BURNABY,
BC, Aug. 11, 2023 /CNW/ - Taiga Building
Products Ltd. ("Taiga" or the "Company") today reported its
financial results for the three and six months ended June 30, 2023.
Second Quarter Ended June 30,
2023 Earnings Results
Sales for the quarter ended June 30,
2023 were $446.9 million
compared to $646.1 million over the
same period last year. The decrease in sales by $199.2 million or 31% was largely due to
decreased selling prices for commodity products.
Gross margin for the quarter ended June
30, 2023 decreased to $52.4
million from $69.0 million
over the same period last year. Gross margin percentage was 11.7%
for the three months ended June 30,
2023 compared to 10.7% in the same period last year. The
decrease in gross margin dollars was primarily due to falling
commodity prices during the quarter.
Net earnings for the quarter ended June
30, 2023 decreased to $17.0
million from $20.8 million
over the same period last year primarily due to decreased gross
margin dollars.
EBITDA for the quarter ended June 30,
2023 was $28.0 million
compared to $33.7 million for the
same period last year. EBITDA decreased primarily due to lower
margin dollars earned during the quarter.
Six Months Ended June 30,
2023 Earnings Results
Sales for the six months ended June 30,
2023 were $855.4 million
compared to $1,258.8 million over the
same period last year. The decrease in sales by $403.4 million or 32% was largely due to the
Company experiencing lower selling prices for its commodity
products.
Gross margin for the six months ended June 30, 2023 decreased to $99.5 million from $177.9
million over the same period last year. Gross margin
percentage was 11.6% for the six months ended June 30, 2023 compared to 14.1% in the same
period last year. These decreases were primarily due to falling
commodity prices during the period.
Net earnings for the six months ended June 30, 2023 were $30.5
million compared to $60.3
million for the same period last year primarily due to
decreased gross margin.
EBITDA for the six months ended June 30,
2023 was $50.5 million
compared to $92.3 million for the
same period last year. EBITDA decreased primarily due to
lower margin dollars earned during the period.
Condensed Consolidated Statement of
Earnings
|
For the Three Months
Ended
|
|
June 30,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2023
|
2022
|
|
Sales
|
446,902
|
646,122
|
|
Gross margin
|
52,431
|
69,012
|
|
Distribution
expense
|
7,859
|
7,345
|
|
Selling and
administration expense
|
19,558
|
30,844
|
|
Finance
expense
|
1,512
|
2,133
|
|
Subordinated debt
interest expense
|
-
|
219
|
|
Other (income)
expense
|
(40)
|
(96)
|
|
Earnings before income
taxes
|
23,542
|
28,567
|
|
Income tax
expense
|
6,551
|
7,773
|
|
Net earnings
|
16,991
|
20,794
|
|
Net earnings per
share(1)
|
0.16
|
0.19
|
|
EBITDA(2)
|
27,983
|
33,747
|
|
The following is the
reconciliation of net earnings to EBITDA:
|
|
June 30,
|
|
(in thousands of
Canadian dollars)
|
|
2023
|
2022
|
|
Net earnings
|
|
16,991
|
20,794
|
|
Income tax
expense
|
|
6,551
|
7,773
|
|
Finance and
subordinated debt interest expense
|
|
1,512
|
2,352
|
|
Amortization
|
|
2,929
|
2,828
|
|
EBITDA
|
|
27,983
|
33,747
|
|
For the Six Months
Ended
|
|
June 30,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2023
|
2022
|
|
Sales
|
855,394
|
1,258,826
|
|
Gross margin
|
99,544
|
177,876
|
|
Distribution
expense
|
15,883
|
14,636
|
|
Selling and
administration expense
|
39,198
|
76,654
|
|
Finance
expense
|
2,629
|
4,004
|
|
Subordinated debt
interest expense
|
-
|
438
|
|
Other income
|
(33)
|
(149)
|
|
Earnings before income
taxes
|
41,867
|
82,293
|
|
Income tax
expense
|
11,360
|
21,959
|
|
Net earnings
|
30,507
|
60,334
|
|
Net earnings per
share(1)
|
0.28
|
0.56
|
|
EBITDA(2)
|
50,504
|
92,315
|
|
The following is the
reconciliation of net earnings to EBITDA:
|
|
June 30,
|
|
(in thousands of
Canadian dollars)
|
|
2023
|
2022
|
|
Net earnings
|
|
30,507
|
60,334
|
|
Income tax
expense
|
|
11,360
|
21,959
|
|
Finance and
subordinated debt interest expense
|
|
2,629
|
4,442
|
|
Amortization
|
|
6,008
|
5,580
|
|
EBITDA
|
|
50,504
|
92,315
|
|
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, 2023 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.