BURNABY, BC, Nov. 8, 2019 /CNW/ - Taiga Building Products Ltd.
("Taiga" or the "Company") today reported its financial results for
the three and nine months ended September
30, 2019.
Third Quarter Ended September 30,
2019 Earnings
Results
The Company's consolidated net sales for the quarter ended
September 30, 2019 were $358.9 million compared to $399.6 million over the same period last year.
The decrease in sales by $40.7
million or 10% 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 third quarter increased to $36.5 million from $27.9
million in the same quarter last year. The increase in gross
margin was primarily due to rising commodity prices in the current
quarter, while they declined in the same quarter last year.
Net earnings for the quarter ended September 30, 2019 increased to $8.4 million from $5.6
million for the same period last year primarily due to the
foregoing.
EBITDA for the quarter ended September
30, 2019 was $17.3 million
compared to $9.2 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 $2.5
million lower, or $14.8
million for the quarter ended September 30, 2019.
Nine Months Ended September 30,
2019 Earnings Results
Sales for the nine months ended September
30, 2019 were $1,001.0 million
compared to $1,147.1 million over the
same period last year. The decrease in sales by $146.1 million or 13% 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 nine months ended September 30, 2019 increased to $98.9 million from $98.0
million over the same period last year. Gross margin
percentage for the nine months ended September 30, 2019 increased to 9.9% from 8.5%
for the same period last year.
Net earnings for the nine month period ended September 30, 2019 were $20.1 million compared to $18.7 million for the same period last year.
EBITDA for the nine months ended September 30, 2019 was $44.8 million compared to $36.9 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 $7.2 million lower, or
$37.6 million for the nine months
ended September 30,
2019.
Condensed
Consolidated Statement of Earnings
|
|
For the Three Months
Ended
|
|
|
|
September
30,
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2019
|
2018
|
Sales
|
$358,875
|
$399,634
|
Gross
margin
|
36,497
|
27,857
|
Distribution
expense
|
6,800
|
6,817
|
Selling and
administration expense
|
15,264
|
13,520
|
Finance
expense
|
2,385
|
2,091
|
Subordinated debt
interest expense
|
218
|
219
|
Other
income
|
(30)
|
(96)
|
Earnings before
income taxes
|
11,860
|
5,306
|
Income tax expense
(recovery)
|
3,486
|
(273)
|
Net
earnings
|
8,374
|
5,579
|
Net earnings per
share(1)
|
0.07
|
0.05
|
EBITDA(2)
|
17,272
|
9,228
|
|
|
The following is the
reconciliation of net earnings to EBITDA:
|
|
|
|
September
30,
|
(in thousands of
Canadian dollars)
|
2019
|
2018
|
Net
earnings
|
8,373
|
5,579
|
Income tax expense
(recovery)
|
3,486
|
(273)
|
Finance and
subordinated debt interest expense
|
2,604
|
2,310
|
Amortization
|
2,809
|
1,611
|
EBITDA
|
17,272
|
9,228
|
|
|
For the Nine Months
Ended
|
|
September
30,
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2019
|
2018
|
Sales
|
$1,000,997
|
$1,147,106
|
Gross
margin
|
98,864
|
98,043
|
Distribution
expense
|
19,612
|
18,712
|
Selling and
administration expense
|
42,874
|
46,658
|
Finance
expense
|
7,455
|
5,106
|
Subordinated debt
interest expense
|
656
|
618
|
Other
income
|
(122)
|
(296)
|
Earnings before
income taxes
|
28,389
|
27,245
|
Income tax
expense
|
8,247
|
8,518
|
Net
earnings
|
20,142
|
18,727
|
Net earnings per
share(1)
|
0.18
|
0.16
|
EBITDA(2)
|
44,800
|
36,875
|
|
|
The following is the
reconciliation of net earnings to
EBITDA:
|
|
|
|
September
30,
|
(in thousands of
Canadian dollars)
|
2019
|
2018
|
Net
earnings
|
20,142
|
18,727
|
Income tax
expense
|
8,247
|
8,518
|
Finance and
subordinated debt interest expense
|
8,111
|
5,724
|
Amortization
|
8,300
|
3,906
|
EBITDA
|
44,800
|
36,875
|
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 nine months ended September 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.