Taiga's fiscal year 2015 sales have increased by 12.9%

BURNABY, BC, June 18, 2015 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for fiscal year ended March 31, 2015.

Fiscal Year 2015 Earnings Results

The Company's consolidated net sales for the year ended March 31, 2015 were $1,348.7 million compared to $1,194.3 million for the last fiscal year. The 12.9% increase in sales was largely due to stronger demand in all major markets, especially in Canada.

Gross margin for the fiscal year ended March 31, 2015 increased to $115.0 million from $96.8 million in the previous year, representing an increase in gross margin percentage to 8.5% in the year compared to 8.1% in the previous year. The gross margin percentage was lower in the previous fiscal year due to a steep decline in commodity prices.  

Net earnings for the fiscal year ended March 31, 2015 increased to $11.1 million from $5.1 million last year primarily due to increased gross margin. EBITDA for the year ended March 31, 2015 was $44.1 million compared to $36.8 million last year.

Fourth Quarter Ended March 31, 2015 Earnings Results   

Sales for the fourth quarter increased to $294.3 million from $249.5 million in the same quarter last year. The previous year's fourth quarter was negatively impacted by the severe winter conditions in central and eastern regions of North America.

Gross margin for the fourth quarter was $23.3 million compared to $20.9 million in the same quarter last year.  Gross margin percentage for the fourth quarter was 7.9% compared to 8.4% for the same quarter last year. 

Net loss for the fourth quarter was ($0.6) million compared to net earnings of $0.1 million in the same quarter last year primarily due to increased foreign exchange losses. EBITDA for the fourth quarter was $6.7 million compared to $8.0 million in the same quarter last year.

Dividend                  

In light of weaker economic forecasts in Canada and concerns about market outlook in Alberta, the Board of Directors has decided not to declare and pay the first instalment payment of its semi-annual dividend policy with respect to the 2015 fiscal year's net earnings. The decision regarding the second instalment payment with respect to the 2015 fiscal year's net earnings will be addressed in early January 2016.

Condensed Consolidated Statement of Earnings



For the Fiscal Years Ended


March 31,

(in thousands of Canadian dollars, except for per share amounts)

2015

2014

Sales

1,348,718

1,194,259

Gross margin

114,998

96,810

Distribution expense

21,116

18,773

Selling and administration expense

54,703

48,594

Finance expense

6,243

7,003

Subordinated debt interest expense

16,344

16,356

Other income

(719)

(3,081)

Earnings before income taxes

17,311

9,165

Income tax expense

6,231

4,089

Net earnings

11,080

5,076

Net earnings per share(1)

0.34

0.16

EBITDA(2)

44,057

36,824

The following is the reconciliation of net earnings to EBITDA:



March 31,


(in thousands of Canadian dollars)


2015

2014


Net earnings


11,080

5,076


Income tax expense


6,231

4,089


Finance and subordinated debt interest expense


22,587

23,359


Amortization


4,159

4,300


EBITDA


44,057

36,824


 

For the Three Months Ended




March 31,

(in thousands of Canadian dollars, except for per share amounts)

2015

2014

Sales

294,321

249,451

Gross margin

23,312

20,880

Distribution expense

5,211

5,209

Selling and administration expense

13,170

11,371

Finance expense

1,480

1,702

Subordinated debt interest expense

4,077

4,089

Other income

(695)

(2,470)

Earnings before income tax

69

979

Income tax expense

635

875

Net (loss) earnings

(566)

104

Net (loss) earnings per share(1)

(0.02)

0.00

EBITDA(2)

6,703

8,018

The following is the reconciliation of net earnings (loss) to EBITDA:


March 31,

(in thousands of Canadian dollars)

2015

2014

Net (loss) earnings

(566)

104

Income tax expense

635

875

Finance and subordinated debt interest expense

5,557

5,791

Amortization

1,077

1,248

EBITDA

6,703

8,018

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

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, 2015 and accompanying notes and management's discussion and analysis which will be available shortly on SEDAR at www.sedar.com.

SOURCE Taiga Building Products Ltd.

For further information: regarding Taiga, please contact: Mark Schneidereit-Hsu, CFO and VP, Finance & Administration, Tel: 604.438.1471, Email: mschneidereit@taigabuilding.com


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