Dorel announces third quarter results

• New Caloi acquisition boosts Recreational/Leisure
  
• Excluding one-time charges, third quarter net income would have been US$0.64 per diluted share
  

EXCHANGES
TSX: DII.B, DII.A

MONTREAL, Nov. 7, 2013 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A) today announced results for the third quarter and nine months ended September 30, 2013. Revenue for the quarter was US$607.3 million compared to US$613.3 million a year ago. Net income for the period was US$11.1 million or US$0.34 per diluted share compared to US$20.0 million or US$0.63 per diluted share in 2012.

Total revenue for the nine months was US$1.80 billion compared to US$1.87 billion in the prior year. Net income was US$46.6 million or US$1.45 per diluted share, compared to US$79.4 million or US$2.48 per diluted share for the year-to-date a year ago.

The third quarter results include one-time charges totaling US$9.4 million, after tax. Year-to-date these costs total US$10.5 million. The acquisition of Brazilian bicycle company, Caloi, incurred after tax costs of US$4.5 million in the quarter and US$5.6 million year-to-date, principally related to foreign exchange losses on the put option liability associated with the transaction. The remaining US$4.9 million, after tax, pertains to Dorel's potential cost following a US$26 million amount assessed in a U.S. car seat judgment against the Company. Excluding these costs, third quarter net income would have been US$20.5 million or US$0.64 per diluted share.

"2013 has been a challenging year in our core businesses and we have been focused on making the required adjustments including rigorous concentration on new product development. I am pleased that many innovative products have recently been launched, particularly in our Juvenile segment. Furthermore we have seen an improvement since the second quarter in Recreational/Leisure's operating profit. We are taking measures to improve this business," stated Dorel President and CEO Martin Schwartz.

"We are continuing to invest heavily in our businesses, as evidenced by the Caloi transaction and Dorel's purchase of the majority stake in the Cannondale Pro Cycling team. Home Furnishings held its revenue and operating profit steady with last year, despite a still difficult retail environment. The segment's on-line 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
		2013		2012	Change %
Total revenue		607,298		613,295	(1.0%)
Net income		11,105		19,986	(44.4%)
	Per share - Basic	0.35		0.64	(45.3%)
	Per share - Diluted	0.34		0.63	(46.0%)
Average number of shares outstanding -
Diluted weighted average		32,207,439		31,878,391
Summary of Financial Highlights
Nine Months Ended September 30
All figures in thousands of US $, except per share amounts
		2013		2012	Change %
Total revenue		1,801,915		1,868,106	(3.5%)
Net income		46,645		79,390	(41.2%)
	Per share - Basic	1.47		2.50	(41.2%)
	Per share - Diluted	1.45		2.48	(41.5%)
Average number of shares outstanding -
Diluted weighted average		32,169,642		32,041,423

Juvenile Segment

Third Quarters Ended September 30
	2013		2012
	$	% of rev.	$	% of rev.	Change %
Total revenue	238,983		249,126		(4.1%)
Gross profit	64,911	27.2%	69,080	27.7%	(6.0%)
Operating profit	5,027	2.1%	16,889	6.8%	(70.2%)
Nine Months Ended September 30
	2013		2012
	$	% of rev.	$	% of rev.	Change %
Total revenue	737,628		773,406		(4.6%)
Gross profit	208,178	28.2%	212,480	27.5%	(2.0%)
Operating profit	38,770	5.3%	54,429	7.0%	(28.8%)

Organic revenue declined approximately 6% in both the quarter and the first nine months due to difficult economies and a slower retail environment in certain European and North American markets. Partially offsetting this has been growth in Latin America where sales continue to improve.

Operating profit for the third quarter was significantly impacted by the pre-tax expense of US$8.0 million related to the unfavorable U.S. car seat judgment, as detailed above. The U.S. car seat verdict will be appealed. Operating profit declined in most markets. In Europe, this was caused by lower sales combined with a less profitable sales mix. Excluding costs related to the U.S. car seat case, operating profit in North America for the quarter improved moderately over the prior year. In Latin America, operating profit for the quarter was slightly lower than the prior year. This was mostly due to the timing of sales and operating profit for the region remains on track to exceed the prior year.

