Click here to close now.

SYS-CON MEDIA Authors: Plutora Blog, Pat Romanski, Jason Bloomberg, Liz McMillan, Elizabeth White

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
Software development, like manufacturing, is a craft that requires the application of creative approaches to solve problems given a wide range of constraints. However, while engineering design may be craftwork, the production of most designed objects relies on a standardized and automated manufacturing process. By contrast, much of moving an application from prototype to production and, indeed, maintaining the application through its lifecycle has often remained craftwork. In his session at Dev...
Software Development Solution category in The 2015 American Business Awards, and will ultimately be a Gold, Silver, or Bronze Stevie® Award winner in the program. More than 3,300 nominations from organizations of all sizes and in virtually every industry were submitted this year for consideration. "We are honored to be recognized as a leader in the software development industry by the Stevie Awards judges," said Steve Brodie, CEO of Electric Cloud. "We introduced ElectricFlow and our Deploy app...
SYS-CON Events announced today that DragonGlass, an enterprise search platform, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data...
Amazon, Google and Facebook are household names in part because of their mastery of Big Data. But what about organizations without billions of dollars to spend on Big Data tools - how can they extract value from their data? In his session at 6th Big Data Expo®, Ali Ghodsi, Co-Founder and Head of Engineering at Databricks, discussed how the zero management cost and scalability of the cloud is addressing the challenges and pain points that data engineers face when working with Big Data. He also s...
Container frameworks, such as Docker, provide a variety of benefits, including density of deployment across infrastructure, convenience for application developers to push updates with low operational hand-holding, and a fairly well-defined deployment workflow that can be orchestrated. Container frameworks also enable a DevOps approach to application development by cleanly separating concerns between operations and development teams. But running multi-container, multi-server apps with containers ...
While there are hundreds of public and private cloud hosting providers to choose from, not all clouds are created equal. If you’re seeking to host enterprise-level mission-critical applications, where Cloud Security is a primary concern, WHOA.com is setting new standards for cloud hosting, and has established itself as a major contender in the marketplace. We are constantly seeking ways to innovate and leverage state-of-the-art technologies. In his session at 16th Cloud Expo, Mike Rivera, Seni...
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will addresses this very serious issue o...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session a...
SYS-CON Events announced today that EnterpriseDB (EDB), the leading worldwide provider of enterprise-class Postgres products and database compatibility solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. EDB is the largest provider of Postgres software and services that provides enterprise-class performance and scalability and the open source freedom to divert budget from more costly traditiona...
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager – Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, will review next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discuss how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Speaker Bios Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has b...
EMC Corporation on Tuesday announced it has entered into a definitive agreement to acquire privately held Virtustream. When the transaction closes, Virtustream will form EMC’s new managed cloud services business. The acquisition represents a transformational element of EMC’s strategy to help customers move all applications to cloud-based IT environments. With the addition of Virtustream, EMC completes the industry’s most comprehensive hybrid cloud portfolio to support all applications, all workl...
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between confe...