February 11, 2014 — Burnaby, BC Taiga Building Products Ltd. (“Taiga” or the “Company”) reported its financial results for the three and nine months ended December 31, 2013.
Three Months Ended December 31, 2013
Taiga’s consolidated net sales for the quarter ended December 31, 2013 were $264.1 million compared to $247.7 million in the same period last year. The increase in sales by $16.4 million or 6.6% was largely due to higher sales from US operations as well as higher average lumber prices.
Gross margin for the quarter ended December 31, 2013 decreased to $20.8 million from $21.4 million in the same period last year. Gross margin percentage for the quarter declined to 7.9% compared to 8.6% in the same period last year. The gross margin percentage was negatively impacted by the increase in inventory reserve related to mark to market adjustments.
Taiga recorded a net loss of $0.5 million for the quarter ended December 31, 2013 compared to net earnings of $0.4 million in the same period last year.
EBITDA for the quarter ended December 31, 2013 was $6.5 million compared to $7.1 million in the same period last year.
Nine Months Ended December 31, 2013
Taiga’s consolidated net sales for the nine months ended December 31, 2013 were $944.8 million compared to $873.1 million in the same period last year. The 8.2% 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 nine months ended December 31, 2013 decreased to $75.9 million from $81.0 million in the previous year. Gross margin percentage for the nine months declined to 8.0% compared to 9.3% in the same period last 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 nine months ended December 31, 2013 decreased to $5.0 million compared to $10.1 million in the same period last year primarily due to lower gross margin dollars and higher selling and administrative expenses.
See attached PDF for complete press release and statement of earnings.
For additional information regarding Taiga please contact:
Mark Schneidereit-Hsu
CFO and VP, Finance & Administration
Tel: 604.438.1471
Fax: 604.439.4242
Attachment: https://www.taigabuilding.com/wp-content/uploads/archives/2014_quarterly_report_q3_pr.pdf