2014

Dorel reports solid second quarter 2012

  • Company increases quarterly dividend by 100%
  • Net income increases 32% despite negative currency trend
  • Juvenile business improving

EXCHANGES
TSX: DII.B, DII.A

MONTREAL, Aug. 9, 2012 /PRNewswire/ - Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2012. Total revenue for the period was US$633.7 million, up 2.4% from US$619.0 million for the same quarter last year. Net income increased by 32.0% to US$30.3 million or US$0.95 per diluted share compared with US$23.0 million or US$0.70 per diluted share for the corresponding quarter of 2011.

Year-to-date revenue rose 2.3% to US$1.25 billion from to US$1.23 billion last year with net income for the six months increasing by 9.9% to US$59.5 million or US$1.85 per diluted share. This compares to net income of US$54.2 million or US$1.65 per diluted share for the first half of 2011.

The Board of Directors of Dorel has declared an increase in the Company's quarterly dividend to US$0.30 from US$0.15 on the Class A Multiple Voting Shares, Class B Subordinate Voting Shares and Deferred Share Units (DSU) of the Company. The first increased dividend amount of US$0.30 per share and DSU will be payable on September 6th, 2012 to shareholders of record at the close of business on August 23rd, 2012. The dividend policy was originally instituted in March 2007. Shareholders will now receive a total of US$1.20 per share per annum.

"Dorel has a proven track record of earnings and cash flow. We are optimistic about our long-term future earnings and are confident in our ability to sustain an increased dividend, thereby enhancing total return to our shareholders," stated Dorel President and CEO Martin Schwartz.

"Dorel performed well in our various business segments, despite a stubborn and unstable economy in the majority of our geographic markets.  We have maintained the positive momentum established in the final quarter of 2011 through a combination of strong marketing and judicious cost containment.

"Operating profit in the Juvenile segment grew 15% over the same quarter a year ago, despite a strengthening U.S. dollar which reduced earnings by approximately US$3.5 million in the quarter compared to the prior year.  Dorel Juvenile Group (DJG) USA improved as the tactical plan put in place last year has started to bring the needed results. Europe as a whole is very challenging, yet Dorel Europe maintained its profitability with solid results in Northern Europe and the positive contribution of the newly acquired Dorel Polska, based in Poland.  Another positive is Dorel Chile which saw growth in both its wholesale and retail businesses.

"Recreational/Leisure's top line grew once again, though it was tempered by adverse foreign exchange rates.  Profits in the quarter were flat as the negative impact of currency reduced earnings by approximately US$2.5 million.  Intense branding of the Cannondale line continues to drive results.  The Liquigas Cannondale Pro-Cycling Team has performed well this year with various victories.  In the recently completed Tour de France, Peter Sagan won the prestigious green jersey as well as three stages in the overall tour and Vincenzo Nibali placed third overall.  We are pleased with the sponsorship of the team and intend to maintain Dorel's commitment to the promotion of our brands.  As well, we continue to invest in R&D, driving expansion and distribution across the globe. Operating profit for the quarter grew in Home Furnishings and Internet sales were up considerably," commented Mr. Schwartz.

 
Summary of Financial Highlights
Second Quarters Ended June 30
All figures in thousands of US $, except per share amounts
  2012 2011 Change
%
Total revenue          633,711          619,010 2.4%
Net income            30,345            22,993 32.0%
  Per share - basic               0.95               0.70 35.7%
  Per share - diluted               0.95               0.70 35.7%
Average number of shares outstanding -
diluted weighted average
32,046,443 32,828,089  
       
Summary of Financial Highlights
Six Months ended June 30
All figures in thousands of US $, except per share amounts
  2012 2011 Change
%
Total revenue       1,254,811       1,226,793 2.3%
Net income            59,508            54,157 9.9%
  Per share - basic               1.87               1.66 12.7%
  Per share - diluted               1.85               1.65 12.1%
Average number of shares outstanding -
diluted weighted average
32,080,033 32,862,173  

