Tree Island Steel Ltd. announced Thursday its financial results for the three and twelve month periods ended December 31, 2014.
For the three-month period ended December 31, 2014, revenues increased by 18.2 percent to $42.3 million versus $35.7 million for the same period last year. Volumes also increased by 16.9 percent to 31,910 tons, primarily due to robust and increasing demand in major US markets as well as the Company's strategy to expand its reach and sales network into new growth markets. Gross profit and EBITDA for the period amounted to $4.2 million and $1.2 million versus $3.8 million and $1.0 million, respectively, during the corresponding period last year.
In a statement, the company commented: “Throughout 2014 pricing pressure from both domestic and international competitors depressed overall prices for the products we sold. Nonetheless, we were able to capitalize on our advantages and implement appropriate strategies to record year-over-year growth of 23.4 percent in volume and 19.9 percent in revenues for the twelve month period ended December 31, 2014. Revenues for the year amounted to $183.9 million on 139,935 tons. Various factors have contributed to the growth, including increased demand in some of our end markets (particularly in the United States), our efforts to capitalize on our relationships with existing customers, developing new customer relationships and expanding the Company's geographic reach. As a result of the higher sales, gross profit in 2014 increased by 11.7 percent to $19.3 million and EBITDA grew by 9.1 percent to $8.0 million. The pace of growth of the business in 2014 required non-recurring investments in capital and staffing, resulting in gross profit and EBITDA for the year growing at a slower pace than volume and revenues.”