Dorel Reports First Quarter Results
- Home Furnishings posts best quarter in years buoyed by record e-commerce sales - Strong performances in Sports and Juvenile segments offset by foreign currency movement - Integration of Dorel Juvenile China proceeding as planned
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E-mailMONTREAL, QUEBEC -- (Marketwired) -- 05/07/15 -- Dorel Industries Inc. (TSX: DII.B)(TSX: DII.A) today released results for the first quarter ended March 31, 2015. Total revenue increased 2.7% to US$665.5 million from US$647.7 million a year ago. Net income was US$11.6 million, or US$0.36 per diluted share, compared to US$24.8 million or US$0.77 per diluted share in the first quarter of 2014. The net negative impact of foreign exchange on Dorel's first quarter earnings equated to approximately US$0.30 per diluted share.
"As expected, Dorel's first quarter performance was significantly affected by the continued strength of the US dollar and resulted in a net negative impact on earnings in our markets outside of the U.S. where almost half of our revenue is derived. Corporate-wide, foreign exchange reduced operating profit in reported currency by approximately US$12 million. This situation is clearly not unique to Dorel and overshadows a number of first quarter's positive accomplishments," stated Dorel President & CEO, Martin Schwartz.
"The integration of the Lerado facilities, now rebranded as Dorel Juvenile China, is proceeding as planned and is a critical element in creating a cohesive and efficient supply chain across the Juvenile segment. Foreign exchange significantly reduced our earnings in the Sports and Juvenile segments. In Dorel Sports excluding the impact of foreign exchange, that segment grew both its revenue and operating profit. In both Sports and Juvenile, price increases have been implemented in certain markets to mitigate the currency issues. Other markets will see price increases beginning in the second quarter. Dorel Home Furnishings posted its best quarter in several years. We are very pleased with the stability of this segment and its contribution to the Company`s profitability," concluded Mr. Schwartz.
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Summary of Financial Information
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First Quarters Ended March 31
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All figures in thousands of US $, except per share amounts
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2015 2014 Change%
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Total revenue 665,489 647,701 2.7%
Net income 11,632 24,800 (53.1%)
Per share - Basic 0.36 0.78 (53.8%)
Per share - Diluted 0.36 0.77 (53.2%)
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Average number of shares outstanding -
Basic weighted average 32,321,639 31,938,232
Diluted weighted average 32,513,889 32,272,300
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Dorel Juvenile
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First Quarters Ended March 31
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2015 2014
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$ % of rev. $ % of rev. Change %
Total revenue 274,695 269,232 2.0%
Gross profit 71,441 26.0% 76,414 28.4% (6.5%)
Operating profit 9,175 3.3% 19,580 7.3% (53.1%)
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Dorel Juvenile revenue increased 2% in the first quarter to US$274.7 million from US$269.2 a year ago. Organic revenue increased approximately 3% year-over-year after removing the effect of the Dorel Juvenile China acquisition and the impact of varying exchange rates. This organic sales growth was principally in Latin America with overall local currency sales growth being over 10%. Dorel Juvenile Brazil recorded its highest sales month ever in March. In the US sales improved, while operating profit lagged behind last year due to costs associated with the recently resolved West Coast port strike.
Operating profit declined by US$10.4 million, approximately 60% of which was due to the negative impact of foreign exchange rates. Translation of results in local currency into the US dollar alone accounted for US$2.2 million, with the rest of the decline owing to higher product costs due to the stronger US dollar. The majority of this negative impact was in Europe. In the quarter, price increases to customers were put in place mainly in Latin America, with other markets to follow in the second quarter. Most of the remaining earnings shortfall in the segment was due to losses at Dorel Juvenile China and the recently created Dorel Juvenile Mexico division and to US$1.1 million of acquisition -related costs associated with the Dorel Juvenile China acquisition.
The loss at Dorel Juvenile China was expected as work has begun to improve operations in the factories. A new local management team was hired and is actively working with segment management to identify and implement process efficiencies, synergies and cost savings opportunities. Initial areas of improvement have been identified and have begun rolling out. The team is focusing on streamlining operations, leveraging our spend, enhancing product quality and rationalizing the overhead structure. The results of these initiatives will be seen in the second half of the year as these programs are cascaded throughout the organization.
