Taiga's fiscal year 2016 margin improved to 8.6%
Taiga's fiscal year 2016 margin improved to 8.6%
Canada NewsWire
BURNABY, BC, June 17, 2016
BURNABY, BC, June 17, 2016 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for fiscal year ended March 31, 2016.
Fiscal Year 2016 Earnings Results
The Company's consolidated net sales for the year ended March 31, 2016 were $1,364.3 million compared to $1,348.7 million for the last fiscal year. The 1.2% increase in sales was largely due to stronger demand in its US and export markets.
Gross margin for the fiscal year ended March 31, 2016 increased to $117.0 million from $115.0 million in the previous year. Gross margin percentage increased to 8.6% in the current year compared to 8.5% in the previous year.
Net earnings for the fiscal year ended March 31, 2016 increased to $11.7 million from $11.1 million last year primarily due to increased gross margin. EBITDA for the year ended March 31, 2016 was $45.0 million compared to $44.1 million last year.
Fourth Quarter Ended March 31, 2016 Earnings Results
Sales for the fourth quarter decreased to $279.9 million from $294.3 million in the same quarter last year. The current year's fourth quarter was negatively impacted by decreased demand in Canada.
Gross margin for the fourth quarter was $24.0 million compared to $23.3 million in the same quarter last year. Gross margin percentage for the fourth quarter was 8.6% compared to 7.9% for the same quarter last year. The increase in gross margin was largely due to an increase in commodity prices.
Net earnings for the fourth quarter was $0.7 million compared to a loss of ($0.6) million in the same quarter last year. This was primarily due to increased foreign exchange losses in the same quarter last year. EBITDA for the fourth quarter was $8.6 million compared to $6.7 million in the same quarter last year.
Dividend
In light of weaker economic forecasts in Canada and the impact of the housing market in Alberta, the Board of Directors has decided not to declare and pay the first instalment payment of its semi-annual dividend policy with respect to the 2016 fiscal year's net earnings. The decision regarding the second instalment payment with respect to the 2016 fiscal year's net earnings will be addressed in early January 2017.
|
Condensed Consolidated Statement of Earnings | ||
|
For the Fiscal Years Ended | ||
|
March 31, | ||
|
(in thousands of Canadian dollars, except for per share amounts) |
2016 |
2015 |
|
Sales |
1,364,322 |
1,348,718 |
|
Gross margin |
117,015 |
114,998 |
|
Distribution expense |
21,380 |
21,116 |
|
Selling and administration expense |
55,287 |
54,703 |
|
Finance expense |
5,456 |
6,243 |
|
Subordinated debt interest expense |
16,350 |
16,344 |
|
Other income |
(466) |
(719) |
|
Earnings before income taxes |
19,008 |
17,311 |
|
Income tax expense |
7,288 |
6,231 |
|
Net earnings |
11,720 |
11,080 |
|
Net earnings per share(1) |
0.36 |
0.34 |
|
EBITDA(2) |
45,035 |
44,057 |
The following is the reconciliation of net earnings to EBITDA:
|
March 31, |
|||||
|
(in thousands of Canadian dollars) |
2016 |
2015 |
|||
|
Net earnings |
11,720 |
11,080 |
|||
|
Income tax expense |
7,288 |
6,231 |
|||
|
Finance and subordinated debt interest expense |
21,806 |
22,587 |
|||
|
Amortization |
4,221 |
4,159 |
|||
|
EBITDA |
45,035 |
44,057 |
|||
|
For the Three Months Ended | ||
|
March 31, | ||
|
(in thousands of Canadian dollars, except for per share amounts) |
2016 |
2015 |
|
Sales |
279,882 |
294,321 |
|
Gross margin |
24,005 |
23,312 |
|
Distribution expense |
5,380 |
5,211 |
|
Selling and administration expense |
11,168 |
13,170 |
|
Finance expense |
1,293 |
1,480 |
|
Subordinated debt interest expense |
4,088 |
4,077 |
|
Other income |
(49) |
(695) |
|
Earnings before income tax |
2,125 |
69 |
|
Income tax expense |
1,410 |
635 |
|
Net (loss) earnings |
715 |
(566) |
|
Net (loss) earnings per share(1) |
(0.02) |
(0.02) |
|
EBITDA(2) |
8,566 |
6,703 |
The following is the reconciliation of net earnings (loss) to EBITDA:
|
March 31, | ||
|
(in thousands of Canadian dollars) |
2016 |
2015 |
|
Net (loss) earnings |
715 |
(566) |
|
Income tax expense |
1,410 |
635 |
|
Finance and subordinated debt interest expense |
5,381 |
5,557 |
|
Amortization |
1,060 |
1,077 |
|
EBITDA |
8,566 |
6,703 |
|
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 fiscal year ended March 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.
Please make the indicated changes including the new text: US quotes snapshot data provided by IEX. Additional price data and company information powered by Twelve Data.