Dorel announces improved third quarter results
Juvenile leads the way
- Juvenile segment operating profit improves significantly
- Recreational/Leisure continues to build on its positive trend
- EPS of US$0.63 per diluted share compared to US$0.46 excluding tax benefit in 2011
MONTREAL, Nov. 8, 2012 /PRNewswire/ - Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the third quarter and nine months ended September 30, 2012. Revenue for the quarter increased by US$37.5 million, or 6.5%, to US$613.3 million from US$575.8 million a year ago. Organic revenue growth for the quarter was approximately 5%. Pre-tax income increased 69.5% to US$24.4 million compared to US$14.4 million last year. Net income for the period was US$20.0 million or US$0.63 per diluted share compared to US$23.1 million or US$0.71 per diluted share in 2011. The third quarter of 2011 included a one-time US$8.3 million income tax recovery and excluding this benefit, earnings per diluted share were US$0.63 in the quarter compared to US$0.46 a year ago.
Total revenue for the nine months was up 3.6% to US$1.9 billion from US$1.8 billion in the prior year. Year-to-date pre-tax income has increased to US$94.8 million from US$82.5 million, a 15% improvement. Net income was US$79.5 million or US$2.48 per diluted share, compared to US$77.2 million or US$2.36 per diluted share for the year-to-date in 2011.
"Our core businesses are moving in the right direction despite a difficult economy," said Dorel President and CEO Martin Schwartz. "Operating profits increased significantly in our Juvenile segment thanks largely to tangible progress at Dorel Juvenile Group (DJG) USA and a solid performance at Dorel Europe, despite a year-over-year drop in the value of the Euro. Dorel Chile once again was an important contributor to the quarter, underlining the value of the partnership we established there almost a year ago. Recreational/Leisure did well, particularly in the mass merchant channel. Home Furnishings sales were down slightly due to a reduction in ready-to-assemble furniture sales, partly offset by increases in futons and upholstered furniture. The segment's Internet sales maintained their steady growth trend," commented Mr. Schwartz.
| Summary of Financial Highlights | ||||
| Third Quarters Ended September 30 | ||||
| All figures in thousands of US $, except per share amounts | ||||
| 2012 | 2011 | Change % | ||
| Total revenue | 613,295 | 575,828 | 6.5% | |
| Net income | 19,986 | 23,074 | (13.4%) | |
| Per share - basic | 0.64 | 0.71 | (9.9%) | |
| Per share - diluted | 0.63 | 0.71 | (11.3%) | |
| Average number of shares outstanding - diluted weighted average |
31,878,391 | 32,613,976 | ||
| Summary of Financial Highlights | ||||
| Nine Months Ended September 30 | ||||
| All figures in thousands of US $, except per share amounts | ||||
| 2012 | 2011 | Change % | ||
| Total revenue | 1,868,106 | 1,802,621 | 3.6% | |
| Net income | 79,494 | 77,231 | 2.9% | |
| Per share - basic | 2.51 | 2.37 | 5.9% | |
| Per share - diluted | 2.48 | 2.36 | 5.1% | |
| Average number of shares outstanding - diluted weighted average |
32,041,423 | 32,779,635 | ||
Juvenile Segment
| Third Quarters Ended September 30 | |||||
| 2012 | 2011 | ||||
| $ | % of rev. | $ | % of rev. | Change % | |
| Total revenue | 249,126 | 227,080 | 9.7% | ||
| Gross profit | 69,080 | 27.7% | 50,089 | 22.1% | 37.9% |
| Operating profit | 16,889 | 6.8% | 4,934 | 2.2% | 242.3% |
| Nine Months Ended September 30 | |||||
| 2012 | 2011 | ||||
| $ | % of rev. | $ | % of rev. | Change % | |
| Total revenue | 773,406 | 740,665 | 4.4% | ||
| Gross profit | 212,838 | 27.5% | 183,445 | 24.8% | 16.0% |
| Operating profit | 54,672 | 7.1% | 43,461 | 5.9% | 25.8% |
After adjusting for the impact of varying exchange rates and new businesses acquired, Juvenile segment organic revenue increased approximately 4% in the third quarter and is flat for the year-to-date. This was the second consecutive quarter of organic sales growth for the segment after a decline in the first quarter. Operating profit was US$16.9 million, an increase of US$12.0 million from US$4.9 million in 2011. Year-to-date, operating profit was US$54.7 million, up from last year's US$43.5 million.
