Dorel Reports Year-End and Q4 Results
-Full year adjusted revenue up 10% -Dorel Sports posts strong rebound -Dorel Juvenile concludes Lerado Juvenile acquisition
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E-mailMONTREAL, QUEBEC -- (Marketwired) -- 03/16/15 -- Dorel Industries Inc. (TSX: DII.B)(TSX: DII.A) today announced results for the fourth quarter and full year ended December 30, 2014. Adjusted revenue for the fourth quarter was US$701.6 million up 10.7% from US$633.5 million a year ago. Adjusted net income for the fourth quarter was US$11.0 million or US$0.34 per diluted share compared to adjusted net income of US$12.1 million or US$0.38 per diluted share in the fourth quarter of 2013. Reported net loss for the quarter was US$80.7 million or US$2.50 per diluted share compared to reported net income of US$11.0 million or US$0.34 per diluted share a year ago.
Adjusted revenue for the full year was US$2.7 billion, up 10.0% from last year's US$2.4 billion. Adjusted net income for the year was US$84.0 million or US$2.59 per diluted share compared to adjusted net income of US$70.6 million or US$2.19 per diluted share in 2013. Reported net loss was US$21.3 million or US$0.66 per diluted share, compared to reported net income of US$57.7 million or US$1.79 per diluted share a year ago.
As detailed in the table below, the reported net loss includes impairment losses on goodwill and trademarks, restructuring and other costs totalling US$105.2 million or US$3.25 per diluted share and US$12.9 million or US$0.40 per diluted share for the years 2014 and 2013 respectively. As such, the Company is presenting adjusted financial information as it believes that excluding these items is a more meaningful comparison of its core business performance between the periods presented.
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Summary of Adjusted Financial Information
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Fourth Quarters Ended December 30
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All figures in thousands of US $, except per share amounts
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2014 2013 Change %
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Total adjusted revenue 701,602 633,534 10.7%
Adjusted net income 10,993 12,147 (9.5%)
Per share - Basic 0.34 0.38 (10.5%)
Per share - Diluted 0.34 0.38 (10.5%)
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Average number of shares outstanding -
Basic weighted average 32,313,250 31,905,793
Diluted weighted average 32,502,846 32,245,587
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Summary of Adjusted Financial Information
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Twelve Months Ended December 30
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All figures in thousands of US $, except per share amounts
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2014 2013 Change %
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Total adjusted revenue 2,678,154 2,435,449 10.0%
Adjusted net income 83,979 70,583 19.0%
Per share - Basic 2.61 2.22 17.6%
Per share - Diluted 2.59 2.19 18.3%
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Average number of shares outstanding -
Basic weighted average 32,213,733 31,828,510
Diluted weighted average 32,440,354 32,190,332
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Details of the impairment losses, restructuring and other costs are
presented below:
(All figures are in thousands of USD, except per share amounts)
Fourth quarters ended Twelve months ended
December 30 December 30
2014 2013 2014 2013
$ $ $ $
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Dorel Juvenile
Impairment losses on
goodwill and trademarks 125,821 - 125,821 -
Other charges due to
manufacturing transition
to Lerado 10,807 - 10,807 -
Acquisition-related costs 3,081 70 4,350 520
US Car seat case
settlement - (2,000) - 6,000
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Total 139,709 (1,930) 140,978 6,520
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Dorel Sports
Restructuring costs 1,830 13,482 4,892 15,432
Brixia investment write-
down and other costs 603 - 6,542 -
Acquisition-related costs - 232 183 1,698
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Total 2,433 13,714 11,617 17,130
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Finance Expenses
Gain on remeasurement of
forward purchase
agreement liabilities (30,789) (6,175) (25,702) (2,441)
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Total impairment losses,
restructuring and other
costs before income taxes
(1) 111,353 5,609 126,893 21,209
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Total impairment losses,
restructuring and other
costs after income taxes 91,742 1,123 105,248 12,914
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Total impact on diluted
earnings per share $ (2.84) $ (0.04) $ (3.25) $ (0.40)
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(1) Includes non-cash
amounts of: 99,847 2,686 110,421 6,420
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"Overall performance in 2014 was better than the previous year. This is a tribute to our executive teams in all three segments as we maintained a strict focus on the businesses even while planning the future of the Juvenile segment and rebuilding Dorel Sports. The fourth quarter Lerado acquisition is a major initiative to improve Dorel Juvenile's long-term profitability, shift to a more vertically integrated business model and broaden its global footprint. Lerado will allow Dorel to better service our existing customers and provide a base from which to expand the segment's business in China and other parts of Asia," stated Martin Schwartz, Dorel President & CEO.
"Results for Dorel Sports were strong as the segment recovered from a disappointing 2013. The revitalized management team delivered solid earnings as it refocused on its strong brands and successful new product introductions.
"Dorel Home Furnishings maintained its push in the Internet sales channel and drop ship vendor programs to post significant progress. For the first time in many quarters there was also an increase in Home Furnishings sales to the brick and mortar channel," concluded Mr. Schwartz.
Dorel Juvenile
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Fourth Quarters Ended December 30
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2014 2013
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$ % of rev. $ % of rev. Change %
Total adjusted revenue 289,836 255,254 13.5%
Adjusted gross profit 75,840 26.2% 73,445 28.8% 3.3%
Adjusted operating
profit 8,816 3.1% 16,458 6.4% (46.4%)
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Twelve Months Ended December 30
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2014 2013
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$ % of rev. $ % of rev. Change %
Total adjusted revenue 1,071,113 992,882 7.9%
Adjusted gross profit 298,196 27.8% 281,623 28.4% 5.9%
Adjusted operating
profit 61,939 5.8% 63,678 6.4% (2.7%)
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Fourth quarter
Dorel Juvenile adjusted revenue increased 13.5% compared to the same quarter a year ago. Excluding the impact of foreign exchange and business acquisitions, the organic revenue increase was approximately 5% led by the United States, Brazil and Australia. All major divisions saw their currencies weaken significantly against the strong U.S. dollar in the quarter, a situation which was particularly pronounced in the Euro region. This amounted to a foreign exchange loss of approximately US$5 million and was the main cause of the operating profit decline from prior year. The fourth quarter of 2014 also includes operating losses of US$1.6 million pertaining to Lerado Juvenile results as well as start-up operations in Mexico.
