BURNABY, BC, Feb. 23, 2018 /CNW/ - Taiga Building Products
Ltd. ("Taiga" or the "Company") today reported its financial
results for the period ended December 31,
2017.
Third Quarter Ended December 31,
2017 Earnings
Results
The Company's consolidated net sales for the quarter ended
December 31, 2017 were $329.8 million compared to $277.4 million over the same quarter last year.
The increase in sales by $52.4
million or 18.9% was largely due to increased demand for the
Company's products in all segments and higher commodity prices.
Gross margin for the quarter ended December 31, 2017 increased to $27.4 million from $22.2
million over the same quarter last year. Gross margin
percentage increased to 8.3% in the current quarter compared to
8.0% in the same quarter last year. The increase in gross margin
percentage was primarily due to commodity prices appreciating in
the current quarter.
Net earnings for the quarter ended December 31, 2017 were a net loss of $15.2 million compared to a loss of $0.2 million over the same period last
year. During the quarter, there was an $18.6 million non-cash loss on the settlement of
debt as a result of the Exchange Offer.
EBITDA for the quarter ended December 31,
2017 was ($9.1) million
compared to an EBITDA of $7.4 million
for the same quarter last year. EBITDA would be $9.4 million if the $18.6
million loss on the debt settlement were excluded.
Taiga's board rescinds dividend policy
Taiga's board has rescinded Taiga's dividend policy set on
October 15, 2008. Taiga's board
has adopted a new corporate strategy to focus on reinvesting
capital into innovation and other growth opportunities as they
arise.
Condensed
Consolidated Statement of Earnings
|
|
For the Three Months
Ended
|
|
December
31,
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2017
|
2016
|
Sales
|
329,821
|
277,408
|
Gross
margin
|
27,358
|
22,202
|
Distribution
expense
|
5,753
|
5,560
|
Selling and
administration expense
|
13,451
|
10,436
|
Loss on debt
settlement
|
18,570
|
-
|
Finance
expense
|
1,140
|
1,150
|
Subordinated debt
interest expense
|
2,534
|
4,087
|
Other
income
|
(132)
|
(145)
|
Earnings before
income taxes
|
(13,958)
|
1,114
|
Income tax
expense
|
1,237
|
1,274
|
Net loss
|
(15,195)
|
(160)
|
Net loss per
share(1)
|
(0.20)
|
0.00
|
EBITDA(2)
|
(9,142)
|
7,425
|
The following is the reconciliation of net earnings to
EBITDA:
|
December
31,
|
(in thousands of
Canadian dollars)
|
2017
|
2016
|
Net loss
|
(15,195)
|
(160)
|
Income tax
expense
|
1,237
|
1,274
|
Finance and
subordinated debt interest expense
|
3,674
|
5,237
|
Amortization
|
1,142
|
1,074
|
EBITDA
|
(9,142)
|
7,425
|
There was an $18.6 million
non-cash loss on the settlement of debt due to the Exchange
Offer. If this unusual item were excluded for the quarter
ending December 31, 2017 than the
EBITDA results would be:
|
December
31,
|
(in thousands of
Canadian dollars)
|
2017
|
Net loss
|
(15,195)
|
Loss on debt
settlement
|
18,570
|
Income tax
expense
|
1,237
|
Finance and
subordinated debt interest expense
|
3,674
|
Amortization
|
1,142
|
Adjusted
EBITDA
|
9,428
|
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 n
et 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 nine month period ended
December 31, 2017 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.