Dorel Reports Q4 and 2015 Year-End Results
- Home Furnishings excels with record year
- Cash flow from operating activities of US$71 million in the quarter
/EINPresswire.com/ -- MONTREAL, QUEBEC -- (Marketwired) -- 03/10/16 -- Dorel Industries Inc. (TSX: DII.B)(TSX: DII.A) today announced results for the fourth quarter and full year ended December 30, 2015. Revenue for the fourth quarter was US$668.9 million down 4.6% from US$701.0 million a year ago. Organic revenue, adjusted for foreign exchange variation rates and business acquisitions, increased by approximately 4% in the quarter. Adjusted net income for the fourth quarter was US$14.1 million or US$0.43 per diluted share compared to adjusted net income of US$11.0 million or US$0.34 per diluted share in the fourth quarter of 2014. Adjusted net income increased despite a net negative after-tax impact of approximately US$9.0 million, or US$0.28 per diluted share, due to the effect of the appreciation of the US dollar versus the prior year. Reported net income for the quarter was US$6.6 million or US$0.20 per diluted share compared to a reported net loss of US$80.7 million or a net loss of US$2.50 per diluted share in 2014.
Revenue for the full year remained flat compared to the previous year at US$2.68 billion, with an organic revenue increase of approximately 4%. Adjusted net income for the year was US$58.0 million or US$1.78 per diluted share compared to adjusted net income of US$84.0 million or US$2.59 per diluted share in 2014. The net negative after-tax impact year-over-year of the appreciation of the US dollar versus the prior year was approximately US$35 million or US$1.08 per diluted share. Reported net income was US$25.7 million or US$0.79 per diluted share, compared to a reported net loss of US$21.3 million or a net loss of US$0.66 per diluted share a year ago.
As detailed below, the reported net income (loss) includes impairment losses on goodwill and intangible assets, restructuring and other costs and remeasurement of forward purchase agreement liabilities totalling US$32.3 million or US$0.99 per diluted share in 2015 and US$105.2 million or US$3.25 per diluted share in 2014. 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. Contained within this press release are reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.
"2015 was characterized by good performances in many of our markets overshadowed by challenging currency rates. Overall for the year, these adverse exchange rates impacted our earnings by approximately US$43 million pre-tax. Excluding this impact we would have exceeded prior year earnings for the year. Each of our foreign-based divisions responded to these currency challenges over the course of the year, as reflected in our fourth quarter results which exceeded last year. Our investments and success in becoming a true omni-channel supplier were evidenced by recent recognition from Wal-Mart in the U.S. where Dorel won the Wal-Mart Supplier of the year award specifically for Omni Channel excellence," commented Martin Schwartz, Dorel President and CEO.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Summary of Financial Information (unaudited)
----------------------------------------------------------------------------
Fourth Quarters Ended December 30
----------------------------------------------------------------------------
All figures in thousands of US $, except per share amounts
----------------------------------------------------------------------------
2015 2014 Change %
----------------------------------------------------------------------------
Total revenue 668,938 701,002 (4.6%)
Adjusted net income 14,116 10,993 28.4%
Per share - Basic 0.44 0.34 29.4%
Per share - Diluted 0.43 0.34 26.5%
Net income (loss) 6,614 (80,749) 108.2%
Per share - Basic 0.20 (2.50) 108.0%
Per share - Diluted 0.20 (2.50) 108.0%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Number of shares outstanding -
Basic weighted average 32,332,643 32,313,250
Diluted weighted average 32,545,163 32,313,250
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Summary of Financial Information (unaudited)
----------------------------------------------------------------------------
Twelve Months Ended December 30
----------------------------------------------------------------------------
All figures in thousands of US $, except per share amounts
----------------------------------------------------------------------------
2015 2014 Change %
----------------------------------------------------------------------------
Total revenue 2,683,357 2,677,554 0.2%
Adjusted net income 58,005 83,979 (30.9%)
Per share - Basic 1.79 2.61 (31.4%)
Per share - Diluted 1.78 2.59 (31.3%)
Net income (loss) 25,704 (21,269) 220.9%
Per share - Basic 0.80 (0.66) 221.2%
Per share - Diluted 0.79 (0.66) 219.7%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Number of shares outstanding -
Basic weighted average 32,324,569 32,213,733
