Dorel reports year-end and Q4 results

  • Recreational/Leisure ends difficult 2013 with an optimistic view to 2014
  • Juvenile dealing with tough retail environments in U.S and Europe but performing well in Latin America
  • Home Furnishings continues to benefit from Internet sales channel growth

EXCHANGES
TSX: DII.B, DII.A

MONTREAL, March 4, 2014 /PRNewswire/ - Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the fourth quarter and full year ended December 30, 2013. Revenue for the fourth quarter was US$633.5 million up 1.8% from US$622.6 million a year ago. Net income was US$11.0 million or US$0.34 per diluted share compared to net income of US$29.1 million or US$0.91 per diluted share in 2012. The Company had previously announced a restructuring of its Recreational/Leisure segment, with a total pre-tax charge of US$14 million to US$16 million. Included in this fourth quarter is US$13.5 million pre-tax, of which 65% is non-cash, related to this restructuring with the balance to be incurred in 2014. Excluding the impact of these restructuring charges, adjusted net income for the quarter was US$19.2 million or US$0.60 per diluted share.

Revenue for the full year was US$2.4 billion, down 2.2% from last year's US$2.5 billion. Net income was US$57.7 million or US$1.79 per diluted share, compared to US$108.5 million or US$3.39 per diluted share a year ago. Excluding full year restructuring charges of US$15.4 million pre-tax in the Recreational/Leisure segment, adjusted net income for the year was US$67.1 million or US$2.09 per diluted share.

"2013's performance was disappointing," stated Dorel's President and CEO, Martin Schwartz. "A number of the issues we faced were industry and economy related, while others were the result of less than perfect execution on our part. As announced last month, our Recreational/Leisure segment was negatively affected by top line weakness and a poorer product mix as mass merchant store traffic in general was reduced and the independent bike dealer (IBD) channel was reluctant to increase inventories going into the new year. Matters in our direct control are being addressed and there has been definite progress."

Dorel communicated in January that the Recreational/Leisure segment is restructuring its operations to enhance its competitiveness. "Specifically, we want to significantly reduce development and supply chain lead times with our global partners, improve cost structures and operating margins. This plan will result in higher levels of service for our customers and consumers and will improve profit through 2014 and 2015. We expect to realize annualized cost savings of at least US$6 million once the restructuring is completed in late 2014," added Mr. Schwartz.

"The Juvenile segment faced headwinds last year, particularly in North America and Europe where the marketplace is challenging. Our Latin American expansion continued to be a bright spot, as Dorel Juvenile Chile performed well and Dorel Juvenile Brazil substantially improved over 2012. In Home Furnishings, we are pleased with their continued gains in the Internet sales channel which serves as a good model for the rest of our businesses," concluded Mr. Schwartz.

       
Summary of Financial Highlights
Fourth Quarters Ended December 30
All figures in thousands of US $, except per share amounts
  2013 2012 Change %
Total revenue 633,534 622,604 1.8%
Net income 11,024 29,119 (62.1%)
  Per share - Basic 0.35 0.92 (62.0%)
  Per share - Diluted 0.34 0.91 (62.6%)
Average number of shares outstanding -      
Diluted weighted average 32,245,587 31,963,942  
       
       
Summary of Financial Highlights
Twelve Months Ended December 30
All figures in thousands of US $, except per share amounts
  2013 2012 Change %
Total revenue 2,435,449 2,490,710 (2.2%)
Net income 57,669 108,509 (46.9%)
  Per share - Basic 1.81 3.42 (47.1%)
  Per share - Diluted 1.79 3.39 (47.2%)
Average number of shares outstanding -      
Diluted weighted average 32,190,332 32,039,861  

 

Juvenile Segment

           
Fourth Quarters Ended December 30
  2013 2012  
  $ % of rev. $ % of rev. Change %
Total revenue 255,254   267,359   (4.5%)
Gross profit 73,445 28.8% 74,820 28.0% (1.8%)
Operating profit 18,388 7.2% 18,641 7.0% (1.4%)
           
           
Twelve Months Ended December 30
  2013 2012  
  $ % of rev. $ % of rev. Change %
Total revenue 992,882   1,040,765   (4.6%)
Gross profit 281,623 28.4% 287,300 27.6% (2.0%)
Operating profit 57,158 5.8% 73,070 7.0% (21.8%)

 

Fourth quarter
Excluding the impact of foreign exchange, organic revenue decreased by approximately 4%. While sales were lower than the prior year, versus the third quarter of 2013, they increased by almost 7% with improvements in several markets. Most of the segment's markets saw their currency weaken against the U.S. dollar and this had the effect of dampening earnings. The exception was the Euro which strengthened against its U.S. counterpart in the quarter, helping to offset these other declines. Overall the segment recorded earnings similar to the prior year, despite the lower revenues.

