BURNABY,
BC, Aug. 12, 2022 /CNW/ - Taiga Building
Products Ltd. ("Taiga" or the "Company") today reported its
financial results for the three and six months ended June 30, 2022.
Second Quarter Ended June 30, 2022 Earnings Results
Sales for the quarter ended June 30,
2022 were $646.1 million
compared to $786.7 million over the
same period last year. The decrease in sales by $140.6 million or 18% was largely due to
decreased selling prices for commodity products.
Gross margin for the quarter ended June
30, 2022 decreased to $69.0
million from $147.9 million
over the same period last year. Gross margin percentage was 10.7%
for the three months ended June 30,
2022 compared to 18.8% in the same period last year. These
decreases were primarily due to falling commodity prices during the
quarter.
Net earnings for the quarter ended June
30, 2022 decreased to $20.8
million from $58.5 million
over the same period last year primarily due to decreased gross
margin.
EBITDA for the quarter ended June 30,
2022 was $33.7 million
compared to $84.5 million for the
same period last year. EBITDA decreased primarily due to lower
margin earned during the quarter.
Six Months Ended June 30, 2022 Earnings Results
Sales for the six months ended June 30,
2022 were $1,258.8 million
compared to $1,322.7 million over the
same period last year. The decrease in sales by $63.8 million or 5% was largely due to the
Company experiencing lower selling prices for its commodity
products.
Gross margin for the six months ended June 30, 2022 decreased to $177.9 million from $238.3
million over the same period last year. Gross margin
percentage was 14.1% for the six months ended June 30, 2022 compared to 18.0% in the same
period last year. These decreases were primarily due to
falling commodity prices during the period.
Net earnings for the six month period ended June 30, 2022 were $60.3
million compared to $87.6
million for the same period last year primarily due to
decreased gross margin.
EBITDA for the six months ended June 30,
2022 was $92.3 million
compared to $129.6 million for the
same period last year. EBITDA decreased primarily due to
lower 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 continues to impact 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 the first
two quarters of fiscal 2022. This is a direct result of the
increased demand for detached housing, high commodity prices and
low borrowing rates experienced during the period. However,
commodity prices have been volatile at times during the pandemic
including a drastic decline in the third quarter of fiscal year
2021 although prices did recover in the subsequent quarter. 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 2022.
Condensed Consolidated Statement
of Earnings
For the Three Months Ended
|
|
June 30,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
|
2022
|
2021
|
|
Sales
|
|
646,122
|
786,732
|
|
Gross margin
|
|
69,012
|
147,903
|
|
Distribution
expense
|
|
7,345
|
6,820
|
|
Selling and
administration expense
|
|
30,844
|
58,938
|
|
Finance
expense
|
|
2,133
|
2,267
|
|
Subordinated debt
interest expense
|
|
219
|
219
|
|
Other (income)
expense
|
|
(96)
|
344
|
|
Earnings before income
taxes
|
|
28,567
|
79,315
|
|
Income tax
expense
|
|
7,773
|
20,847
|
|
Net earnings
|
|
20,794
|
58,468
|
|
Net earnings per
share(1)
|
|
0.19
|
0.54
|
|
EBITDA(2)
|
|
33,747
|
84,489
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
June 30,
|
|
(in thousands of
Canadian dollars)
|
|
2022
|
2021
|
|
Net earnings
|
|
20,794
|
58,468
|
|
Income tax
expense
|
|
7,773
|
20,847
|
|
Finance and
subordinated debt interest expense
|
|
2,352
|
2,486
|
|
Amortization
|
|
2,828
|
2,688
|
|
EBITDA
|
|
33,747
|
84,489
|
For the Six Months Ended
|
|
June 30
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
|
2022
|
2021
|
|
Sales
|
|
1,258,826
|
1,322,650
|
|
Gross margin
|
|
177,876
|
238,261
|
|
Distribution
expense
|
|
14,636
|
13,874
|
|
Selling and
administration expense
|
|
76,654
|
100,094
|
|
Finance
expense
|
|
4,004
|
3,940
|
|
Subordinated debt
interest expense
|
|
438
|
438
|
|
Other income
|
|
(149)
|
290
|
|
Earnings before income
taxes
|
|
82,293
|
119,625
|
|
Income tax
expense
|
|
21,959
|
31,981
|
|
Net earnings
|
|
60,334
|
87,644
|
|
Net earnings per
share(1)
|
|
0.56
|
0.81
|
|
EBITDA(2)
|
|
92,315
|
129,597
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
June 30,
|
|
(in thousands of
Canadian dollars)
|
|
2022
|
2021
|
|
Net earnings
|
|
60,334
|
87,644
|
|
Income tax
expense
|
|
21,959
|
31,981
|
|
Finance and
subordinated debt interest expense
|
|
4,442
|
4,378
|
|
Amortization
|
|
5,580
|
5,594
|
|
EBITDA
|
|
92,315
|
129,597
|
|
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, 2022 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.
