Taiga's Q3 sales and profits improve

BURNABY, BC, Feb. 5, 2015 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the three and nine months ended December 31, 2014.

Third Quarter Ended December 31, 2014 Earnings Results         

Sales for the quarter ended December 31, 2014 were $296.1 million compared to $264.1 million in the same period last year. The 12% increase in sales was primarily the result of stronger demand in all major markets, especially in Canada.   

Gross margin for the quarter ended December 31, 2014 increased to $24.2 million from $20.8 million over the same period last year. Gross margin percentage for the quarter increased to 8.2% compared to 7.9% in the same period last year. The gross margin percentage from last year's third quarter was negatively impacted by the increase in inventory reserve related to mark to market adjustments.

Taiga's net earnings (loss) for the quarter ended December 31, 2014 increased to $0.4 million from $(0.5) million over the same period last year.

EBITDA for the quarter ended December 31, 2014 was $7.5 million compared to $6.5 million for the same period last year.

Nine Months Ended December 31, 2014 Earnings Results

Sales for the nine months ended December 31, 2014 were $1,054.4 million compared to $944.8 million over the same period last year. The increase in sales by $109.6 million or 12% was primarily the result of stronger demand in all major markets. In addition, the first quarter's sales were positively impacted by the release of pent-up customer demand arising from the severe winter conditions experienced in the previous fiscal year.

Gross margin for the nine months ended December 31, 2014 increased to $91.7 million from $75.9 million over the same period last year. Gross margin percentage for the nine months increased to 8.7% compared to 8.0% over the same period last year. The gross margin percentage was lower in last year's period due to a steep decline in commodity prices.

Net earnings for the nine months period ended December 31, 2014 were $11.6 million compared to $5.0 million for the same period last year.

EBITDA for the nine months ended December 31, 2014 increased to $37.4 million compared to $28.8 million for the same period last year.

Condensed Consolidated Statement of Earnings

For the Three Months Ended


 December 31,

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

2014

2013

Sales

296,072

264,081

Gross margin

24,236

20,784

Distribution expense

5,567

4,707

Selling and administration expense

12,445

10,766

Finance expense

1,453

1,454

Subordinated debt interest expense

4,089

4,089

Other income

(207)

(143)

Earnings before income taxes

889

(89)

Income tax expense

481

426

Net earnings (loss)

408

(515)

Net earnings (loss) per share(1)

0.01

(0.02)

EBITDA(2)

7,504

6,483

 

The following is the reconciliation of net earnings to EBITDA:



 December 31,

(in thousands of Canadian dollars)


2014

2013

Net earnings


408

(515)

Income tax expense


481

426

Finance and subordinated debt interest expense


5,542

5,543

Amortization


1,073

1,029

EBITDA


7,504

6,483

 

For the Nine Months Ended


December 31,

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

2014

2013

Sales

1,054,397

944,808

Gross margin

91,686

75,930

Distribution expense

15,905

13,564

Selling and administration expense

41,533

37,223

Finance expense

4,763

5,301

Subordinated debt interest expense

12,267

12,267

Other income

(24)

(611)

Earnings before income taxes

17,242

8,186

Income tax expense

5,596

3,214

Net earnings

11,646

4,972

Net earnings per share(1)

0.36

0.15

EBITDA(2)

37,354

28,806

 

The following is the reconciliation of net earnings to EBITDA:



 December 31,

(in thousands of Canadian dollars)


2014

2013

Net earnings


11,646

4,972

Income tax expense


5,596

3,214

Finance and subordinated debt interest expense


17,030

17,568

Amortization


3,082

3,052

EBITDA


37,354

28,806

 

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 unaudited condensed interim consolidated financial statements for the three and nine months ended December 31, 2014 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: 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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