Juvenile participated in two important trade shows during the quarter, in Cologne, Germany and in Las Vegas. Customer feedback was positive for the new product offerings which are being launched in the fourth quarter and in early 2014. Maxi-Cosi won the Cologne show's prestigious Innovation Award with its new 2Way Pearl i-Size car seat in the World of Travelling Baby category. Dorel is the first car seat manufacturer to offer a product which meets the new European standard and is the first-to-market with this important new safety innovation.

Recreational/Leisure Segment

Third Quarters Ended September 30
	2013		2012
	$	% of rev.	$	% of rev.	Change %
Total revenue	231,591		228,953		1.2%
Gross profit	54,185	23.4%	55,295	24.2%	(2.0%)
Operating profit	14,105	6.1%	12,516	5.5%	12.7%
Nine Months Ended September 30
	2013		2012
	$	% of rev.	$	% of rev.	Change %
Total revenue	673,279		701,782		(4.1%)
Gross profit	160,024	23.8%	176,918	25.2%	(9.5%)
Operating profit	27,327	4.1%	55,502	7.9%	(50.8%)

The segment grew as a whole during the third quarter with revenue up 1.2% and an operating profit increase of 12.7% compared to the third quarter a year ago. Quarter-over-quarter, operating profit grew 283.2% to US$14.1 million from US$3.7 million. This progress was aided by the August 22^nd acquisition of a 70% interest in Caloi, Brazil's largest bicycle brand. Organic revenue decreased by approximately 6% in the quarter as well as year-to-date due to the spring's poor weather and continued industry discounting on 2013 models.

Despite the global decrease in the bicycle market versus 2012, some market indicators are pointing to stabilization in the bicycle market in the months ahead. Cannondale Sports Group sales rebounded slightly in the quarter due to new model year introductions. Sales at Pacific Cycle were affected by a timing shift that will move some shipments into the fourth quarter. The segment's cost containment program which began during the last quarter is on track.

At Eurobike, the world's largest bicycle industry trade show, held in August, Cannondale, GT, and SUGOI displayed a range of products that were met with very favorable feedback. One of the most notable new products was the Cannondale Tramount, the first E-Mountain bike in the successful Cannondale E-series. The GT Sensor won a Eurobike Gold award in the mountain bike category.

Home Furnishings Segment

Third Quarters Ended September 30
	2013		2012
	$	% of rev.	$	% of rev.	Change %
Total revenue	136,724		135,216		1.1%
Gross profit	15,528	11.4%	15,184	11.2%	2.3%
Operating profit	5,839	4.3%	5,813	4.3%	0.4%
Nine Months Ended September 30
	2013		2012
	$	% of rev.	$	% of rev.	Change %
Total revenue	391,008		392,918		(0.5%)
Gross profit	50,753	13.0%	47,488	12.1%	6.9%
Operating profit	20,988	5.4%	18,298	4.7%	14.7%

The revenue increase for the quarter resulted predominantly from on-line sales which grew significantly versus the prior year, compensating for a slight decrease in sales to brick and mortar stores. The segment's drop ship vendor program continued to drive the significant growth in on-line sales. The number of products offered on-line continues to grow and Dorel's investment in technology specifically designed for this channel has begun to pay significant dividends. Sales of mattresses, futons and bunk beds continued to do very well.

While input costs were stable versus last year, overhead cost control, a more profitable sales mix and a more favorable rate of exchange on the Canadian dollar resulted in an improvement in gross profit.

Other
Cash flow provided by operating activities year-to-date doubled to US$107.5 million compared to US$53.8 million last year, mainly due to the net change in balances related to operations which positively impacted the cash flow provided by operating activities, offset partially by the negative impact of the lower net income.

