TAIGA'S $(TBL.AU)$ THIRD QUARTER RESULTS IMPACTED BY LOWER VOLUME SALES OF COMMODITY PRODUCTS
Canada NewsWire
BURNABY, BC, Nov. 8, 2024
BURNABY, BC, Nov. 8, 2024 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the three and nine months ended September 30, 2024.
Third Quarter Ended September 30, 2024 Earnings Results
Sales for the quarter ended September 30, 2024 were $423.9 million compared to $456.6 million over the same period last year. Sales decreased by $32.7 million or 7% mainly due to a reduction in commodity products sold.
Gross margin for the quarter ended September 30, 2024 decreased to $45.5 million from $56.4 million over the same period last year. Gross margin percentage was 10.7% for the three months ended September 30, 2024 compared to 12.4% over the same period last year. The decrease in gross margin dollars was mainly due to a reduction in commodity products sold.
Net earnings for the quarter ended September 30, 2024 decreased to $14.3 million from $21.4 million over the same period last year primarily due to decreased gross margin dollars.
EBITDA for the quarter ended September 30, 2024 was $21.5 million compared to $27.6 million for the same period last year. EBITDA decreased primarily due to lower margin dollars earned during the quarter.
Nine Months Ended September 30, 2024 Earnings Results
Sales for the nine months ended September 30, 2024 were $1,245.3 million compared to $1,312.0 million over the same period last year. Sales decreased by $66.7 million or 5% mainly due to a reduction in commodity products sold.
Gross margin for the nine months ended September 30, 2024 decreased to $132.0 million from $155.9 million over the same period last year. Gross margin percentage was 10.6% for the nine months ended September 30, 2024 compared to 11.9% over the same period last year. The decrease in gross margin dollars was mainly due to a reduction in commodity products sold.
Net earnings for the nine months ended September 30, 2024 were $41.0 million compared to $51.9 million for the same period last year primarily due to a decreased gross margin.
EBITDA for the nine months ended September 30, 2024 was $64.0 million compared to $78.1 million for the same period last year. EBITDA decreased primarily due to lower margin dollars earned during the period.
Condensed Consolidated Statement of Earnings
For the Three Months Ended
September 30,
(in thousands of Canadian dollars, except for per 2024 2023
share amounts)
Sales 423,886 456,615
Gross margin 45,544 56,403
Distribution expense 8,151 8,135
Selling and administration expense 19,169 23,447
Finance expense 3 98
Other (income) expense (109) 263
Earnings before income taxes 18,330 24,460
Income tax expense 3,999 3,056
Net earnings 14,331 21,404
Net earnings per share(1) 0.13 0.20
EBITDA(2) 21,497 27,617
The following is the reconciliation of net earnings to EBITDA:
September 30,
(in thousands of Canadian dollars) 2024 2023
Net earnings 14,331 21,404
Income tax expense 3,999 3,056
Finance and subordinated debt interest expense 3 98
Amortization 3,164 3,059
EBITDA 21,497 27,617
For the Nine Months Ended
September 30,
(in thousands of Canadian dollars, except for per 2024 2023
share amounts)
Sales 1,245,340 1,312,009
Gross margin 132,009 155,947
Distribution expense 24,605 24,018
Selling and administration expense 53,183 62,645
Finance expense 202 2,727
Other income (183) 230
Earnings before income taxes 54,202 66,327
Income tax expense 13,177 14,416
Net earnings 41,025 51,911
Net earnings per share(1) 0.38 0.48
EBITDA(2) 64,037 78,121
The following is the reconciliation of net earnings to EBITDA:
September 30,
(in thousands of Canadian dollars) 2024 2023
Net earnings 41,025 51,911
Income tax expense 13,177 14,416
Finance and subordinated debt interest expense 202 2,727
Amortization 9,634 9,067
EBITDA 64,037 78,121
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 three and nine months ended September 30, 2024 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.
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/CONTACT:
For further information regarding Taiga, please contact: Mark Schneidereit-Hsu, CFO and VP, Finance & Administration, Tel: 604.438.1471, Email: mschneidereit@taigabuilding.com
Copyright CNW Group 2024
(END) Dow Jones Newswires
November 08, 2024 17:00 ET (22:00 GMT)
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