Doman Building Materials Group Ltd. Announces First Quarter 2022

Doman Building Materials Group Ltd. (“Doman” or “the Company”) announced its first quarter 2022 financial results(1) for the period ended March 31, 2022.

For the three-month period ended March 31, 2022(1), consolidated revenues increased by 63.7% to $851.3 million, compared to $519.9 million in 2021, largely due to contributions from the Company’s 2021 acquisitions. The Company’s sales by product group in the quarter were made up of 81% construction materials, with the remaining balance of sales resulting from specialty and allied products of 16%, and other of 3%.

Gross margin dollars increased to $132.6 million, compared to $90.4 million in 2021. Gross margin percentage was 15.6%, representing a decrease from the 17.4% achieved in the same quarter of 2021.

EBITDA(2) and Adjusted EBITDA(3) for the first quarter amounted to $78.1 million, compared to $60.0 million in 2021.

The Company declared a $0.14 per share(4) quarterly dividend during the first quarter, which was paid on April 14, 2022, to shareholders of record at the close of business on March 31, 2022.

“Our top-line results are demonstrative of the continued strength of our business platform in Canada and the U.S.,” commented Amar S. Doman, Chairman of the Board. “I am extremely pleased with our financial performance, and the integration efforts around our recent acquisitions, which has resulted in the continued successful unfolding of our overall growth strategy. Although the economy is performing well, we are seeing general economic headwinds manifesting in inflation, increased interest rates along with price volatility in certain product categories. We remain focused on adapting and performing during these uncertain times, which is familiar territory for our team as we focus on growth and overall cost management.”

For the full first quarter results, click here.

(1) Please refer to our Q1 2022 MD&A and Financial Statements for further information. Our Q1 2022 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 March 15, 2022, Doman declared a quarterly dividend of $0.14 per share, which was paid on April 14, 2022 to shareholders of record on March 31, 2022. Please refer to our Q1 2022 MD&A and Financial Statements for more information.

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, log harvesting and trucking operations, 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

Source: Doman Building Materials Group Ltd.