Taiga's net profit up by 39% for the 6 months ended September 30, 2012

Taiga's net profit up by 39% for the 6 months ended September 30, 2012 
BURNABY, BC, Nov. 8, 2012 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the 
"Company") today reported its quarterly results for the three and six months 
ended September 30, 2012. 
Three Months Ended September 30, 2012 
The Company's consolidated net sales for the quarter ended September 30, 2012 
were $315.9 million compared to $278.0 million in the same period last year. 
The 13.6% increase in sales was largely due to higher commodity prices. 
Gross margin for the quarter ended September 30, 2012 increased to $28.9 
million from $27.9 million in the previous year. Gross margin percentage for 
the quarter declined to 9.1% compared to 10.1% in the same period last year. 
The decline in gross margin percentage was primarily due to changes in product 
mix towards increased commodity volumes. 
Net earnings for the quarter ended September 30, 2012 were $3.8 million 
compared to $3.3 million in the same period last year, an increase of 14.2%. 
EBITDA for the quarter ended September 30, 2012 was $12.9 million compared to 
$11.4 million last year, an increase of 13.5%. 
Six Months Ended September 30, 2012 
The Company's consolidated net sales for the six months ended September 30, 
2012 were $625.4 million compared to $541.6 million in the same period last 
year. The 15.5% increase in sales was largely due to higher commodity prices 
and stronger demand fueled by early arrival of spring this year compared to 
the same period last year. 
Gross margin for the six months ended September 30, 2012 increased to $59.7 
million from $54.7 million in the previous year. Gross margin percentage for 
the quarter declined to 9.5% compared to 10.1% in the same period last year. 
Net earnings for the six months ended September 30, 2012 were $9.7 million 
compared to $7.0 million in the same period last year, an increase of 39.4%. 
Higher gross margin dollars were partially offset by higher compensation costs 
included in selling and administrative expense. 
EBITDA for the six months ended September 30, 2012 was $28.3 million compared 
to $23.6 million last year, an increase of 20.0%. 
Condensed Consolidated Statement of Earnings 
For the Three Months Year Ended
(in thousands of Canadian dollars, except for per share amounts) 


                                        September 30,
                                        2012      2011
                                           $         $

Sales                                315,925   277,992

Gross margin                          28,897    27,947

Distribution expense                   4,683     4,739

Selling and administration expense    12,486    12,905

Finance expense                        1,780     1,748

Subordinated debt interest expense     4,071     4,016

Other income                            (89)     (101)

Earnings before income taxes           5,966     4,640

Provision for income taxes             2,178     1,324

Net earnings                           3,788     3,316

Net earnings per share((1))             0.12      0.10

EBITDA((2))                           12,903    11,370

The following is the reconciliation of net earnings to EBITDA: 
                                                September 30,


                                             2012     2011
(in thousands of Canadian dollars)                  $        $ 
Net earnings                                    3,788    3,316 
Income taxes                                    2,178    1,324 
Finance and subordinated debt interest expense  5,851    5,764 
Amortization                                    1,086      966 
EBITDA                                         12,903   11,370 
For the Six Months Year Ended
(in thousands of Canadian dollars, except for per share amounts) 


                                      September 30,
                                      2012      2011
                                         $         $

Sales                              625,433   541,598

Gross margin                        59,653    54,652

Distribution expense                 9,207     9,168

Selling and administration expense  24,499    24,005

Finance expense                      3,683     3,477

Subordinated debt interest expense   8,142     8,032

Other income                         (349)     (135)

Earnings before income taxes        14,471    10,105

Provision for income taxes           4,766     3,145

Net earnings                         9,705     6,960

Net earnings per share((1))           0.30      0.21

EBITDA((2))                         28,328    23,598

The following is the reconciliation of net earnings to EBITDA:
                                                September 30,


                                             2012     2011
(in thousands of Canadian dollars)                  $        $ 
Net earnings                                    9,705    6,960 
Income taxes                                    4,766    3,145 
Finance and subordinated debt interest expense 11,825   11,509 
Amortization                                    2,032    1,984 
EBITDA                                         28,328   23,598 
Notes:
(1) EPS is earnings per share 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. 
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 quarter ended June 30, 2012 and 
accompanying notes and management's discussion and analysis which will be 
available shortly on Sedar at www.sedar.com. 
Forward-Looking Statements: 
This press release contains certain forward-looking information and statements 
relating, but not limited, to future events or performance and strategies and 
expectations of Taiga. Forward-looking information typically contains 
statements with words such as "consider", "anticipate", "believe", "expect", 
"plan", "intend", "likely", "may", "will", "should", "predict", "potential", 
"continue" or similar words suggesting future outcomes or statements regarding 
expectations, beliefs, plans, objectives, assumptions, intentions or 
statements about future events or performance. Examples of such forward 
looking statements within this press release include statements relating to: 
our anticipated results of operations, including cost reduction savings; our 
expectations regarding market conditions; the sufficiency of our cash 
requirements and our ability to remain in compliance with our debt covenants. 
Readers should be aware that these statements are subject to known and unknown 
risks, uncertainties and other factors that could cause actual results to 
differ materially from those suggested by the forward-looking statements. 
These forward-looking statements reflect management's current expectations or 
beliefs and are based on information currently available to Taiga and although 
Taiga believes it has a reasonable basis for making the forward-looking 
statements included in this document, readers are cautioned not to place undue 
reliance on such forward-looking information. By its nature, the 
forward-looking information of Taiga involves numerous assumptions and 
inherent risks and uncertainties, both general and specific, that contribute 
to the possibility that the predictions, forecasts and other forward-looking 
statements will not occur. These risks include, but are not limited to, 
changes in business strategies; the effects of litigation, competition and 
pricing pressures; changes in operational costs; changes in laws and 
regulations, including tax, environmental, employment, competition, 
anti-terrorism and trade laws; and Taiga's anticipation of and success in 
managing the risks associated with the foregoing. A further description of 
these additional factors can be found in the periodic and other reports filed 
by Taiga with Canadian securities commissions and available on Sedar 
(http://www.sedar.com).These forward-looking statements speak only as of the 
date of this press release. Taiga does not undertake, and specifically 
disclaims, any obligation to update or revise any forward looking information, 
whether as a result of new information, future developments or otherwise, 
except as required by applicable law. 
For further information regarding Taiga please contact: 
Tom Stefan CFO & Vice President, Finance and Administration 
Phone:604-438-1471 Fax: 604-439-4242 
Mark Schneidereit Manager, Corporate Planning Phone:604-438-1471 
Fax:604-439-4242 
SOURCE: Taiga Building Products Ltd. 
To view this news release in HTML formatting, please use the following URL: 
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CO: Taiga Building Products Ltd.
ST: British Columbia
NI: PAP ERN  
-0- Nov/09/2012 01:43 GMT
 
 
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