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VANCOUVER, British Columbia, Canada – July 27, 2022 – Tree Island Steel (”Tree Island” or the ”Company”) (TSX: TSL) announced today its financial results for the six months ended June 30, 2022.
For the three-month period ended June 30, 2022, revenues increased by $24.0 million to $98.4 million with pricing increases across all market segments. Gross profit for the second quarter increased to $21.6 million, from $16.8 million in the same period in 2021. Adjusted EBITDA amounted to $19.3 million, compared to $14.7 million during the same period in 2021.
For the six months ended June 30, 2022, revenues increased by $49.9 million to $191.1 million when compared to 2021. The increase is primarily due to pricing increases across all market segments. Gross profit increased to $42.4 million from $29.5 million. The higher gross margins also resulted in an Adjusted EBITDA of $38.0 million, compared to $25.4 million during the same period in 2021.
In the second quarter of 2022, we continued to experience commercial construction demand strength over prior year second quarter. Shipments of a variety of agricultural products, also experienced growth over prior year second quarter, driven particularly by ongoing Canadian market demand. Combined with industrial wire sales, overall Canadian volume showed growth across our market segments in the quarter.
“Selling prices were higher in the quarter, recovering inflationary cost increases in our raw materials, freight, labour and utilities. We are cautious in our views on the steel wire and wire product outlook from current volatility in economic conditions. We are closely monitoring future demand with the goal of maintaining a close alignment between raw materials purchases and inventory positions, “ said Remy Stachowiak, President and COO of Tree Island Steel.
On July 27, 2022, the Board of Directors has declared a regular quarterly dividend of $0.03 per share and an additional $0.02 per share as a special dividend, on the issued and outstanding Common Shares of the Company, both payable on October 14, 2022, to holders of record at the close of business on September 30, 2022.
“With the rapidly changing cost environment and ongoing labour constraints, we will continue to ensure our financial position is managed through these volatile market conditions, “ said Amar S. Doman, Executive Chair of Tree Island Steel.