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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