Welcome!

News Feed Item

Tree Island Steel Announces First Quarter 2014 Results

Q1 2014 versus Q1 2013 Financial Highlights(1):

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/13/14 -- Tree Island Steel Ltd. ("Tree Island" or the "Company") (TSX:TSL) announced today its financial results for the three month period ended March 31, 2014(1).

For the three-month period ended March 31, 2014, revenues increased to $45.9 million versus $38.1 million for the same period last year, representing a 20.6% increase. Volumes also increased by 27.3% to 35,136 tons, primarily driven by continued strength and demand in a number of the Company's end-markets. Gross profit continued its upward trend, amounting to $5.3 million, representing a 25.4% improvement when compared to the same period in 2013. Gross margin increased to 11.6% from 11.1%, while gross margin per ton remained relatively unchanged at $151 per ton versus $153 per ton due to increased competition in certain recovering markets. As a result, EBITDA increased by 18% to $2.1 million from $1.8 million during the corresponding period in 2013.

On April 21, 2014, the Company successfully renewed its senior banking facility, on more favorable terms, with Wells Fargo Capital Finance Corporation Canada. The five year secured banking facility ("Senior Credit Facility") has been increased from $40.0 million to $60.0 million and now matures on April 21, 2019. Under the terms of the Senior Credit Facility, up to $60.0 million may be borrowed for the Company's financing requirements.

"2014 has started off strong with what appears to be a sustainable recovery in many of our end-markets, resulting in significant quarter one increases across many of our key financial and operating metrics," said Dale R. MacLean, President and CEO of Tree Island Steel. "Based on the activity level and traffic in our markets and interaction with our customers, we maintain a positive view for the remainder of the year."

"I am pleased with the Company's continued increase in its market share, growing revenues and volumes while remaining extremely focused on profitability," noted Amar S. Doman, Chairman of Tree Island Steel. "The first quarter results are a testament to our focus on profitable growth with revenues, volumes, gross profit, EBITDA and net income showing significant year-over-year improvement."


Summary of Results                             Three Months Ended March 31  
                                                      2014            2013  
($000's except for tonnage and per unit                                     
 amounts)                                                                   
----------------------------------------------------------------------------
Sales Volumes - Tons                                35,136          27,601  
Sales                                      $        45,923   $      38,093  
Cost of sales                                      (39,913)        (33,137) 
Depreciation                                          (698)           (720) 
----------------------------------------------------------------------------
Gross profit                                         5,312           4,236  
Selling, general and administrative                                         
 expenses                                           (3,875)         (3,147) 
----------------------------------------------------------------------------
Operating income                                     1,437           1,089  
  Foreign exchange gain                                524              26  
  Loss on sale of property, plant and                                       
   equipment                                           (10)              -  
  Changes in financial instruments                                          
   recognized at fair value                           (138)             20  
  Financing Expenses                                (1,240)         (1,439) 
----------------------------------------------------------------------------
Income (loss) before income taxes                      573            (304) 
----------------------------------------------------------------------------
  Income tax (expense) recovery                       (212)            167  
----------------------------------------------------------------------------
Net income (loss)                                      361            (137) 
----------------------------------------------------------------------------
                                                                            
Operating income                                     1,437           1,089  
  Add back depreciation                                698             720  
----------------------------------------------------------------------------
EBITDA (a)                                           2,135           1,809  
----------------------------------------------------------------------------
  Foreign exchange gain                                524              26  
----------------------------------------------------------------------------
EBITDA including foreign exchange                    2,659           1,835  
----------------------------------------------------------------------------
                                                                            
Net Income (Loss)                                      361            (137) 
Add back significant non-cash items                                         
Non-cash financing expenses                            263             654  
Changes in financial instruments                                            
 recognized at fair value                              138             (20) 
Deferred tax                                           203            (179) 
----------------------------------------------------------------------------
Adjusted net income a)                                 965             318  
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Per share                                                                   
  Net income (loss) per share - basic                 0.01           (0.01) 
  Net income (loss) per share - diluted               0.01           (0.01) 
----------------------------------------------------------------------------
Per ton                                                                     
  Gross profit per ton                                 151             153  
  EBITDA per ton                                        61              66  
----------------------------------------------------------------------------
                                                                            
                                               As at March           As at  
                                                       31,    December 31,  
Financial position                                    2014            2013  
----------------------------------------------------------------------------
  Total assets                             $       102,940   $      85,635  
  Total non-current financial liabilities  $        13,594   $      13,536  
----------------------------------------------------------------------------
                                                                            
(a) See definition of EBITDA and Adjusted Net Income in footnote 2 to the   
 press release                                                              

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 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 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 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.


(1)  Please refer to our Q1 2014 MD&A for further information.              
(2)  References made above to "EBITDA" are to operating profit plus         
     depreciation and references to "Adjusted Net Income" are to net income 
     per IFRS adjusted for certain non-cash items including non-cash        
     financing expenses, changes in fair value of convertible instruments,  
     and deferred income tax. EBITDA is a measure used by many investors to 
     compare issuers on the basis of ability to generate cash flows from    
     operations. Adjusted Net Income is a measure for investors to          
     understand the impact of significant non-cash items that affect our    
     results from operations. Neither EBITDA nor Adjusted Net Income are    
     earnings measures recognized by IFRS and do not have a standardized    
     meaning prescribed by IFRS. We believe that EBITDA and Adjusted Net    
     Income are important supplemental measure in evaluating the Company's  
     performance. You are cautioned that EBITDA and Adjusted Net Income     
     should not be construed as alternatives to net income or loss,         
     determined in accordance with IFRS, or as indicators of performance.   
     Our method of calculating EBITDA and Adjusted Net Income may differ    
     from methods used by other issuers and, accordingly, our EBITDA or     
     Adjusted Net Income may not be comparable to similar measures presented
     by other issuers.                                                      

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The initial debate is over: Any enterprise with a serious commitment to IT is migrating to the cloud. But things are not so simple. There is a complex mix of on-premises, colocated, and public-cloud deployments. In this power panel at 18th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will look at the present state of cloud from the C-level view, and how great companies and rock star executives can use cloud computing to meet their most ambitious and disruptive business ...
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.