BURNABY, BC, Feb. 22, 2019 /CNW/ - Taiga Building
Products Ltd. ("Taiga" or the "Company") today reported its
financial results for the period ended December 31, 2018.
Fourth Quarter Ended December 31,
2018 Earnings Results
The Company's consolidated net sales for the quarter ended
December 31, 2018 were $303.9 million compared to $329.8 million over the same quarter last year.
The decrease in sales by $25.9
million or 8.0% was largely due to decreased demand for the
Company's products in all segments and lower commodity prices.
Gross margin for the quarter ended December 31, 2018 decreased to $24.0 million from $27.4
million over the same quarter last year. Gross margin
percentage decreased to 7.9% in the current quarter compared to
8.3% in the same quarter last year. The decrease in gross margin
percentage was primarily due to commodity prices falling in the
current quarter.
Net earnings for the quarter ended December 31, 2018 were $1.5 million compared to a loss of $15.2 million over the same period last
year. The net loss in the same period last year would have
been net earnings of $3.4 million if
the $18.6 million loss on the debt
settlement were excluded.
EBITDA for the quarter ended December 31,
2018 was $5.8 million compared
to an EBITDA of ($9.1) million for
the same quarter last year. EBITDA would have been
$9.4 million during the same quarter
last year if the $18.6 million loss
on the debt settlement were excluded.
Condensed
Consolidated Statement of Earnings
|
|
For the Three Months
Ended
|
|
December
31,
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2018
|
2017
|
Sales
|
303,879
|
329,821
|
Gross
margin
|
23,988
|
27,358
|
Distribution
expense
|
6,826
|
5,753
|
Selling and
administration expense
|
13,234
|
13,451
|
Loss on debt
settlement
|
-
|
18,570
|
Finance
expense
|
2,087
|
1,140
|
Subordinated debt
interest expense
|
219
|
2,534
|
Other
income
|
(105)
|
(132)
|
Earnings before
income taxes
|
1,727
|
(13,958)
|
Income tax
expense
|
187
|
1,237
|
Net earnings
(loss)
|
1,540
|
(15,195)
|
Net earnings (loss)
per share(1)
|
0.01
|
(0.20)
|
EBITDA(2)
|
5,795
|
(9,142)
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
December
31,
|
(in thousands of
Canadian dollars)
|
|
2018
|
2017
|
Net earnings
(loss)
|
|
1,540
|
(15,195)
|
Income tax
expense
|
|
187
|
1,237
|
Finance and
subordinated debt interest expense
|
|
2,306
|
3,674
|
Amortization
|
|
1,762
|
1,142
|
EBITDA
|
|
5,795
|
(9,142)
|
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
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 audited
consolidated financial statements for the year ended December 31, 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.