Juvenile Segment

 
Second Quarters Ended June 30
  2012 2011  
  $ % of rev. $ % of rev. Change
%
Total revenue       254,781       243,965   4.4%
Gross profit         69,391 27.2%       61,736 25.3% 12.4%
Operating profit         17,118 6.7%       14,855 6.1% 15.2%
           
Six Months ended June 30
  2012 2011  
  $ % of rev. $ % of rev. Change
%
Total revenue       524,280       513,585   2.1%
Gross profit       143,758 27.4%     133,356 26.0% 7.8%
Operating profit         37,783 7.2%       38,527 7.5% (1.9%)

 

After adjusting for the impact of varying exchange rates and new businesses acquired, the second quarter organic revenue increase was approximately 1%, reversing a trend of declining organic sales growth.  Year-to-date, organic revenues declined by approximately 2%.

For the quarter, the largest factor in the earnings improvement was in operating profit at Dorel Juvenile Group (DJG) USA where sales increased by approximately 5% and gross margins benefitted from more stable costs. Dorel Chile also contributed to the profit increase.  The recent weakening of most currencies against the US dollar had a negative impact on earnings for the quarter of approximately US$3.5 million versus last year.  As such, the earnings increase would have been almost 40% if currencies were consistent year-over-year. At Dorel Europe, the Southern markets continue to endure difficult economic conditions, yet the division as a whole delivered improved earnings when expressed in Euros.

Recreational/Leisure Segment

 
Second Quarters Ended June 30
  2012 2011  
  $ % of rev. $ % of rev. Change
%
Total revenue       251,911     249,094   1.1%
Gross profit         63,183 25.1%     60,592 24.3% 4.3%
Operating profit         21,606 8.6%     21,274 8.5% 1.6%
           
Six Months ended June 30
  2012 2011  
  $ % of rev. $ % of rev. Change
%
Total revenue       472,829     449,521   5.2%
Gross profit       121,623 25.7%   111,587 24.8% 9.0%
Operating profit         42,986 9.1%     39,045 8.7% 10.1%

 

Organic sales growth, excluding the impact of foreign exchange variations on the segment's non-US based businesses was approximately 7% year-to-date. The increases are in the IBD channel in most of the segment's markets and are being driven by improved sales in several bike categories.  The decline in the value of the Euro versus the US dollar negatively impacted revenues by approximately 2% and as a result the reported revenue increase in the quarter was only 1.1%.  Sales in June were also lower as certain mass market customers reduced orders in an attempt to reduce their in-stock inventory levels.

Earnings were negatively impacted by the decline in the value of the Euro and certain other currencies against the US dollar. Specifically, compared to the prior year, Cycling Sports Group's (CSG) gross margin dollars were reduced by approximately US$2.5 million in the quarter. Approximately 50% of CSG's revenues are from markets outside of the United States and as such are affected by foreign currency more than the segment's mass market business which is mostly comprise of US-based customers. Progress continued to be made in returning to profitability at the segment's apparel division, which markets the SUGOI brand.

Home Furnishings Segment

 
Second Quarters Ended June 30
  2012 2011  
  $ % of rev. $ % of rev. Change
%
Total revenue       127,019   125,951   0.8%
Gross profit         16,574 13.0%    15,603 12.4% 6.2%
Operating profit           6,694 5.3%       6,267 5.0% 6.8%
           
Six Months ended June 30
  2012 2011  
  $ % of rev. $ % of rev. Change
%
Total revenue       257,702     263,687   (2.3%)
Gross profit         32,304 12.5%     32,789 12.4% (1.5%)
Operating profit         12,485 4.8%     14,017 5.3% (10.9%)



For the quarter, Home Furnishings revenues increased slightly versus the prior year as sales to the Internet sales channel offset declines in the segment's other major channels of distribution. Operating profit for the quarter increased versus both the prior year and this year's first quarter, as profitability was aided by a more stable cost environment.  Partially offsetting this was a less profitable sales mix at several of the segment's divisions.

