News Column

Dorel Reports Second Quarter 2014

August 6, 2014

Recreational/Leisure segment posts strong quarter cementing recovery Lerado acquisition to position Dorel Juvenile for long-term growth

EXCHANGES

TSX: DII.B, DII.A

MONTREAL, Aug. 6, 2014 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2014. Total revenue for the quarter was US$655.8 million, up 9.2% from US$600.4 million recorded in the same period last year. Net income was US$15.2 million or US$0.47 per diluted share, an increase of 14.9% from US$13.2 million or US$0.41 per diluted share reported for the same period a year ago.  Revenue for the six months increased 9.1% to US$1.3 billion compared to US$1.2 billion last year. Net income reached US$40 million or US$1.24 per diluted share, compared to US$35.5 million or US$1.11 per diluted share in 2013.

"The momentum of the first quarter in the Recreational/Leisure segment carried into the second quarter as revenue grew by strong double digits and operating profit rose significantly," said Dorel President and CEO, Martin Schwartz. "Overall we are pleased with the earnings from operations for our three segments, however the costs related to the Caloi acquisition has resulted in our earnings to be lower than we hoped to see.

"Caloi's first half of the year performance was close to plan with a loss from operations at the segment level of US$0.8 million. Caloi was affected by the slowing economy in Brazil and consumers' focus on the month-long World Cup which shifted attention away from the bicycle business. Caloi is executing well and is growing its market share. We are expecting the bulk of the earnings to come in the fourth quarter as it is both the start of summer and Christmas in Brazil. Despite the softening Brazilian economy, we expect Caloi to grow versus last year and we are confident regarding its future contributions to the segment as we firmly believe this transaction will be a good long-term investment in Dorel's future."

The impact of Caloi decreased Dorel's earnings by US$10.3 million net of tax for the six months ended June 30, 2014 which is mainly comprised of the US$0.8 million loss from operations at the segment level, cash interest costs and US$6.0 million of non-cash charges including accretion interest and unrealized foreign exchange losses on put option liabilities.

"In Juvenile, results exceeded prior year, led by a strong performance at Dorel Juvenile Europe and continued sales growth at Dorel Juvenile Brazil. We are actively working on a plan to integrate the announced acquisition of the Lerado juvenile business which is expected to close before year-end. Lerado is one of the largest juvenile product manufacturers in China and will provide Dorel with our first-ever company-owned factories in Asia. We see this as an essential strategy to support and grow our Juvenile business.

"Home Furnishings' top line was flat with prior year as Internet sales continued their upward trend, offsetting the drop in brick and mortar revenue. As anticipated, operating profit for that segment decreased."



       
Summary of Financial Highlights
Second Quarters Ended June 30
All figures in thousands of US $, except per share amounts
  20142013Change %
Total revenue 655,831 600,449 9.2%
Net income 15,200 13,224 14.9%
  Per share - Basic 0.47 0.41 14.6%
  Per share - Diluted 0.47 0.41 14.6%
Average number of shares outstanding - Diluted weighted average 32,488,794 32,223,810  
       
       
Summary of Financial Highlights
Six Months Ended June 30
All figures in thousands of US $, except per share amounts
  20142013Change %
Total revenue 1,303,532 1,194,617 9.1%
Net income 40,000 35,540 12.5%
  Per share - Basic 1.25 1.12 11.6%
  Per share - Diluted 1.24 1.11 11.7%
Average number of shares outstanding - Diluted weighted average 32,384,207 32,152,285  


 



Juvenile Segment

           
Second Quarters Ended June 30
  20142013  
  $% of rev.$% of rev.Change %
Total revenue 251,322   243,412   3.2%
Gross profit 72,777 29.0% 68,761 28.2% 5.8%
Operating profit 16,163 6.4% 15,811 6.5% 2.2%
           
           
Six Months Ended June 30
  20142013  
  $% of rev.$% of rev.Change %
Total revenue 520,554   498,645   4.4%
Gross profit 149,191 28.7% 143,267 28.7% 4.1%
Operating profit 35,743 6.9% 33,743 6.8% 5.9%


 



