Taiga's (TBL) Q4 sales decreased 2%

BURNABY, BC, Feb. 21, 2020 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the period ended December 31, 2019.

Fourth Quarter Ended December 31, 2019 Earnings Results       

The Company's consolidated net sales for the quarter ended December 31, 2019 were $298.1 million compared to $303.9 million over the same quarter last year. The decrease in sales by $5.8 million or 2% was largely due to lower commodity prices.   

Gross margin for the quarter ended December 31, 2019 increased to $30.6 million from $24.0 million over the same quarter last year.  The increase in gross margin percentage was primarily due to inventory gains in the current quarter. 

Net earnings for the quarter ended December 31, 2019 were $5.8 million compared to net earnings of $1.5 million over the same quarter last year.

EBITDA for the quarter ended December 31, 2019 was $12.9 million compared to an EBITDA of $5.8 million for the same quarter last year. Management estimates that if IFRS 16 were not taken into effect as of January 1, 2019 that EBITDA would have been $1.7 million lower, or $11.2 million for the quarter ended December 31, 2019

Year Ended December 31, 2019 Earnings Results

Sales for the year ended December 31, 2019 were $1,299.1 million compared to $1,451.0 million in the prior year. The decrease in sales by $151.9 million or 10.5% was largely due to decreased selling prices for commodity products; this was offset by the inclusion of Exterior Wood Inc.'s results, which was acquired in July of 2018.

Gross margin dollars for the year ended December 31, 2019 increased to $129.5 million from $122.0 million over the same period last year.

Net earnings for the year ended December 31, 2019 were $25.9 million compared to $20.3 million in the prior year.

EBITDA for the year ended December 31, 2019 was $57.7 million compared to $42.7 million in the prior year. Management estimates that if IFRS 16 were not taken into effect as of January 1, 2019 that EBITDA would have been $6.7 million lower, or $51.0 million for the year ended December 31, 2019.

Condensed Consolidated Statement of Earnings
For the Three Months Ended
	December 31,
(in thousands of Canadian dollars, except for per share amounts)	2019	2018
Sales	$298,125	303,879
Gross margin	30,592	23,988
Distribution expense	6,223	6,826
Selling and administration expense	14,066	13,234
Finance expense	2,702	2,087
Subordinated debt interest expense	219	219
Other income	(80)	(105)
Earnings before income taxes	7,462	1,727
Income tax expense	1,699	187
Net earnings	$5,763	1,540
Net earnings per share^(1)	$0.05	0.01
EBITDA^(2)	12,874	5,795

The following is the reconciliation of net earnings to EBITDA:
	December 31,
(in thousands of Canadian dollars)	2019	2018
Net earnings	5,763	1,540
Income tax expense	1,699	187
Finance and subordinated debt interest expense	2,921	2,306
Amortization	2,491	1,762
EBITDA	12,874	5,795

Condensed Consolidated Statement of Earnings
For the Year Ended
	December 31,
(in thousands of Canadian dollars, except for per share amounts)	2019	2018
Sales	$1,299,122	1,450,985
Gross margin	129,456	122,031
Distribution expense	25,835	25,538
Selling and administration expense	56,940	59,892
Finance expense	10,157	7,193
Subordinated debt interest expense	875	837
Other income	(202)	(401)
Earnings before income taxes	35,851	28,972
Income tax expense	9,946	8,705
Net earnings	$25,905	20,267
Net earnings per share^(1)	$0.23	$0.17
EBITDA^(2)	57,675	42,669

The following is the reconciliation of net earnings to EBITDA:
	December 31,
(in thousands of Canadian dollars)	2019	2018
Net earnings	25,905	20,267
Income tax expense	9,946	8,705
Finance and subordinated debt interest expense	11,032	8,029
Amortization	10,791	5,668
EBITDA	57,675	42,669

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 year ended December 31, 2019 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.

regarding Taiga, please contact: Mark Schneidereit-Hsu, VP, Finance and Administration and CFO, Tel: [phone], Email: [email protected]