Diluted weighted average 32,527,632 32,213,733
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Dorel Juvenile
All figures in thousands of US $
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Fourth Quarters Ended December 30 (unaudited)
----------------------------------------------------------------------------
2015 2014
----------------------------------------------------------------------------
$ % of rev. $ % of rev. Change %
Total revenue 253,037 289,236 (12.5%)
Adjusted gross
profit 74,699 29.5% 75,840 26.2% (1.5%)
Adjusted
operating
profit 10,180 4.0% 8,816 3.0% 15.5%
Gross profit 74,336 29.4% 69,022 23.9% 7.7%
Operating profit
(loss) 3,015 1.2% (130,893) (45.3%) 102.3%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
All figures in thousands of US $
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Twelve Months Ended December 30 (unaudited)
----------------------------------------------------------------------------
2015 2014
----------------------------------------------------------------------------
$ % of rev. $ % of rev. Change %
Total revenue 1,039,947 1,070,513 (2.9%)
Adjusted gross
profit 284,196 27.3% 298,196 27.9% (4.7%)
Adjusted
operating
profit 43,677 4.2% 61,939 5.8% (29.5%)
Gross profit 282,966 27.2% 291,378 27.2% (2.9%)
Operating profit
(loss) 29,747 2.9% (79,038) (7.4%) 137.6%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Dorel Juvenile's fourth quarter revenue decreased by 12.5% or US$36.2 million to US$253.0 million from the prior year. Excluding the impact of foreign exchange and the acquisition of Dorel Juvenile China in late 2014, organic revenue increased approximately 1%. For the year, Dorel Juvenile's revenue declined by 2.9%, or US$30.6 million to US$1.04 billion from US$1.07 billion in 2014, with organic revenue increasing by approximately 1%. For both the quarter and the year, organic revenue growth was derived mainly from Latin American sales in local currency and renewed success in the sale of wooden juvenile furniture products.
For the quarter, operating profit amounted to US$3.0 million compared to a loss of US$130.9 million a year ago. After removing impairment losses and restructuring and other costs, adjusted operating profit increased by 15.5% or US$1.4 million, to US$10.2 million, from US$8.8 million in 2014. This was despite an approximate net negative impact of US$5 million due to adverse exchange rates. For 2015, operating profit increased by US$108.8 million to US$29.7 million compared to a loss of US$79.0 million a year ago. Excluding impairment losses and restructuring and other costs, adjusted operating profit declined by 29.5%, or US$18.3 million to US$43.7 million, principally due to foreign exchange pressures which had a net negative impact on operating profit of approximately US$20 million with Dorel Juvenile China operating losses accounting for the balance of the decline. This was partly offset by stronger margins related to the implementation of strategic price increases and to the introduction of new products.
Dorel Sports
All figures in thousands of US $
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Fourth Quarters Ended December 30 (unaudited)
----------------------------------------------------------------------------
2015 2014
----------------------------------------------------------------------------
$ % of rev. $ % of rev. Change %
Total revenue 253,694 260,083 (2.5%)
Adjusted gross
profit 51,298 20.2% 56,890 21.9% (9.8%)
Adjusted
operating
profit 9,165 3.6% 12,030 4.6% (23.8%)
Gross profit 51,298 20.2% 56,890 21.9% (9.8%)
Operating profit 8,423 3.3% 9,597 3.7% (12.2%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
All figures in thousands of US $
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Twelve Months Ended December 30 (unaudited)
----------------------------------------------------------------------------
2015 2014
----------------------------------------------------------------------------
$ % of rev. $ % of rev. Change %
Total revenue 1,000,209 1,053,183 (5.0%)
Adjusted gross
profit 214,851 21.5% 247,907 23.5% (13.3%)
Adjusted
operating
profit 42,007 4.2% 67,507 6.4% (37.8%)
Gross profit 212,339 21.2% 246,732 23.4% (13.9%)
Operating profit 10,895 1.1% 55,889 5.3% (80.5%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
For the fourth quarter, Dorel Sports revenue decreased by US$6.4 million or 2.5% to US$253.7 million compared to last year. Organic revenue increased approximately 3%, after removing the impact of varying foreign exchange rates year-over-year. For the year, Dorel Sports revenue decreased US$53.0 million or 5.0% to US$1.0 billion in 2015 compared to US$1.05 billion a year ago. Organic revenue increased by approximately 3%. For both the quarter and the year, organic revenue growth was primarily in the IBD channel due to increased demand of new model year 2016 bicycles and in the U.S. mass channel where sales of battery powered ride-ons also showed strong growth.
