273 | ) | (5,473 | ) | (5,019 | ) | ||||||
| Gross profit | 298 | 3,387 | 11,785 | 30,291 | ||||||||||
| Selling, general and administrative expenses | (3,455 | ) | (3,539 | ) | (13,474 | ) | (13,588 | ) | ||||||
| Operating income (loss) | (3,157 | ) | (152 | ) | (1,689 | ) | 16,703 | |||||||
| Foreign exchange gain (loss) | 163 | (261 | ) | 658 | (222 | ) | ||||||||
| Gain (loss) on property, plant and equipment sale | 7 | (183 | ) | 7 | (287 | ) | ||||||||
| Site closure costs | - | - | - | (1,340 | ) | |||||||||
| Interest income | 36 | 217 | 452 | 763 | ||||||||||
| Financing expenses | (533 | ) | (425 | ) | (2,321 | ) | (1,817 | ) | ||||||
| Reorganization costs | - | (197 | ) | (44 | ) | (2,293 | ) | |||||||
| Income (loss) before income taxes | (3,484 | ) | (1,001 | ) | (2,937 | ) | 11,507 | |||||||
| Income tax (expense) recovery | 185 | (895 | ) | (973 | ) | (3,959 | ) | |||||||
| Net income (loss) | (3,299 | ) | (1,896 | ) | (3,910 | ) | 7,548 | |||||||
| Net income (loss) per share | (0.13 | ) | (0.07 | ) | (0.15 | ) | 0.27 | |||||||
| Dividends per share | 0.03 | 0.03 | 0.12 | 0.16 | ||||||||||
| December 31, | December 31, | |||||||||||||
| Financial position as at: | 2024 | 2023 | ||||||||||||
| Total assets | 168,817 | 172,483 | ||||||||||||
| Total non-current financial liabilities | 31,246 | 28,439 | ||||||||||||
| Adjusted EBITDA | ||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||
| ($'000 unless otherwise stated) | December 31, | December 31, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Operating income (Loss) | (3,157 | ) | (152 | ) | (1,689 | ) | 16,703 | |||||||
| Add back depreciation | 1,406 | 1,273 | 5,473 | 5,019 | ||||||||||
| Foreign exchange (loss) gain | 163 | (261 | ) | 658 | (222 | ) | ||||||||
| Adjusted EBITDA1 | (1,588 | ) | 860 | 4,442 | 21,500 | |||||||||
| 1See definition on Adjusted EBITDA in Section 2 NON-IFRS MEASURES of the December 31, 2024, MD&A. | ||||||||||||||
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.
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 sta