The third quarter tax rate was a recovery of 8.6% and a year-to-date expense of 9.8%. This compares to expenses of 18.0% for the quarter and 16.1% year-to-date in 2012. The main causes of the variations are changes in the jurisdictions in which Dorel generated its income and the recognition of a tax benefit pertaining to an adjustment of tax balances following a foreign reorganization. The Company has revised its full year forecast and now expects its annual tax rate to be between 12% and 17%.

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 4, 2013 to shareholders of record as at the close of business on November 20, 2013.

Outlook
"As expected, Recreational/Leisure rebounded from a disappointing second quarter, and with the contribution of Caloi, exceeded prior year results in the third quarter. We expect the same in the fourth quarter and earnings for the fourth quarter should exceed prior year. However, the independent bike dealers channel is being cautious on pre-season inventory purchases given their experience with the poor spring 2013 weather. Juvenile participated in successful trade shows in the fall in both Europe and the U.S. and many of our new products were well received. Our Juvenile Latin American business remains on track for improved earnings there this year. Due to challenges in several markets, we have lowered our expectations for the segment from our previous outlook, and will not exceed 2012 full year earnings. In Home Furnishings, we expect that the segment's solid performance will continue, though we have tempered our full year expectations somewhat from our prior outlook," commented Mr. Schwartz.

"We are not satisfied with these results and we are actively working on many fronts to improve the business and its value for our shareholders. We have demonstrated this with our Caloi acquisition, allowing us to enter new profitable markets in our Recreational/Leisure segment. Despite these issues, it is anticipated that the operating profit for the fourth quarter will substantially be higher than the third quarter and will set the stage for an improved 2014," concluded Mr. Schwartz.

Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, November 7, 2013 at 11:00 A.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 70886443 on your phone. This recording will be available on Thursday, November 7, 2013 as of 3:00 P.M. until 11:59 P.M. on Thursday, November 14, 2013.

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. 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, Caloi, 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$2.6 billion and employs 6,300 people in facilities located in twenty-four countries worldwide.

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

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

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

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

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
ALL FIGURES IN THOUSANDS OF US $
		as at			as at
		September 30, 2013			December 30, 2012
		(unaudited)			(unaudited)
					Restated
ASSETS
CURRENT ASSETS
	Cash and cash equivalents	$	36,995		$	38,311
	Trade and other receivables		478,078			443,020
	Inventories		538,712			501,652
	Other financial assets		340			287
	Income taxes receivable		8,666			17,273
	Prepaid expenses		24,567			19,813
			1,087,358			1,020,356
NON-CURRENT ASSETS
	Property, plant and equipment		180,343			157,127
	Intangible assets		513,353			423,057
	Goodwill		624,455			578,352
	Other financial assets		1,108			796
	Deferred tax assets		36,013			22,555
	Other assets		5,780			1,625
			1,361,052			1,183,512
		$	2,448,410		$	2,203,868
LIABILITIES
CURRENT LIABILITIES
	Bank indebtedness	$	73,570		$	11,476
	Trade and other payables		370,344			337,451
	Other financial liabilities		2,467			4,236
	Income taxes payable		6,529			2,856
	Long-term debt		19,443			13,520
	Provisions		40,438			33,769
			512,791			403,308
NON-CURRENT LIABILITIES
	Long-term debt		347,286			317,970
	Net pension and post-retirement defined benefit liabilities		35,484			35,091
	Deferred tax liabilities		100,244			87,922
	Provisions		2,049			1,969
	Other financial liabilities		101,715			43,600
	Other long-term liabilities		9,096			5,895
			595,874			492,447
EQUITY
Share capital			190,056			180,856
Contributed surplus			26,914			27,192
Accumulated other comprehensive income			62,693			57,619
Retained earnings			1,060,082			1,042,446
			1,339,745			1,308,113
		$	2,448,410		$	2,203,868