Statements of Financial Position and Cash flows

The key financial position components of working capital, accounts receivable, inventory and accounts payable, all increased significantly compared to December 30, 2011 levels. However, this is in line with business requirements. Second quarter inventory increased to US$499.5 million, its highest level since last year's comparable period, to service shipments in the second half this year. Inventory is expected to return to levels similar to last year end by December 30, 2012. The higher inventory amount also explains the increase in accounts payable from US$323.6 million to US$391.7 million as certain purchases within the quarter remain to be paid.

For the first half of the year, cash flow provided by operating activities was US$52.5 million compared to US$39.4 million in 2011. Despite the changes to working capital, the net impact on cash flow was similar to the prior year.  Year-to-date investing activities totalled US$29.4 million versus US$24.8 million in 2011. As part of its Normal Course Issuer Bid, the Company disbursed US$16.9 million in the first six months, compared to US$2.6 million in the prior year. The Company also disbursed US$9.6 million year-to-date for dividends. These were the main factors in the first half US$3.6 million increase in debt, net of cash.

Outlook
"Pre-tax earnings for the second half this year are expected to be higher than last year, driven by advances in the Juvenile segment.  Specifically, significant progress in North America and a greater contribution from Latin America will ensure that we improve upon the disappointing third quarter in 2011. Recreational / Leisure remains on track to exceed last year's record earnings, whereas we expect Home Furnishings' operating profit to be slightly below last year's levels.  There was a significant tax recovery in last year's third quarter which will not re-occur this year. Our expectations for the 2012 tax rate remain in the range of 15% to 20%," commented Mr. Schwartz.

"While we expect input costs to remain relatively stable in the foreseeable future, exchange rates can be volatile and are difficult to predict. Our pre-tax income improvement expected for the balance of the year assumes exchange rates similar to those of today, but a further decline in currencies, especially the Euro, could negatively impact future earnings," concluded Mr. Schwartz.

Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, August 9, 2012 at 2:00 P.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 98095948# on your phone. This recording will be available on Thursday, August 9, 2012 as of 4:00 P.M. until 11:59 P.M. on Thursday, August 16, 2012.

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. Now in its 50th year, 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, 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$2.4 billion and employs 5,000 people in facilities located in twenty-two 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
June 30,
2012
  as at
December 30,
2011
       
  (unaudited)   (unaudited)
           
ASSETS          
CURRENT ASSETS          
  Cash and cash equivalents $ 45,094   $ 29,764
  Trade and other receivables   451,728     403,664
  Inventories   499,482     442,409
  Other financial assets   6,008     9,867
  Income taxes receivable   13,292     17,811
  Prepaid expenses   25,357     21,858
    1,040,961     925,373
           
NON-CURRENT ASSETS          
  Property, plant and equipment   156,212     158,363
  Intangible assets   407,578     411,171
  Goodwill   567,395     568,849
  Other financial assets   756    
  Deferred tax assets   34,215     31,096
  Other assets   1,747     1,717
    1,167,903     1,171,196
  $ 2,208,864   $ 2,096,569
           
LIABILITIES          
CURRENT LIABILITIES          
  Bank indebtedness $ 20,636   $ 20,130
  Trade and other payables   391,735     323,552
  Other financial liabilities   12,245     13,065
  Income taxes payable   4,441     2,315
  Long-term debt   17,033     17,279
  Provisions   35,922     37,096
    482,012     413,437
           
NON-CURRENT LIABILITIES          
  Long-term debt   316,785     298,160
  Pension and post-retirement benefit obligations   34,719     35,258
  Deferred tax liabilities   82,011     79,702
  Provisions   1,867     1,876
  Other financial liabilites   33,701     33,141
  Other long-term liabilities   5,430     5,340
    474,513     453,477
           
EQUITY          
SHARE CAPITAL   172,039     174,782
CONTRIBUTED SURPLUS   27,606     26,445
ACCUMULATED OTHER COMPREHENSIVE INCOME   46,134     58,842
RETAINED EARNINGS   1,006,560     969,586
    1,252,339     1,229,655
  $ 2,208,864   $ 2,096,569

 

 

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENTS
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
                       