A positive contributor to the operating profit was the impact of higher gross margins earned by Dorel Chile which operates retail stores that generate a higher gross profit. The segment's two main operating units, DJG and Dorel Europe, both posted improved gross margins due mainly to more stable costs and a better sales mix. Operating expenses remained in line with the prior year with Dorel Chile accounting for the majority of the dollar increase.
Toward the end of the quarter, Dorel announced the acquisition of a 70% interest in two juvenile product businesses in Colombia and Panama, further increasing its presence in Latin America. The acquisition expands Dorel's ownership of the popular Infanti brand, to which the Company already owns the rights in Chile, Bolivia, Peru and Argentina.
Recreational/Leisure Segment
| Third Quarters Ended September 30 | |||||
| 2012 | 2011 | ||||
| $ | % of rev. | $ | % of rev. | Change % | |
| Total revenue | 228,953 | 209,823 | 9.1% | ||
| Gross profit | 55,295 | 24.2% | 47,055 | 22.4% | 17.5% |
| Operating profit | 12,516 | 5.5% | 10,008 | 4.8% | 25.1% |
| Nine Months Ended September 30 | |||||
| 2012 | 2011 | ||||
| $ | % of rev. | $ | % of rev. | Change % | |
| Total revenue | 701,782 | 659,344 | 6.4% | ||
| Gross profit | 176,918 | 25.2% | 158,642 | 24.1% | 11.5% |
| Operating profit | 55,502 | 7.9% | 49,053 | 7.4% | 13.1% |
The third quarter's sales increase of 9.1% was driven primarily by shipments to the mass market channel. For the year-to-date, both the IBD and mass market channels have increased sales. Excluding the impact of foreign exchange variations on the segment's non-US based businesses, the segment's organic revenue increase was approximately 11% for the quarter and 8% year-to-date.
Operating profit for the segment improved US$2.5 million, or 25%, to US$12.5 million. For the nine months, operating profit was up US$6.4 million or 13.1% to US$55.5. Contributing to the improvement in operating profit was the on-going turnaround at SUGOI. Last year the apparel division lost US$2.2 million during the third quarter, whereas the changes implemented thus far this year resulted in a breakeven situation during the most recent quarter.
The segment's divisions were front and centre at the year's two most important bike shows, held in Europe and in the U.S. Several new Cannondale models were launched for 2013 and Cannondale was the recipient of three Eurobike 2012 awards. Cycling Sports Group (CSG) used the U.S. show to announce the launch of the new GURU Experience, an advanced personalized bike fitting and consultative retail system that will help consumers reach their peak performance and will further position CSG as the go-to bike company.
Home Furnishings Segment
| Third Quarters Ended September 30 | |||||
| 2012 | 2011 | ||||
| $ | % of rev. | $ | % of rev. | Change % | |
| Total revenue | 135,216 | 138,925 | (2.7%) | ||
| Gross profit | 15,184 | 11.2% | 15,709 | 11.3% | (3.3%) |
| Operating profit | 5,813 | 4.3% | 6,748 | 4.9% | (13.9%) |
| Nine Months Ended September 30 | |||||
| 2012 | 2011 | ||||
| $ | % of rev. | $ | % of rev. | Change % | |
| Total revenue | 392,918 | 402,612 | (2.4%) | ||
| Gross profit | 47,488 | 12.1% | 48,498 | 12.0% | (2.1%) |
| Operating profit | 18,298 | 4.7% | 20,765 | 5.2% | (11.9%) |
Home Furnishings third quarter revenues decreased by 2.7% to US$135.2 million, while operating profit dipped 13.9% to US$5.8 million. For the first nine months, revenues decreased 2.4% to US$392.9 million. Operating profit for the first nine months of the year was US$18.3 million versus US$20.8 million in 2011, a decrease of 11.9%, as a result of decreased revenues and a less profitable sales mix.