Dorel Sports
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First Quarters Ended March 31
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2015 2014
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$ % of rev. $ % of rev. Change %
Total revenue 228,929 240,348 (4.8%)
Gross profit 53,460 23.4% 60,442 25.1% (11.6%)
Operating profit 11,562 5.0% 16,311 6.8% (29.1%)
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First quarter Dorel Sports revenue decreased by US$11.4 million, or 4.8% to US$228.9 million compared to last year's US$240.3 million. Organic revenue increased by approximately 3% after removing the impact of varying foreign exchange rates. Organic growth at Cannondale Sports Group (CSG) led the segment with particularly strong sales at independent bike dealers (IBD) in Europe and Japan. Caloi also delivered solid organic growth due to the increased demand of its opening price point products as well as the ongoing popularity of Cannondale, Schwinn, Mongoose and GT in the Brazilian market. The success overseas was tempered by the U.S., where there has been a softer start to the year. January was slow, but sales improved throughout the quarter with March back on plan. This trend has continued into April.
Operating profit for the quarter was US$11.6 million versus US$16.3 million in the prior year, with the net negative impact of exchange rate fluctuations accounting for approximately US$7 million in lower earnings. Excluding this impact of foreign exchange, operating profit for the quarter would have increased by approximately 12%. As in Juvenile, price increases have been implemented on a selective basis to mitigate the currency issues. In Brazil, Caloi has successfully implemented increases and has announced more to go into effect in the second quarter.
Dorel Home Furnishings
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First Quarters Ended March 31
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2015 2014
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$ % of rev. $ % of rev. Change %
Total revenue 161,865 138,121 17.2%
Gross profit 20,674 12.8% 18,092 13.1% 14.3%
Operating profit 9,550 5.9% 8,070 5.8% 18.3%
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Home Furnishings had an excellent quarter with revenues increasing 17.2% to US$161.9 million from US$138.1 million in the prior year. Operating profit increased by 18.3% to US$9.6 million. E-commerce sales and related drop-ship vendor programs continued to grow and accounted for over 30% of total segment revenues. Sales to brick and mortar stores also increased compared with the previous year. The growth came from sales of mattresses, beds and upholstered furniture. In the quarter the segment benefitted from increased listings at retailers with strong sell through on many items. All divisions posted improved operating profit with the exception of Cosco Home & Office due to product mix sold.
Other
A non-cash gain of US$0.4 million and an expense of US$4.0 million are included in 2015 and 2014 first quarters' finance expenses, respectively. These amounts are related to the remeasurement of the forward purchase agreement liabilities with regards to certain past business acquisitions. The diluted per share impact is positive US$0.01 and negative US$0.13 for the first quarter of 2015 and 2014, respectively.
The 2015 first quarter reported tax rate was 24.3% versus 16.8% last year. For the full year the annual tax rate is expected to be between 15% and 20%.
Quarterly dividend
Dorel's Board of Directors declared its regular quarterly dividend of US$0.30 per share on the outstanding number of the Company's Class A Multiple Voting Shares, Class B Subordinate Voting Shares, Deferred Share Units and cash-settled Performance Share Units. The dividend is payable on June 4, 2015 to shareholders of record as at the close of business on May 21, 2015.
Outlook
"As expected, the negative impact of the increased value of the US dollar against practically all of our local currencies severely depressed earnings in the first quarter of 2015. Although rates have stabilized somewhat over the past month or so, we have not seen any of the currencies in our markets significantly increase in value. As such, we expect the lower earnings in our Juvenile and Sports segments to continue into the second quarter. Now that the currencies have stabilized, price increases have been determined and implemented where relevant. We anticipate this will benefit the second quarter, but the significant benefit will be in the second half," stated Martin Schwartz, Dorel President & CEO.