Organic revenue was flat in the second quarter and has increased by approximately 1% year-to-date. Latin American organic growth was the exception, with an increase of approximately 10% for the quarter and 16% year-to-date.  However, upon conversion to the U.S. dollar, this growth was largely offset by a less favourable exchange rate.  The improvement in the segment's operating profit resulted primarily from Dorel Juvenile Europe due to slightly enhanced gross margins, lower operating costs and a stronger rate of conversion to the U.S. dollar. Conversely, operating profits in Latin America, Canada and Australia were impacted negatively due to a weakness in foreign exchange rates. The impact was most acute in Chile where average year-to-date exchange rates have declined by over 15%. For the first half, the operating profit increase has been driven by improved earnings at Dorel Juvenile USA and Dorel Juvenile Europe, partially offset by the currency challenges in the other markets.

Recreational/Leisure Segment

           
Second Quarters Ended June 30
  20142013  
  $% of rev.$% of rev.Change %
Total revenue 286,249   238,174   20.2%
Gross profit 67,348 23.5% 54,550 22.9% 23.5%
Operating profit 15,212 5.3% 3,681 1.5% 313.3%
           
           
Six Months Ended June 30
  20142013  
  $% of rev.$% of rev.Change %
Total revenue 526,597   441,688   19.2%
Gross profit 127,790 24.3% 105,839 24.0% 20.7%
Operating profit 31,523 6.0% 13,222 3.0% 138.4%


 

Organic revenue increased by approximately 11% in the quarter and 15% year-to-date as overseas markets in the independent bike dealers (IBD) channel as well as sales to the North American mass merchant distribution channel contributed to the growth. The management team is driving improvements and is focused on cost containment initiatives. The results were further aided by improved weather conditions versus last year and the continuing rebound in most global bike markets. Both the Cannondale Sports Group (CSG) and Pacific Cycle made solid headway.  CSG benefitted from global sales growth in most IBD markets, particularly in Europe and Japan, while better weather drove the improvement at Pacific Cycle at mass merchants. Restructuring costs of approximately US$1.7 million for the quarter and US$2.2 million year-to-date were recorded in 2014, compared with US$2.0 million for both the quarter and year-to-date periods of 2013. Remaining costs of approximately US$0.9 million are expected to be recorded in the second half of this year. As discussed above, the results of Caloi did not contribute to the quarter.

Sales of current model-year bicycles and the weakening of the U.S. dollar against its Euro counterpart helped boost the gross margins in the IBD channel in both the quarter and year-to-date. Gross profit in the mass market channel was tempered marginally due mainly to sales mix and was below the prior year's level in both the quarter and year-to-date.

Home Furnishings Segment

           
Second Quarters Ended June 30
  20142013  
  $% of rev.$% of rev.Change %
Total revenue 118,260   118,863   (0.5%)
Gross profit 15,812 13.4% 17,145 14.4% (7.8%)
Operating profit 5,254 4.4% 7,201 6.1% (27.0%)
           
           
Six Months Ended June 30
  20142013  
  $% of rev.$% of rev.Change %
Total revenue 256,381   254,284   0.8%
Gross profit 33,904 13.2% 35,225 13.9% (3.8%)
Operating profit 13,324 5.2% 15,149 6.0% (12.0%)


 



Sales to the segment's drop ship vendor program and on-line sales increased both for the quarter and year-to-date. These increases were offset for the quarter and partly offset for the year-to-date by declines in sales to brick-and-mortar stores. Dorel Home Products (DHP) and Cosco Home & Office again had a solid quarter while sales of ready-to-assemble (RTA) furniture products at Ameriwood and Altra negated some of these gains.

Other

The second quarter tax rate was 20.2% and year-to-date was 18.1%. This compares to 21.1% for the quarter and 14.3% year-to-date in 2013. The main causes of the variations year-over-year are changes in the jurisdictions in which the Company generated its income year-over-year and the increase in the fair value adjustments related to the put option liabilities which are non-deductible for tax purposes. For the full year the annual tax rate is expected to be between 15% and 20%. The Company has expensed approximately US$1.0 million dollars in costs related to acquisitions in the first half this year.

