Ms. Nancy Davies reports

TREE ISLAND STEEL ANNOUNCES FULL YEAR 2023 RESULTS

Tree Island Steel Ltd. has released its financial results for the year ended Dec. 31, 2023.

For the three-month period ended Dec. 31, 2023, revenues, net of freight and distribution, decreased by $19.8-million to $47.3-million, from $67.1-million in the same period in 2022. The reduction was the result of declines in steel prices in the year, influencing market prices for the company's products, current market headwinds and lower shipped volume from the previously announced closure of the Etiwanda facility. Gross profit for the fourth quarter decreased to $3.4-million, from $8.3-million in the same period in 2022, for the same reasons. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) amounted to $900,000, compared with $5.7-million during the same period in 2022 from lower gross profit.

For the year ended Dec. 31, 2023, revenues, net of freight and distribution, decreased by $98.9-million to $239.6-million, from $338.4-million in 2022. This decrease is for the same reasons as in the quarter. Gross profit decreased to $30.3-million from $65.3-million, due to lower overall shipped volumes and return of margins to prepandemic levels as raw material pricing decreased. This resulted in an adjusted EBITDA of $21.5-million, compared with $55.9-million during 2022.

"We faced several challenges in the fourth quarter, such as inventory reduction by customers and lower activity in the construction and agricultural markets. We are cautiously optimistic that demand will recover as customers begin to restock their supplies, although we expect to face ongoing competition from both domestic and foreign sources. We also successfully finished the installation and commissioning of several capital equipment projects that we moved from the Etiwanda facility that will enhance our production capabilities in the coming years," commented Nancy Davies, chief operating officer of Tree Island Steel.

"We will continue to use our disciplined approach to maximize our operational efficiency and profitability," said Amar S. Doman, executive chair 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; and 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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