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Last updated on April 23, 2014 at 17:36 EDT

Dorel reports substantial gains for 2012 fourth quarter and full year

March 6, 2013

Fourth quarter highlights:

        --  Juvenile segment operating profit increases 79% year-over-year
        --  Bicycle business operating profit grows 42%
        --  Net income, excluding non-cash, non-taxable gains, increases
            66%


EXCHANGES
TSX: DII.B, DII.A

MONTREAL, March 6, 2013 /PRNewswire/ – Dorel Industries Inc. (TSX: DII.B
DII.A) today announced results for the fourth quarter and full year
ended December 30, 2012. Revenue for the fourth quarter increased 10.9%
to US$622.6 million from US$561.6 million a year ago. Net income was up
6.4% to US$29.1 million or US$0.91 per diluted share from US$27.4
million, or US$0.85 per diluted share in 2011.

Revenue for the full year reached US$2.5 billion, up 5.3% from last
year’s US$2.4 billion. Net income was US$108.6 million or US$3.39 per
diluted share, up from US$104.6 million or US$3.21 per diluted share a
year ago, increases of 3.8% and 5.6% respectively.

Net income in both 2012 and 2011 benefitted from a reduction in
corporate general and administrative expenses on non-cash gains related
to contingent consideration and put option liabilities in connection
with prior business acquisitions. In the fourth quarter of 2012 this
gain was US$2.0 million while in 2011 it amounted to US$11.1 million.
For the full year, these amounts were US$3.5 million in 2012 and
US$12.2 million in 2011.  Excluding these non-cash, non-taxable gains,
net income in the fourth quarter of 2012 was US$27.1 million versus
US$16.3 million in 2011, an increase of 66%. For the full year,
excluding the gain amount, net income was US$105.1 million in 2012
versus US$92.4 million in 2011, a 13.7% improvement.

“We made substantial progress through 2012, particularly in light of the
lingering tough economy,” said Dorel President and CEO, Martin
Schwartz. “The Juvenile segment’s operating profits increased due to
improved earnings at Dorel Juvenile Group (DJG) USA and at Dorel
Europe, even in the face of a fragile financial environment abroad.
Dorel’s Latin American operations were significant contributors to the
segment’s improved operating profit and our investments there continue
to pay handsome dividends. Dorel Chile had an outstanding fourth
quarter, buoyed by strong retail sales at our 70 stores. Brazil is
recovering from a difficult year in 2011 and Dorel Colombia, with its
first quarter as part of the Company, also delivered sound results.

“Driven by double digit growth in sales of Dorel’s premium Cannondale
brand, the Recreational/Leisure segment’s full-year revenue surpassed
US$900 million. Fourth quarter revenue increased markedly due to the
ability to ship more product and strong sales of electric ride-on
toys. We have proven we can do a good job in the bike business and the
growth trend we have established during the last couple of years
clearly underlines this. Home Furnishings, as expected, experienced
slightly lower margins, reducing operating profits in that segment,”
concluded Mr. Schwartz.


                               Summary of Financial Highlights  

                             Fourth Quarters Ended December 30  

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

                                                 2012       2011 Change %

    Total revenue                             622,604    561,608    10.9%

    Net income                                 29,119     27,362     6.4%

      Per share - Basic                          0.92       0.85     8.2%

      Per share - Diluted                        0.91       0.85     7.1%

    Average number of shares outstanding -
    diluted weighted average               31,963,942 32,130,001         

                                Summary of Financial Highlights

                                For the years Ended December 30

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

                                                 2012       2011 Change %

    Total revenue                           2,490,710  2,364,229     5.3%

    Net income                                108,613    104,593     3.8%

      Per share - Basic                          3.43       3.22     6.5%

      Per share - Diluted                        3.39       3.21     5.6%

    Average number of shares outstanding -
    diluted weighted average               32,039,861 32,621,583         

 

Juvenile Segment


                          Fourth Quarters Ended December 30

                                2012              2011             

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

    Total revenue      267,359           239,532              11.6%

    Gross profit        74,820     28.0%  63,673     26.6%    17.5%

    Operating profit    18,641      7.0%  10,390      4.3%    79.4%

                            For the years Ended December 30

                                2012              2011             

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

    Total revenue    1,040,765           980,197               6.2%

    Gross profit       287,658     27.6% 247,118     25.2%    16.4%

    Operating profit    73,313      7.0%  53,851      5.5%    36.1%

Fourth quarter
The fourth quarter revenue increase of 11.6% includes two additional
months of sales at Dorel Chile, acquired in December 2011 and the
results for Colombia / Panama, acquired at the beginning of the fourth
quarter of 2012. Excluding these additions and the impact of foreign
exchange, the organic revenue increase was approximately 2%. The
operating profit improvement of 79.4% versus 2011 was driven
principally by the contribution of the segment’s Latin American units.
This includes an improved performance at Dorel Brazil, as well as a
strong quarter for Dorel Chile.

