Taiga Building Products Ltd. Announces Fiscal Year 2009 and Fourth Quarter Financial Results



    BURNABY, BC, May 22 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the
"Company") today reported fourth quarter and March 31, 2009 fiscal year
earnings.

    
                      Fiscal Year 2009 Earnings Results
    

    For the fiscal period ending March 31, 2009, sales were $1,005.9 million,
down 5.5% from $1,064.9 million last year. Sales were lower primarily due to
reduced new home construction levels in the last three months of the year.
Gross margin for the fiscal year was $100.6 million or 10.0% of sales compared
to $111.4 million or 10.5% of sales in 2008. This translates to a 9.7%
reduction in gross margin dollars for the year.
    Net earnings for the fiscal year ended March 31, 2009 were $0.2 million
compared to $2.2 million in 2008. EBITDA for the fiscal period decreased to
$27.7 million compared to $42.8 million in 2008.

    
             Fourth Quarter Ended March 31, 2009 Earnings Results
    

    Sales for the three months ended March 31, 2009 were $178.8 million, down
15.3% from $211.2 million reported for the same quarter last year. This is
primarily due to the reduced demand, as new housing activity slowed
dramatically in the period. Gross margin for the fourth quarter was $17.6
million or 9.8% of sales compared to $28.1 million or 13.3% of sales in the
comparative quarter of 2008. The 37.4% reduction in gross margin dollars
reflects weaker sales revenue, falling prices and a more competitive
environment. Net loss for the fourth quarter ended March 31, 2009 was $4.5
million compared to Net loss of $3.6 million in the comparative quarter of
2008. EBITDA was negative $1.8 million compared to positive $12.0 million for
the comparative quarter of 2008.

    
                             Liquidity Management
    

    As announced in Taiga's March 23, 2009 Press Release, the Company
continues to undertake major cost reduction initiatives. On an annual basis,
savings are expected to exceed $22.0 million.
    On April 9, 2009, Taiga announced it is deferring monthly interest
payments on its 14% Notes and expects this will continue for the foreseeable
future. The interest payment deferral, along with cost management initiatives
are providing appropriate levels of liquidity under current market conditions.
As a result Taiga does not expect to breach any financial covenants associated
with its credit facilities.
    Per Taiga's dividend policy, the Company will not be paying further
dividends on its common shares for Fiscal Year ended March 31, 2009.

    
                 Selected Consolidated Statement of Earnings

                          For the Fiscal Year Ended
           (in thousands of dollars, except for per share amounts)

                                                              March 31,
                                                            2009        2008
    -------------------------------------------------------------------------
    Sales                                             $1,005,925  $1,064,858
    Gross margin                                         100,557     111,445
    Distribution                                          19,297      18,812
    Selling and administration                            57,853      51,660
    Interest                                               6,316       7,990
    Subordinated debt interest expense                    15,782      15,782
    Non-operating expense (income)                          (922)      2,456
    -------------------------------------------------------------------------
    Earnings before income taxes                           2,231      14,745
    Provision for income taxes                             2,039      12,515
    -------------------------------------------------------------------------
    Net earnings                                             192       2,230
    Net earnings per share(1)                               0.01        0.07
    EBITDA(2)                                             27,727      42,785




                         For the Three Months Ended
           (in thousands of dollars, except for per share amounts)

                                                              March 31,
                                                            2009        2008
    -------------------------------------------------------------------------
    Sales                                             $  178,751  $  211,198
    Gross margin                                          17,566      28,132
    Distribution                                           5,120       5,803
    Selling and administration                            15,475      11,342
    Interest                                               1,189       1,590
    Subordinated debt interest expense                     3,946       3,946
    Non-operating expense (income)                        (1,117)      1,160
    -------------------------------------------------------------------------
    Earnings (loss) before income taxes                   (7,047)      4,291
    Provision for (recovery of) income taxes              (2,553)      7,940
    -------------------------------------------------------------------------
    Net loss                                              (4,494)     (3,649)
    Net loss per share(1)                                  (0.14)      (0.11)
    EBITDA(2)                                             (1,849)     12,026

    Notes:
    (1) EPS is earnings per share calculated using the weighted average
        number of shares.
    (2) Reference is made above to EBITDA, which represents earnings 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.
    

    The foregoing selected financial information is qualified in its entirety
by and should be read in conjunction with, our audited consolidated financial
statements for the fiscal year ended March 31, 2009 and accompanying notes and
management discussion and analysis filed on Sedar at www.sedar.com.

    Forward-Looking Statements:

    This press release contains certain forward-looking information and
statements relating, but not limited, to future events or performance and
strategies and expectations of Taiga. Forward-looking information typically
contains statements with words such as "consider", "anticipate", "believe",
"expect", "plan", "intend", "likely", "may", "will", "should", "predict",
"potential", "continue" or similar words suggesting future outcomes or
statements regarding expectations, beliefs, plans, objectives, assumptions,
intentions or statements about future events or performance. Examples of such
forward looking statements within this press release include statements
relating to: our anticipated results of operations, including cost reduction
savings; our expectations regarding market conditions; the sufficiency of our
cash requirements and our ability to remain in compliance with our debt
covenants. Readers should be aware that these statements are subject to known
and unknown risks, uncertainties and other factors that could cause actual
results to differ materially from those suggested by the forward-looking
statements.
    These forward-looking statements reflect management's current
expectations or beliefs and are based on information currently available to
Taiga and although Taiga believes it has a reasonable basis for making the
forward-looking statements included in this document, readers are cautioned
not to place undue reliance on such forward-looking information. By its
nature, the forward-looking information of Taiga involves numerous assumptions
and inherent risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions, forecasts and other
forward-looking statements will not occur. These risks include, but are not
limited to, changes in business strategies; the effects of litigation,
competition and pricing pressures; changes in operational costs; changes in
laws and regulations, including tax, environmental, employment, competition,
anti-terrorism and trade laws; and Taiga's anticipation of and success in
managing the risks associated with the foregoing. A further description of
these additional factors can be found in the periodic and other reports filed
by Taiga with Canadian securities commissions and available on Sedar
(http://www.sedar.com).These forward-looking statements speak only as of the
date of this press release. Taiga does not undertake, and specifically
disclaims, any obligation to update or revise any forward looking information,
whether as a result of new information, future developments or otherwise,
except as required by applicable law.

    %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; Mark Schneidereit, Manager, Corporate Planning, Phone: (604)
438-1471, Fax: (604) 439-4242


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