Taiga’s Q4 2013 earnings up 180%
June 21, 2013, Burnaby, B.C. - Taiga Building Products reported its 2013 financial results for its fourth quarter and fiscal year that ended March 31, 2013, showing earnings up 180 per cent and sales up 17 per cent.
Fiscal year 2013 earnings results
Net earnings for the year increased to $10.4 million from $3.7 million last year. The 180 per cent increase was primarily due to increased gross margin.
Taiga's consolidated net sales were $1,132.7 million compared to $971.6 million for the last fiscal year. The 17 per cent increase in sales was largely due to higher commodity prices and stronger demand from the U.S.
Gross margin increased to $102.8 million from $95.8 million in the previous year. Gross margin percentage for the year declined to 9.1 per cent compared to 9.9 per cent, as the growth in sales of lower margin commodity products outpaced the higher margin products.
EBITDA for the year was $42.9 million compared to $34.6 million last year.
Fourth quarter earnings results
Net earnings for the fourth quarter increased to $400,000 compared to a net loss of $1.5 million in the same quarter last year.
Sales for the fourth quarter increased to $259.6 million from $227 million in the same quarter last year. Strong commodity prices and increased sales from the U.S. divisions were the primary contributors to the 14 per cent increase in sales.
Gross margin for the fourth quarter was $21.8 million compared to $22.6 million in the same quarter last year. Taiga's gross margin percentage for the quarter was 8.4 per cent compared to 9.9 per cent for the same period last year. Lower margin commodity products made up a larger percentage of the product mix in Q4 2013, compared with the same quarter of the prior year. In addition, the reversal of product cost over-accruals was lower compared to the same quarter last year.
EBITDA was $7.5 million compared to $6.2 million in the same quarter last year.
In order to support higher working capital levels resulting from higher commodity prices, the Board of Directors has decided not to declare and pay the first instalment payment of its semi-annual dividend policy with respect to the 2013 fiscal year's net earnings. The decision regarding the second instalment payment with respect to the 2013 fiscal year's net earnings will be announced in early January 2014.
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