Taiga (TBL) delivers record Q1 performance

BURNABY, BC, May 7, 2021 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") today reported its financial results for the three months ended March 31, 2021.

First Quarter Ended March 31, 2021 Earnings Results

The Company's consolidated net sales for the quarter ended March 31, 2021 were $535.9 million compared to $320.3 million over the same period last year. The increase in sales by $215.6 million or 67% was largely due to increased selling prices for commodity products. 

Gross margin for the quarter ended March 31, 2021 increased to $90.4 million from $30.6 million over the same period last year. The increase in gross margin was primarily due to rising commodity prices during the quarter.

Net earnings for the quarter ended March 31, 2021 increased to $29.2 million from $6.6 million over the same period last year primarily due to increased gross margin.

EBITDA for the quarter ended March 31, 2021 was $45.1 million compared to $13.1 million for the same period last year. 

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 declined by over 30% early on in the pandemic (April 2020) but have since recovered and exceeded expectations both in fiscal 2020 and so far in fiscal 2021.  The pandemic has increased demand for detached housing which combined with record high commodity prices and low borrowing rates has had a positive impact on Taiga's business. The extent to which these events may continue to 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, the rate at which vaccines are administered, the effectiveness of vaccines against the coronavirus and its mutations, subsequent outbreaks, business disruptions, and the effectiveness of actions taken in Canada, the United States and other countries to contain and treat the disease.  These events are highly uncertain and as such, the Company cannot predict with any certainty how the progression of the coronavirus pandemic and these events will ultimately impact the Company's financial performance in 2021.

Condensed Consolidated Statement of Earnings
For the Three Months Ended

The following is the reconciliation of net earnings to EBITDA:                                      

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 the three months ended March 31, 2021 and accompanying notes and management's discussion and analysis which will be available shortly on SEDAR at www.sedar.com.

SOURCE Taiga Building Products Ltd.