Business
Taiga Building Products Ltd. - Steady Second Quarter Results Lead to 37% Increase in Net Earnings Year to Date
Taiga Building Products Ltd. - Steady Second Quarter Results Lead to 37% Increase in Net Earnings...
About this update from Taiga Building Products Ltd.
[{"type":"text","content":"\n\n\n\nNov. 13, 2009 (Canada NewsWire Group) -- BURNABY, BC, Nov. 13 /CNW/ -- Taiga Building Products Ltd. (\"Taiga\" or the \"Company\") is pleased to announce its results for the three and six months ended September 30, 2009.Results from Operations - Three Months Ended September 30, 2009Net earnings for the quarter were $3.4 million or constant at $0.10 per share compared to $3.2 million or $0.10 per share for the comparative quarter in the previous year.Sales weakness was offset by reduced selling and admin costs as management continued its cost reduction program. Also, income tax related expenses were lower compared to the prior year. The prior year comparative quarter included costs associated with Taiga's CRA tax assessment. On the other hand, distribution expenses were higher due to non-cash charge of $1.1 million as the Company consolidated its warehouse operations in the Greater Toronto Area by closing a warehouse in Brampton and migrating its operation into a warehouse in Milton.Sales were reduced by 17.1% to $260.4 million, from $314.0 million in the second quarter of the prior fiscal year, primarily due to declining demand in new home construction.Gross margin dollars decreased to $28.2 million from $32.4 million or 13% approximately, for the second quarter year over year. Gross margin percentage for the quarter increased to 10.8% from 10.3% in the second quarter of the prior fiscal year. The increase in gross margin percentage was attributable to commodity product trading gains and reduced purchasing costs due to a stronger Canadian dollar.EBITDA for the three months ended September 30, 2009 was $10.6 million compared to $13.3 million in the same quarter of the prior year.Results from Operations - Six Months Ended September 30, 2009Net earnings were $10.0 million or $0.31 per share compared to $7.3 million or $0.23 per share for the comparative period. Earnings improvements were attributable to cost reductions and foreign exchange gains.Sales were reduced by 17.3% to $507.3 million for the six months ended September 30, 2009 compared to $613.4 million for the six months ended September 30, 2008, primarily due to declining demand in new home construction.Gross margin dollars decreased to $55.5 million from $64.2 million for the six months ended September 30, 2008 from the same period last year. Gross margin percenta...