Full year
Full year revenues increased from 2011 by US$60.6 million or 6.2%. This
was the result of acquisitions and the impact of foreign exchange.
Year-over-year operating profit increased significantly with a 36%
improvement. In addition, the segment’s U.S. and European businesses
both posted improved earnings, benefitting from a more stable cost
environment in 2012.

Recreational / Leisure Segment


                         Fourth Quarters Ended December 30

                              2012              2011             

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

    Total revenue    226,640           202,410              12.0%

    Gross profit      56,519     24.9%  46,410     22.9%    21.8%

    Operating profit  16,456      7.3%  11,604      5.7%    41.8%

                          For the years Ended December 30

                              2012              2011             

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

    Total revenue    928,422           861,754               7.7%

    Gross profit     233,437     25.1% 205,052     23.8%    13.8%

    Operating profit  71,958      7.8%  60,657      7.0%    18.6%

 

Fourth quarter
Fourth quarter revenues increased approximately 12%, with all of the
growth being organic. The Independent Bicycle Dealer (IBD) channel
drove the increase with strong pre-season sales of model year 2013
bicycles. Improved mix and cost containment were the principal reasons
for the increase in operating profit of 41.8%. The continuing
turnaround at SUGOI resulted in a modestly profitable quarter, a sharp
reversal from the loss during the fourth quarter a year ago.

Full year
Revenues rose 7.7% to US$928.4 million compared to US$861.8 million a
year ago. After removing the impact of foreign exchange, organic sales
increased approximately 10%, marking the second consecutive year of 10%
organic growth. The gain was in both the IBD and the mass merchant
distribution channels, driven by new products and strong marketing of
the segment’s brands. The operating profit increase of 18.6% was driven
by a focus on increased sales and gross margin expansion. To support
this growth, the segment continues to invest in marketing and
infrastructure to support the objectives of building this segment into
the premier bicycle company in the market.

The growth in the IBD channel was in the majority of its markets. In the
mass channel, bicycle sales were complemented by strong growth in the
electric ride-on category.

Home Furnishings Segment


                         Fourth Quarters Ended December 30

                              2012              2011             

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

    Total revenue    128,605           119,666               7.5%

    Gross profit      15,064     11.7%  17,091     14.3%   -11.9%

    Operating profit   7,295      5.7%   8,486      7.1%   -14.0%

                          For the years Ended December 30

                              2012              2011             

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

    Total revenue    521,523           522,278              -0.1%

    Gross profit      62,552     12.0%  65,589     12.6%    -4.6%

    Operating profit  25,593      4.9%  29,251      5.6%   -12.5%

Fourth quarter
Fourth quarter revenues increased by 7.5% due to higher sales of
imported furniture items, mattresses and futons. The sales growth
continues to be driven by growing sales to the Internet
channel. Operating profit declined as the result of higher overhead
costs and a less profitable sales mix at certain of the segment’s
divisions.

Full year
Revenues for the year were basically flat at US$521.5 million. As 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. Operating profit
decreased by 12.5% as gross margins declined. While the segment did
benefit from more stable input costs in 2012 versus 2011, this was
offset by a less profitable mix of sales. The Canadian dollar remained
strong against its U.S. counterpart which pressures margins as two of
the segment’s plants are based in Canada and ship the majority of their
products to the U.S.

Other
In 2012 the Company’s effective tax rate was 16.3% as compared to 8.1%
in 2011. An income tax recovery of US$6.8 million was recorded in 2011
due to the realization of a tax benefit in the Netherlands where the
Juvenile segment’s product research and development (R&D) program
qualified for the Dutch government’s “Innovation Box” program.
Excluding this benefit the tax rate in 2011 would have been 14.1%, more
in line with the 2012 results.

