Dorel announces third quarter results

  • New Caloi acquisition boosts Recreational/Leisure
  • Excluding one-time charges, third quarter net income would have been US$0.64 per diluted share

EXCHANGES
TSX: DII.B, DII.A

MONTREAL, Nov. 7, 2013 /PRNewswire/ - Dorel Industries Inc. (TSX: DII.B DII.A) today announced results for the third quarter and nine months ended September 30, 2013. Revenue for the quarter was US$607.3 million compared to US$613.3 million a year ago. Net income for the period was US$11.1 million or US$0.34 per diluted share compared to US$20.0 million or US$0.63 per diluted share in 2012.

Total revenue for the nine months was US$1.80 billion compared to US$1.87 billion in the prior year. Net income was US$46.6 million or US$1.45 per diluted share, compared to US$79.4 million or US$2.48 per diluted share for the year-to-date a year ago.

The third quarter results include one-time charges totaling US$9.4 million, after tax. Year-to-date these costs total US$10.5 million. The acquisition of Brazilian bicycle company, Caloi, incurred after tax costs of US$4.5 million in the quarter and US$5.6 million year-to-date, principally related to foreign exchange losses on the put option liability associated with the transaction. The remaining US$4.9 million, after tax, pertains to Dorel's potential cost following a US$26 million amount assessed in a U.S. car seat judgment against the Company. Excluding these costs, third quarter net income would have been US$20.5 million or US$0.64 per diluted share.

"2013 has been a challenging year in our core businesses and we have been focused on making the required adjustments including rigorous concentration on new product development. I am pleased that many innovative products have recently been launched, particularly in our Juvenile segment. Furthermore we have seen an improvement since the second quarter in Recreational/Leisure's operating profit. We are taking measures to improve this business," stated Dorel President and CEO Martin Schwartz.

"We are continuing to invest heavily in our businesses, as evidenced by the Caloi transaction and Dorel's purchase of the majority stake in the Cannondale Pro Cycling team. Home Furnishings held its revenue and operating profit steady with last year, despite a still difficult retail environment. The segment's on-line sales maintained their steady growth trend," commented Mr. Schwartz.

 
Summary of Financial Highlights
Third Quarters Ended September 30
All figures in thousands of US $, except per share amounts
  2013   2012 Change %
Total revenue 607,298   613,295 (1.0%)
Net income 11,105   19,986 (44.4%)
  Per share - Basic 0.35   0.64 (45.3%)
  Per share - Diluted 0.34   0.63 (46.0%)
Average number of shares outstanding -        
Diluted weighted average 32,207,439   31,878,391  
         
         
Summary of Financial Highlights
Nine Months Ended September 30
All figures in thousands of US $, except per share amounts
  2013   2012 Change %
Total revenue 1,801,915   1,868,106 (3.5%)
Net income 46,645   79,390 (41.2%)
  Per share - Basic 1.47   2.50 (41.2%)
  Per share - Diluted 1.45   2.48 (41.5%)
Average number of shares outstanding -        
Diluted weighted average 32,169,642   32,041,423  


Juvenile Segment

 
Third Quarters Ended September 30
  2013 2012  
  $ % of rev. $ % of rev. Change %
Total revenue 238,983   249,126   (4.1%)
Gross profit 64,911 27.2% 69,080 27.7% (6.0%)
Operating profit 5,027 2.1% 16,889 6.8% (70.2%)
           
           
Nine Months Ended September 30
  2013 2012  
  $ % of rev. $ % of rev. Change %
Total revenue 737,628   773,406   (4.6%)
Gross profit 208,178 28.2% 212,480 27.5% (2.0%)
Operating profit 38,770 5.3% 54,429 7.0% (28.8%)


Organic revenue declined approximately 6% in both the quarter and the first nine months due to difficult economies and a slower retail environment in certain European and North American markets. Partially offsetting this has been growth in Latin America where sales continue to improve.

