Doman Building Materials Group Ltd. Announces Third Quarter 2023 Financial Results

Doman Building Materials Group Ltd. (“Doman” or “the Company”) (TSX:DBM) announced today its third quarter 2023 financial results⁽¹⁾ for the period ended September 30, 2023.

For the three-month period ended September 30, 2023⁽¹⁾, consolidated revenues amounted to $643.9 million, compared to $744.1 million in the same period in 2022. The decrease in revenues is largely due to the impact of construction materials pricing, which resulted in lower average pricing for lumber and plywood during the current year quarter. The Company’s sales by product group in the period were made up of 72% construction materials, consistent with the same quarter last year, with the remaining balance resulting from specialty and allied products of 23%, and other sources of 5%.

Gross margin dollars increased to $102.8 million in the three-month period versus $91.5 million in the comparative quarter of 2022. Gross margin percentage increased to 16.0% in the quarter, an improvement from 12.3% achieved in the same quarter of 2022.

EBITDA⁽²⁾ for the three-month period ended September 30, 2023⁽¹⁾, amounted to $52.0 million, compared to $40.0 million in the same period in 2022. Net earnings for the quarter were $21.2 million compared to $11.6 million in the same quarter of 2022.

The Company declared a $0.14 per share⁽³⁾ quarterly dividend during the third quarter, which was paid on October 13, 2023, to shareholders of record at the close of business on September 29, 2023.

Subsequent to quarter-end, on October 20, 2023, Fitch Ratings (“Fitch”) upgraded the ratings of Doman including the company’s Long-Term Issuer Default Rating (“IDR”), to ‘B+’ from ‘B’. Fitch has also upgraded the Company’s 2026 unsecured notes rating to ‘BB-‘/’RR3’ from ‘B’/’RR4’.

For the nine-month period ended September 30, 2023⁽¹⁾, the Company generated EBITDA of $162.9 million, on revenues of $2.0 billion. Gross margin and gross margin percentage during the period amounted to $322.2 million, and 16.4%, respectively. This compares to 2022 EBITDA of $170.2 million, on revenues of $2.5 billion. Gross margin and gross margin percentage during the 2022 period amounted to $326.8 million and 13.3%. Net earnings for the nine-month period ended September 30, 2023 were $65.3 million versus $74.4 million in the comparative period of 2022.

“I am very pleased with the strength of our business model and our financial performance during current market conditions which include much volatility and macroeconomic headwinds,” commented Amar S. Doman, Chairman of the Board. “Our year-to-date, and third quarter gross margin performance was solid and a validation of the strength of the business platform we have on both sides of the border.”

For the complete press release, click here.

About Doman Building Materials Group Ltd.

Doman is headquartered in Vancouver, British Columbia and trades on the Toronto Stock Exchange under the symbol DBM and is a leading North American distributor of building materials and is Canada’s only fully integrated national distributor in the building materials and related products sector. Doman operates several distinct divisions: CanWel Building Materials with multiple treating plant, planing facilities and distribution centres coast-to-coast in all major cities and strategic locations across Canada; founded in 1959, Hixson Lumber Company in the central United States, with 19 treating plants, two specialty planing mills and five specialty sawmills located in eight states, headquartered in Dallas, Texas, distributing, producing and treating lumber, fencing and building materials; California Cascade in the western United States near Portland, Oregon, San Francisco and Los Angeles, California with treating facilities and distribution of building materials, lumber and renovation products; founded in 1935, the Honsador Building Products Group in 14 locations in the State of Hawaii, with treating facilities, truss plants and distribution of a wide range of building materials, lumber, renovation and electrical products. In addition, through its CanWel Fibre division, the Company operates a vertically integrated forest products company based in Western Canada, operating from British Columbia to Saskatchewan, also servicing the US Pacific Northwest. CanWel Fibre owns approximately 117,000 acres of private timberlands, strategic licenses and tenures, several post and pole peeling facilities and two pressure-treated specialty wood production plants and a specialty sawmill. Please see our filings on SEDAR under Doman Building Materials Group Ltd. (formerly, CanWel Building Materials Group Ltd.) for additional information.

Contact:

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

Source: Doman Building Materials Group Ltd.