Taiga Announces Financial Results for the Three Months Ended June 30, 2016

Taiga Announces Financial Results for the Three Months Ended June 30, 2016

Canada NewsWire

BURNABY, BC, July 29, 2016

BURNABY, BC, July 29, 2016 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the three months ended June 30, 2016.

First Quarter Ended June 30, 2016 Earnings Results         

In December 2015, Taiga ceased certain operations relating to one of its business units.  This contributed to the $78.5 million or 19.4% decrease in sales from $404.0 million in the same quarter last year to $325.5 million in the current quarter and will result in lower sales for the current fiscal year.

The Company is taking measures to address this shortfall.  Meanwhile, Taiga has improved its gross margin percentage from 8.5% in the same quarter last year to 9.7% in the current quarter.  Nevertheless, the lower sales in the quarter resulted in a decrease in gross margin of $3.1 million from $34.5 million in the same quarter last year to $31.4 million in the current quarter.

Similarly, net earnings for the quarter decreased from $6.4 million in the same quarter last year to $4.8 million in the current quarter.

Taiga does not consider that the ceased operations were strategic to its overall business and annual financial results, and such operations did not constitute a material operating subsidiary or segment. Taiga's geographic and product segments remain unaltered following the cessation of such operations.    

Condensed Consolidated Statement of Earnings



For the Three Months Ended

June 30,

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

2016

2015

Sales

325,466

403,973

Gross margin

31,408

34,475

Distribution expense

5,431

5,200

Selling and administration expense

13,619

14,532

Finance expense

1,319

1,590

Subordinated debt interest expense

4,087

4,087

Other income

(115)

(125)

Earnings before income taxes

7,067

9,191

Income tax expense

2,305

2,751

Net earnings

4,762

6,440

Net earnings per share(1)

0.15

0.20

EBITDA(2)

13,491

15,910

 

The following is the reconciliation of net earnings to EBITDA:                                      



June 30,

(in thousands of Canadian dollars)

2016

2015

Net earnings


4,762

6,440

Income tax expense


2,305

2,751

Finance and subordinated debt interest expense


5,406

5,677

Amortization

1,018

1,042

EBITDA

13,491

15,910

 

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. For the disclosure of the manner in which EBITDA is calculated and reconciliation to net earnings refer to the "EBITDA" section of the Company's management's discussion and analysis which will be available shortly on SEDAR at www.sedar.com.

 

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 months ended June 30, 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.

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