Operating profit for the third quarter was significantly impacted by the pre-tax expense of US$8.0 million related to the unfavorable U.S. car seat judgment, as detailed above. The U.S. car seat verdict will be appealed. Operating profit declined in most markets. In Europe, this was caused by lower sales combined with a less profitable sales mix. Excluding costs related to the U.S. car seat case, operating profit in North America for the quarter improved moderately over the prior year. In Latin America, operating profit for the quarter was slightly lower than the prior year. This was mostly due to the timing of sales and operating profit for the region remains on track to exceed the prior year.

Juvenile participated in two important trade shows during the quarter, in Cologne, Germany and in Las Vegas. Customer feedback was positive for the new product offerings which are being launched in the fourth quarter and in early 2014. Maxi-Cosi won the Cologne show's prestigious Innovation Award with its new 2Way Pearl i-Size car seat in the World of Travelling Baby category. Dorel is the first car seat manufacturer to offer a product which meets the new European standard and is the first-to-market with this important new safety innovation.

Recreational/Leisure Segment

 
Third Quarters Ended September 30
  2013 2012  
  $ % of rev. $ % of rev. Change %
Total revenue 231,591   228,953   1.2%
Gross profit 54,185 23.4% 55,295 24.2% (2.0%)
Operating profit 14,105 6.1% 12,516 5.5% 12.7%
           
           
Nine Months Ended September 30
  2013 2012  
  $ % of rev. $ % of rev. Change %
Total revenue 673,279   701,782   (4.1%)
Gross profit 160,024 23.8% 176,918 25.2% (9.5%)
Operating profit 27,327 4.1% 55,502 7.9% (50.8%)


The segment grew as a whole during the third quarter with revenue up 1.2% and an operating profit increase of 12.7% compared to the third quarter a year ago. Quarter-over-quarter, operating profit grew 283.2% to US$14.1 million from US$3.7 million. This progress was aided by the August 22nd acquisition of a 70% interest in Caloi, Brazil's largest bicycle brand. Organic revenue decreased by approximately 6% in the quarter as well as year-to-date due to the spring's poor weather and continued industry discounting on 2013 models.

Despite the global decrease in the bicycle market versus 2012, some market indicators are pointing to stabilization in the bicycle market in the months ahead. Cannondale Sports Group sales rebounded slightly in the quarter due to new model year introductions. Sales at Pacific Cycle were affected by a timing shift that will move some shipments into the fourth quarter. The segment's cost containment program which began during the last quarter is on track.

At Eurobike, the world's largest bicycle industry trade show, held in August, Cannondale, GT, and SUGOI displayed a range of products that were met with very favorable feedback. One of the most notable new products was the Cannondale Tramount, the first E-Mountain bike in the successful Cannondale E-series. The GT Sensor won a Eurobike Gold award in the mountain bike category.

Home Furnishings Segment

 
Third Quarters Ended September 30
  2013 2012  
  $ % of rev. $ % of rev. Change %
Total revenue 136,724   135,216   1.1%
Gross profit 15,528 11.4% 15,184 11.2% 2.3%
Operating profit 5,839 4.3% 5,813 4.3% 0.4%
           
           
Nine Months Ended September 30
  2013 2012  
  $ % of rev. $ % of rev. Change %
Total revenue 391,008   392,918   (0.5%)
Gross profit 50,753 13.0% 47,488 12.1% 6.9%
Operating profit 20,988 5.4% 18,298 4.7% 14.7%


The revenue increase for the quarter resulted predominantly from on-line sales which grew significantly versus the prior year, compensating for a slight decrease in sales to brick and mortar stores. The segment's drop ship vendor program continued to drive the significant growth in on-line sales. The number of products offered on-line continues to grow and Dorel's investment in technology specifically designed for this channel has begun to pay significant dividends. Sales of mattresses, futons and bunk beds continued to do very well.

While input costs were stable versus last year, overhead cost control, a more profitable sales mix and a more favorable rate of exchange on the Canadian dollar resulted in an improvement in gross profit.

