BURNABY, BC, Aug. 8, 2019 /CNW/ - Taiga Building Products Ltd.
("Taiga" or the "Company") today reported its financial results for
the three and six months ended June 30,
2019.
Second Quarter Ended June 30,
2019 Earnings Results
The Company's consolidated net sales for the quarter ended
June 30, 2019 were $354.7 million compared to $422.9 million over the same period last year.
The decrease in sales by $68.2
million or 16% 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 of
2018.
Gross margin for the second quarter decreased to $34.9 million from $39.4
million in the same quarter 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; this was offset by
the inclusion of Exterior Wood Inc.'s results, which was acquired
in July of 2018.
Net earnings for the quarter ended June
30, 2019 increased to $7.1
million from $6.4 million for
the same period last year primarily due to the foregoing.
EBITDA for the quarter ended June 30,
2019 was $16.4 million
compared to $16.1 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 $1.7M lower, or $14.7M for the quarter ended June 30, 2019.
Six Months Ended June 30,
2019 Earnings Results
Sales for the six months ended June 30,
2019 were $642.1 million
compared to $747.5 million over the
same period last year. The decrease in sales by $105.4 million or 14% 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 of 2018.
Gross margin dollars for the six months ended June 30, 2019 decreased to $62.4 million from $70.2
million over the same period last year. Gross margin
percentage for the six months ended June 30,
2019 increased to 9.7% from 9.4% for the same period last
year.
Net earnings for the six month period ended June 30, 2019 were $11.8
million compared to $13.1
million for the same period last year.
EBITDA for the six months ended June 30,
2019 was $27.5 million
compared to $27.6 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 $3.0M lower, or $24.5M for the six months ended June 30, 2019.
Condensed
Consolidated Statement of Earnings
|
For the Three Months
Ended
|
|
June 30,
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2019
|
2018
|
Sales
|
354,723
|
422,875
|
Gross
margin
|
34,910
|
39,428
|
Distribution
expense
|
6,891
|
6,012
|
Selling and
administration expense
|
14,432
|
18,558
|
Finance
expense
|
2,840
|
1,700
|
Subordinated debt
interest expense
|
219
|
219
|
Other
income
|
(55)
|
(104)
|
Earnings before
income taxes
|
10,583
|
13,043
|
Income tax
expense
|
3,512
|
6,685
|
Net
earnings
|
7,071
|
6,358
|
Net earnings per
share(1)
|
0.06
|
0.05
|
EBITDA(2)
|
16,412
|
16,128
|
The following is the reconciliation of net earnings to
EBITDA:
|
June 30,
|
(in thousands of
Canadian dollars)
|
2019
|
2018
|
Net
earnings
|
7,071
|
6,358
|
Income tax
expense
|
3,512
|
6,685
|
Finance and
subordinated debt interest expense
|
3,059
|
1,919
|
Amortization
|
2,770
|
1,166
|
EBITDA
|
16,412
|
16,128
|
For the Six Months
Ended
|
|
June 30,
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2019
|
2018
|
Sales
|
642,122
|
747,472
|
Gross
margin
|
62,367
|
70,186
|
Distribution
expense
|
12,812
|
11,895
|
Selling and
administration expense
|
27,610
|
33,138
|
Finance
expense
|
5,070
|
3,015
|
Subordinated debt
interest expense
|
438
|
399
|
Other
income
|
(92)
|
(200)
|
Earnings before
income taxes
|
16,529
|
21,939
|
Income tax
expense
|
4,761
|
8,791
|
Net
earnings
|
11,768
|
13,148
|
Net earnings per
share(1)
|
0.10
|
0.11
|
EBITDA(2)
|
27,528
|
27,647
|
The following is the reconciliation of net earnings to
EBITDA:
|
June 30,
|
(in thousands of
Canadian dollars)
|
2019
|
2018
|
Net
earnings
|
11,768
|
13,148
|
Income tax
expense
|
4,761
|
8,791
|
Finance and
subordinated debt interest expense
|
5,508
|
3,414
|
Amortization
|
5,491
|
2,294
|
EBITDA
|
27,528
|
27,647
|
|
|
|
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
and six months ended June 30, 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.