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.

Contacts:
Tree Island Steel Ltd.
Ali Mahdavi
Investor Relations
(416) 962-3300 or +1(866) 430-6247
[email protected]
www.treeisland.com

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
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
"As we've gone out into the public cloud we've seen that over time we may have lost a few things - we've lost control, we've given up cost to a certain extent, and then security, flexibility," explained Steve Conner, VP of Sales at Cloudistics,in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, described how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launching ...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
"Since we launched LinuxONE we learned a lot from our customers. More than anything what they responded to were some very unique security capabilities that we have," explained Mark Figley, Director of LinuxONE Offerings at IBM, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, answered these questions and demonstrated techniques for implementing advanced scheduling. For example, using spot instances and co...
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, whic...
Sanjeev Sharma Joins June 5-7, 2018 @DevOpsSummit at @Cloud Expo New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.