Dorel reports solid second quarter 2012

• Company increases quarterly dividend by 100%
  
• Net income increases 32% despite negative currency trend
  
• Juvenile business improving

EXCHANGES
TSX: DII.B, DII.A

MONTREAL, Aug. 9, 2012 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2012. Total revenue for the period was US$633.7 million, up 2.4% from US$619.0 million for the same quarter last year. Net income increased by 32.0% to US$30.3 million or US$0.95 per diluted share compared with US$23.0 million or US$0.70 per diluted share for the corresponding quarter of 2011.

Year-to-date revenue rose 2.3% to US$1.25 billion from to US$1.23 billion last year with net income for the six months increasing by 9.9% to US$59.5 million or US$1.85 per diluted share. This compares to net income of US$54.2 million or US$1.65 per diluted share for the first half of 2011.

The Board of Directors of Dorel has declared an increase in the Company's quarterly dividend to US$0.30 from US$0.15 on the Class A Multiple Voting Shares, Class B Subordinate Voting Shares and Deferred Share Units (DSU) of the Company. The first increased dividend amount of US$0.30 per share and DSU will be payable on September 6^th, 2012 to shareholders of record at the close of business on August 23^rd, 2012. The dividend policy was originally instituted in March 2007. Shareholders will now receive a total of US$1.20 per share per annum.

"Dorel has a proven track record of earnings and cash flow. We are optimistic about our long-term future earnings and are confident in our ability to sustain an increased dividend, thereby enhancing total return to our shareholders," stated Dorel President and CEO Martin Schwartz.

"Dorel performed well in our various business segments, despite a stubborn and unstable economy in the majority of our geographic markets.  We have maintained the positive momentum established in the final quarter of 2011 through a combination of strong marketing and judicious cost containment.

"Operating profit in the Juvenile segment grew 15% over the same quarter a year ago, despite a strengthening U.S. dollar which reduced earnings by approximately US$3.5 million in the quarter compared to the prior year.  Dorel Juvenile Group (DJG) USA improved as the tactical plan put in place last year has started to bring the needed results. Europe as a whole is very challenging, yet Dorel Europe maintained its profitability with solid results in Northern Europe and the positive contribution of the newly acquired Dorel Polska, based in Poland.  Another positive is Dorel Chile which saw growth in both its wholesale and retail businesses.

"Recreational/Leisure's top line grew once again, though it was tempered by adverse foreign exchange rates.  Profits in the quarter were flat as the negative impact of currency reduced earnings by approximately US$2.5 million.  Intense branding of the Cannondale line continues to drive results.  The Liquigas Cannondale Pro-Cycling Team has performed well this year with various victories.  In the recently completed Tour de France, Peter Sagan won the prestigious green jersey as well as three stages in the overall tour and Vincenzo Nibali placed third overall.  We are pleased with the sponsorship of the team and intend to maintain Dorel's commitment to the promotion of our brands.  As well, we continue to invest in R&D, driving expansion and distribution across the globe. Operating profit for the quarter grew in Home Furnishings and Internet sales were up considerably," commented Mr. Schwartz.

Summary of Financial Highlights
Second Quarters Ended June 30
All figures in thousands of US $, except per share amounts
		2012	2011	Change %
Total revenue		633,711	619,010	2.4%
Net income		30,345	22,993	32.0%
	Per share - basic	0.95	0.70	35.7%
	Per share - diluted	0.95	0.70	35.7%
Average number of shares outstanding - diluted weighted average		32,046,443	32,828,089
Summary of Financial Highlights
Six Months ended June 30
All figures in thousands of US $, except per share amounts
		2012	2011	Change %
Total revenue		1,254,811	1,226,793	2.3%
Net income		59,508	54,157	9.9%
	Per share - basic	1.87	1.66	12.7%
	Per share - diluted	1.85	1.65	12.1%
Average number of shares outstanding - diluted weighted average		32,080,033	32,862,173

Juvenile Segment

Second Quarters Ended June 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	254,781		243,965		4.4%
Gross profit	69,391	27.2%	61,736	25.3%	12.4%
Operating profit	17,118	6.7%	14,855	6.1%	15.2%
Six Months ended June 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	524,280		513,585		2.1%
Gross profit	143,758	27.4%	133,356	26.0%	7.8%
Operating profit	37,783	7.2%	38,527	7.5%	(1.9%)

 

After adjusting for the impact of varying exchange rates and new businesses acquired, the second quarter organic revenue increase was approximately 1%, reversing a trend of declining organic sales growth.  Year-to-date, organic revenues declined by approximately 2%.

