Taiga Building Products posts net earnings of US$3.3M in three months ended Sept. 30, up from US$1.9M a year earlier; sales increased 6.6% to US$278M

Wendy Lisney

BURNABY, British Columbia , November 4, 2011 (press release) – Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its quarterly results for the three months ended September 30, 2011.

Taiga's quarterly results for the three months ended September 30, 2011 are presented in accordance with International Financial Reporting Standards ("IFRS") and comparative information for the corresponding 2010 results have been restated accordingly.

Earnings Results - Three Months Ended September 30, 2011

Taiga's consolidated net sales for the quarter ended September 30, 2011 were $278.0 million compared to $260.8 million during the same period last year, an increase of $17.2 million or 6.6%. The increase was due to a strong demand for product during the peak building season and relatively steady commodity prices.

Gross margin for the quarter ended September 30, 2011 was $27.9 million compared to $22.6 million over the same period last year. Gross margin percentage for the quarter was 10.0% compared to 8.7% over the same period last year. Commodity prices were low, but relatively stable during the current quarter. Gross margin percentage in the second quarter of last year was severely impacted by a sharp decline in commodity prices.

Net earnings for the quarter ended September 30, 2011 were $3.3 million, an increase of $1.4 million, compared to $1.9 million over the same period last year. The increase was primarily due to an increase in gross margin, partially offset by higher variable compensation costs and higher borrowing costs.

EBITDA for the quarter ended September 30, 2011 was $11.0 million, an increase of $2.3 million, compared to $8.7 million over the same period last year.

Earnings Results - Six Months Ended September 30, 2011

Taiga's consolidated net sales for the six months ended September 30, 2011 were $541.6 million compared to $555.1 million over the same period last year, a decrease of $13.5 million or 2.4%. The weaker sales figures were due to longer winter weather conditions which delayed demand.

Gross margin for the six months ended September 30, 2011 was $54.7 million compared to $52.6 million over the same period last year. Gross margin percentage for the quarter was 10.1% compared to 9.5% over the same period last year. The increase was due to more stable commodity prices compared for the same period last year.

Net earnings for the six months ended September 30, 2011 were $7.0 million, a decrease of $0.2 million compared to $7.2 million over the same period last year. This slight decrease was due to higher operating expenses which were partially offset by an increased gross margin. The company's net earnings performance is reflective of stable Canadian housing starts activity over the comparable period.

EBITDA for the six months ended September 30, 2011 was $22.8 million, an increase of $0.5 million, compared to $22.3 million over the same period last year.

Looking forward in the next 6 months, Taiga expects Canadian housing starts and renovation activity to remain relatively flat, US housing start activity to continue to be weak, and associated commodity prices to remain depressed. Taiga will remain vigilant with cost control, work to increase inventory efficiency and focus on cash conservation.

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