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VANCOUVER, British Columbia, Canada ‐ May 4, 2022 ‐ Tree Island Steel (”Tree Island” or the ”Company”) (TSX: TSL) announced today its financial results for the three months ended March 31, 2022.
For the three‐month period ended March 31, 2022, revenues increased by $25.9 million to $92.7 million as pricing increases across all market segments allowed us to recover escalating costs. Gross profit for the first quarter increased to $20.8 million, from $12.6 million in the same period in 2021. Adjusted EBITDA amounted to $18.8 million, compared to $10.7 million during the same period in 2021.
Inflationary cost increases continued in the quarter, led by key raw materials, namely steel wire rod and zinc, as well as freight, labour and utilities. Increased selling prices recovered these costs in the period. Given the significant and ongoing escalation in costs, we continue to closely manage inventory positions and raw materials purchases.
“In the first quarter, we continued to experience increased demand strength in commercial construction activities in both Canada and the United States, as we supported multiple projects with our concrete reinforcing products. Stable demand has been seen in our other market segments of agriculture, residential construction and industrial wire, as we additionally balanced availability of raw materials and labour to support customer delivery needs,” said Remy Stachowiak, President and COO of Tree Island Steel.
“Results in the first quarter were very positive, despite the continued inflationary cost environment and ongoing constraints with supply chain and labour. We are closely managing our financial position through this volatile market, “ said Amar S. Doman, Executive Chair of Tree Island Steel.