Taiga's Q2 sales down 14% but margin percentage holds steady at 8.8%
Taiga's Q2 sales down 14% but margin percentage holds steady at 8.8%
Canada NewsWire
BURNABY, BC, Nov. 3, 2016
BURNABY, BC, Nov. 3, 2016 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the three and six months ended September 30, 2016.
Second Quarter Ended September 30, 2016 Earnings Results
Sales for the second quarter decreased to $335.1 million from $388.0 million in the same quarter last year. The decrease in sales by $52.9 million or 14% was largely due to the ceased operations relating to one of the Company's business units.
Gross margin dollars for the second quarter decreased to $29.5 million compared to $33.6 million in the same quarter last year. Gross margin percentage for the second quarter was 8.8% compared to 8.7% in the same quarter last year. The increase in gross margin percentage was primarily due to higher commodity prices in the current quarter compared to the same quarter last year.
Net earnings for the quarter decreased to $3.1 million from $4.6 million in the same quarter last year primarily due to decreased gross margin dollars.
EBITDA for the quarter ended September 30, 2016 was $11.3 million compared to $12.9 million for the same period last year.
Six Months Ended September 30, 2016 Earnings Results
Sales for the six months ended September 30, 2016 were $660.5 million compared to $792.0 million over the same period last year. The decrease in sales by $131.5 million or 17% was largely due to the ceased operations relating to one of the Company's business units.
Gross margin dollars for the six months ended September 30, 2016 decreased to $60.9 million from $68.0 million over the same period last year. Gross margin percentage for the six months ended September 30, 2016 increased to 9.2% 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 six month period ended September 30, 2016 were $7.9 million compared to $11.1 million for the same period last year.
EBITDA for the six months ended September 30, 2016 decreased to $24.8 million compared to $28.8 million for the same period last year.
Condensed Consolidated Statement of Earnings
For the Three Months Ended
|
September 30, | ||
|
(in thousands of Canadian dollars, except for per share amounts) |
2016 |
2015 |
|
Sales |
335,052 |
387,991 |
|
Gross margin |
29,493 |
33,568 |
|
Distribution expense |
5,633 |
5,408 |
|
Selling and administration expense |
13,668 |
16,412 |
|
Finance expense |
1,228 |
1,311 |
|
Subordinated debt interest expense |
4,088 |
4,088 |
|
Other income |
(118) |
(99) |
|
Earnings before income taxes |
4,994 |
6,448 |
|
Income tax expense |
1,855 |
1,830 |
|
Net earnings |
3,139 |
4,618 |
|
Net earnings per share(1) |
0.10 |
0.14 |
|
EBITDA(2) |
11,329 |
12,903 |
The following is the reconciliation of net earnings to EBITDA:
|
September 30, |
||||
|
(in thousands of Canadian dollars) |
2016 |
2015 |
||
|
Net earnings |
3,139 |
4,618 |
||
|
Income tax expense |
1,855 |
1,830 |
||
|
Finance and subordinated debt interest expense |
5,316 |
5,399 |
||
|
Amortization |
1,019 |
1,056 |
||
|
EBITDA |
11,329 |
12,903 |
||
For the Six Months Ended
|
September 30, | ||
|
(in thousands of Canadian dollars, except for per share amounts) |
2016 |
2015 |
|
Sales |
660,518 |
791,964 |
|
Gross margin |
60,901 |
68,043 |
|
Distribution expense |
11,064 |
10,608 |
|
Selling and administration expense |
27,287 |
30,944 |
|
Finance expense |
2,547 |
2,901 |
|
Subordinated debt interest expense |
8,175 |
8,175 |
|
Other income |
(233) |
(224) |
|
Earnings before income taxes |
12,061 |
15,639 |
|
Income tax expense |
4,160 |
4,581 |
|
Net earnings |
7,901 |
11,058 |
|
Net earnings per share(1) |
0.24 |
0.34 |
|
EBITDA(2) |
24,820 |
28,813 |
The following is the reconciliation of net earnings to EBITDA:
|
September 30, |
||||
|
(in thousands of Canadian dollars) |
2016 |
2015 |
||
|
Net earnings |
7,901 |
11,058 |
||
|
Income tax expense |
4,160 |
4,581 |
||
|
Finance and subordinated debt interest expense |
10,722 |
11,076 |
||
|
Amortization |
2,037 |
2,098 |
||
|
EBITDA |
24,820 |
28,813 |
||
|
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 six months ended September 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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