With the closing of the Lerado transaction in early November, intensified effort has gone into the transition to and integration of the new Asian facilities. Production of certain products was transferred from third party suppliers to the new Company-owned facilities which required new product designs and moulds. Therefore, the segment recorded charges related to write-off of capitalized R&D costs, tooling and moulds, as well as other associated costs.
This realignment prompted a re-assessment of Dorel Juvenile's global operations. As a result, assumptions on future earnings and cash flow growth have changed and growth in earnings is now expected to come from the new Asian-based operations as opposed to the North American and Australian markets and as such goodwill impairment losses of US$82.7 million were recorded.
In Europe the Company has made a strategic decision to focus on the Maxi-Cosi and Quinny brands and profits are expected to be driven by these brands as opposed to other brands acquired as part of the 2003 Ampa France business acquisition. As a result, the Company has recorded an impairment loss of US$43.1 million before tax, allocated to the trademarks based on reduced future profitability and cash flow for the Bebe Confort, Monbebe, Babideal and Baby Relax brands.
Full year
Excluding the impact of foreign exchange and acquisitions, organic revenue increased by approximately 3% from prior year. The main drivers of the increased revenue were Latin America and North America while revenues in Europe were stable. Dorel Asia Juvenile has had rejuvenated growth in the sale of wooden cribs and other wooden juvenile furniture products, particularly in higher margin items.
The weakening of major currencies versus the U.S. dollar resulted in a net negative impact in operating profit of approximately US$10 million for the full year. The 2014 full year operating losses pertaining to Lerado Juvenile results as well as start-up operations in Mexico amounts to US$2.0 million.
Dorel Sports
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Fourth Quarters Ended December 30
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2014 2013
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$ % of rev. $ % of rev. Change %
Total revenue 260,083 245,465 6.0%
Adjusted gross profit 56,890 21.9% 55,936 22.8% 1.7%
Adjusted operating
profit 12,030 4.6% 8,287 3.4% 45.2%
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Twelve Months Ended December 30
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2014 2013
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$ % of rev. $ % of rev. Change %
Total revenue 1,053,183 918,744 14.6%
Adjusted gross profit 247,907 23.5% 215,960 23.5% 14.8%
Adjusted operating
profit 67,507 6.4% 39,030 4.2% 73.0%
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Fourth quarter
Dorel Sports delivered its fourth consecutive quarter of growth. Revenues increased US$14.6 million or 6% in the quarter and adjusted operating profit improved by 45.2%. The organic sales increase, excluding the impact of foreign exchange and acquisitions was approximately 8%. Pacific Cycle led the sales growth with sales to mass merchants increasing in both bicycles and electric ride-ons. Caloi's sales increased and in local currency operating profit increased by double digits versus prior year. This growth was driven by the Cannondale and GT business launched in Brazil during the year.
The segment was challenged by the unfavourable effect of the drastically appreciated US dollar against all major foreign currencies. The net negative impact was approximately US$4 million for Dorel Sports. Also in the quarter, Dorel Sports began operations in Chile, which resulted in costs of US$0.4 million in connection with the start-up.
Full year
The organic sales increase after removing the impact of foreign exchange and acquisitions was approximately 8%. The increase was in both the IBD and the mass merchant distribution channels, driven partly by improved weather conditions with a rebound in the global bike market when compared with prior year. Overseas markets in the IBD channel, particularly in Europe and Asia continued to contribute to the organic sales increase. Further highlights were strong shipments of Pacific Cycle's battery powered ride-ons and improved sales in Canada.
The adjusted operating profit improvement was at all major divisions, led by a strong turn around in the IBD sales channel. This along with strong sales growth at all other major distribution channels and improved operating efficiencies contributed to better earnings. For the year, the net negative impact of adverse foreign exchange rates was approximately US$3 million.
Dorel Home Furnishings
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Fourth Quarters Ended December 30
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2014 2013
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$ % of rev. $ % of rev. Change %
Total revenue 151,683 132,815 14.2%
Gross profit 17,033 11.2% 15,451 11.6% 10.2%
Operating profit 5,237 3.5% 5,004 3.7% 4.7%
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Twelve Months Ended December 30
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2014 2013
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$ % of rev. $ % of rev. Change %
Total revenue 553,858 523,823 5.7%
Gross profit 67,214 12.1% 66,204 12.6% 1.5%
Operating profit 24,034 4.3% 25,992 5.0% (7.5%)
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Fourth quarter
In the fourth quarter, Dorel Home Furnishing revenues increased by 14.2%. All divisions showed increases over last year's fourth quarter. Dorel Home Products (DHP) had the strongest growth while Cosco Home & Office also did well. The import division of Ameriwood/Altra also recorded gains in the quarter, particularly through the Internet channel.
Full year
The organic sales increase after removing the impact of foreign exchange rate variations was approximately 6%. The revenue increase was primarily from DHP and Cosco furniture product categories. The segment posted another record year of sales through the Internet sales channel which offset full year reductions in sales to brick and mortar stores. Dorel Home Furnishings continues its expansion into the Internet sales channel which now represents 30% of revenue compared to 20% in 2013. The majority of the segment's divisions showed significantly improved operating results.
