Business
Taiga Building Products Ltd. Announces Fiscal Year 2009 and Fourth Quarter Financial Results
BURNABY, BC, May 22 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reporte...
About this update from Taiga Building Products Ltd.
[{"type":"text","content":"\n\n\n\nBURNABY, BC, May 22 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the\n"Company") today reported fourth quarter and March 31, 2009 fiscal year\nearnings.\n\n\n Fiscal Year 2009 Earnings Results\n\n\nFor the fiscal period ending March 31, 2009, sales were $1,005.9 million,\ndown 5.5% from $1,064.9 million last year. Sales were lower primarily due to\nreduced new home construction levels in the last three months of the year.\nGross margin for the fiscal year was $100.6 million or 10.0% of sales compared\nto $111.4 million or 10.5% of sales in 2008. This translates to a 9.7%\nreduction in gross margin dollars for the year.\n\n\nNet earnings for the fiscal year ended March 31, 2009 were $0.2 million\ncompared to $2.2 million in 2008. EBITDA for the fiscal period decreased to\n$27.7 million compared to $42.8 million in 2008.\n\n\n Fourth Quarter Ended March 31, 2009 Earnings Results\n\n\nSales for the three months ended March 31, 2009 were $178.8 million, down\n15.3% from $211.2 million reported for the same quarter last year. This is\nprimarily due to the reduced demand, as new housing activity slowed\ndramatically in the period. Gross margin for the fourth quarter was $17.6\nmillion or 9.8% of sales compared to $28.1 million or 13.3% of sales in the\ncomparative quarter of 2008. The 37.4% reduction in gross margin dollars\nreflects weaker sales revenue, falling prices and a more competitive\nenvironment. Net loss for the fourth quarter ended March 31, 2009 was $4.5\nmillion compared to Net loss of $3.6 million in the comparative quarter of\n2008. EBITDA was negative $1.8 million compared to positive $12.0 million for\nthe comparative quarter of 2008.\n\n\n Liquidity Management\n\n\nAs announced in Taiga's March 23, 2009 Press Release, the Company\ncontinues to undertake major cost reduction initiatives. On an annual basis,\nsavings are expected to exceed $22.0 million.\n\n\nOn April 9, 2009, Taiga announced it is deferring monthly interest\npayments on its 14% Notes and expects this will continue for the foreseeable\nfuture. The interest payment deferral, along with cost management initiatives\nare providing appropriate levels of liquidity under current market conditions.\nAs a result Taiga does not expect to breach any financial covenants associated\nwith its credit facilities.\n\n\nPer Taiga's divid...