Mr. Amar Doman reports

TREE ISLAND STEEL ANNOUNCES EXECUTIVE APPOINTMENTS AND SECOND QUARTER 2023 RESULTS

Tree Island Steel Ltd. has appointed Nancy Davies as chief operating officer reporting to executive chairman Amar S. Doman, and has appointed Brian Liu as vice-president, finance, and chief financial officer. The company also has released its financial results for the six months ended June 30, 2023.

For the three-month period ended June 30, 2023, revenues decreased by $34.8-million to $63.6-million from $98.4-million in the same period in 2022. The decrease was the result of a reduction in steel pricing, macroeconomic conditions and lower shipped volume from the previously announced closure of its Etiwanda facility. Gross profit for the second quarter decreased to $9.1-million from $21.6-million in the same period in 2022, impacted by lower volumes and return of margins to more historic levels, particularly in the industrial wire products. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) amounted to $6.8-million, compared with $19.3-million during the same period in 2022 from lower gross profit. In the quarter, it also incurred $2.1-million in restructuring costs associated with head count reductions.

For the six months ended June 30, 2023, revenues decreased by $52.3-million to $138.9-million compared with 2022, and gross profit decreased to $20.9-million from $42.4-million. The decrease is for the same factors as in the quarter. This resulted in an adjusted EBITDA of $16.6-million, compared with $38.0-million during the same period in 2022.

In June, 2023, the company completed an early exit of the Etiwanda facility. Relocation of higher performing equipment to other locations was also completed during the quarter. Installation and recommissioning of the relocated equipment are expected to be completed through third quarter 2023.

"I am proud of our employees' commitment and contribution, which enabled us to deliver another positive quarter in a challenging business environment and, in parallel, successfully exit the Etiwanda property early. With the relocation of certain equipment from the Etiwanda facility progressing forward, this will provide further operating leverage in the latter part of 2023," said Nancy Davies, chief operating officer of Tree Island.

"With the reset in steel prices, we continue to closely engage and support our customers in all market segments while prudently monitoring operations," said Amar S. Doman, executive chair of Tree Island.

About Tree Island Steel Ltd.

Tree Island, headquartered in Richmond, B.C., since 1964, through its operating facilities in Canada and the United States, produces wire products for a diverse range of industrial, residential construction, commercial construction and agricultural 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, TI Wire, ToughStrand and ToughPanel brand names.

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