Taiga's (TBL) Q4 sales decreased 8.0% and margin fell to 7.4% due to falling commodity prices
BURNABY, BC, Feb. 22, 2019 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the period ended December 31, 2018.
Fourth Quarter Ended December 31, 2018 Earnings Results
The Company's consolidated net sales for the quarter ended December 31, 2018 were $303.9 million compared to $329.8 million over the same quarter last year. The decrease in sales by $25.9 million or 8.0% was largely due to decreased demand for the Company's products in all segments and lower commodity prices.
Gross margin for the quarter ended December 31, 2018 decreased to $24.0 million from $27.4 million over the same quarter last year. Gross margin percentage decreased to 7.9% in the current quarter compared to 8.3% in the same quarter last year. The decrease in gross margin percentage was primarily due to commodity prices falling in the current quarter.
Net earnings for the quarter ended December 31, 2018 were $1.5 million compared to a loss of $15.2 million over the same period last year. The net loss in the same period last year would have been net earnings of $3.4 million if the $18.6 million loss on the debt settlement were excluded.
EBITDA for the quarter ended December 31, 2018 was $5.8 million compared to an EBITDA of ($9.1) million for the same quarter last year. EBITDA would have been $9.4 million during the same quarter last year if the $18.6 million loss on the debt settlement were excluded.
Condensed Consolidated Statement of Earnings | ||
For the Three Months Ended | ||
December 31, | ||
(in thousands of Canadian dollars, except for per share amounts) | 2018 | 2017 |
Sales | 303,879 | 329,821 |
Gross margin | 23,988 | 27,358 |
Distribution expense | 6,826 | 5,753 |
Selling and administration expense | 13,234 | 13,451 |
Loss on debt settlement | - | 18,570 |
Finance expense | 2,087 | 1,140 |
Subordinated debt interest expense | 219 | 2,534 |
Other income | (105) | (132) |
Earnings before income taxes | 1,727 | (13,958) |
Income tax expense | 187 | 1,237 |
Net earnings (loss) | 1,540 | (15,195) |
Net earnings (loss) per share(1) | 0.01 | (0.20) |
EBITDA(2) | 5,795 | (9,142) |
The following is the reconciliation of net earnings to EBITDA:
December 31, | |||
(in thousands of Canadian dollars) | 2018 | 2017 | |
Net earnings (loss) | 1,540 | (15,195) | |
Income tax expense | 187 | 1,237 | |
Finance and subordinated debt interest expense | 2,306 | 3,674 | |
Amortization | 1,762 | 1,142 | |
EBITDA | 5,795 | (9,142) | |
There was an $18.6 million non-cash loss on the settlement of debt due to the Exchange Offer. If this unusual item were excluded for the quarter ending December 31, 2017 than the EBITDA results would be:
December 31, | ||
(in thousands of Canadian dollars) | 2017 | |
Net loss | (15,195) | |
Loss on debt settlement | 18,570 | |
Income tax expense | 1,237 | |
Finance and subordinated debt interest expense | 3,674 | |
Amortization | 1,142 | |
Adjusted EBITDA | 9,428 |
Notes: |
The foregoing selected financial information is qualified in its entirety by and should be read in conjunction with, our audited consolidated financial statements for the year ended December 31, 2018 and accompanying notes and management's discussion and analysis which will be available shortly on SEDAR at www.sedar.com.
SOURCE Taiga Building Products Ltd.
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