Taiga Q4 Margin Impacted by Commodity Price Fluctuations

Taiga Building Products Ltd. (“Taiga” or the “Company”) reported its financial results for the year ended December 31, 2021.

Fourth Quarter Ended December 31, 2021 Earnings Results

The Company’s consolidated net sales for the quarter ended December 31, 2021 were $412.5 million compared to $411.3 million over the same quarter last year.

Gross margin for the quarter ended December 31, 2021 decreased to $54.3 million from $60.4 million over the same quarter last year.

Net earnings for the quarter ended December 31, 2021 were $10.3 million compared to net earnings of $17.6 million over the same quarter last year.

EBITDA for the quarter ended December 31, 2021 was $17.4 million compared to an EBITDA of $29.4 million for the same quarter last year.

Year Ended December 31, 2021 Earnings Results

Sales for the year ended December 31, 2021 were $2,219.7 million compared to $1,589.1 million in the prior year. The increase in sales by $630.6 million or 40% was largely due to increased selling prices for commodity products.

Gross margin dollars for the year ended December 31, 2021 increased to $300.2 million from

$225.2 million over the same period last year. The increase was primarily from higher selling prices for commodity products.

Net earnings for the year ended December 31, 2021 were $92.7 million compared to $70.8 million in the prior year.

EBITDA for the year ended December 31, 2021 was $145.2 million compared to $116.9 million in the prior 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 pandemic has had a positive impact on Taiga’s business and financial performance in fiscal 2020 and the first half of fiscal 2021. This is a direct result of the increased demand for detached housing, record high commodity prices and low borrowing rates experienced during the pandemic. However, commodity prices did fall dramatically during the Company’s third quarter of fiscal 2021 which had a material impact on its results. The extent to which these events may continue to impact the Company’s business activities in the same manner in future periods will depend on a number of factors, 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, the demand for detached housing in North America, future commodity prices, interest rates and the strength of the general economy. 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 beyond fiscal year 2021.

For the full fourth quarter results, click here.

Contact:

Mark Schneidereit-Hsu – CFO and VP, Finance & Administration – mschneidereit@taigabuilding.com – (604) 438-1471

Source: Taiga Building Products Ltd.