Taiga Q1 Results - Higher commodity prices drive sales growth by 13%

BURNABY, BC, May 4, 2018 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the three months ended March 31, 2018.

First Quarter Ended March 31, 2018 Earnings Results

Sales for the first quarter increased to $324.6 million from $286.1 million over the same quarter last year.  The increase in sales by $38.5 million or 13% was largely due to higher selling prices for commodity products.

Gross margin dollars for the first quarter increased to $30.8 million compared to $24.2 million in the same quarter last year.  The increase in gross margin was primarily due to higher commodity prices in current quarter compared to the same quarter last year.

Taiga's net earnings for the quarter ended March 31, 2018 increased to $6.8 million from $0.2 million over the same period last year.

EBITDA for the quarter ended March 31, 2018 was $11.5 million compared to $7.8 million for the same period last year.   

Condensed Consolidated Statement of Earnings
For the Three Months Ended
	March 31,
(in thousands of Canadian dollars, except for per share amounts)	2018	2017
Sales	324,597	286,052
Gross margin	30,758	24,164
Distribution expense	5,883	5,720
Selling and administration expense	14,580	12,044
Finance expense	1,315	1,507
Subordinated debt interest expense	180	4,510
Other income	(96)	(241)
Earnings before income taxes	8,896	624
Income tax expense	2,106	375
Net earnings	6,790	249
Net earnings per share^(1)	0.06	0.01
EBITDA^(2)	11,519	7,784

The following is the reconciliation of net earnings to EBITDA:	March 31,
(in thousands of Canadian dollars)	2018	2017
Net earnings	6,790	249
Income tax expense	2,106	375
Finance and subordinated debt interest expense	1,495	6,017
Amortization	1,128	1,143
EBITDA	11,519	7,784

	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 March 31, 2018 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.

Mark Schneidereit-Hsu, CFO and VP, Finance & Administration, Tel: [phone], Email: [email protected]

Related Links

http://www.taigabuilding.com/