June 20, 2013 — Burnaby, BC Taiga’s Fiscal Year 2013 Earnings Up 180% and Sales Up 17%
Taiga Building Products Ltd. (“Taiga” or the “Company”) today reported fourth quarter and fiscal year ended March 31, 2013 financial results.
Fiscal Year 2013 Earnings Results
Net earnings for the year ended March 31, 2013 increased to $10.4 million from $3.7 million last year. The 180% increase was primarily due to increased gross margin.
The Company’s consolidated net sales for the year ended March 31, 2013 were $1,132.7 million compared to $971.6 million for the last fiscal year. The 17% increase in sales was largely due to higher commodity prices and stronger demand from the United States.
Gross margin for the fiscal year ended March 31, 2013 increased to $102.8 million from $95.8 million in the previous year. Gross margin percentage for the year declined to 9.1% compared to 9.9%, as the growth in sales of lower margin commodity products outpaced the higher margin products.
EBITDA for the year ended March 31, 2013 was $42.9 million compared to $34.6 million last year.
Fourth Quarter Ended March 31, 2013 Earnings Results
Net earnings for the fourth quarter increased to $0.4 million compared to a net loss of $1.5 million in the same quarter last year.
Sales for the fourth quarter increased to $259.6 million from $227.0 million in the same quarter last year. Strong commodity prices and increased sales from our US divisions were the primary contributors to the 14% increase in sales.
Gross margin for the fourth quarter was $21.8 million compared to $22.6 million in the same quarter last year. Taiga’s gross margin percentage for the quarter ended March 31, 2013 was 8.4% compared to 9.9% for the same period last year. Lower margin commodity products made up a larger percentage of the product mix in Q4 2013, compared with the same quarter of the prior year. In addition, the reversal of product cost over-accruals was lower compared to the same quarter last year.
EBITDA was $7.5 million compared to $6.2 million in the same quarter last year.
In order to support higher working capital levels resulting from higher commodity prices, the Board of Directors has decided not to declare and pay the first installment payment of its semi-annual dividend policy with respect to the 2013 fiscal year’s net earnings. The decision regarding the second installment payment with respect to the 2013 fiscal year’s net earnings will be announced in early January 2014.
For further information regarding Taiga, please contact:
CFO and VP, Finance & Administration