Statement of Financial Position and Cash flow
Compared to December 30, 2011 levels, the most significant variation on
the Company’s Statement of Financial Position was the increase in
inventory from US$442.4 million at year end 2011 to US$501.7 million as
at December 30, 2012. This increase was anticipated as last year a lack
of inventory at certain divisions had a negative impact on customer
service levels. In addition, the Dorel Colombia acquisition and the
growth of sales through the Internet distribution channel have
necessitated a wider number of models to be held in sufficient
quantities to adequately service customers, thus requiring a higher
overall inventory level. The Company believes there is some opportunity
to decrease inventory levels slightly, but the decrease will not be
significant. Principally for this reason, cash flow provided by
operating activities for the year was US$107.2 million compared to
US$162.5 million recorded in 2011, a decrease of US$55.3 million.

Outlook
“For the 2013 year we expect to achieve overall growth in both revenues
and net income through both market expansion and by continuing to
invest in new products and brand support. Specifically in Recreational
/ Leisure we believe the success of our new product development and
marketing in 2012 will continue into 2013. In Juvenile, the majority of
our 2013 improvement will come from Latin America. We have made
strategic investments over the past few years and expect growth there
to outpace our traditional markets. Our products and brands have
considerable untapped potential in markets such as Latin America and
Asia and we feel these geographies will play a large role in our growth
strategy. We will also continue to invest in our North American and
European businesses to ensure we remain market leaders. In Home
Furnishings, growth prospects are more modest as the segment is based
only in North America and brand differentiation is not a competitive
advantage; however we are focused on and further capitalizing upon the
growth in the Internet retail channel,” commented Mr. Schwartz.

“The Company is experiencing a slower start in 2013 than in 2012. We had
a strong first quarter of 2012 and the timing of deliveries thus far in
2013 has had the impact of lowering our expectations for the first
quarter.  As such, we anticipate being below prior year levels.
However, as some of this is a timing issue, we remain confident of an
improved 2013 overall. Further we remain open to acquisitions to
complement our current businesses”, concluded Mr. Schwartz.

Conference Call
Dorel Industries Inc. will hold a conference call to discuss these
results today, March 6, 2013 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
87464761 on your phone. This recording will be available on Wednesday,
March 6, 2013 as of 4:00 P.M. until 11:59 P.M. on Wednesday, March 13,
2013.

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
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$2.5 billion and employs 5,400 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.

                    CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

                              ALL FIGURES IN THOUSANDS OF US $

                                              as at          as at
                                           December 30,   December 30,
                                               2012           2011

                                           (unaudited)    (unaudited)

    ASSETS                                                            

    CURRENT ASSETS                                                    

      Cash and cash equivalents            $     38,311   $     29,764

      Trade and other receivables               443,020        403,664

      Inventories                               501,652        442,409

      Other financial assets                        287          9,867

      Income taxes receivable                    17,273         17,811

      Prepaid expenses                           19,813         21,858

                                              1,020,356        925,373

    NON-CURRENT ASSETS                                                

      Property, plant and equipment             157,127        158,363

      Intangible assets                         423,057        411,171

      Goodwill                                  578,352        568,849

      Other financial assets                        796              -

      Deferred tax assets                        22,773         31,096

      Other assets                                1,625          1,717

                                              1,183,730      1,171,196

                                           $  2,204,086   $  2,096,569

    LIABILITIES                                                       

    CURRENT LIABILITIES                                               

      Bank indebtedness                    $     11,476   $     20,130

      Trade and other payables                  337,451        323,552

      Other financial liabilities                 4,236         13,065

      Income taxes payable                        2,856          2,315

      Long-term debt                             13,520         17,279

      Provisions                                 33,769         37,096

                                                403,308        413,437

    NON-CURRENT LIABILITIES                                           

      Long-term debt                            317,970        298,160

      Pension & post-retirement benefit          35,724         35,258
      obligations                                        

      Deferred tax liabilities                   87,922         79,702

      Provisions                                  1,969          1,876

      Other financial liabilites                 43,600         33,141

      Other long-term liabilities                 5,895          5,340

                                                493,080        453,477

    EQUITY                                                            

    SHARE CAPITAL                               180,856        174,782

    CONTRIBUTED SURPLUS                          27,192         26,445

    ACCUMULATED OTHER COMPREHENSIVE INCOME       65,352         58,842

    RETAINED EARNINGS                         1,034,298        969,586

                                              1,307,698      1,229,655

                                           $  2,204,086   $  2,096,569

 


                                           DOREL INDUSTRIES INC.