Gross margins for the quarter were 11.2%, consistent with the 11.3% recorded a year ago. Similarly, for the first nine months, gross margins were 12.1%, close to the 12.0% in 2011. While benefitting from a stable cost environment, offsetting this was a less profitable sales mix. Internet sales for the segment continued their upward progression, maintaining the positive trend established over the past several quarters.
Other
Cash flow from operating activities was US$53.8 million compared to US$105.8 million last year. The major reason was an increase in inventory from US$442.4 million at year end to US$528.7 million as at September 30, 2012. Several factors contributed to this situation including higher inventory in Recreational / Leisure to ensure fulfillment of fourth quarter holiday orders, the earlier transition to the new model year bikes than in 2011 as well as the addition of the new Colombia and Panama businesses. Inventories will decrease significantly in the fourth quarter but will be above last year's closing figure.
Quarterly dividend
The Board of Directors of Dorel declared its regular quarterly dividend of US$0.30 per share on the outstanding number of the Company's Class A Multiple Voting Shares, Class B Subordinate Voting Shares and Deferred Share Units. The dividend is payable on December 6, 2012 to shareholders of record as at the close of business on November 22, 2012.
Outlook
"The total year-to-date operating profit of our three segments has increased by US$15.2 million or 13.4% versus the prior year. We expect this positive trend to continue through the rest of 2012, led by revenue and earnings growth in Juvenile and Recreational / Leisure. Partially offsetting these gains will be lower operating profit in Home Furnishings as that segment continues to face a challenging retail environment. While the other two segments face a similar environment, they are well positioned in their various markets to meet these challenges and it is anticipated these segments will better last year's results," commented Mr. Schwartz.
"We are expecting input costs in the fourth quarter to remain stable and assuming no significant fluctuation in exchange rates, we are confident that the fourth quarter operating profit of our three segments will exceed last year. As a reminder, in last year's fourth quarter we recorded a non-operational gain of US$11.1 million which reduced our corporate expenses and this will not re-occur this year," concluded Mr. Schwartz.
Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, November 8, 2012 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 37306010# on your phone. This recording will be available on Thursday, November 8, 2012 as of 4:00 P.M. until 11:59 P.M. on Thursday, November 15, 2012.
Complete financial statements will be available on the Company's website, www.dorel.com, and will be available through the SEDAR websites.
Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle company. Now in its 50th year, Dorel creates style and excitement in equal measure to safety, quality and value. The Company's lifestyle leadership position is pronounced in both its Juvenile and Bicycle categories with an array of trend-setting products. Dorel's powerfully branded products include Safety 1st, Quinny, Cosco, Maxi-Cosi and Bébé Confort in Juvenile, as well as Cannondale, Schwinn, GT, Mongoose, IronHorse and SUGOI in Recreational/Leisure. Dorel's Home Furnishings segment markets a wide assortment of both domestically produced and imported furniture products, principally within North America. Dorel has annual sales of US$2.4 billion and employs 5,000 people in facilities located in twenty-four countries worldwide.
Caution Regarding Forward Looking Statements
Certain statements included in this press release may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. Except as may be required by Canadian securities laws, Dorel does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from Dorel's expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, Dorel cannot guarantee that any forward-looking statement will materialize. Forward-looking statements are provided in this press release for the purpose of giving information about Management's current expectations and plans and allowing investors and others to get a better understanding of Dorel's operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.
Forward-looking statements made in this press release are based on a number of assumptions that Dorel believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from the Company's expectations expressed in or implied by the forward-looking statements include: general economic conditions; changes in product costs and supply channel; foreign currency fluctuations; customer and credit risk including the concentration of revenues with few customers; costs associated with product liability; changes in income tax legislation or the interpretation or application of those rules; the continued ability to develop products and support brand names; changes in the regulatory environment; continued access to capital resources and the related costs of borrowing; changes in assumptions in the valuation of goodwill and other intangible assets and subject to dividends being declared by the Board of Directors, there can be no certainty that Dorel's Dividend Policy will be maintained. These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in Dorel's annual MD&A and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors outlined in the previously mentioned documents are specifically incorporated herein by reference.
