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Last updated on April 17, 2014 at 1:21 EDT

Dorel announces improved third quarter results

November 8, 2012

Juvenile leads the way

        --  Juvenile segment operating profit improves significantly
        --  Recreational/Leisure continues to build on its positive trend
        --  EPS of US$0.63 per diluted share compared to US$0.46 excluding
            tax benefit in 2011

MONTREAL, Nov. 8, 2012 /PRNewswire/ – Dorel Industries Inc. (TSX: DII.B,
DII.A) today announced results for the third quarter and nine months
ended September 30, 2012.  Revenue for the quarter increased by US$37.5
million, or 6.5%, to US$613.3 million from US$575.8 million a year ago.
Organic revenue growth for the quarter was approximately 5%.  Pre-tax
income increased 69.5% to US$24.4 million compared to US$14.4 million
last year.  Net income for the period was US$20.0 million or US$0.63
per diluted share compared to US$23.1 million or US$0.71 per diluted
share in 2011. The third quarter of 2011 included a one-time US$8.3
million income tax recovery and excluding this benefit, earnings per
diluted share were US$0.63 in the quarter compared to US$0.46 a year
ago.

Total revenue for the nine months was up 3.6% to US$1.9 billion from
US$1.8 billion in the prior year. Year-to-date pre-tax income has
increased to US$94.8 million from US$82.5 million, a 15% improvement. 
Net income was US$79.5 million or US$2.48 per diluted share, compared
to US$77.2 million or US$2.36 per diluted share for the year-to-date in
2011.

“Our core businesses are moving in the right direction despite a
difficult economy,” said Dorel President and CEO Martin Schwartz. 
“Operating profits increased significantly in our Juvenile segment
thanks largely to tangible progress at Dorel Juvenile Group (DJG) USA
and a solid performance at Dorel Europe, despite a year-over-year drop
in the value of the Euro.  Dorel Chile once again was an important
contributor to the quarter, underlining the value of the partnership we
established there almost a year ago. Recreational/Leisure did well,
particularly in the mass merchant channel.  Home Furnishings sales were
down slightly due to a reduction in ready-to-assemble furniture sales,
partly offset by increases in futons and upholstered furniture. The
segment’s Internet 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

                                                 2012       2011 Change %

    Total revenue                             613,295    575,828     6.5%

    Net income                                 19,986     23,074  (13.4%)

      Per share - basic                          0.64       0.71   (9.9%)

      Per share - diluted                        0.63       0.71  (11.3%)

    Average number of shares outstanding -
    diluted weighted average               31,878,391 32,613,976         

                                Summary of Financial Highlights

                                 Nine Months Ended September 30

            All figures in thousands of US $, except per share amounts

                                                 2012       2011 Change %

    Total revenue                           1,868,106  1,802,621     3.6%

    Net income                                 79,494     77,231     2.9%

      Per share - basic                          2.51       2.37     5.9%

      Per share - diluted                        2.48       2.36     5.1%

    Average number of shares outstanding -
    diluted weighted average               32,041,423 32,779,635         

 

Juvenile Segment


                         Third Quarters Ended September 30

                              2012              2011           

                         $   % of rev.     $   % of rev. Change %

    Total revenue    249,126           227,080               9.7%

    Gross profit      69,080     27.7%  50,089     22.1%    37.9%

    Operating profit  16,889      6.8%   4,934      2.2%   242.3%

                           Nine Months Ended September 30

                              2012              2011           

                         $   % of rev.     $   % of rev. Change %

    Total revenue    773,406           740,665               4.4%

    Gross profit     212,838     27.5% 183,445     24.8%    16.0%

    Operating profit  54,672      7.1%  43,461      5.9%    25.8%

 

After adjusting for the impact of varying exchange rates and new
businesses acquired, Juvenile segment organic revenue increased
approximately 4% in the third quarter and is flat for the year-to-date.
This was the second consecutive quarter of organic sales growth for the
segment after a decline in the first quarter.  Operating profit was
US$16.9 million, an increase of US$12.0 million from US$4.9 million in
2011. Year-to-date, operating profit was US$54.7 million, up from last
year’s US$43.5 million.