For the quarter, the largest factor in the earnings improvement was in operating profit at Dorel Juvenile Group (DJG) USA where sales increased by approximately 5% and gross margins benefitted from more stable costs. Dorel Chile also contributed to the profit increase.  The recent weakening of most currencies against the US dollar had a negative impact on earnings for the quarter of approximately US$3.5 million versus last year.  As such, the earnings increase would have been almost 40% if currencies were consistent year-over-year. At Dorel Europe, the Southern markets continue to endure difficult economic conditions, yet the division as a whole delivered improved earnings when expressed in Euros.

Recreational/Leisure Segment

Second Quarters Ended June 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	251,911		249,094		1.1%
Gross profit	63,183	25.1%	60,592	24.3%	4.3%
Operating profit	21,606	8.6%	21,274	8.5%	1.6%
Six Months ended June 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	472,829		449,521		5.2%
Gross profit	121,623	25.7%	111,587	24.8%	9.0%
Operating profit	42,986	9.1%	39,045	8.7%	10.1%

 

Organic sales growth, excluding the impact of foreign exchange variations on the segment's non-US based businesses was approximately 7% year-to-date. The increases are in the IBD channel in most of the segment's markets and are being driven by improved sales in several bike categories.  The decline in the value of the Euro versus the US dollar negatively impacted revenues by approximately 2% and as a result the reported revenue increase in the quarter was only 1.1%.  Sales in June were also lower as certain mass market customers reduced orders in an attempt to reduce their in-stock inventory levels.

Earnings were negatively impacted by the decline in the value of the Euro and certain other currencies against the US dollar. Specifically, compared to the prior year, Cycling Sports Group's (CSG) gross margin dollars were reduced by approximately US$2.5 million in the quarter. Approximately 50% of CSG's revenues are from markets outside of the United States and as such are affected by foreign currency more than the segment's mass market business which is mostly comprise of US-based customers. Progress continued to be made in returning to profitability at the segment's apparel division, which markets the SUGOI brand.

Home Furnishings Segment

Second Quarters Ended June 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	127,019		125,951		0.8%
Gross profit	16,574	13.0%	15,603	12.4%	6.2%
Operating profit	6,694	5.3%	6,267	5.0%	6.8%
Six Months ended June 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	257,702		263,687		(2.3%)
Gross profit	32,304	12.5%	32,789	12.4%	(1.5%)
Operating profit	12,485	4.8%	14,017	5.3%	(10.9%)

For the quarter, Home Furnishings revenues increased slightly versus the prior year as sales to the Internet sales channel offset declines in the segment's other major channels of distribution. Operating profit for the quarter increased versus both the prior year and this year's first quarter, as profitability was aided by a more stable cost environment.  Partially offsetting this was a less profitable sales mix at several of the segment's divisions.

Statements of Financial Position and Cash flows

The key financial position components of working capital, accounts receivable, inventory and accounts payable, all increased significantly compared to December 30, 2011 levels. However, this is in line with business requirements. Second quarter inventory increased to US$499.5 million, its highest level since last year's comparable period, to service shipments in the second half this year. Inventory is expected to return to levels similar to last year end by December 30, 2012. The higher inventory amount also explains the increase in accounts payable from US$323.6 million to US$391.7 million as certain purchases within the quarter remain to be paid.

For the first half of the year, cash flow provided by operating activities was US$52.5 million compared to US$39.4 million in 2011. Despite the changes to working capital, the net impact on cash flow was similar to the prior year.  Year-to-date investing activities totalled US$29.4 million versus US$24.8 million in 2011. As part of its Normal Course Issuer Bid, the Company disbursed US$16.9 million in the first six months, compared to US$2.6 million in the prior year. The Company also disbursed US$9.6 million year-to-date for dividends. These were the main factors in the first half US$3.6 million increase in debt, net of cash.

Outlook
"Pre-tax earnings for the second half this year are expected to be higher than last year, driven by advances in the Juvenile segment.  Specifically, significant progress in North America and a greater contribution from Latin America will ensure that we improve upon the disappointing third quarter in 2011. Recreational / Leisure remains on track to exceed last year's record earnings, whereas we expect Home Furnishings' operating profit to be slightly below last year's levels.  There was a significant tax recovery in last year's third quarter which will not re-occur this year. Our expectations for the 2012 tax rate remain in the range of 15% to 20%," commented Mr. Schwartz.