Dorel cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to Dorel or that Dorel currently deems to be immaterial may also have a material adverse effect on our business, financial condition or results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. Dorel therefore cannot describe the expected impact in a meaningful way or in the same way Dorel presents known risks affecting the business.
| DOREL INDUSTRIES INC. | ||||||
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION | ||||||
| ALL FIGURES IN THOUSANDS OF US $ | ||||||
| |
as at September 30, 2012 |
|
as at December 30, 2011 |
|||
| (unaudited) | (unaudited) | |||||
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents | $ | 31,906 | $ | 29,764 | ||
| Trade and other receivables | 437,495 | 403,664 | ||||
| Inventories | 528,745 | 442,409 | ||||
| Other financial assets | 3,297 | 9,867 | ||||
| Income taxes receivable | 11,981 | 17,811 | ||||
| Prepaid expenses | 24,096 | 21,858 | ||||
| 1,037,520 | 925,373 | |||||
| NON-CURRENT ASSETS | ||||||
| Property, plant and equipment | 155,848 | 158,363 | ||||
| Intangible assets | 417,470 | 411,171 | ||||
| Goodwill | 575,091 | 568,849 | ||||
| Other financial assets | 898 | - | ||||
| Deferred tax assets | 25,972 | 31,096 | ||||
| Other assets | 1,632 | 1,717 | ||||
| 1,176,911 | 1,171,196 | |||||
| $ | 2,214,431 | $ | 2,096,569 | |||
| LIABILITIES | ||||||
| CURRENT LIABILITIES | ||||||
| Bank indebtedness | $ | 10,800 | $ | 20,130 | ||
| Trade and other payables | 350,373 | 323,552 | ||||
| Other financial liabilities | 5,279 | 13,065 | ||||
| Income taxes payable | 1,502 | 2,315 | ||||
| Long-term debt | 468 | 17,279 | ||||
| Provisions | 36,016 | 37,096 | ||||
| 404,438 | 413,437 | |||||
| NON-CURRENT LIABILITIES | ||||||
| Long-term debt | 360,844 | 298,160 | ||||
| Pension and post-retirement benefit obligations | 34,871 | 35,258 | ||||
| Deferred tax liabilities | 87,455 | 79,702 | ||||
| Provisions | 1,896 | 1,876 | ||||
| Other financial liabilites | 44,187 | 33,141 | ||||
| Other long-term liabilities | 5,904 | 5,340 | ||||
| 535,157 | 453,477 | |||||
| EQUITY | ||||||
| SHARE CAPITAL | 176,790 | 174,782 | ||||
| CONTRIBUTED SURPLUS | 27,247 | 26,445 | ||||
| ACCUMULATED OTHER COMPREHENSIVE INCOME | 54,389 | 58,842 | ||||
| RETAINED EARNINGS | 1,016,410 | 969,586 | ||||
| 1,274,836 | 1,229,655 | |||||
| $ | 2,214,431 | $ | 2,096,569 |
|||
| DOREL INDUSTRIES INC. | ||||||||||||
| CONDENSED CONSOLIDATED INTERIM INCOME STATEMENTS | ||||||||||||
| ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS | ||||||||||||
| Third Quarters Ended | Nine Months Ended | |||||||||||
| September 30, 2012 |
September 30, 2011 |
September 30, 2012 |
September 30, 2011 |
|||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||
| Sales | $ | 610,717 | $ | 574,092 | $ | 1,858,766 | $ | 1,794,219 | ||||
| Licensing and commission income | 2,578 | 1,736 | 9,340 | 8,402 | ||||||||
| TOTAL REVENUE | 613,295 | 575,828 | 1,868,106 | 1,802,621 | ||||||||
| Cost of sales | 473,736 | 462,975 | 1,430,862 | 1,412,036 | ||||||||
| GROSS PROFIT | 139,559 | 112,853 | 437,244 | 390,585 | ||||||||
