MONTREAL, QUEBEC--(Marketwired - May 5, 2017) - Dorel Industries Inc. DIIDII today released results for the first quarter ended March 31, 2017. Total revenue was US$646.7 million compared to US$645.9 million a year ago. Adjusted net income for the quarter increased 15.4% to US$22.7 million or US$0.69 per diluted share from US$19.7 million, or US$0.60 per diluted share in 2016. Reported net income decreased to US$8.8 million, or US$0.27 per diluted share, compared to US$16.7 million or US$0.51 per diluted share last year.

"Dorel's adjusted operating profit improved by over 15% versus last year's first quarter when excluding restructuring and other costs within our income statement. Of our three business segments, Dorel Home was again a standout with revenues increasing 9% and operating profit approaching 10% of revenues. Dorel Sports also improved earnings from prior year, leveraging better margins and its more efficient cost structure. Dorel Juvenile is benefitting from its strategic direction on improving gross margins, but faced challenges at its China facility with a large ramp up on new products and labour shortages around the Chinese New Year which delayed some scheduled launches. In our smaller Juvenile markets, Brazil and Australia performed exceptionally well and are now recognized as industry leaders. At the corporate level, with the support of our lenders, we successfully re-negotiated our credit facilities. This resulted in a first quarter pre-tax expense of US$10.2 million, or US$0.30 per diluted share, related to the extinguishment of existing debt. This change will allow for better management of our long-term capital needs and will decrease our financing costs going-forward. Interest costs are expected to be reduced by approximately US$4.0 million through the balance of 2017 and will continue annually going forward," stated Martin Schwartz, Dorel President & CEO.

The Company is presenting adjusted financial information, excluding restructuring and other costs, remeasurement of forward purchase agreement liabilities and loss on early extinguishment of long-term debt as it believes this provides a more meaningful comparison of its core business performance between the periods presented. These previously announced items are detailed in the attached tables of this press release. Contained within this press release are reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

Summary of Financial Information (unaudited)
Three Months Ended March 31
All figures in thousands of US $, except per share amounts
		2017	2016	Change
		$	$	%
Total revenue		646,712	645,867	0.1	%
Net income		8,841	16,734	(47.2	%)
	Per share - Basic	0.27	0.52	(48.1	%)
	Per share - Diluted	0.27	0.51	(47.1	%)
Adjusted net income		22,705	19,671	15.4	%
	Per share - Basic	0.70	0.61	14.8	%
	Per share - Diluted	0.69(1)	0.60	15.0	%
Number of shares outstanding -
	Basic weighted average	32,403,980	32,333,261
	Diluted weighted average	32,654,173	32,545,454
	Adjusted diluted weighted average	35,221,018	32,545,454

(1)

As at March 31, 2017, the convertible debentures were included in the calculation of the adjusted diluted EPS by adjusting the adjusted net income attributable to equity holders as well as the adjusted diluted weighted average number of shares outstanding as these debentures were deemed to be dilutive.

Dorel Home
All figures in thousands of US $
Three Months Ended March 31 (unaudited)
	2017			2016 Restated*			Change
	$	% of rev.		$	% of rev.		%
Total revenue	204,038			187,471			8.8	%
Gross profit	34,572	16.9	%	31,738	16.9	%	8.9	%
Operating profit	19,765	9.7	%	17,643	9.4	%	12.0	%

*

During the fourth quarter of 2016, the Company changed its internal organization and the composition of its reportable segments. The design, sourcing, manufacturing, distribution and retail of the children's furniture was transferred from Dorel Juvenile to Dorel Home. Accordingly, the Company has restated the segmented information for the three months ended March 31, 2016.

First quarter revenue rose US$16.6 million, or 8.8% to US$204.0 million, representing the best quarter in the segment's history. Growth was driven by increased sales to on-line retailers in all divisions, representing 46% of total segment sales compared to 42% in the first quarter of 2016. Brick and mortar sales remained flat compared with last year's first quarter.

