Taiga's Q3 sales down 5%

BURNABY, BC, Feb. 9, 2017 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the three and nine months ended December 31, 2016.

Third Quarter Ended December 31, 2016 Earnings Results         

Sales for the third quarter decreased to $277.4 million from $292.5 million over the same quarter last year. The decrease in sales by $15.1 million or 5% was largely due to the ceased operations relating to one of the Company's business units. 

Gross margin dollars for the third quarter decreased to $22.2 million compared to $25.0 million in the same quarter last year.  Gross margin percentage for the third quarter was 8.0% compared to 8.5% in the same quarter last year. The decrease in gross margin percentage was primarily due to commodity prices declining in the current quarter compared to an appreciation in the same quarter last year. 

Taiga's net earnings (loss) for the quarter ended December 31, 2016 decreased to $(0.2) million from $(0.1) million over the same period last year.

EBITDA for the quarter ended December 31, 2016 was $7.4 million compared to $7.7 million for the same period last year.   

Nine Months Ended December 31, 2016 Earnings Results

Sales for the nine months ended December 31, 2016 were $937.9 million compared to $1,084.4 million over the same period last year. The decrease in sales by $146.5 million or 14% was largely due to the ceased operations relating to one of the Company's business units. 

Gross margin dollars for the nine months ended December 31, 2016 decreased to $83.1 million from $93.0 million over the same period last year. Gross margin percentage for the nine months ended December 31, 2016 increased to 8.9% compared to 8.6% over the same period last year. The gross margin percentage was higher in the current period due to an increase in commodity prices.

Net earnings for the nine month period ended December 31, 2016 were $7.7 million compared to $11.0 million for the same period last year.

EBITDA for the nine months ended December 31, 2016 decreased to $32.2 million compared to $36.5 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)

2016

2015

Sales

277,408

292,476

Gross margin

22,202

24,967

Distribution expense

5,560

5,392

Selling and administration expense

10,436

13,175

Finance expense

1,150

1,262

Subordinated debt interest expense

4,087

4,087

Other income

(145)

(193)

Earnings before income taxes

1,114

1,244

Income tax expense

1,274

1,297

Net earnings (loss)

(160)

(53)

Net earnings (loss) per share(1)

0.00

0.00

EBITDA(2)

7,425

7,656

 

The following is the reconciliation of net earnings to EBITDA:


 December 31,

(in thousands of Canadian dollars)

2016

2015

Net earnings (loss)

(160)

(53)

Income tax expense

1,274

1,297

Finance and subordinated debt interest expense

5,237

5,349

Amortization

1,074

1,063

EBITDA

7,425

7,656

 

For the Nine Months Ended




        December 31,

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

2016

2015

Sales

937,926

1,084,440

Gross margin

83,103

93,010

Distribution expense

16,624

16,000

Selling and administration expense

37,723

44,119

Finance expense

3,697

4,163

Subordinated debt interest expense

12,262

12,262

Other income

(378)

(417)

Earnings before income taxes

13,175

16,883

Income tax expense

5,434

5,878

Net earnings

7,741

11,005

Net earnings per share(1)

0.24

0.34

EBITDA(2)

32,245

36,469

 

The following is the reconciliation of net earnings to EBITDA:



          December 31,

(in thousands of Canadian dollars)


2016

2015

Net earnings


7,741

11,005

Income tax expense


5,434

5,878

Finance and subordinated debt interest expense


15,959

16,425

Amortization


3,111

3,161

EBITDA


32,245

36,469

 

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

RELATED LINKS
http://www.taigabuilding.com/

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