Taiga Building Products Ltd. announces second quarter performance and dividend reduction



    BURNABY, BC, Nov. 5 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the
"Company") reported its results for the three and six months ended September
30, 2007.

    Results from Operations - Three Months Ended September 30, 2007

    Net earnings for the three months ended September 30, 2007 were
$3.8 million or $0.12 per share compared to $3.1 million or $0.10 per share
for the three months ended September 30, 2006.
    Sales revenue for the three months ended September 30, 2007 was
$306.7 million compared to $305.3 million reported for the same quarter in
fiscal 2007. Sales remained constant while average prices of lumber continued
the trend of being lower in the quarter. OSB prices remained constant period
over period. Lower commodity lumber sales were offset by an increase in sales
of allied and treated wood products.
    For the second quarter of fiscal 2008, gross margin dollars increased by
10.4% to $34.0 million, compared to $30.8 million for the second quarter of
2007. Gross margin for the period increased to 11.1% from 10.1%. This
improvement is attributed to the Company's value added product mix strategy.
    EBITDA performance was robust, in a traditionally active quarter, at
$12.7 million compared to $11.9 million in the same quarter in 2007.

    Results from Operations - Six Months Ended September 30, 2007

    For the six months ended September 30, 2007, net earnings were
$7.8 million or $0.24 per share compared to $4.6 million or $0.14 per share
for the six months ended September 30, 2006, an increase of 69.6%.
    Sales revenue was $618.5 million, down 2.4% from $633.4 million for the
six months ended September 30, 2006. The decline in sales is largely due to
weaker lumber and OSB sales values, period over period.
    Gross margin for the six month period increased by 7.7% to $67.1 million
compared to $62.3 million for the same period in fiscal 2007. Gross margin for
the period increased to 10.8% from 9.8%.
    EBITDA increased by 6.4% to $26.5 million compared to $24.9 million over
the previous year.

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

                                                       September   September
                                                        30, 2007    30, 2006
    -------------------------------------------------------------------------

    Net sales                                          $ 306,727   $ 305,264
                                                       ----------------------
    Gross profit                                          33,979      30,820
    Expenses                                              22,211      20,037
    Interest - other                                       2,314       2,319
                                                       ----------------------
    Operating income                                       9,454       8,464
    Interest - sub note                                    3,946       3,946
    Non-operating income (expense)                           272         660
                                                       ----------------------
    Net income before income tax                           5,780       5,178
    Current income tax expense                             1,952       2,102
                                                       ----------------------
    Net earnings (loss)                                $   3,828   $   3,076
                                                       ----------------------

    EPS                                                $    0.12   $    0.10
    EBITDA(2)                                          $  12,748   $  11,940


                           For the Six Months Ended
                          (in thousands of dollars)
                                 (Unaudited)

                                                       September   September
                                                        30, 2007    30, 2006
    -------------------------------------------------------------------------
    Net sales                                          $ 618,527   $ 633,379
                                                       ----------------------
    Gross profit                                          67,057      62,341
    Expenses                                              42,480      39,319
    Interest - other                                       4,660       4,571
                                                       ----------------------
    Operating income                                      19,917      18,451
    Interest - sub note                                    7,891      11,098
    Non-operating income (expense)                           547         894
                                                       ----------------------
    Net income before income tax                          12,573       8,247
    Current income tax expense                             4,797       3,602
                                                       ----------------------
    Net earnings (loss)                                $   7,776   $   4,645
                                                       ----------------------

    EPS(1)                                             $    0.24   $    0.14
    EBITDA(2)                                          $  26,457   $  24,893


    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.
    

    On July 10, 2007 Taiga expanded its operations in Edmonton, Alberta by
purchasing a property immediately adjacent to its existing distribution
facility. The facility is an approximate seven acre rail served site with
50,000 square feet of warehouse space. This purchase effectively doubles
Taiga's infrastructure in a strong operating region.
    Taiga is reducing its monthly dividend payment policy from $0.0213 per
common share to $0.0150 per common share, starting for the month of November
2007, to be paid on December 17, 2007. Taiga will direct cash flow usage
towards value adding capital expenditure opportunities and in addressing other
potential liabilities.

    Forward-Looking Statements:

    Statements in this release include forward-looking statements based on
unaudited 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 Product Ltd. published
management discussion and analysis of results of operations for fiscal year
ended March 31, 2007 (which is 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 the preliminary prospectus
referred to above under the headings "Non-GAAP Measures" and "Reconciliation
of Net Earnings to EBITDA and Adjusted EBITDA".

    %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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