Business
Taiga Building Products Ltd. Announces First Quarter Earnings and Sales Increase of 19.2%
Taiga Building Products Ltd. Announces First Quarter Earnings and Sales Increase of 19.2%
About this update from Taiga Building Products Ltd.
[{"type":"text","content":"\n\n\n\n Jul. 23, 2010 (Canada NewsWire Group) -- \n \n \n BURNABY, BC, July 23 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its quarterly results for the three months ended June 30, 2010.\n\n\n >\n\n\nThe Company's consolidated net sales for the quarter ended June 30, 2010 were $294.4 million compared to $246.9 million over the same period last year, an increase of $47.5 million or 19.2%. The increase was due to strong demand, higher commodity prices and very weak comparable sales performance in the prior period as a result of the international credit crisis.\nGross margin for the quarter ended June 30, 2010 increased to $30.0 million from $27.2 million over the same period last year. Gross margin percentage for the quarter declined to 10.2% compared to 11% for the same period last year. Commodity prices started to decline sharply in May and this downward movement reduced the margins.\nNet earnings for the quarter ended June 30, 2010 was $5.5 million, a decrease of $1.1 million compared to $6.6 million over the same period last year. EBITDA for the quarter ended June 30, 2010 was $13.8 million, a decrease of $1.5 million, or 9.8% compared to $15.3 million over the same period last year. These decreases were primarily due to little foreign exchange fluctuation during the quarter compared to the prior period.\n\n\n >\n\n\nThe Company has entered into a new credit agreement with a syndicate of lenders led by JPMorgan Chase Bank. For further details, please refer to a separate press release dated July 23, 2010.\n\n\n\n >\n\n\nThe following is the reconciliation of net earnings to EBITDA:\n\n\n >\n\n\nNotes:\n\n(1) EPS is earnings per share calculated using the weighted average number of shares.\n(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 alte...