Doman Building Materials Group Ltd. Announces First Quarter 2024 Financial Results

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Q1 2024 Financial Highlights⁽¹⁾:

• Revenues of $602.5 million
• Gross Margin at 16.7%
• Adjusted EBITDA⁽²⁾⁽³⁾ amounted to $45.6 million
• Net Earnings amounted to $14.4 million
• Quarterly dividend of $0.14 per share declared⁽⁴⁾

VANCOUVER, British Columbia, May 09, 2024 (GLOBE NEWSWIRE) -- Doman Building Materials Group Ltd. (“Doman” or “the Company”) (TSX:DBM) announced today its financial results for the quarter ended March 31, 2024⁽¹⁾.

For the three-month period ended March 31, 2024⁽¹⁾, consolidated revenues decreased by 1.1% to $602.5 million, compared to $609.1 million in 2023. The decrease was due to the impact of a slighty slowing construction materials market, combined with declining pricing in all species. The Company reported that this lower demand was partially offset by the results from the Southeast Acquisition⁽⁵⁾. The Company’s sales by product group in the period were made up of 76% construction materials, compared to 75% last year, with the remaining balance resulting from specialty and allied products of 20%, and other of 4%.

Gross margin dollars increased to $100.4 million in 2024, versus $98.2 million in 2023. Gross margin percentage was 16.7% during the first quarter of 2024, an increase from the 16.1% achieved in 2023.

EBITDA⁽²⁾ and Adjusted EBITDA⁽³⁾ for the first quarter of 2024 amounted to $44.8 million and $45.6 million, respectively, compared to EBITDA of $33.2 million during the same period in 2023. Adjusted EBITDA in the first quarter of 2024 included $817,000 in acquisition related costs. Net earnings for the three-month period ended March 31, 2024, were $14.4 million versus $14.9 million in the comparative period of 2023. Net earnings for the first quarter of 2024 were impacted by the previously discussed acquisition related costs. Adjusted net earnings before these non-recurring costs were $15.0 million.

The Company declared a dividend of $0.14 per share⁽³⁾ in in the quarter, which was unchanged compared to 2023.

“Despite continued price erosion for most lumber product categories, the year is off to a good start with revenues nearly in-line with last year’s Q1 period," commented Amar S. Doman, Chairman of the Board. "Our inventory management and operating discipline continued to strengthen our gross marign and balance sheet. I would also like to welcome the employees of our Southeast acquisition, which is now integrated into our Doman Lumber division.”