Gross profit, at 16.9%, remained comparable to last year's first quarter as improved margins from increased on-line sales were offset by higher input and warehousing costs.

Operating profit for the quarter was also a record, at US$19.8 million, up 12.0% from US$17.6 million a year ago, driven by higher sales volumes, slightly offset by a modest increase in selling expenses in line with the sales growth.

Dorel Juvenile
All figures in thousands of US $
Three Months Ended March 31 (unaudited)
	2017			2016 Restated*			Change
	$	% of rev.		$	% of rev.		%
Total revenue	228,658			241,899			(5.5	%)
Gross profit	69,885	30.6	%	70,817	29.3	%	(1.3	%)
Operating profit	9,594	4.2	%	14,445	6.0	%	(33.6	%)
Adjusted gross profit	71,102	31.1	%	70,817	29.3	%	0.4	%
Adjusted operating profit	15,342	6.7	%	17,410	7.2	%	(11.9	%)

*

During the fourth quarter of 2016, the Company changed its internal organization and the composition of its reportable segments. The design, sourcing, manufacturing, distribution and retail of the children's furniture was transferred from Dorel Juvenile to Dorel Home. Accordingly, the Company has restated the segmented information for the three months ended March 31, 2016.

Dorel Juvenile's first quarter revenue decreased by US$13.2 million or 5.5% to US$228.7 million compared with US$241.9 million in 2016, which was mostly organic. The decline in revenue was mainly attributable to the European market and reduced sales by Dorel Juvenile China to non-domestic third-party customers. Certain scheduled product launches were delayed due to production issues at the China factory caused by labour shortages associated with the Chinese New Year and the large number of concurrent new products, placing additional strain on the factory's ability to deliver on schedule. This also negatively impacted sales in several markets.

The benefits of a focused effort to improve sales mix, as well as cost savings and other operational efficiencies from our restructuring activities resulted in an adjusted gross profit of 31.1%. This represented a year-over-year improvement of 180 basis points on an adjusted basis and was in almost all markets. Adjusted operating profit decreased by US$2.1 million, or 11.9% to US$15.3 million from US$17.4 million in 2016 due to higher operating expenses.

Dorel Sports
All figures in thousands of US $
Three Months Ended March 31 (unaudited)
	2017			2016			Change
	$	% of rev.		$	% of rev.		%
Total revenue	214,016			216,497			(1.1	%)
Gross profit	48,988	22.9	%	47,498	21.9	%	3.1	%
Operating profit	10,114	4.7	%	5,254	2.4	%	92.5	%
Adjusted gross profit	48,044	22.4	%	47,498	21.9	%	1.1	%
Adjusted operating profit	9,472	4.4	%	5,226	2.4	%	81.2	%

First quarter revenue decreased US$2.5 million or 1.1% to US$214.0 million and approximately 1.3% after removing the impact of varying exchange rates year-over-year. Organic revenue declined approximately 9.9% when removing foreign exchange fluctuations and the change in Cycling Sports Group (CSG) International's business model for which the revenue recognition transitioned from a licensing model to a distribution platform. Part of the revenue shortfall in the mass channel was due to unfavourable North American weather and a shift in Easter holiday sales moving from the end of the first quarter to April 2017. Lower first quarter CSG sales volumes were also caused by inclement weather, lower discounted sales than prior year and continued reductions in IBD retailers' inventories which reached historically low levels.

Dorel Sports initiated restructuring actions last year which are expected to result in annualized savings of US$5.0 million. First quarter operating profit rose by US$4.9 million, or 92.5% to US$10.1 million as a result of the restructuring plan, improved margins and cost control initiatives in almost all regions. A combination of less discounting and selective price increases in CSG as well as Pacific Cycle's improved product mix also contributed to the improvement. Caloi achieved higher margins with its improved pricing and product mix as well as from the strengthening of the Brazilian Real.

