Market Overview

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 50th year, Dorel creates style and excitement in equal measure to safety, quality and value. The Company's lifestyle leadership position is pronounced in both its Juvenile and Bicycle categories with an array of trend-setting products.  Dorel's powerfully branded products include Safety 1st, Quinny, Cosco, Maxi-Cosi and Bébé Confort in Juvenile, as well as Cannondale, Schwinn, GT, Mongoose, IronHorse and SUGOI in Recreational/Leisure.  Dorel's Home Furnishings segment markets a wide assortment of both domestically produced and imported furniture products, principally within North America. Dorel has annual sales of US$2.4 billion and employs 5,000 people in facilities located in twenty-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
September 30,
2012
 
 
as at
December 30,
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 obligations   34,871     35,258
  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 30,
2012
  September 30,
2011
  September 30,
2012
  September 30,
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  30,
2012
  September 30,
2011
  September  30,
2012
  September 30,
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  
 
 
 
Share
Capital
Contributed
Surplus
Cumulative
Translation
Account
Cash Flow
Hedges
  Defined
Benefit
Plans
Other
Retained
Earnings
Total Equity
  (unaudited) (unaudited) (unaudited) (unaudited)   (unaudited) (unaudited) (unaudited)
                               
Balance as at December 30, 2010 $ 178,816 $ 23,776 $ 67,970 $ (1,032)   $ (2,312) $ 904,633 $ 1,171,851
                               
Net income   -   -   -   -     -   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 30,
2012
  September 30,
2011
  September  30,
2012
  September 30,
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.

 

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