BURNABY, BC, Feb. 26, 2021 /CNW/ - Taiga Building
Products Ltd. ("Taiga" or the "Company") today reported its
financial results for the year ended December 31, 2020.
Fourth Quarter Ended December 31,
2020 Earnings Results
The Company's consolidated net sales for the quarter ended
December 31, 2020 were $411.3 million compared to $298.1 million over the same quarter last year.
The increase in sales by $113.2
million or 38% was largely due to higher selling prices on
commodities in the quarter ended December
31, 2020.
Gross margin for the quarter ended December 31, 2020 increased to $60.4 million from $30.6
million over the same quarter last year.
Net earnings for the quarter ended December 31, 2020 were $17.6 million compared to net earnings of
$5.8 million over the same quarter
last year.
EBITDA for the quarter ended December 31,
2020 was $29.4 million
compared to an EBITDA of $12.9
million for the same quarter last year.
Year Ended December 31,
2020 Earnings Results
Sales for the year ended December 31,
2020 were $1,589.1 million
compared to $1,299.1 million in the
prior year. The increase in sales by $290.0
million or 22% was largely due to increased selling prices
for commodity products.
Gross margin dollars for the year ended December 31, 2020 increased to $225.2 million from $129.5
million over the same period last year.
Net earnings for the year ended December
31, 2020 were $70.8 million
compared to $25.9 million in the
prior year.
EBITDA for the year ended December 31,
2020 was $116.9 million
compared to $57.7 million in the
prior year.
Management Update on the COVID-19 Pandemic
The 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 had the following impacts on the Company's
operations, among others: Sales declined by over 30% for the month
of April 2020, however subsequent to
this revenues have recovered and exceeded projections for the
remainder of 2020. 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, subsequent outbreaks,
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 for the foreseeable
future.
Condensed Consolidated Statement of
Earnings
For the Three Months Ended
|
December
31,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2020
|
2019
|
|
Sales
|
$411,283
|
$298,125
|
|
Gross
margin
|
60,361
|
30,592
|
|
Distribution
expense
|
7,439
|
6,223
|
|
Selling and
administration expense
|
26,602
|
14,066
|
|
Finance
expense
|
2,057
|
2,702
|
|
Subordinated debt
interest expense
|
219
|
219
|
|
Other
income
|
(28)
|
(80)
|
|
Earnings before
income taxes
|
24,072
|
7,462
|
|
Income tax
expense
|
6,437
|
1,699
|
|
Net
earnings
|
$17,635
|
$5,763
|
|
Net earnings per
share(1)
|
$0.16
|
$0.05
|
|
EBITDA(2)
|
29,410
|
12,874
|
The following is the reconciliation of net earnings to
EBITDA:
|
December
31,
|
|
(in thousands of
Canadian dollars)
|
2020
|
2019
|
|
Net
earnings
|
17,635
|
5,763
|
|
Income tax
expense
|
6,437
|
1,699
|
|
Finance and
subordinated debt interest expense
|
2,276
|
2,921
|
|
Amortization
|
3,062
|
2,491
|
|
EBITDA
|
29,410
|
12,874
|
Condensed Consolidated Statement of
Earnings
For the Year Ended
|
December
31,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2020
|
2019
|
|
Sales
|
$1,589,123
|
$1,299,122
|
|
Gross
margin
|
225,170
|
129,456
|
|
Distribution
expense
|
26,843
|
25,835
|
|
Selling and
administration expense
|
95,648
|
56,940
|
|
Finance
expense
|
8,450
|
10,157
|
|
Canada Emergency Wage
Subsidy
|
(2,919)
|
-
|
|
Subordinated debt
interest expense
|
875
|
875
|
|
Other
income
|
63
|
(202)
|
|
Earnings before
income taxes
|
96,210
|
35,851
|
|
Income tax
expense
|
25,384
|
9,946
|
|
Net
earnings
|
$70,826
|
$25,905
|
|
Net earnings per
share(1)
|
$0.64
|
$0.23
|
|
EBITDA(2)
|
116,904
|
57,675
|
The following is the reconciliation of net earnings to
EBITDA:
|
December
31,
|
|
(in thousands of
Canadian dollars)
|
2020
|
2019
|
|
Net
earnings
|
70,826
|
25,905
|
|
Income tax
expense
|
25,384
|
9,946
|
|
Finance and
subordinated debt interest expense
|
9,325
|
11,032
|
|
Amortization
|
11,369
|
10,791
|
|
EBITDA
|
116,904
|
57,675
|
|
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 audited
consolidated financial statements for the year ended December 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.