Other
Cash flow provided by operating activities year-to-date doubled to US$107.5 million compared to US$53.8 million last year, mainly due to the net change in balances related to operations which positively impacted the cash flow provided by operating activities, offset partially by the negative impact of the lower net income.

The third quarter tax rate was a recovery of 8.6% and a year-to-date expense of 9.8%. This compares to expenses of 18.0% for the quarter and 16.1% year-to-date in 2012. The main causes of the variations are changes in the jurisdictions in which Dorel generated its income and the recognition of a tax benefit pertaining to an adjustment of tax balances following a foreign reorganization. The Company has revised its full year forecast and now expects its annual tax rate to be between 12% and 17%.

Quarterly dividend
The Board of Directors of Dorel declared its regular quarterly dividend of US$0.30 per share on the outstanding number of the Company's Class A Multiple Voting Shares, Class B Subordinate Voting Shares and Deferred Share Units. The dividend is payable on December 4, 2013 to shareholders of record as at the close of business on November 20, 2013.

Outlook
"As expected, Recreational/Leisure rebounded from a disappointing second quarter, and with the contribution of Caloi, exceeded prior year results in the third quarter. We expect the same in the fourth quarter and earnings for the fourth quarter should exceed prior year. However, the independent bike dealers channel is being cautious on pre-season inventory purchases given their experience with the poor spring 2013 weather. Juvenile participated in successful trade shows in the fall in both Europe and the U.S. and many of our new products were well received. Our Juvenile Latin American business remains on track for improved earnings there this year. Due to challenges in several markets, we have lowered our expectations for the segment from our previous outlook, and will not exceed 2012 full year earnings. In Home Furnishings, we expect that the segment's solid performance will continue, though we have tempered our full year expectations somewhat from our prior outlook," commented Mr. Schwartz.

"We are not satisfied with these results and we are actively working on many fronts to improve the business and its value for our shareholders. We have demonstrated this with our Caloi acquisition, allowing us to enter new profitable markets in our Recreational/Leisure segment. Despite these issues, it is anticipated that the operating profit for the fourth quarter will substantially be higher than the third quarter and will set the stage for an improved 2014," concluded Mr. Schwartz.

Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, November 7, 2013 at 11:00 A.M. Eastern Time. Interested parties can join the call by dialling 1-888-231-8191. The conference call can also be accessed via live webcast at www.dorel.com or www.newswire.ca. If you are unable to call in at this time, you may access a recording of the meeting by calling 1-855-859-2056 and entering the passcode 70886443 on your phone. This recording will be available on Thursday, November 7, 2013 as of 3:00 P.M. until 11:59 P.M. on Thursday, November 14, 2013.

Complete financial statements will be available on the Company's website, www.dorel.com, and will be available through the SEDAR websites.

Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle company. Dorel creates style and excitement in equal measure to safety, quality and value. The Company's lifestyle leadership position is pronounced in both its Juvenile and Bicycle categories with an array of trend-setting products. Dorel's powerfully branded products include Safety 1st, Quinny, Cosco, Maxi-Cosi and Bébé Confort in Juvenile, as well as Cannondale, Schwinn, GT, Mongoose, Caloi, IronHorse and SUGOI in Recreational/Leisure. Dorel's Home Furnishings segment markets a wide assortment of both domestically produced and imported furniture products, principally within North America. Dorel has annual sales of US$2.6 billion and employs 6,300 people in facilities located in twenty-four countries worldwide.

Caution Regarding Forward Looking Statements
Certain statements included in this press release may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation.  Except as may be required by Canadian securities laws, Dorel does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from Dorel's expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, Dorel cannot guarantee that any forward-looking statement will materialize. Forward-looking statements are provided in this press release for the purpose of giving information about Management's current expectations and plans and allowing investors and others to get a better understanding of Dorel's operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.

