CanWel Building Materials reported 2Q revenues of $207 million

Aug 03, 2012. /Lesprom Network/. CanWel Building Materials Group Ltd. announced its 2Q financial results for the three-month period ended June 30, 2012. For the three-month period ended June 30, 2012, revenues amounted to $207 million compared to $205 million in the same period in 2011. The increase in revenue relates primarily to improved market conditions for construction materials together with additional treated wood sales volumes, as the company said in the press release received by Lesprom Network. The additional treated wood sales volumes were supported by the establishment of the Northwest Wood Treaters’ operations which asset acquisition closed in the 1Q 2012. Gross margin amounted to $24.4 million, or a 2.1% increase versus $23.9 million during the second quarter of 2011. Gross margin as a percentage of revenues was 11.8% in the quarter, an improvement compared to the 11.7% achieved in the same quarter of 2011. The increase in margin percentage is mainly due to higher prices for construction materials and ongoing cost management. Net earnings for the 2Q 2012 doubled to $5.3 million when compared to the same period in 2011, when net earnings amounted to $2.6 million. EBITDA for the three months ended June 30, 2012 was $9.8 million compared to $6.3 million in the same quarter of 2011. The EBITDA in the 2Q 2011 was impacted by the one-time costs of $776,000 related to the re-organization of BLC. Adjusted EBITDA equaled EBITDA of $9.8 million given the Company had no one-time costs during the 2Q 2012, representing a 37% increase when compared to Adjusted EBITDA of $7.1 million during the 2Q 2011. "Despite the continued choppy macroeconomic environment, CanWel's financial performance in the second quarter is a testament to the strength and quality of our underlying business foundation," noted Amar S. Doman, Chairman and CEO of CanWel. "I am especially pleased with our continued focus and success in growth of higher margin products and construction materials, which represented approximately 58% of our revenue mix in the 2Q. Together with our ongoing focus on cost management, our second quarter results demonstrate strength in gross margin and EBITDA." CanWel Building Materials is one of Canada’s largest national distributors in the building materials and related products sector, operating distribution centres coast to coast in all major cities and strategic locations across Canada. CanWel distributes a wide range of building materials, lumber, and renovation products.