BURNABY, BC, May 10, 2019 /CNW/ - Taiga Building Products
Ltd. ("Taiga" or the "Company") today reported its financial
results for the three months ended March 31,
2019.
First Quarter Ended March 31,
2019 Earnings Results
The Company's consolidated net sales for the quarter ended
March 31, 2019 were $287.4 million compared to $324.6 million over the same period last year.
The decrease in sales by $37.2
million or 12% was largely due to decreased selling prices
for commodity products.
Gross margin for the quarter ended March
31, 2019 decreased to $27.5
million from $30.8 million
over the same period last year. The decrease in gross margin was
primarily due to lower commodity prices in the current quarter
compared to the same quarter last year.
Net earnings for the quarter ended March
31, 2019 decreased to $4.7
million from $6.8 million for
the same period last year primarily due to decreased gross
margin.
EBITDA for the quarter ended March 31,
2019 was $11.1 million
compared to $11.5 million for the
same period last year. Management estimates that if IFRS 16
were not taken into effect as of January 1,
2019 that EBITDA would have been $1.3M lower, or $9.8M for the quarter ended March 31, 2019.
Condensed
Consolidated Statement of Earnings
|
|
For the Three Months
Ended
|
|
March 31,
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2019
|
2018
|
Sales
|
287,399
|
324,597
|
Gross
margin
|
27,457
|
30,758
|
Distribution
expense
|
5,921
|
5,883
|
Selling and
administration expense
|
13,178
|
14,580
|
Finance
expense
|
2,230
|
1,315
|
Subordinated debt
interest expense
|
219
|
180
|
Other
income
|
(37)
|
(96)
|
Earnings before
income taxes
|
5,946
|
8,896
|
Income tax
expense
|
1,249
|
2,106
|
Net
earnings
|
4,697
|
6,790
|
Net earnings per
share(1)
|
0.04
|
0.06
|
EBITDA(2)
|
11,116
|
11,519
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
March 31,
|
(in thousands of
Canadian dollars)
|
|
2019
|
2018
|
Net
earnings
|
|
4,697
|
6,790
|
Income tax
expense
|
|
1,249
|
2,106
|
Finance and
subordinated debt interest expense
|
|
2,449
|
1,495
|
Amortization
|
|
2,721
|
1,128
|
EBITDA
|
|
11,116
|
11,519
|
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. For the
disclosure of the manner in which EBITDA is calculated and
reconciliation to net earnings refer to the "EBITDA" section of the
Company's management's discussion and analysis which will be
available shortly on SEDAR at www.sedar.com.
|
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
months ended March 31, 2019 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.