Other
Non-cash gains of US$30.8 million and US$25.7 million respectively are included in 2014 fourth quarter and year-end finance expenses. These gains are related to the remeasurement of the forward purchase agreement liabilities with regards to certain past business acquisitions. The diluted earnings per share impact is US$0.95 in the quarter and US$0.80 year-to-date. In 2013, the remeasurement of the forward purchase agreement liabilities generated a total non-cash gain of US$6.2 million in the quarter and US$2.4 million for the full year. This equated to a fully diluted EPS impact of US$0.19 in the quarter and US$0.08 year-to-date.
In 2014, the Company's effective tax rate was 28.9% compared to 8.0% in 2013. Excluding the income taxes on impairment losses on goodwill and trademarks, restructuring and other costs, the Company's adjusted effective tax rate was 13.4% and 15.8% for 2014 and 2013 respectively.
Outlook
"Over the last decade Dorel has truly become a global company, particularly in the Dorel Juvenile and Dorel Sports segments. Today, just over half of our net income is derived from outside North America. We believe this is the right long-term vision for the growth of the Company. However, the recent meteoric rise in the value of the US dollar has significantly reduced our margins in our markets outside the US. This difficult situation is expected to impact us for at least the first half of 2015. We are working to adjust to these new exchange rates, which is made more challenging by continued currency rate fluctuations. Until we see some stability in the currency market, our visibility on earnings will remain difficult," stated Martin Schwartz, Dorel President & CEO.
"On the positive side we are experiencing sales and profitability growth in the United States in all segments due to renewed strength with our mass-market customers and on-going success in the Internet sales channel.
In Dorel Juvenile we are making progress to integrate our Lerado acquisition and this will remain a priority for the year. As we have stated, Lerado will not be accretive to earnings in the first year of operations.
For Dorel Sports we believe that the second half of the year will see growth in the independent bicycle dealer (IBD) channel. This expectation is based on the planned introduction in July of our innovative new bicycle model year line-up, as well as a stabilization of margins in our markets outside of the US. In addition, we anticipate another solid year in our mass market bike business.
In Dorel Home Furnishings, we are optimistic as we start the year. Demand is increasing and the weak Canadian dollar will benefit the segment's Canadian operations," concluded Mr. Schwartz.
Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, March 16, 2015 at 1:00 P.M. Eastern Time. Interested parties can join the call by dialling 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 68790568 on your phone. This recording will be available on Monday, March 16, 2015 as of 4:00 P.M. until 11:59 P.M. on Monday, March 23, 2015.
Complete financial statements 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.
Non-GAAP measures
As a result of the restructuring costs incurred in both 2014 and 2013, as well as impairment losses on goodwill and trademarks and other costs recorded, the Company is including in this press release the following non-GAAP financial measures: "total adjusted revenue", "adjusted gross profit", "adjusted selling expenses", "adjusted general and administrative expenses", "adjusted research and development expenses", "adjusted operating profit", "adjusted income before income taxes", "adjusted income taxes", "adjusted net income", and "adjusted earnings per basic and diluted share". The Company believes that this results in a more meaningful comparison of its core business performance between the periods presented. These non-GAAP financial measures do not have a standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other issuers. Contained within this press release are reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.
(All figures are in thousands of USD, except per share amounts)
Reconciliation of Non-GAAP measures:
Results for the fourth quarter ended December 30, 2014
Impairment
losses,
restructuring
and
Reported other costs Adjusted
$ $ $
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Total Revenue 701,002 600 701,602
Cost of sales 558,057 (6,218) 551,839
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GROSS PROFIT 142,945 6,818 149,763
Selling expenses 61,444 61,444
General and administrative expenses 57,736 57,736
Research and development expenses 11,858 11,858
Restructuring and other costs 9,503 (9,503) -
Impairment losses on goodwill and
trademarks 125,821 (125,821) -
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OPERATING PROFIT (LOSS) (123,417) 142,142 18,725
Finance expenses (20,466) 30,789 10,323
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INCOME (LOSS) BEFORE INCOME TAXES (102,951) 111,353 8,402
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Income taxes
Current (2,990) (2,990)
Deferred (19,212) 19,611 399
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(22,202) 19,611 (2,591)
Tax rate 21.6% (30.8%)
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NET INCOME (LOSS) (80,749) 91,742 10,993
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EARNINGS (LOSS) PER SHARE
Basic (2.50) 2.84 0.34
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Diluted (2.50) 2.84 0.34
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SHARES OUTSTANDING
Basic - weighted average 32,313,250 32,313,250
Diluted - weighted average 32,313,250 32,502,846
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Results for the fourth quarter ended ended December 30, 2013
Restructuring
and
Reported other costs Adjusted
$ $ $
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Total Revenue 633,534 633,534
Cost of sales 492,777 (4,075) 488,702
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GROSS PROFIT 140,757 4,075 144,832
Selling expenses 59,143 59,143
General and administrative expenses 50,722 50,722