Other

Effective March 24, 2017, the Company amended its Credit Agreement with respect to its revolving bank loans and secured a term loan of US$200.0 million with the same maturity date as its revolving bank loans. As such, the net proceeds from the term loan were used by the Company to repay its Series "B" and "C" Senior Guaranteed Notes, its Brazilian non-convertible debentures and to reduce bank indebtedness. Included in finance expenses for the three months ended March 31, 2017, is a cost of US$10.2 million or US$0.30 per diluted share for early extinguishment of long-term debt. With the lower average interest rates of the term loan facilities going forward, the Company expects to reduce its interest costs by approximately US$4.0 million in the balance of 2017.

During the first quarter of 2017, the Company's effective tax rate was 35.7% versus 17.2% in the prior year. Excluding income taxes on restructuring and other costs, on remeasurement of forward purchase agreement liabilities and on loss on early extinguishment of long-term debt, the Company's adjusted tax rate was 22.6% and 17.0% respectively. The main cause of the variation year-over-year of the adjusted tax rate is due to changes in the jurisdictions in which the Company generated its income. The Company has stated that for the full year it expects its annual adjusted tax rate to be between 15% and 20%. However, variations in earnings across quarters mean that this rate may vary significantly between quarters.

During the first three months of 2017, cash flow used in operating activities was US$17.5 million compared to US$5.9 million used in last year's first quarter mainly explained by lower net income, increased inventories and product liability costs payments during the first quarter of 2017 related to settlements in 2016, partly offset by increases in trade and other receivables as well as trade and other payables.

Quarterly dividend

Dorel's Board of Directors 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, Deferred Share Units and cash-settled Performance Share Units. The dividend is payable on June 2, 2017 to shareholders of record as at the close of business on May 19, 2017.

Outlook

"In the outlook provided with our year end results, we stated that for 2017 all three of our business segments were positioned to improve earnings. In the first quarter, both Dorel Home and Dorel Sports delivered on that expectation. Dorel Juvenile had a slower than anticipated start to the year as our factory in China faced challenges on new product launches, but we are proactively managing this and will see improvements through the year," stated Martin Schwartz, Dorel President & CEO.

"We still expect all three segments to exceed prior year earnings. Dorel Home again demonstrated its ability to deliver an expanded product range to consumers with its industry leading e-commerce platform. This will continue to drive sales and earnings improvements for the balance of the year. We expect a strong second half at Dorel Juvenile due to multiple new product introductions and new local management in China delivering on needed improvements in operations. In addition, 2016's abnormally high product liability costs will return to normal levels, contributing to the segment's substantial earnings improvement. The bicycle industry is currently facing short-term challenges, therefore sales growth opportunities in 2017 could be limited. Dorel Sports has re-structured itself to increase earnings this year through improved margins and lower operating expenses, and we expect this to more than offset sales challenges.

In addition, we made the strategic decision to amend the Company's Credit Agreement and the related costs impacted the quarter, but this will lower our finance expenses through the rest of the year," concluded Mr. Schwartz.

Conference Call

Dorel Industries Inc. will hold a conference call to discuss these results today, May 5, 2017 at 1:00 P.M. Eastern Time. Interested parties can join the call by dialing 1-877-223-4471. The conference call can also be accessed via live webcast at http://www.dorel.com/eng/events. If you are unable to call in at this time, you may access a recording of the meeting by calling 1-800-585-8367 and entering the passcode 4696858 on your phone. This recording will be available on Friday, May 5, 2017 as of 4:00 P.M. until 11:59 P.M. on Friday, May 12, 2017.

Complete condensed consolidated interim financial statements as at March 31, 2017 will be available on the Company's website, www.dorel.com, and will be available through the SEDAR website.