Operating profit for the quarter decreased US$1.2 million or 12.2% to US$8.4 million from US$9.6 million a year ago. Excluding restructuring and other costs, adjusted operating profit was US$9.2 million, down US$2.8 million or 23.8% from US$12.0 million. For the year, operating profit was US$10.9 million in 2015, down US$45 million from US$55.9 million the previous year. Excluding impairment losses and restructuring and other costs, adjusted operating profit was US$42.0 million, down US$25.5 million or 37.8% from US$67.5 million last year. All major divisions were negatively affected throughout the year by the strong US dollar and the net negative impact on the segment's operating profit was approximately US$5 million for the quarter and US$29 million for the year.
Expectations for the fourth quarter were for Dorel Sports to exceed prior year in both revenue and operating profit. A combination of unforeseen factors affected the quarter. Dorel's largest customer unexpectedly reduced purchases late in the year. In addition, while sales to IBD customers were up double digits in the second half, expectations were to do even better during the fourth quarter, but this did not materialize. As such, results for the quarter were below expectations.
Dorel Home Furnishings
All figures in thousands of US $
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Fourth Quarters Ended December 30 (unaudited)
----------------------------------------------------------------------------
2015 2014
----------------------------------------------------------------------------
$ % of rev. $ % of rev. Change %
Total revenue 162,207 151,683 6.9%
Gross profit 23,497 14.5% 17,033 11.2% 37.9%
Operating profit 9,514 5.9% 5,237 3.5% 81.7%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
All figures in thousands of US $
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Twelve Months Ended December 30 (unaudited)
----------------------------------------------------------------------------
2015 2014
----------------------------------------------------------------------------
$ % of rev. $ % of rev. Change %
Total revenue 643,201 553,858 16.1%
Gross profit 86,193 13.4% 67,214 12.1% 28.2%
Operating profit 37,871 5.9% 24,034 4.3% 57.6%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Dorel Home Furnishings' fourth quarter revenue increased by US$10.5 million, or 6.9% to US$162.2 million compared to last year's US$151.7 million. For the year, revenue increased US$89.3 million or 16.1% to US$643.2 million compared to US$553.9 million in 2014. Revenue gains for both the quarter and the year were led by increases in e-commerce sales which accounted for 44% of total segment sales in the quarter and 37% of sales for the year.
Operating profit for the quarter was US$9.5 million, an increase of 81.7% from the US$5.2 million of the prior year and for the year, operating profit increased by US$13.8 million, or 57.6% which were both driven by the on-line sales. Investments in technology and infrastructure have allowed Dorel to become best in-class in servicing customers' and consumers' e-commerce needs. E-commerce is a crucial sales channel for furniture companies and Dorel's investment in enhanced technology, improvements in shipping and warehousing and superior customer service all support the e-commerce growth that the segment has delivered.
Details of the impairment losses, restructuring and other costs and remeasurement of forward purchase agreement liabilities:
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Twelve months ended Fourth quarters ended
December 30 December 30
----------------------------------------------------------------------------
2015 2014 2015 2014
----------------------------------------------------------------------------
$ $ $ $
Customer programs and
incentive offerings (in
revenue) - 600 - 600
Restructuring costs (in cost
of sales) (2) 3,742 7,393 363 6,218
----------------------------------------------------------------------------
Recorded within gross profit 3,742 7,993 363 6,818
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Employee severance and
termination benefits 6,815 2,770 3,839 2,020
Accelerated depreciation - 916 - -
Write-down of assets 3,196 2,062 2,196 2,062
Curtailment gain on net
pension defined benefit
liabilities (326) - (326) -
Other associated costs 1,451 1,958 1,016 1,737
----------------------------------------------------------------------------
Recorded within a separate
line in the consolidated
income statements 11,136 7,706 6,725 5,819
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total restructuring costs 14,878 15,699 7,088 12,637
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Acquisition-related costs 3,654 4,533 819 3,081
Brixia investment write-down
and other costs related to
team sponsorship - 6,542 - 603
----------------------------------------------------------------------------
Total other costs recorded
within a separate line in
the consolidated income
statements 3,654 11,075 819 3,684
----------------------------------------------------------------------------
Total restructuring and
other costs 18,532 26,774 7,907 16,321
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Impairment losses on
goodwill and intangible
assets 26,510 125,821 - 125,821
Finance expenses
Loss (gain) on remeasurement
of forward purchase
agreement liabilities (7,810) (25,702) 2,069 (30,789)
----------------------------------------------------------------------------
Total impairment losses,
restructuring and other
costs and remeasurement of
the forward purchase
agreement liabilities
before income taxes (1) 37,232 126,893 9,976 111,353
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total impairment losses,
restructuring and other
costs and remeasurement of
the forward purchase
agreement liabilities after
income taxes 32,301 105,248 7,502 91,742
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total impact on diluted
earnings (loss) per share (0.99) (3.25) (0.23) (2.84)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Includes non-cash
amounts of: 25,312 110,421 4,302 99,847
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(2) Includes write-downs of moulds, accelerated depreciation and inventory
markdowns and relocation of inventory costs.
