MONTREAL, May 07, 2025 (GLOBE NEWSWIRE) -- Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”) today announced its director election results following its Annual Meeting of Shareholders (“Meeting”), held this morning. All of the nominees proposed as directors in the Company’s Management Information Circular dated March 14, 2025 were elected to the Board of Directors of Stella-Jones by a majority of the votes cast by shareholders at the Meeting or represented by proxy at the Meeting. Detailed votin ...

Financial Performance - Stella-Jones reported sales of CAD 773 million for Q1 2025, a slight decrease from CAD 775 million in Q1 2024, with pressure-treated wood sales down by CAD 36 million or 5% due to lower volumes across most product categories [4][6] - Gross profit for the quarter was CAD 168 million, resulting in a gross profit margin of 21.7%, down from 22.2% in the previous year [3][7] - Operating income increased to CAD 143 million, up from CAD 124 million in Q1 2024, aided by an insurance settlement of CAD 38 million [8][9] - EBITDA rose to CAD 179 million, with an EBITDA margin of 23.2%, compared to CAD 156 million and a margin of 20.1% in the same period last year [8][9] Acquisition Strategy - The company announced a definitive agreement to acquire Locweld Inc. for CAD 58 million, enhancing its infrastructure offerings in the steel transmission structure industry [2][14] - The acquisition is expected to unlock investment opportunities and create more value for customers and shareholders [2][14] Liquidity and Capital Resources - Stella-Jones maintained robust liquidity of CAD 691 million at the end of the quarter and a net debt-to-EBITDA ratio of 2.6x [10][32] - The company utilized its liquidity to support seasonal working capital needs, repurchase CAD 15 million of shares, and declared a dividend of CAD 17 million [10][13] Segment Performance - Utility poles sales increased to CAD 419 million, while railway ties sales decreased to CAD 208 million, reflecting a 14% decline in volumes [12] - Residential lumber sales remained stable at CAD 88 million, and industrial product sales increased to CAD 39 million [12]

Company Overview - Stella-Jones Inc. has announced the acquisition of Locweld Inc., a designer and manufacturer of lattice transmission towers and steel poles, with the deal expected to close today [1][3]. - Locweld, based in Candiac, Quebec, has over 75 years of experience and employs approximately 220 people [2]. Strategic Implications - The acquisition allows Stella-Jones to enter the approximately $5 billion steel transmission structure market, enhancing its current utility poles business and creating new growth opportunities [3]. - The CEO of Stella-Jones emphasized that this strategic move will leverage the company's extensive sales and distribution network to better serve customers and expand its market reach [3]. Financial Details - The acquisition price is set at $58 million on a cash-free, debt-free basis, with potential additional performance-based payments of up to $7 million contingent on achieving specific milestones [5]. - Stella-Jones plans to invest approximately $15 million in capital expenditures to increase Locweld's output and optimize operational efficiencies [5]. - Locweld reported sales of approximately $55 million for the year ending September 30, 2024 [5]. Management Transition - Following the acquisition, Michael Cyr, the CEO of Locweld, will step down, while key management members will remain to support the business [5].

MONTRÉAL, May 06, 2025 (GLOBE NEWSWIRE) -- Stella-Jones Inc. (TSX: SJ), (“Stella-Jones” or “the Company”) will hold a conference call to discuss its first quarter results: OPEN TO:Investors, analysts and all interested parties DATE:Wednesday, May 7, 2025 TIME:8:00 AM Eastern Daylight TimeLIVE WEBCAST:https://meetings.lumiconnect.com/400-108-123-801 CALL:(+1) 800 206-4400 THE PRESS RELEASE WILL BE PUBLISHED BEFORE MARKET OPENS THE DAY OF THE CONFERENCE CALL THROUGH GLOBE NEWSWIRE. Please log on or dial ...

