Taiga Q1 Results - Higher commodity prices drive sales grow by 13%

Condensed Consolidated Statement of Earnings

For the Three Months Ended

March 31,

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

2018

2017

Sales

324,597

286,052

Gross margin

30,758

24,164

Distribution expense

5,883

5,720

Selling and administration expense

14,580

12,044

Finance expense

1,315

1,507

Subordinated debt interest expense

180

4,510

Other income

(96)

(241)

Earnings before income taxes

8,896

624

Income tax expense

2,106

375

Net earnings

6,790

249

Net earnings per share⁽¹⁾

0.06

0.01

EBITDA⁽²⁾

11,519

7,784

The following is the reconciliation of net earnings to EBITDA:

March 31,

(in thousands of Canadian dollars)

2018

2017

Net earnings

6,790

249

Income tax expense

2,106

375

Finance and subordinated debt interest expense

1,495

6,017

Amortization

1,128

1,143

EBITDA

11,519

7,784

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.