Mr. Mark Schneidereit-Hsu reports

TAIGA (TBL) ANNOUNCES SECOND QUARTER RESULTS IMPACTED BY LOW COMMODITY PRICES

Taiga Building Products Ltd. has released its financial results for the three and six months ended June 30, 2023.

Second quarter ended June 30, 2023, earnings results:

• Sales for the quarter ended June 30, 2023, were $446.9-million compared with $646.1-million over the same period last year. The decrease in sales by $199.2-million or 31 per cent was largely due to decreased selling prices for commodity products.
• Gross margin for the quarter ended June 30, 2023, decreased to $52.4-million from $69.0-million over the same period last year. Gross margin percentage was 11.7 per cent for the three months ended June 30, 2023, compared with 10.7 per cent in the same period last year. The decrease in gross margin dollars was primarily due to falling commodity prices during the quarter.
• Net earnings for the quarter ended June 30, 2023, decreased to $17.0-million from $20.8-million over the same period last year primarily due to decreased gross margin dollars.
• EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter ended June 30, 2023, was $28.0-million compared with $33.7-million for the same period last year. EBITDA decreased primarily due to lower margin dollars earned during the quarter.

Six months ended June 30, 2023, earnings results:

• Sales for the six months ended June 30, 2023, were $855.4-million compared with $1,258.8-million over the same period last year. The decrease in sales by $403.4-million or 32 per cent was largely due to the company experiencing lower selling prices for its commodity products.
• Gross margin for the six months ended June 30, 2023, decreased to $99.5-million from $177.9-million over the same period last year. Gross margin percentage was 11.6 per cent for the six months ended June 30, 2023, compared with 14.1 per cent in the same period last year. These decreases were primarily due to falling commodity prices during the period.
• Net earnings for the six months ended June 30, 2023, were $30.5-million compared with $60.3-million for the same period last year primarily due to decreased gross margin.
• EBITDA for the six months ended June 30, 2023, was $50.5-million compared with $92.3-million for the same period last year. EBITDA decreased primarily due to lower margin dollars earned during the period.

The foregoing selected financial information is qualified in its entirety by and should be read in conjunction with the company's unaudited condensed interim consolidated financial statements for three and six months ended June 30, 2023, and accompanying notes and management's discussion and analysis, which will be available shortly on SEDAR.

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