Taiga's fiscal year 2016 margin improved to 8.6%

BURNABY, BC, June 17, 2016 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for fiscal year ended March 31, 2016.

Fiscal Year 2016 Earnings Results

The Company's consolidated net sales for the year ended March 31, 2016 were $1,364.3 million compared to $1,348.7 million for the last fiscal year. The 1.2% increase in sales was largely due to stronger demand in its US and export markets.

Gross margin for the fiscal year ended March 31, 2016 increased to $117.0 million from $115.0 million in the previous year. Gross margin percentage increased to 8.6% in the current year compared to 8.5% in the previous year.

Net earnings for the fiscal year ended March 31, 2016 increased to $11.7 million from $11.1 million last year primarily due to increased gross margin. EBITDA for the year ended March 31, 2016 was $45.0 million compared to $44.1 million last year.

Fourth Quarter Ended March 31, 2016 Earnings Results   

Sales for the fourth quarter decreased to $279.9 million from $294.3 million in the same quarter last year. The current year's fourth quarter was negatively impacted by decreased demand in Canada.

Gross margin for the fourth quarter was $24.0 million compared to $23.3 million in the same quarter last year. Gross margin percentage for the fourth quarter was 8.6% compared to 7.9% for the same quarter last year. The increase in gross margin was largely due to an increase in commodity prices. 

Net earnings for the fourth quarter was $0.7 million compared to a loss of ($0.6) million in the same quarter last year. This was primarily due to increased foreign exchange losses in the same quarter last year. EBITDA for the fourth quarter was $8.6 million compared to $6.7 million in the same quarter last year.

Dividend                  

In light of weaker economic forecasts in Canada and the impact of the housing market 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 2016 fiscal year's net earnings. The decision regarding the second instalment payment with respect to the 2016 fiscal year's net earnings will be addressed in early January 2017.

Condensed Consolidated Statement of Earnings


For the Fiscal Years Ended



March 31,

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

2016

2015

Sales

1,364,322

1,348,718

Gross margin

117,015

114,998

Distribution expense

21,380

21,116

Selling and administration expense

55,287

54,703

Finance expense

5,456

6,243

Subordinated debt interest expense

16,350

16,344

Other income

(466)

(719)

Earnings before income taxes

19,008

17,311

Income tax expense

7,288

6,231

Net earnings

11,720

11,080

Net earnings per share(1)

0.36

0.34

EBITDA(2)

45,035

44,057

 

The following is the reconciliation of net earnings to EBITDA:



March 31,


(in thousands of Canadian dollars)


2016

2015


Net earnings


11,720

11,080


Income tax expense


7,288

6,231


Finance and subordinated debt interest expense


21,806

22,587


Amortization


4,221

4,159


EBITDA


45,035

44,057







 

For the Three Months Ended


March 31,

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

2016

2015

Sales

279,882

294,321

Gross margin

24,005

23,312

Distribution expense

5,380

5,211

Selling and administration expense

11,168

13,170

Finance expense

1,293

1,480

Subordinated debt interest expense

4,088

4,077

Other income

(49)

(695)

Earnings before income tax

2,125

69

Income tax expense

1,410

635

Net (loss) earnings

715

(566)

Net (loss) earnings per share(1)

(0.02)

(0.02)

EBITDA(2)

8,566

6,703

 

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


March 31,

(in thousands of Canadian dollars)

2016

2015

Net (loss) earnings

715

(566)

Income tax expense

1,410

635

Finance and subordinated debt interest expense

5,381

5,557

Amortization

1,060

1,077

EBITDA

8,566

6,703

 

 

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, 2016 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


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