Taiga Building Products reports net loss for quarter ended Dec. 31 2011 of C$1.7M compared to C$1.2M a year earlier, on sales up 2.4% to C$203.1M

BURNABY, British Columbia , February 10, 2012 (press release) – Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its quarterly results for the three months ended December 31, 2011.

The Company's quarterly results for the three months ended December 31, 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 December 31, 2011

The Company's consolidated net sales for the quarter ended December 31, 2011 were $203.1 million compared to $198.4 million during the same period last year, an increase of $4.7 million or 2.4%. Taiga continued to see a stronger demand for its product offering into the winter season compared to the same period last year.

Gross margin for the quarter ended December 31, 2011 was $18.6 million compared to $18.4 million over the same period last year. Gross margin percentage for the quarter was 9.2% compared to 9.3% over the same period last year. Stronger gross margin performance trends were muted by a one time inventory writedown of approximately $0.3 million.

Net loss for the quarter ended December 31, 2011 was $1.7 million compared to $1.2 million for the same period last year. The net loss increase was attributable to one time compensation and inventory writedowns of $0.6 million.

EBITDA for the quarter ended December 31, 2011 was $4.4 million compared to $5.1 million for the same period last year.

Earnings Results - Nine Months Ended December 31, 2011

Consolidated net sales for the nine months ended December 31, 2011 were $744.6 million compared to $753.5 million over the same period last year. The decrease was largely caused by a weaker performance in the first quarter due to lower commodity prices and poor weather. Taiga performed stronger in the second and third quarter as market demand recovered from a slow seasonal start.

Gross margin for the nine months ended December 31, 2011 increased to $73.3 million from $71.1 million over the same period last year. Gross margin percentage for the nine months increased to 9.8% from 9.4% during the same period last year. The increase was due to more stable commodity prices compared to the same period last year.

Net earnings for the nine month period ended December 31, 2011 were $5.2 million compared to $6.0 million during the same period last year. The decrease was due to higher operating expenses, and one-time inventory writeoffs, which were partially offset by strengthened gross margin.

For the nine month period ended December 31, 2011, EBITDA was $27.2 compared to $27.5 million over the same period last year.

The foregoing selected financial information is qualified in its entirety by and should be read in conjunction with, our unaudited interim consolidated financial statements for the quarter ended December 31, 2011 and accompanying notes and management's discussion and analysis which will be available shortly on Sedar at www.sedar.com.

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