Taiga Building Products Ltd. Announces third quarter performance



    BURNABY, BC, Jan. 30 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the
"Company") reported its results for the three and nine months ended
December 31, 2007.

    
       Results from Operations - Three Months Ended December 31, 2007
    

    Net losses for the three months ended December 31, 2007 were $1.9 million
or $0.06 per share compared to net earnings of $2.1 million or $0.07 per share
for the three months ended December 31, 2006.
    During the third quarter, Taiga discontinued its E.R.P I.T project and
recorded an impairment charge of $2.1 million. Despite this charge, steady
performance in the third quarter 2007 resulted in EBITDA of $4.3 million. In
the same quarter of fiscal 2007 Taiga's EBITDA performance was $9.9 million.
The third quarter prior year included Canada/US softwood refunds.
    Sales revenue for the three months ended December 31, 2007 was
$235.1 million compared to $232.2 million. Sales performance remained
relatively constant while benchmark average prices for lumber were 12.5% lower
versus the third quarter prior year. OSB prices were stable with intermittent
sales improvement, largely offsetting lumber weakness. Growth in the Company's
allied products has continued.
    Gross margin performance in the third quarter increased to $24.0 million
compared to $21.2 million for the third quarter 2007. Gross margin percentage
grew to 10.2% from 9.1% in the third quarter prior year.

    
        Results from Operations - Nine Months Ended December 31, 2007
    

    For the nine months ended December 31, 2007, net earnings were
$5.9 million or $0.18 per share compared to $6.8 million or $0.21 per share
for the nine months ended December 31, 2006.
    Sales revenue was $853.7 million to the third quarter ended December 31,
2007, compared to $865.5 million for the nine months year-to-date prior year.
The decline is primarily attributable to commodity product sales values.
    Gross margin for the nine month period increased 9.0% to $91.1 million
compared to $83.5 million for the same period in fiscal 2007. Gross margin
percentage for the period increased to 10.7% from 9.6%, as a result of Taiga's
continued focus on growth in allied products.
    EBITDA decreased to $30.8 million from $34.8 million over the previous
year.

    
               Comparative Consolidated Statement of Earnings

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

                                        December 31, 2007  December 31, 2006
    -------------------------------------------------------------------------

    Net sales                                 $   235,133        $   232,157
                                              -------------------------------
    Gross profit                                   23,998             21,167
    Expenses                                       18,588             16,341
    Interest - other                                1,741              1,704
                                              -------------------------------
    Operating income                                3,669              3,122
    Interest - sub note                             3,946              3,946
    Non-operating income (expense)                 (1,842)             4,555
                                              -------------------------------
    Net income (loss) before income tax            (2,119)             3,731
    Current income tax expense (recovery)            (222)             1,595
                                              -------------------------------
    Net earnings (loss)                       $    (1,897)       $     2,136
                                              -------------------------------

    EPS                                       $     (0.06)       $      0.07
    EBITDA(2)                                 $     4,305        $     9,941


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

                                        December 31, 2007  December 31, 2006
    -------------------------------------------------------------------------

    Net sales                                 $   853,660        $   865,536
                                              -------------------------------
    Gross profit                                   91,055             83,508
    Expenses                                       61,067             55,660
    Interest - other                                6,400              6,275
                                              -------------------------------
    Operating income                               23,588             21,573
    Interest - sub note                            11,837             15,044
    Non-operating income (expense)                 (1,296)             5,449
                                              -------------------------------
    Net income before income tax                   10,455             11,978
    Current income tax expense                      4,576              5,197
                                              -------------------------------
    Net earnings (loss)                       $     5,879        $     6,781
                                              -------------------------------

    EPS(1)                                    $      0.18        $      0.21
    EBITDA(2)                                 $    30,761        $    34,835

    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.
    

    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


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890