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, Deferred Share Units and cash-settled Performance Share Units. The dividend is payable on September 3, 2014 to shareholders of record as at the close of business on August 20, 2014.

Outlook

"As expected, the momentum of the first quarter continued in the second quarter in the Recreational/Leisure segment as operating profit rose from prior year. As we look to the second half, excluding the restructuring costs, we are anticipating a slight growth in operating profit for the third quarter and a significant growth in the fourth quarter versus previous year," said Mr. Schwartz.

"In the Juvenile segment, even after excluding the impact of the U.S. product liability settlement case in Q4 2013, we still expect double digit earnings growth in the second half of 2014. This excludes any impact on earnings related to the acquisition of the juvenile products business of the Lerado Group.

"In the Home Furnishings segment, we expect an improvement in this year's second half to make up the earnings shortfall from the second quarter, which was anticipated."

It is important to note that due to the seasonality of both Dorel's Recreational/Leisure and Juvenile divisions in Latin America, approximately 90% of the operating profit of these businesses will be earned in the second half this year, primarily in the fourth quarter whilst the interest costs and the non-cash charges related to the put option liability are expensed throughout the year.

"Senior management is focused on investments which will provide Dorel with growth for the long-term. The Caloi acquisition and the Lerado transaction are two such examples. As well, while aware of a cooling of the Brazilian economy in the short-term we remain bullish on Latin America in general and have set in motion initial steps to develop a distribution base in Mexico," concluded Mr. Schwartz.

Conference Call

Dorel Industries Inc. will hold a conference call to discuss these results today, August 6, 2014 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 76948662 on your phone. This recording will be available on Wednesday, August 6, 2014 as of 4:00 P.M. until 11:59 P.M. on Wednesday, August 13, 2014.

The condensed consolidated interim financial statements as of June 30, 2014 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 global juvenile brands Safety 1st, Quinny, Maxi-Cosi, BÉbÉ Confort and Tiny Love, complemented by regional brands such as Cosco and Infanti. In Recreational/Leisure, brands include Cannondale, Schwinn, GT, Mongoose, Caloi, IronHorse and SUGOI.  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 approximately 6,400 people in facilities located in 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. 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
  June 30,

2014
  December 30,

2013
  (unaudited)   (unaudited)
           
           
ASSETS          
CURRENT ASSETS          
  Cash and cash equivalents $ 40,858   $ 40,074
  Trade and other receivables   474,776     456,465
  Inventories   593,094     555,567
  Other financial assets   780     231
  Income taxes receivable   14,296     11,626
  Prepaid expenses   32,694     26,200
    1,156,498     1,090,163
  Assets held for sale   1,308     -
    1,157,806     1,090,163
           
NON-CURRENT ASSETS          
  Property, plant and equipment   179,613     181,299
  Intangible assets   557,117     500,381
  Goodwill   632,851     637,084
  Other financial assets   1,036     620
  Deferred tax assets   20,150     24,356
  Other assets   5,562     6,060
    1,396,329     1,349,800
  $ 2,554,135   $ 2,439,963
           
LIABILITIES          
CURRENT LIABILITIES          
  Bank indebtedness $ 38,740   $ 72,546
  Trade and other payables   389,116     379,311
  Other financial liabilities   3,540     3,231
  Income taxes payable   4,147     7,075
  Long-term debt   61,727     344,374
  Provisions   37,318     44,570
    534,588     851,107
           
NON-CURRENT LIABILITIES          
  Long-term debt   417,753     13,183
  Net pension and post-retirement defined benefit liabilities   31,172     31,701
  Deferred tax liabilities   94,723     87,171
  Provisions   2,000     1,993
  Put option liabilities   81,646     92,570
  Other financial liabilities   2,203     2,727
  Other long-term liabilities   14,162     12,751
    643,659     242,096
           
EQUITY          
Share capital   199,358     190,458
Contributed surplus   25,679     26,994
Accumulated other comprehensive income   68,730     67,824
Retained earnings   1,082,121     1,061,484
    1,375,888     1,346,760
  $ 2,554,135   $ 2,439,963







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, 2014   June 30, 2013   June 30, 2014   June 30, 2013
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
               
