BURNABY,
BC, Nov. 10, 2023 /CNW/ - Taiga Building
Products Ltd. ("Taiga" or the "Company") today reported its
financial results for the three and nine months ended September 30, 2023.
Third Quarter Ended September 30,
2023 Earnings Results
Sales for the quarter ended September 30,
2023 were $456.6 million
compared to $533.1 million over the
same period last year. The decrease in sales by $76.5 million or 14% was largely due to decreased
selling prices for commodity products.
Gross margin for the quarter ended September 30, 2023 decreased to $56.4 million from $63.8
million over the same period last year. The decrease in
gross margin was primarily due to lower commodity prices during the
quarter.
Net earnings for the quarter ended September 30, 2023 increased to $21.4 million compared to $18.6 million over the same period last year. The
increase in net earnings was due to income tax recoveries from the
prior year.
EBITDA for the quarter ended September
30, 2023 was $27.6 million
compared to $29.8 million for the
same period last year. EBITDA decreased primarily due to lower
margins earned during the quarter.
Nine Months Ended September 30,
2023 Earnings Results
Sales for the nine months ended September
30, 2023 were $1,312.0 million
compared to $1,791.9 million over the
same period last year. The decrease in sales was largely due
the Company experiencing lower selling prices for its commodity
products.
Gross margin for the nine months ended September 30, 2023 decreased to $155.9 million from $241.7
million over the same period last year. The decrease in
gross margin was primarily due to lower commodity prices during the
period.
Net earnings for the nine month period ended September 30, 2023 were $51.9 million compared to $78.9 million for the same period last
year. The decrease in net earnings was primarily due to
decreased gross margins during the period.
EBITDA for the nine months ended September 30, 2023 was $78.1 million compared to $122.1 million for the same period last year.
EBITDA decreased primarily due to lower margins earned during the
period.
Condensed Consolidated Statement of
Earnings
For the Three Months Ended
|
September
30,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2023
|
2022
|
|
Sales
|
456,615
|
533,066
|
|
Gross margin
|
56,403
|
63,846
|
|
Distribution
expense
|
8,135
|
7,333
|
|
Selling and
administration expense
|
23,447
|
29,658
|
|
Finance
expense
|
98
|
1,494
|
|
Subordinated debt
interest expense
|
-
|
218
|
|
Other expense
(income)
|
263
|
(11)
|
|
Earnings (loss) before
income taxes
|
24,460
|
25,154
|
|
Income tax expense
(recovery)
|
3,056
|
6,534
|
|
Net earnings
(loss)
|
21,404
|
18,620
|
|
Net earnings (loss) per
share(1)
|
0.20
|
0.17
|
|
EBITDA(2)
|
27,617
|
29,764
|
|
The following is the
reconciliation of net earnings to EBITDA:
|
|
September
30,
|
|
(in thousands of
Canadian dollars)
|
|
2023
|
2022
|
|
Net earnings
(loss)
|
|
21,404
|
18,620
|
|
Income tax expense
(recovery)
|
|
3,056
|
6,534
|
|
Finance and
subordinated debt interest expense
|
|
98
|
1,712
|
|
Amortization
|
|
3,059
|
2,898
|
|
EBITDA
|
|
27,617
|
29,764
|
Condensed Consolidated Statement of
Earnings
For the Nine Months Ended
|
September
30,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2023
|
2022
|
|
Sales
|
1,312,009
|
1,791,892
|
|
Gross margin
|
155,947
|
241,722
|
|
Distribution
expense
|
24,018
|
22,008
|
|
Selling and
administration expense
|
62,645
|
106,312
|
|
Finance
expense
|
2,727
|
5,498
|
|
Subordinated debt
interest expense
|
-
|
656
|
|
Other expense
(income)
|
230
|
(160)
|
|
Earnings before income
taxes
|
66,327
|
107,408
|
|
Income tax
expense
|
14,416
|
28,493
|
|
Net earnings
|
51,911
|
78,915
|
|
Net earnings per
share(1)
|
0.48
|
0.73
|
|
EBITDA(2)
|
78,121
|
122,079
|
|
The following is the
reconciliation of net earnings to EBITDA:
|
|
September
30,
|
|
(in thousands of
Canadian dollars)
|
|
2023
|
2022
|
|
Net earnings
|
|
51,911
|
78,915
|
|
Income tax
expense
|
|
14,416
|
28,493
|
|
Finance and
subordinated debt interest expense
|
|
2,727
|
6,154
|
|
Amortization
|
|
9,067
|
8,517
|
|
EBITDA
|
|
78,121
|
122,079
|
|
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
nine months ended September 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.