The results include restructuring charges of US$7.1 million for the quarter and US$14.9 million for the year related to Dorel Juvenile and Dorel Sports and acquisition-related costs of US$0.8 million for the quarter and US$3.7 million for the year for Dorel Juvenile.
Dorel Juvenile is continuing its on-going transformation into a more fully integrated operation in its various markets. Cost savings opportunities will be pursued through 2016. In 2015, US$10.3 million was recorded during the year, the majority, US$7.2 million, in the fourth quarter. The remaining charges related to this restructuring plan will be mostly non-cash write-downs of assets to fair value less costs to sell of underutilized land, buildings and land use rights in China that will be made available for sale in 2016 and as well as severance costs. Annualized cost savings of at least US$9.0 million are expected once the restructuring is completed in late 2016.
Dorel Sports recorded US$0.7 million pre-tax in restructuring charges in the fourth quarter and US$4.6 million during the year, of which US$0.2 million and US$3.7 million, respectively is non-cash and is related to structural changes in both the Cycling Sports Group and SUGOI divisions. As announced during the third quarter, the SUGOI and Cannondale apparel product lines are now consolidated into a single global apparel portfolio with SUGOI as the primary brand. The SUGOI center of excellence has moved to a new location. The restructuring initiatives for Dorel Sports are completed and will deliver annual cost savings of an estimated US$4.0 million as of this year.
In Brazil, as a result of the challenging economy and local market conditions, the rising inflation and the devaluation of the Brazil Real, assumptions on projected earnings and cash flow growth were revised for Caloi resulting in US$26.5 million pre-tax non-cash impairment losses on goodwill and intangible assets recorded in Dorel Sports' third quarter results.
Other
For the quarter, Dorel delivered cash flow from operating activities of US$71 million with an inventory reduction of US$92 million from third quarter levels. With this reduction, inventory returned to 2014 third quarter levels at US$585 million. In 2015, the Company's effective tax rate was a recovery of 11.9% compared to an expense of 28.9% in 2014. Excluding the income taxes on impairment losses and restructuring and other costs in both 2015 and 2014, the Company's adjusted tax rate was 3.6% and 13.4% respectively. The main causes of the variations are changes in the jurisdictions in which the Company generated its income and the recognition of tax benefits as a result of a foreign reorganization.
Outlook
"Overall we finished 2015 with a quarter that exceeded prior year in both organic sales growth and pre-tax profit. We expect this to be the case for full year 2016 with all three segments showing earnings improvements assuming the global economy does not deteriorate any further.
"In Home Furnishings, we are seeing the momentum from 2015 carry over into 2016 and we expect to exceed our record 2015 results with strong earnings growth in 2016," stated Martin Schwartz, Dorel President & CEO.
"Dorel Juvenile as a segment exceeded prior year earnings in the fourth quarter as new products and selective price increases were implemented. As foreign currencies stabilize and with the benefits of our restructuring program and other operational improvements, we expect this to continue going forward.
"Dorel Sports' 2016 product line is exceptional. We expect to expand our market share in the IBD sales channel by leveraging the early sell-in success of the model year 2016 bikes and the expansive and exciting upgrade of our product line in model year 2017. This should help fuel sales in the second half. In an attempt to clear excessive inventory, some of Dorel's key IBD competitors have initiated early season discounting. We are taking the appropriate pricing measures within this environment. An early spring could also help mitigate the situation. Business is good in our mass and sporting goods channels and we anticipate surpassing last year's results in these channels. Despite significant economic and political challenges in Brazil, Caloi should see some year-over-year improvement," concluded Mr. Schwartz.
Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, March 10, 2016 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 30342037 on your phone. This recording will be available on Thursday, March 10, 2016 as of 4:00 P.M. until 11:59 P.M. on Thursday, March 17, 2016.
Complete consolidated 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 10,450 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 financial measures
As a result of impairment losses, restructuring and other costs and remeasurement of forward purchase agreement liabilities incurred in both 2015 and 2014, the Company is including in this press release the following non-GAAP financial measures: "adjusted total revenue", "adjusted cost of sales", "adjusted gross profit", "adjusted operating profit", "adjusted finance expenses", "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 US$, except per share amounts)
Reconciliation of non-GAAP financial measures:
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Results for the fourth quarter ended December 30, 2015
----------------------------------------------------------------------------
Restructuring
Reported and other costs Adjusted
----------------------------------------------------------------------------
$ $ $
TOTAL REVENUE 668,938 - 668,938
Cost of sales 519,807 (363) 519,444
----------------------------------------------------------------------------
GROSS PROFIT 149,131 363 149,494
Selling expenses 60,578 - 60,578
General and administrative
expenses 54,650 - 54,650
Research and development
expenses 10,554 - 10,554
Restructuring and other
costs 7,544 (7,544) -
----------------------------------------------------------------------------
OPERATING PROFIT 15,805 7,907 23,712
Finance expenses 14,814 (2,069) 12,745
----------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 991 9,976 10,967
----------------------------------------------------------------------------
Income taxes (recovery)
expense (5,623) 2,474 (3,149)
Tax rate (567.4%) - (28.7%)
----------------------------------------------------------------------------
NET INCOME 6,614 7,502 14,116
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EARNINGS PER SHARE
Basic 0.20 0.24 0.44
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Diluted 0.20 0.23 0.43
----------------------------------------------------------------------------
----------------------------------------------------------------------------
SHARES OUTSTANDING
Basic - weighted average 32,332,643 32,332,643
Diluted - weighted
average 32,545,163 32,545,163
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Results for the fourth quarter ended December 30, 2014
----------------------------------------------------------------------------
Impairment
losses,
restructuring
and
Reported other costs Adjusted
----------------------------------------------------------------------------
$ $ $
TOTAL REVENUE 701,002 600 701,602
Cost of sales 558,057 (6,218) 551,839
----------------------------------------------------------------------------
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 intangible
assets 125,821 (125,821) -
----------------------------------------------------------------------------
OPERATING PROFIT (LOSS) (123,417) 142,142 18,725
Finance expenses (20,466) 30,789 10,323
----------------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME
TAXES (102,951) 111,353 8,402
----------------------------------------------------------------------------
Income taxes (recovery)
expense (22,202) 19,611 (2,591)
Tax rate 21.6% - (30.8%)
----------------------------------------------------------------------------
NET INCOME (LOSS) (80,749) 91,742 10,993
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EARNINGS (LOSS) PER SHARE
Basic (2.50) 2.84 0.34
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Diluted (2.50) 2.84 0.34
----------------------------------------------------------------------------
----------------------------------------------------------------------------
SHARES OUTSTANDING
Basic - weighted average 32,313,250 32,313,250
Diluted - weighted
average 32,313,250 32,502,846
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Reconciliation of non-GAAP financial measures:
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Results for the year ended December 30, 2015
----------------------------------------------------------------------------
Impairment
losses,
restructuring
and
Reported other costs Adjusted
----------------------------------------------------------------------------
$ $ $
TOTAL REVENUE 2,683,357 - 2,683,357
Cost of sales 2,101,859 (3,742) 2,098,117
----------------------------------------------------------------------------
GROSS PROFIT 581,498 3,742 585,240
Selling expenses 235,030 - 235,030
General and administrative
expenses 209,330 - 209,330
Research and development
expenses 37,595 - 37,595
Restructuring and other
costs 14,790 (14,790) -
Impairment losses on
goodwill and intangible
assets 26,510 (26,510) -
----------------------------------------------------------------------------
OPERATING PROFIT 58,243 45,042 103,285
Finance expenses 35,277 7,810 43,087
----------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 22,966 37,232 60,198
----------------------------------------------------------------------------
Income taxes (recovery)