A positive contributor to the operating profit was the impact of higher
gross margins earned by Dorel Chile which operates retail stores that
generate a higher gross profit. The segment’s two main operating units,
DJG and Dorel Europe, both posted improved gross margins due mainly to
more stable costs and a better sales mix.  Operating expenses remained
in line with the prior year with Dorel Chile accounting for the
majority of the dollar increase.

Toward the end of the quarter, Dorel announced the acquisition of a 70%
interest in two juvenile product businesses in Colombia and Panama,
further increasing its presence in Latin America.  The acquisition
expands Dorel’s ownership of the popular Infanti brand, to which the
Company already owns the rights in Chile, Bolivia, Peru and Argentina.

Recreational/Leisure Segment


                         Third Quarters Ended September 30

                              2012              2011             

                         $   % of rev.     $   % of rev. Change %

    Total revenue    228,953           209,823               9.1%

    Gross profit      55,295     24.2%  47,055     22.4%    17.5%

    Operating profit  12,516      5.5%  10,008      4.8%    25.1%

                           Nine Months Ended September 30

                              2012              2011             

                         $   % of rev.     $   % of rev. Change %

    Total revenue    701,782           659,344               6.4%

    Gross profit     176,918     25.2% 158,642     24.1%    11.5%

    Operating profit  55,502      7.9%  49,053      7.4%    13.1%

 

The third quarter’s sales increase of 9.1% was driven primarily by
shipments to the mass market channel.  For the year-to-date, both the
IBD and mass market channels have increased sales. Excluding the impact
of foreign exchange variations on the segment’s non-US based
businesses, the segment’s organic revenue increase was approximately
11% for the quarter and 8% year-to-date.

Operating profit for the segment improved US$2.5 million, or 25%, to
US$12.5 million. For the nine months, operating profit was up US$6.4
million or 13.1% to US$55.5. Contributing to the improvement in
operating profit was the on-going turnaround at SUGOI. Last year the
apparel division lost US$2.2 million during the third quarter, whereas
the changes implemented thus far this year resulted in a breakeven
situation during the most recent quarter.

The segment’s divisions were front and centre at the year’s two most
important bike shows, held in Europe and in the U.S.  Several new
Cannondale models were launched for 2013 and Cannondale was the
recipient of three Eurobike 2012 awards.  Cycling Sports Group (CSG)
used the U.S. show to announce the launch of the new GURU Experience,
an advanced personalized bike fitting and consultative retail system
that will help consumers reach their peak performance and will further
position CSG as the go-to bike company.

Home Furnishings Segment


                         Third Quarters Ended September 30

                              2012              2011             

                         $   % of rev.     $   % of rev. Change %

    Total revenue    135,216           138,925             (2.7%)

    Gross profit      15,184     11.2%  15,709     11.3%   (3.3%)

    Operating profit   5,813      4.3%   6,748      4.9%  (13.9%)

                           Nine Months Ended September 30

                              2012              2011             

                         $   % of rev.     $   % of rev. Change %

    Total revenue    392,918           402,612             (2.4%)

    Gross profit      47,488     12.1%  48,498     12.0%   (2.1%)

    Operating profit  18,298      4.7%  20,765      5.2%  (11.9%)

 

Home Furnishings third quarter revenues decreased by 2.7% to US$135.2
million, while operating profit dipped 13.9% to US$5.8 million. For the
first nine months, revenues decreased 2.4% to US$392.9 million.
Operating profit for the first nine months of the year was US$18.3
million versus US$20.8 million in 2011, a decrease of 11.9%, as a
result of decreased revenues and a less profitable sales mix.

Gross margins for the quarter were 11.2%, consistent with the 11.3%
recorded a year ago. Similarly, for the first nine months, gross
margins were 12.1%, close to the 12.0% in 2011. While benefitting from
a stable cost environment, offsetting this was a less profitable sales
mix. Internet sales for the segment continued their upward progression,
maintaining the positive trend established over the past several
quarters.

