Taiga’s Q2 sales up by 1.2%, but margin hurt by declining lumber prices

BURNABY, BC, November 5th, 2015 - Taiga Building Products Ltd. (“Taiga” or the “Company”) today reported its financial results for the three and six months ended September 30, 2015.

Second Quarter Ended September 30, 2015 Earnings Results    

Sales for the second quarter increased to $388.0 million from $383.6 million in the same quarter last year. The increase in sales by $4.4 million or 1.2% was largely due to increased demand in the US.

Gross margin for the second quarter was $33.6 million compared to $34.4 million in the same quarter last year.  Gross margin percentage for the second quarter was 8.7% compared to 9.0% for the same quarter last year. The gross margin percentage for the current quarter was impacted by a decline in commodity prices.

Net earnings for the quarter decreased to $4.6 million from $5.7 million in the same quarter last year primarily due to decreased gross margin dollars.

EBITDA for the quarter ended September 30, 2015 was $12.9 million compared to $13.7 million for the same period last year.   

Six Months Ended September 30, 2015 Earnings Results

Sales for the six months ended September 30, 2015 were $792.0 million compared to $758.3 million over the same period last year. The increase in sales by $33.6 million or 4% was largely due to higher sales from US and export operations selling into the United States.

Gross margin for the six months ended September 30, 2015 increased to $68.0 million from $67.5 million over the same period last year. Gross margin percentage for the six months ended decreased to 8.6% compared to 8.9% over the same period last year. The gross margin percentage was lower in the current year’s period due to a decline in commodity prices.

Net earnings for the six month period ended September 30, 2015 were $11.1 million compared to $11.2 million for the same period last year.

EBITDA for the six months ended September 30, 2015 decreased to $28.8 million compared to $29.9 million for the same period last year. 

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

For further information:

Mark Schneidereit-Hsu, CFO and VP, Finance & Administration, Tel: 604.438.1471, Email: mschneidereit@taigabuilding.com