"In Juvenile our U.S. business will show improved earnings for the balance of the year, but it will not be enough to offset the segment's overall currency challenges. Our European business has lost several margin points to exchange. We will continue to invest in the business as we work through this period, but results for the full year will not match those of 2014. In Latin America our teams have successfully overcome higher material costs due to exchange and we remain confident they will exceed prior year earnings. Our integration of Dorel Juvenile China is on-going and will likely decrease earnings over the course of the next two quarters."
"At Dorel Sports the second quarter should again organically beat sales and earnings compared to the same period last year, excluding the impact of foreign exchange. As stated in our year-end release, we believe the second half will be strong, and will exceed the first half. Significant new product introductions should generate incremental volume and revised pricing will boost earnings.
"In Home Furnishings the positive momentum of the first quarter is expected to continue throughout the year", concluded Mr. Schwartz.
Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, May 7, 2015 at 11:00 A.M. Eastern Time. Interested parties can join the call by dialing 1-877-223-4471. The conference call can also be accessed via live webcast at http://www.dorel.com/eng/events. If you are unable to call in at this time, you may access a recording of the meeting by calling 1-800-585-8367 and entering the passcode 17048845 on your phone. This recording will be available on Thursday, May 7, 2015 as of 2:00 P.M. until 11:59 P.M. on Thursday, May 14, 2015.
Complete condensed consolidated interim financial statements as at March 31, 2015 will be available on the Company's website, www.dorel.com, and will be available through the SEDAR website.
Profile
Dorel Industries Inc. (TSX: DII.B)(TSX: DII.A) is a world class juvenile products and bicycle company. The Company's safety and lifestyle leadership is pronounced in both its Juvenile and Bicycle categories with an array of trend -setting, innovative products. Dorel Juvenile's powerfully branded products include global juvenile brands Safety 1st, Quinny, Maxi-Cosi, Bebe Confort and Tiny Love, complemented by regional brands such as Cosco and Infanti. In Dorel Sports, brands include Cannondale, Schwinn, GT, Mongoose, Caloi, IronHorse and SUGOI. Dorel Home Furnishings markets a wide assortment of both domestically produced and imported furniture products, principally within North America. Dorel Industries Inc. has annual sales of US$2.7 billion and employs approximately 11,500 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, or if any of them do, what benefits Dorel will derive from them. Forward- looking statements are provided in this press release for the purpose of giving information about Management's current expectations and plans and allowing investors and others to get a better understanding of Dorel's operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.
Forward-looking statements made in this press release are based on a number of assumptions that Dorel believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from Dorel's expectations expressed in or implied by the forward-looking statements include: general economic conditions; changes in product costs and supply channels; foreign currency fluctuations; customer and credit risk, including the concentration of revenues with 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 there being no certainty that Dorel's current dividend policy will be maintained. These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in Dorel's annual Management Discussion and Analysis and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors outlined in the previously-mentioned documents are specifically incorporated herein by reference.
Dorel cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to Dorel or that Dorel currently deems to be immaterial may also have a material adverse effect on Dorel's business, financial condition or results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward- looking statements as a prediction of actual results.
DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
as at as at
March 31, December 30,
2015 2014
-----------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 47,311 $ 47,101
Trade and other receivables 502,328 474,704
Inventories 643,953 633,022
Other financial assets 7,174 4,299
Income taxes receivable 14,656 15,731
Prepaid expenses 33,021 25,343
-----------------------------
1,248,443 1,200,200
Assets held for sale 1,308 1,308
-----------------------------
1,249,751 1,201,508
-----------------------------
NON-CURRENT ASSETS
Property, plant and equipment 216,260 226,893
Intangible assets 496,690 519,798
Goodwill 518,482 544,782
Other financial assets 23 571
Deferred tax assets 31,818 31,009
Other assets 4,722 5,398
-----------------------------
1,267,995 1,328,451
-----------------------------
$ 2,517,746 $ 2,529,959
-----------------------------
-----------------------------
LIABILITIES
CURRENT LIABILITIES
Bank indebtedness $ 70,791 $ 27,053
Trade and other payables 453,531 490,527
Other financial liabilities 3,056 1,655
Income taxes payable 21,289 19,046
Long-term debt 60,946 62,556
Provisions 33,744 37,727
-----------------------------
643,357 638,564
-----------------------------
NON-CURRENT LIABILITIES
Long-term debt 539,945 490,188
Net pension and post-retirement defined
benefit liabilities 44,515 46,128
Deferred tax liabilities 85,145 89,199
Provisions 1,641 1,765
Written put option and forward purchase
agreement liabilities 43,208 44,640
Other financial liabilities 2,315 2,063
Other long-term liabilities 9,892 10,428
-----------------------------
726,661 684,411
-----------------------------
EQUITY
Share capital 199,988 199,927
Contributed surplus 25,715 25,691
Accumulated other comprehensive income (81,399) (20,579)
Other equity 177 579
Retained earnings 1,003,247 1,001,366
-----------------------------
1,147,728 1,206,984
-----------------------------
$ 2,517,746 $ 2,529,959
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DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENTS
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
(unaudited)
Three Months Ended
------------------------------
March 31, 2015 March 31, 2014
------------------------------
Restated
Sales $ 661,394 $ 643,158
Licensing and commission income 4,095 4,543
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TOTAL REVENUE 665,489 647,701
Cost of sales (1) 519,914 492,753
------------------------------
GROSS PROFIT 145,575 154,948
Selling expenses 56,257 56,698
General and administrative expenses 56,156 48,237
Research and development expenses 8,512 8,751
Restructuring and other costs (1) 917 480
------------------------------
OPERATING PROFIT 23,733 40,782
Finance expenses 8,375 10,964
------------------------------
INCOME BEFORE INCOME TAXES 15,358 29,818
Income taxes expense 3,726 5,018
------------------------------
NET INCOME $ 11,632 $ 24,800
------------------------------
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EARNINGS PER SHARE
Basic $ 0.36 $ $0.78
------------------------------
------------------------------
Diluted $ 0.36 $ $0.77
------------------------------
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SHARES OUTSTANDING
Basic - weighted average 32,321,639 31,938,232
Diluted - weighted average 32,513,889 32,272,300
(1)Restructuring and other costs charged to:
Cost of sales $ - $ 180
Expenses 917 480
------------------------------
$ 917 $ 660
------------------------------
DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
Three Months Ended
----------------------------------
March 31, 2015 March 31, 2014
----------------------------------
NET INCOME $ 11,632 $ 24,800
----------------------------------
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 (61,410) (332)
----------------------------------
Net changes in cash flow hedges:
Net change in unrealized gains (losses) on
derivatives designated as cash flow
hedges 3,884 131
Reclassification to income 311 290
Reclassification to the related non-
financial asset (3,596) 484
Deferred income taxes (98) (298)
----------------------------------
501 607
----------------------------------
Items that will not be reclassified to net
income:
Defined benefit plans:
Remeasurements of the net pension and
post-retirement defined benefit
liabilities 133 -
Deferred income taxes (44) -
----------------------------------
89 -
----------------------------------
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) (60,820) 275
----------------------------------
TOTAL COMPREHENSIVE INCOME (LOSS) $ (49,188) $ 25,075
----------------------------------
----------------------------------
DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
Attributable to equity holders of the Company
----------------------------------------------------------
Accumulated other
comprehensive income
-------------------------------
Cumulative Cash Defined
Share Contributed Translation Flow Benefit