Revenue Generation and User Engagement - The company relies heavily on a single monetization model, primarily generating revenue from virtual gifts purchased by users, which poses a risk if this model fails to diversify [46]. - Revenue growth is dependent on maintaining and increasing the paying user base and revenue per paying user; any decline could materially affect financial results [44]. - The user base's growth and engagement are critical, as a smaller or less active user base could lead to reduced spending on virtual gifts [44]. - The company relies on revenue from virtual gift sales, and its ability to monetize services depends on user engagement and broadcaster retention [59]. - The company has experienced a decline in revenue due to competitive pressures in China's mobile live streaming market, highlighting the challenges of converting non-paying users to paying users [60]. - The company must continuously innovate and diversify its content offerings to prevent decreasing viewership and user engagement [47]. - The company has adjusted its revenue sharing fee policy to increase the sharing percentage for broadcasters after a previous decrease led to significant departures [54]. Risks and Challenges - The company faces significant risks in retaining top broadcasters, whose content is crucial for user engagement and revenue generation [50]. - There is a potential for legal disputes with competing platforms that could impact the retention of top broadcasters and user engagement [52]. - The company must continue to attract and retain top broadcasters to maintain its user base, which may lead to increased costs if competitors offer higher compensation [97]. - The company faces high entry barriers in the entertainment live streaming industry, competing against established platforms for user traffic and quality broadcasters [63]. - The company faces potential liabilities for user-generated content that may violate PRC laws, which could result in fines or other disciplinary actions [89][91]. - The company faces risks related to litigation, which could be costly and time-consuming, potentially affecting business operations [114]. - Negative publicity regarding the company or its services could harm its brand and reputation, impacting growth prospects [117]. Regulatory Environment - The company is subject to various risks related to doing business in China, including regulatory uncertainties and potential penalties [41]. - The company must navigate regulatory challenges in China, including the need to maintain various licenses and approvals to operate legally [74]. - The evolving regulatory environment in China poses uncertainties that could materially affect the company's operations and financial condition [96][99]. - The company is subject to regulatory compliance regarding personal data protection, and any perceived failures could lead to legal actions and reputational damage [104]. - The company may face regulatory actions or sanctions from PRC governmental authorities due to uncertainties in the interpretation of M&A Rules for overseas offerings [195]. - The Data Security Law and Personal Information Protection Law impose strict obligations on data handling, with potential fines up to RMB 10 million for violations [198][199]. Financial Performance and Projections - In the fiscal year ended December 31, 2023, total revenues decreased by 25% compared to the fiscal year ended December 31, 2022, and further decreased by 7% in the fiscal year ended December 31, 2024, primarily due to a decrease in the number of paying users [60]. - The company expects costs and expenses to continue to increase as it implements new operational and financial systems, requiring substantial management efforts and significant additional expenditures [57]. - The company acknowledges that its past growth may not be indicative of future performance due to the rapidly evolving market and limited operating history [60]. Operational Dependencies - The company relies on independent third-party distributors for selling virtual currency, with four distributors accounting for 34.2%, 14.9%, 13.9%, and 10.0% of accounts receivable as of December 31, 2022 [94]. - As of December 31, 2023, three independent third-party distributors accounted for 30.3%, 24.8%, and 12.1% of the company's accounts receivable, indicating a reliance on a few key distributors for revenue [94]. - The company relies on third-party online payment platforms like China UnionPay, WeChat Pay, and Alipay for a significant portion of its revenue, and any disruptions in these services could adversely affect payment collection and revenue [122]. - The company relies on dividends from PRC subsidiaries for cash flow, and any restrictions on these dividends could hinder business operations [163]. Corporate Structure and Compliance - The company operates through Variable Interest Entities (VIEs) due to PRC laws restricting foreign ownership, which introduces uncertainties regarding compliance and operational control [144]. - The PRC Foreign Investment Law, effective January 1, 2020, defines foreign investment but leaves uncertainties regarding the treatment of VIEs [151]. - The latest "negative list" prohibits foreign investment in certain internet-related services, impacting the company's operations through VIEs [152]. - The company relies on contractual arrangements with VIEs for operational control, which may not be as effective as direct ownership [154]. - Potential conflicts of interest with VIE shareholders may disrupt operations and affect financial conditions [156]. Technology and Security - The company relies heavily on the performance of its IT systems, and any disruptions could materially affect user satisfaction and retention [100]. - The company has developed a robust content monitoring system, but it cannot detect every incident of inappropriate content due to the vast amount of user-generated content [91]. - The company is dependent on third-party services for data storage and encryption, and disruptions in these services could adversely impact operations [107]. - As of the date of the annual report, the company has not experienced any material incidents of security breaches, but vulnerabilities remain a concern [102]. Market and Competitive Landscape - The company monitors key performance metrics such as registered users, active users, and paying users, but these metrics may overstate the actual number of unique users due to potential duplicate accounts and fraudulent registrations [120]. - The company experiences seasonal fluctuations in user engagement, with active users typically peaking in the last quarter of the year and declining during the Chinese New Year [128]. - The company may need to invest significantly in research and development to keep pace with rapid technological changes in the Internet industry, which could impact its financial performance [98].

Group 1 - Stella-Jones Inc. announced the appointment of Wesley Bourland as Senior Vice-President and Chief Operating Officer, effective April 14, 2025 [1] - Mr. Bourland has extensive experience in operations, having served as COO for a leading hardwood lumber supplier and held various leadership roles in a steel structures manufacturer [3][4] - He is a trained Mechanical Engineer with a Bachelor of Science from the University of Texas at Austin, and will focus on manufacturing, strategic planning, and process optimization [5] Group 2 - Eric Vachon, President and CEO of Stella-Jones, expressed enthusiasm for Mr. Bourland's appointment, highlighting his results-driven leadership and ability to drive operational excellence [6][7] - Stella-Jones is a leading North American manufacturer of products essential for electrical distribution, transmission, and railway transportation systems [8] - The company supplies treated wood utility poles and railway ties to major electrical utilities and railroad operators across North America [8]

