Business
Taiga's Q1 affected by volatile commodity prices
BURNABY, BC, Aug. 8, 2013 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company")...
About this update from Taiga Building Products Ltd.
[{"type":"text","content":"\n\n\nBURNABY, BC, Aug. 8, 2013 /CNW/ - Taiga Building Products Ltd. (\"Taiga\"\n or the \"Company\") today reported first quarter ended June 30, 2013\n financial results.\n\n\nThree Months Ended June 30, 2013\n\n\nThe Company's consolidated net sales for the quarter ended June 30, 2013\n were $335.8 million compared to $309.5 million in the same period last\n year. The 8% increase in sales was largely due to higher year over year\n commodity prices and improved sales volume from US operations and\n export operations selling into the United States and Asian markets.\n\n\nGross margin for the quarter ended June 30, 2013 decreased to $25.4\n million from $30.8 million in the same period last year. Gross margin\n percentage for the quarter declined to 7.6% compared to 9.9% in the\n same period last year. This decline was primarily due to a sharp fall\n in commodity prices during the quarter, generating inventory losses as\n a result.\n\n\nNet earnings for the quarter ended June 30, 2013 decreased to $1.5\n million from $5.9 million in the same period last year primarily due to\n decreased gross margin.\n\n\nEBITDA for the quarter ended June 30, 2013 was $9.6 million from $15.4\n million in the same period last year primarily due to decreased gross\n margin.\n\n\nCondensed Consolidated Statement of Earnings \n\n\nFor the Three Months Year Ended\n\n\n \n\n\nJune 30,\n\n\n(in thousands of Canadian dollars, except for per share amounts)\n\n\n2013\n\n\n2012\n\n\nSales\n\n\n      335,803\n\n\n309,508\n\n\nGross margin\n\n\n25,424\n\n\n30,756\n\n\nDistribution expense\n\n\n4,416\n\n\n4,524\n\n\nSelling and administration expense\n\n\n12,804\n\n\n12,013\n\n\nFinance expense\n\n\n2,078\n\n\n1,903\n\n\nSubordinated debt interest expense\n\n\n4,089\n\n\n4,071\n\n\nOther income\n\n\n(383)\n\n\n(260)\n\n\nEarnings before income taxes\n\n\n2,420\n\n\n8,505\n\n\nIncome tax expense\n\n\n907\n\n\n2,588\n\n\nNet earnings\n\n\n1,513\n\n\n5,917\n\n\nNet earnings per share(1)\n\n0.05\n\n\n0.18\n\n\nEBITDA(2)\n\n9,591\n\n\n15,425\n\n\n\n\n\nThe following is the reconciliation of net earnings to EBITDA:\n\n\n \n\n\n \n\n\nJune 30, \n\n\n(in thousands of Canadian dollars)\n\n\n \n\n\n2013\n\n\n2012\n\n\nNet earnings\n\n\n \n\n\n1,513\n\n\n5,917\n\n\nIncome tax expense\n\n\n \n\n\n907\n\n\n2,...