Tree Island Steel Ltd. announced today its financial results for the three and twelve month periods ended December 31, 2014.
For the three-month period ended December 31, 2014, revenues increased by 18.2 percent to $42.3 million versus $35.7 million for the same period last year. Volumes also increased by 16.9 percent to 31,910 tons, primarily due to robust and increasing demand in major US markets as well as the Company's strategy to expand its reach and sales network into new growth markets. Gross profit and EBITDA for the period amounted to $4.2 million and $1.2 million versus $3.8 million and $1.0 million, respectively, during the corresponding period last year.
Throughout 2014 pricing pressure from both domestic and international competitors depressed overall prices for the products we sold. Nonetheless, we were able to capitalize on our advantages and implement appropriate strategies to record year-over-year growth of 23.4 percent in volume and 19.9 percent in revenues for the twelve month period ended December 31, 2014. Revenues for the year amounted to $183.9 million on 139,935 tons. Various factors have contributed to the growth, including increased demand in some of our end markets (particularly in the United States), our efforts to capitalize on our relationships with existing customers, developing new customer relationships and expanding the Company's geographic reach. As a result of the higher sales, gross profit in 2014 increased by 11.7 percent to $19.3 million and EBITDA grew by 9.1 percent to $8.0 million. The pace of growth of the business in 2014 required non-recurring investments in capital and staffing, resulting in gross profit and EBITDA for the year growing at a slower pace than volume and revenues.
"2014 was an exciting year as it marked the Company's 50th anniversary and we also saw the results of our hard work and strategy being reflected in the growth of our business. The fourth quarter results continued the strong growth trend of the previous three quarters. The benefits associated with the investments we made in equipment and staffing earlier in 2014 showed up in the latter part of the year," said Dale R. Maclean, President and CEO of Tree Island Steel. "For 2015, we will continue to adapt our business strategy as appropriate to ensure we continue to capitalize on market opportunities and our competitive advantages so as to continue growing our business and maximize profitability."
"Despite market pressures driven by strong domestic and international competition, we are very pleased with the Company's ability to increase revenues, volumes and overall profitability in 2014," noted Amar S. Doman, Chairman of Tree Island Steel. "Our financial performance in 2014 is evidence that the actions taken by the Company to enable profitable growth and increase shareholder value have taken hold and are working well."
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.
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