               
Sales $ 653,415   $ 598,046   $ 1,296,573   $ 1,187,112
Licensing and commission income   2,416     2,403     6,959     7,505
TOTAL REVENUE   655,831     600,449     1,303,532     1,194,617
                       
Cost of sales (1)   499,894     459,993     992,647     910,286
GROSS PROFIT   155,937     140,456     310,885     284,331
                       
                       
Selling expenses   61,964     62,412     118,662     117,772
General and administrative expenses    56,544     46,044     106,675     98,178
Research and development expenses   6,945     7,696     15,696     14,899
Restructuring costs (1)   1,212     1,950     1,483     1,950
OPERATING PROFIT   29,272     22,354     68,369     51,532
                       
Finance expenses   10,231     5,585     19,510     10,067
INCOME BEFORE INCOME TAXES   19,041     16,769     48,859     41,465
                       
Income taxes expense   3,841     3,545     8,859     5,925
NET INCOME $ 15,200   $ 13,224   $ 40,000   $ 35,540
                       
EARNINGS PER SHARE                      
  Basic $ 0.47   $ 0.41   $ 1.25   $ 1.12
  Diluted $ 0.47   $ 0.41   $ 1.24   $ 1.11
                       
SHARES OUTSTANDING                      
  Basic - weighted average   32,297,064     31,865,525     32,117,648     31,765,123
  Diluted - weighted average   32,488,794     32,223,810     32,384,207     32,152,285
                       
                       
(1) Restructuring costs charged to:                      
Cost of sales $ 491   $ -   $ 671   $ -
Expenses   1,212     1,950     1,483     1,950
  $ 1,703   $ 1,950   $ 2,154   $ 1,950



DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
               
  Second Quarters Ended   Six Months Ended
  June 30, 2014   June 30, 2013   June 30, 2014   June 30, 2013
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
               
               
NET INCOME $ 15,200   $ 13,224   $ 40,000   $ 35,540
                       
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   441     (3,711)     109     (19,349)
                       
                       
Net changes in cash flow hedges:                      
Net change in unrealized gains (losses) on derivatives designated as cash flow hedges   (1,070)     (294)     (939)     3,824
Reclassification to income   190     251     480     503
Reclassification to the related non-financial asset   993     (628)     1,477     (758)
Deferred income taxes   71     41     (227)     (1,211)
    184     (630)     791     2,358
                       
Items that will not be reclassified to net income:                      
Defined benefit plans:                      
Remeasurements of the net pension and post-retirement defined benefit liabilities   9     (4)     9     4
Deferred income taxes   (3)     1     (3)     (1)
    6     (3)     6     3
                       
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)   631     (4,344)     906     (16,988)
                       
TOTAL COMPREHENSIVE INCOME $ 15,831   $ 8,880   $ 40,906   $ 18,552




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, 2012 $ 180,856   $ 27,192   $ 66,391   $ (1,036)   $ (7,736)   $ 1,042,446   $ 1,308,113
                                         
Total comprehensive income:                                        
  Net income   -     -     -     -     -     35,540     35,540
  Other comprehensive income (loss)   -     -     (19,349)     2,358     3     -     (16,988)
  $ -   $ -   $ (19,349)   $ 2,358   $ 3   $ 35,540   $ 18,552
                                         
Issued under stock option plan   6,464     -     -     -     -     -     6,464
Reclassification from contributed surplus due to exercise of stock options   1,377     (1,377)     -     -     -     -     -
Reclassification from contributed surplus due to settlement of deferred share units   227     (347)     -     -     -     -     (120)
Share-based payments   -     1,381     -     -     -     -     1,381
Dividends on common shares   -         -     -     -     (19,052)     (19,052)
Dividends on deferred share units   -     93     -     -     -     (93)     -
                                         
Balance as at June 30, 2013 $ 188,924   $ 26,942   $ 47,042   $ 1,322   $ (7,733)   $ 1,058,841   $ 1,315,338
                                         
Balance as at December 30, 2013 $ 190,458   $ 26,994   $ 75,378   $ (2,154)   $ (5,400)   $ 1,061,484   $ 1,346,760
                                         