Capital Surplus Account Hedges Plans
----------------------------------------------------------
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Balance as at
December 30, 2013 $ 190,458 $ 26,994 $ 75,378 $ (2,154) $ (5,400)
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Total
comprehensive
income:
Net income - - - - -
Other
comprehensive
income (loss) - - (332) 607 -
----------------------------------------------------------------------------
$ - $ - $ (332) $ 607 $ -
----------------------------------------------------------------------------
Issued under
stock option
plan 6,615 - - - -
Reclassification
from
contributed
surplus due to
exercise of
stock options 1,744 (1,744) - - -
Reclassification
from
contributed
surplus due to
settlement of
deferred share
units 122 (131) - - -
Share-based
payments - 314 - - -
Dividends on
common shares - - - - -
Dividends on
deferred share
units - 47 - - -
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Balance as at
March 31, 2014 $ 198,939 $ 25,480 $ 75,046 $ (1,547) $ (5,400)
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Balance as at
December 30, 2014 $ 199,927 $ 25,691 $ (8,842) $ 2,180 $(13,917)
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Total
comprehensive
income:
Net income - - - - -
Other
comprehensive
income (loss) - - (61,410) 501 89
----------------------------------------------------------------------------
$ - $ - $ (61,410) $ 501 $ 89
----------------------------------------------------------------------------
Reclassification
from
contributed
surplus due to
settlement of
deferred share
units 61 (101) - - -
Share-based
payments - 71 - - -
Remeasurement of
written put
option
liabilities - - - - -
Dividends on
common shares - - - - -
Dividends on
deferred share
units - 54 - - -
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Balance as at
March 31, 2015 $ 199,988 $ 25,715 $ (70,252) $ 2,681 $(13,828)
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Attributable to
equity holders of
the Company
----------------------------------------------------------
Other Retained Total
Equity Earnings Equity
----------------------------------------------------------
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Balance as at
December 30, 2013 $ - $ 1,061,484 $ 1,346,760
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Total
comprehensive
income:
Net income - 24,800 24,800
Other
comprehensive
income (loss) - - 275
----------------------------------------------------------------------------
$ - $ 24,800 $ 25,075
----------------------------------------------------------------------------
Issued under
stock option
plan - - 6,615
Reclassification
from
contributed
surplus due to
exercise of
stock options - - -
Reclassification
from
contributed
surplus due to
settlement of
deferred share
units - - (9)
Share-based
payments - - 314
Dividends on
common shares - (9,575) (9,575)
Dividends on
deferred share
units - (47) -
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Balance as at
March 31, 2014 $ - $ 1,076,662 $ 1,369,180
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Balance as at
December 30, 2014 $ 579 $ 1,001,366 $ 1,206,984
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Total
comprehensive
income:
Net income - 11,632 11,632
Other
comprehensive
income (loss) - - (60,820)
----------------------------------------------------------------------------
$ - $ 11,632 $ (49,188)
----------------------------------------------------------------------------
Reclassification
from
contributed
surplus due to
settlement of
deferred share
units - - (40)
Share-based
payments - - 71
Remeasurement of
written put
option
liabilities (402) - (402)
Dividends on
common shares - (9,697) (9,697)
Dividends on
deferred share
units - (54) -
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Balance as at
March 31, 2015 $ 177 $ 1,003,247 $ 1,147,728
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DOREL INDUSTRIES INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
Three Months Ended
----------------------------------
March 31, 2015 March 31, 2014
----------------------------------
Restated
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net income $ 11,632 $ 24,800
Items not involving cash:
Depreciation and amortization 14,290 15,020
Unrealized (gains) losses arising on
financial assets and financial
liabilities classified as held for
trading (353) -
Finance expenses 8,375 10,964
Restructuring costs (200) 451
Income taxes expense 3,726 5,018
Share-based payments 71 314
Defined benefit pension and post-
retirement costs 825 871
Gain on disposal of property, plant and
equipment (86) (23)
----------------------------------
38,280 57,415
----------------------------------
Net changes in balances related to
operations:
Trade and other receivables (48,461) (43,556)
Inventories (34,122) (14,911)
Other financial assets 183 (183)
Prepaid expenses (9,027) (7,614)
Other assets (31) (848)
