Dorel announces improved third quarter results
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.
