2022-05-06 | TSX:TBL | Press release

BURNABY, BC, May 6, 2022 /CNW/ – Taiga Building Products Ltd. (“Taiga” or the “Company”) today announced its financial results for the three months ended March 31, 2022.

End of first trimester March 31, 2022 Profit results

The Company’s consolidated net sales for the quarter ended March 31, 2022 have been $612.7 million compared to $535.9 million over the same period last year. The increase in sales of $76.8 million or 14% was largely due to higher commodity selling prices.

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 is mainly attributable to the increase in commodity prices during the quarter.

Net profit for the quarter ended March 31, 2022 increased to $39.5 million from $29.2 million compared to the same period last year, mainly due to the increase in gross margin.

EBITDA for the quarter ended March 31, 2022 been $58.6 million compared to $45.1 million for the same period last year.

Management Update on the COVID-19 Pandemic

The coronavirus outbreak, also known as “COVID-19”, has spread across the globe and continues to impact global economic activity. Conditions surrounding the coronavirus continue to rapidly evolve and government authorities have put in place emergency measures to mitigate the spread of the virus. As of the date of approval of the financial statements, the pandemic had a positive impact on Taïga’s activities and financial performance in the first quarter of fiscal 2022. This is the direct result of the increased demand for single-family homes, prices high commodity prices and low borrowing rates recorded. during the period. However, commodity prices have been volatile at times during the pandemic, including a drastic drop in the third quarter of fiscal 2021, although prices recovered in the following quarter. The extent to which these events may continue to affect the Company’s business operations in the same way 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 interruptions and the effectiveness of measures taken in Canada, United States and other countries to contain and treat the disease, the demand for individual 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 certainty how the progression of the coronavirus pandemic and these events will ultimately impact the financial performance of the Company in 2022.

Condensed Consolidated Statement of Income

For the three months ended

March, 31st,

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

2022

2021

Sales

612 704

535 918

Gross margin

108,864

90,358

Broadcast fees

7,291

7,054

Selling and administrative expenses

45,810

41,156

Financial expenses

1,871

1,673

Subordinated debt interest expense

219

219

Other income

(53)

(54)

Profit before income taxes

53,726

40,310

income tax expense

14,186

11,134

net profit

39,540

29,176

Net earnings per share(1)

0.37

0.27

EBITDA(2)

58,568

45 107

Here is the reconciliation of net profit and EBITDA:

March, 31st,

(in thousands of Canadian dollars)

2022

2021

net profit

39,540

29,176

income tax expense

14,186

11,134

Financial interests and subordinated debts

2,090

1,891

Amortization

2,752

2,906

EBITDA

58,568

45 107

Remarks:

(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, depreciation and amortization. As there is no generally accepted method of calculating EBITDA, the measure as calculated by Taiga may not be comparable to similarly titled measures reported by other issuers. EBITDA is presented because 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 viewed by an investor as an alternative to net income or cash flows determined in accordance with IFRS. For disclosure of how EBITDA is calculated and the reconciliation to net income, refer to the “EBITDA” section of the Company’s MD&A which will be available shortly on SEDAR at www.sedar.com.

The selected financial information above 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 MD&A which will be available shortly on SEDAR at www.sedar.com.

SOURCE Taiga Building Products Ltd.

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