Trade and other payables (20,758) 25,011
Net pension and post-retirement defined
benefit liabilities (1,401) (1,604)
Provisions, other financial liabilities
and other
long-term liabilities (3,589) 1,365
----------------------------------
(117,206) (42,340)
----------------------------------
Income taxes paid (6,593) (12,609)
----------------------------------
Income taxes received 2,725 5,219
----------------------------------
Interest paid (3,842) (3,690)
----------------------------------
Interest received 140 189
----------------------------------
CASH (USED IN) PROVIDED BY OPERATING
ACTIVITIES (86,496) 4,184
----------------------------------
FINANCING ACTIVITIES
Bank indebtedness 49,631 (8,257)
Increase of long-term debt 67,059 73,877
Repayments of long-term debt (3,806) (1,427)
Increase of written put option and
forward purchase agreement liabilities 525 -
Financing costs (34) (391)
Issuance of share capital - 6,600
Dividends on common shares (9,697) (9,575)
----------------------------------
CASH PROVIDED BY FINANCING ACTIVITIES 103,678 60,827
----------------------------------
INVESTING ACTIVITIES
Acquisition of businesses (1,736) (48,161)
Additions to property, plant and
equipment (7,079) (10,030)
Disposals of property, plant and
equipment 456 33
Additions to intangible assets (4,489) (4,706)
----------------------------------
CASH USED IN INVESTING ACTIVITIES (12,848) (62,864)
----------------------------------
Effect of foreign currency exchange rate
changes on cash and cash equivalents (4,124) (555)
----------------------------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 210 1,592
Cash and cash equivalents, beginning of
period 47,101 40,074
----------------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 47,311 $ 41,666
----------------------------------
----------------------------------
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FIRST QUARTERS ENDED MARCH 31
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
Total Dorel Juvenile
------------------------------------------------
2015 2014 2015 2014
Restated Restated
Total revenue $ 665,489 $ 647,701 $ 274,695 $ 269,232
Cost of sales (1) 519,914 492,753 203,254 192,818
------------------------------------------------
Gross profit 145,575 154,948 71,441 76,414
Selling expenses 55,547 55,991 28,818 28,953
General and administrative
expenses 50,312 45,765 26,161 21,465
Research and development
expenses 8,512 8,751 6,170 6,349
Restructuring and other
costs (1) 917 480 1,117 67
------------------------------------------------
Operating profit 30,287 43,961 $ 9,175 $ 19,580
------------------------
------------------------
Finance expenses 8,375 10,964
Corporate expenses 6,554 3,179
Income taxes 3,726 5,018
------------------------
Net income $ 11,632 $ 24,800
------------------------
------------------------
Earnings per share
Basic $0.36 $0.78
------------------------
------------------------
Diluted $0.36 $0.77
------------------------
------------------------
------------------------------------------------
Depreciation and
amortization included in
operating profit $ 14,246 $ 14,979 $ 9,686 $ 10,500
------------------------------------------------
(1) Restructuring and other
costs charged to:
Cost of sales $ - $ 180 $ - $ -
Expenses 917 480 1,117 67
------------------------------------------------
$ 917 $ 660 $ 1,117 $ 67
------------------------------------------------
------------------------------------------------
Dorel Sports Dorel Home Furnishings
------------------------------------------------
2015 2014 2015 2014
Restated
Total revenue $ 228,929 $ 240,348 $ 161,865 $ 138,121
Cost of sales (1) 175,469 179,906 141,191 120,029
------------------------------------------------
Gross profit 53,460 60,442 20,674 18,092
Selling expenses 22,587 23,008 4,142 4,030
General and administrative
expenses 18,048 19,218 6,103 5,082
Research and development
expenses 1,463 1,492 879 910
Restructuring and other
costs (1) (200) 413 - -
------------------------------------------------
Operating profit $ 11,562 $ 16,311 $ 9,550 $ 8,070
------------------------------------------------
------------------------------------------------
Finance expenses
Corporate expenses
Income taxes
Net income
Earnings per share
Basic
Diluted
------------------------------------------------
Depreciation and
amortization included in
operating profit $ 3,381 $ 3,346 $ 1,179 $ 1,133
------------------------------------------------
(1) Restructuring and other
costs charged to:
Cost of sales $ - $ 180 $ - $ -
Expenses (200) 413 - -
------------------------------------------------
$ (200) $ 593 $ - $ -
------------------------------------------------
------------------------------------------------
Contacts: MaisonBrison Communications Rick Leckner (514) 731-0000 Dorel Industries Inc. Jeffrey Schwartz (514) 934-3034
Source: Dorel Industries Inc.
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