Forward-looking statements made in this press release are based on a number of assumptions that Dorel believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from the Company's expectations expressed in or implied by the forward-looking statements include:  general economic conditions; changes in product costs and supply channel; foreign currency fluctuations; customer and credit risk including the concentration of revenues with few customers; costs associated with product liability; changes in income tax legislation or the interpretation or application of those rules; the continued ability to develop products and support brand names; changes in the regulatory environment; continued access to capital resources and the related costs of borrowing; changes in assumptions in the valuation of goodwill and other intangible assets and subject to dividends being declared by the Board of Directors, there can be no certainty that Dorel's Dividend Policy will be maintained. These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in Dorel's annual MD&A and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors outlined in the previously mentioned documents are specifically incorporated herein by reference.

Dorel cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to Dorel or that Dorel currently deems to be immaterial may also have a material adverse effect on our business, financial condition or results of operations.  Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. Dorel therefore cannot describe the expected impact in a meaningful way or in the same way Dorel presents known risks affecting the business.

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
ALL FIGURES IN THOUSANDS OF US $
         
  as at   as at
  September 30,
2013 
  December 30,
2012
         
  (unaudited)   (unaudited)
        Restated
         
ASSETS        
CURRENT ASSETS        
  Cash and cash equivalents $ 36,995   $ 38,311
  Trade and other receivables   478,078     443,020
  Inventories   538,712     501,652
  Other financial assets   340     287
  Income taxes receivable   8,666     17,273
  Prepaid expenses   24,567     19,813
    1,087,358     1,020,356
           
NON-CURRENT ASSETS          
  Property, plant and equipment   180,343     157,127
  Intangible assets   513,353     423,057
  Goodwill   624,455     578,352
  Other financial assets   1,108     796
  Deferred tax assets   36,013     22,555
  Other assets   5,780     1,625
    1,361,052     1,183,512
  $ 2,448,410   $ 2,203,868
           
LIABILITIES          
CURRENT LIABILITIES          
  Bank indebtedness $ 73,570   $ 11,476
  Trade and other payables   370,344     337,451
  Other financial liabilities   2,467     4,236
  Income taxes payable   6,529     2,856
  Long-term debt   19,443     13,520
  Provisions   40,438     33,769
    512,791     403,308
           
NON-CURRENT LIABILITIES          
  Long-term debt   347,286     317,970
  Net pension and post-retirement defined benefit liabilities   35,484     35,091
  Deferred tax liabilities   100,244     87,922
  Provisions   2,049     1,969
  Other financial liabilities   101,715     43,600
  Other long-term liabilities   9,096     5,895
    595,874     492,447
           
EQUITY          
Share capital   190,056     180,856
Contributed surplus   26,914     27,192
Accumulated other comprehensive income   62,693     57,619
Retained earnings   1,060,082     1,042,446
    1,339,745     1,308,113
  $ 2,448,410   $ 2,203,868



DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENTS
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
                       
  Third Quarters Ended   Nine Months Ended
  September 30,
2013
  September 30,
2012
  September 30,
2013
  September 30,
2012
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
                    Restated
                       
Sales $ 604,323   $ 610,717   $ 1,791,435   $ 1,858,766
Licensing and commission income   2,975     2,578     10,480     9,340
TOTAL REVENUE   607,298     613,295     1,801,915     1,868,106
                       
Cost of sales   472,674     473,736     1,382,960     1,431,220
GROSS PROFIT   134,624     139,559     418,955     436,886
                       
                       
Selling expenses   54,809     55,577     172,581     164,875
General and administrative expenses   56,685     48,418     156,813     143,041
Research and development expenses   7,381     7,293     22,280     20,863
OPERATING PROFIT   15,749     28,271     67,281     108,107
                       
Finance expenses   5,524     3,895     15,591     13,506
INCOME BEFORE INCOME TAXES   10,225     24,376     51,690     94,601
                       
Income taxes expense    (880)     4,390     5,045     15,211
NET INCOME $ 11,105   $ 19,986   $ 46,645   $ 79,390
                       
EARNINGS PER SHARE                      
  Basic   $0.35     $0.64     $1.47     $2.50
  Diluted   $0.34     $0.63     $1.45     $2.48
                       
