year-end results and q4 - not bad FY 2017 Financial Highlights Revenues increased to $234.7 million Gross profit at $18.2 million EBITDA at $7.0 million
Tree Island Steel Ltd. ("Tree Island" or the "Company") (TSX:TSL) announced today its financial results for the three months and year ended December 31, 2017.
For the three-month period ended December 31, 2017, revenues were $54.6 million versus $45.9 million during the corresponding period in 2016, an increase of 18.9%. Gross profit for the three months was $2.5 million versus $5.3 million during the corresponding period in 2016. Gross margin for the quarter was 4.5% compared to 11.5% during the same period in 2016. EBITDA amounted to $1.9 million, compared to $1.0 million during the fourth quarter of 2016. Gross profit were negatively impacted on a comparative basis due to the industry wide margin compression associated with rising input costs and the slower pace of the increase of the market prices of finished goods in the markets we serve.
For the year ended December 31, 2017, revenues amounted to $234.7 million, an increase of 1.5% when compared to 2016, despite the divestiture of the Stainless product lines at the end of Q3 2016 (the Stainless product lines accounted for $14.0 million or 6% of revenues in 2016). Gross profit and EBITDA for the year amounted to $18.2 million and $7.0 million, respectively, compared to $37.4 million and $21.0 million during the same year ended period in 2016.
"In spite of the divestiture of the Stainless product lines at the end of Q3, 2016 we were still able to increase the volume of shipments in 2017, with revenues increasing by $3.5 million," noted Dale R. MacLean, President and CEO of Tree Island Steel Ltd. "However, overall market conditions remained challenging, largely brought about by the inability of the market prices of the finished goods we produce to keep pace with the increase in raw material prices throughout the year. Pricing discipline continues to be a key component of our strategy as we continue to seek to be the premier supplier to our customers while continuing to create value for our shareholders."
"The Company has implemented a solid foundation to compete effectively even during cyclical periods when macro trends may not be favourable," said Amar S. Doman, Chairman of Tree Island Steel Ltd. "We are confident the strength of Tree Island's business model along with the pro-active actions taken by management will continue to steer the company towards our long-term goals."