Research and development expenses 10,625 10,625
Restructuring and other costs 7,709 (7,709) -
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OPERATING PROFIT 12,558 11,784 24,342
Finance expenses 1,595 6,175 7,770
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INCOME BEFORE INCOME TAXES 10,963 5,609 16,572
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Income taxes
Current 1,571 1,571
Deferred (1,632) 4,486 2,854
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(61) 4,486 4,425
Tax rate (0.6%) 26.7%
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NET INCOME 11,024 1,123 12,147
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EARNINGS PER SHARE
Basic 0.35 0.03 0.38
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Diluted 0.34 0.04 0.38
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SHARES OUTSTANDING
Basic - weighted average 31,905,793 31,905,793
Diluted - weighted average 32,245,587 32,245,587
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Reconciliation of Non-GAAP measures:
Results for the year ended December 30, 2014
Impairment
losses,
restructuring
and
Reported other costs Adjusted
$ $ $
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Total revenue 2,677,554 600 2,678,154
Cost of sales 2,072,230 (7,393) 2,064,837
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GROSS PROFIT 605,324 7,993 613,317
Selling expenses 235,776 235,776
General and administrative expenses 210,691 210,691
Research and development expenses 36,111 36,111
Restructuring and other costs 18,781 (18,781) -
Impairment losses on goodwill and
trademarks 125,821 (125,821) -
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OPERATING PROFIT (LOSS) (21,856) 152,595 130,739
Finance expenses 8,073 25,702 33,775
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INCOME (LOSS) BEFORE INCOME TAXES (29,929) 126,893 96,964
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Income taxes
Current 11,688 11,688
Deferred (20,348) 21,645 1,297
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(8,660) 21,645 12,985
Tax rate 28.9% 13.4%
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NET INCOME (LOSS) (21,269) 105,248 83,979
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EARNINGS (LOSS) PER SHARE
Basic (0.66) 3.27 2.61
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Diluted (0.66) 3.25 2.59
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SHARES OUTSTANDING
Basic - weighted average 32,213,733 32,213,733
Diluted - weighted average 32,213,733 32,440,354
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Results for the year ended December 30, 2013
Restructuring
and
Reported other costs Adjusted
$ $ $
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Total revenue 2,435,449 2,435,449
Cost of sales 1,875,737 (4,075) 1,871,662
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GROSS PROFIT 559,712 4,075 563,787
Selling expenses 231,724 231,724
General and administrative expenses 194,190 194,190
Research and development expenses 32,905 32,905
Restructuring and other costs 19,575 (19,575) -
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OPERATING PROFIT 81,318 23,650 104,968
Finance expenses 18,665 2,441 21,106
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INCOME BEFORE INCOME TAXES 62,653 21,209 83,862
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Income taxes
Current 15,680 15,680
Deferred (10,696) 8,295 (2,401)
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4,984 8,295 13,279
Tax rate 8.0% 15.8%
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NET INCOME 57,669 12,914 70,583
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EARNINGS PER SHARE
Basic 1.81 0.41 2.22
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Diluted 1.79 0.40 2.19
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SHARES OUTSTANDING
Basic - weighted average 31,828,510 31,828,510
Diluted - weighted average 32,190,332 32,190,332
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Fourth Quarters Ended December 30,
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2014
Impairment
losses,
restructuring
% of and other % of
Reported revenue costs Adjusted revenue
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Dorel Juvenile
----------------------
Total revenue 289,236 600 289,836
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Gross profit 69,022 23.9 6,818 75,840 26.2
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Selling expenses 32,020 11.1 32,020 11.1
General and
administrative
expenses 25,927 9.0 25,927 8.9
Research and
development
expenses 9,077 3.1 9,077 3.1
Restructuring and
other costs 7,070 2.5 (7,070) - -
Impairment losses on
goodwill and
trademarks 125,821 43.5 (125,821) - -
--------------------------------------------
Operating profit (130,893) (45.3) 139,709 8,816 3.1
Dorel Sports
----------------------
Total revenue 260,083 260,083
--------------------------------------------
Gross profit 56,890 21.9 - 56,890 21.9
--------------------------------------------
Selling expenses 24,490 9.4 24,490 9.4
General and
administrative
expenses 18,498 7.1 18,498 7.1
Research and
development
expenses 1,872 0.7 1,872 0.7
Restructuring and
other costs 2,433 0.9 (2,433) - -
--------------------------------------------
Operating profit 9,597 3.8 2,433 12,030 4.6
Dorel Home Furnishings
----------------------
Total revenue 151,683 151,683
--------------------------------------------
Gross profit 17,033 11.2 - 17,033 11.2
--------------------------------------------
Selling expenses 4,168 2.7 4,168 2.7
General and
administrative
expenses 6,719 4.4 6,719 4.4
Research and
development
expenses 909 0.6 909 0.6
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Operating profit 5,237 3.5 - 5,237 3.5
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Fourth Quarters Ended December 30,
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2013
Restruc-
turing
and Adjusted
% of other % of Change
Reported revenue costs Adjusted revenue %
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Dorel Juvenile
----------------------
Total revenue 255,254 255,254 13.5
------------------------------------
Gross profit 73,445 28.8 - 73,445 28.8 3.3
