BURNABY, BC, May 7, 2021 /CNW/ - Taiga Building Products Ltd.
("Taiga" or the "Company") today reported its financial results for
the three months ended March 31,
2021.
First Quarter Ended March 31,
2021 Earnings Results
The Company's consolidated net sales for the quarter ended
March 31, 2021 were $535.9 million compared to $320.3 million over the same period last year.
The increase in sales by $215.6
million or 67% was largely due to increased selling prices
for commodity products.
Gross margin for the quarter ended March
31, 2021 increased to $90.4
million from $30.6 million
over the same period last year. The increase in gross margin was
primarily due to rising commodity prices during the quarter.
Net earnings for the quarter ended March
31, 2021 increased to $29.2
million from $6.6 million over
the same period last year primarily due to increased gross
margin.
EBITDA for the quarter ended March 31,
2021 was $45.1 million
compared to $13.1 million for the
same period last 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 have had the following impacts on the Company's
operations, among others: sales declined by over 30% early on in
the pandemic (April 2020) but have
since recovered and exceeded expectations both in fiscal 2020 and
so far in fiscal 2021. The pandemic has increased demand for
detached housing which combined with record high commodity prices
and low borrowing rates has had a positive impact on Taiga's
business. The extent to which these events may continue to 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, the
rate at which vaccines are administered, the effectiveness of
vaccines against the coronavirus and its mutations, subsequent
outbreaks, business disruptions, and the effectiveness of actions
taken in Canada, the United States and other countries to
contain and treat the disease. These events are highly
uncertain and as such, the Company cannot predict with any
certainty how the progression of the coronavirus pandemic and these
events will ultimately impact the Company's financial performance
in 2021.
Condensed Consolidated Statement of Earnings
For the
Three Months Ended
|
March 31
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2021
|
2020
|
|
Sales
|
535,918
|
320,279
|
|
Gross
margin
|
90,358
|
30,553
|
|
Distribution
expense
|
7,054
|
6,400
|
|
Selling and
administration expense
|
44,075
|
13,764
|
|
Finance
expense
|
1,673
|
2,277
|
|
Subordinated debt
interest expense
|
219
|
219
|
|
Other
income
|
(54)
|
(31)
|
|
Earnings before
income taxes
|
40,310
|
7,924
|
|
Income tax
expense
|
11,134
|
1,311
|
|
Net
earnings
|
29,176
|
6,613
|
|
Net earnings per
share(1)
|
0.27
|
0.06
|
|
EBITDA(2)
|
45,107
|
13,092
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
March 31,
|
|
(in thousands of
Canadian dollars)
|
|
2021
|
2020
|
|
Net
earnings
|
|
29,176
|
6,613
|
|
Income tax
expense
|
|
11,134
|
1,311
|
|
Finance and
subordinated debt interest expense
|
|
1,891
|
2,496
|
|
Amortization
|
|
2,906
|
2,673
|
|
EBITDA
|
|
45,107
|
13,092
|
|
|
|
|
|
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, 2021 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.