Total comprehensive income:                                        
  Net income   -     -     -     -     -     40,000     40,000
  Other comprehensive income   -     -     109     791     6     -     906
  $ -   $ -   $ 109   $ 791   $ 6   $ 40,000   $ 40,906
                                         
Issued under stock option plan   6,916     -     -     -     -     -     6,916
Reclassification from contributed surplus due to exercise of stock options   1,829     (1,829)     -     -     -     -    
Reclassification from contributed surplus due to settlement of deferred share units   155     (233)     -     -     -     -     (78)
Share-based payments   -     650     -     -     -     -     650
Dividends on common shares   -     -     -     -     -     (19,266)     (19,266)
Dividends on deferred share units   -     97     -     -     -     (97)     -
                                         
Balance as at June 30, 2014 $ 199,358   $ 25,679   $ 75,487   $ (1,363)   $ (5,394)   $ 1,082,121   $ 1,375,888







DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
       
  Second Quarters Ended   Six Months Ended
  June 30, 2014   June 30, 2013   June 30, 2014   June 30, 2013
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
                       
CASH PROVIDED BY (USED IN):                      
                       
OPERATING ACTIVITIES                      
Net income $ 15,200   $ 13,224   $ 40,000   $ 35,540
Items not involving cash:                      
  Depreciation and amortization   14,692     13,957     29,712     27,080
  Amortization of deferred financing costs   206     98     383     190
  Accretion expense on put option liabilities   1,452     578     3,797     1,172
  Unrealized losses (gains) due to foreign exchange exposure on put option liabilities   969     (2,169)     2,654     (1,975)
  Unrealized losses (gains) arising on financial assets and financial liabilities classified as held for trading   538     -     538     -
  Other finance expenses   8,573     4,909     15,330     8,705
  Restructuring costs   1,703     1,950     2,154     1,950
  Income taxes expense   3,841     3,545     8,859     5,925
  Share-based payments   192     327     506     1,076
  Defined benefit pension and post-retirement costs   833     933     1,704     1,492
  Loss (gain) on disposal of property, plant and equipment   43     (197)     20     (218)
    48,242     37,155     105,657     80,937
Net changes in balances related to operations:                      
  Trade and other receivables   32,227     41,435     (11,329)     (3,979)
  Inventories   (16,705)     9,717     (31,616)     (13,312)
  Other financial assets   6     (12)     (177)     24
  Prepaid expenses   1,111     (310)     (6,503)     (9,552)
  Other assets   1,920     21     1,072     (1,293)
  Trade and other payables   (31,678)     (13,668)     (6,667)     3,450
  Net pension and post-retirement defined benefit liabilities   (548)     (499)     (2,152)     (1,733)
  Provisions, other financial liabilities and other long-term liabilities   (7,843)     (900)     (6,478)     (2,701)
      (21,510)     35,784     (63,850)     (29,096)
                       
  Income taxes paid   (5,935)     (4,247)     (18,544)     (9,609)
  Income taxes received   1,226     1,663     6,445     9,891
  Interest paid   (9,700)     (6,695)     (13,390)     (8,213)
  Interest received   85     -     274     496
                       
CASH PROVIDED BY OPERATING ACTIVITIES   12,408     63,660     16,592     44,406
                       
FINANCING ACTIVITIES                      
  Bank indebtedness   (28,937)     (9,726)     (37,194)     5,605
  Increase of long-term debt   73,296     -     147,173     19,957
  Repayments of long-term debt   (24,968)     (15,424)     (26,395)     (13,084)
  Repayments of contingent consideration   -     -     -     (1,995)
  Financing costs   (900)     (213)     (1,291)     (218)
  Issuance of share capital   301     571     6,901     5,620
  Dividends on common shares   (9,691)     (9,562)     (19,266)     (19,052)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES   9,101     (34,354)     69,928     (3,167)
                       
INVESTING ACTIVITIES                      
  Acquisition of businesses   (6,432)         (54,593)    
  Additions to property, plant and equipment   (8,054)     (10,885)     (18,084)     (17,530)
  Disposals of property, plant and equipment   535     229     568     288
  Additions to intangible assets   (5,370)     (5,535)     (10,076)     (10,877)
CASH USED IN INVESTING ACTIVITIES   (19,321)     (16,191)     (82,185)     (28,119)
                       
