Taiga Building Products Ltd. Announces Better Q1 Performance Vs. Same Period Prior Year



    BURNABY, BC, Aug. 8 /CNW/ - Taiga today reported its results for the
three months ended June 30, 2008. Net earnings for the three months ended
June 30, 2008 were $4.2 million or $0.13 per share compared to $3.9 million or
$0.12 per share for the three months ended June 30, 2007.
    Sales revenue slipped 2% to $284.4 million in the first quarter of the
2008 fiscal year, compared to $289.7 million for the first quarter 2007. This
is mainly due to the continued weakness in lumber and panel prices over the
comparative period.
    For the first quarter of 2008 gross margin dollars increased to
$34.4 million compared to $33.1 million for the same period in fiscal 2007, an
increase of 3.9%. Gross margin for the period increased to 12.1% from 11.4%.
This improvement is attributed to the Company's value added product mix
strategy.
    EBITDA performance was steady, in a traditionally active quarter, at
$13.3 million compared to $13.7 million in the same period in fiscal 2007. The
slight decline in EBITDA is the result of higher operating costs this quarter
over the comparative quarter.

    
                      Comparative Statement of Earnings
                         For the Three Months Ended
                          (in thousands of dollars)
                                 (Unaudited)

                                              June 30, 2008  June 30, 2007(3)
    -------------------------------------------------------------------------
    Net sales                                  $    284,445     $    289,651
                                           ----------------------------------
    Gross Profit                                     34,383           33,079
    Expenses                                         22,124           20,269
    Interest                                          2,032            2,346
                                           ----------------------------------
    Operating Income                                 10,227           10,464
    Interest - Sub-note                               3,946            3,946
    Non-operating income                                253              275
                                           ----------------------------------
    Net income before income tax                      6,534            6,793
    Income taxes                                      2,378            2,845
                                           ----------------------------------
    Net Earnings                                      4,156            3,948
                                           ----------------------------------

    Earnings per share(1)                      $       0.13     $       0.12
    EBITDA(2)                                  $     13,262     $     13,709

    Notes:

    (1) EPS is earnings per share calculated using the weighted average
        number of shares.

    (2) EBITDA is not a recognized measure under GAAP and does not have a
        standardized meaning prescribed by GAAP. Therefore, EBITDA may not be
        comparable to similar measures presented by other issuers.

    (3) The sales results for the first quarter ended June 30, 2007 include a
        reclassification, in order to confirm with the presentation used in
        the current year first quarter June 30, 2008, in accordance with
        guidelines issued in CICA EIC-156.
    

    Forward-Looking Statements:

    Statements in this release include forward-looking statements based on
audited financial results and management's expectations and assumptions. These
statements and Taiga's results of operation and business are subject to a
number of risks described in Taiga Building Products Ltd. published management
discussion and analysis of results of operations for fiscal year ended
March 31, 2007 and under the heading "Risk Factors" in the Company's Annual
Information Form (both of which are available at www.sedar.com), and include,
but are not limited to, dependence on market economic conditions, sales and
margin risk and fluctuations in commodity prices, customer risk, interest rate
risk, growth risk, risks of acquisitions, competition, supply of commodities,
supply-side risks, inventory risks, seasonal and cyclical nature of Taiga's
business, Canada-United States softwood lumber dispute, product liability
claims, new regulations, environmental liabilities, credit risk, foreign
currency risk, dependence on key personnel, information system risk and
availability of future financing. These risks and uncertainties may cause
actual results to differ materially from those contained in such
forward-looking statements. Investors are cautioned not to place undue
reliance on such forward-looking statements. No forward-looking statement is a
guarantee of future results.
    In this release, reference is made to EBITDA, which represents earning
before interest, taxes, depreciation and amortization. As there is no
generally accepted method of calculating EBITDA, the measure as calculated by
Taiga might not be comparable to similarly titled measures reported by other
issuers. EBITDA is presented as management believes it is a useful indicator
of a company's ability to meet debt service and capital expenditure
requirements and because management interprets trends in EBITDA as an
indicator of relative operating performance. EBITDA should not be considered
by an investor as an alternative to net income or cash flows as determined in
accordance with Canadian generally accepted accounting principles. For further
information regarding EBITDA please refer to management's discussion and
analysis of results of operations for the fiscal year ended March 31, 2007
(available at www.sedar.com).

    %SEDAR: 00022285E




For further information:

For further information: regarding Taiga please contact: Tom Stefan,
Vice President, Finance and Administration, Phone: (604) 438-1471, Fax: (604)
439-4242


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