expense (2,738) 4,931 2,193
Tax rate (11.9%) - 3.6%
----------------------------------------------------------------------------
NET INCOME 25,704 32,301 58,005
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EARNINGS PER SHARE
Basic 0.80 0.99 1.79
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Diluted 0.79 0.99 1.78
----------------------------------------------------------------------------
----------------------------------------------------------------------------
SHARES OUTSTANDING
Basic - weighted average 32,324,569 32,324,569
Diluted - weighted average 32,527,632 32,527,632
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Results for the year ended December 30, 2014
----------------------------------------------------------------------------
Impairment
losses,
restructuring
and
Reported other costs Adjusted
----------------------------------------------------------------------------
$ $ $
TOTAL REVENUE 2,677,554 600 2,678,154
Cost of sales 2,072,230 (7,393) 2,064,837
----------------------------------------------------------------------------
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 intangible
assets 125,821 (125,821) -
----------------------------------------------------------------------------
OPERATING PROFIT (LOSS) (21,856) 152,595 130,739
Finance expenses 8,073 25,702 33,775
----------------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME
TAXES (29,929) 126,893 96,964
----------------------------------------------------------------------------
Income taxes (recovery)
expense (8,660) 21,645 12,985
Tax rate 28.9% - 13.4%
----------------------------------------------------------------------------
NET INCOME (LOSS) (21,269) 105,248 83,979
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EARNINGS (LOSS) PER SHARE
Basic (0.66) 3.27 2.61
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Diluted (0.66) 3.25 2.59
----------------------------------------------------------------------------
----------------------------------------------------------------------------
SHARES OUTSTANDING
Basic - weighted average 32,213,733 32,213,733
Diluted - weighted average 32,213,733 32,440,354
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Reconciliation of non-GAAP financial measures
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Fourth Quarters Ended December 30,
----------------------------------------------------------------------------
2015
----------------------------------------------------------------------------
Restruc-
turing
and
% of other % of
Reported revenue costs Adjusted revenue
----------------------------------------------------------------------------
Dorel Juvenile
TOTAL REVENUE 253,037 100.0 - 253,037 100.0
----------------------------------------------------------------------------
GROSS PROFIT 74,336 29.4 363 74,699 29.5
----------------------------------------------------------------------------
Selling expenses 31,234 12.3 - 31,234 12.3
General and
administrative
expenses 25,430 10.1 - 25,430 10.1
Research and
development
expenses 7,855 3.1 - 7,855 3.1
Restructuring
and other costs 6,802 2.7 (6,802) - -
Impairment
losses on
goodwill, and
intangible
assets - - - - -
----------------------------------------------------------------------------
OPERATING PROFIT
(LOSS) 3,015 1.2 7,165 10,180 4.0
----------------------------------------------------------------------------
Dorel Sports
TOTAL REVENUE 253,694 100.0 - 253,694 100.0
----------------------------------------------------------------------------
GROSS PROFIT 51,298 20.2 - 51,298 20.2
----------------------------------------------------------------------------
Selling expenses 24,226 9.5 - 24,226 9.5
General and
administrative
expenses 16,145 6.4 - 16,145 6.4
Research and
development
expenses 1,762 0.7 - 1,762 0.7
Restructuring
and other costs 742 0.3 (742) - -
----------------------------------------------------------------------------
OPERATING PROFIT 8,423 3.3 742 9,165 3.6
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Reconciliation of non-GAAP financial measures
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Fourth Quarters Ended December 30,
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Impairment
losses
restruc-
turing
and Adjusted
% of other % of Change
Reported revenue costs Adjusted revenue %
----------------------------------------------------------------------------
Dorel Juvenile
TOTAL REVENUE 289,236 100.0 600 289,836 100.0 (12.7)
----------------------------------------------------------------------------
GROSS PROFIT 69,022 23.9 6,818 75,840 26.2 (1.5)
----------------------------------------------------------------------------
Selling expenses 32,020 11.1 - 32,020 11.2 (2.5)
General and
administrative
expenses 25,927 9.0 - 25,927 8.9 (1.9)
Research and
development
expenses 9,077 3.1 - 9,077 3.1 (13.5)
Restructuring
and other costs 7,070 2.5 (7,070) - - -
Impairment
losses on
goodwill, and
intangible
assets 125,821 43.5 (125,821) - - -
----------------------------------------------------------------------------
OPERATING PROFIT
(LOSS) (130,893) (45.3) 139,709 8,816 3.0 15.5
----------------------------------------------------------------------------
Dorel Sports
TOTAL REVENUE 260,083 100.0 - 260,083 100.0 (2.5)
----------------------------------------------------------------------------
