10:12:21 EST Sun 17 Nov 2019
Enter Symbol
or Name
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Taiga Building Products Ltd
Symbol TBL
Shares Issued 112,530,683
Close 2019-11-08 C$ 0.94
Recent Sedar Documents

Taiga Building Products earns $8.37-million in Q3 2019

2019-11-08 12:58 ET - News Release

Mr. Mark Schneidereit-Hsu reports

TAIGA'S (TBL) Q3 SALES DECREASED 10% DUE TO LOWER COMMODITY PRICES

Taiga Building Products Ltd. has released its financial results for the three and nine months ended Sept. 30, 2019.

Third quarter ended Sept. 30, 2019, earnings results

The company's consolidated net sales for the quarter ended Sept. 30, 2019, were $358.9-million, compared with $399.6-million over the same period last year. The decrease in sales by $40.7-million, or 10 per cent, was largely due to decreased selling prices for commodity products; this was offset by the inclusion of Exterior Wood Inc.'s results, which was acquired in July, 2018.

Gross margin for the third quarter increased to $36.5-million from $27.9-million in the same quarter last year. The increase in gross margin was primarily due to rising commodity prices in the current quarter, while they declined in the same quarter last year.

Net earnings for the quarter ended Sept. 30, 2019, increased to $8.4-million from $5.6-million for the same period last year, primarily due to the foregoing.

EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter ended Sept. 30, 2019, was $17.3-million, compared with $9.2-million for the same period last year. Management estimates that if IFRS 16 (international financial reporting standards) had not taken effect on Jan. 1, 2019, EBITDA would have been $2.5-million lower ($14.8-million) for the quarter ended Sept. 30, 2019.

Nine months ended Sept. 30, 2019, earnings results

Sales for the nine months ended Sept. 30, 2019, were $1,001-million, compared with $1,147.1-million over the same period last year. The decrease in sales by $146.1-million, or 13 per cent, was largely due to decreased selling prices for commodity products; this was offset by the inclusion of Exterior Wood's results, which was acquired in July, 2018.

Gross margin dollars for the nine months ended Sept. 30, 2019, increased to $98.9-million from $98-million over the same period last year. Gross margin percentage for the nine months ended Sept. 30, 2019, increased to 9.9 per cent from 8.5 per cent for the same period last year.

Net earnings for the nine-month period ended Sept. 30, 2019, were $20.1-million, compared with $18.7-million for the same period last year.

EBITDA for the nine months ended Sept. 30, 2019, was $44.8-million, compared with $36.9-million for the same period last year. Management estimates that if IFRS 16 had not taken effect on Jan. 1, 2019, EBITDA would have been $7.2-million lower ($37.6-million) for the nine months ended Sept. 30, 2019.

                 CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
            (in thousands of dollars, except for per-share amounts)          
                                                                                    
                                           For the three months ended Sept. 30,
                                                            2019          2018  
    
Sales                                                   $358,875      $399,634  
Gross margin                                              36,497        27,857    
Distribution expense                                       6,800         6,817     
Selling and administration expense                        15,264        13,520    
Finance expense                                            2,385         2,091     
Subordinated debt interest expense                           218           219       
Other income                                                 (30)          (96)      
Earnings before income taxes                              11,860         5,306     
Income tax expense (recovery)                              3,486          (273)     
Net earnings                                               8,374         5,579     
Net earnings per share                                      0.07          0.05      
EBITDA                                                    17,272         9,228     

The foregoing selected financial information is qualified in its entirety by, and should be read in conjunction with, the company's unaudited condensed interim consolidated financial statements for the three and nine months ended Sept. 30, 2019, the accompanying notes and management's discussion and analysis, which will be available shortly on SEDAR.

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