Taiga Building Products Ltd. Announces Steady Third Quarter Results
BURNABY, BC, Feb. 9, 2012 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its quarterly results for the three months ended December 31, 2011.
The Company's quarterly results for the three months ended December 31, 2011 are presented in accordance with International Financial Reporting Standards ("IFRS") and comparative information for the corresponding 2010 results have been restated accordingly.
Earnings Results - Three Months Ended December 31, 2011
The Company's consolidated net sales for the quarter ended December 31, 2011 were $203.1 million compared to $198.4 million during the same period last year, an increase of $4.7 million or 2.4%. Taiga continued to see a stronger demand for its product offering into the winter season compared to the same period last year.
Gross margin for the quarter ended December 31, 2011 was $18.6 million compared to $18.4 million over the same period last year. Gross margin percentage for the quarter was 9.2% compared to 9.3% over the same period last year. Stronger gross margin performance trends were muted by a one time inventory writedown of approximately $0.3 million.
Net loss for the quarter ended December 31, 2011 was $1.7 million compared to $1.2 million for the same period last year. The net loss increase was attributable to one time compensation and inventory writedowns of $0.6 million.
EBITDA for the quarter ended December 31, 2011 was $4.4 million compared to $5.1 million for the same period last year.
Earnings Results - Nine Months Ended December 31, 2011
Consolidated net sales for the nine months ended December 31, 2011 were $744.6 million compared to $753.5 million over the same period last year. The decrease was largely caused by a weaker performance in the first quarter due to lower commodity prices and poor weather. Taiga performed stronger in the second and third quarter as market demand recovered from a slow seasonal start.
Gross margin for the nine months ended December 31, 2011 increased to $73.3 million from $71.1 million over the same period last year. Gross margin percentage for the nine months increased to 9.8% from 9.4% during the same period last year. The increase was due to more stable commodity prices compared to the same period last year.
Net earnings for the nine month period ended December 31, 2011 were $5.2 million compared to $6.0 million during the same period last year. The decrease was due to higher operating expenses, and one-time inventory writeoffs, which were partially offset by strengthened gross margin.
For the nine month period ended December 31, 2011, EBITDA was $27.2 compared to $27.5 million over the same period last year.
Condensed Consolidated Statement of Earnings
For the Three Months Ended
(in thousands of Canadian dollars, except for per share amounts)
| December 31, | |||||||||||
| 2011 | 2010 | ||||||||||
| Sales | $203,050 | $198,415 | |||||||||
| Gross margin | 18,607 | 18,440 | |||||||||
| Distribution expense | 4,777 | 4,170 | |||||||||
| Selling and administration expense | 10,257 | 9,953 | |||||||||
| Finance expense | 1,355 | 1,285 | |||||||||
| Subordinated debt interest expense | 4,016 | 4,016 | |||||||||
| Other income | (42) | (24) | |||||||||
| Loss before income taxes | (1,756) | (960) | |||||||||
| Provision for (recovery of) income taxes | (13) | 283 | |||||||||
| Net loss | (1,743) | (1,243) | |||||||||
| Net loss per share(1) | (0.05) | (0.04) | |||||||||
| EBITDA(2) | 4,393 | 5,079 | |||||||||
The following is the reconciliation of net earnings to EBITDA:
| Three Months Ended December 31, |
||||
| (in thousands of Canadian dollars) | 2011 $ |
2010 $ |
||
| Net loss | (1,743) | (1,243) | ||
| Income taxes | (13) | 283 | ||
| Finance and subordinated debt interest expense | 5,371 | 5,301 | ||
| Amortization | 778 | 738 | ||
| EBITDA | 4,393 | 5,079 | ||
For the Nine Months Ended
(in thousands of Canadian dollars, except for per share amounts)
| December 31, | |||||||||||
| 2011 | 2010 | ||||||||||
| Sales | $744,648 | $753,547 | |||||||||
| Gross margin | 73,259 | 71,089 | |||||||||
| Distribution expense | 14,262 | 13,183 | |||||||||
| Selling and administration expense | 34,262 | 33,370 | |||||||||
| Finance expense | 4,402 | 3,723 | |||||||||
| Subordinated debt interest expense | 12,048 | 12,048 | |||||||||
| Other income | (64) | (758) | |||||||||
| Earnings before income taxes | 8,349 | 9,523 | |||||||||
| Provision for income taxes | 3,132 | 3,519 | |||||||||
| Net earnings | 5,217 | 6,004 | |||||||||
| Net earnings per share(1) | 0.16 | 0.19 | |||||||||
| EBITDA(2) | 27,164 | 27,527 | |||||||||
The following is the reconciliation of net earnings to EBITDA:
| Nine Months Ended December 31, |
||||
| (in thousands of Canadian dollars) | 2011 $ |
2010 $ |
||
| Net earnings | 5,217 | 6,004 | ||
| Income taxes | 3,132 | 3,519 | ||
| Finance and subordinated debt interest expense | 16,450 | 15,771 | ||
| Amortization | 2,365 | 2,233 | ||
| EBITDA | 27,164 | 27,527 | ||
Notes:
(1) EPS is earnings per share 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 interim consolidated financial statements for the quarter ended December 31, 2011 and accompanying notes and management's discussion and analysis which will be available shortly on Sedar at www.sedar.com.
Forward-Looking Statements:
This press release contains certain forward-looking information and statements relating, but not limited, to future events or performance and strategies and expectations of Taiga. Forward-looking information typically contains statements with words such as "consider", "anticipate", "believe", "expect", "plan", "intend", "likely", "may", "will", "should", "predict", "potential", "continue" or similar words suggesting future outcomes or statements regarding expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Examples of such forward looking statements within this press release include statements relating to: our anticipated results of operations, including cost reduction savings; our expectations regarding market conditions; the sufficiency of our cash requirements and our ability to remain in compliance with our debt covenants. Readers should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements.
These forward-looking statements reflect management's current expectations or beliefs and are based on information currently available to Taiga and although Taiga believes it has a reasonable basis for making the forward-looking statements included in this document, readers are cautioned not to place undue reliance on such forward-looking information. By its nature, the forward-looking information of Taiga involves numerous assumptions and inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts and other forward-looking statements will not occur. These risks include, but are not limited to, changes in business strategies; the effects of litigation, competition and pricing pressures; changes in operational costs; changes in laws and regulations, including tax, environmental, employment, competition, anti-terrorism and trade laws; and Taiga's anticipation of and success in managing the risks associated with the foregoing. A further description of these additional factors can be found in the periodic and other reports filed by Taiga with Canadian securities commissions and available on Sedar (http://www.sedar.com).These forward-looking statements speak only as of the date of this press release. Taiga does not undertake, and specifically disclaims, any obligation to update or revise any forward looking information, whether as a result of new information, future developments or otherwise, except as required by applicable law.
For further information regarding Taiga please contact:
Tom Stefan
CFO & Vice President, Finance and Administration
Phone: 604-438-1471
Fax: 604-439-4242
Mark Schneidereit
Manager, Corporate Planning
Phone: 604-438-1471
Fax: 604-439-4242
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