BURNABY, BC, Nov. 4, 2022 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the three and nine months ended September 30, 2022.

Third Quarter Ended September 30, 2022 Earnings Results

Sales for the quarter ended September 30, 2022 were $533.1 million compared to $484.6 million over the same period last year. The increase in sales by $48.5 million or 10% was largely due to higher selling prices for commodity products.

Gross margin for the quarter ended September 30, 2022 increased to $63.8 million from $7.6 million over the same period last year. In the 2021 comparative period commodity prices fell dramatically and the Company booked a $13.4 million inventory reserve due to the impact falling commodity prices had on its treated inventory values.

Net earnings (loss) for the quarter ended September 30, 2022 increased to income of $18.6 million compared to a loss of ($5.2) million over the same period last year.  This was primarily due to higher gross margin.

EBITDA for the quarter ended September 30, 2022 was $29.8 million compared to ($1.8) million for the same period last year. EBITDA increased primarily due to higher margin earned during the quarter.

Nine Months Ended September 30, 2022Earnings Results

Sales for the nine months ended September 30, 2022 were $1,791.9 million compared to $1,807.2 million over the same period last year.

Gross margin for the nine months ended September 30, 2022 decreased to $241.7 million from $245.9 million over the same period last year.

Net earnings for the nine month period ended September 30, 2022 were $78.9 million compared to $82.4 million for the same period last year.

EBITDA for the nine months ended September 30, 2022 was $122.1 million compared to $127.8 million for the same period last year.

Condensed Consolidated Statement of Earnings

For the Three Months Ended

September 30, (in thousands of Canadian dollars, except for per share amounts) 2022 2021 Sales 533,066 484,563 Gross margin 63,846 7,646 Distribution expense 7,333 6,834 Selling and administration expense 29,658 5,399 Finance expense 1,494 1,855 Subordinated debt interest expense 218 218 Other (income) expense (11) 12 Earnings (loss) before income taxes 25,154 (6,672) Income tax expense (recovery) 6,534 (1,432) Net earnings (loss) 18,620 (5,240) Net earnings (loss) per share(1) 0.17 (0.05) EBITDA(2) 29,764 (1,841)



The following is the reconciliation of net earnings to EBITDA:

September 30,  (in thousands of Canadian dollars) 2022 2021 Net earnings (loss) 18,620 (5,240) Income tax expense (recovery) 6,534 (1,432) Finance and subordinated debt interest expense  1,712 2,073 Amortization 2,898 2,758 EBITDA 29,764 (1,841)

Condensed Consolidated Statement of Earnings

For the Nine Months Ended

September 30, (in thousands of Canadian dollars, except for per share amounts) 2022 2021 Sales 1,791,892 1,807,213 Gross margin 241,722 245,907 Distribution expense 22,008 20,708 Selling and administration expense 106,312 105,493 Finance expense 5,498 5,795 Subordinated debt interest expense 656 656 Other (income) expense (160) 302 Earnings before income taxes 107,408 112,953 Income tax expense 28,493 30,549 Net earnings  78,915 82,404 Net earnings per share(1) 0.73 0.76 EBITDA(2) 122,079 127,756

The following is the reconciliation of net earnings to EBITDA:

September 30, (in thousands of Canadian dollars) 2022 2021 Net earnings  78,915 82,404 Income tax expense  28,493 30,549 Finance and subordinated debt interest expense  6,154 6,451 Amortization 8,517 8,352 EBITDA 122,079 127,756

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 unaudited condensed interim consolidated financial statements for three and nine months ended September 30, 2022 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. Cision

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