                                     CONSOLIDATED INCOME STATEMENTS

                ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS

                         Fourth Quarters Ended           Twelve Months Ended

                     December 30,   December 30,   December 30,   December 30,
                         2012           2011           2012           2011

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

    Sales            $    616,996   $    558,031   $  2,475,762   $  2,352,250

    Licensing and
    commission
    income                  5,608          3,577         14,948         11,979

    TOTAL REVENUE         622,604        561,608      2,490,710      2,364,229

    Cost of sales         476,201        434,434      1,907,063      1,846,470

    GROSS PROFIT          146,403        127,174        583,647        517,759

    Selling expenses       55,424         45,165        220,299        185,868

    General and
    administrative
    expenses               43,629         35,426        186,785        164,207

    Research and
    development
    expenses                7,861          9,849         28,724         32,227

    OPERATING PROFIT       39,489         36,734        147,839        135,457

    Finance expenses        4,511          5,413         18,017         21,659

    INCOME BEFORE
    INCOME TAXES           34,978         31,321        129,822        113,798

    Income taxes
    expense                 5,859          3,959         21,209          9,205

    NET INCOME       $     29,119   $     27,362   $    108,613   $    104,593

    EARNINGS PER
    SHARE                                                                     

      Basic          $       0.92   $       0.85   $       3.43   $       3.22

      Diluted        $       0.91   $       0.85   $       3.39   $       3.21

    SHARES
    OUTSTANDING                                                               

      Basic -
      weighted
      average          31,560,961     32,034,721     31,690,811     32,456,275

      Diluted -
      weighted
      average          31,963,942     32,130,001     32,039,861     32,621,583

                                           DOREL INDUSTRIES INC.

                        CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                                   ALL FIGURES IN THOUSANDS OF US $

                         Fourth Quarters Ended           Twelve Months Ended

                     December 30,   December 30,   December 30,   December 30,
                         2012           2011           2012           2011

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

    NET INCOME       $     29,119   $     27,362   $    108,613   $    104,593

    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                    13,487       (14,653)         13,628       (15,210)

    Net changes in
    cash flow
    hedges:                                                                   

    Net change in
    unrealized gains
    (losses) on
    derivatives
    designated as
    cash flow hedges        (998)          3,469            123          3,866

    Reclassification
    to income                 242          (495)            973          1,027

    Reclassification
    to the related
    non financial
    asset                 (2,637)          (146)       (10,654)          4,826

    Deferred income
    taxes                     869          (870)          2,440        (2,605)

                          (2,524)          1,958        (7,118)          7,114

    Items that will
    not be
    reclassified to
    net income:                                                               

    Defined benefit
    plans:                                                                    

    Actuarial gains
    (losses) on
    defined benefit
    plans                 (2,865)        (8,152)        (2,871)        (8,158)

    Deferred income
    taxes                   1,138          3,318          1,139          3,234

                          (1,727)        (4,834)        (1,732)        (4,924)

    TOTAL OTHER
    COMPREHENSIVE
    INCOME (LOSS)           9,236       (17,529)          4,778       (13,020)

    TOTAL
    COMPREHENSIVE
    INCOME           $     38,355   $      9,833   $    113,391   $     91,573


                                                      DOREL INDUSTRIES INC.

                                     CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

                                              ALL FIGURES IN THOUSANDS OF US $

                                        Attributable to equity holders of the Company

                                             Cumulative
                         Share   Contributed Translation  Cash Flow    Retained      Total
                        Capital    Surplus    Account*     Hedges*     Earnings     Equity

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

    Balance as at
    December 30,
    2010             $   178,816 $    23,776 $    67,970 $   (1,032) $   902,321 $ 1,171,851

    Total
    comprehensive
    income:                                                                                 

      Net income               -           -           -           -     104,593     104,593

      Defined
      benefit plans
      actuarial
      gains and
      losses, net of
      tax                      -           -           -           -     (4,924)     (4,924)

      Other
      comprehensive
      income (loss)            -           -    (15,210)       7,114          -      (8,096)

                               -           -    (15,210)       7,114      99,669      91,573

    Issued under
    stock option
    plan                     429           -           -           -           -         429

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

    Repurchase and
    cancellation of
    shares               (4,552)           -           -           -           -     (4,552)

    Premium paid on
    share repurchase           -           -           -           -    (12,847)    (12,847)

    Share-based
    payments                   -       2,686           -           -           -       2,686

    Dividends on
    common shares              -           -           -           -    (19,485)    (19,485)

    Dividends on
    deferred share
    units                      -          72           -           -        (72)           -

    Balance as at
    December 30,
    2011             $   174,782 $    26,445 $    52,760 $     6,082 $   969,586 $ 1,229,655

    Total
    comprehensive
    income:                                                                                 

      Net income               -           -           -           -     108,613     108,613

      Defined
      benefit plans
      actuarial
      gains and
      losses, net of
      tax                      -           -           -           -     (1,732)     (1,732)

      Other
      comprehensive
      income (loss)            -           -      13,628     (7,118)          -        6,510

                               -           -      13,628     (7,118)     106,881     113,391

    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 $    66,388 $   (1,036) $ 1,034,298 $ 1,307,698

    *Accumulated other comprehensive income            

 


                                         DOREL INDUSTRIES INC.