| Selling expenses | 55,577 | 48,241 | 164,875 | 140,703 | ||||||||
| General and administrative expenses | 48,418 | 38,521 | 143,156 | 128,781 | ||||||||
| Research and development expenses | 7,293 | 7,048 | 20,863 | 22,378 | ||||||||
| OPERATING PROFIT | 28,271 | 19,043 | 108,350 | 98,723 | ||||||||
| Finance expenses | 3,895 | 4,659 | 13,506 | 16,246 | ||||||||
| INCOME BEFORE INCOME TAXES | 24,376 | 14,384 | 94,844 | 82,477 | ||||||||
| Income taxes expense | 4,390 | (8,690) | 15,350 | 5,246 | ||||||||
| NET INCOME | $ | 19,986 | $ | 23,074 | $ | 79,494 | $ | 77,231 | ||||
| EARNINGS PER SHARE | ||||||||||||
| Basic | $ | 0.64 | $ | 0.71 | $ | 2.51 | $ | 2.37 | ||||
| Diluted | $ | 0.63 | $ | 0.71 | $ | 2.48 | $ | 2.36 | ||||
| SHARES OUTSTANDING | ||||||||||||
| Basic - weighted average | 31,387,163 | 32,506,383 | 31,733,936 | 32,596,280 | ||||||||
| Diluted - weighted average | 31,878,391 | 32,613,976 | 32,041,423 | 32,779,635 | ||||||||
| DOREL INDUSTRIES INC. | |||||||||||
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
| ALL FIGURES IN THOUSANDS OF US $ | |||||||||||
| Third Quarters Ended | Nine Months Ended | ||||||||||
| September 30, 2012 |
September 30, 2011 |
September 30, 2012 |
September 30, 2011 |
||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||
| NET INCOME | $ | 19,986 | $ | 23,074 | $ | 79,494 | $ | 77,231 | |||
| OTHER COMPREHENSIVE INCOME (LOSS): | |||||||||||
| Cumulative translation account: | |||||||||||
| Net change in unrealized foreign currency gains (losses) on translation of net investments in foreign operations, net of tax of nil |
10,102 | (39,256) | 141 | (557) | |||||||
| Net changes in cash flow hedges: | |||||||||||
| Net change in unrealized gains (losses) on derivatives designated as cash flow hedges |
217 | 8,390 | 1,121 | 397 | |||||||
| Reclassification to income | 236 | 251 | 731 | 1,522 | |||||||
| Reclassification to the related non-financial asset | (2,951) | 1,191 | (8,017) | 4,972 | |||||||
| Deferred income taxes | 651 | (2,646) | 1,571 | (1,735) | |||||||
| (1,847) | 7,186 | (4,594) | 5,156 | ||||||||
| Defined benefit plans: | |||||||||||
| Actuarial gains (losses) on defined benefit plans | (14) | 116 | (6) | (6) | |||||||
| Deferred income taxes | 4 | (30) | 1 | (84) | |||||||
| (10) | 86 | (5) | (90) | ||||||||
| TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 8,245 | (31,984) | (4,458) | 4,509 | |||||||
| TOTAL COMPREHENSIVE INCOME (LOSS) | $ | 28,231 | $ | (8,910) | $ | 75,036 | $ | 81,740 | |||
| DOREL INDUSTRIES INC. | |||||||||||||||
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||
| ALL FIGURES IN THOUSANDS OF US $ | |||||||||||||||
| Attributable to equity holders of the Company | |||||||||||||||
| Accumulated other comprehensive income |
Retained earnings | ||||||||||||||
| |
Share Capital |
Contributed Surplus |
Cumulative Translation Account |
Cash Flow Hedges |
Defined Benefit Plans |
Other Retained Earnings |
Total Equity |
||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||
| Balance as at December 30, 2010 | $ | 178,816 | $ | 23,776 | $ | 67,970 | $ | (1,032) | $ | (2,312) | $ | 904,633 | $ | 1,171,851 | |
