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: http://www.newswire.ca/en/releases/archive/November2012/08/c6521.html CO: Taiga Building Products Ltd. ST: British Columbia NI: PAP ERN -0- Nov/09/2012 01:43 GMT
Taiga's net profit up by 39% for the 6 months ended September 30, 2012
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