Profile

Dorel Industries Inc. DIIDII is a world class juvenile products and bicycle company. The Company's safety and lifestyle leadership is pronounced in both its Juvenile and Bicycle categories with an array of trend-setting, innovative products. Dorel Juvenile's powerfully branded products include global juvenile brands Safety 1^st, Quinny, Maxi-Cosi and Tiny Love, complemented by regional brands such as Cosco, Bébé Confort and Infanti. In Dorel Sports, brands include Cannondale, Schwinn, GT, Mongoose, Caloi, IronHorse and SUGOI. Dorel Home markets include a wide assortment of both domestically produced and imported furniture products, principally within North America. Dorel Industries Inc. has annual sales of US$2.6 billion and employs approximately 10,000 people in facilities located in over twenty-five countries worldwide.

Caution Regarding Forward-Looking Statements

Certain statements included in this press release may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. Except as may be required by Canadian securities laws, Dorel does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from Dorel's expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, Dorel cannot guarantee that any forward-looking statement will materialize, or if any of them do, what benefits Dorel will derive from them. 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 Dorel's expectations expressed in or implied by the forward-looking statements include: general economic conditions; changes in product costs and supply channels; foreign currency fluctuations; customer and credit risk, including the concentration of revenues with small number of 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 there being no certainty that Dorel's current 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 Management Discussion and Analysis 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 Dorel's 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.

Non-GAAP financial measures

As a result of restructuring and other costs, remeasurement of forward purchase agreement liabilities and loss on early extinguishment of long-term debt incurred in 2017 and 2016, the Company is including in this press release the following non-GAAP financial measures: "adjusted cost of sales", "adjusted gross profit", "adjusted operating profit", "adjusted finance expenses", "adjusted income before income taxes", "adjusted income taxes expense", "adjusted tax rate", "adjusted net income", "adjusted earnings per basic and diluted share" and "adjusted diluted weighted average number of shares outstanding". The Company believes that this results in a more meaningful comparison of its core business performance between the periods presented. These non-GAAP financial measures do not have a standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other issuers. Contained within this press release are reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

(All figures in tables below are in thousands of US$, except per share amounts)

Reconciliation of non-GAAP financial measures
	Three Months Ended March 31,
	2017									2016
	Reported		% of revenue	Restructuring and other costs		Adjusted		% of revenue		Reported		% of revenue	Restructuring and other costs		Adjusted		% of revenue
	$		%	$		$		%		$		%	$		$		%
TOTAL REVENUE	646,712		100.0	-		646,712		100.0		645,867		100.0	-		645,867		100.0
Cost of sales	493,267		76.3	(273	)	492,994		76.2		495,814		76.8	-		495,814		76.8
GROSS PROFIT	153,445		23.7	273		153,718		23.8		150,053		23.2	-		150,053		23.2
Selling expenses	54,662		8.5	-		54,662		8.5		56,341		8.7	-		56,341		8.7
General and administrative expenses	52,494		8.1	-		52,494		8.1		51,620		8.0	-		51,620		8.0
Research and development expenses	7,523		1.2	-		7,523		1.2		8,269		1.3	-		8,269		1.3
Restructuring and other costs	4,833		0.7	(4,833	)	-		-		2,937		0.4	(2,937	)	-		-
OPERATING PROFIT	33,933		5.2	5,106		39,039		6.0		30,886		4.8	2,937		33,823		5.2
Finance expenses	20,188		3.1	(10,475	)	9,713		1.5		10,678		1.7	(561	)	10,117		1.5
INCOME BEFORE INCOME TAXES	13,745		2.1	15,581		29,326		4.5		20,208		3.1	3,498		23,706		3.7
Income taxes expense	4,904		0.7	1,717		6,621		1.0		3,474		0.5	561		4,035		0.7
Tax rate	35.7	%		-		22.6	%			17.2	%		-		17.0	%
NET INCOME	8,841		1.4	13,864		22,705		3.5		16,734		2.6	2,937		19,671		3.0
EARNINGS PER SHARE
Basic	0.27			0.43		0.70				0.52			0.09		0.61
Diluted	0.27			0.42		0.69(1)				0.51			0.09		0.60
SHARES OUTSTANDING
Basic - weighted average	32,403,980					32,403,980				32,333,261					32,333,261
Diluted - weighted average	32,654,173					35,221,018				32,545,454					32,545,454

(1)

As at March 31, 2017, the convertible debentures were included in the calculation of the adjusted diluted EPS by adjusting the adjusted net income attributable to equity holders as well as the adjusted diluted weighted average number of shares outstanding as these debentures were deemed to be dilutive.