| Net income | - | - | - | - | - | 77,231 | 77,231 | ||||||||
| Total other comprehensive income (loss) | - | - | (557) | 5,156 | (90) | - | 4,509 | ||||||||
| Issued under stock option plan | 429 | - | - | - | - | - | 429 | ||||||||
| Reclassification from contributed surplus due to exercise of stock options | 89 | (89) | - | - | - | - | - | ||||||||
| Repurchase and cancellation of shares | (3,240) | - | - | - | - | - | (3,240) | ||||||||
| Premium paid on share repurchase | - | - | - | - | - | (9,406) | (9,406) | ||||||||
| Share-based payments | - | 2,160 | - | - | - | - | 2,160 | ||||||||
| Dividends on common shares | - | - | - | - | - | (14,677) | (14,677) | ||||||||
| Dividends on deferred share units | - | 53 | - | - | - | (53) | - | ||||||||
| Balance as at September 30, 2011 | $ | 176,094 | $ | 25,900 | $ | 67,413 | $ | 4,124 | $ | (2,402) | $ | 957,728 | $ | 1,228,857 | |
| Balance as at December 30, 2011 | $ | 174,782 | $ | 26,445 | $ | 52,760 | $ | 6,082 | $ | (7,236) | $ | 976,822 | $ | 1,229,655 | |
| Net income | - | - | - | - | - | 79,494 | 79,494 | ||||||||
| Total other comprehensive income (loss) | - | - | 141 | (4,594) | (5) | - | (4,458) | ||||||||
| Issued under stock option plan | 5,121 | - | - | - | - | - | 5,121 | ||||||||
| Reclassification from contributed surplus due to exercise of stock options | 1,107 | (1,107) | - | - | - | - | - | ||||||||
| Repurchase and cancellation of shares | (4,220) | - | - | - | - | - | (4,220) | ||||||||
| Premium paid on share repurchase | - | - | - | - | - | (13,592) | (13,592) | ||||||||
| Share-based payments | - | 1,822 | - | - | - | - | 1,822 | ||||||||
| Dividends on common shares | - | - | - | - | - | (18,986) | (18,986) | ||||||||
| Dividends on deferred share units | - | 87 | - | - | - | (87) | - | ||||||||
| Balance as at September 30, 2012 | $ | 176,790 | $ | 27,247 | $ | 52,901 | $ | 1,488 | $ | (7,241) | $ | 1,023,651 | $ | 1,274,836 | |
| DOREL INDUSTRIES INC. | ||||||||||||
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS | ||||||||||||
| ALL FIGURES IN THOUSANDS OF US $ | ||||||||||||
| Third Quarters Ended | Nine Months Ended | |||||||||||
| September 30, 2012 |
September 30, 2011 |
September 30, 2012 |
September 30, 2011 |
|||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||
| CASH PROVIDED BY (USED IN): | ||||||||||||
| OPERATING ACTIVITIES | ||||||||||||
| Net income | $ | 19,986 | $ | 23,074 | $ | 79,494 | $ | 77,231 | ||||
| Items not involving cash: | ||||||||||||
| Depreciation and amortization | 13,327 | 14,093 | 39,321 | 41,705 | ||||||||
| Amortization of deferred financing costs | 89 | (270) | 320 | 376 | ||||||||
| Accretion expense on contingent consideration and put option liabilities | 649 | 523 | 2,108 | 1,610 | ||||||||
| Change of assumptions on contingent consideration and put option liabilities | (457) | (113) | (1,430) | (1,086) | ||||||||
| Unrealized (gains)/losses due to foreign exchange exposure on contingent consideration and put option liabilities |
1,249 | (546) | 1,606 | (1,067) | ||||||||
| Other finance expenses | 3,157 | 4,406 | 11,078 | 14,260 | ||||||||
| Income taxes expense | 4,390 | (8,690) | 15,350 | 5,246 | ||||||||
