Mr. Amar Doman reports

DOMAN BUILDING MATERIALS GROUP LTD. ANNOUNCES SECOND QUARTER 2023 FINANCIAL RESULTS

Doman Building Materials Group Ltd. has released its second quarter 2023 financial results for the period ended June 30, 2023.

For the three-month period ended June 30, 2023, consolidated revenues amounted to $710.7-million, compared with $870.7-million in the same period in 2022. The decrease in revenues is largely due to the impact of construction material pricing, which had peaked in the spring for the comparative period in 2022. The company's sales by product group in the period were made up of 77 per cent construction materials, consistent with the same quarter last year, with the remaining balance resulting from specialty and allied products of 20 per cent, and other sources of 3 per cent.

Gross margin dollars were $121.2-million in the three-month period versus $102.7-million in the comparative quarter of 2022. Gross margin percentage increased to 17.0 per cent in the quarter, an improvement from 11.8 per cent achieved in the same quarter of 2022.

EBITDA (earnings before interest, taxes, depreciation and amortization) for the three-month period ended June 30, 2023, amounted to $66.0-million, compared with $52.1-million in the same period in 2022. Net earnings for the quarter were $29.2-million compared with $20.7-million in the same quarter of 2022.

The company declared a 14-cent-per-share quarterly dividend during the second quarter, which was paid on July 14, 2023, to shareholders of record at the close of business on June 30, 2023.

For the six-month period ended June 30, 2023, the company generated EBITDA of $110.8-million on revenues of $1.3-billion. Gross margin and gross margin percentage during the period amounted to $219.4-million and 16.6 per cent, respectively. This compares with 2022 EBITDA of $130.2-million on revenues of $1.7-billion. Gross margin and gross margin percentage during the 2022 period amounted to $235.3-million and 13.7 per cent. Net earnings for the six-month period ended June 30, 2023, were $44.1-million versus $62.8-million in the comparative period of 2022.

"I am very pleased with our financial performance in the second quarter, especially as we continue to work through macroeconomic uncertainties and a tough year-over-year comparative pricing environment," commented Amar S. Doman, chairman of the board. "Gross margin, which is a key financial metric for our performance, came in very strong at 17 per cent as a result of our team's strong inventory management, also helped by somewhat less pricing volatility in the quarter. We are also proud of our ongoing fiscal discipline, which has resulted in material decreases in total loans and borrowings of $137-million and $239-million compared to the periods ended June 30, 2022, and June 30, 2021, respectively."

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 material and related product 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; and 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.

We seek Safe Harbor.