BURNABY, BC, Aug. 10, 2018 /CNW/ - Taiga Building Products
Ltd. ("Taiga" or the "Company") (TSX: TBL) today reported its
financial results for the three and six months ended June 30, 2018.
Second Quarter Ended June 30,
2018 Earnings Results
Sales for the second quarter increased to $422.9 million from $379.8
million in the same quarter last year. The increase in sales
by $43.1 million or 11% was largely
due to higher selling prices for commodity products.
Gross margin dollars for the second quarter increased to
$39.4 million compared to
$33.7 million in the same quarter
last year. Gross margin percentage for the second quarter was
9.3% compared to 8.9% in the same quarter last year. The increase
in gross margin percentage was primarily due to higher commodity
prices in the current quarter compared to the same quarter last
year.
Net earnings for the quarter increased to $6.4 million from $5.0
million in the same quarter last year primarily due to
increased gross margin dollars.
EBITDA for the quarter ended June 30,
2018 was $16.1 million
compared to $14.3 million for the
same period last year.
Six Months Ended June 30,
2018 Earnings Results
Sales for the six months ended June 30,
2018 were $747.5 million
compared to $665.8 million over the
same period last year. The increase in sales by $81.7 million or 12% was largely due to higher
selling prices for commodity products.
Gross margin dollars for the six months ended June 30, 2018 increased to $70.2 million from $57.8
million over the same period last year. Gross margin
percentage for the six months ended June 30,
2018 increased to 9.4% from 8.7% for the same period last
year.
Net earnings for the six month period ended June 30, 2018 were $13.1
million compared to $5.3
million for the same period last year.
EBITDA for the six months ended June 30,
2018 increased to $27.6
million compared to $22.1
million for the same period last year.
Condensed Consolidated Statement of
Earnings
For the Three Months Ended
|
June 30,
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2018
|
2017
|
Sales
|
422,875
|
379,761
|
Gross
margin
|
39,428
|
33,677
|
Distribution
expense
|
6,012
|
5,480
|
Selling and
administration expense
|
18,558
|
15,081
|
Finance
expense
|
1,700
|
1,379
|
Subordinated debt
interest expense
|
219
|
4,509
|
Other
income
|
(104)
|
(84)
|
Earnings before
income taxes
|
13,043
|
7,312
|
Income tax
expense
|
6,685
|
2,283
|
Net
earnings
|
6,358
|
5,029
|
Net earnings per
share(1)
|
0.05
|
0.16
|
EBITDA(2)
|
16,128
|
14,280
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
June 30,
|
|
(in thousands of
Canadian dollars)
|
|
2018
|
2017
|
|
Net
earnings
|
|
6,685
|
5,029
|
|
Income tax
expense
|
|
6,358
|
2,283
|
|
Finance and
subordinated debt interest expense
|
|
1,919
|
5,888
|
|
Amortization
|
|
1,166
|
1,080
|
|
EBITDA
|
|
16,128
|
14,280
|
|
For the Six Months Ended
|
June 30,
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2018
|
2017
|
Sales
|
747,472
|
665,813
|
Gross
margin
|
70,186
|
57,841
|
Distribution
expense
|
11,895
|
11,200
|
Selling and
administration expense
|
33,138
|
27,125
|
Finance
expense
|
3,015
|
2,886
|
Subordinated debt
interest expense
|
399
|
9,019
|
Other
income
|
(200)
|
(325)
|
Earnings before
income taxes
|
21,939
|
7,936
|
Income tax
expense
|
8,791
|
2,658
|
Net
earnings
|
13,148
|
5,278
|
Net earnings per
share(1)
|
0.11
|
0.16
|
EBITDA(2)
|
27,647
|
22,064
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
June 30,
|
|
(in thousands of
Canadian dollars)
|
|
2018
|
2017
|
|
Net
earnings
|
|
13,148
|
5,278
|
|
Income tax
expense
|
|
8,791
|
2,658
|
|
Finance and
subordinated debt interest expense
|
|
3,414
|
11,905
|
|
Amortization
|
|
2,294
|
2,223
|
|
EBITDA
|
|
27,647
|
22,064
|
|
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 unaudited
condensed interim consolidated financial statements for the three
and six months ended June 30, 2018
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.