  Second Quarters Ended     Six Months Ended
  June  30, 2012   June 30, 2011   June  30, 2012   June 30, 2011
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
                       
Sales $ 630,898   $ 615,710   $ 1,248,049   $ 1,220,127
Licensing and commission income   2,813     3,300     6,762     6,666
TOTAL REVENUE   633,711     619,010     1,254,811     1,226,793
                       
Cost of sales   484,563     481,079     957,126     949,061
GROSS PROFIT   149,148     137,931     297,685     277,732
                       
                       
Selling expenses   57,493     48,019     109,298     92,462
General and administrative expenses    44,108     44,482     94,738     90,260
Research and development expenses   6,583     7,740     13,570     15,330
OPERATING PROFIT   40,964     37,690     80,079     79,680
                       
Finance expenses   4,631     5,709     9,611     11,587
INCOME BEFORE INCOME TAXES   36,333     31,981     70,468     68,093
                       
Income taxes expense   5,988     8,988     10,960     13,936
NET INCOME $ 30,345   $ 22,993   $ 59,508   $ 54,157
                       
EARNINGS PER SHARE                      
  Basic $ 0.95   $ 0.70   $ 1.87   $ 1.66
  Diluted $ 0.95   $ 0.70   $ 1.85   $ 1.65
                       
SHARES OUTSTANDING                      
  Basic - weighted average   31,859,015     32,624,000     31,906,375     32,641,723
  Diluted - weighted average   32,046,443     32,828,089     32,080,033     32,862,173


DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
                       
  Second Quarters Ended   Six Months Ended
  June  30, 2012   June 30, 2011   June  30, 2012   June 30, 2011
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
                       
NET INCOME $ 30,345   $ 22,993   $ 59,508   $ 54,157
                       
OTHER COMPREHENSIVE INCOME (LOSS):                      
Cumulative translation account:                      
Net change in unrealized foreign currency gains (losses) on translation of net investments in
foreign operations, net of tax of nil
  (24,727)     12,297     (9,961)     38,699
                       
                       
Net changes in cash flow hedges:                      
Net change in unrealized gains (losses) on derivatives designated as cash flow hedges   2,635     (3,132)     904     (7,993)
Reclassification to income   252     248     495     1,271
Reclassification to the related non-financial asset   (2,602)     3,119     (5,066)     3,781
Deferred income taxes   (151)     167     920     911
    134     402     (2,747)     (2,030)
                       
Defined benefit plans:                      
Acturial gains (losses) on defined benefit plans   18     (36)     8     (122)
Deferred income taxes   (6)     (76)     (3)     (54)
    12     (112)     5     (176)
                       
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)   (24,581)     12,587     (12,703)     36,493
                       
TOTAL COMPREHENSIVE INCOME $ 5,764   $ 35,580   $ 46,805   $ 90,650


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   Retained earnings  
  Share
Capital
Contributed
Surplus
Cumulative
Translation
Account
Cash Flow
Hedges
  Defined
Benefit
Plans
Other
Retained
Earnings
Total
Equity
  (unaudited) (unaudited) (unaudited) (unaudited)   (unaudited) (unaudited) (unaudited)
                               
Balance as at December 30, 2010 $ 178,816 $ 23,776 $ 67,970 $ (1,032)   $ (2,312) $ 904,633 $ 1,171,851
                               
Net income   -   -   -   -     -   54,157   54,157
Total other comprehensive income (loss)   -   -   38,699   (2,030)     (176)   -   36,493
Issued under stock option plan   402   -   -   -     -   -   402
Reclassification from contributed surplus due to exercise of stock options   82   (82)   -   -     -   -   -
Repurchase and cancellation of shares   (531)   -   -   -     -   -   (531)
Premium paid on share repurchase   -   -   -   -     -   (2,026)   (2,026)
Share-based payments   -   1,614   -   -     -     1,614
Dividends on common shares   -   -   -   -     -   (9,780)   (9,780)
Dividends on deferred share units   -   34   -   -     -   (34)   -
                               