------------------------------------
Selling expenses 28,609 11.2 28,609 11.2 11.9
General and
administrative
expenses 20,299 8.0 20,299 8.0 27.7
Research and
development
expenses 8,079 3.2 8,079 3.2 12.4
Restructuring and
other costs (1,930) (0.8) 1,930 - - -
Impairment losses on
goodwill and
trademarks - - - - -
------------------------------------
Operating profit 18,388 7.2 (1,930) 16,458 6.4 (46.4)
Dorel Sports
----------------------
Total revenue 245,465 245,465 6.0
------------------------------------
Gross profit 51,861 21.1 4,075 55,936 22.8 1.7
------------------------------------
Selling expenses 25,715 10.5 25,715 10.5 (4.8)
General and
administrative
expenses 20,333 8.3 20,333 8.3 (9.0)
Research and
development
expenses 1,601 0.6 1,601 0.6 16.9
Restructuring and
other costs 9,639 3.9 (9,639) - - -
------------------------------------
Operating profit (5,427) (2.2) 13,714 8,287 3.4 45.2
Dorel Home Furnishings
----------------------
Total revenue 132,815 132,815 14.2
------------------------------------
Gross profit 15,451 11.6 - 15,451 11.6 10.2
------------------------------------
Selling expenses 4,198 3.2 4,198 3.2 (0.7)
General and
administrative
expenses 5,304 4.0 5,304 4.0 26.7
Research and
development
expenses 945 0.7 945 0.7 (3.9)
------------------------------------
Operating profit 5,004 3.7 - 5,004 3.7 4.7
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Dorel Juvenile - Reconciliation of non-GAAP measures
Year Ended December 30, 2014
Impairment
losses
and other
Reported costs Adjusted
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Total revenue 1,070,513 600 1,071,113
Cost of sales 779,135 (6,218) 772,917
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GROSS PROFIT 291,378 6,818 298,196
Selling expenses 117,959 117,959
General and administrative expenses 93,069 93,069
Research and development expenses 25,229 25,229
Other costs 8,338 (8,338) -
Impairment losses on goodwill and
trademarks 125,821 (125,821) -
----------------------------------------------------------------------------
OPERATING PROFIT (LOSS) (79,038) 140,977 61,939
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Year Ended December 30, 2013
Reported Other costs Adjusted
----------------------------------------------------------------------------
Total revenue 992,882 992,882
Cost of sales 711,259 711,259
----------------------------------------------------------------------------
GROSS PROFIT 281,623 281,623
Selling expenses 110,721 110,721
General and administrative expenses 84,264 84,264
Research and development expenses 22,960 22,960
Other costs 6,520 (6,520) -
----------------------------------------------------------------------------
OPERATING PROFIT 57,158 6,520 63,678
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Dorel Sports - Reconciliation of non-GAAP measures
Year Ended December 30, 2014
Restructuring
and other
Reported costs Adjusted
----------------------------------------------------------------------------
Total revenue 1,053,183 1,053,183
Cost of sales 806,451 (1,175) 805,276
----------------------------------------------------------------------------
GROSS PROFIT 246,732 1,175 247,907
Selling expenses 98,631 98,631
General and administrative expenses 74,720 74,720
Research and development expenses 7,049 7,049
Restructuring and other costs 10,443 (10,443) -
----------------------------------------------------------------------------
OPERATING PROFIT 55,889 11,618 67,507
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Year Ended December 30, 2013
Restructuring
and other
Reported costs Adjusted
----------------------------------------------------------------------------
Total revenue 918,744 918,744
Cost of sales 706,859 (4,075) 702,784
----------------------------------------------------------------------------
GROSS PROFIT 211,885 4,075 215,960
Selling expenses 102,581 102,581
General and administrative expenses 68,054 68,054
Research and development expenses 6,295 6,295
Restructuring and other costs 13,055 (13,055) -
----------------------------------------------------------------------------
OPERATING PROFIT 21,900 17,130 39,030
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
as at as at
December 30, December 30,
2014 2013
------------------------------
CURRENT ASSETS
Cash and cash equivalents $ 47,101 $ 40,074
Trade and other receivables 474,704 456,465
Inventories 633,022 555,567
Other financial assets 4,299 231
Income taxes receivable 15,731 11,626
Prepaid expenses 25,343 26,200
------------------------------
1,200,200 1,090,163
Assets held for sale 1,308 -
------------------------------
1,201,508 1,090,163
------------------------------
NON-CURRENT ASSETS
Property, plant and equipment 226,893 181,299
Intangible assets 519,798 500,381
Goodwill 544,782 637,084
Other financial assets 571 620
Deferred tax assets 31,009 24,356
Other assets 5,398 6,060
------------------------------
1,328,451 1,349,800
------------------------------
$ 2,529,959 $ 2,439,963
------------------------------
------------------------------
LIABILITIES
CURRENT LIABILITIES
Bank indebtedness $ 27,053 $ 72,546
Trade and other payables 490,527 379,311
Other financial liabilities 1,655 3,231
Income taxes payable 19,046 7,075
Long-term debt 62,556 344,374
Provisions 37,727 44,570
------------------------------
638,564 851,107
------------------------------
NON-CURRENT LIABILITIES
Long-term debt 490,188 13,183
Net pension and post-retirement defined
benefit liabilities 46,128 31,701
Deferred tax liabilities 89,199 87,171
Provisions 1,765 1,993
Written put option and forward purchase
agreement liabilities 44,640 92,570
Other financial liabilities 2,063 2,727
Other long-term liabilities 10,428 12,751
------------------------------
684,411 242,096
------------------------------
EQUITY
Share capital 199,927 190,458
Contributed surplus 25,691 26,994
Accumulated other comprehensive income (20,579) 67,824
Other equity 579 -
Retained earnings 1,001,366 1,061,484
------------------------------
1,206,984 1,346,760
------------------------------
$ 2,529,959 $ 2,439,963
------------------------------
------------------------------
DOREL INDUSTRIES INC.
