Mr. Amar Doman reports

DOMAN BUILDING MATERIALS REPORTS 2023 FINANCIAL RESULTS

Doman Building Materials Group Ltd. has released its fourth quarter and full-year 2023 financial results for the period ended Dec. 31, 2023.

For the year ended Dec. 31, 2023, consolidated revenues were $2.5-billion, compared with $3.0-billion in 2022. The decrease was largely due to the impact of lower construction material pricing, which resulted in lower average pricing for lumber, plywood and OSB during the current year. The company is pleased that while it experienced lower average pricing, this was partially offset by increased unit volumes during 2023. The company's sales by product group in the period were made up of 74 per cent construction materials, compared with 76 per cent last year, with the remaining balance resulting from specialty and allied products of 22 per cent, and forestry and other sources of 4 per cent.

Gross margin dollars were $402.7-million in 2023 versus $408.8-million in 2022. Gross margin percentage was 16.2 per cent during the year, an increase from the 13.5 per cent achieved in 2022, largely due to reduced volatility in construction material pricing.

EBITDA (earnings before interest, taxes, depreciation and amortization) was $196.1-million, compared with $203.2-million in 2022. The company declared a total of 56 cents per share in dividends in 2023, which were unchanged compared with 2022.

For the three-month period ended Dec. 31, 2023, revenues amounted to $527.4-million when compared with $572.9-million in the same period in 2022. The company's sales by product group in the quarter were made up of 72 per cent construction materials, with the remaining balance of sales resulting from specialty and allied products of 24 per cent, and forestry and other of 4 per cent.

Gross margin dollars were $80.6-million in the three-month period versus $82.0-million in the comparative quarter of 2022. Gross margin percentage was 15.3 per cent in the quarter, an increase from 14.3 per cent achieved in the same quarter of 2022.

EBITDA for the three-month period ended Dec. 31, 2023, amounted to $33.2-million, compared with $32.9-million in 2022.

"Despite the impact of significantly lower year-over-year construction materials pricing, our business units continued to show resilience in volumes while delivering very strong gross margin performance," commented Amar S. Doman, chairman of the board. "While there remain macroeconomic uncertainties, on the back of ending 2023 on solid footing, we remain enthusiastic and confident in seizing growth opportunities in our key markets."

Subsequent event -- Southeast Forest Products Treated Ltd. acquisition

On March 1, 2024, the company announced that its wholly owned subsidiary in the United States doing business as Doman Lumber acquired two lumber pressure treating plants, related equipment and business, formerly owned by Southeast Forest Products in Richmond, Ind., and near Birmingham, Ala.

The acquisition was fully financed by Doman's cash on hand, and no shares were issued.

About Doman Building Materials Group Ltd.

Founded in 1989, Doman is headquartered in Vancouver, B.C., and trades on the Toronto Stock Exchange under the symbol DBM.

As Canada's only fully integrated national distributor in the building material and related product sector, Doman operates several distinct divisions with multiple treating plants, planing and specialty facilities, and distribution centres coast to coast in all major cities across Canada and select locations across the United States.

Strategically located across Canada, Doman Building Materials Canada operates distribution centres coast to coast, and Doman Treated Wood Canada operates multiple treating plants near major cities; headquartered in Dallas, Tex., Doman Lumber operates 21 treating plants, two specialty planing mills and five specialty sawmills located in nine states, distributing, producing and treating lumber, fencing and building material servicing the central United States; Doman Building Materials USA and Doman Treated Wood USA serve the U.S. West Coast with multiple locations in California and Oregon; and in the state of Hawaii, the Honsador Building Products Group services 14 locations across all the islands. The company's Canadian operations also include ownership and management of private timberlands and forest licences, and agricultural postpeeling, and pressure treating through its Doman Timber operations.

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