BURNABY,
BC, Feb. 23, 2024 /CNW/ - Taiga Building
Products Ltd. ("Taiga" or the "Company") today reported its
financial results for the year ended December 31, 2023.
Fourth Quarter Ended December 31, 2023 Earnings Results
The Company's consolidated net sales for the quarter ended
December 31, 2023 were $367.7 million compared to $400.8 million over the same quarter last
year. A decrease in sales by $33.1
million.
Gross margin for the quarter ended December 31, 2023 decreased to $42.4 million from $49.4
million over the same quarter last year. The decrease in
gross margin was primarily due to lower commodity prices during the
quarter.
Net earnings for the quarter ended December 31, 2023 had a slight decreased to
$9.4 million compared to $9.7 million over the same period last year
primarily due to lower sales accompanied by an increase in
operating costs.
EBITDA for the quarter ended December 31,
2023 was $13.1 million
compared to $17.2 million for the
same period last year. EBITDA decreased primarily due to lower
margins earned during the quarter.
Year Ended December 31, 2023 Earnings
Results
Sales for the year ended December 31,
2023 were $1,679.7 million
compared to $2,192.7 million in the
prior year. The decrease in sales was largely due the Company
experiencing lower selling prices for its commodity products.
Gross margin for the year ended December
31, 2023 decreased to $198.4
million from $291.2 million in
the prior year. The decrease in gross margin was primarily due
to lower commodity prices during the period.
Net earnings for the year ended December
31, 2023 were $61.3 million
compared to $88.6 million in the
prior year. The decrease in net earnings was primarily due to
decreased gross margins during the period.
EBITDA for the year ended December 31,
2023 was $91.3 million
compared to $139.3 million in the
prior year. EBITDA decreased primarily due to lower margins earned
during the period.
Consolidated Statement of
Earnings
For the Three Months Ended
|
December
31,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2023
|
2022
|
|
Sales
|
367,658
|
400,813
|
|
Gross margin
|
42,448
|
49,431
|
|
Distribution
expense
|
8,241
|
7,933
|
|
Selling and
administration expense
|
24,335
|
27,210
|
|
Finance
expense
|
(425)
|
1,055
|
|
Subordinated debt
interest expense
|
-
|
113
|
|
Other expense
(income)
|
(61)
|
20
|
|
Earnings (loss) before
income taxes
|
10,358
|
13,100
|
|
Income tax
expense
|
968
|
3,387
|
|
Net earnings
(loss)
|
9,390
|
9,713
|
|
Net earnings (loss) per
share(1)
|
0.09
|
0.09
|
|
EBITDA(2)
|
13,141
|
17,221
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
December 31,
|
|
(in thousands of
Canadian dollars)
|
|
2023
|
2022
|
|
Net earnings
(loss)
|
|
9,390
|
9,713
|
|
Income tax
expense
|
|
968
|
3,387
|
|
Finance and
subordinated debt interest expense
|
|
(425)
|
1,168
|
|
Amortization
|
|
3,208
|
2,953
|
|
EBITDA
|
|
13,141
|
17,221
|
Consolidated Statement of
Earnings
For the Year ended
|
December
31,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2023
|
2022
|
|
Sales
|
1,679,667
|
2,192,705
|
|
Gross margin
|
198,395
|
291,153
|
|
Distribution
expense
|
32,259
|
29,941
|
|
Selling and
administration expense
|
86,980
|
133,522
|
|
Finance
expense
|
2,302
|
6,553
|
|
Subordinated debt
interest expense
|
-
|
769
|
|
Other expense
(income)
|
169
|
(140)
|
|
Earnings before income
taxes
|
76,685
|
120,508
|
|
Income tax
expense
|
15,384
|
31,880
|
|
Net earnings
|
61,301
|
88,628
|
|
Net earnings per
share(1)
|
0.57
|
0.82
|
|
EBITDA(2)
|
91,263
|
139,299
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
December 31,
|
|
(in thousands of
Canadian dollars)
|
|
2023
|
2022
|
|
Net earnings
|
|
61,301
|
88,628
|
|
Income tax
expense
|
|
15,384
|
31,880
|
|
Finance and
subordinated debt interest expense
|
|
2,302
|
7,322
|
|
Amortization
|
|
12,276
|
11,469
|
|
EBITDA
|
|
91,263
|
139,299
|
|
|
|
|
|
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 consolidated
financial statements for the year ended December 31, 2023 and accompanying notes and
management's discussion and analysis which will be available
shortly on SEDAR+ at www.sedarplus.ca.
SOURCE Taiga Building Products Ltd.
