Increases Quarterly Dividend & Announces 3rd Quarter Results NOT FOR RELEASE OR DISSEMINATION INTO THE UNITED STATES
Q3 2021 Financial Highlights(1):
- Revenues increased 32.4% to $625.3 million
- Gross Margin at 12.9%
- Adjusted EBITDA(3) amounted to $34.5 million
- Net Earnings amounted to $7.7 million
- Quarterly dividend of $0.12 per share paid on October 15, 2021(4) and the Board of Directors increases quarterly dividend to $0.14 per share effective the fourth quarter of 2021
VANCOUVER, British Columbia, Nov. 04, 2021 (GLOBE NEWSWIRE) -- Doman Building Materials Group Ltd. (“Doman” or “the Company”) (TSX:DBM; DBM.NT.A) announced today its third quarter 2021 financial results(1) for the period ended September 30, 2021.
For the three-month period ended September 30, 2021(1), consolidated revenues increased by 32.4% to $625.3 million when compared to $472.2 million in the same period in 2020. The increase in revenues was largely due to the results from acquisitions which was partially offset by a decrease attributable to the Company’s legacy operations, caused by industry-wide declines in pricing for construction materials during the quarter. The Company’s sales by product group in the quarter were made up of 66% construction materials, compared to 65% last year, with the remaining balance resulting from specialty and allied products of 30%, and other of 4%.
Gross margin dollars totaled $80.7 million, compared to $86.8 million during the corresponding period in 2020. Gross margin percentage amounted to 12.9% of revenues versus 18.4% during the same period in 2020. The decrease in margin dollars and margin percentage is mainly attributable to the previously mentioned decline in construction materials pricing, which was partially offset by the results from the acquisitions.
Adjusted EBITDA(3) and EBITDA(2) for the period amounted to $34.5 million and $33.2 million, respectively, compared to $57.0 million during the third quarter of 2020. Net earnings for the quarter ended September 30, 2021 were $7.7 million, compared to net earnings of $31.0 million in the same quarter of 2020.
Subsequent to quarter-end, on October 15, 2021, the Company paid a $0.12 per share dividend to its shareholders of record on September 30, 2021(4).
The Company is pleased to announce that reflecting its confidence in the performance of the business, the Board of Directors is increasing the Company’s quarterly dividend to $0.14 per share starting in the fourth quarter of 2021, which dividend will be paid on January 14, 2022, to shareholders of record on December 31, 2021. This marks the Company’s 47th consecutive quarter of paying a dividend as a corporation.
For the nine-month period ended September 30, 2021(1), the Company generated Adjusted EBITDA and EBITDA of $188.6 million and $183.7 million, respectively, on revenues of $1.9 billion. Gross margin and gross margin percentage during the period amounted to $302.3 million, and 15.9%, respectively. This compares to 2020 EBITDA and Adjusted EBITDA of $106.4 million, on revenues of $1.2 billion. Gross margin and gross margin percentage during the 2020 period amounted to $189.2 million and 15.6%. Net earnings for the nine-month period ended September 30, 2021 were $94.9 million versus $44.6 million in the comparative period of 2020.
“I am pleased with how our growth strategy continues to unfold, resulting in record sales in the quarter. For most of the third quarter, we continued to work through the downward commodity pricing pressures which were seen industry-wide, while remaining focused on margin protection as we worked through our inventories," commented Amar S. Doman, Chairman of the Board. "With pricing stabilizing late in the third quarter, we are optimistic that the above average volatility we have experienced in recent months may be behind us, which will enable us to leverage our top line growth, economies of scale and stabilize margins at our target levels in the coming quarters.”
https://www.globenewswire.com/news-release/2021/11/04/2328132/0/en/Doman-Building-Materials-Group-Ltd-Increases-Quarterly-Dividend-and-Announces-Third-Quarter-2021-Financial-Results.html