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

Revenues of $689.8 million

Gross Margin at 15.7%

Adjusted EBITDA⁽³⁾ amounted to $50.6 million

Net Earnings amounted to $17.0 million

Quarterly dividend of $0.14 per share declared⁽⁴⁾

Doman Building Materials Group Ltd. (“Doman” or “the Company”) announced today its second quarter 2024 financial results⁽¹⁾ for the period ended June 30, 2024.

For the three-month period ended June 30, 2024⁽¹⁾, consolidated revenues decreased 2.9% to $689.8 million, compared to $710.7 million in 2023. The decrease was largely due to the impact of a slowing in the construction materials market. The Company is pleased that although it experienced lower average pricing, this was partially offset by the results from the Southeast Acquisition. The Company’s sales by product group in the period were made up of 76% construction materials, compared to 77% last year, with the remaining balance resulting from specialty and allied products of 20%, and other of 4%.

Gross margin dollars decreased to $108.1 million in the three-month period, versus $121.2 million in the comparative period in 2023. Gross margin percentage was 15.7% during the second quarter of 2024, a decrease from the 17.0% achieved in the same quarter of 2023.

As a result, EBITDA⁽²⁾ and Adjusted EBITDA⁽³⁾ for the second quarter of 2024 amounted to $50.2 million and $50.6 million, respectively, compared to EBITDA of $66.0 million during the same period in 2023. Adjusted EBITDA in the second quarter of 2024 included $371,000 in non-recurring acquisition related costs. Net earnings for the three-month period ended June 30, 2024, were $17.0 million versus $29.2 million in the comparative period of 2023.

The Company declared a $0.14 per share⁽⁴⁾ dividend during the second quarter, which was paid on July 12, 2024, to shareholders of record at the close of business on June 28, 2024.

For the six-month period ended June 30, 2024⁽¹⁾, the Company generated EBITDA and Adjusted EBITDA of $95.0 million and $96.2 million, respectively, on revenues of $1.29 billion. Gross margin and gross margin percentage during the period amounted to $208.5 million, and 16.1%, respectively. This compares to 2023 EBITDA of $110.8 million, on revenues of $1.32 billion. Gross margin and gross margin percentage during the 2023 period amounted to $219.4 million and 16.6%. Net earnings for the six-month period ended June 30, 2024, were $31.4 million versus $44.1 million in the comparative period of 2023.

“I am pleased with our financial performance during a period when we continue to operate in a market with significant volatility in general activity, and lower average pricing when compared to the comparative period last year,” commented Amar S. Doman, Chairman of the Board. “We continued to tightly manage inventory levels and maintain a fairly robust gross margin level during what I would consider a challenging period in the industry.”

For the full second quarter results, click here.

⁽¹⁾ Please refer to our Q2 2024 MD&A and Financial Statements for further information. Our Q2 2024 Financial Statements filings are reported under International Financial Reporting Standards (“IFRS”).

⁽²⁾ In the discussion, reference is made to EBITDA, which represents earnings from continuing operations before interest, including amortization of deferred financing costs, provision for income taxes, depreciation, and amortization. This is not a generally accepted earnings measure under IFRS and does not have a standardized meaning under IFRS, and therefore the measure as calculated by Doman may not be comparable to similarly titled measures reported by other companies. EBITDA is presented as we believe it is a useful indicator of a company’s ability to meet debt service and capital expenditure requirements and because we interpret trends in EBITDA as an indicator of relative operating performance. EBITDA should not be considered by an investor as an alternative to net earnings or cash flows as determined in accordance with IFRS. For a reconciliation of EBITDA to the most directly comparable measures calculated in accordance with IFRS refer to “Reconciliation of Net Earnings to Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) and Adjusted EBITDA”.

⁽³⁾ In the discussion, reference is made to Adjusted EBITDA, which is EBITDA as defined above, before certain non-recurring or unusual items. This is not a generally accepted earnings measure under IFRS and does not have a standardized meaning under IFRS. The measure as calculated by Doman may not be comparable to similarly-titled measures reported by other companies. Adjusted EBITDA is presented as we believe it is a useful indicator of Doman’s ability to meet debt service and capital expenditure requirements from its regular business before non-recurring items. Adjusted EBITDA should not be considered by an investor as an alternative to net earnings or cash flows as determined in accordance with IFRS. For a reconciliation from Adjusted EBITDA to the most directly comparable measures calculated in accordance with IFRS refer to “Reconciliation of Net Earnings to Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) and Adjusted EBITDA”.

⁽⁴⁾ On June 14, 2024, Doman declared a quarterly dividend of $0.14 per share, which was paid on July 12, 2024, to shareholders of record on June 28, 2024. Please refer to our Q2 2024 MD&A and Financial Statements for more information.

About Doman Building Materials Group Ltd.

Founded in 1989, Doman is headquartered in Vancouver, British Columbia, and trades on the Toronto Stock Exchange under the symbol DBM. As Canada’s only fully integrated national distributor in the building materials and related products sector, Doman operates several distinct divisions with multiple treating plants, planing and specialty facilities and distribution centres coast-to-coast in all major cities across Canada and select locations across the United States. Strategically located across Canada, Doman Building Materials Canada operates distribution centres coast-to-coast, and Doman Treated Wood Canada operates multiple treating plants near major cities; headquartered in Dallas, Texas, Doman Lumber operates 21 treating plants, two specialty planing mills and five specialty sawmills located in nine states, distributing, producing and treating lumber, fencing and building material servicing the central U.S.; Doman Building Materials USA and Doman Treated Wood USA serve the U.S. west coast with multiple locations in California and Oregon; and in the state of Hawaii the Honsador Building Products Group services 15 locations across all the islands.  The Company’s Canadian operations also include ownership and management of private timberlands and forest licenses, and agricultural post-peeling and pressure treating through its Doman Timber operations. For additional information on Doman Building Materials Group Ltd., please refer to the Company’s filings on SEDAR+ and the Company’s website www.domanbm.com

Contact:

Ali Mahdavi – Investor Relations – ali.mahdavi@domanbm.com  – (416) 962-3300

Source: Doman Building Materials Group Ltd.