BURNABY, BC, Feb. 23, 2024 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the year ended December 31, 2023.
Fourth Quarter Ended December 31, 2023 Earnings Results
The Company's consolidated net sales for the quarter ended December 31, 2023 were $367.7 million compared to $400.8 million over the same quarter last year. A decrease in sales by $33.1 million.
Gross margin for the quarter ended December 31, 2023 decreased to $42.4 million from $49.4 million over the same quarter last year. The decrease in gross margin was primarily due to lower commodity prices during the quarter.
Net earnings for the quarter ended December 31, 2023 had a slight decreased to $9.4 million compared to $9.7 million over the same period last year primarily due to lower sales accompanied by an increase in operating costs.
EBITDA for the quarter ended December 31, 2023 was $13.1 million compared to $17.2 million for the same period last year. EBITDA decreased primarily due to lower margins earned during the quarter.
Year Ended December 31, 2023Earnings Results
Sales for the year ended December 31, 2023 were $1,679.7 million compared to $2,192.7 million in the prior year. The decrease in sales was largely due the Company experiencing lower selling prices for its commodity products.
Gross margin for the year ended December 31, 2023 decreased to $198.4 million from $291.2 million in the prior year. The decrease in gross margin was primarily due to lower commodity prices during the period.
Net earnings for the year ended December 31, 2023 were $61.3 million compared to $88.6 million in the prior year. The decrease in net earnings was primarily due to decreased gross margins during the period.
EBITDA for the year ended December 31, 2023 was $91.3 million compared to $139.3 million in the prior year. EBITDA decreased primarily due to lower margins earned during the period.
Consolidated Statement of Earnings
For the Three Months Ended
|
December 31,
|
|
(in thousands of Canadian dollars, except for per share amounts)
|
2023
|
2022
|
|
Sales
|
367,658
|
400,813
|
|
Gross margin
|
42,448
|
49,431
|
|
Distribution expense
|
8,241
|
7,933
|
|
Selling and administration expense
|
24,335
|
27,210
|
|
Finance expense
|
(425)
|
1,055
|
|
Subordinated debt interest expense
|
-
|
113
|
|
Other expense (income)
|
(61)
|
20
|
|
Earnings (loss) before income taxes
|
10,358
|
13,100
|
|
Income tax expense
|
968
|
3,387
|
|
Net earnings (loss)
|
9,390
|
9,713
|
|
Net earnings (loss) per share(1)
|
0.09
|
0.09
|
|
EBITDA(2)
|
13,141
|
17,221
|
The following is the reconciliation of net earnings to EBITDA:
|
|
December 31,
|
|
(in thousands of Canadian dollars)
|
|
2023
|
2022
|
|
Net earnings (loss)
|
|
9,390
|
9,713
|
|
Income tax expense
|
|
968
|
3,387
|
|
Finance and subordinated debt interest expense
|
|
(425)
|
1,168
|
|
Amortization
|
|
3,208
|
2,953
|
|
EBITDA
|
|
13,141
|
17,221
|
Consolidated Statement of Earnings
For the Year ended
|
December 31,
|
|
(in thousands of Canadian dollars, except for per share amounts)
|
2023
|
2022
|
|
Sales
|
1,679,667
|
2,192,705
|
|
Gross margin
|
198,395
|
291,153
|
|
Distribution expense
|
32,259
|
29,941
|
|
Selling and administration expense
|
86,980
|
133,522
|
|
Finance expense
|
2,302
|
6,553
|
|
Subordinated debt interest expense
|
-
|
769
|
|
Other expense (income)
|
169
|
(140)
|
|
Earnings before income taxes
|
76,685
|
120,508
|
|
Income tax expense
|
15,384
|
31,880
|
|
Net earnings
|
61,301
|
88,628
|
|
Net earnings per share(1)
|
0.57
|
0.82
|
|
EBITDA(2)
|
91,263
|
139,299
|
The following is the reconciliation of net earnings to EBITDA:
|
|
December 31,
|
|
(in thousands of Canadian dollars)
|
|
2023
|
2022
|
|
Net earnings
|
|
61,301
|
88,628
|
|
Income tax expense
|
|
15,384
|
31,880
|
|
Finance and subordinated debt interest expense
|
|
2,302
|
7,322
|
|
Amortization
|
|
12,276
|
11,469
|
|
EBITDA
|
|
91,263
|
139,299
|
|
|
|
|
|
Notes:
|
|
(1) Earnings per share is calculated using the weighted average number of shares.
|
|
(2) Reference is made above to EBITDA, which represents earnings before interest, taxes, and amortization. As there is no generally accepted method of calculating EBITDA, the measure as calculated by Taiga might not be comparable to similarly titled measures reported by other issuers. EBITDA is presented as management believes it is a useful indicator of a company's ability to meet debt service and capital expenditure requirements and because management interprets trends in EBITDA as an indicator of relative operating performance. EBITDA should not be considered by an investor as an alternative to net income or cash flows as determined in accordance with IFRS. For the disclosure of the manner in which EBITDA is calculated and reconciliation to net earnings refer to the "EBITDA" section of the Company's management's discussion and analysis which will be available shortly on SEDAR at www.sedar.com.
|
The foregoing selected financial information is qualified in its entirety by and should be read in conjunction with our consolidated financial statements for the year ended December 31, 2023 and accompanying notes and management's discussion and analysis which will be available shortly on SEDAR+ at www.sedarplus.ca.
SOURCE Taiga Building Products Ltd.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/February2024/23/c4025.html