Full year
Revenues declined approximately 6% from the prior year excluding the impact of foreign exchange and acquisitions. As it was the case in the fourth quarter, the reduced sales were in North America and Europe, whereas Latin America sales growth was strong in all regions. Retail continues to grow in importance in Chile and Peru with 18 new locations opened through the year bringing the total number of stores there to 88.

In almost all markets the earnings decline was driven by sales shortfalls and in Canada and Australia by a decrease in the value of local currencies. Strong cost management across the segment kept gross profit stable, offsetting the impact of lower volumes and unfavourable exchange.

Subsequent to year end, Dorel acquired Israeli-based Tiny Love, a global, award-winning baby products and developmental toy company whose 2013 sales were approximately US$45 million and consist of a product line that is complementary to Dorel's and is sold in more than 50 countries worldwide.

Recreational/Leisure Segment

           
Fourth Quarters Ended December 30
  2013 2012  
  $ % of rev. $ % of rev. Change %
Total revenue 245,465   226,640   8.3%
Gross profit 51,861 21.1% 56,519 24.9% (8.2%)
Operating profit (loss) (5,427) (2.2%) 16,456 7.3% (133.0%)
           
           
Twelve Months Ended December 30
  2013 2012  
  $ % of rev. $ % of rev. Change %
Total revenue 918,744   928,422   (1.0%)
Gross profit 211,885 23.1% 233,437 25.1% (9.2%)
Operating profit 21,900 2.4% 71,958 7.8% (69.6%)

 

Fourth quarter
Segment revenues were up US$18.8 million or 8.3% for the quarter. The organic sales increase was approximately 1%, excluding the impact of foreign exchange and the acquisition of Caloi. Sales were affected by the global bike market slowdown, a sluggish start to the holiday season in both the IBD and mass merchant channels as well as an unfavourable product mix. Industry discounting continued throughout the quarter and more 2013 model year bicycles with lower gross profit were sold than had been anticipated. As well, supply for firm customer orders for more than US$10 million of CSG 2014 models did not arrive in time for fourth quarter delivery and were shipped during the current first quarter.

The US$13.5 million pre-tax restructuring charges and costs resulted in a decline of the segment's results to an operating loss of US$5.4 million from an operating profit of US$16.5 million in 2012. Excluding the restructuring charges, the segment posted US$8.1 million in operating profit. All organic businesses experienced a profit decline in the fourth quarter. Caloi, acquired in August 2013, contributed a full quarter of profitability.

Full year
The organic sales decrease after removing the impact of foreign exchange and acquisitions was approximately 2% and was in both the IBD and the mass merchant distribution channels. In both cases the decline was driven by a 2013 global decrease in the bicycle market, predominantly caused by the extremely poor weather during the first half of 2013.

For the year the segment recorded a total of US$15.4 million pre-tax in restructuring charges and costs. Operating profit in all of the segment's divisions, with the exception of Caloi, was down as increased price discounting was prevalent through the year. Unfavorable product and customer mix was also a major contributor to the reduced gross profit.

Home Furnishings Segment

           
Fourth Quarters Ended December 30
  2013 2012  
  $ % of rev. $ % of rev. Change %
Total revenue 132,815   128,605   3.3%
Gross profit 15,451 11.6% 15,064 11.7% 2.6%
Operating profit 5,004 3.8% 7,295 5.7% (31.4%)
           
           
Twelve Months Ended December 30
  2013 2012  
  $ % of rev. $ % of rev. Change %
Total revenue 523,823   521,523   0.4%
Gross profit 66,204 12.6% 62,552 12.0% 5.8%
Operating profit 25,992 5.0% 25,593 4.9% 1.6%


Fourth quarter
The fourth quarter increase was driven by higher sales of imported furniture items, mattresses, futons and folding furniture. Both Dorel Home Products and Cosco Home and Office performed exceedingly well. In addition, Home Furnishings continues its expansion into the Internet sales channel which now represents a significant portion of revenue, accounting for just over 20% of sales. The segment's drop-ship vendor channel continued to gain traction, helping to drive the growth of the Internet channel. Gross profit remained stable due mainly to effective cost controls.