"While we expect input costs to remain relatively stable in the foreseeable future, exchange rates can be volatile and are difficult to predict. Our pre-tax income improvement expected for the balance of the year assumes exchange rates similar to those of today, but a further decline in currencies, especially the Euro, could negatively impact future earnings," concluded Mr. Schwartz.

Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, August 9, 2012 at 2:00 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 98095948# on your phone. This recording will be available on Thursday, August 9, 2012 as of 4:00 P.M. until 11:59 P.M. on Thursday, August 16, 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-two 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 June 30, 2012			as at December 30, 2011
		(unaudited)			(unaudited)
ASSETS
CURRENT ASSETS
	Cash and cash equivalents	$	45,094		$	29,764
	Trade and other receivables		451,728			403,664
	Inventories		499,482			442,409
	Other financial assets		6,008			9,867
	Income taxes receivable		13,292			17,811
	Prepaid expenses		25,357			21,858
			1,040,961			925,373
NON-CURRENT ASSETS
	Property, plant and equipment		156,212			158,363
	Intangible assets		407,578			411,171
	Goodwill		567,395			568,849
	Other financial assets		756			-
	Deferred tax assets		34,215			31,096
	Other assets		1,747			1,717
			1,167,903			1,171,196
		$	2,208,864		$	2,096,569
LIABILITIES
CURRENT LIABILITIES
	Bank indebtedness	$	20,636		$	20,130
	Trade and other payables		391,735			323,552
	Other financial liabilities		12,245			13,065
	Income taxes payable		4,441			2,315
	Long-term debt		17,033			17,279
	Provisions		35,922			37,096
			482,012			413,437
NON-CURRENT LIABILITIES
	Long-term debt		316,785			298,160
	Pension and post-retirement benefit obligations		34,719			35,258
	Deferred tax liabilities		82,011			79,702
	Provisions		1,867			1,876
	Other financial liabilites		33,701			33,141
	Other long-term liabilities		5,430			5,340
			474,513			453,477
EQUITY
SHARE CAPITAL			172,039			174,782
CONTRIBUTED SURPLUS			27,606			26,445
ACCUMULATED OTHER COMPREHENSIVE INCOME			46,134			58,842
RETAINED EARNINGS			1,006,560			969,586
			1,252,339			1,229,655
		$	2,208,864		$	2,096,569

 

 

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENTS
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
		Second Quarters Ended						Six Months Ended
		June  30, 2012			June 30, 2011			June  30, 2012			June 30, 2011
		(unaudited)			(unaudited)			(unaudited)			(unaudited)
Sales		$	630,898		$	615,710		$	1,248,049		$	1,220,127
Licensing and commission income			2,813			3,300			6,762			6,666
TOTAL REVENUE			633,711			619,010			1,254,811			1,226,793
Cost of sales			484,563			481,079			957,126			949,061
GROSS PROFIT			149,148			137,931			297,685			277,732
Selling expenses			57,493			48,019			109,298			92,462
General and administrative expenses			44,108			44,482			94,738			90,260
Research and development expenses			6,583			7,740			13,570			15,330
OPERATING PROFIT			40,964			37,690			80,079			79,680
Finance expenses			4,631			5,709			9,611			11,587
INCOME BEFORE INCOME TAXES			36,333			31,981			70,468			68,093
Income taxes expense			5,988			8,988			10,960			13,936
NET INCOME		$	30,345		$	22,993		$	59,508		$	54,157
EARNINGS PER SHARE
	Basic	$	0.95		$	0.70		$	1.87		$	1.66
	Diluted	$	0.95		$	0.70		$	1.85		$	1.65
SHARES OUTSTANDING
	Basic - weighted average		31,859,015			32,624,000			31,906,375			32,641,723
	Diluted - weighted average		32,046,443			32,828,089			32,080,033			32,862,173