                             CONSOLIDATED STATEMENTS OF CASH FLOWS

                                 ALL FIGURES IN THOUSANDS OF US $

                         Fourth Quarters Ended        Twelve Months Ended

                        December      December      December      December
                           30,           30,           30,           30,
                          2012          2011          2012          2011

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

    CASH PROVIDED BY
    (USED IN):                                                             

    OPERATING
    ACTIVITIES                                                             

    Net income        $    29,119   $    27,362   $   108,613   $   104,593

    Items not
    involving cash:                                                        

      Depreciation
      and
      amortization         14,011        12,160        53,332        53,865

      Amortization of
      deferred
      financing costs          98           156           418           532

      Impairment loss
      of goodwill               -         1,372             -         1,372

      Accretion
      expense on
      contingent
      consideration
      and put option
      liabilities           1,196           599         3,304         2,209

      Change of
      assumptions on
      contingent
      consideration
      and put option
      liabilities         (2,043)      (11,131)       (3,473)      (12,217)

      Unrealized
      (gains) losses
      due to foreign
      exchange
      exposure on
      contingent
      consideration
      and put option
      liabilities           (140)           259         1,466         (808)

      Other finance
      expenses              3,217         4,659        14,295        18,919

      Income taxes
      expense               5,859         3,959        21,209         9,205

      Share-based
      payments                567           526         2,275         2,467

      Pension and
      post-retirement
      defined benefit
      plans               (1,741)       (3,989)           431       (1,473)

      Loss on
      disposal of
      property, plant
      and equipment           305           880           229           854

                           50,448        36,812       202,099       179,518

    Net changes in
    balances related
    to operations:                                                         

      Trade and other
      receivables         (3,816)      (10,656)      (37,250)      (37,683)

      Inventories          29,712        18,419      (47,120)        81,433

      Other financial
      assets                   31             -         (947)             -

      Prepaid
      expenses              4,690            12         2,220       (4,134)

      Trade and other
      payables           (14,250)        18,460        11,769      (12,114)

      Pension and
      post-retirement
      benefit
      obligations           (304)         (572)       (2,776)       (3,082)

      Provisions,
      other financial
      long-term
      liabilities and
      other long-term
      liabilities         (2,366)       (1,185)       (2,616)       (1,876)

                           13,697        24,478      (76,720)        22,544

      Income taxes
      paid                (6,058)       (4,489)      (19,271)      (28,181)

      Income taxes
      received              1,286         6,067        16,541         7,136

      Interest paid       (6,257)       (6,239)      (16,660)      (18,540)

      Interest
      received                343             -         1,228             -

    CASH PROVIDED BY
    OPERATING
    ACTIVITIES             53,459        56,629       107,217       162,477

    FINANCING
    ACTIVITIES                                                             

      Bank
      indebtedness            711       (1,495)       (8,670)       (9,777)

      Increase of
      long-term debt            -             -        32,883             -

      Repayments of
      long-term debt     (29,998)         6,268      (16,767)      (14,855)

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

      Financing costs        (28)          (56)         (220)          (22)

      Share
      repurchase                -       (4,753)      (17,812)      (17,399)

      Issuance of
      share capital         3,134             -         7,941           429

      Dividends on
      common shares       (9,463)       (4,808)      (28,449)      (19,485)

    CASH USED IN
    FINANCING
    ACTIVITIES           (35,644)       (4,844)      (38,066)      (63,540)

    INVESTING
    ACTIVITIES                                                             

      Acquisition of
      businesses            (152)      (36,319)      (14,819)      (36,319)

      Additions to
      property, plant
      and equipment       (6,443)       (4,821)      (27,020)      (27,975)

      Disposals of
      property, plant
      and equipment            16           502           166           644

      Additions to
      intangible
      assets              (4,898)       (5,970)      (19,491)      (20,825)

    CASH USED IN
    INVESTING
    ACTIVITIES           (11,477)      (46,608)      (61,164)      (84,475)

      Effect of
      exchange rate
      changes on cash
      and cash
      equivalents              67       (1,191)           560         (446)

    NET INCREASE IN
    CASH AND CASH
    EQUIVALENTS             6,405         3,986         8,547        14,016

    Cash and cash
    equivalents,
    beginning of
    period                 31,906        25,778        29,764        15,748

    CASH AND CASH
    EQUIVALENTS, END
    OF PERIOD         $    38,311   $    29,764   $    38,311   $    29,764

 


                                                                      DOREL INDUSTRIES INC.