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, 2013			September 30, 2012			September 30, 2013			September 30, 2012
		(unaudited)			(unaudited)			(unaudited)			(unaudited)
											Restated
Sales		$	604,323		$	610,717		$	1,791,435		$	1,858,766
Licensing and commission income			2,975			2,578			10,480			9,340
TOTAL REVENUE			607,298			613,295			1,801,915			1,868,106
Cost of sales			472,674			473,736			1,382,960			1,431,220
GROSS PROFIT			134,624			139,559			418,955			436,886
Selling expenses			54,809			55,577			172,581			164,875
General and administrative expenses			56,685			48,418			156,813			143,041
Research and development expenses			7,381			7,293			22,280			20,863
OPERATING PROFIT			15,749			28,271			67,281			108,107
Finance expenses			5,524			3,895			15,591			13,506
INCOME BEFORE INCOME TAXES			10,225			24,376			51,690			94,601
Income taxes expense			(880)			4,390			5,045			15,211
NET INCOME		$	11,105		$	19,986		$	46,645		$	79,390
EARNINGS PER SHARE
	Basic		$0.35			$0.64			$1.47			$2.50
	Diluted		$0.34			$0.63			$1.45			$2.48
SHARES OUTSTANDING
	Basic - weighted average		31,877,463			31,387,163			31,802,843			31,733,936
	Diluted - weighted average		32,207,439			31,878,391			32,169,642			32,041,423

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
	Third Quarters Ended						Nine Months Ended
	September 30, 2013			September 30, 2012			September 30, 2013			September 30, 2012
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
				Restated						Restated
NET INCOME	$	11,105		$	19,986		$	46,645		$	79,390
OTHER COMPREHENSIVE INCOME (LOSS):
Items that are or may be reclassified subsequently to net income:
Cumulative translation account:
Net change in unrealized foreign currency gains (losses) on translation of net investments in foreign operations, net of tax of nil		24,712			10,105			5,363			140
Net changes in cash flow hedges:
Net change in unrealized gains (losses) on derivatives designated as cash flow hedges		(3,507)			217			317			1,121
Reclassification to income		246			236			749			731
Reclassification to the related non-financial asset		(300)			(2,951)			(1,058)			(8,017)
Deferred income taxes		920			651			(291)			1,571
		(2,641)			(1,847)			(283)			(4,594)
Items that will not be reclassified to net income:
Defined benefit plans:
Remeasurements of the net pension and post-retirement benefit liabilities		(12)			(16)			(8)			793
Deferred income taxes		3			4			2			(355)
		(9)			(12)			(6)			438
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)		22,062			8,246			5,074			(4,016)
TOTAL COMPREHENSIVE INCOME	$	33,167		$	28,232		$	51,719		$	75,374

 

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
		Share Capital		Contributed Surplus		Cumulative Translation Account		Cash Flow Hedges		Defined Benefit Plans		Retained Earnings		Total Equity
		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Balance as at December 30, 2011, as previously reported		$	174,782	$	26,445	$	52,760	$	6,082	$	-	$	969,586	$	1,229,655
Impact of change in accounting policy			-		-		-		-		(6,444)		6,520		76
Balance as at December 30, 2011, as restated		$	174,782	$	26,445	$	52,760	$	6,082	$	(6,444)	$	976,106	$	1,229,731
Total comprehensive income:
	Net income		-		-		-		-		-		79,390		79,390
	Other comprehensive income (loss)		-		-		140		(4,594)		438		-		(4,016)
		$	-	$	-	$	140	$	(4,594)	$	438	$	79,390	$	75,374
	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	$	52,900	$	1,488	$	(6,006)	$	1,022,831	$	1,275,250
Balance as at December 30, 2012, as previously reported		$	180,856	$	27,192	$	66,388	$	(1,036)	$	-	$	1,034,298	$	1,307,698
Impact of change in accounting policy			-		-		3		-		(7,736)		8,148		415
Balance as at December 30, 2012, as restated		$	180,856	$	27,192	$	66,391	$	(1,036)	$	(7,736)	$	1,042,446	$	1,308,113
Total comprehensive income:
	Net income		-		-		-		-		-		46,645		46,645
	Other comprehensive income (loss)		-		-		5,363		(283)		(6)		-		5,074
		$	-	$	-	$	5,363	$	(283)	$	(6)	$	46,645	$	51,719
	Issued under stock option plan		7,281		-		-		-		-		-		7,281
	Reclassification from contributed surplus due to exercise of stock options		1,760		(1,760)		-		-		-		-		-
	Reclassification from contributed surplus due to settlement of deferred share units		227		(347)		-		-		-		-		(120)
	Repurchase and cancellation of shares		(68)		-		-		-		-		-		(68)
	Premium paid on share repurchase		-		-		-		-		-		(253)		(253)
	Share-based payments		-		1,686		-		-		-		-		1,686
	Dividends on common shares		-		-		-		-		-		(28,613)		(28,613)
	Dividends on deferred share units		-		143		-		-		-		(143)		-
Balance as at September 30, 2013		$	190,056	$	26,914	$	71,754	$	(1,319)	$	(7,742)	$	1,060,082	$	1,339,745