Balance as at June 30, 2011 $ 178,769 $ 25,342 $ 106,669 $ (3,062)     $ (2,488) $ 946,950 $ 1,252,180
                               
                               
Balance as at December 30, 2011 $ 174,782 $ 26,445 $ 52,760 $ 6,082     $ (7,236) $ 976,822 $ 1,229,655
                               
Net income   -   -   -   -     -   59,508   59,508
Total other comprehensive income (loss)   -   -   (9,961)   (2,747)     5   -   (12,703)
Issued under stock option plan   1,055   -     -     -   -   1,055
Reclassification from contributed surplus due to exercise of stock options   223   (223)   -   -     -   -   -
Repurchase and cancellation of shares   (4,021)   -   -   -     -   -   (4,021)
Premium paid on share repurchase   -   -   -   -     -   (12,928)   (12,928)
Share-based payments   -   1,342   -   -     -     1,342
Dividends on common shares   -     -   -     -   (9,569)   (9,569)
Dividends on deferred share units   -   42   -   -     -   (42)   -
                               
Balance as at June 30, 2012 $ 172,039 $ 27,606 $ 42,799 $ 3,335   $ (7,231) $ 1,013,791 $ 1,252,339



DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
                     
  Second Quarters Ended   Six Months Ended
  June  30, 2012   June 30, 2011   June  30, 2012   June 30, 2011
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
                       
CASH PROVIDED BY (USED IN):                      
                       
OPERATING ACTIVITIES                      
Net income $ 30,345   $ 22,993   $ 59,508   $ 54,157
Items not involving cash:                      
  Depreciation and amortization   12,965     14,428     25,994     27,612
  Amortization of deferred financing costs   90     277     231     646
  Accretion expense on contingent consideration and put option liabilities   544     556     1,459     1,087
  Change of assumptions on contingent consideration and put option liabilities   (973)     (973)     (973)     (973)
  Unrealized (gains)/losses due to foreign exchange exposure on contingent consideration and put option liabilities   (680)     193     357     (521)
  Other finance expenses   3,997     4,876     7,921     9,854
  Income taxes expense   5,988     8,988     10,960     13,936
  Share-based payments   642     584     1,228     1,395
  Pension and post-retirement defined benefit plans   722     834     1,456     1,692
  Gain on disposal of property, plant and equipment   (44)     (41)     (80)     (59)
    53,596     52,715     108,061     108,826
Net change in balances related to operations:                      
  Trade and other receivables   23,164     40,569     (50,517)     (63,088)
  Inventories   (66,384)     (6,726)     (57,284)     17,322
  Other financial assets   (212)     -     (832)     -
  Prepaid expenses   529     848     (4,077)     (1,536)
  Trade and other payables   52,655     (3,765)     71,596     9,460
  Pension and post-retirement benefit obligations   (554)     (787)     (1,755)     (2,099)
  Provisions, other financial liabilities and other long-term liabilities   1,091     (1,829)     (646)     (617)
    10,289     28,310     (43,515)     (40,558)
                       
  Income taxes paid   (6,766)     (13,563)     (9,848)     (19,203)
  Income taxes received   4,736     386     5,569     490
  Interest paid   (6,694)     (6,933)     (8,344)     (10,110)
  Interest received   260     -     572     -
                       
CASH PROVIDED BY OPERATING ACTIVITIES   55,421     60,915     52,495     39,445
                       
FINANCING ACTIVITIES                      
  Bank indebtedness   (7,358)     (14,623)     1,113     (1,782)
  Increase of long-term debt   721     -     18,731     8,121
  Repayments of long-term debt   -     (26,017)     -     -
  Repayments of contingent consideration and put option liabilities   -     -     (168)     -
  Financing costs   (185)     (1)     (192)     (13)
  Share repurchase   (15,889)     (1,588)     (16,949)     (2,557)
  Issuance of share capital   245     220     934     402
  Dividends on common shares   (4,779)     (4,866)     (9,569)     (9,780)
  CASH USED IN FINANCING ACTIVITIES   (27,245)     (46,875)     (6,100)     (5,609)
                       