SHARES OUTSTANDING                      
  Basic - weighted average   31,877,463     31,387,163     31,802,843     31,733,936
  Diluted - weighted average   32,207,439     31,878,391     32,169,642     32,041,423



DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
                       
  Third Quarters Ended   Nine Months Ended
  September 30,
2013
  September 30,
2012
  September 30,
2013
  September 30,
2012
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
        Restated         Restated
                       
NET INCOME $ 11,105   $ 19,986   $ 46,645   $ 79,390
                       
OTHER COMPREHENSIVE INCOME (LOSS):                      
                       
Items that are or may be reclassified subsequently to net income:                      
Cumulative translation account:                      
Net change in unrealized foreign currency gains (losses) on translation of net investments in foreign operations, net of tax of nil   24,712     10,105     5,363     140
                       
Net changes in cash flow hedges:                      
Net change in unrealized gains (losses) on derivatives designated as cash flow hedges   (3,507)     217     317     1,121
Reclassification to income   246     236     749     731
Reclassification to the related non-financial asset   (300)     (2,951)     (1,058)     (8,017)
Deferred income taxes   920     651     (291)     1,571
    (2,641)     (1,847)     (283)     (4,594)
                       
Items that will not be reclassified to net income:                      
Defined benefit plans:                      
Remeasurements of the net pension and post-retirement benefit liabilities   (12)     (16)     (8)     793
Deferred income taxes   3     4     2     (355)
    (9)     (12)     (6)     438
                       
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)   22,062     8,246     5,074     (4,016)
                       
TOTAL COMPREHENSIVE INCOME  $ 33,167   $ 28,232   $ 51,719   $ 75,374

 

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
ALL FIGURES IN THOUSANDS OF US $
                             
  Attributable to equity holders of the Company
      Accumulated other comprehensive income        
  Share
Capital
Contributed
Surplus
Cumulative
Translation
Account
Cash Flow
Hedges
Defined
Benefit Plans
Retained
Earnings
Total Equity
  (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
                             
Balance as at December 30, 2011, as previously reported $ 174,782 $ 26,445 $ 52,760 $ 6,082 $ - $ 969,586 $ 1,229,655
Impact of change in accounting policy   -   -   -   -   (6,444)   6,520   76
                             
Balance as at December 30, 2011, as restated $ 174,782 $ 26,445 $ 52,760 $ 6,082 $ (6,444) $ 976,106 $ 1,229,731
                             
Total comprehensive income:                            
  Net income   -   -   -   -   -   79,390   79,390
  Other comprehensive income (loss)   -   -   140   (4,594)   438   -   (4,016)
  $ - $ - $ 140 $ (4,594) $ 438 $ 79,390 $ 75,374
                             
  Issued under stock option plan   5,121   -   -   -   -   -   5,121
  Reclassification from contributed surplus due to exercise of stock options   1,107   (1,107)   -   -   -   -   -
  Repurchase and cancellation of shares   (4,220)   -   -   -   -   -   (4,220)
  Premium paid on share repurchase   -   -   -   -   -   (13,592)   (13,592)
  Share-based payments   -   1,822   -   -   -     1,822
  Dividends on common shares   -   -   -   -   -   (18,986)   (18,986)
  Dividends on deferred share units   -   87   -   -   -   (87)   -
                             
Balance as at September 30, 2012 $ 176,790 $ 27,247 $ 52,900 $ 1,488 $ (6,006) $ 1,022,831 $ 1,275,250
                             
                             
Balance as at December 30, 2012, as previously reported $ 180,856 $ 27,192 $ 66,388 $ (1,036) $ - $ 1,034,298 $ 1,307,698
Impact of change in accounting policy     -   3     (7,736)   8,148   415
                             
Balance as at December 30, 2012, as restated $ 180,856 $ 27,192 $ 66,391 $ (1,036) $ (7,736) $ 1,042,446 $ 1,308,113
                             
