BURNABY, BC, Nov. 7, 2013 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the three and six months ended September 30, 2013.
Three Months Ended September 30, 2013
The Company's consolidated net sales for the quarter ended September 30, 2013 were $344.9 million compared to $315.9 million in the same period last year. The increase in sales by $29.0 million or 9.2% was largely due to higher sales from US and export operations selling into the United States and Asian markets.
Gross margin for the quarter ended September 30, 2013 increased to $29.7 million from $28.9 million in the same period last year. Gross margin percentage for the quarter declined to 8.6% compared to 9.1% in the same period last year. The gross margin percentage from last year's second quarter was higher due to a significant appreciation in OSB prices.
Net earnings for the quarter ended September 30, 2013 remained relatively consistent at $4.0 million compared to $3.8 million in the same period last year.
EBITDA for the quarter ended September 30, 2013 also remained relatively consistent at $12.7 million compared to $12.9 million in the same period last year.
Six Months Ended September 30, 2013
The Company's consolidated net sales for the six months ended September 30, 2013 were $680.7 million compared to $625.4 million in the same period last year. The 8.8% increase in sales was largely due to higher sales from US and export operations selling into the United States and Asian markets.
Gross margin for the six months ended September 30, 2013 decreased to $55.1 million from $59.7 million in the previous year. Gross margin percentage for the six months declined to 8.1% compared to 9.5% in the same period last year. This decline was primarily due to lower gross margin percentage on sales of commodity products since commodity prices declined significantly during the first quarter.
Net earnings for the six months ended September 30, 2013 decreased to $5.5 million compared to $9.7 million in the same period last year primarily due to lower gross margin dollars and higher selling and administrative expenses.
EBITDA for the six months ended September 30, 2013 decreased to $22.3 million compared to $28.3 million last year primarily due to lower net earnings.
| Condensed Consolidated Statement of Earnings | ||
| For the Three Months Ended | ||
| September 30, | ||
| (in thousands of Canadian dollars, except for per share amounts) | 2013 | 2012 |
| Sales | 344,924 | 315,925 |
| Gross margin | 29,722 | 28,897 |
| Distribution expense | 4,441 | 4,683 |
| Selling and administration expense | 13,653 | 12,486 |
| Finance expense | 1,769 | 1,780 |
| Subordinated debt interest expense | 4,089 | 4,071 |
| Other income | (85) | (89) |
| Earnings before income taxes | 5,855 | 5,966 |
| Income tax expense | 1,881 | 2,178 |
| Net earnings | 3,974 | 3,788 |
| Net earnings per share(1) | 0.12 | 0.12 |
| EBITDA(2) | 12,732 | 12,903 |
The following is the reconciliation of net earnings to EBITDA:
| September 30, | |||||
| (in thousands of Canadian dollars) | 2013 | 2012 | |||
| Net earnings | 3,974 | 3,788 | |||
| Income tax expense | 1,881 | 2,178 | |||
| Finance and subordinated debt interest expense | 5,858 | 5,851 | |||
| Amortization | 1,019 | 1,086 | |||
| EBITDA | 12,732 | 12,903 | |||
| For the Six Months Ended | ||
| September 30, | ||
| (in thousands of Canadian dollars, except for per share amounts) | 2013 | 2012 |
| Sales | 680,727 | 625,433 |
| Gross margin | 55,146 | 59,653 |
| Distribution expense | 8,857 | 9,207 |
| Selling and administration expense | 26,457 | 24,499 |
| Finance expense | 3,847 | 3,683 |
| Subordinated debt interest expense | 8,178 | 8,142 |
| Other income | (468) | (349) |
| Earnings before income taxes | 8,275 | 14,471 |
| Income tax expense | 2,788 | 4,766 |
| Net earnings | 5,487 | 9,705 |
| Net earnings per share(1) | 0.17 | 0.30 |
| EBITDA(2) | 22,323 | 28,328 |
The following is the reconciliation of net earnings to EBITDA:
| September 30, | |||||
| (in thousands of Canadian dollars) | 2013 | 2012 | |||
| Net earnings | 5,487 | 9,705 | |||
| Income tax expense | 2,788 | 4,766 | |||
| Finance and subordinated debt interest expense | 12,025 | 11,825 | |||
| Amortization | 2,023 | 2,032 | |||
| EBITDA | 22,323 | 28,328 | |||
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, 2013 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
CFO and VP, Finance & Administration
Tel: 604.438.1471
Email: [email protected]