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

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

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

Summary of Financial Highlights
Third Quarters Ended September 30
All figures in thousands of US $, except per share amounts
		2012	2011	Change %
Total revenue		613,295	575,828	6.5%
Net income		19,986	23,074	(13.4%)
	Per share - basic	0.64	0.71	(9.9%)
	Per share - diluted	0.63	0.71	(11.3%)
Average number of shares outstanding - diluted weighted average		31,878,391	32,613,976
Summary of Financial Highlights
Nine Months Ended September 30
All figures in thousands of US $, except per share amounts
		2012	2011	Change %
Total revenue		1,868,106	1,802,621	3.6%
Net income		79,494	77,231	2.9%
	Per share - basic	2.51	2.37	5.9%
	Per share - diluted	2.48	2.36	5.1%
Average number of shares outstanding - diluted weighted average		32,041,423	32,779,635

 

Juvenile Segment

Third Quarters Ended September 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	249,126		227,080		9.7%
Gross profit	69,080	27.7%	50,089	22.1%	37.9%
Operating profit	16,889	6.8%	4,934	2.2%	242.3%
Nine Months Ended September 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	773,406		740,665		4.4%
Gross profit	212,838	27.5%	183,445	24.8%	16.0%
Operating profit	54,672	7.1%	43,461	5.9%	25.8%

 

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

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

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

Recreational/Leisure Segment

Third Quarters Ended September 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	228,953		209,823		9.1%
Gross profit	55,295	24.2%	47,055	22.4%	17.5%
Operating profit	12,516	5.5%	10,008	4.8%	25.1%
Nine Months Ended September 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	701,782		659,344		6.4%
Gross profit	176,918	25.2%	158,642	24.1%	11.5%
Operating profit	55,502	7.9%	49,053	7.4%	13.1%

 

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

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

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

Home Furnishings Segment

Third Quarters Ended September 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	135,216		138,925		(2.7%)
Gross profit	15,184	11.2%	15,709	11.3%	(3.3%)
Operating profit	5,813	4.3%	6,748	4.9%	(13.9%)
Nine Months Ended September 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	392,918		402,612		(2.4%)
Gross profit	47,488	12.1%	48,498	12.0%	(2.1%)
Operating profit	18,298	4.7%	20,765	5.2%	(11.9%)

 

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

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

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

Quarterly dividend
The Board of Directors of Dorel declared its regular quarterly dividend of US$0.30 per share on the outstanding number of the Company's Class A Multiple Voting Shares, Class B Subordinate Voting Shares and Deferred Share Units. The dividend is payable on December 6, 2012 to shareholders of record as at the close of business on November 22, 2012.

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

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

Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, November 8, 2012 at 1:00 P.M. Eastern Time. Interested parties can join the call by dialling 1-888-231-8191. The conference call can also be accessed via live webcast at www.dorel.com or www.newswire.ca. If you are unable to call in at this time, you may access a recording of the meeting by calling 1-855-859-2056 and entering the passcode 37306010# on your phone. This recording will be available on Thursday, November 8, 2012 as of 4:00 P.M. until 11:59 P.M. on Thursday, November 15, 2012.

Complete financial statements will be available on the Company's website, www.dorel.com, and will be available through the SEDAR websites.

Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle company. Now in its 50^th year, Dorel creates style and excitement in equal measure to safety, quality and value. The Company's lifestyle leadership position is pronounced in both its Juvenile and Bicycle categories with an array of trend-setting products.  Dorel's powerfully branded products include Safety 1^st, Quinny, Cosco, Maxi-Cosi and Bébé Confort in Juvenile, as well as Cannondale, Schwinn, GT, Mongoose, IronHorse and SUGOI in Recreational/Leisure.  Dorel's Home Furnishings segment markets a wide assortment of both domestically produced and imported furniture products, principally within North America. Dorel has annual sales of US$2.4 billion and employs 5,000 people in facilities located in twenty-four countries worldwide.

Caution Regarding Forward Looking Statements
Certain statements included in this press release may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation.  Except as may be required by Canadian securities laws, Dorel does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from Dorel's expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, Dorel cannot guarantee that any forward-looking statement will materialize. Forward-looking statements are provided in this press release for the purpose of giving information about Management's current expectations and plans and allowing investors and others to get a better understanding of Dorel's operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.

Forward-looking statements made in this press release are based on a number of assumptions that Dorel believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from the Company's expectations expressed in or implied by the forward-looking statements include:  general economic conditions; changes in product costs and supply channel; foreign currency fluctuations; customer and credit risk including the concentration of revenues with few customers; costs associated with product liability; changes in income tax legislation or the interpretation or application of those rules; the continued ability to develop products and support brand names; changes in the regulatory environment; continued access to capital resources and the related costs of borrowing; changes in assumptions in the valuation of goodwill and other intangible assets and subject to dividends being declared by the Board of Directors, there can be no certainty that Dorel's Dividend Policy will be maintained. These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in Dorel's annual MD&A and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors outlined in the previously mentioned documents are specifically incorporated herein by reference.

Dorel cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to Dorel or that Dorel currently deems to be immaterial may also have a material adverse effect on our business, financial condition or results of operations.  Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. Dorel therefore cannot describe the expected impact in a meaningful way or in the same way Dorel presents known risks affecting the business.

 

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
ALL FIGURES IN THOUSANDS OF US $
		as at 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.

MaisonBrison Communications
Rick Leckner
[phone]

Dorel Industries Inc.
Jeffrey Schwartz
[phone]