Other
Cash flow from operating activities was US$53.8 million compared to
US$105.8 million last year. The major reason was an increase in
inventory from US$442.4 million at year end to US$528.7 million as at
September 30, 2012. Several factors contributed to this situation
including higher inventory in Recreational / Leisure to ensure
fulfillment of fourth quarter holiday orders, the earlier transition to
the new model year bikes than in 2011 as well as the addition of the
new Colombia and Panama businesses.  Inventories will decrease
significantly in the fourth quarter but will be above last year’s
closing figure.

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 6, 2012 to
shareholders of record as at the close of business on November 22,
2012.

Outlook
“The total year-to-date operating profit of our three segments has
increased by US$15.2 million or 13.4% versus the prior year. We expect
this positive trend to continue through the rest of 2012, led by
revenue and earnings growth in Juvenile and Recreational / Leisure. 
Partially offsetting these gains will be lower operating profit in Home
Furnishings as that segment continues to face a challenging retail
environment.  While the other two segments face a similar environment,
they are well positioned in their various markets to meet these
challenges and it is anticipated these segments will better last year’s
results,” commented Mr. Schwartz.

“We are expecting input costs in the fourth quarter to remain stable and
assuming no significant fluctuation in exchange rates, we are confident
that the fourth quarter operating profit of our three segments will
exceed last year.  As a reminder, in last year’s fourth quarter we
recorded a non-operational gain of US$11.1 million which reduced our
corporate expenses and this will not re-occur this year,” concluded Mr.
Schwartz.

Conference Call
Dorel Industries Inc. will hold a conference call to discuss these
results today, November 8, 2012 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
37306010# on your phone. This recording will be available on Thursday,
November 8, 2012 as of 4:00 P.M. until 11:59 P.M. on Thursday, November
15, 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 50(th) 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 1(st), 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-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,   December 30,
                                               2012            2011

                                             (unaudited)    (unaudited)

    ASSETS                                                             

    CURRENT ASSETS                                                     

      Cash and cash equivalents            $      31,906   $     29,764

      Trade and other receivables                437,495        403,664

      Inventories                                528,745        442,409

      Other financial assets                       3,297          9,867

      Income taxes receivable                     11,981         17,811

      Prepaid expenses                            24,096         21,858

                                               1,037,520        925,373

    NON-CURRENT ASSETS                                                 

      Property, plant and equipment              155,848        158,363

      Intangible assets                          417,470        411,171

      Goodwill                                   575,091        568,849

      Other financial assets                         898             - 

      Deferred tax assets                         25,972         31,096

      Other assets                                 1,632          1,717

                                               1,176,911      1,171,196

                                           $   2,214,431   $  2,096,569

    LIABILITIES                                                        

    CURRENT LIABILITIES                                                

      Bank indebtedness                    $      10,800   $     20,130

      Trade and other payables                   350,373        323,552

      Other financial liabilities                  5,279         13,065

      Income taxes payable                         1,502          2,315

      Long-term debt                                 468         17,279

      Provisions                                  36,016         37,096

                                                 404,438        413,437

    NON-CURRENT LIABILITIES                                            

      Long-term debt                             360,844        298,160

      Pension and post-retirement benefit         34,871         35,258
      obligations                                         

      Deferred tax liabilities                    87,455         79,702

      Provisions                                   1,896          1,876

      Other financial liabilites                  44,187         33,141

      Other long-term liabilities                  5,904          5,340

                                                 535,157        453,477

    EQUITY                                                             

    SHARE CAPITAL                                176,790        174,782

    CONTRIBUTED SURPLUS                           27,247         26,445

    ACCUMULATED OTHER COMPREHENSIVE INCOME        54,389         58,842

    RETAINED EARNINGS                          1,016,410        969,586

                                               1,274,836      1,229,655

                                           $   2,214,431   $  2,096,569


                                          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      September      September      September
                        30,            30,            30,            30,
                        2012           2011           2012           2011

                   (unaudited)    (unaudited)    (unaudited)    (unaudited)

    Sales          $    610,717   $    574,092   $  1,858,766   $  1,794,219

    Licensing and
    commission
    income                2,578          1,736          9,340          8,402

