BURNABY,
BC, May 5, 2023 /CNW/ - Taiga Building
Products Ltd. ("Taiga" or the "Company") today reported its
financial results for the three months ended March 31, 2023 and 2022.
First Quarter Ended March 31,
2023 Earnings Results
The Company's consolidated net sales for the quarter ended
March 31, 2023 were $408.5 million compared to $612.7 million over the same period last year.
The decrease in sales by $204.2
million or 33% was largely due to decreased selling prices
for commodity products.
Gross margin for the quarter ended March
31, 2023 decreased to $47.1
million from $108.9 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 March
31, 2023 decreased to $13.5
million from $39.5 million
over the same period last year primarily due to decreased gross
margin.
EBITDA for the quarter ended March 31,
2023 was $22.5 million
compared to $58.6 million for the
same period last year.
Condensed Consolidated Statement of
Earnings
For the Three Months Ended
|
March 31,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2023
|
2022
|
|
Sales
|
408,492
|
612,704
|
|
Gross margin
|
47,113
|
108,864
|
|
Distribution
expense
|
8,024
|
7,331
|
|
Selling and
administration expense
|
19,640
|
45,810
|
|
Finance
expense
|
1,117
|
1,871
|
|
Subordinated debt
interest expense
|
-
|
219
|
|
Other income
|
7
|
(53)
|
|
Earnings before income
taxes
|
18,325
|
53,686
|
|
Income tax
expense
|
4,809
|
14,186
|
|
Net earnings
|
13,516
|
39,500
|
|
Net earnings per
share(1)
|
0.12
|
0.37
|
|
EBITDA(2)
|
22,521
|
58,528
|
The following is the reconciliation of net earnings to
EBITDA:
|
|
March
31,
|
|
(in thousands of
Canadian dollars)
|
|
2023
|
2022
|
|
Net earnings
|
|
13,516
|
39,500
|
|
Income tax
expense
|
|
4,809
|
14,186
|
|
Finance and
subordinated debt interest expense
|
|
1,117
|
2,090
|
|
Amortization
|
|
3,079
|
2,752
|
|
EBITDA
|
|
22,521
|
58,528
|
|
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 the three
months ended March 31, 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.