CONSOLIDATED INCOME STATEMENTS
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
(unaudited)
Fourth Quarters Ended Twelve Months Ended
-------------------------------------------------------
December 30, December 30, December 30, December 30,
2014 2013 2014 2013
-------------------------------------------------------
Restated
Sales (1) $ 695,063 $ 625,856 $ 2,661,559 $ 2,417,291
Licensing and
commission income 5,939 7,678 15,995 18,158
-------------------------------------------------------
TOTAL REVENUE 701,002 633,534 2,677,554 2,435,449
Cost of sales (1) 558,057 492,777 2,072,230 1,875,737
-------------------------------------------------------
GROSS PROFIT 142,945 140,757 605,324 559,712
Selling expenses 61,444 59,143 235,776 231,724
General and
administrative
expenses 57,736 50,722 210,691 194,190
Research and
development expenses 11,858 10,625 36,111 32,905
Restructuring and
other costs (1) 9,503 7,709 18,781 19,575
Impairment losses on
goodwill and
trademarks 125,821 - 125,821 -
-------------------------------------------------------
OPERATING PROFIT
(LOSS) (123,417) 12,558 (21,856) 81,318
Finance expenses (20,466) 1,595 8,073 18,665
-------------------------------------------------------
INCOME (LOSS) BEFORE
INCOME TAXES (102,951) 10,963 (29,929) 62,653
Income taxes expense
(recovery) (22,202) (61) (8,660) 4,984
-------------------------------------------------------
NET INCOME (LOSS) $ (80,749) $ 11,024 $ (21,269) $ 57,669
-------------------------------------------------------
-------------------------------------------------------
EARNINGS (LOSS) PER
SHARE
Basic ($2.50) $0.35 ($0.66) $1.81
-------------------------------------------------------
-------------------------------------------------------
Diluted ($2.50) $0.34 ($0.66) $1.79
-------------------------------------------------------
-------------------------------------------------------
SHARES OUTSTANDING
Basic - weighted
average 32,313,250 31,905,793 32,213,733 31,828,510
Diluted - weighted
average 32,313,250 32,245,587 32,213,733 32,190,332
(1) Restructuring and
other costs charged
to:
Sales $ 600 $ - $ 600 $ -
Cost of sales 6,218 4,075 7,393 4,075
Expenses 9,503 7,709 18,781 19,575
-------------------------------------------------------
$ 16,321 $ 11,784 $ 26,774 $ 23,650
-------------------------------------------------------
-------------------------------------------------------
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
Fourth Quarters Ended Twelve Months Ended
----------------------------------------------------
December 30, December 30, December 30, December 30,
2014 2013 2014 2013
----------------------------------------------------
NET INCOME (LOSS) $ (80,749) $ 11,024 $ (21,269) $ 57,669
----------------------------------------------------
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 (32,438) 3,624 (84,220) 8,987
----------------------------------------------------
Net changes in cash flow
hedges:
Net change in unrealized
gains (losses) on
derivatives designated
as cash flow hedges 279 (2,023) 6,425 (1,706)
Reclassification to
income 268 256 956 1,005
Reclassification to the
related non-financial
asset (2,471) 744 (1,488) (314)
Deferred income taxes 676 188 (1,559) (103)
----------------------------------------------------
(1,248) (835) 4,334 (1,118)
----------------------------------------------------
Items that will not be
reclassified to net
income:
Defined benefit plans:
Remeasurements of the
net pension and post-
retirement benefit
liabilities (14,137) 3,980 (14,021) 3,972
Deferred income taxes 5,537 (1,638) 5,504 (1,636)
----------------------------------------------------
(8,600) 2,342 (8,517) 2,336
----------------------------------------------------
TOTAL OTHER
COMPREHENSIVE INCOME
(LOSS) (42,286) 5,131 (88,403) 10,205
----------------------------------------------------
TOTAL COMPREHENSIVE
INCOME (LOSS) $ (123,035) $ 16,155 $ (109,672) $ 67,874
----------------------------------------------------
----------------------------------------------------
DOREL INDUSTRIES INC.
CONSOLIDATED 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
----------------------------------------------------------
----------------------------------------------------------------------------
Balance as at
December 30, 2012 $180,856 $ 27,192 $ 66,391 $ (1,036) $ (7,736)
----------------------------------------------------------------------------
Total
comprehensive
income:
------------------
Net income - - - - -
Other
comprehensive
income (loss) - - 8,987 (1,118) 2,336
----------------------------------------------------------------------------
$ - $ - $ 8,987 $ (1,118) $ 2,336
----------------------------------------------------------------------------
Issued under
stock option
plan 7,605 - - - -
Reclassification
from
contributed
surplus due to
exercise of
stock options 1,838 (1,838) - - -
Reclassification
from
contributed
surplus due to
settlement of
deferred share
units 227 (347) - - -
Repurchase and
cancellation of
shares (68) - - - -
Premium paid on
share
repurchase - - - - -
Share-based
payments - 1,794 - - -
Dividends on
common shares - - - - -
Dividends on
deferred share
units - 193 - - -
----------------------------------------------------------------------------
Balance as at
December 30, 2013 $190,458 $ 26,994 $ 75,378 $ (2,154) $ (5,400)
----------------------------------------------------------------------------
Total
comprehensive
loss:
------------------
Net loss - - - - -
Other
comprehensive
income (loss) - - (84,220) 4,334 (8,517)
----------------------------------------------------------------------------
$ - $ - $ (84,220) $ 4,334 $ (8,517)
----------------------------------------------------------------------------
Issued under
stock option
plan 7,281 - - - -
Reclassification
from
contributed
surplus due to
exercise of
stock options 1,924 (1,924) - - -
Reclassification
from
contributed
surplus due to
settlement of
deferred share
units 264 (484) - - -
Share-based
payments - 907 - - -
Equity component
of convertible
debentures, net
of tax - - - - -
Remeasurement of
written put
option
liabilities - - - -
Dividends on
common shares - - - - -
Dividends on
deferred share
units - 198 - - -
----------------------------------------------------------------------------
Balance as at
