Business
Taiga Building Products Ltd. - First Quarter Earnings Turnaround due to Cost Reductions and Foreign Exchange Gains
BURNABY, BC, July 31 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") is pleased t...
About this update from Taiga Building Products Ltd.
[{"type":"text","content":"\n\n\n\nBURNABY, BC, July 31 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the\n"Company") is pleased to announce its results for the three months ended June\n30, 2009. Net earnings were $6.6 million or $0.20 per share compared to $4.2\nmillion or $0.13 per share for the comparative quarter in the previous year\nand also improved from a net loss of $4.5 million or $0.14 loss per share of\nthe fourth quarter ended March 31, 2009. Earnings improvements were\nattributable to cost reductions and foreign exchange gains.\n\n\nSales were reduced by 17.5% to $246.9 million, from $299.3 million in the\nfirst quarter of the prior fiscal year, primarily due to dramatic declines in\nnew home construction in Western Canada.\n\n\nGross margin dollars decreased to $27.2 million from $31.8 million for\nthe first quarter year over year. Gross margin percentage for the quarter\nincreased to 11.0% from 10.6% in the first quarter of the prior fiscal year.\nThe increase in gross margin percentage was attributable to an upward movement\nin commodity prices.\n\n\nEBITDA for the three months ended June 30, 2009 was $15.3 million\ncompared to $13.3 million in the same period in the prior year.\n\n\nDuring the quarter, Taiga continued to defer its subordinated note\ninterest payments, which, when unpaid, attract a further 14% interest on\ninterest. The amount of deferred interest payable representing the interests\nearned from the month of March to June 2009 was $4.0 million as at June 30,\n2009.\n\n\n Selected Consolidated Statement of Earnings\n\n For the Three Months Ended June 30\n (in thousands of dollars, except for per share amounts)\n (Unaudited)\n\n\n 2009 2008\n $ $\n-------------------------------------------------------------------------\nSales 246,911 299,336\nGross margin 27,222 31,783\nDistribution 4,264 3,996\nSelling and administration 8,707 15,528\nInterest 1,043 2,032\nSubordinated debt interest expense 4,027 3,946\nNon-operating income (183) (253)\n-------------------------------------------------------------------------\nEarnings before income taxes 9,364 6,534\nProvision for income taxes 2,771 2,378\n-------------------------------------------------------------------------\nNet earnings 6,593 4,156\nNet earnings per share(1) 0.20 0.13\nEBITDA(2) 15,320 13,298\n\n\nThe following is the reconciliation of net ear...