Taiga Building Products Reports Higher Third Quarter Sales

Taiga Building Products Ltd. (“Taiga” or the “Company”) reported its financial results for the three and nine months ended September 30, 2020.

Third Quarter Ended September 30, 2020 Earnings Results

The Company’s consolidated net sales for the quarter ended September 30, 2020 were $500.7 million compared to $358.9 million over the same period last year. The increase in sales was largely due to Taiga experiencing higher selling prices for its commodity products during the quarter. Taiga’s US operations also experienced a significant increase compared to the same period last year, particularly Exterior Wood, Inc acquired in 2018 and located in Washougal, WA.

Gross margin percentage increased by 9.1% for the three months ended September 30, 2020 compared to the same period last year. These increases were primarily due to rising commodity prices and robust results experienced by Taiga’s US operations.

Net earnings for the quarter ended September 30, 2020 increased to $33.4 million from $8.3 million for the same period last year primarily due to the increase in gross margin.

EBITDA for the quarter ended September 30, 2020 was $50.5 million compared to $17.2 million for the same period last year. EBITDA increased primarily due to higher margin during the period partially offset by higher selling and administration expenses.

Nine Months Ended September 30, 2020 Earnings Results

The Company’s consolidated net sales for the nine months ended September 30, 2020 were $1,177.8 million compared to $1,001.0 million over the same period last year. The increase in sales by $176.8 million or 18% was largely due to the Company experiencing higher selling prices for its commodity products during the period.

Gross margin for the nine months ended September 30, 2020 increased 4.1% compared with the same period last year. These increases were primarily due to rising commodity prices and increased margin earned by Taiga’s US operations.

Net earnings for the nine months period ended September 30, 2020 was $53.2 million compared to $20.1 million over the same period last year primarily due to the foregoing.

EBITDA was $87.5 million for the nine months ended September 30, 2020, compared to $44.8 million over the same period last year. EBITDA increased primarily due to higher margin during the period partially offset by higher selling and administration expenses.

Management Update on the COVID-19 Pandemic

The outbreak of the coronavirus, also known as “COVID-19”, has spread across the globe and is impacting worldwide economic activity. Conditions surrounding the coronavirus continue to rapidly evolve and government authorities have implemented emergency measures to mitigate the spread of the virus. As at the financial statement approval date, the outbreak and the related mitigation measures have had the following impacts on the Company’s operations, among others: sales decline of over 30% for the month of April. The Company’s revenues recovered subsequent to this. However, the extent to which these events may impact the Company’s business activities will depend on future developments, such as the ultimate geographic spread of the disease, the duration of the outbreak, travel restrictions, subsequent outbreaks, business disruptions, and the effectiveness of actions taken in Canada and other countries to contain and treat the disease. These events are highly uncertain and as such, the Company cannot determine the ultimate financial impacts at this time. However, the Company recognizes that there will be economic and financial challenges to be faced for the balance of the fiscal year.

For the full third quarter results, click here.

Contact:

Mark Schneidereit-Hsu – Vice President & CFO – mschneidereit@taigabuilding.com – (604) 438-1471

Source: Taiga Building Products Ltd.