                                                                INDUSTRY SEGMENTED INFORMATION

                                                             FOURTH QUARTERS ENDED DECEMBER 30

                                           ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS

                                                                          Recreational /
                                Total                 Juvenile               Leisure            Home Furnishings

                        2012        2011        2012        2011        2012        2011        2012        2011

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

    Total revenue  $   622,604 $   561,608 $   267,359 $   239,532 $   226,640 $   202,410 $   128,605 $   119,666

    Cost of sales      476,201     434,434     192,539     175,859     170,121     156,000     113,541     102,575

    Gross profit       146,403     127,174      74,820      63,673      56,519      46,410      15,064      17,091

    Selling
    expenses            54,746      44,607      28,709      22,480      21,962      18,034       4,075       4,093

    General and
    administrative
    expenses            41,404      42,238      21,171      22,623      17,354      15,714       2,879       3,901

    Research and
    development
    expenses             7,861       9,849       6,299       8,180         747       1,058         815         611

    Operating
    profit              42,392      30,480 $    18,641 $    10,390 $    16,456 $    11,604 $     7,295 $     8,486

    Finance
    expenses             4,511       5,413                                                                        

    Corporate
    expenses             2,903     (6,254)                                                                        

    Income taxes         5,859       3,959                                                                        

    Net income     $    29,119 $    27,362                                                                        

    Earnings per
    Share                                                                                                         

      Basic        $      0.92 $      0.85                                                                        

      Diluted      $      0.91 $      0.85                                                                        

    Impairment
    loss of
    goodwill
    included in
    operating
    profit         $         - $     1,372 $         - $     1,372 $         - $         - $         - $         -

    Depreciation
    and
    amortization
    included in
    operating
    profit         $    13,856 $    12,112 $    10,210 $     9,921 $     2,695 $     1,377 $       951 $       814

                                                                      DOREL INDUSTRIES INC.

                                                                INDUSTRY SEGMENTED INFORMATION

                                                               FOR THE YEARS ENDED DECEMBER 30

                                           ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS

                                Total               Juvenile       Recreational / Leisure       Home Furnishings

                        2012        2011        2012        2011        2012        2011        2012        2011

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

    Total revenue  $ 2,490,710 $ 2,364,229 $ 1,040,765 $   980,197 $   928,422 $   861,754 $   521,523 $   522,278

    Cost of sales    1,907,063   1,846,470     753,107     733,079     694,985     656,702     458,971     456,689

    Gross Profit       583,647     517,759     287,658     247,118     233,437     205,052      62,552      65,589

    Selling
    expenses           217,889     183,740     106,134      83,129      94,523      83,677      17,232      16,934

    General and
    administrative
    expenses           166,170     158,033      87,202      84,083      62,327      57,083      16,641      16,867

    Research and
    development
    expenses            28,724      32,227      21,009      26,055       4,629       3,635       3,086       2,537

    Operating
    profit             170,864     143,759 $    73,313 $    53,851 $    71,958 $    60,657 $    25,593 $    29,251

    Finance
    expenses            18,017      21,659                                                                        

    Corporate
    expenses            23,025       8,302                                                                        

    Income taxes        21,209       9,205                                                                        

    Net income     $   108,613 $   104,593                                                                        

    Earnings per
    Share                                                                                                         

      Basic        $      3.43 $      3.22                                                                        

      Diluted      $      3.39 $      3.21                                                                        

    Impairment
    loss of
    goodwill
    included in
    operating
    profit         $        -  $     1,372 $        -  $     1,372 $        -  $        -  $        -  $        - 

    Depreciation
    and
    amortization
    included in
    operating
    profit         $    53,054 $    53,683 $    39,151 $    40,376 $     9,429 $     8,251 $     4,474 $     5,056

 

 

 

SOURCE DOREL INDUSTRIES INC.


Source: PR Newswire