Taiga's fiscal year 2016 margin improved to 8.6%

BURNABY, BC, June 17, 2016 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for fiscal year ended March 31, 2016.

Fiscal Year 2016 Earnings Results

The Company's consolidated net sales for the year ended March 31, 2016 were $1,364.3 million compared to $1,348.7 million for the last fiscal year. The 1.2% increase in sales was largely due to stronger demand in its US and export markets.

Gross margin for the fiscal year ended March 31, 2016 increased to $117.0 million from $115.0 million in the previous year. Gross margin percentage increased to 8.6% in the current year compared to 8.5% in the previous year.

Net earnings for the fiscal year ended March 31, 2016 increased to $11.7 million from $11.1 million last year primarily due to increased gross margin. EBITDA for the year ended March 31, 2016 was $45.0 million compared to $44.1 million last year.

Fourth Quarter Ended March 31, 2016 Earnings Results   

Sales for the fourth quarter decreased to $279.9 million from $294.3 million in the same quarter last year. The current year's fourth quarter was negatively impacted by decreased demand in Canada.

Gross margin for the fourth quarter was $24.0 million compared to $23.3 million in the same quarter last year. Gross margin percentage for the fourth quarter was 8.6% compared to 7.9% for the same quarter last year. The increase in gross margin was largely due to an increase in commodity prices. 

Net earnings for the fourth quarter was $0.7 million compared to a loss of ($0.6) million in the same quarter last year. This was primarily due to increased foreign exchange losses in the same quarter last year. EBITDA for the fourth quarter was $8.6 million compared to $6.7 million in the same quarter last year.

Dividend                  

In light of weaker economic forecasts in Canada and the impact of the housing market in Alberta, the Board of Directors has decided not to declare and pay the first instalment payment of its semi-annual dividend policy with respect to the 2016 fiscal year's net earnings. The decision regarding the second instalment payment with respect to the 2016 fiscal year's net earnings will be addressed in early January 2017.

Condensed Consolidated Statement of Earnings
For the Fiscal Years Ended
	March 31,
(in thousands of Canadian dollars, except for per share amounts)	2016	2015
Sales	1,364,322	1,348,718
Gross margin	117,015	114,998
Distribution expense	21,380	21,116
Selling and administration expense	55,287	54,703
Finance expense	5,456	6,243
Subordinated debt interest expense	16,350	16,344
Other income	(466)	(719)
Earnings before income taxes	19,008	17,311
Income tax expense	7,288	6,231
Net earnings	11,720	11,080
Net earnings per share^(1)	0.36	0.34
EBITDA^(2)	45,035	44,057

The following is the reconciliation of net earnings to EBITDA:

		March 31,
(in thousands of Canadian dollars)		2016		2015
Net earnings		11,720		11,080
Income tax expense		7,288		6,231
Finance and subordinated debt interest expense		21,806		22,587
Amortization		4,221		4,159
EBITDA		45,035		44,057

For the Three Months Ended
	March 31,
(in thousands of Canadian dollars, except for per share amounts)	2016	2015
Sales	279,882	294,321
Gross margin	24,005	23,312
Distribution expense	5,380	5,211
Selling and administration expense	11,168	13,170
Finance expense	1,293	1,480
Subordinated debt interest expense	4,088	4,077
Other income	(49)	(695)
Earnings before income tax	2,125	69
Income tax expense	1,410	635
Net (loss) earnings	715	(566)
Net (loss) earnings per share^(1)	(0.02)	(0.02)
EBITDA^(2)	8,566	6,703

The following is the reconciliation of net earnings (loss) to EBITDA:

	March 31,
(in thousands of Canadian dollars)	2016	2015
Net (loss) earnings	715	(566)
Income tax expense	1,410	635
Finance and subordinated debt interest expense	5,381	5,557
Amortization	1,060	1,077
EBITDA	8,566	6,703

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 audited consolidated financial statements for the fiscal year ended March 31, 2016 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.

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