Full year
2013 Home Furnishings revenues were US$523.8 million compared to US$521.5 million in the prior year. Sales decreases of metal folding furniture were offset by the sales growth of imported furniture, principally in the futon, mattress, bunk bed and upholstered item categories. The segment posted another record year of sales through the Internet sales channel which offset reductions in sales to brick and mortar stores. Operating profit was up 1.6% for the year.

Other
In 2013, the Company's effective tax rate was 8.0% as compared to 16.3% in 2012. The main causes of the variations are changes in the jurisdictions in which the Company generated its income and the recognition of a tax benefit pertaining to an adjustment of tax balances following a foreign reorganization.

Statement of Financial Position and Cash Flow
For the year, cash flow provided by operating activities was US$144.3 million compared to US$107.2 million recorded in 2012, an increase of US$37.1 million. This was despite lower year-over-year after-tax earnings and was due to improved working capital management.

Outlook
"Now two months into 2014, we are seeing an encouraging start to the year. In Recreational/Leisure, the restructuring and cost-cutting initiatives underway, coupled with an expected rebound in all markets and a full year of Caloi in Brazil, provide for confidence for the year ahead. Weather is always a variable that we cannot control, but if last spring's record rain and cold in both North America and Europe are not repeated, we are definitely well positioned to return to much higher levels of profitability. Earnings for the first quarter should improve by at least 20% to 25% over last year.

"In Juvenile, we expect most markets to improve their earnings in 2014. This along with the contribution of Tiny Love acquired in January should translate into earnings growth of at least 10% for the year. Note that this expectation excludes the negative impact of the costs of the one-time U.S. legal case that we recorded 2013. As we start the year, currency challenges in Canada, Australia and Latin America should result in the first quarter being slightly below last year, but this does not dampen our enthusiasm for the full year.

"In Home Furnishings, we expect moderate growth in sales and earnings as we continue to capitalize on our Omni-channel distribution through both traditional and on-line retailers," concluded Mr. Schwartz.

Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, March 4, 2014 at 1:00 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 41136240 on your phone. This recording will be available on Tuesday, March 4, 2014 as of 4:00 P.M. until 11:59 P.M. on Tuesday, March 11, 2014.

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

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 global juvenile brands Safety 1st, Quinny, Maxi-Cosi, Bébé Confort and Tiny Love, complemented by regional brands such as Cosco and Infanti. In Recreational/Leisure, brands include Cannondale, Schwinn, GT, Mongoose, Caloi, IronHorse and SUGOI.  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 approximately 6,400 people in facilities located in twenty-five 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.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
ALL FIGURES IN THOUSANDS OF US $
       
  as at   as at
  December 30,
2013
  December 30,
2012
       
  (unaudited)   (unaudited)
      Restated
           
ASSETS          
CURRENT ASSETS          
  Cash and cash equivalents $ 40,074   $ 38,311
  Trade and other receivables   456,465     443,020
  Inventories   555,567     501,652
  Other financial assets   231     287
  Income taxes receivable   11,626     17,273
  Prepaid expenses   26,200     19,813
    1,090,163     1,020,356
           
NON-CURRENT ASSETS          
  Property, plant and equipment   181,299     157,127
  Intangible assets   500,381     423,057
  Goodwill   637,084     578,352
  Other financial assets   620     796
  Deferred tax assets   24,356     22,555
  Other assets   6,060     1,625
    1,349,800     1,183,512
  $ 2,439,963   $ 2,203,868
           
LIABILITIES          
CURRENT LIABILITIES          
  Bank indebtedness $ 72,546   $ 11,476
  Trade and other payables   379,311     337,451
  Contingent consideration and put option liabilities   -     2,151
  Other financial liabilities   3,231     2,085
  Income taxes payable   7,075     2,856
  Long-term debt   344,374     13,520
  Provisions   44,570     33,769
    851,107     403,308
           