The details of restructuring and other costs, remeasurement of forward purchase agreement liabilities and loss on early extinguishment of long-term debt recorded are presented below:

	Three Months Ended March 31,
	2017		2016
	$		$
Write-down of long-lived assets	517		-
Inventory markdowns (reversals)	(93	)	-
Recorded within gross profit	424		-
Employee severance and termination benefits	2,487		1,704
Write-down of long-lived assets	-		424
Net losses from the remeasurement and disposals of assets held for sale	712		-
Other associated costs	1,634		80
Recorded within a separate line in the condensed consolidated interim income statements	4,833		2,208
Total restructuring costs	5,257		2,208
Other costs recorded within gross profit	(151	)	-
Acquisition-related costs recorded within a separate line in the condensed consolidated interim income statements	-		729
Total other costs	(151	)	729
Total restructuring and other costs	5,106		2,937
Loss on remeasurement of forward purchase agreement liabilities	276		561
Loss on early extinguishment of long-term debt	10,199		-
Total restructuring and other costs, remeasurement of forward purchase agreement liabilities and loss on early extinguishment of long-term debt before income taxes(1)	15,581		3,498
Total restructuring and other costs, remeasurement of forward purchase agreement liabilities and loss on early extinguishment of long-term debt after income taxes	13,864		2,937
Total impact on diluted earnings per share	(0.42	)	(0.09	)
(1)Includes non-cash amounts of:	2,829		985

Dorel Juvenile
Reconciliation of non-GAAP financial measures
	Three Months Ended March 31,
	2017							2016 Restated*
	Reported	% of revenue	Restructuring and other costs		Adjusted	% of revenue		Reported	% of revenue	Restructuring and other costs		Adjusted	% of revenue
	$	%	$		$	%		$	%	$		$	%
TOTAL REVENUE	228,658	100.0	-		228,658	100.0		241,899	100.0	-		241,899	100.0
Cost of sales	158,773	69.4	(1,217	)	157,556	68.9		171,082	70.7	-		171,082	70.7
GROSS PROFIT	69,885	30.6	1,217		71,102	31.1		70,817	29.3	-		70,817	29.3
Selling expenses	28,153	12.3	-		28,153	12.3		28,082	11.6	-		28,082	11.6
General and administrative expenses	22,348	9.8	-		22,348	9.8		19,654	8.2	-		19,654	8.2
Research and development expenses	5,259	2.3	-		5,259	2.3		5,671	2.3	-		5,671	2.3
Restructuring and other costs	4,531	2.0	(4,531	)	-	-		2,965	1.2	(2,965	)	-	-
OPERATING PROFIT	9,594	4.2	5,748		15,342	6.7		14,445	6.0	2,965		17,410	7.2

*

During the fourth quarter of 2016, the Company changed its internal organization and the composition of its reportable segments. The design, sourcing, manufacturing, distribution and retail of the children's furniture was transferred from Dorel Juvenile to Dorel Home. Accordingly, the Company has restated the segmented information for the three months ended March 31, 2016.

