VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 3, 2016) -

Q3 2016 Financial Highlights1 YTD 2016 Financial Highlights
Revenue: $57.7 million $185.4 million
Gross Profit: $9.6 million $32.1 million
EBITDA2: $5.4 million $19.9 million

Tree Island Steel Ltd. ("Tree Island" or the "Company") (TSX:TSL) announced today its financial results for the three and nine-month periods ended September 30, 2016.

For the three-month period ended September 30, 2016, revenues were $57.7 million versus $61.4 million during the corresponding period in 2015, a decline of 6%. Gross profit for the three months was $9.6 million while gross profit margin increased to 16.6% from 16.0% when compared to the same period last year and EBITDA amounted to $5.4 million, compared to $6.2 million during the third quarter of 2015.

For the nine-months ended September 30, 2016, revenues amounted to $185.4 million compared to $177.0 million during the same period in 2015. Gross profit and EBITDA for the nine-month period amounted to $32.1 million and $19.9 million, respectively, compared to $26.2 million and $16.4 million during the same nine-month period in 2015, resulting from the strong financial results in the first half of 2016

"Overall, our performance year-to-date has been solid. Demand in our key end markets show resilience and we remain focused and confident in our growth strategy and our ability to adapt to changes in our business environment. Our third quarter results were impacted by moderating customer sentiment coupled with lower average selling prices. However, our product mix improved such that, despite the decline in average selling prices, we were able to realize a higher gross profit margin than in the prior year," commented Dale R. Maclean, President and CEO of Tree Island Steel Ltd. "During the quarter we also undertook actions to consolidate some of our US operating facilities and rationalize a portion of our business to create operating synergies, which resulted in the sale of various non-material assets. These actions will reinforce our focus in further developing our core business and strengths."

"The board supports the actions the Company has taken to enhance its position within the market," said Amar S. Doman, Chairman of the Board of Directors. "These actions will position the Company for future growth."

Summary of Results

($'000 unless otherwise stated)

Three Months Ended Nine Months Ended
September 30, September 30,
2016 2015 2016 2015
Revenue 57,726 61,408 185,350 176,992
Cost of sales (47,305 ) (50,828 ) (150,743 ) (148,548 )
Depreciation (839 ) (767 ) (2,492 ) (2,253 )
Gross profit 9,582 9,813 32,115 26,191
Selling, general and administrative expenses (4,880 ) (4,537 ) (14,573 ) (12,923 )
Operating income 4,702 5,276 17,542 13,268
Foreign exchange gain (loss) (172 ) 152 (93 ) 914
Gain (loss) on sale of property, plant and equipment 12 - 12 (6 )
Changes in financial liabilities recognized at fair value (223 ) 96 607 (187 )
Financing expenses (593 ) (690 ) (2,030 ) (2,390 )
Income before income taxes 3,726 4,834 16,038 11,599
Income tax (expense) recovery3 (1,039 ) 1,610 (1,762 ) (974 )
Net income 2,687 6,444 14,276 10,625
Operating Income 4,702 5,276 17,542 13,268
Add back depreciation 839 767 2,492 2,253
Foreign exchange gain (loss) (172 ) 152 (93 ) 914
EBITDA4 5,369 6,195 19,941 16,435
Net income per share - basic ($/share) 0.09 0.21 0.46 0.34
Net income per share - diluted ($/share) 0.09 0.21 0.46 0.34
Sales volume (tons)5 43,633 43,366 139,424 123,262
Gross profit per ton ($/ton) 220 226 230 212
EBITDA per ton ($/ton) 123 143 143 133
Financial Position as at: September 30, 2016 December 31, 2015
Total Assets 140,538 131,589
Total non-current financial liabilities 19,224 22,152

About Tree Island Steel

Tree Island Steel, headquartered in Richmond, British Columbia, since 1964, through its five operating facilities in Canada and the United States, produces wire products for a diverse range of industrial, residential construction, commercial construction, agricultural, and specialty applications. Its products include galvanized wire, bright wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products; concrete reinforcing mesh; fencing and other fabricated wire products. The Company markets these products under the Tree Island, Halsteel, K-Lath, TI Wire, and Tough Strand brand names. The Company also maintains a presence in Beijing to assist with the international sourcing of products to Tree Island and its customers.

Forward-Looking Statements

This press release includes forward-looking information with respect to Tree Island including its business, operations and strategies, its dividend policy and the declaration and payment of dividends thereunder as well as financial performance and conditions. The use of forward-looking words such as, "may," "will," "expect" or similar variations generally identify such statements. Any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Although management believes that expectations reflected in forward-looking statements are reasonable, such statements involve risks and uncertainties including risks and uncertainties discussed under the heading "Risk Factors" in Tree Island's most recent annual information form and management discussion and analysis.

The forward looking statements contained herein reflect management's current beliefs and are based upon certain assumptions that management believes to be reasonable based on the information currently available to management. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward looking statements. In evaluating these statements, prospective investors should specifically consider various factors including the risks outlined in the Company's most recent annual information form and management discussion and analysis which may cause actual results to differ materially from any forward looking statement. Such risks and uncertainties include, but are not limited to: general economic, market and business conditions, the cyclical nature of our business and demand for our products, financial condition of our customers, competition, volume and price pressure from import competition, deterioration in the Company's liquidity, disruption in the supply of raw materials, volatility in the costs of raw materials, transportation costs, foreign exchange fluctuations, leverage and restrictive covenants, labour relations, trade actions, dependence on key personnel and skilled workers, intellectual property risks, energy costs, un-insured loss, credit risk, operating risk, management of growth, changes in tax, environmental and other legislation, and other risks and uncertainties set forth in our publicly filed materials.

This press release has been reviewed by the Company's Board of Directors and its Audit Committee, and contains information that is current as of the date of this press release, unless otherwise noted. Events occurring after that date could render the information contained herein inaccurate or misleading in a material respect. Readers are cautioned not to place undue reliance on this forward-looking information and management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise except as required by applicable securities laws.

1 Please refer to our 2016 MD&A for further information.

2 References made above to "EBITDA" are to operating profit plus depreciation and foreign exchange gains and losses. EBITDA is a measure used by many investors to compare issuers on the basis of ability to generate cash flows from operations. EBITDA is not an earnings measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS. We believe that EBITDA is an important supplemental measure in evaluating the Company's performance. You are cautioned that EBITDA should not be construed as an alternative to net income or loss determined in accordance with IFRS or as an indicator of performance. Our method of calculating EBITDA may differ from methods used by other issuers and, accordingly, our EBITDA may not be comparable to similar measures presented by other issuers.

3 Income tax (expense) recovery consists $850m and $1,561m of deferred income tax expenses for the three and nine months ended September 2016. The change between a net tax recovery in 2015 to a net tax expense in 2016 results in a reduction in EPS for the quarter of $0.09 per share. For further information, see the Q3 2016 MD&A and Interim Consolidated Financial Statements

4 See definition of EBITDA and Adjusted Net Income in Section 2 NON-IFRS MEASURES of the 2016 MD&A.

5 Sales volume excludes tons which were processed as part of tolling arrangements.

Contact Information:

Tree Island Steel Ltd.
Ali Mahdavi
Investor Relations
(416) 962-3300