Total comprehensive income:                            
  Net income   -   -   -   -   -   46,645   46,645
  Other comprehensive income (loss)   -   -   5,363   (283)   (6)   -   5,074
  $ - $ - $ 5,363 $ (283) $ (6) $ 46,645 $ 51,719
  Issued under stock option plan   7,281   -   -   -   -   -   7,281
  Reclassification from contributed surplus due to exercise of stock options   1,760   (1,760)   -   -   -   -   -
  Reclassification from contributed surplus due to settlement of deferred share units   227   (347)   -   -   -   -   (120)
  Repurchase and cancellation of shares   (68)   -   -   -   -   -   (68)
  Premium paid on share repurchase   -   -   -   -   -   (253)   (253)
  Share-based payments   -   1,686   -   -   -   -   1,686
  Dividends on common shares   -   -   -   -   -   (28,613)   (28,613)
  Dividends on deferred share units   -   143   -   -   -   (143)   -
                             
Balance as at September 30, 2013 $ 190,056 $ 26,914 $ 71,754 $ (1,319) $ (7,742) $ 1,060,082 $ 1,339,745


DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
               
  Third Quarters Ended   Nine Months Ended
  September 30,
2013
  September 30,
2012
  September 30,
2013
  September 30,
2012
  (unaudited)   (unaudited)   (unaudited)   (unaudited) 
              Restated
CASH PROVIDED BY (USED IN):              
               
OPERATING ACTIVITIES              
Net income $ 11,105   $ 19,986   $ 46,645   $ 79,390
Items not involving cash:              
  Depreciation and amortization 13,782   13,327   40,862   39,321
  Amortization of deferred financing costs 115   89   305   320
  Accretion expense on contingent consideration and put option liabilities 1,080   649   2,252   2,108
  Change of assumptions on contingent consideration and put option liabilities -   (457)   -   (1,430)
  Unrealized (gains) losses due to foreign exchange exposure on contingent consideration and put option liabilities 3,457   1,249   1,482   1,606
  Other finance expenses 4,329   3,157   13,034   11,078
  Income taxes expense (880)   4,390   5,045   15,211
  Share-based payments 305   480   1,381   1,708
  Defined benefit pension and post-retirement costs 727   716   2,219   2,415
  Loss (gain) on disposal of property, plant and equipment 61   4   (157)   (76)
  34,081   43,590   113,068   151,651
Net changes in balances related to operations:              
  Trade and other receivables 7,551   17,083   3,572   (33,434)
  Inventories 10,989   (19,548)   (2,323)   (76,832)
  Other financial assets 2,872   (146)   2,896   (978)
  Prepaid expenses 5,073   1,607   (4,479)   (2,470)
  Other assets (1,317)   -   (2,610)   -
  Trade and other payables (2,624)   (45,577)   2,776   26,019
  Net pension and post-retirement defined benefit liabilities (328)   (717)   (2,061)   (2,472)
  Provisions, other financial liabilities and other long-term liabilities 7,645   396   4,944   (250)
  29,861   (46,902)   2,715   (90,417)
               
  Income taxes paid (2,186)   (3,365)   (11,795)   (13,213)
  Income taxes received 1,929   9,686   11,820   15,255
  Interest paid (494)   (2,059)   (8,707)   (10,403)
  Interest received (109)   313   387   885
               
CASH PROVIDED BY OPERATING ACTIVITIES 63,082   1,263   107,488   53,758
               
FINANCING ACTIVITIES              
  Bank indebtedness 12,770   (10,494)   18,375   (9,381)
  Increase of long-term debt 5,796   43,883   25,676   62,614
  Repayments of long-term debt -   (16,500)   (13,007)   (16,500)
  Repayments of contingent consideration and put option liabilities -   (6,804)   (1,995)   (6,972)
  Financing costs (321)   -   (539)   (192)
  Share repurchase (321)   (863)   (321)   (17,812)
  Issuance of share capital 805   3,873   6,425   4,807
  Dividends on common shares (9,561)   (9,417)   (28,613)   (18,986)
  CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 9,168   3,678   6,001   (2,422)
               