Dorel Sports
Reconciliation of non-GAAP financial measures
	Three Months Ended March 31,
	2017							2016
	Reported	% of revenue	Restructuring and other costs		Adjusted	% of revenue		Reported		% of revenue	Restructuring and other costs		Adjusted	% of revenue
	$	%	$		$	%		$		%	$		$	%
TOTAL REVENUE	214,016	100.0	-		214,016	100.0		216,497		100.0	-		216,497	100.0
Cost of sales	165,028	77.1	944		165,972	77.6		168,999		78.1	-		168,999	78.1
GROSS PROFIT	48,988	22.9	(944	)	48,044	22.4		47,498		21.9	-		47,498	21.9
Selling expenses	19,857	9.3	-		19,857	9.3		22,401		10.3	-		22,401	10.3
General and administrative expenses	17,363	8.1	-		17,363	8.1		18,299		8.5	-		18,299	8.5
Research and development expenses	1,352	0.6	-		1,352	0.6		1,572		0.7	-		1,572	0.7
Restructuring and other costs	302	0.2	(302	)	-	-		(28	)	-	28		-	-
		-				-				-				-
OPERATING PROFIT	10,114	4.7	(642	)	9,472	4.4		5,254		2.4	(28	)	5,226	2.4

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
		as at			as at
		March 31, 2017			December 30, 2016
ASSETS
CURRENT ASSETS
	Cash and cash equivalents	$	35,137		$	31,883
	Trade and other receivables		460,784			431,062
	Inventories		569,615			549,688
	Other financial assets		2,460			4,333
	Income taxes receivable		13,399			14,466
	Prepaid expenses		30,291			21,040
			1,111,686			1,052,472
	Assets held for sale		4,397			20,017
			1,116,083			1,072,489
NON-CURRENT ASSETS
	Property, plant and equipment		191,560			191,294
	Intangible assets		429,981			427,587
	Goodwill		438,354			435,790
	Deferred tax assets		36,302			39,324
	Other assets		7,692			6,148
			1,103,889			1,100,143
		$	2,219,972		$	2,172,632
LIABILITIES
CURRENT LIABILITIES
	Bank indebtedness	$	45,911		$	49,490
	Trade and other payables		471,999			437,009
	Written put option and forward purchase agreement liabilities		-			7,500
	Other financial liabilities		570			569
	Deferred revenue		4,960			6,475
	Income taxes payable		14,587			15,143
	Long-term debt		8,139			51,138
	Provisions		43,185			63,169
			589,351			630,493
NON-CURRENT LIABILITIES
	Long-term debt		441,506			355,118
	Net pension and post-retirement defined benefit liabilities		34,341			35,206
	Deferred tax liabilities		51,493			53,293
	Provisions		1,784			1,681
	Written put option and forward purchase agreement liabilities		26,993			26,325
	Other financial liabilities		967			1,115
	Other long-term liabilities		9,846			13,302
			566,930			486,040
EQUITY
Share capital			202,400			202,400
Contributed surplus			27,194			27,139
Accumulated other comprehensive loss			(104,691	)		(113,840	)
Other equity			2,359			3,027
Retained earnings			936,429			937,373
			1,063,691			1,056,099
		$	2,219,972		$	2,172,632

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENTS
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
(unaudited)
		Three Months Ended
		March 31, 2017			March 31, 2016
Sales		$	646,425		$	642,572
Licensing and commission income			287			3,295
TOTAL REVENUE			646,712			645,867
Cost of sales(1)			493,267			495,814
GROSS PROFIT			153,445			150,053
Selling expenses			54,662			56,341
General and administrative expenses			52,494			51,620
Research and development expenses			7,523			8,269
Restructuring and other costs(1)			4,833			2,937
OPERATING PROFIT			33,933			30,886
Finance expenses			20,188			10,678
INCOME BEFORE INCOME TAXES			13,745			20,208
Income taxes expense			4,904			3,474
NET INCOME		$	8,841		$	16,734
EARNINGS PER SHARE
	Basic	$	0.27		$	0.52
	Diluted	$	0.27		$	0.51
SHARES OUTSTANDING
	Basic - weighted average		32,403,980			32,333,261
	Diluted - weighted average		32,654,173			32,545,454
(1)Restructuring and other costs charged to:
Cost of sales		$	273		$	-
Expenses			4,833			2,937
		$	5,106		$	2,937

