Business
Taiga Building Products Ltd. announces third quarter results and $10 million rights offering
BURNABY, BC, February 12, 2009 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") re...
About this update from Taiga Building Products Ltd.
[{"type":"text","content":"\n\n\n\nBURNABY, BC, February 12, 2009 /CNW/ - Taiga Building Products Ltd.\n("Taiga" or the "Company") reported its results for the three and nine months\nended December 31, 2008 and announced a $10 million rights offering.\n\n\nResults from Operations - Three Months Ended December 31, 2008\n\n\nSales for the three months ended December 31, 2008 was $213.8 million\ncompared to $235.1 million for the three months ended December 31, 2007.\n\n\nThe 9.1% decline in sales is primarily attributable to slowing product\ndemand as retailers and other professional suppliers adjust inventory levels\nin advance of slowing housing starts in Canada. Taiga continued to see strong\nperformance in flooring and other renovation products offsetting weakness in\nstructural products.\n\n\nGross margin decreased by 11.3% to $21.3 million for the current quarter\ncompared to $24.0 million for the same period last year. The decrease was due\nto lower sales volume. Gross margin percentages remained steady at 10.0%\ncompared to 10.2% for the same period last year.\n\n\nEBITDA was $2.9 million for the current quarter, compared to $4.3 million\nin the same period last year.\n\n\nNet loss for the three months ended December 31, 2008 was $2.6 million or\n$0.08 per share compared to $1.9 million or $0.06 per share for the same\nperiod last year.\n\n\nResults from Operations - Nine Months Ended December 31, 2008\n\n\nSales revenue for the nine months ended December 31, 2008 was $827.2\nmillion compared to $853.7 million for the same period last fiscal year. The\ndecline of 3.1% was primarily attributable to the factors noted above in the\nthird quarter.\n\n\nGross margin for the current nine month period decreased to $90.8 million\ncompared to $91.1 million for the same period last year. Gross margin\npercentage for the period increased slightly to 11.0% from 10.7%.\n\n\nEBITDA decreased to $28.6 million for the nine month period, compared to\n$30.8 million in the same period last year.\n\n\nNet earnings for the nine months ended December 31, 2008 was $4.7 million\nor $0.15 per share. For the nine months ended December 31, 2007, Taiga earned\n$5.9 million or $0.18 per share.\n\n\nLiquidity\n\n\nTo increase the Company's financial flexibility and to remain in\ncompliance with existing credit agreements, the Company is currently\nundertaking...