NON-CURRENT LIABILITIES          
  Long-term debt   13,183     317,970
  Net pension and post-retirement defined benefit liabilities   31,701     35,091
  Deferred tax liabilities   87,171     87,922
  Provisions   1,993     1,969
  Contingent consideration and put option liabilities   92,570     40,782
  Other financial liabilities   2,727     2,818
  Other long-term liabilities   12,751     5,895
    242,096     492,447
           
EQUITY          
Share capital   190,458     180,856
Contributed surplus   26,994     27,192
Accumulated other comprehensive income   67,824     57,619
Retained earnings   1,061,484     1,042,446
    1,346,760     1,308,113
  $ 2,439,963   $ 2,203,868


DOREL INDUSTRIES INC.
CONSOLIDATED INCOME STATEMENTS
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
                       
  Fourth Quarters Ended   Twelve Months Ended
  December 30,
2013
  December 30,
2012
  December 30,
2013
  December 30,
2012
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
              Restated
                       
Sales $ 625,856   $ 616,996   $ 2,417,291   $ 2,475,762
Licensing and commission income   7,678     5,608     18,158     14,948
TOTAL REVENUE   633,534     622,604     2,435,449     2,490,710
                       
Cost of sales (1)   492,777     476,201     1,875,737     1,907,421
GROSS PROFIT   140,757     146,403     559,712     583,289
                       
                       
Selling expenses   59,143     55,424     231,724     220,299
General and administrative expenses    42,289     43,629     197,152     186,670
Research and development expenses   10,625     7,861     32,905     28,724
Restructuring costs (1)   9,407     -     11,357     -
OPERATING PROFIT   19,293     39,489     86,574     147,596
                       
Finance expenses   8,330     4,511     23,921     18,017
INCOME BEFORE INCOME TAXES   10,963     34,978     62,653     129,579
                       
Income taxes expense   (61)     5,859     4,984     21,070
NET INCOME $ 11,024   $ 29,119   $ 57,669   $ 108,509
                       
EARNINGS PER SHARE                      
  Basic $ 0.35   $ 0.92   $ 1.81   $ 3.42
  Diluted $ 0.34   $ 0.91   $ 1.79   $ 3.39
                       
SHARES OUTSTANDING                      
  Basic - weighted average   31,905,793     31,560,961     31,828,510     31,690,811
  Diluted - weighted average   32,245,587     31,963,942     32,190,332     32,039,861
                       
                       
(1) Restructuring costs charged to:                      
Cost of sales $ 4,075   $ -   $ 4,075   $ -
Expenses   9,407     -     11,357     -
  $ 13,482   $ -   $ 15,432   $ -

DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
                       
  Fourth Quarters Ended   Twelve Months Ended
  December 30,
2013
  December 30,
2012
  December 30,
2013
  December 30,
2012
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
        Restated         Restated
                       
NET INCOME $ 11,024   $ 29,119   $ 57,669   $ 108,509
                       
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   3,624     13,491     8,987     13,631
                       
                       
Net changes in cash flow hedges:                      
Net change in unrealized gains (losses) on derivatives designated as cash flow hedges   (2,023)     (998)     (1,706)     123
Reclassification to income   256     242     1,005     973
Reclassification to the related non-financial asset   744     (2,637)     (314)     (10,654)
Deferred income taxes   188     869     (103)     2,440
    (835)     (2,524)     (1,118)     (7,118)
                       
Items that will not be reclassified to net income:                      
Defined benefit plans:                      
Remeasurements of the net pension and post-retirement benefit liabilities   3,980     (2,868)     3,972     (2,075)
Deferred income taxes   (1,638)     1,138     (1,636)     783
    2,342     (1,730)     2,336     (1,292)
                       
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)   5,131     9,237     10,205     5,221
                       
TOTAL COMPREHENSIVE INCOME $ 16,155   $ 38,356   $ 67,874   $ 113,730


DOREL INDUSTRIES INC.
CONSOLIDATED 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   -   -   -   -   -   108,509   108,509
  Other comprehensive income (loss)   -   -   13,631   (7,118)   (1,292)   -   5,221
  $ - $ - $ 13,631 $ (7,118) $ (1,292) $ 108,509 $ 113,730
                             