December 30, 2014 $199,927 $ 25,691 $ (8,842) $ 2,180 $(13,917)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to
equity holders of
the Company
----------------------------------------------------------
Other Retained Total
Equity Earnings Equity
----------------------------------------------------------
----------------------------------------------------------------------------
Balance as at
December 30, 2012 $ - $ 1,042,446 $ 1,308,113
----------------------------------------------------------------------------
Total
comprehensive
income:
------------------
Net income - 57,669 57,669
Other
comprehensive
income (loss) - - 10,205
----------------------------------------------------------------------------
$ - $ 57,669 $ 67,874
----------------------------------------------------------------------------
Issued under
stock option
plan - - 7,605
Reclassification
from
contributed
surplus due to
exercise of
stock options - - -
Reclassification
from
contributed
surplus due to
settlement of
deferred share
units - - (120)
Repurchase and
cancellation of
shares - - (68)
Premium paid on
share
repurchase - (253) (253)
Share-based
payments - - 1,794
Dividends on
common shares - (38,185) (38,185)
Dividends on
deferred share
units - (193) -
----------------------------------------------------------------------------
Balance as at
December 30, 2013 $ - $ 1,061,484 $ 1,346,760
----------------------------------------------------------------------------
Total
comprehensive
loss:
------------------
Net loss - (21,269) (21,269)
Other
comprehensive
income (loss) - - (88,403)
----------------------------------------------------------------------------
$ - $ (21,269) $ (109,672)
----------------------------------------------------------------------------
Issued under
stock option
plan - - 7,281
Reclassification
from
contributed
surplus due to
exercise of
stock options - - -
Reclassification
from
contributed
surplus due to
settlement of
deferred share
units - - (220)
Share-based
payments - - 907
Equity component
of convertible
debentures, net
of tax 2,037 - 2,037
Remeasurement of
written put
option
liabilities (1,458) - (1,458)
Dividends on
common shares - (38,651) (38,651)
Dividends on
deferred share
units - (198) -
----------------------------------------------------------------------------
Balance as at
December 30, 2014 $ 579 $ 1,001,366 $ 1,206,984
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
Fourth Quarters Ended Twelve Months Ended
------------------------------------------------
December December December December
30, 30, 30, 30,
2014 2013 2014 2013
------------------------------------------------
Restated
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net income (loss) $ (80,749) $ 11,024 $ (21,269) $ 57,669
Items not involving cash:
Depreciation and
amortization 20,927 15,407 65,436 56,269
Impairment losses on
goodwill and trademarks 125,821 - 125,821 -
Unrealized losses (gains)
arising on financial
assets and financial
liabilities classified as
held for trading 167 - 92 -
Finance expenses (20,466) 1,592 8,073 18,665
Restructuring costs 1,830 13,482 4,892 15,432
Income taxes expense
(recovery) (22,202) (61) (8,660) 4,984
Share-based payments 188 108 763 1,489
Defined benefit pension
and post-retirement costs 19 1,020 2,544 3,239
Loss on disposal of
property, plant and
equipment 608 603 617 446
------------------------------------------------
26,143 43,175 178,309 158,193
------------------------------------------------
Net changes in balances
related to operations:
Trade and other
receivables (5,385) 11,812 (14,740) 15,384
Inventories (34,064) (16,577) (74,305) (18,900)
Other financial assets 1,315 164 886 3,060
Prepaid expenses 3,875 (1,324) 506 (5,803)
Other assets (4,864) (485) 665 (3,095)
Trade and other payables 52,250 13,511 68,683 14,337
Net pension and post-
retirement defined
benefit liabilities (867) (964) (3,622) (3,025)
Provisions, other
financial liabilities and
other long-term
liabilities (2,630) 2,032 (11,232) 6,976
------------------------------------------------
9,630 8,169 (33,159) 8,934
------------------------------------------------
Income taxes paid (3,203) (5,378) (25,057) (17,173)
------------------------------------------------
Income taxes received 174 973 7,014 12,793
------------------------------------------------
Interest paid (7,210) (10,229) (26,148) (18,936)
------------------------------------------------
Interest received 114 82 689 469
------------------------------------------------
CASH PROVIDED BY OPERATING
ACTIVITIES 25,648 36,792 101,648 144,280
------------------------------------------------
FINANCING ACTIVITIES
Bank indebtedness (8,952) 2,067 (41,483) 20,442
Increase of long-term debt 142,950 (7,481) 249,033 18,195
Repayments of long-term
debt (689) (1,236) (26,926) (14,243)
Repayments of written put
option liabilities (1,600) - (1,600) (1,995)
Financing costs (5,356) (23) (6,740) (562)
Share repurchase - - - (321)
Issuance of share capital 191 315 7,241 6,740
Dividends on common shares (9,694) (9,572) (38,651) (38,185)
------------------------------------------------
CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES 116,850 (15,930) 140,874 (9,929)
------------------------------------------------
INVESTING ACTIVITIES
Acquisition of businesses (115,808) - (170,551) (71,924)
Additions to property,
plant and equipment (9,697) (12,322) (35,745) (41,801)
Disposals of property,
plant and equipment 41 65 903 410
Additions to intangible
assets (5,840) (4,679) (22,109) (20,489)
------------------------------------------------
CASH USED IN INVESTING
ACTIVITIES (131,304) (16,936) (227,502) (133,804)
------------------------------------------------
Effect of foreign currency
exchange rate changes on
cash and cash equivalents 297 (847) (7,993) 1,216
------------------------------------------------
NET INCREASE IN CASH AND
CASH EQUIVALENTS 11,491 3,079 7,027 1,763
Cash and cash equivalents,
beginning of period 35,610 36,995 40,074 38,311
------------------------------------------------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 47,101 $ 40,074 $ 47,101 $ 40,074
------------------------------------------------
------------------------------------------------
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOURTH QUARTERS ENDED DECEMBER 30
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
Total Dorel Juvenile