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
		Third Quarters Ended				Nine Months Ended
		September 30, 2013		September 30, 2012		September 30, 2013		September 30, 2012
		(unaudited)		(unaudited)		(unaudited)		(unaudited)
								Restated
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net income		$ 11,105		$ 19,986		$ 46,645		$ 79,390
Items not involving cash:
	Depreciation and amortization	13,782		13,327		40,862		39,321
	Amortization of deferred financing costs	115		89		305		320
	Accretion expense on contingent consideration and put option liabilities	1,080		649		2,252		2,108
	Change of assumptions on contingent consideration and put option liabilities	-		(457)		-		(1,430)
	Unrealized (gains) losses due to foreign exchange exposure on contingent consideration and put option liabilities	3,457		1,249		1,482		1,606
	Other finance expenses	4,329		3,157		13,034		11,078
	Income taxes expense	(880)		4,390		5,045		15,211
	Share-based payments	305		480		1,381		1,708
	Defined benefit pension and post-retirement costs	727		716		2,219		2,415
	Loss (gain) on disposal of property, plant and equipment	61		4		(157)		(76)
		34,081		43,590		113,068		151,651
Net changes in balances related to operations:
	Trade and other receivables	7,551		17,083		3,572		(33,434)
	Inventories	10,989		(19,548)		(2,323)		(76,832)
	Other financial assets	2,872		(146)		2,896		(978)
	Prepaid expenses	5,073		1,607		(4,479)		(2,470)
	Other assets	(1,317)		-		(2,610)		-
	Trade and other payables	(2,624)		(45,577)		2,776		26,019
	Net pension and post-retirement defined benefit liabilities	(328)		(717)		(2,061)		(2,472)
	Provisions, other financial liabilities and other long-term liabilities	7,645		396		4,944		(250)
		29,861		(46,902)		2,715		(90,417)
	Income taxes paid	(2,186)		(3,365)		(11,795)		(13,213)
	Income taxes received	1,929		9,686		11,820		15,255
	Interest paid	(494)		(2,059)		(8,707)		(10,403)
	Interest received	(109)		313		387		885
CASH PROVIDED BY OPERATING ACTIVITIES		63,082		1,263		107,488		53,758
FINANCING ACTIVITIES
	Bank indebtedness	12,770		(10,494)		18,375		(9,381)
	Increase of long-term debt	5,796		43,883		25,676		62,614
	Repayments of long-term debt	-		(16,500)		(13,007)		(16,500)
	Repayments of contingent consideration and put option liabilities	-		(6,804)		(1,995)		(6,972)
	Financing costs	(321)		-		(539)		(192)
	Share repurchase	(321)		(863)		(321)		(17,812)
	Issuance of share capital	805		3,873		6,425		4,807
	Dividends on common shares	(9,561)		(9,417)		(28,613)		(18,986)
	CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	9,168		3,678		6,001		(2,422)
INVESTING ACTIVITIES
	Acquisition of businesses	(71,924)		(10,270)		(71,924)		(14,667)
	Additions to property, plant and equipment	(11,949)		(5,876)		(29,479)		(20,577)
	Disposals of property, plant and equipment	57		15		345		150
	Additions to intangible assets	(4,933)		(4,159)		(15,810)		(14,593)
CASH USED IN INVESTING ACTIVITIES		(88,749)		(20,290)		(116,868)		(49,687)
	Effect of foreign currency exchange rate changes on cash and cash equivalents	1,077		2,161		2,063		493
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(15,422)		(13,188)		(1,316)		2,142
Cash and cash equivalents, beginning of period		52,417		45,094		38,311		29,764
CASH AND CASH EQUIVALENTS, END OF PERIOD		$ 36,995		$ 31,906		$ 36,995		$ 31,906