    TOTAL REVENUE       613,295        575,828      1,868,106      1,802,621

    Cost of sales       473,736        462,975      1,430,862      1,412,036

    GROSS PROFIT        139,559        112,853        437,244        390,585

    Selling
    expenses             55,577         48,241        164,875        140,703

    General and
    administrative
    expenses             48,418         38,521        143,156        128,781

    Research and
    development
    expenses              7,293          7,048         20,863         22,378

    OPERATING
    PROFIT               28,271         19,043        108,350         98,723

    Finance
    expenses              3,895          4,659         13,506         16,246

    INCOME BEFORE
    INCOME TAXES         24,376         14,384         94,844         82,477

    Income taxes
    expense               4,390        (8,690)         15,350          5,246

    NET INCOME     $     19,986   $     23,074   $     79,494   $     77,231

    EARNINGS PER
    SHARE                                                                   

      Basic        $       0.64   $       0.71   $       2.51   $       2.37

      Diluted      $       0.63   $       0.71   $       2.48   $       2.36

    SHARES
    OUTSTANDING                                                             

      Basic -
      weighted
      average        31,387,163     32,506,383     31,733,936     32,596,280

      Diluted -
      weighted
      average        31,878,391     32,613,976     32,041,423     32,779,635


                                        DOREL INDUSTRIES INC.

       CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

                                ALL FIGURES IN THOUSANDS OF US $

                        Third Quarters Ended           Nine Months Ended

                     September      September    September      September
                         30,           30,           30,           30,
                        2012          2011          2012          2011

                     (unaudited)   (unaudited)   (unaudited)   (unaudited)

    NET INCOME       $    19,986   $    23,074   $    79,494   $    77,231

    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         10,102      (39,256)           141         (557)

    Net changes in
    cash flow
    hedges:                                                               

    Net change in
    unrealized gains
    (losses) on
    derivatives
    designated as
    cash flow hedges         217         8,390         1,121           397

    Reclassification
    to income                236           251           731         1,522

    Reclassification
    to the related
    non-financial
    asset                (2,951)         1,191       (8,017)         4,972

    Deferred income
    taxes                    651       (2,646)         1,571       (1,735)

                         (1,847)         7,186       (4,594)         5,156

    Defined benefit
    plans:                                                                

    Actuarial gains
    (losses) on
    defined benefit
    plans                   (14)           116           (6)           (6)

    Deferred income
    taxes                      4          (30)             1          (84)

                            (10)            86           (5)          (90)

    TOTAL OTHER
    COMPREHENSIVE
    INCOME (LOSS)          8,245      (31,984)       (4,458)         4,509

    TOTAL
    COMPREHENSIVE
    INCOME (LOSS)    $    28,231   $   (8,910)   $    75,036   $    81,740


                                                                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              

                                             Cumulative                   Defined      Other
                         Share   Contributed Translation  Cash Flow       Benefit    Retained      Total
                        Capital    Surplus     Account     Hedges          Plans     Earnings     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                 -           -           -           -             -      77,231      77,231

    Total other
    comprehensive
    income (loss)              -           -       (557)       5,156          (90)           -       4,509

    Issued under
    stock option
    plan                     429           -           -           -             -           -         429

    Reclassification
    from contributed
    surplus due to
    exercise of
    stock options             89        (89)           -           -             -           -           -

    Repurchase and
    cancellation of
    shares               (3,240)           -           -           -             -           -     (3,240)

    Premium paid on
    share repurchase           -           -           -           -             -     (9,406)     (9,406)

    Share-based
    payments                   -       2,160           -           -             -           -       2,160

    Dividends on
    common shares              -           -           -           -             -    (14,677)    (14,677)

    Dividends on
    deferred share
    units                      -          53           -           -             -        (53)           -

    Balance as at
    September 30,
    2011             $   176,094 $    25,900 $    67,413 $     4,124   $   (2,402) $   957,728 $ 1,228,857

    Balance as at
    December 30,
    2011             $   174,782 $    26,445 $    52,760 $     6,082   $   (7,236) $   976,822 $ 1,229,655

    Net income                 -           -           -           -             -      79,494      79,494

    Total other
    comprehensive
    income (loss)              -           -         141     (4,594)           (5)           -     (4,458)

    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 $    52,901 $     1,488   $   (7,241) $ 1,023,651 $ 1,274,836


                                         DOREL INDUSTRIES INC.

                CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

                                 ALL FIGURES IN THOUSANDS OF US $

                         Third Quarters Ended           Nine Months Ended

                       September     September    September      September
                          30,           30,           30,           30,
                         2012          2011          2012          2011

                      (unaudited)   (unaudited)   (unaudited)   (unaudited)

    CASH PROVIDED BY
    (USED IN):                                                             

    OPERATING
    ACTIVITIES                                                             

    Net income        $    19,986   $    23,074   $    79,494   $    77,231

    Items not
    involving cash:                                                        

      Depreciation
      and
      amortization         13,327        14,093        39,321        41,705

      Amortization of
      deferred
      financing costs          89         (270)           320           376

      Accretion
      expense on
      contingent
      consideration
      and put option
      liabilities             649           523         2,108         1,610

      Change of
      assumptions on
      contingent
      consideration
      and put option
      liabilities           (457)         (113)       (1,430)       (1,086)

      Unrealized
      (gains)/losses
      due to foreign
      exchange
      exposure on
      contingent
      consideration
      and put option
      liabilities           1,249         (546)         1,606       (1,067)

      Other finance
      expenses              3,157         4,406        11,078        14,260

      Income taxes
      expense               4,390       (8,690)        15,350         5,246

      Share-based
      payments                480           546         1,708         1,941

      Pension and
      post-retirement
      defined benefit
      plans                   716           824         2,172         2,516

      Loss (gain) on
      disposal of
      property, plant
      and equipment             4            33          (76)          (26)

                           43,590        33,880       151,651       142,706

    Net change in
    balances related
    to operations:                                                         

      Trade and other
      receivables          17,083        36,061      (33,434)      (27,027)

      Inventories        (19,548)        45,692      (76,832)        63,014

      Other financial
      assets                (146)             -         (978)             -

      Prepaid
      expenses              1,607       (2,610)       (2,470)       (4,146)

      Trade and other
      payables           (45,577)      (40,034)        26,019      (30,574)

      Pension and
      post-retirement
      benefit
      obligations           (717)         (411)       (2,472)       (2,510)

      Provisions,
      other financial
      liabilities and
      other long-term
      liabilities             396          (74)         (250)         (691)

                         (46,902)        38,624      (90,417)       (1,934)

      Income taxes
      paid                (3,365)       (4,489)      (13,213)      (23,692)

      Income taxes
      received              9,686           579        15,255         1,069

      Interest paid       (2,059)       (2,191)      (10,403)      (12,301)

      Interest
      received                313             -           885             -

    CASH PROVIDED BY
    OPERATING
    ACTIVITIES              1,263        66,403        53,758       105,848

    FINANCING
    ACTIVITIES                                                             

      Bank
      indebtedness       (10,494)       (6,500)       (9,381)       (8,282)

      Increase of
      long-term debt       43,883            -         62,614             -

      Repayments of
      long-term debt     (16,500)      (29,244)      (16,500)      (21,123)

      Repayments of
      contingent
      consideration
      and put option
      liabilities         (6,804)       (2,431)       (6,972)       (2,431)

      Financing costs           -            47         (192)            34

      Share
      repurchase            (863)      (10,089)      (17,812)      (12,646)

      Issuance of
      share capital         3,873            27         4,807           429

      Dividends on
      common shares       (9,417)       (4,897)      (18,986)      (14,677)

    CASH PROVIDED BY
    (USED IN)
    FINANCING
    ACTIVITIES              3,678      (53,087)       (2,422)      (58,696)

    INVESTING
    ACTIVITIES                                                             

      Acquisition of
      businesses         (10,270)            -       (14,667)             -

