BURNABY, BC, Aug. 13, 2021 /CNW/ - Taiga Building Products
Ltd. ("Taiga" or the "Company") today reported its financial
results for the three and six months ended June 30, 2021.
Second Quarter Ended June 30,
2021 Earnings Results
Sales for the quarter ended June 30,
2021 were $786.7 million
compared to $356.9 million over the
same period last year. The increase in sales by $429.8 million or 120% was largely due to
increased selling prices for commodity products.
Gross margin for the quarter ended June
30, 2021 increased to $147.9
million from $42.7 million
over the same period last year. Gross margin percentage was 18.8%
for the three months ended June 30,
2021 compared to 12.0% in the same period last year. These
increases were primarily due to rising commodity prices
Net earnings for the quarter ended June
30, 2021 increased to $58.5
million from $7.1 million over
the same period last year primarily due to increased gross
margin.
EBITDA for the quarter ended June 30,
2021 was $84.5 million
compared to $23.9 million for the
same period last year. EBITDA increased primarily due to higher
margin earned during the quarter.
Six Months Ended June 30,
2021 Earnings Results
Sales for the six months ended June 30,
2021 were $1,322.7 million
compared to $677.2 million over the
same period last year. The increase in sales by $645.5 million or 95% was largely due to the
Company experiencing higher selling prices for its commodity
products during the period.
Gross margin for the six months ended June 30, 2021 increased to $238.3 million from $73.3
million over the same period last year. Gross margin
percentage was 18.0% for the six months ended June 30, 2021 compared to 10.8% in the same
period last year. These increases were primarily due to
rising commodity prices.
Net earnings for the six month period ended June 30, 2021 were $87.6
million compared to $19.8
million for the same period last year.
EBITDA for the six months ended June 30,
2021 was $129.6 million
compared to $37.0 million for the
same period last year. EBITDA increased primarily due to
higher margin earned during the period.
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 pandemic has had a positive
impact on Taiga's business and financial performance in fiscal 2020
and the first half of fiscal 2021. This is a direct result of the
increased demand for detached housing, record high commodity prices
and low borrowing rates experienced during the pandemic. The extent
to which these events may continue to impact the Company's business
activities in the same manner in future periods will depend on a
number of factors, 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, the demand for detached housing in
North America, future commodity
prices, interest rates and the strength of the general
economy. 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.
Third Quarter Outlook
As pandemic-related restrictions eased across North America in recent months, consumers
diverted money away from home renovations and increased spending on
travel and leisure activities. The resulting reduction in
demand for renovation products led to a sharp decline in lumber and
panel prices, beginning in mid-July. Taiga's third quarter
earnings are expected to be negatively impacted by this recent
development.
Condensed Consolidated Statement of
Earnings
For the Three Months Ended
|
June 30,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2021
|
2020
|
|
Sales
|
786,732
|
356,894
|
|
Gross
margin
|
147,903
|
42,741
|
|
Distribution
expense
|
6,820
|
6,238
|
|
Selling and
administration expense
|
58,938
|
18,384
|
|
Finance
expense
|
2,267
|
2,206
|
|
Subordinated debt
interest expense
|
219
|
219
|
|
Canada Emergency Wage
Subsidy
|
-
|
(2,902)
|
|
Other (income)
expense
|
344
|
(52)
|
|
Earnings before
income taxes
|
79,315
|
18,648
|
|
Income tax
expense
|
20,847
|
5,500
|
|
Net
earnings
|
58,468
|
13,148
|
|
Net earnings per
share(1)
|
0.54
|
0.12
|
|
EBITDA(2)
|
84,489
|
23,862
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
June
30,
|
|
(in thousands of
Canadian dollars)
|
|
2021
|
2020
|
|
Net
earnings
|
|
58,468
|
13,148
|
|
Income tax
expense
|
|
20,847
|
5,500
|
|
Finance and
subordinated debt interest expense
|
|
2,486
|
2,425
|
|
Amortization
|
|
2,688
|
2,789
|
|
EBITDA
|
|
84,489
|
23,862
|
For the Six Months Ended
|
June 30,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2021
|
2020
|
|
Sales
|
1,322,650
|
677,173
|
|
Gross
margin
|
238,261
|
73,294
|
|
Distribution
expense
|
13,874
|
12,638
|
|
Selling and
administration expense
|
100,094
|
32,148
|
|
Finance
expense
|
3,940
|
4,483
|
|
Subordinated debt
interest expense
|
438
|
438
|
|
Canada Emergency Wage
Subsidy
|
-
|
(2,902)
|
|
Other
income
|
290
|
(83)
|
|
Earnings before
income taxes
|
119,625
|
26,572
|
|
Income tax
expense
|
31,981
|
6,811
|
|
Net
earnings
|
87,644
|
19,761
|
|
Net earnings per
share(1)
|
0.81
|
0.18
|
|
EBITDA(2)
|
129,597
|
37,005
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
June 30,
|
|
(in thousands of
Canadian dollars)
|
|
2021
|
2020
|
|
Net
earnings
|
|
87,644
|
19,761
|
|
Income tax
expense
|
|
31,981
|
6,811
|
|
Finance and
subordinated debt interest expense
|
|
4,378
|
4,921
|
|
Amortization
|
|
5,594
|
5,512
|
|
EBITDA
|
|
129,597
|
37,005
|
|
|
|
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 three and
six months ended June 30, 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.