| Share-based payments | 480 | 546 | 1,708 | 1,941 | ||||||||
| Pension and post-retirement defined benefit plans | 716 | 824 | 2,172 | 2,516 | ||||||||
| Loss (gain) on disposal of property, plant and equipment | 4 | 33 | (76) | (26) | ||||||||
| 43,590 | 33,880 | 151,651 | 142,706 | |||||||||
| Net change in balances related to operations: | ||||||||||||
| Trade and other receivables | 17,083 | 36,061 | (33,434) | (27,027) | ||||||||
| Inventories | (19,548) | 45,692 | (76,832) | 63,014 | ||||||||
| Other financial assets | (146) | - | (978) | - | ||||||||
| Prepaid expenses | 1,607 | (2,610) | (2,470) | (4,146) | ||||||||
| Trade and other payables | (45,577) | (40,034) | 26,019 | (30,574) | ||||||||
| Pension and post-retirement benefit obligations | (717) | (411) | (2,472) | (2,510) | ||||||||
| Provisions, other financial liabilities and other long-term liabilities | 396 | (74) | (250) | (691) | ||||||||
| (46,902) | 38,624 | (90,417) | (1,934) | |||||||||
| Income taxes paid | (3,365) | (4,489) | (13,213) | (23,692) | ||||||||
| Income taxes received | 9,686 | 579 | 15,255 | 1,069 | ||||||||
| Interest paid | (2,059) | (2,191) | (10,403) | (12,301) | ||||||||
| Interest received | 313 | - | 885 | - | ||||||||
| CASH PROVIDED BY OPERATING ACTIVITIES | 1,263 | 66,403 | 53,758 | 105,848 | ||||||||
| FINANCING ACTIVITIES | ||||||||||||
| Bank indebtedness | (10,494) | (6,500) | (9,381) | (8,282) | ||||||||
| Increase of long-term debt | 43,883 | - | 62,614 | - | ||||||||
| Repayments of long-term debt | (16,500) | (29,244) | (16,500) | (21,123) | ||||||||
| Repayments of contingent consideration and put option liabilities | (6,804) | (2,431) | (6,972) | (2,431) | ||||||||
| Financing costs | - | 47 | (192) | 34 | ||||||||
| Share repurchase | (863) | (10,089) | (17,812) | (12,646) | ||||||||
| Issuance of share capital | 3,873 | 27 | 4,807 | 429 | ||||||||
| Dividends on common shares | (9,417) | (4,897) | (18,986) | (14,677) | ||||||||
| CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 3,678 | (53,087) | (2,422) | (58,696) | ||||||||
| INVESTING ACTIVITIES | ||||||||||||
| Acquisition of businesses | (10,270) | - | (14,667) | - | ||||||||
| Additions to property, plant and equipment | (5,876) | (8,093) | (20,577) | (23,154) | ||||||||
| Disposals of property, plant and equipment | 15 | 32 | 150 | 142 | ||||||||
| Additions to intangible assets | (4,159) | (5,043) | (14,593) | (14,855) | ||||||||
| CASH USED IN INVESTING ACTIVITIES | (20,290) | (13,104) | (49,687) | (37,867) | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | 2,161 | 988 | 493 | 745 | ||||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (13,188) | 1,200 | 2,142 | 10,030 | ||||||||
| Cash and cash equivalents, beginning of period | 45,094 | 24,578 | 29,764 | 15,748 | ||||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 31,906 | $ | 25,778 | $ | 31,906 | $ | 25,778 | ||||
| DOREL INDUSTRIES INC. | |||||||||||||||||
| INDUSTRY SEGMENTED INFORMATION | |||||||||||||||||
| THIRD QUARTERS ENDED SEPTEMBER 30 | |||||||||||||||||
| ALL FIGURES IN THOUSANDS OF US $ | |||||||||||||||||