  Issued under stock option plan   8,524   -   -   -   -   -   8,524
  Reclassification from contributed surplus due to exercise of stock options   1,770   (1,770)   -   -   -   -   -
  Repurchase and cancellation of shares   (4,220)   -   -   -   -   -   (4,220)
  Premium paid on share repurchase   -   -   -   -   -   (13,592)   (13,592)
  Share-based payments   -   2,389   -   -   -   -   2,389
  Dividends on common shares   -   -   -   -   -   (28,449)   (28,449)
  Dividends on deferred share units   -   128   -   -   -   (128)   -
                             
Balance as at December 30, 2012 $ 180,856 $ 27,192 $ 66,391 $ (1,036) $ (7,736) $ 1,042,446 $ 1,308,113
                             
Total comprehensive income:                            
  Net income   -   -   -   -   -   57,669   57,669
  Other comprehensive income (loss)   -   -   8,987   (1,118)   2,336     10,205
  $ - $ - $ 8,987 $ (1,118) $ 2,336 $ 57,669 $ 67,874
                             
  Issued under stock option plan   7,605   -   -   -   -   -   7,605
  Reclassification from contributed surplus due to exercise of stock options   1,838   (1,838)   -   -   -   -   -
  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   -   1,794   -   -   -   -   1,794
  Dividends on common shares   -     -   -   -   (38,185)   (38,185)
  Dividends on deferred share units   -   193   -   -   -   (193)   -
                             
Balance as at December 30, 2013 $ 190,458 $ 26,994 $ 75,378 $ (2,154) $ (5,400) $ 1,061,484 $ 1,346,760


DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
                       
  Fourth Quarters Ended   Twelve Months Ended
  December  30,
2013
  December 30,
2012
  December 30,
2013
  December 30,
2012
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
                    Restated
CASH PROVIDED BY (USED IN):                      
                       
OPERATING ACTIVITIES                      
Net income $ 11,024   $ 29,119   $ 57,669   $ 108,509
Items not involving cash:                      
  Depreciation and amortization   15,407     14,011     56,269     53,332
  Amortization of deferred financing costs   107     98     412     418
  Accretion expense on contingent consideration and put option liabilities   563     1,196     2,815     3,304
  Change of assumptions on contingent consideration and put option liabilities   (567)     (2,043)     (567)     (3,473)
  Unrealized (gains) losses due to foreign exchange exposure on contingent consideration and put option liabilities   (6,171)     (140)     (4,689)     1,466
  Restructuring activities   12,822     -     13,843     -
  Other finance expenses   7,660     3,217     20,694     14,295
  Income taxes expense   (61)     5,859     4,984     21,070
  Share-based payments   108     567     1,489     2,275
  Defined benefit pension and post-retirement costs   1,020     (1,741)     3,239     674
  Loss on disposal of property, plant and equipment   603     305     446     229
    42,515     50,448     156,604     202,099
Net changes in balances related to operations:                      
  Trade and other receivables   11,812     (3,816)     15,384     (37,250)
  Inventories   (16,577)     29,712     (18,900)     (47,120)
  Other financial assets   164     31     3,060     (947)
  Prepaid expenses   (1,324)     4,690     (5,803)     2,220
  Other assets   (485)     -     (3,095)     -
  Trade and other payables   12,582     (14,250)     14,337     11,769
  Net pension and post-retirement defined benefit liabilities   (964)     (304)     (3,025)     (2,776)
  Provisions, other financial liabilities and other long-term liabilities   3,621     (2,366)     8,565     (2,616)
    8,829     13,697     10,523     (76,720)
                      -
  Income taxes paid   (5,378)     (6,058)     (17,173)     (19,271)
  Income taxes received   973     1,286     12,793     16,541
  Interest paid   (10,229)     (6,257)     (18,936)     (16,660)
  Interest received   82     343     469     1,228
                       