------------------------------------------------
2014 2013 2014 2013
Restated Restated
Total revenue (1) $ 701,002 $ 633,534 $ 289,236 $ 255,254
Cost of sales (1) 558,057 492,777 220,214 181,809
------------------------------------------------
Gross profit 142,945 140,757 69,022 73,445
Selling expenses 60,678 58,522 32,020 28,609
General and administrative
expenses 51,144 45,936 25,927 20,299
Research and development
expenses 11,858 10,625 9,077 8,079
Restructuring and other
costs (1) 9,503 7,709 7,070 (1,930)
Impairment losses on
goodwill and trademarks 125,821 - 125,821 -
------------------------------------------------
Operating profit (loss) (116,059) 17,965 $ (130,893) $ 18,388
------------------------
------------------------
Finance expenses (20,466) 1,595
Corporate expenses 7,358 5,407
Income taxes (22,202) (61)
------------------------
Net income (loss) $ (80,749) $ 11,024
------------------------
------------------------
Earnings (loss) per share
Basic ($2.50) $0.35
------------------------
------------------------
Diluted ($2.50) $0.34
------------------------
------------------------
Depreciation and
amortization included in
operating profit (loss) $ 20,883 $ 15,363 $ 16,050 $ 10,337
------------------------------------------------
(1) Restructuring and other
costs charged to:
Total revenue $ 600 $ - $ 600 $ -
Cost of sales 6,218 4,075 6,218 -
Expenses 9,503 7,709 7,070 (1,930)
------------------------------------------------
$ 16,321 $ 11,784 $ 13,888 $ (1,930)
------------------------------------------------
------------------------------------------------
Dorel Sports Dorel Home Furnishings
------------------------------------------------
2014 2013 2014 2013
Restated
Total revenue (1) $ 260,083 $ 245,465 $ 151,683 $ 132,815
Cost of sales (1) 203,193 193,604 134,650 117,364
------------------------------------------------
Gross profit 56,890 51,861 17,033 15,451
Selling expenses 24,490 25,715 4,168 4,198
General and administrative
expenses 18,498 20,333 6,719 5,304
Research and development
expenses 1,872 1,601 909 945
Restructuring and other
costs (1) 2,433 9,639 - -
Impairment losses on
goodwill and trademarks - - - -
------------------------------------------------
Operating profit (loss) $ 9,597 $ (5,427) $ 5,237 $ 5,004
------------------------------------------------
------------------------------------------------
Finance expenses
Corporate expenses
Income taxes
Net income (loss)
Earnings (loss) per share
Basic
Diluted
Depreciation and
amortization included in
operating profit (loss) $ 3,891 $ 4,040 $ 942 $ 986
------------------------------------------------
(1) Restructuring and other
costs charged to:
Total revenue $ - $ - $ - $ -
Cost of sales - 4,075 - -
Expenses 2,433 9,639 - -
------------------------------------------------
$ 2,433 $ 13,714 $ - $ -
------------------------------------------------
------------------------------------------------
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOR THE YEARS ENDED DECEMBER 30
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
Total Dorel Juvenile
----------------------------------------------------
2014 2013 2014 2013
Restated Restated
Total revenue (1) $ 2,677,554 $ 2,435,449 $ 1,070,513 $ 992,882
Cost of sales (1) 2,072,230 1,875,737 779,135 711,259
----------------------------------------------------
Gross profit 605,324 559,712 291,378 281,623
Selling expenses 232,843 229,274 117,959 110,721
General and
administrative expenses 190,883 172,908 93,069 84,264
Research and development
expenses 36,111 32,905 25,229 22,960
Restructuring and other
costs (1) 18,781 19,575 8,338 6,520
Impairment losses on
goodwill and trademarks 125,821 - 125,821 -
----------------------------------------------------
Operating profit (loss) 885 105,050 $ (79,038) $ 57,158
--------------------------
--------------------------
Finance expenses 8,073 18,665
Corporate expenses 22,741 23,732
Income taxes (8,660) 4,984
--------------------------
Net income (loss) $ (21,269) $ 57,669
--------------------------
--------------------------
Earnings (loss) per
share
Basic ($0.66) $1.81
--------------------------
--------------------------
Diluted ($0.66) $1.79
--------------------------
--------------------------
Depreciation and
amortization included
in operating profit
(loss) $ 65,261 $ 56,096 $ 46,407 $ 40,026
----------------------------------------------------
(1) Restructuring and
other costs charged to:
Total revenue $ 600 $ - $ 600 $ -
Cost of sales 7,393 4,075 6,218 -
Expenses 18,781 19,575 8,338 6,520
----------------------------------------------------
$ 26,774 $ 23,650 $ 15,156 $ 6,520
----------------------------------------------------
----------------------------------------------------
Dorel Sports Dorel Home Furnishings
----------------------------------------------------
2014 2013 2014 2013
Restated
Total revenue (1) $ 1,053,183 $ 918,744 $ 553,858 $ 523,823
Cost of sales (1) 806,451 706,859 486,644 457,619
----------------------------------------------------
Gross profit 246,732 211,885 67,214 66,204
Selling expenses 98,631 102,581 16,253 15,972
General and
administrative expenses 74,720 68,054 23,094 20,590
Research and development
expenses 7,049 6,295 3,833 3,650
Restructuring and other
costs (1) 10,443 13,055 - -
Impairment losses on
goodwill and trademarks - - - -
----------------------------------------------------
Operating profit (loss) $ 55,889 $ 21,900 $ 24,034 $ 25,992
----------------------------------------------------
----------------------------------------------------
Finance expenses
Corporate expenses
Income taxes
Net income (loss)
Earnings (loss) per
share
Basic
Diluted
Depreciation and
amortization included
in operating profit
(loss) $ 14,596 $ 11,857 $ 4,258 $ 4,213
----------------------------------------------------
(1) Restructuring and
other costs charged to:
Total revenue $ - $ - $ - $ -
Cost of sales 1,175 4,075 - -
Expenses 10,443 13,055 - -
----------------------------------------------------
$ 11,618 $ 17,130 $ - $ -
----------------------------------------------------
----------------------------------------------------
Contacts: MaisonBrison Communications Rick Leckner (514) 731-0000 Dorel Industries Inc. Jeffrey Schwartz (514) 934-3034
Source: Dorel Industries Inc.
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