Taiga’s fiscal year 2016 margin improved to 8.6%

BURNABY, BC, June 17, 2016 - Taiga Building Products Ltd. (“Taiga” or the “Company”) today reported its financial results for fiscal year ended March 31, 2016.

Fiscal Year 2016 Earnings Results      

The Company's consolidated net sales for the year ended March 31, 2016 were $1,364.3 million compared to $1,348.7 million for the last fiscal year. The 1.2% increase in sales was largely due to stronger demand in its US and export markets.

Gross margin for the fiscal year ended March 31, 2016 increased to $117.0 million from $115.0 million in the previous year.  Gross margin percentage increased to 8.6% in the current year compared to 8.5% in the previous year.

Net earnings for the fiscal year ended March 31, 2016 increased to $11.7 million from $11.1 million last year primarily due to increased gross margin. EBITDA for the year ended March 31, 2016 was $45.0 million compared to $44.1 million last year.

Fourth Quarter Ended March 31, 2016 Earnings Results   

Sales for the fourth quarter decreased to $279.9 million from $294.3 million in the same quarter last year. The current year’s fourth quarter was negatively impacted by decreased demand in Canada.

Gross margin for the fourth quarter was $24.0 million compared to $23.3 million in the same quarter last year.  Gross margin percentage for the fourth quarter was 8.6% compared to 7.9% for the same quarter last year.  The increase in gross margin was largely due to an increase in commodity prices. 

Net earnings for the fourth quarter was $0.7 million compared to a loss of ($0.6) million in the same quarter last year.  This was primarily due to increased foreign exchange losses in the same quarter last year. EBITDA for the fourth quarter was $8.6 million compared to $6.7 million in the same quarter last year.

Dividend                  

In light of weaker economic forecasts in Canada and the impact of the housing market in Alberta, the Board of Directors has decided not to declare and pay the first instalment payment of its semi-annual dividend policy with respect to the 2016 fiscal year’s net earnings. The decision regarding the second instalment payment with respect to the 2016 fiscal year’s net earnings will be addressed in early January 2017.

See attached PDF for complete press release and statement of earnings.

For further information regarding Taiga, please contact:

Mark Schneidereit-Hsu

CFO and VP, Finance & Administration

Tel: 604.438.1471

Email: mschneidereit@taigabuilding.com

Posting date: 
Friday, June 17, 2016

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