Tree Island Steel Announces Full Year 2023 Results

VANCOUVER, British Columbia, Canada – March 14, 2024 – Tree Island Steel (”Tree Island” or the ”Company”) (TSX: TSL) announced today its financial results for the year ended December 31, 2023.
For the three-month period ended December 31, 2023, revenues, net of freight and distribution, decreased by $19.8 million to $47.3 million, from $67.1 million in the same period in 2022. The reduction was the result of declines in steel prices in the year 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 fourth quarter decreased to $3.4 million, from $8.3 million in the same period in 2022, for the same reasons. Adjusted EBITDA amounted to $0.9 million, compared to $5.7 million during the same period in 2022 from lower gross profit.
For the year ended December 31, 2023, revenues, net of freight and distribution, decreased by $98.9 million to $239.6 million, from $338.4 million in 2022. This decrease is for the same reasons as in the quarter. Gross profit decreased to $30.3 million from $65.3 million, due to lower overall shipped volumes and return of margins to pre-pandemic levels as raw material pricing decreased. This resulted in an Adjusted EBITDA of $21.5 million, compared to $55.9 million during 2022.
“We faced several challenges in the fourth quarter, such as inventory reduction by customers, and lower activity in the construction and agricultural markets. We are cautiously optimistic that demand will recover as customers begin to restock their supplies, although we expect to face ongoing competition from both domestic and foreign sources. We also successfully finished the installation and commissioning of several capital equipment projects that we moved from the Etiwanda facility that will enhance our production capabilities in the coming years.” commented Nancy Davies, Chief Operating Officer of Tree Island Steel.
“We will continue to use our disciplined approach to maximize our operational efficiency and profitability,” said Amar S. Doman, Executive Chair of Tree Island Steel.