Taiga (TBL) Q1 results impacted by lower commodity prices

BURNABY, BC, May 5, 2023 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the three months ended March 31, 2023 and 2022.

First Quarter Ended March 31, 2023 Earnings Results

The Company's consolidated net sales for the quarter ended March 31, 2023 were $408.5 million compared to $612.7 million over the same period last year. The decrease in sales by $204.2 million or 33% was largely due to decreased selling prices for commodity products.

Gross margin for the quarter ended March 31, 2023 decreased to $47.1 million from $108.9 million over the same period last year. The decrease in gross margin was primarily due to lower commodity prices during the quarter.

Net earnings for the quarter ended March 31, 2023 decreased to $13.5 million from $39.5 million over the same period last year primarily due to decreased gross margin.

EBITDA for the quarter ended March 31, 2023 was $22.5 million compared to $58.6 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)	2023	2022
Sales	408,492	612,704
Gross margin	47,113	108,864
Distribution expense	8,024	7,331
Selling and administration expense	19,640	45,810
Finance expense	1,117	1,871
Subordinated debt interest expense	-	219
Other income	7	(53)
Earnings before income taxes	18,325	53,686
Income tax expense	4,809	14,186
Net earnings	13,516	39,500
Net earnings per share^(1)	0.12	0.37
EBITDA^(2)	22,521	58,528

The following is the reconciliation of net earnings to EBITDA:

		March 31,
(in thousands of Canadian dollars)		2023	2022
Net earnings		13,516	39,500
Income tax expense		4,809	14,186
Finance and subordinated debt interest expense		1,117	2,090
Amortization		3,079	2,752
EBITDA		22,521	58,528

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, 2023 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]