Taiga’s Fiscal Year 2014 sales up by 5.4%, but earnings down by 51% due to margin pressure and Q4 weather

June 27, 2014 — Burnaby, BC​ - Taiga’s Fiscal Year 2014 sales up by 5.4%, but earnings down by 51% due to margin pressure and Q4 weather

Taiga Building Products Ltd. (“Taiga” or the “Company”) today reported its financial results for fiscal year and the three months ended March 31, 2014.

Fiscal Year 2014 Earnings Results

The Company's consolidated net sales for the year ended March 31, 2014 were $1,194.3 million compared to $1,132.7 million for the last fiscal year. The 5.4% increase in sales was largely due to higher sales from US and export operations selling into the United States and Asian markets as well as higher average lumber prices.

Gross margin for the fiscal year ended March 31, 2014 decreased to $96.8 million from $102.8 million in the previous year, representing a decrease in gross margin percentage to 8.1% in the year compared to 9.1% in the previous year. These declines were primarily due to lower gross margin percentage on sales of commodity products since commodity prices declined significantly during the first quarter.  

Net earnings for the fiscal year ended March 31, 2014 decreased to $5.1 million from $10.4 million last year primarily due to decreased gross margin. EBITDA for the year ended March 31, 2014 was $36.8 million compared to $42.9 million last year.

Fourth Quarter Ended March 31, 2014 Earnings Results   

Sales for the fourth quarter decreased to $249.5 million from $259.6 million in the same quarter last year. The decrease in sales was largely due to weaker demand caused by the severe winter conditions in central and eastern regions of North America.

Gross margin for the fourth quarter was $20.9 million compared to $21.8 million in the same quarter last year. Taiga’s gross margin percentage for the fourth quarter was 8.4% for both fourth quarters ended March 31, 2014 and 2013.

Net earnings for the fourth quarter decreased to $0.1 million compared to $0.4 million in the same quarter last year. EBITDA for the fourth quarter was $8.0 million compared to $7.5 million in the same quarter last year.

Dividend                  

In light of weaker profits resulting from stagnant commodity prices, 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 2014 fiscal year’s net earnings. The decision regarding the second instalment payment with respect to the 2014 fiscal year’s net earnings will be addressed in early January 2015.

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