TAIGA'S (TBL) SECOND QUARTER RESULTS IMPACTED BY LOWER VOLUME SALES

BURNABY, BC, Aug. 12, 2024 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the three and six months ended June 30, 2024.

Second Quarter Ended June 30, 2024 Earnings Results

Sales for the quarter ended June 30, 2024 were $427.8 million compared to $446.9 million over the same period last year. The decrease in sales by $19.1 million or 4% was largely due to selling lower quantities of commodity products.

Gross margin for the quarter ended June 30, 2024 decreased to $44.5 million from $52.4 million over the same period last year. Gross margin percentage was 10.4% for the three months ended June 30, 2024 compared to 11.7% over the same period last year. The decrease in gross margin dollars was primarily due to selling lower quantities of commodity products during the quarter combined with fluctuating commodity prices.

Net earnings for the quarter ended June 30, 2024 decreased to $13.9 million from $17.0 million over the same period last year primarily due to decreased gross margin dollars.

EBITDA for the quarter ended June 30, 2024 was $22.7 million compared to $28.0 million for the same period last year. EBITDA decreased primarily due to lower margin dollars earned during the quarter.

Six Months Ended June 30, 2024 Earnings Results

Sales for the six months ended June 30, 2024 were $821.5 million compared to $855.4 million over the same period last year. The decrease in sales by $33.9 million or 4% was largely due to the Company selling lower quantities of commodity products.

Gross margin for the six months ended June 30, 2024 decreased to $86.5 million from $99.5 million over the same period last year. Gross margin percentage was 10.5% for the six months ended June 30, 2024 compared to 11.6% over the same period last year.  These decreases were primarily due to fluctuating commodity prices combined with selling less quantities of commodity products during the period.

Net earnings for the six months ended June 30, 2024 were $26.7 million compared to $30.5 million for the same period last year primarily due to decreased gross margin.

EBITDA for the six months ended June 30, 2024 was $42.5 million compared to $50.5 million for the same period last year.  EBITDA decreased primarily due to lower margin dollars earned during the period.

Condensed Consolidated Statement of Earnings

For the Three Months Ended

	June 30,
(in thousands of Canadian dollars, except for per share amounts)	2024	2023
Sales	427,824	446,902
Gross margin	44,466	52,431
Distribution expense	8,461	7,859
Selling and administration expense	16,784	19,558
Finance expense	857	1,512
Other (income) expense	(36)	(40)
Earnings before income taxes	18,400	23,542
Income tax expense	4,467	6,551
Net earnings	13,933	16,991
Net earnings per share^(1)	0.13	0.16
EBITDA^(2)	22,704	27,983

The following is the reconciliation of net earnings to EBITDA:

		June 30,
(in thousands of Canadian dollars)		2024	2023
Net earnings		13,933	16,991
Income tax expense		4,467	6,551
Finance and subordinated debt interest expense		857	1,512
Amortization		3,447	2,929
EBITDA		22,704	27,983

For the Six Months Ended

	June 30,
(in thousands of Canadian dollars, except for per share amounts)	2024	2023
Sales	821,454	855,394
Gross margin	86,465	99,544
Distribution expense	16,454	15,883
Selling and administration expense	34,014	39,198
Finance expense	199	2,629
Other income	(74)	(33)
Earnings before income taxes	35,872	41,867
Income tax expense	9,178	11,360
Net earnings	26,694	30,507
Net earnings per share^(1)	0.25	0.28
EBITDA^(2)	42,542	50,504

The following is the reconciliation of net earnings to EBITDA:

		June 30,
(in thousands of Canadian dollars)		2024	2023
Net earnings		26,694	30,507
Income tax expense		9,178	11,360
Finance and subordinated debt interest expense		199	2,629
Amortization		6,471	6,008
EBITDA		42,542	50,504

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 three and six months ended June 30, 2024 and accompanying notes and management's discussion and analysis which will be available shortly on SEDAR+ at www.sedarplus.ca.

SOURCE Taiga Building Products Ltd.

For further information regarding Taiga, please contact: Mark Schneidereit-Hsu, CFO and VP, Finance & Administration, Tel: [phone], Email: [email protected]