Tree Island Steel Announces Third Quarter 2023 Results

VANCOUVER, British Columbia, Canada – November 9, 2023 – Tree Island Steel (”Tree Island” or the ”Company”) (TSX: TSL) announced today its financial results for the nine months ended September 30, 2023.

For the three-month period ended September 30, 2023, revenues decreased by $26.8 million to $53.4 million from $80.2 million in the same period in 2022. The reduction was the result of declines in steel prices in the quarter influencing market prices for our products, current market headwinds, and lower shipped volume from the previously announced closure of our Etiwanda facility. Gross profit for the third quarter decreased to $6.0 million, from $14.6 million in the same period in 2022, for the same reasons. Adjusted EBITDA amounted to $4.1 million, compared to $12.2 million during the same period in 2022 from lower gross profit.

For the nine months ended September 30, 2023, revenues decreased by $79.1 million to $192.2 million compared to 2022 and gross profit decreased to $26.9 million from $57.0 million. The decrease is for the same factors as in the quarter. This resulted in an Adjusted EBITDA of $20.6 million, compared to $50.3 million during the same period in 2022.

“In the past three months our company’s performance was influenced by declining worldwide steel prices resulting in lower sales prices from our facilities. With the uncertainty in the market, we will remain prudent in managing our inventory and costs,” said Nancy Davies, Chief Operating Officer of Tree Island Steel.

“Amid challenging macroeconomic conditions, we will continue to focus on our operational strengths, delivering quality products to our customers and maintaining the strength of our balance sheet,” said Amar S. Doman, Executive Chairman of Tree Island Steel.