Doman Building Materials Reports 2022 Financial Results
Doman Building Materials Group Ltd. (“Doman” or “the Company”) announced today its fourth quarter and full year 2022 financial results(1) for the period ended December 31, 2022.
For the year ended December 31, 2022(1), consolidated revenues increased by 19.5% to $3.0 billion, compared to $2.5 billion in 2021. The increase was largely due to the results from the Company’s 2021 acquisitions. Additionally, sales for the Company’s legacy operations were impacted by the recent construction materials pricing fluctuations and sales volumes declines. The Company’s sales by product group in the period were made up of 76% construction materials, compared to 74% last year, with the remaining balance resulting from specialty and allied products of 21%, and other of 3%.
Gross margin dollars increased to $408.8 million in 2022, versus $391.0 million in 2021. Gross margin percentage was 13.5% during the year, a decrease from the 15.4% achieved in 2021, largely due to construction materials pricing fluctuations during 2022.
EBITDA was $203.2 million, compared to $220.7 million in 2021. EBITDA for the comparative 2021 period was impacted by non-recurring directly attributable acquisition related costs of $4.9 million. Adjusted EBITDA before these non-recurring costs for the comparative period was $225.6 million.
For the three-month period ended December 31, 2022(1), revenues amounted to $572.9 million when compared to $641.6 million in the same period in 2021. The Company’s sales by product group in the quarter were made up of 72% construction materials, with the remaining balance of sales resulting from specialty and allied products of 24%, and forestry and other of 4%.
Gross margin dollars were $82.0 million in the three-month period versus $88.7 million in the comparative quarter of 2021. Gross margin percentage was 14.3% in the quarter, a slight increase from 13.8% achieved in the same quarter of 2021.
EBITDA and Adjusted EBITDA(3) for the three-month period ended December 31, 2022(1), amounted to $32.9 million, compared to $37.1 million in 2021.
The Company declared a total of $0.56 per share(4) in dividends in 2022, versus $0.54 per share in 2021.
“I am pleased with how our growth strategy continues to unfold, resulting in record annual sales while we continue to manage costs and inventories tightly to optimize margins,” commented Amar S. Doman, Chairman of the Board. “Despite inflationary and interest rate concerns, we remain enthusiastic, yet cautiously optimistic about the activity and demand for our products in many key markets on both sides of the border, while industry-wide price volatility continues to challenge margins. We have worked and managed through similar cycles and will remain focused as always to protect and maximize margins, while strengthening our balance sheet with steadfast focus in reducing our debt with the strength of our free cashflow generation.”
Reconciliation of Net Earnings to Earnings before Interest, Tax, Depreciation and Amortization (EBITDA):
|Three months ended December 31,||Years ended December 31,|
|(in thousands of dollars)||$||$||$||$|
|Provision for income taxes||1,400||1,631||19,977||31,955|
|Depreciation and amortization||17,415||15,449||66,877||55,063|
For the full fourth quarter results, click here.
|(1)||Please refer to our Q4 2022 MD&A and Annual 2022 Financial Statements for further information. Our Q4 2022 and Annual 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 November 4, 2021, the Company announced it was restoring its dividend to $0.14 per shares effective the dividend paid on January 14, 2022. Please refer to our Q4 2022 MD&A and our Q4 2022 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, 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.
Ali Mahdavi – Investor Relations – email@example.com – (416) 962-3300
Source: Doman Building Materials Group Ltd.