TAIGA’S (TBL) FOURTH QUARTER RESULTS IMPACTED BY LOW COMMODITY PRICES

BURNABY, BC, Feb. 23, 2024 /CNW/ – Taiga Building Products Ltd. (“Taiga” or the “Company”) today reported its financial results for the year ended December 31, 2023.


Taiga Building Products Ltd. logo (CNW Group/Taiga Building Products Ltd.)

Fourth Quarter Ended December 31, 2023 Earnings Results

The Company’s consolidated net sales for the quarter ended December 31, 2023 were $367.7 million compared to $400.8 million over the same quarter last year.  A decrease in sales by $33.1 million.

Gross margin for the quarter ended December 31, 2023 decreased to $42.4 million from $49.4 million over the same quarter last year. The decrease in gross margin was primarily due to lower commodity prices during the quarter.

Net earnings for the quarter ended December 31, 2023 had a slight decreased to $9.4 million compared to $9.7 million over the same period last year primarily due to lower sales accompanied by an increase in operating costs.    

EBITDA for the quarter ended December 31, 2023 was $13.1 million compared to $17.2 million for the same period last year. EBITDA decreased primarily due to lower margins earned during the quarter.

Year Ended December 31, 2023 Earnings Results

Sales for the year ended December 31, 2023 were $1,679.7 million compared to $2,192.7 million in the prior year. The decrease in sales was largely due the Company experiencing lower selling prices for its commodity products.

Gross margin for the year ended December 31, 2023 decreased to $198.4 million from $291.2 million in the prior year. The decrease in gross margin was primarily due to lower commodity prices during the period.

Net earnings for the year ended December 31, 2023 were $61.3 million compared to $88.6 million in the prior year. The decrease in net earnings was primarily due to decreased gross margins during the period.

EBITDA for the year ended December 31, 2023 was $91.3 million compared to $139.3 million in the prior year. EBITDA decreased primarily due to lower margins earned during the period.

Consolidated Statement of Earnings

For the Three Months Ended

December 31,

(in thousands of Canadian dollars, except for per share amounts)     

2023

2022

Sales

367,658

400,813

Gross margin

42,448

49,431

Distribution expense

8,241

7,933

Selling and administration expense

24,335

27,210

Finance expense

(425)

1,055

Subordinated debt interest expense

113

Other expense (income)

(61)

20

Earnings (loss) before income taxes

10,358

13,100

Income tax expense

968

3,387

Net earnings (loss)

9,390

9,713

Net earnings (loss) per share(1)

0.09

0.09

EBITDA(2)

13,141

17,221

The following is the reconciliation of net earnings to EBITDA:

December 31,

(in thousands of Canadian dollars)

2023

2022

Net earnings (loss)

9,390

9,713

Income tax expense

968

3,387

Finance and subordinated debt interest expense                                                       

(425)

1,168

Amortization

3,208

2,953

EBITDA

13,141

17,221

Consolidated Statement of Earnings

For the Year ended

December 31,

(in thousands of Canadian dollars, except for per share amounts)     

2023

2022

Sales

1,679,667

2,192,705

Gross margin

198,395

291,153

Distribution expense

32,259

29,941

Selling and administration expense

86,980

133,522

Finance expense

2,302

6,553

Subordinated debt interest expense

769

Other expense (income)

169

(140)

Earnings before income taxes

76,685

120,508

Income tax expense

15,384

31,880

Net earnings

61,301

88,628

Net earnings per share(1)

0.57

0.82

EBITDA(2)

91,263

139,299

The following is the reconciliation of net earnings to EBITDA:

     December 31,

(in thousands of Canadian dollars)

2023

2022

Net earnings

61,301

88,628

Income tax expense

15,384

31,880

Finance and subordinated debt interest expense                                                       

2,302

7,322

Amortization

12,276

11,469

EBITDA

91,263

139,299

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 consolidated financial statements for the year ended December 31, 2023 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.