GROSS PROFIT 56,890 21.9 - 56,890 21.9 (9.8)
----------------------------------------------------------------------------
Selling expenses 24,490 9.4 - 24,490 9.4 (1.1)
General and
administrative
expenses 18,498 7.2 - 18,498 7.2 (12.7)
Research and
development
expenses 1,872 0.7 - 1,872 0.7 (5.9)
Restructuring
and other costs 2,433 0.9 (2,433) - - -
----------------------------------------------------------------------------
OPERATING PROFIT 9,597 3.7 2,433 12,030 4.6 (23.8)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Dorel Juvenile
Reconciliation of non-GAAP financial measures
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Year Ended December 30
----------------------------------------------------------------------------
2015 2014
----------------------------------------------------------------------------
Impairment
losses,
Restruc- restruc-
turing and turing and
other other
Reported costs Adjusted Reported costs Adjusted
----------------------------------------------------------------------------
$ $ $ $ $ $
TOTAL REVENUE 1,039,947 - 1,039,947 1,070,513 600 1,071,113
Cost of sales 756,981 (1,230) 755,751 779,135 (6,218) 772,917
----------------------------------------------------------------------------
GROSS PROFIT 282,966 1,230 284,196 291,378 6,818 298,196
Selling expenses 115,953 - 115,953 117,959 - 117,959
General and
administrative
expenses 97,128 - 97,128 93,069 - 93,069
Research and
development
expenses 27,438 - 27,438 25,229 - 25,229
Restructuring
and other costs 12,700 (12,700) - 8,338 (8,338) -
Impairment
losses on
goodwill and
intangible
assets - - - 125,821 (125,821) -
----------------------------------------------------------------------------
OPERATING PROFIT
(LOSS) 29,747 13,930 43,677 (79,038) 140,977 61,939
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Dorel Sports
Reconciliation of non-GAAP financial measures
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Year Ended December 30
----------------------------------------------------------------------------
2015 2014
----------------------------------------------------------------------------
Impairment
losses,
restruc- Restruc-
turing and turing and
other other
Reported costs Adjusted Reported costs Adjusted
----------------------------------------------------------------------------
$ $ $ $ $ $
TOTAL REVENUE 1,000,209 - 1,000,209 1,053,183 - 1,053,183
Cost of sales 787,870 (2,512) 785,358 806,451 (1,175) 805,276
----------------------------------------------------------------------------
GROSS PROFIT 212,339 2,512 214,851 246,732 1,175 247,907
Selling expenses 98,819 - 98,819 98,631 - 98,631
General and
administrative
expenses 67,611 - 67,611 74,720 - 74,720
Research and
development
expenses 6,414 - 6,414 7,049 - 7,049
Restructuring
and other costs 2,090 (2,090) - 10,443 (10,443) -
Impairment
losses on
goodwill and
intangible
assets 26,510 (26,510) - - - -
----------------------------------------------------------------------------
OPERATING PROFIT 10,895 31,112 42,007 55,889 11,618 67,507
----------------------------------------------------------------------------
----------------------------------------------------------------------------
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
as at as at
December 30, December 30,
2015 2014
--------------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 33,182 $ 47,101
Trade and other receivables 447,345 474,704
Inventories 584,986 633,022
Other financial assets 4,467 4,299
Income taxes receivable 12,985 15,731
Prepaid expenses 20,234 25,343
--------------------------------
1,103,199 1,200,200
Assets held for sale 11,265 1,308
--------------------------------
1,114,464 1,201,508
--------------------------------
NON-CURRENT ASSETS
Property, plant and equipment 206,542 226,893
Intangible assets 465,447 519,798
Goodwill 476,330 544,782
Other financial assets - 571
Deferred tax assets 37,258 31,009
Other assets 4,904 5,398
--------------------------------
1,190,481 1,328,451
--------------------------------
$ 2,304,945 $ 2,529,959
--------------------------------
--------------------------------
LIABILITIES
CURRENT LIABILITIES
Bank indebtedness $ 54,471 $ 27,053
Trade and other payables 434,178 490,527
Written put option and forward purchase
agreement liabilities 4,104 -
Other financial liabilities 895 1,655
Income taxes payable 15,590 19,046
Long-term debt 32,857 62,556
Provisions 34,267 37,727
--------------------------------
576,362 638,564
--------------------------------
NON-CURRENT LIABILITIES
Long-term debt 465,732 490,188
Net pension and post-retirement defined
benefit liabilities 43,058 46,128
Deferred tax liabilities 72,447 89,199
Provisions 1,702 1,765
Written put option and forward purchase
agreement liabilities 30,788 44,640
Other financial liabilities 1,890 2,063
Other long-term liabilities 10,569 10,428
--------------------------------
626,186 684,411
--------------------------------
EQUITY
Share capital 200,277 199,927
Contributed surplus 26,480 25,691
Accumulated other comprehensive income
(loss) (113,956) (20,579)
Other equity 1,527 579
Retained earnings 988,069 1,001,366
--------------------------------
1,102,397 1,206,984
--------------------------------
$ 2,304,945 $ 2,529,959
--------------------------------
--------------------------------
DOREL INDUSTRIES INC.
