BURNABY, BC, Feb. 25, 2022 /CNW/ - Taiga Building Products
Ltd. ("Taiga" or the "Company") today reported its financial
results for the year ended December 31,
2021.
Fourth Quarter Ended December 31,
2021 Earnings
Results
The Company's consolidated net sales for the quarter ended
December 31, 2021 were $412.5 million compared to $411.3 million over the same quarter last
year.
Gross margin for the quarter ended December 31, 2021 decreased to $54.3 million from $60.4
million over the same quarter last year.
Net earnings for the quarter ended December 31, 2021 were $10.3 million compared to net earnings of
$17.6 million over the same quarter
last year.
EBITDA for the quarter ended December 31,
2021 was $17.4 million
compared to an EBITDA of $29.4
million for the same quarter last year.
Year Ended December 31,
2021 Earnings Results
Sales for the year ended December 31,
2021 were $2,219.7 million
compared to $1,589.1 million in the
prior year. The increase in sales by $630.6
million or 40% was largely due to increased selling prices
for commodity products.
Gross margin dollars for the year ended December 31, 2021 increased to $300.2 million from $225.2
million over the same period last year. The increase
was primarily from higher selling prices for commodity
products.
Net earnings for the year ended December
31, 2021 were $92.7 million
compared to $70.8 million in the
prior year.
EBITDA for the year ended December 31,
2021 was $145.2 million
compared to $116.9 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 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. However,
commodity prices did fall dramatically during the Company's third
quarter of fiscal 2021 which had a material impact on its results.
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
beyond fiscal year 2021.
Consolidated Statement of Earnings
For the Three
Months Ended
|
December 31,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2021
|
2020
|
|
Sales
|
$412,461
|
$411,283
|
|
Gross
margin
|
54,285
|
60,361
|
|
Distribution
expense
|
6,861
|
7,439
|
|
Selling and
administration expense
|
32,789
|
26,602
|
|
Finance
expense
|
1,724
|
2,057
|
|
Subordinated debt
interest expense
|
219
|
219
|
|
Other
income
|
(17)
|
(28)
|
|
Earnings before
income taxes
|
12,709
|
24,072
|
|
Income tax
expense
|
2,427
|
6,437
|
|
Net
earnings
|
$10,282
|
$17,635
|
|
Net earnings per
share(1)
|
$0.10
|
$0.16
|
|
EBITDA(2)
|
17,425
|
29,410
|
|
|
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
December
31,
|
|
|
(in thousands of
Canadian dollars)
|
|
2021
|
2020
|
|
|
Net
earnings
|
|
10,282
|
17,635
|
|
|
Income tax
expense
|
|
2,427
|
6,437
|
|
|
Finance and
subordinated debt interest expense
|
|
1,943
|
2,276
|
|
|
Amortization
|
|
2,773
|
3,062
|
|
|
EBITDA
|
|
17,425
|
29,410
|
|
|
|
|
|
|
|
Consolidated Statement of Earnings
For the Year
Ended
|
December 31,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2021
|
2020
|
|
Sales
|
$2,219,674
|
$1,589,123
|
|
Gross
margin
|
300,192
|
225,170
|
|
Distribution
expense
|
27,569
|
26,843
|
|
Selling and
administration expense
|
138,282
|
95,648
|
|
Finance
expense
|
7,519
|
8,450
|
|
Canada Emergency Wage
Subsidy
|
-
|
(2,919)
|
|
Subordinated debt
interest expense
|
875
|
875
|
|
Other
expenses
|
285
|
63
|
|
Earnings before
income taxes
|
125,662
|
96,210
|
|
Income tax
expense
|
32,976
|
25,384
|
|
Net
earnings
|
$92,686
|
$70,826
|
|
Net earnings per
share(1)
|
$0.85
|
$0.64
|
|
EBITDA(2)
|
145,181
|
116,904
|
|
|
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
December
31,
|
|
|
(in thousands of
Canadian dollars)
|
|
2021
|
2020
|
|
|
Net
earnings
|
|
92,686
|
70,826
|
|
|
Income tax
expense
|
|
32,976
|
25,384
|
|
|
Finance and
subordinated debt interest expense
|
|
8,394
|
9,325
|
|
|
Amortization
|
|
11,125
|
11,369
|
|
|
EBITDA
|
|
145,181
|
116,904
|
|
|
|
|
|
|
|
|
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, 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.