  Effect of foreign currency exchange rate changes on cash and cash equivalents   (2,996)     1,781     (3,551)     986
                       
NET (DECREASE) INCREASE  IN CASH AND CASH EQUIVALENTS   (808)     14,896     784     14,106
                       
Cash and cash equivalents, beginning of period   41,666     37,521     40,074     38,311
                       
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 40,858   $ 52,417   $ 40,858   $ 52,417







DOREL INDUSTRIES INC.

INDUSTRY SEGMENTED INFORMATION

SECOND QUARTERS ENDED JUNE 30

ALL FIGURES IN THOUSANDS OF US $
                                   
    TotalJuvenile   Recreational / LeisureHome Furnishings
    20142013201420132014201320142013
    (unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)
Total revenue   $ 655,831 $ 600,449 $ 251,322 $ 243,412 $ 286,249 $ 238,174 $ 118,260 $ 118,863
Cost of sales     499,894   459,993   178,545   174,651   218,901   183,624   102,448   101,718
Gross profit     155,937   140,456   72,777   68,761   67,348   54,550   15,812   17,145
Selling expenses     61,142   61,804   28,761   27,384   28,300   30,319   4,081   4,101
General and administrative expenses     50,009   42,313   23,682   20,486   20,831   16,900   5,496   4,927
Research and development expenses     6,945   7,696   4,171   5,080   1,793   1,700   981   916
Restructuring costs     1,212   1,950       1,212   1,950    
Operating profit     36,629   26,693 $ 16,163 $ 15,811 $ 15,212 $ 3,681 $ 5,254 $ 7,201
Finance expenses     10,231   5,585                        
Corporate expenses     7,357   4,339                        
Income taxes     3,841   3,545                        
Net income   $ 15,200 $ 13,224                        
                                   
Earnings per Share                                  
  Basic   $ 0.47 $ 0.41                        
  Diluted   $ 0.47 $ 0.41                        
                                   
Depreciation and amortization included in

operating profit
  $ 14,646 $ 13,913 $ 10,097 $ 10,163 $ 3,522 $ 2,708 $ 1,027 $ 1,042


DOREL INDUSTRIES INC.

INDUSTRY SEGMENTED INFORMATION

SIX MONTHS ENDED JUNE 30

ALL FIGURES IN THOUSANDS OF US $
 
                                   
    TotalJuvenile   Recreational / LeisureHome Furnishings
    20142013201420132014201320142013
    (unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)
Total revenue   $ 1,303,532 $ 1,194,617 $ 520,554 $ 498,645 $ 526,597 $ 441,688 $ 256,381 $ 254,284
Cost of sales     992,647   910,286   371,363   355,378   398,807   335,849   222,477   219,059
Gross Profit     310,885   284,331   149,191   143,267   127,790   105,839   33,904   35,225
Selling expenses     117,133   116,527   57,714   54,817   51,308   53,757   8,111   7,953
General and administrative expenses     95,983   88,841   45,214   44,845   40,191   33,615   10,578   10,381
Research and development expenses     15,696   14,899   10,520   9,862   3,285   3,295   1,891   1,742
Restructuring costs     1,483   1,950   -   -   1,483   1,950   -   -
Operating profit     80,590   62,114 $ 35,743 $ 33,743 $ 31,523 $ 13,222 $ 13,324 $ 15,149
Finance expenses     19,510   10,067                        
Corporate expenses     12,221   10,582                        
Income taxes     8,859   5,925                        
Net income   $ 40,000 $ 35,540                        
                                   
Earnings per Share                                  
  Basic   $ 1.25 $ 1.12                        
  Diluted   $ 1.24 $ 1.11                        
                                   
Depreciation and amortization included in

operating profit
  $ 29,625 $ 26,994 $ 20,597 $ 19,816 $ 6,868 $ 5,036 $ 2,160 $ 2,142


  

 

SOURCE Dorel Industries Inc.


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Source: Canada Newswire


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