Mr. Amar Doman reports

TREE ISLAND STEEL ANNOUNCES THIRD QUARTER 2023 RESULTS

Tree Island Steel today released its financial results for the nine months ended Sept. 30, 2023.

For the three-month period ended Sept. 30, 2023, revenues decreased by $26.8-million to $53.4-million from $80.2-million in the same period in 2022. The reduction was the result of declines in steel prices in the quarter influencing market prices for the company's products, current market headwinds and lower shipped volume from the previously announced closure of Tree Island's Etiwanda facility. Gross profit for the third quarter decreased to $6.0-million, from $14.6-million in the same period in 2022, for the same reasons. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) amounted to $4.1-million, compared with $12.2-million during the same period in 2022 from lower gross profit.

For the nine months ended Sept. 30, 2023, revenues decreased by $79.1-million to $192.2-million compared with 2022 and gross profit decreased to $26.9-million from $57.0-million. The decrease is for the same factors as in the quarter. This resulted in an adjusted EBITDA of $20.6-million, compared with $50.3-million during the same period in 2022.

"In the past three months our company's performance was influenced by declining worldwide steel prices resulting in lower sales prices from our facilities. With the uncertainty in the market, we will remain prudent in managing our inventory and costs," said Nancy Davies, chief operating officer of Tree Island Steel.

"Amid challenging macroeconomic conditions, we will continue to focus on our operational strengths, delivering quality products to our customers and maintaining the strength of our balance sheet," said Amar S. Doman, executive chairman of Tree Island Steel.

About Tree Island Steel Ltd.

Tree Island Steel, 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, Tough Strand and ToughPanel brand names.

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