Taiga’s Q2 sales down 14% but margin percentage holds steady at 8.8%

BURNABY, BC, November 3rd, 2016 - Taiga Building Products Ltd. (“Taiga” or the “Company”) today reported its financial results for the three and six months ended September 30, 2016.

Second Quarter Ended September 30, 2016 Earnings Results    

Sales for the second quarter decreased to $335.1 million from $388.0 million in the same quarter last year. The decrease in sales by $52.9 million or 14% was largely due to the ceased operations relating to one of the Company’s business units. 

Gross margin dollars for the second quarter decreased to $29.5 million compared to $33.6 million in the same quarter last year.  Gross margin percentage for the second quarter was 8.8% compared to 8.7% in the same quarter last year. The increase in gross margin percentage was primarily due to higher commodity prices in the current quarter compared to the same quarter last year. 

Net earnings for the quarter decreased to $3.1 million from $4.6 million in the same quarter last year primarily due to decreased gross margin dollars.

EBITDA for the quarter ended September 30, 2016 was $11.3 million compared to $12.9 million for the same period last year.   

Six Months Ended September 30, 2016 Earnings Results

Sales for the six months ended September 30, 2016 were $660.5 million compared to $792.0 million over the same period last year. The decrease in sales by $131.5 million or 17% was largely due to the ceased operations relating to one of the Company’s business units. 

Gross margin dollars for the six months ended September 30, 2016 decreased to $60.9 million from $68.0 million over the same period last year. Gross margin percentage for the six months ended September 30, 2016 increased to 9.2% compared to 8.6% over the same period last year. The gross margin percentage was higher in the current period due to an increase in commodity prices.

Net earnings for the six month period ended September 30, 2016 were $7.9 million compared to $11.1 million for the same period last year.

EBITDA for the six months ended September 30, 2016 decreased to $24.8 million compared to $28.8 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