Taiga's net profit up by 39% for the 6 months ended September 30, 2012

BURNABY, BC, Nov. 8, 2012 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its quarterly results for the three and six months ended September 30, 2012.

Three Months Ended September 30, 2012

The Company's consolidated net sales for the quarter ended September 30, 2012 were $315.9 million compared to $278.0 million in the same period last year. The 13.6% increase in sales was largely due to higher commodity prices.

Gross margin for the quarter ended September 30, 2012 increased to $28.9 million from $27.9 million in the previous year. Gross margin percentage for the quarter declined to 9.1% compared to 10.1% in the same period last year. The decline in gross margin percentage was primarily due to changes in product mix towards increased commodity volumes.

Net earnings for the quarter ended September 30, 2012 were $3.8 million compared to $3.3 million in the same period last year, an increase of 14.2%.

EBITDA for the quarter ended September 30, 2012 was $12.9 million compared to $11.4 million last year, an increase of 13.5%.

Six Months Ended September 30, 2012

The Company's consolidated net sales for the six months ended September 30, 2012 were $625.4 million compared to $541.6 million in the same period last year. The 15.5% increase in sales was largely due to higher commodity prices and stronger demand fueled by early arrival of spring this year compared to the same period last year.

Gross margin for the six months ended September 30, 2012 increased to $59.7 million from $54.7 million in the previous year. Gross margin percentage for the quarter declined to 9.5% compared to 10.1% in the same period last year.

Net earnings for the six months ended September 30, 2012 were $9.7 million compared to $7.0 million in the same period last year, an increase of 39.4%. Higher gross margin dollars were partially offset by higher compensation costs included in selling and administrative expense.

EBITDA for the six months ended September 30, 2012 was $28.3 million compared to $23.6 million last year, an increase of 20.0%.

Condensed Consolidated Statement of Earnings

For the Three Months Year Ended
(in thousands of Canadian dollars, except for per share amounts)

		September 30,
		2012				2011
		$				$
Sales		315,925				277,992
Gross margin		28,897				27,947
Distribution expense		4,683				4,739
Selling and administration expense		12,486				12,905
Finance expense		1,780				1,748
Subordinated debt interest expense		4,071				4,016
Other income		(89)				(101)
Earnings before income taxes		5,966				4,640
Provision for income taxes		2,178				1,324
Net earnings		3,788				3,316
Net earnings per share^(1)		0.12				0.10
EBITDA^(2)		12,903				11,370

The following is the reconciliation of net earnings to EBITDA:

	September 30,
(in thousands of Canadian dollars)	2012 $			2011 $
Net earnings	3,788			3,316
Income taxes	2,178			1,324
Finance and subordinated debt interest expense	5,851			5,764
Amortization	1,086			966
EBITDA	12,903			11,370

For the Six Months Year Ended
(in thousands of Canadian dollars, except for per share amounts)

	September 30,
	2012 $				2011 $
Sales	625,433				541,598
Gross margin	59,653				54,652
Distribution expense	9,207				9,168
Selling and administration expense	24,499				24,005
Finance expense	3,683				3,477
Subordinated debt interest expense	8,142				8,032
Other income	(349)				(135)
Earnings before income taxes	14,471				10,105
Provision for income taxes	4,766				3,145
Net earnings	9,705				6,960
Net earnings per share^(1)	0.30				0.21
EBITDA^(2)	28,328				23,598

The following is the reconciliation of net earnings to EBITDA: 

	September 30,
(in thousands of Canadian dollars)	2012 $			2011 $
Net earnings	9,705			6,960
Income taxes	4,766			3,145
Finance and subordinated debt interest expense	11,825			11,509
Amortization	2,032			1,984
EBITDA	28,328			23,598

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 condensed interim consolidated financial statements for the quarter ended June 30, 2012 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.

 

 

 

SOURCE: Taiga Building Products Ltd.

For further information regarding Taiga please contact: 

Tom Stefan
CFO & Vice President, Finance and Administration
Phone: [phone]
Fax:     [phone]

Mark Schneidereit
Manager, Corporate Planning
Phone: [phone]
Fax:     [phone]