Mr. Amar Doman reports

DOMAN BUILDING MATERIALS REPORTS FIRST QUARTER 2023 FINANCIAL RESULTS

Doman Building Materials Group Ltd. has released its first quarter 2023 financial results for the period ended March 31, 2023.

Q1 2023 financial highlights:

• Revenues of $609.1-million;
• Gross margin at 16.1 per cent;
• EBITDA (earnings before interest, taxes, depreciation and amortization) amounted to $44.8-million;
• Net earnings amounted to $14.9-million;
• Quarterly dividend of 14 cents per share declared.

For the three-month period ended March 31, 2023, consolidated revenues amounted to $609.1-million, compared with $851.3-million in the same period in 2022. The decrease in revenues is largely due to the impact of construction materials pricing, which peaked in the comparative period in 2022. The company's sales by product group in the period were made up of 75 per cent construction materials, compared with 81 per cent last year, with the remaining balance resulting from specialty and allied products of 21 per cent, and other of 4 per cent.

Gross margin dollars were $98.2-million in the three-month period, versus $132.6-million in the comparative quarter of 2022. Gross margin percentage increased to 16.1 per cent in the quarter, an improvement from 15.6 per cent achieved in the same quarter of 2022.

EBITDA for the three-month period ended March 31, 2023, amounted to $44.8-million, compared with $78.1-million in the same period in 2022.

The company declared a 14-cent-per-share quarterly dividend during the first quarter, which was paid on April 14, 2023, to shareholders of record at the close of business on March 31, 2023.

"Despite the impact of a highly volatile pricing environment during the past year and overall lower wood products pricing on a year-over-year basis, we are pleased with the continued level of activity in our key markets and the strength in our gross margin," commented Amar S. Doman, chairman of the board. "We continue to see reasonable demand, along with price volatility in certain categories, which is familiar territory for our team as we remain focused on growth and overall cost management."

About Doman Building Materials Group Ltd.

Doman is headquartered in Vancouver, B.C., trades on the Toronto Stock Exchange under the symbol DBM, is a leading North American distributor of building materials, and is Canada's only fully integrated national distributor in the building materials and related products sector. Doman operates several distinct divisions: CanWel Building Materials, with multiple treating plant, planing facilities and distribution centres coast-to-coast in all major cities and strategic locations across Canada; founded in 1959, Hixson Lumber Company in the central United States, with 19 treating plants, two specialty planing mills and five specialty sawmills located in eight states, headquartered in Dallas, Tex., distributing, producing and treating lumber, fencing and building materials; California Cascade in the Western United States near Portland, Ore., and San Francisco and Los Angeles, Calif., with treating facilities and distribution of building materials, lumber and renovation products; founded in 1935, the Honsador Building Products Group in 14 locations in the state of Hawaii, with treating facilities, truss plants, and distribution of a wide range of building materials, lumber, renovation and electrical products. The company's operations also include timber ownership and management of private timberlands and forest licences, and agricultural postpeeling and pressure treating through its fibre division.

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