BURNABY,
BC, May 6, 2022 /CNW/ - Taiga Building
Products Ltd. ("Taiga" or the "Company") today reported its
financial results for the three months ended March 31, 2022.
First Quarter Ended March 31, 2022 Earnings Results
The Company's consolidated net sales for the quarter ended
March 31, 2022 were $612.7 million compared to $535.9 million over the same period last year.
The increase in sales by $76.8
million or 14% was largely due to increased selling prices
for commodity products.
Gross margin for the quarter ended March
31, 2022 increased to $108.9
million from $90.4 million
over the same period last year. The increase in gross margin was
primarily due to rising commodity prices during the quarter.
Net earnings for the quarter ended March
31, 2022 increased to $39.5
million from $29.2 million
over the same period last year primarily due to increased gross
margin.
EBITDA for the quarter ended March 31,
2022 was $58.6 million
compared to $45.1 million for the
same period last year.
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
quarter 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
|
|
|
|
March 31,
|
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2022
|
2021
|
|
Sales
|
612,704
|
535,918
|
|
Gross margin
|
108,864
|
90,358
|
|
Distribution
expense
|
7,291
|
7,054
|
|
Selling and
administration expense
|
45,810
|
41,156
|
|
Finance
expense
|
1,871
|
1,673
|
|
Subordinated debt
interest expense
|
219
|
219
|
|
Other income
|
(53)
|
(54)
|
|
Earnings before income
taxes
|
53,726
|
40,310
|
|
Income tax
expense
|
14,186
|
11,134
|
|
Net earnings
|
39,540
|
29,176
|
|
Net earnings per
share(1)
|
0.37
|
0.27
|
|
EBITDA(2)
|
58,568
|
45,107
|
|
The following is the
reconciliation of net earnings to EBITDA:
|
|
March 31,
|
|
(in thousands of
Canadian dollars)
|
|
2022
|
2021
|
|
Net earnings
|
|
39,540
|
29,176
|
|
Income tax
expense
|
|
14,186
|
11,134
|
|
Finance and
subordinated debt interest expense
|
|
2,090
|
1,891
|
|
Amortization
|
|
2,752
|
2,906
|
|
EBITDA
|
|
58,568
|
45,107
|
|
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, 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.