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
	Second Quarters Ended						Six Months Ended
	June  30, 2012			June 30, 2011			June  30, 2012			June 30, 2011
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
NET INCOME	$	30,345		$	22,993		$	59,508		$	54,157
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		(24,727)			12,297			(9,961)			38,699
Net changes in cash flow hedges:
Net change in unrealized gains (losses) on derivatives designated as cash flow hedges		2,635			(3,132)			904			(7,993)
Reclassification to income		252			248			495			1,271
Reclassification to the related non-financial asset		(2,602)			3,119			(5,066)			3,781
Deferred income taxes		(151)			167			920			911
		134			402			(2,747)			(2,030)
Defined benefit plans:
Acturial gains (losses) on defined benefit plans		18			(36)			8			(122)
Deferred income taxes		(6)			(76)			(3)			(54)
		12			(112)			5			(176)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)		(24,581)			12,587			(12,703)			36,493
TOTAL COMPREHENSIVE INCOME	$	5,764		$	35,580		$	46,805		$	90,650

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		-		-		-		-			-		54,157		54,157
Total other comprehensive income (loss)		-		-		38,699		(2,030)			(176)		-		36,493
Issued under stock option plan		402		-		-		-			-		-		402
Reclassification from contributed surplus due to exercise of stock options		82		(82)		-		-			-		-		-
Repurchase and cancellation of shares		(531)		-		-		-			-		-		(531)
Premium paid on share repurchase		-		-		-		-			-		(2,026)		(2,026)
Share-based payments		-		1,614		-		-			-		-		1,614
Dividends on common shares		-		-		-		-			-		(9,780)		(9,780)
Dividends on deferred share units		-		34		-		-			-		(34)		-
Balance as at June 30, 2011	$	178,769	$	25,342	$	106,669	$	(3,062)			$ (2,488)	$	946,950	$	1,252,180
Balance as at December 30, 2011	$	174,782	$	26,445	$	52,760	$	6,082			$ (7,236)	$	976,822	$	1,229,655
Net income		-		-		-		-			-		59,508		59,508
Total other comprehensive income (loss)		-		-		(9,961)		(2,747)			5		-		(12,703)
Issued under stock option plan		1,055		-		-		-			-		-		1,055
Reclassification from contributed surplus due to exercise of stock options		223		(223)		-		-			-		-		-
Repurchase and cancellation of shares		(4,021)		-		-		-			-		-		(4,021)
Premium paid on share repurchase		-		-		-		-			-		(12,928)		(12,928)
Share-based payments		-		1,342		-		-			-		-		1,342
Dividends on common shares		-		-		-		-			-		(9,569)		(9,569)
Dividends on deferred share units		-		42		-		-			-		(42)		-
Balance as at June 30, 2012	$	172,039	$	27,606	$	42,799	$	3,335		$	(7,231)	$	1,013,791	$	1,252,339

DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
		Second Quarters Ended						Six Months Ended
		June  30, 2012			June 30, 2011			June  30, 2012			June 30, 2011
		(unaudited)			(unaudited)			(unaudited)			(unaudited)
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net income		$	30,345		$	22,993		$	59,508		$	54,157
Items not involving cash:
	Depreciation and amortization		12,965			14,428			25,994			27,612
	Amortization of deferred financing costs		90			277			231			646
	Accretion expense on contingent consideration and put option liabilities		544			556			1,459			1,087
	Change of assumptions on contingent consideration and put option liabilities		(973)			(973)			(973)			(973)
	Unrealized (gains)/losses due to foreign exchange exposure on contingent consideration and put option liabilities		(680)			193			357			(521)
	Other finance expenses		3,997			4,876			7,921			9,854
	Income taxes expense		5,988			8,988			10,960			13,936
	Share-based payments		642			584			1,228			1,395
	Pension and post-retirement defined benefit plans		722			834			1,456			1,692
	Gain on disposal of property, plant and equipment		(44)			(41)			(80)			(59)
			53,596			52,715			108,061			108,826
Net change in balances related to operations:
	Trade and other receivables		23,164			40,569			(50,517)			(63,088)
	Inventories		(66,384)			(6,726)			(57,284)			17,322
	Other financial assets		(212)			-			(832)			-
	Prepaid expenses		529			848			(4,077)			(1,536)
	Trade and other payables		52,655			(3,765)			71,596			9,460
	Pension and post-retirement benefit obligations		(554)			(787)			(1,755)			(2,099)
	Provisions, other financial liabilities and other long-term liabilities		1,091			(1,829)			(646)			(617)
			10,289			28,310			(43,515)			(40,558)
	Income taxes paid		(6,766)			(13,563)			(9,848)			(19,203)
	Income taxes received		4,736			386			5,569			490
	Interest paid		(6,694)			(6,933)			(8,344)			(10,110)
	Interest received		260			-			572			-
CASH PROVIDED BY OPERATING ACTIVITIES			55,421			60,915			52,495			39,445
FINANCING ACTIVITIES
	Bank indebtedness		(7,358)			(14,623)			1,113			(1,782)
	Increase of long-term debt		721			-			18,731			8,121
	Repayments of long-term debt		-			(26,017)			-			-
	Repayments of contingent consideration and put option liabilities		-			-			(168)			-
	Financing costs		(185)			(1)			(192)			(13)
	Share repurchase		(15,889)			(1,588)			(16,949)			(2,557)
	Issuance of share capital		245			220			934			402
	Dividends on common shares		(4,779)			(4,866)			(9,569)			(9,780)
	CASH USED IN FINANCING ACTIVITIES		(27,245)			(46,875)			(6,100)			(5,609)
INVESTING ACTIVITIES
	Acquisition of businesses		(1,501)			-			(4,397)			-
	Additions to property, plant and equipment		(8,138)			(8,414)			(14,701)			(15,061)
	Disposals of property, plant and equipment		85			73			135			110
	Additions to intangible assets		(4,116)			(5,209)			(10,434)			(9,812)
CASH USED IN INVESTING ACTIVITIES			(13,670)			(13,550)			(29,397)			(24,763)
	Effect of exchange rate changes on cash and cash equivalents		(1,811)			(605)			(1,668)			(243)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			12,695			(115)			15,330			8,830
Cash and cash equivalents, beginning of period			32,399			24,693			29,764			15,748
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	45,094		$	24,578		$	45,094		$	24,578

