Taiga's Q3 sales down 1.2% but gross margin improved to 8.5%

BURNABY, BC, Feb. 11, 2016 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the three and nine months ended December 31, 2015.

Third Quarter Ended December 31, 2015 Earnings Results          

Sales for the quarter ended December 31, 2015 were $292.5 million compared to $296.1 million in the same period last year. The decrease in sales by $3.6 million or 1.2% was primarily the result of decreased demand in Canada.   

Gross margin for the quarter ended December 31, 2015 increased to $25.0 million from $24.2 million over the same period last year. Gross margin percentage for the quarter increased to 8.5% compared to 8.2% in the same period last year. The gross margin percentage for the current quarter was impacted by improved margins in several product lines.

Taiga's net earnings (loss) for the quarter ended December 31, 2015 decreased to $(0.1) million from $0.4 million over the same period last year.

EBITDA for the quarter ended December 31, 2015 was $7.7 million compared to $7.5 million for the same period last year.

Nine Months Ended December 31, 2015 Earnings Results

Sales for the nine months ended December 31, 2015 were $1,084.4 million compared to $1,054.4 million over the same period last year. The increase in sales by $30.0 million or 2.8% was largely due to higher sales from US and export operations selling into the United States.

Gross margin for the nine months ended December 31, 2015 increased to $93.0 million from $91.7 million over the same period last year. Gross margin percentage for the nine months ended December 31, 2015 decreased to 8.6% compared to 8.7% over the same period last year. The gross margin percentage was lower in the current nine month period due to a decline in commodity prices.

Net earnings for the nine months ended December 31, 2015 were $11.0 million compared to $11.6 million for the same period last year.

EBITDA for the nine months ended December 31, 2015 decreased to $36.5 million compared to $37.4 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)

2015

2014

Sales

292,476

296,072

Gross margin

24,967

24,236

Distribution expense

5,392

5,567

Selling and administration expense

13,175

12,445

Finance expense

1,262

1,453

Subordinated debt interest expense

4,087

4,089

Other income

(193)

(207)

Earnings before income taxes

1,244

889

Income tax expense

1,297

481

Net earnings (loss)

(53)

408

Net earnings (loss) per share(1)

0.00

0.01

EBITDA(2)

7,656

7,504

The following is the reconciliation of net earnings to EBITDA:



December 31,

(in thousands of Canadian dollars)


2015

2014

Net earnings (loss)


(53)

408

Income tax expense


1,297

481

Finance and subordinated debt interest expense


5,349

5,542

Amortization


1,063

1,073

EBITDA


7,656

7,504






 

For the Nine Months Ended



        December 31,

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

2015

2014

Sales

1,084,440

1,054,397

Gross margin

93,010

91,686

Distribution expense

16,000

15,905

Selling and administration expense

44,119

41,533

Finance expense

4,163

4,763

Subordinated debt interest expense

12,262

12,267

Other income

(417)

(24)

Earnings before income taxes

16,883

17,242

Income tax expense

5,878

5,596

Net earnings

11,005

11,646

Net earnings per share(1)

0.34

0.36

EBITDA(2)

36,469

37,354

The following is the reconciliation of net earnings to EBITDA:



          December 31,

(in thousands of Canadian dollars)


2015

2014

Net earnings


11,005

11,646

Income tax expense


5,878

5,596

Finance and subordinated debt interest expense


16,425

17,030

Amortization


3,161

3,082

EBITDA


36,469

37,354

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, 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, VP, Finance & Administration and CFO, Tel: 604.438.1471, Email: mschneidereit@taigabuilding.com


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