      Additions to
      property, plant
      and equipment       (5,876)       (8,093)      (20,577)      (23,154)

      Disposals of
      property, plant
      and equipment            15            32           150           142

      Additions to
      intangible
      assets              (4,159)       (5,043)      (14,593)      (14,855)

    CASH USED IN
    INVESTING
    ACTIVITIES           (20,290)      (13,104)      (49,687)      (37,867)

      Effect of
      exchange rate
      changes on cash
      and cash
      equivalents           2,161           988           493           745

    NET INCREASE
    (DECREASE) IN
    CASH AND CASH
    EQUIVALENTS          (13,188)         1,200         2,142        10,030

    Cash and cash
    equivalents,
    beginning of
    period                 45,094        24,578        29,764        15,748

    CASH AND CASH
    EQUIVALENTS, END
    OF PERIOD         $    31,906   $    25,778   $    31,906   $    25,778

 


                                                                      DOREL INDUSTRIES INC.

                                                                INDUSTRY SEGMENTED INFORMATION

                                                             THIRD QUARTERS ENDED SEPTEMBER 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  $   613,295 $   575,828 $   249,126 $   227,080 $   228,953 $   209,823 $   135,216 $   138,925

    Cost of sales      473,736     462,975     180,046     176,991     173,658     162,768     120,032     123,216

    Gross profit       139,559     112,853      69,080      50,089      55,295      47,055      15,184      15,709

    Selling
    expenses            55,038      47,742      26,149      19,394      24,569      23,967       4,320       4,381

    General and
    administrative
    expenses            42,010      36,373      21,046      20,188      16,647      12,203       4,317       3,982

    Research and
    development
    expenses             7,293       7,048       4,996       5,573       1,563         877         734         598

    Operating
    profit              35,218      21,690 $    16,889 $     4,934 $    12,516 $    10,008 $     5,813 $     6,748

    Finance
    expenses             3,895       4,659                                                                        

    Corporate
    expenses             6,947       2,647                                                                        

    Income taxes         4,390     (8,690)                                                                        

    Net income     $    19,986 $    23,074                                                                        

    Earnings per
    Share                                                                                                         

      Basic        $      0.64 $      0.71                                                                        

      Diluted      $      0.63 $      0.71                                                                        

    Depreciation
    and
    amortization
    included in
    operating
    profit         $    13,285 $    14,049 $     9,707 $    10,300 $     2,437 $     2,318 $     1,141 $     1,431

                                                                      DOREL INDUSTRIES INC.

                                                                INDUSTRY SEGMENTED INFORMATION

                                                                NINE MONTHS ENDED SEPTEMBER 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  $ 1,868,106 $ 1,802,621 $   773,406 $   740,665 $   701,782 $   659,344 $   392,918 $   402,612

    Cost of sales    1,430,862   1,412,036     560,568     557,220     524,864     500,702     345,430     354,114

    Gross Profit       437,244     390,585     212,838     183,445     176,918     158,642      47,488      48,498

    Selling
    expenses           163,143     139,133      77,425      60,649      72,561      65,643      13,157      12,841

    General and
    administrative
    expenses           124,766     115,795      66,031      61,460      44,973      41,369      13,762      12,966

    Research and
    development
    expenses            20,863      22,378      14,710      17,875       3,882       2,577       2,271       1,926

    Operating
    profit             128,472     113,279 $    54,672 $    43,461 $    55,502 $    49,053 $    18,298 $    20,765

    Finance
    expenses            13,506      16,246                                                                        

    Corporate
    expenses            20,122      14,556                                                                        

    Income taxes        15,350       5,246                                                                        

    Net income     $    79,494 $    77,231                                                                        

    Earnings per
    Share                                                                                                         

      Basic        $      2.51 $      2.37                                                                        

      Diluted      $      2.48 $      2.36                                                                        

    Depreciation
    and
    amortization
    included in
    operating
    profit         $    39,198 $    41,571 $    28,941 $    30,455 $     6,734 $     6,874 $     3,523 $     4,242

 

 

 

 

SOURCE DOREL INDUSTRIES INC.


Source: PR Newswire