INVESTING ACTIVITIES                      
  Acquisition of businesses   (1,501)     -     (4,397)    
  Additions to property, plant and equipment   (8,138)     (8,414)     (14,701)     (15,061)
  Disposals of property, plant and equipment   85     73     135     110
  Additions to intangible assets   (4,116)     (5,209)     (10,434)     (9,812)
CASH USED IN INVESTING ACTIVITIES   (13,670)     (13,550)     (29,397)     (24,763)
                       
  Effect of exchange rate changes on cash and cash equivalents   (1,811)     (605)     (1,668)     (243)
                       
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   12,695     (115)     15,330     8,830
                       
Cash and cash equivalents, beginning of period   32,399     24,693     29,764     15,748
                       
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 45,094   $ 24,578   $ 45,094   $ 24,578

 


DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
SECOND QUARTERS ENDED JUNE 30
ALL FIGURES IN THOUSANDS OF US $
                                 
    Total Juvenile   Recreational / Leisure Home Furnishings
    2012 2011 2012 2011 2012 2011 2012 2011
    (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Total revenue   $ 633,711 $ 619,010 $ 254,781 $ 243,965 $ 251,911 $ 249,094 $ 127,019 $ 125,951
Cost of sales     484,563   481,079   185,390   182,229   188,728   188,502   110,445   110,348
Gross profit     149,148   137,931   69,391   61,736   63,183   60,592   16,574   15,603
Selling expenses     56,954   47,512   25,929   20,528   26,462   22,709   4,563   4,275
General and administrative expenses   40,193   40,283   21,551   20,133   14,073   15,803   4,569   4,347
Research and development expenses     6,583   7,740   4,793   6,220   1,042   806   748   714
Operating profit     45,418   42,396 $ 17,118 $ 14,855 $ 21,606 $ 21,274 $ 6,694 $ 6,267
Finance expenses     4,631   5,709                        
Corporate expenses     4,454   4,706                        
Income taxes     5,988   8,988                        
                                     
Net income   $ 30,345 $ 22,993                        
                                   
Earnings per Share                                  
  Basic   $ 0.95 $ 0.70                        
  Diluted   $ 0.95 $ 0.70                        
                                   
Depreciation and amortization included in operating profit $ 12,969 $ 14,372 $ 9,539 $ 10,533 $ 2,243 $ 2,364 $ 1,187 $ 1,475
                                 
       

 
                       
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
SIX MONTHS ENDED JUNE 30
ALL FIGURES IN THOUSANDS OF US $
                                   
    Total Juvenile   Recreational / Leisure Home Furnishings
    2012 2011 2012 2011 2012 2011 2012 2011
    (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Total revenue   $ 1,254,811 $ 1,226,793 $ 524,280 $ 513,585 $ 472,829 $ 449,521 $ 257,702 $ 263,687
Cost of sales     957,126   949,061   380,522   380,229   351,206   337,934   225,398   230,898
Gross Profit     297,685   277,732   143,758   133,356   121,623   111,587   32,304   32,789
Selling expenses     108,105   91,391   51,276   41,255   47,992   41,676   8,837   8,460
General and administrative expenses     82,756   79,422   44,985   41,272   28,326   29,166   9,445   8,984
Research and development expenses     13,570   15,330   9,714   12,302   2,319   1,700   1,537   1,328
Operating profit     93,254   91,589 $ 37,783 $ 38,527 $ 42,986 $ 39,045 $ 12,485 $ 14,017
Finance expenses     9,611   11,587                        
Corporate expenses     13,175   11,909                        
Income taxes     10,960   13,936                        
                                   
Net income   $ 59,508 $ 54,157                        
                                   
Earnings per Share                                  
  Basic   $ 1.87 $ 1.66                        
  Diluted   $ 1.85 $ 1.65                        
                                   
Depreciation and amortization included in operating profit   $ 25,913 $ 27,522 $ 19,234 $ 20,155 $ 4,297 $ 4,556 $ 2,382 $ 2,811

 

 

SOURCE DOREL INDUSTRIES INC.



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