Taiga's Q3 sales increased 18.9% to $329.8 million

BURNABY, BC, Feb. 23, 2018 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the period ended December 31, 2017.

Third Quarter Ended December 31, 2017 Earnings Results         

The Company's consolidated net sales for the quarter ended December 31, 2017 were $329.8 million compared to $277.4 million over the same quarter last year. The increase in sales by $52.4 million or 18.9% was largely due to increased demand for the Company's products in all segments and higher commodity prices.

Gross margin for the quarter ended December 31, 2017 increased to $27.4 million from $22.2 million over the same quarter last year. Gross margin percentage increased to 8.3% in the current quarter compared to 8.0% in the same quarter last year. The increase in gross margin percentage was primarily due to commodity prices appreciating in the current quarter. 

Net earnings for the quarter ended December 31, 2017 were a net loss of $15.2 million compared to a loss of $0.2 million over the same period last year.  During the quarter, there was an $18.6 million non-cash loss on the settlement of debt as a result of the Exchange Offer.

EBITDA for the quarter ended December 31, 2017 was ($9.1) million compared to an EBITDA of $7.4 million for the same quarter last year.  EBITDA would be $9.4 million if the $18.6 million loss on the debt settlement were excluded.

Taiga's board rescinds dividend policy

Taiga's board has rescinded Taiga's dividend policy set on October 15, 2008.  Taiga's board has adopted a new corporate strategy to focus on reinvesting capital into innovation and other growth opportunities as they arise.      

The following is the reconciliation of net earnings to EBITDA:

There was an $18.6 million non-cash loss on the settlement of debt due to the Exchange Offer.  If this unusual item were excluded for the quarter ending December 31, 2017 than the EBITDA results would be:

The foregoing selected financial information is qualified in its entirety by and should be read in conjunction with, our audited consolidated financial statements for the nine month period ended December 31, 2017 and accompanying notes and management's discussion and analysis which will be available shortly on SEDAR at www.sedar.com.

SOURCE Taiga Building Products Ltd.