CASH PROVIDED BY OPERATING ACTIVITIES   36,792     53,459     144,280     107,217
                       
FINANCING ACTIVITIES                      
  Bank indebtedness   2,067     711     20,442     (8,670)
  Increase of long-term debt   -     -     18,195     32,883
  Repayments of long-term debt   (8,717)     (29,998)     (14,243)     (16,767)
  Repayments of contingent consideration and put option liabilities           (1,995)     (6,972)
  Financing costs   (23)     (28)     (562)     (220)
  Share repurchase   -     -     (321)     (17,812)
  Issuance of share capital   315     3,134     6,740     7,941
  Dividends on common shares   (9,572)     (9,463)     (38,185)     (28,449)
  CASH USED IN FINANCING ACTIVITIES   (15,930)     (35,644)     (9,929)     (38,066)
                       
INVESTING ACTIVITIES                      
  Acquisition of businesses   -     (152)     (71,924)     (14,819)
  Additions to property, plant and equipment   (12,322)     (6,443)     (41,801)     (27,020)
  Disposals of property, plant and equipment   65     16     410     166
  Additions to intangible assets   (4,679)     (4,898)     (20,489)     (19,491)
CASH USED IN INVESTING ACTIVITIES   (16,936)     (11,477)     (133,804)     (61,164)
                       
  Effect of foreign currency exchange rate changes on cash and cash equivalents   (847)     67     1,216     560
                       
NET INCREASE IN CASH AND CASH EQUIVALENTS   3,079     6,405     1,763     8,547
                       
Cash and cash equivalents, beginning of period   36,995     31,906     38,311     29,764
                       
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 40,074   $ 38,311   $ 40,074   $ 38,311

 

DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOURTH QUARTERS ENDED DECEMBER 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 $ 633,534 $ 622,604 $ 255,254 $ 267,359 $ 245,465 $ 226,640 $ 132,815 $ 128,605
Cost of sales   492,777   476,201   181,809   192,539   193,604   170,121   117,364   113,541
Gross profit   140,757   146,403   73,445   74,820   51,861   56,519   15,451   15,064
Selling expenses   58,522   54,746   28,609   28,709   25,715   21,962   4,198   4,075
General and administrative expenses   44,238   41,404   18,369   21,171   20,565   17,354   5,304   2,879
Research and development expenses   10,625   7,861   8,079   6,299   1,601   747   945   815
Restructuring costs   9,407   -   -   -   9,407   -   -   -
Operating profit (loss)   17,965   42,392 $ 18,388 $ 18,641 $ (5,427) $ 16,456 $ 5,004 $ 7,295
Finance expenses   8,330   4,511                        
Corporate expenses   (1,328)   2,903                        
Income taxes   (61)   5,859                        
Net income $ 11,024 $ 29,119                        
                                 
Earnings per Share                                
  Basic $ 0.35 $ 0.92                        
  Diluted $ 0.34 $ 0.91                        
                                 
                                 
Depreciation and amortization included in operating profit $ 15,363 $ 13,856 $ 10,337 $ 10,210 $ 4,040 $ 2,695 $ 986 $ 951
 
 
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOR THE YEARS ENDED DECEMBER 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 $ 2,435,449 $ 2,490,710 $ 992,882 $ 1,040,765 $ 918,744 $ 928,422 $ 523,823 $ 521,523
Cost of sales   1,875,737   1,907,421   711,259   753,465   706,859   694,985   457,619   458,971
Gross Profit   559,712   583,289   281,623   287,300   211,885   233,437   66,204   62,552
Selling expenses   229,274   217,889   110,721   106,134   102,581   94,523   15,972   17,232
General and administrative expenses   181,126   166,055   90,784   87,087   69,752   62,327   20,590   16,641
Research and development expenses   32,905   28,724   22,960   21,009   6,295   4,629   3,650   3,086
Restructuring costs   11,357   -   -   -   11,357   -   -   -
Operating profit   105,050   170,621 $ 57,158 $ 73,070 $ 21,900 $ 71,958 $ 25,992 $ 25,593
Finance expenses   23,921   18,017                        
Corporate expenses   18,476   23,025                        
Income taxes   4,984   21,070                        
Net income $ 57,669 $ 108,509                        
                                 
Earnings per Share                                
  Basic $ 1.81 $ 3.42                        
  Diluted $ 1.79 $ 3.39                        
                                 
                                 
Depreciation and amortization included in operating profit $ 56,096 $ 53,054 $ 40,026 $ 39,151 $ 11,857 $ 9,429 $ 4,213 $ 4,474

 

SOURCE Dorel Industries Inc.



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