BURNABY, BC, May 7, 2020 /CNW/ - Taiga Building Products Ltd.
("Taiga" or the "Company") today reported its financial results for
the three months ended March 31,
2020.
First Quarter Ended March 31,
2020 Earnings Results
The Company's consolidated net sales for the quarter ended
March 31, 2020 were $320.3 million compared to $287.4 million over the same period last year.
The increase in sales by $32.9
million or 11% was largely due to increased selling prices
for commodity products.
Gross margin for the quarter ended March
31, 2020 increased to $30.6
million from $27.5 million
over the same period last year. The increase in gross margin was
primarily due to higher sales.
Net earnings for the quarter ended March
31, 2020 increased to $6.6
million from $4.7 million over
the same period last year primarily due to increased gross
margin.
EBITDA for the quarter ended March 31,
2020 was $13.1 million
compared to $11.1 million for the
same period last year.
Management Update on the COVID-19 Pandemic
The recent outbreak of the coronavirus, also known as
"COVID-19", has spread across the globe and is impacting worldwide
economic activity. Conditions surrounding the coronavirus continue
to rapidly evolve and government authorities have implemented
emergency measures to mitigate the spread of the virus. As at the
financial statement approval date, the outbreak and the related
mitigation measures have had the following impacts on the Company's
operations, among others: sales decline of approximately 30%. The
extent to which these events may impact the Company's business
activities will depend on future developments, such as the ultimate
geographic spread of the disease, the duration of the outbreak,
travel restrictions, business disruptions, and the effectiveness of
actions taken in Canada and other
countries to contain and treat the disease. These events are
highly uncertain and as such, the Company cannot determine the
ultimate financial impacts at this time. However, the Company
recognizes that there will be economic and financial challenges to
be faced for the balance of the fiscal year.
Condensed Consolidated Statement of
Earnings
For the Three Months Ended
|
March 31,
|
(in thousands of Canadian dollars, except for per share
amounts) |
2020
|
2019
|
Sales
|
320,279
|
287,399
|
Gross
margin
|
30,553
|
27,457
|
Distribution
expense
|
6,400
|
5,805
|
Selling and
administration expense
|
13,764
|
13,329
|
Finance
expense
|
2,277
|
2,230
|
Subordinated debt
interest expense
|
219
|
219
|
Other
income
|
(31)
|
(37)
|
Earnings before
income taxes
|
7,924
|
5,910
|
Income tax
expense
|
1,311
|
1,249
|
Net
earnings
|
6,613
|
4,661
|
Net earnings per
share(1)
|
0.06
|
0.04
|
EBITDA(2)
|
13,092
|
11,080
|
The following is the reconciliation of net earnings to
EBITDA:
|
March 31,
|
(in thousands of
Canadian dollars)
|
2020
|
2019
|
Net
earnings
|
6,613
|
4,661
|
Income tax
expense
|
1,311
|
1,249
|
Finance and
subordinated debt interest expense
|
2,496
|
2,449
|
Amortization
|
2,673
|
2,721
|
EBITDA
|
13,092
|
11,080
|
|
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, 2020 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.