Q3 2024 Stella-Jones Inc Earnings Call Transcript
Key Points
- Stella-Jones Inc (STLJF) reported a solid EBITDA margin of 17.7% for the third quarter, exceeding their profitability objective.
- The company has expanded its EBITDA margin by over 300 basis points since 2022, with a target to sustain an expanded margin of over 17%.
- Stella-Jones Inc (STLJF) generated strong operating cash flows of $186 million during the quarter, contributing to a year-to-date operating cash flow of $301 million.
- The company has a strong financial position with almost $750 million of available capital following a successful $400 million bond offering.
- Stella-Jones Inc (STLJF) is actively pursuing acquisitions as a cornerstone of its growth strategy, leveraging its infrastructure customer base and North American footprint.
- Third quarter sales decreased by 4% year-over-year, driven by lower volumes across all product categories.
- Utility pole sales volumes were down 6% compared to the previous year, attributed to a slowdown in project-based activity.
- Railway tie sales decreased by $25 million due to lower volumes and the timing of shipments.
- Residential lumber sales decreased by 5% due to lower volumes, despite stable pricing.
- The company adjusted its three-year sales target to approximately $3.6 billion by 2025, down from the previous target of above $3.6 billion.
Good morning, and thank you for standing by. Welcome to the Stella-Jones' third quarter Of 2024 earnings call. (Event Instructions) I would like to remind everyone that this conference call is being recorded on Wednesday, November 26, 2024 (sic - November, 6, 2024).
Please note that comments made on today's call may contain forward-looking information, and this information, by its nature, is subject to risks and uncertainties. Actual results may differ materially from the views expressed today. For further information on these risks and uncertainties, please consult the company's relevant filings on SEDAR+. These documents are also available in the Investor Relations section of Stella-Jones' website at www.stella-jones.com.
Additionally, during this conference call, the company may refer to non-GAAP measures, which have no standardized meaning under GAAP and are not likely to be comparable to similar measures presented by other issuers. For more information, please refer to the company's latest MD&A available on
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