BURNABY, B.C. – Taiga Building Products Ltd. (TSX:TBL) has cited higher commodity prices and strong sales in the United States for a big improvement in both fourth-quarter and full-year results.
However, the B.C.-based distributor of building products said it has decided to cancel the first-instalment of its semi-annual dividend, citing the need to support high levels of working capital as a result of higher commodity prices.
It said a decision regarding the second instalment payment will be announced in early January 2014.
In the fourth quarter ended March 31, Taiga said it earned net income of $365,000 or a penny per share, reversing a year-earlier loss of $1.5 million or five cents per share.
Sales for the quarter ended March 31 increased to $259.6 million from $227 million in the same quarter last year.
“Strong commodity prices and increased sales from our U.S. divisions were the primary contributors to the 14 per cent increase in sales,” it said in a release.
For the full year, Taiga reported net earnings of $10.4 million or 32 cents per share, on sales of $1.13 billion, up from $3.7 million or 11 cents per share on sales of $971.6 million.
Taiga distributes building products, including dimension lumber, panel products, treated wood, engineered wood, roofing materials and the like to building supply dealers and industrial manufactures through 15 distribution centres across Canada and two in California. Taiga also produces treated wood at three facilities in Canada.