| Total | Juvenile | Recreational / Leisure | Home Furnishings | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Total revenue | $ | 613,295 | $ | 575,828 | $ | 249,126 | $ | 227,080 | $ | 228,953 | $ | 209,823 | $ | 135,216 | $ | 138,925 | |
| Cost of sales | 473,736 | 462,975 | 180,046 | 176,991 | 173,658 | 162,768 | 120,032 | 123,216 | |||||||||
| Gross profit | 139,559 | 112,853 | 69,080 | 50,089 | 55,295 | 47,055 | 15,184 | 15,709 | |||||||||
| Selling expenses | 55,038 | 47,742 | 26,149 | 19,394 | 24,569 | 23,967 | 4,320 | 4,381 | |||||||||
| General and administrative expenses | 42,010 | 36,373 | 21,046 | 20,188 | 16,647 | 12,203 | 4,317 | 3,982 | |||||||||
| Research and development expenses | 7,293 | 7,048 | 4,996 | 5,573 | 1,563 | 877 | 734 | 598 | |||||||||
| Operating profit | 35,218 | 21,690 | $ | 16,889 | $ | 4,934 | $ | 12,516 | $ | 10,008 | $ | 5,813 | $ | 6,748 | |||
| Finance expenses | 3,895 | 4,659 | |||||||||||||||
| Corporate expenses | 6,947 | 2,647 | |||||||||||||||
| Income taxes | 4,390 | (8,690) | |||||||||||||||
| Net income | $ | 19,986 | $ | 23,074 | |||||||||||||
| Earnings per Share | |||||||||||||||||
| Basic | $ | 0.64 | $ | 0.71 | |||||||||||||
| Diluted | $ | 0.63 | $ | 0.71 | |||||||||||||
| Depreciation and amortization included in operating profit |
$ | 13,285 | $ | 14,049 | $ | 9,707 | $ | 10,300 | $ | 2,437 | $ | 2,318 | $ | 1,141 | $ | 1,431 | |
| |
|||||||||||||||||
| DOREL INDUSTRIES INC. | |||||||||||||||||
| INDUSTRY SEGMENTED INFORMATION | |||||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30 | |||||||||||||||||
| ALL FIGURES IN THOUSANDS OF US $ | |||||||||||||||||
| Total | Juvenile | Recreational / Leisure | Home Furnishings | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Total revenue | $ | 1,868,106 | $ | 1,802,621 | $ | 773,406 | $ | 740,665 | $ | 701,782 | $ | 659,344 | $ | 392,918 | $ | 402,612 | |
| Cost of sales | 1,430,862 | 1,412,036 | 560,568 | 557,220 | 524,864 | 500,702 | 345,430 | 354,114 | |||||||||
| Gross Profit | 437,244 | 390,585 | 212,838 | 183,445 | 176,918 | 158,642 | 47,488 | 48,498 | |||||||||
| Selling expenses | 163,143 | 139,133 | 77,425 | 60,649 | 72,561 | 65,643 | 13,157 | 12,841 | |||||||||
| General and administrative expenses | 124,766 | 115,795 | 66,031 | 61,460 | 44,973 | 41,369 | 13,762 | 12,966 | |||||||||
| Research and development expenses | 20,863 | 22,378 | 14,710 | 17,875 | 3,882 | 2,577 | 2,271 | 1,926 | |||||||||
| Operating profit | 128,472 | 113,279 | $ | 54,672 | $ | 43,461 | $ | 55,502 | $ | 49,053 | $ | 18,298 | $ | 20,765 | |||
| Finance expenses | 13,506 | 16,246 | |||||||||||||||
| Corporate expenses | 20,122 | 14,556 | |||||||||||||||
| Income taxes | 15,350 | 5,246 | |||||||||||||||
| Net income | $ | 79,494 | $ | 77,231 | |||||||||||||
| Earnings per Share | |||||||||||||||||
| Basic | $ | 2.51 | $ | 2.37 | |||||||||||||
| Diluted | $ | 2.48 | $ | 2.36 | |||||||||||||
| Depreciation and amortization included in operating profit |
$ | 39,198 | $ | 41,571 | $ | 28,941 | $ | 30,455 | $ | 6,734 | $ | 6,874 | $ | 3,523 | $ | 4,242 | |
SOURCE DOREL INDUSTRIES INC.
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