 

DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
SECOND QUARTERS ENDED JUNE 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		$	633,711	$	619,010	$	254,781	$	243,965	$	251,911	$	249,094	$	127,019	$	125,951
Cost of sales			484,563		481,079		185,390		182,229		188,728		188,502		110,445		110,348
Gross profit			149,148		137,931		69,391		61,736		63,183		60,592		16,574		15,603
Selling expenses			56,954		47,512		25,929		20,528		26,462		22,709		4,563		4,275
General and administrative expenses			40,193		40,283		21,551		20,133		14,073		15,803		4,569		4,347
Research and development expenses			6,583		7,740		4,793		6,220		1,042		806		748		714
Operating profit			45,418		42,396	$	17,118	$	14,855	$	21,606	$	21,274	$	6,694	$	6,267
Finance expenses			4,631		5,709
Corporate expenses			4,454		4,706
Income taxes			5,988		8,988
Net income		$	30,345	$	22,993
Earnings per Share
	Basic	$	0.95	$	0.70
	Diluted	$	0.95	$	0.70
Depreciation and amortization included in operating profit		$	12,969	$	14,372	$	9,539	$	10,533	$	2,243	$	2,364	$	1,187	$	1,475
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
SIX MONTHS ENDED JUNE 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		$	1,254,811	$	1,226,793	$	524,280	$	513,585	$	472,829	$	449,521	$	257,702	$	263,687
Cost of sales			957,126		949,061		380,522		380,229		351,206		337,934		225,398		230,898
Gross Profit			297,685		277,732		143,758		133,356		121,623		111,587		32,304		32,789
Selling expenses			108,105		91,391		51,276		41,255		47,992		41,676		8,837		8,460
General and administrative expenses			82,756		79,422		44,985		41,272		28,326		29,166		9,445		8,984
Research and development expenses			13,570		15,330		9,714		12,302		2,319		1,700		1,537		1,328
Operating profit			93,254		91,589	$	37,783	$	38,527	$	42,986	$	39,045	$	12,485	$	14,017
Finance expenses			9,611		11,587
Corporate expenses			13,175		11,909
Income taxes			10,960		13,936
Net income		$	59,508	$	54,157
Earnings per Share
	Basic	$	1.87	$	1.66
	Diluted	$	1.85	$	1.65
Depreciation and amortization included in operating profit		$	25,913	$	27,522	$	19,234	$	20,155	$	4,297	$	4,556	$	2,382	$	2,811

 

 

SOURCE: DOREL INDUSTRIES INC.

MaisonBrison Communications
Rick Leckner
[phone]

Dorel Industries Inc.
Jeffrey Schwartz
[phone]