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
	Three Months Ended
	March 31, 2017			March 31, 2016
NET INCOME	$	8,841		$	16,734
OTHER COMPREHENSIVE INCOME:
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		9,576			21,996
Net gains (losses) on hedge of net investments in foreign operations, net of tax of nil		930			6,576
		10,506			28,572
Net changes in cash flow hedges:
Net change in unrealized gains (losses) on derivatives designated as cash flow hedges		(199	)		(3,614	)
Reclassification to income		99			183
Reclassification to the related non-financial asset		(1,643	)		(238	)
Deferred income taxes		415			1,352
		(1,328	)		(2,317	)
Items that will not be reclassified to net income:
Defined benefit plans:
Remeasurements of the net pension and post-retirement defined benefit liabilities		(37	)		(13	)
Deferred income taxes		8			7
		(29	)		(6	)
TOTAL OTHER COMPREHENSIVE INCOME		9,149			26,249
TOTAL COMPREHENSIVE INCOME	$	17,990		$	42,983

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
		Attributable to equity holders of the Company
							Accumulated other
							comprehensive income (loss)
		Share Capital		Contributed Surplus			Cumulative Translation Account			Cash Flow Hedges			Defined Benefit Plans			Other Equity			Retained Earnings			Total Equity
Balance as at December 30, 2015		$	200,277	$	26,480		$	(104,521	)	$	2,680		$	(12,115	)	$	1,527		$	988,069		$	1,102,397
Total comprehensive income:
	Net income		-		-			-			-			-			-			16,734			16,734
	Other comprehensive income (loss)		-		-			28,572			(2,317	)		(6	)		-			-			26,249
			-		-			28,572			(2,317	)		(6	)		-			16,734			42,983
	Reclassification from contributed surplus due to settlement of deferred share units		61		(103	)		-			-			-			-			-			(42	)
	Share-based payments		-		113			-			-			-			-			-			113
	Remeasurement of written put option liabilities		-		-			-			-			-			(1,890	)		-			(1,890	)
	Dividends on common shares		-		-			-			-			-			-			(9,702	)		(9,702	)
	Dividends on deferred share units		-		62			-			-			-			-			(62	)		-
Balance as at March 31, 2016		$	200,338	$	26,552		$	(75,949	)	$	363		$	(12,121	)	$	(363	)	$	995,039		$	1,133,859
Balance as at December 30, 2016		$	202,400	$	27,139		$	(102,629	)	$	2,852		$	(14,063	)	$	3,027		$	937,373		$	1,056,099
Total comprehensive income:
	Net income		-		-			-			-			-			-			8,841			8,841
	Other comprehensive income (loss)		-		-			10,506			(1,328	)		(29	)		-			-			9,149
			-		-			10,506			(1,328	)		(29	)		-			8,841			17,990
	Share-based payments		-		(9	)		-			-			-			-			-			(9	)
	Remeasurement of written put option liabilities		-		-			-			-			-			(668	)		-			(668	)
	Dividends on common shares		-		-			-			-			-			-			(9,721	)		(9,721	)
	Dividends on deferred share units		-		64			-			-			-			-			(64	)		-
Balance as at March 31, 2017		$	202,400	$	27,194		$	(92,123	)	$	1,524		$	(14,092	)	$	2,359		$	936,429		$	1,063,691

