BURNABY, BC, Feb. 21, 2020 /CNW/ - Taiga Building Products
Ltd. ("Taiga" or the "Company") today reported its financial
results for the period ended December 31,
2019.
Fourth Quarter Ended December 31,
2019 Earnings
Results
The Company's consolidated net sales for the quarter ended
December 31, 2019 were $298.1 million compared to $303.9 million over the same quarter last year.
The decrease in sales by $5.8 million
or 2% was largely due to lower commodity prices.
Gross margin for the quarter ended December 31, 2019 increased to $30.6 million from $24.0
million over the same quarter last year. The increase
in gross margin percentage was primarily due to inventory gains in
the current quarter.
Net earnings for the quarter ended December 31, 2019 were $5.8 million compared to net earnings of
$1.5 million over the same quarter
last year.
EBITDA for the quarter ended December 31,
2019 was $12.9 million
compared to an EBITDA of $5.8 million
for the same quarter last year. Management estimates that if IFRS
16 were not taken into effect as of January
1, 2019 that EBITDA would have been $1.7 million lower, or $11.2 million for the quarter ended December 31, 2019
Year Ended December 31,
2019 Earnings Results
Sales for the year ended December 31,
2019 were $1,299.1 million
compared to $1,451.0 million in the
prior year. The decrease in sales by $151.9
million or 10.5% 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 year ended December 31, 2019 increased to $129.5 million from $122.0
million over the same period last year.
Net earnings for the year ended December
31, 2019 were $25.9 million
compared to $20.3 million in the
prior year.
EBITDA for the year ended December 31,
2019 was $57.7 million
compared to $42.7 million in the
prior year. Management estimates that if IFRS 16 were not taken
into effect as of January 1, 2019
that EBITDA would have been $6.7
million lower, or $51.0
million for the year ended December
31, 2019.
Condensed
Consolidated Statement of Earnings
|
|
For the Three Months
Ended
|
|
|
|
December
31,
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2019
|
2018
|
Sales
|
$298,125
|
303,879
|
Gross
margin
|
30,592
|
23,988
|
Distribution
expense
|
6,223
|
6,826
|
Selling and
administration expense
|
14,066
|
13,234
|
Finance
expense
|
2,702
|
2,087
|
Subordinated debt
interest expense
|
219
|
219
|
Other
income
|
(80)
|
(105)
|
Earnings before
income taxes
|
7,462
|
1,727
|
Income tax
expense
|
1,699
|
187
|
Net
earnings
|
$5,763
|
1,540
|
Net earnings per
share(1)
|
$0.05
|
0.01
|
EBITDA(2)
|
12,874
|
5,795
|
The following is the
reconciliation of net earnings to EBITDA:
|
|
|
|
December
31,
|
(in thousands of
Canadian dollars)
|
2019
|
2018
|
Net
earnings
|
5,763
|
1,540
|
Income tax
expense
|
1,699
|
187
|
Finance and
subordinated debt interest expense
|
2,921
|
2,306
|
Amortization
|
2,491
|
1,762
|
EBITDA
|
12,874
|
5,795
|
Condensed
Consolidated Statement of Earnings
|
|
For the Year
Ended
|
|
|
|
December 31,
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2019
|
2018
|
Sales
|
$1,299,122
|
1,450,985
|
Gross
margin
|
129,456
|
122,031
|
Distribution
expense
|
25,835
|
25,538
|
Selling and
administration expense
|
56,940
|
59,892
|
Finance
expense
|
10,157
|
7,193
|
Subordinated debt
interest expense
|
875
|
837
|
Other
income
|
(202)
|
(401)
|
Earnings before
income taxes
|
35,851
|
28,972
|
Income tax
expense
|
9,946
|
8,705
|
Net
earnings
|
$25,905
|
20,267
|
Net earnings per
share(1)
|
$0.23
|
$0.17
|
EBITDA(2)
|
57,675
|
42,669
|
The following is the
reconciliation of net earnings to EBITDA:
|
|
|
|
December
31,
|
(in thousands of
Canadian dollars)
|
2019
|
2018
|
Net
earnings
|
25,905
|
20,267
|
Income tax
expense
|
9,946
|
8,705
|
Finance and
subordinated debt interest expense
|
11,032
|
8,029
|
Amortization
|
10,791
|
5,668
|
EBITDA
|
57,675
|
42,669
|
|
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, 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.