Core Points - Stella-Jones Inc. will hold a conference call to discuss its first quarter results on May 7, 2025, at 8:00 AM Eastern Daylight Time [1] - The press release regarding the conference call will be published before market opens on the same day [2] - The annual meeting of shareholders will also take place on May 7, 2025, at 11:00 AM Eastern Daylight Time, in a hybrid format [3] - Registered shareholders and duly appointed proxyholders will have the opportunity to participate, ask questions, and vote during the meeting [5] - Stella-Jones' 2024 Annual Report is now available on the company's website [6] Company Overview - Stella-Jones Inc. is a leading North American manufacturer focused on infrastructure products essential for electrical distribution and railway transportation systems [7] - The company supplies treated wood utility poles to major electrical utilities and treated wood railway ties to Class 1, short line, and commercial railroad operators [7] - Additionally, Stella-Jones manufactures and distributes premium treated residential lumber and accessories for outdoor applications, primarily servicing Canadian customers [7]

Core Insights - Stella-Jones Inc. reported continued sales and EBITDA growth for the fourth quarter and the year ended December 31, 2024, demonstrating the strength of its business model and customer-centric approach [2][3] - The company achieved a quarterly dividend increase for the 21st consecutive year, reflecting confidence in long-term business fundamentals [3][21] - The outlook for 2025 remains positive, driven by the need to strengthen North America's aging electrical grid and opportunities in railway ties [3] Financial Highlights - Fourth quarter sales reached CAD 730 million, a 6% increase from CAD 688 million in Q4 2023 [4] - Annual sales for 2024 totaled CAD 3,469 million, up 5% from CAD 3,319 million in 2023 [9] - Operating income for 2024 was CAD 503 million, with an EBITDA of CAD 633 million, representing an EBITDA margin of 18.2% [14][15] - Net income for Q4 2024 was CAD 52 million, or CAD 0.93 per share, compared to CAD 56 million, or CAD 0.98 per share in Q4 2023 [8][15] Segment Performance - Utility poles sales accounted for 53% of Q4 2024 sales, totaling CAD 385 million, a slight increase from CAD 383 million in Q4 2023 [11] - Railway ties sales increased by 15% in Q4 2024, reaching CAD 193 million, driven by higher Class 1 volumes [11] - Residential lumber sales grew by 12% in Q4 2024, totaling CAD 93 million, reflecting favorable pricing and higher sales volumes [11] Capital Allocation and Shareholder Returns - The company generated strong operating cash flow of CAD 408 million in 2024 and returned CAD 153 million to shareholders [16] - The quarterly dividend was increased by 11% to CAD 0.31 per share, payable on April 18, 2025 [21] - Stella-Jones has committed to returning over CAD 500 million to shareholders from 2023 to 2025 [19] Financial Position - As of December 31, 2024, Stella-Jones maintained a net debt-to-EBITDA ratio of 2.6x, slightly above the target range [17] - The company had available liquidity of CAD 802 million, indicating a strong financial position [17] - Total assets increased to CAD 4,103 million in 2024, up from CAD 3,708 million in 2023 [27]

Core Viewpoint - Stella-Jones Inc. is a leading manufacturer of pressure-treated wood products in North America, focusing on infrastructure essential for electrical distribution, transmission, and railway transportation systems [3]. Company Overview - Stella-Jones Inc. (TSX: SJ) supplies major electrical utilities and telecommunication companies with wood utility poles, and provides railway ties and timbers to North America's Class 1, short line, and commercial railroad operators [3]. - The company also produces industrial products such as timbers for railway bridges, crossings, construction, marine and foundation pilings, and coal tar-based products [3]. - Additionally, Stella-Jones manufactures and distributes premium treated residential lumber and accessories for outdoor applications, with a significant portion of its business dedicated to Canadian customers through a national manufacturing and distribution network [3].

Company Overview - Stella-Jones Inc. is a leading North American manufacturer of pressure-treated wood products, focusing on infrastructure essential for electrical distribution and railway transportation systems [4] - The company supplies major electrical utilities and telecommunication companies with wood utility poles, and provides railway ties and timbers to North America's Class 1, short line, and commercial railroad operators [4] - Stella-Jones also manufactures industrial products such as timbers for railway bridges, crossings, construction, marine and foundation pilings, and coal tar-based products [4] - The company distributes premium treated residential lumber and accessories to Canadian and American retailers, with a significant portion of its business dedicated to servicing Canadian customers through a national manufacturing and distribution network [4] Upcoming Events - A conference call for investors and analysts is scheduled for February 27, 2025, at 10:00 AM Eastern Standard Time [2] - A press release will be published before the market opens on the day of the conference call [3] - A web recording of the meeting will be available from 1:00 PM EST on February 27, 2025, until 11:59 PM EST on March 6, 2025 [3]