 

DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
THIRD QUARTERS ENDED SEPTEMBER 30
ALL FIGURES IN THOUSANDS OF US $
		Total				Juvenile				Recreational / Leisure				Home Furnishings
		2013		2012		2013		2012		2013		2012		2013		2012
		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Total revenue		$	607,298	$	613,295	$	238,983	$	249,126	$	231,591	$	228,953	$	136,724	$	135,216
Cost of sales			472,674		473,736		174,072		180,046		177,406		173,658		121,196		120,032
Gross profit			134,624		139,559		64,911		69,080		54,185		55,295		15,528		15,184
Selling expenses			54,225		55,038		27,295		26,149		23,109		24,569		3,821		4,320
General and administrative expenses			48,047		42,010		27,570		21,046		15,572		16,647		4,905		4,317
Research and development expenses			7,381		7,293		5,019		4,996		1,399		1,563		963		734
Operating profit			24,971		35,218	$	5,027	$	16,889	$	14,105	$	12,516	$	5,839	$	5,813
Finance expenses			5,524		3,895
Corporate expenses			9,222		6,947
Income taxes			(880)		4,390
Net income		$	11,105	$	19,986
Earnings per Share
	Basic	$	0.35	$	0.64
	Diluted	$	0.34	$	0.63
Depreciation and amortization included in operating profit		$	13,739	$	13,285	$	9,873	$	9,707	$	2,781	$	2,437	$	1,085	$	1,141
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
NINE MONTHS ENDED SEPTEMBER 30
ALL FIGURES IN THOUSANDS OF US $
		Total				Juvenile				Recreational / Leisure				Home Furnishings
		2013		2012		2013		2012		2013		2012		2013		2012
		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Total revenue		$	1,801,915	$	1,868,106	$	737,628	$	773,406	$	673,279	$	701,782	$	391,008	$	392,918
Cost of sales			1,382,960		1,431,220		529,450		560,926		513,255		524,864		340,255		345,430
Gross Profit			418,955		436,886		208,178		212,480		160,024		176,918		50,753		47,488
Selling expenses			170,752		163,143		82,112		77,425		76,866		72,561		11,774		13,157
General and administrative expenses			138,838		124,651		72,415		65,916		51,137		44,973		15,286		13,762
Research and development expenses			22,280		20,863		14,881		14,710		4,694		3,882		2,705		2,271
Operating profit			87,085		128,229	$	38,770	$	54,429	$	27,327	$	55,502	$	20,988	$	18,298
Finance expenses			15,591		13,506
Corporate expenses			19,804		20,122
Income taxes			5,045		15,211
Net income		$	46,645	$	79,390
Earnings per Share
	Basic	$	1.47	$	2.50
	Diluted	$	1.45	$	2.48
Depreciation and amortization included in operating profit		$	40,733	$	39,198	$	29,689	$	28,941	$	7,817	$	6,734	$	3,227	$	3,523

 

 

SOURCE: Dorel Industries Inc.

MaisonBrison Communications
Rick Leckner
[phone]

Dorel Industries Inc.
Jeffrey Schwartz
[phone]