BURNABY, BC, Nov. 8, 2024 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the three and nine months ended September 30, 2024.

Taiga Building Products Ltd. Logo (CNW Group/Taiga Building Products Ltd.)

Third Quarter Ended September 30, 2024 Earnings Results

Sales for the quarter ended September 30, 2024 were $423.9 million compared to $456.6 million over the same period last year.  Sales decreased by $32.7 million or 7% mainly due to a reduction in commodity products sold.

Gross margin for the quarter ended September 30, 2024 decreased to $45.5 million from $56.4 million over the same period last year. Gross margin percentage was 10.7% for the three months ended September 30, 2024 compared to 12.4% over the same period last year. The decrease in gross margin dollars was mainly due to a reduction in commodity products sold.

Net earnings for the quarter ended September 30, 2024 decreased to $14.3 million from $21.4 million over the same period last year primarily due to decreased gross margin dollars.

EBITDA for the quarter ended September 30, 2024 was $21.5 million compared to $27.6 million for the same period last year. EBITDA decreased primarily due to lower margin dollars earned during the quarter.

Nine Months Ended September 30, 2024Earnings Results

Sales for the nine months ended September 30, 2024 were $1,245.3 million compared to $1,312.0 million over the same period last year.  Sales decreased by $66.7 million or 5% mainly due to a reduction in commodity products sold.

Gross margin for the nine months ended September 30, 2024 decreased to $132.0 million from $155.9 million over the same period last year. Gross margin percentage was 10.6% for the nine months ended September 30, 2024 compared to 11.9% over the same period last year.  The decrease in gross margin dollars was mainly due to a reduction in commodity products sold.

Net earnings for the nine months ended September 30, 2024 were $41.0 million compared to $51.9 million for the same period last year primarily due to a decreased gross margin.

EBITDA for the nine months ended September 30, 2024 was $64.0 million compared to $78.1 million for the same period last year.  EBITDA decreased primarily due to lower margin dollars earned during the period.

Condensed Consolidated Statement of Earnings

For the Three Months Ended


September 30,

(in thousands of Canadian dollars, except for per share amounts)

2024

2023

Sales

423,886

456,615

Gross margin

45,544

56,403

Distribution expense

8,151

8,135

Selling and administration expense

19,169

23,447

Finance expense

3

98

Other (income) expense

(109)

263

Earnings before income taxes

18,330

24,460

Income tax expense

3,999

3,056

Net earnings

14,331

21,404

Net earnings per share(1)

0.13

0.20

EBITDA(2)

21,497

27,617

The following is the reconciliation of net earnings to EBITDA:



September 30,

(in thousands of Canadian dollars)


2024

2023

Net earnings


14,331

21,404

Income tax expense


3,999

3,056

Finance and subordinated debt interest expense


3

98

Amortization


3,164

3,059

EBITDA


21,497

27,617

For the Nine Months Ended


September 30,

(in thousands of Canadian dollars, except for per share amounts)

2024

2023

Sales

1,245,340

1,312,009

Gross margin

132,009

155,947

Distribution expense

24,605

24,018

Selling and administration expense

53,183

62,645

Finance expense

202

2,727

Other income

(183)

230

Earnings before income taxes

54,202

66,327

Income tax expense

13,177

14,416

Net earnings

41,025

51,911

Net earnings per share(1)

0.38

0.48

EBITDA(2)

64,037

78,121

The following is the reconciliation of net earnings to EBITDA:



September 30,

(in thousands of Canadian dollars)


2024

2023

Net earnings


41,025

51,911

Income tax expense


13,177

14,416

Finance and subordinated debt interest expense


202

2,727

Amortization


9,634

9,067

EBITDA


64,037

78,121

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, 2024 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.

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