INVESTING ACTIVITIES              
  Acquisition of businesses (71,924)   (10,270)   (71,924)   (14,667)
  Additions to property, plant and equipment (11,949)   (5,876)   (29,479)   (20,577)
  Disposals of property, plant and equipment 57   15   345   150
  Additions to intangible assets (4,933)   (4,159)   (15,810)   (14,593)
CASH USED IN INVESTING ACTIVITIES (88,749)   (20,290)   (116,868)   (49,687)
               
  Effect of foreign currency exchange rate changes on cash and cash equivalents 1,077   2,161   2,063   493
               
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (15,422)   (13,188)   (1,316)   2,142
               
Cash and cash equivalents, beginning of period 52,417   45,094   38,311   29,764
               
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 36,995   $ 31,906   $ 36,995   $ 31,906

 

DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
THIRD QUARTERS ENDED SEPTEMBER 30
ALL FIGURES IN THOUSANDS OF US $
                 
  Total Juvenile Recreational / Leisure Home Furnishings
  2013 2012 2013 2012 2013 2012 2013 2012
  (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Total revenue $ 607,298 $ 613,295 $ 238,983 $ 249,126 $ 231,591 $ 228,953 $ 136,724 $ 135,216
Cost of sales   472,674   473,736   174,072   180,046   177,406   173,658   121,196   120,032
Gross profit   134,624   139,559   64,911   69,080   54,185   55,295   15,528   15,184
Selling expenses   54,225   55,038   27,295   26,149   23,109   24,569   3,821   4,320
General and administrative expenses   48,047   42,010   27,570   21,046   15,572   16,647   4,905   4,317
Research and development expenses   7,381   7,293   5,019   4,996   1,399   1,563   963   734
Operating profit   24,971   35,218 $ 5,027 $ 16,889 $ 14,105 $ 12,516 $ 5,839 $ 5,813
Finance expenses   5,524   3,895                        
Corporate expenses   9,222   6,947                        
Income taxes   (880)   4,390                        
Net income $ 11,105 $ 19,986                        
                                 
Earnings per Share                                
  Basic $ 0.35 $ 0.64                        
  Diluted $ 0.34 $ 0.63                        
                                 
Depreciation and amortization included in operating profit $ 13,739 $ 13,285 $ 9,873 $ 9,707 $ 2,781 $ 2,437 $ 1,085 $ 1,141
                                   
                                   
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
NINE MONTHS ENDED SEPTEMBER 30
ALL FIGURES IN THOUSANDS OF US $
                 
  Total Juvenile Recreational / Leisure Home Furnishings
  2013 2012 2013 2012 2013 2012 2013 2012
  (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Total revenue $ 1,801,915 $ 1,868,106 $ 737,628 $ 773,406 $ 673,279 $ 701,782 $ 391,008 $ 392,918
Cost of sales   1,382,960   1,431,220   529,450   560,926   513,255   524,864   340,255   345,430
Gross Profit   418,955   436,886   208,178   212,480   160,024   176,918   50,753   47,488
Selling expenses   170,752   163,143   82,112   77,425   76,866   72,561   11,774   13,157
General and administrative expenses   138,838   124,651   72,415   65,916   51,137   44,973   15,286   13,762
Research and development expenses   22,280   20,863   14,881   14,710   4,694   3,882   2,705   2,271
Operating profit   87,085   128,229 $ 38,770 $ 54,429 $ 27,327 $ 55,502 $ 20,988 $ 18,298
Finance expenses   15,591   13,506                        
Corporate expenses   19,804   20,122                        
Income taxes   5,045   15,211                        
Net income $ 46,645 $ 79,390                        
                                 
Earnings per Share                                
  Basic $ 1.47 $ 2.50                        
  Diluted $ 1.45 $ 2.48                        
                                 
Depreciation and amortization included in operating profit $ 40,733 $ 39,198 $ 29,689 $ 28,941 $ 7,817 $ 6,734 $ 3,227 $ 3,523

 

 

SOURCE Dorel Industries Inc.



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