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
		Three Months Ended
		March 31, 2017			March 31, 2016
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net income		$	8,841		$	16,734
Items not involving cash:
	Depreciation and amortization		12,017			13,045
	Unrealized losses (gains) arising on financial assets and financial liabilities classified as held for trading		72			746
	Share-based payments		(9	)		113
	Defined benefit pension and post-retirement costs		920			961
	Loss on disposal of property, plant and equipment		67			16
	Restructuring and other costs		1,136			424
Finance expenses			20,188			10,678
Income taxes expense			4,904			3,474
Net changes in balances related to operations(1)			(53,766	)		(48,864	)
Income taxes paid			(4,877	)		(3,440	)
Income taxes received			3,039			4,790
Interest paid			(10,143	)		(4,679	)
Interest received			119			86
CASH USED IN OPERATING ACTIVITIES			(17,492	)		(5,916	)
FINANCING ACTIVITIES
Bank indebtedness			(4,909	)		(11,632	)
Increase of long-term debt			217,447			43,412
Repayments of long-term debt			(174,555	)		(4,309	)
Repayments of forward purchase agreement liabilities			(7,857	)		(4,414	)
Financing costs			(2,642	)		(1,740	)
Dividends on common shares			(9,721	)		(9,702	)
CASH PROVIDED BY FINANCING ACTIVITIES			17,763			11,615
INVESTING ACTIVITIES
Acquisition of businesses			-			5,475
Additions to property, plant and equipment			(6,321	)		(5,242	)
Disposals of property, plant and equipment			72			113
Net proceeds from disposals of assets held for sale			11,649			-
Additions to intangible assets			(3,454	)		(4,482	)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES			1,946			(4,136	)
Effect of foreign currency exchange rate changes on cash and cash equivalents			1,037			3,795
NET INCREASE IN CASH AND CASH EQUIVALENTS			3,254			5,358
Cash and cash equivalents, beginning of period			31,883			33,182
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	35,137		$	38,540
(1)Supplemental information on net changes in balances related to operations:
	Trade and other receivables	$	(23,009	)	$	(29,981	)
	Inventories		(16,022	)		33,018
	Other financial assets		(137	)		(1,128	)
	Prepaid expenses		(9,110	)		(11,967	)
	Other assets		(76	)		(317	)
	Trade and other payables		21,297			(37,202	)
	Net pension and post-retirement defined benefit liabilities		(1,978	)		(1,411	)
	Provisions, other financial liabilities, deferred revenue and other long-term liabilities		(24,731	)		124
		$	(53,766	)	$	(48,864	)

DOREL INDUSTRIES INC.
SEGMENTED INFORMATION
THREE MONTHS ENDED MARCH 31
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
(unaudited)
		Total				Dorel Juvenile				Dorel Sports						Dorel Home
		2017		2016		2017		2016		2017			2016			2017		2016
								Restated*										Restated*
Total revenue		$	646,712	$	645,867	$	228,658	$	241,899	$	214,016		$	216,497		$	204,038	$	187,471
Cost of sales (1)			493,267		495,814		158,773		171,082		165,028			168,999			169,466		155,733
Gross profit			153,445		150,053		69,885		70,817		48,988			47,498			34,572		31,738
Selling expenses			54,159		55,878		28,153		28,082		19,857			22,401			6,149		5,395
General and administrative expenses			47,457		45,627		22,348		19,654		17,363			18,299			7,746		7,674
Research and development expenses			7,523		8,269		5,259		5,671		1,352			1,572			912		1,026
Restructuring and other costs (1)			4,833		2,937		4,531		2,965		302			(28	)		-		-
Operating profit			39,473		37,342	$	9,594	$	14,445	$	10,114		$	5,254		$	19,765	$	17,643
Finance expenses			20,188		10,678
Corporate expenses			5,540		6,456
Income taxes expense			4,904		3,474
Net income		$	8,841	$	16,734
Earnings per share
	Basic	$	0.27	$	0.52
	Diluted	$	0.27	$	0.51
Depreciation and amortization included in operating profit		$	11,817	$	12,844	$	8,460	$	8,890	$	2,306		$	2,838		$	1,051	$	1,116
(1)Restructuring and other costs charged to:
Cost of sales		$	273	$	-	$	1,217	$	-	$	(944	)	$	-		$	-	$	-
Expenses			4,833		2,937		4,531		2,965		302			(28	)		-		-
		$	5,106	$	2,937	$	5,748	$	2,965	$	(642	)	$	(28	)	$	-	$	-

*

During the fourth quarter of 2016, the Company changed its internal organization and the composition of its reportable segments. The design, sourcing, manufacturing, distribution and retail of the children's furniture was transferred from Dorel Juvenile to Dorel Home. Accordingly, the Company has restated the segmented information for the three months ended March 31, 2016.