CONSOLIDATED INCOME STATEMENTS
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
(unaudited)
Fourth Quarters Ended Twelve Months Ended
----------------------------------------------------
December December December December
30, 30, 30, 30,
2015 2014 2015 2014
----------------------------------------------------
Sales (1) $ 664,399 $ 695,063 $ 2,668,918 $ 2,661,559
Licensing and commission
income 4,539 5,939 14,439 15,995
----------------------------------------------------
TOTAL REVENUE 668,938 701,002 2,683,357 2,677,554
Cost of sales (1) 519,807 558,057 2,101,859 2,072,230
----------------------------------------------------
GROSS PROFIT 149,131 142,945 581,498 605,324
Selling expenses 60,578 61,444 235,030 235,776
General and
administrative expenses 54,650 57,736 209,330 210,691
Research and development
expenses 10,554 11,858 37,595 36,111
Restructuring and other
costs (1) 7,544 9,503 14,790 18,781
Impairment losses on
goodwill and intangible
assets - 125,821 26,510 125,821
----------------------------------------------------
OPERATING PROFIT (LOSS) 15,805 (123,417) 58,243 (21,856)
Finance expenses 14,814 (20,466) 35,277 8,073
----------------------------------------------------
INCOME (LOSS) BEFORE
INCOME TAXES 991 (102,951) 22,966 (29,929)
Income taxes recovery (5,623) (22,202) (2,738) (8,660)
----------------------------------------------------
NET INCOME (LOSS) $ 6,614 $ (80,749) $ 25,704 $ (21,269)
----------------------------------------------------
----------------------------------------------------
EARNINGS (LOSS) PER
SHARE
Basic $ 0.20 $ (2.50) $ 0.80 $ (0.66)
----------------------------------------------------
----------------------------------------------------
Diluted $ 0.20 $ (2.50) $ 0.79 $ (0.66)
----------------------------------------------------
----------------------------------------------------
SHARES OUTSTANDING
Basic - weighted
average 32,332,643 32,313,250 32,324,569 32,213,733
Diluted - weighted
average 32,545,163 32,313,250 32,527,632 32,213,733
(1)Restructuring and
other costs charged to:
Sales $ - $ 600 $ - $ 600
Cost of sales 363 6,218 3,742 7,393
Expenses 7,544 9,503 14,790 18,781
----------------------------------------------------
$ 7,907 $ 16,321 $ 18,532 $ 26,774
----------------------------------------------------
----------------------------------------------------
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
Fourth Quarters Ended Twelve Months Ended
----------------------------------------------------
December December December December
30, 30, 30, 30,
2015 2014 2015 2014
----------------------------------------------------
NET INCOME (LOSS) $ 6,614 $ (80,749) $ 25,704 $ (21,269)
----------------------------------------------------
OTHER COMPREHENSIVE
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 (8,711) (24,821) (80,464) (73,385)
Net gains (losses) on
hedge of net
investments in foreign
operations, net of tax
of nil (3,414) (7,617) (15,215) (10,835)
----------------------------------------------------
(12,125) (32,438) (95,679) (84,220)
----------------------------------------------------
Net changes in cash flow
hedges:
Net change in unrealized
gains (losses) on
derivatives designated
as cash flow hedges 3,774 279 5,264 6,425
Reclassification to
income 170 268 978 956
Reclassification to the
related non-financial
asset (510) (2,471) (5,894) (1,488)
Deferred income taxes (1,108) 676 152 (1,559)
----------------------------------------------------
2,326 (1,248) 500 4,334
----------------------------------------------------
Items that will not be
reclassified to net
income:
Defined benefit plans:
Remeasurements of the
net pension and post-
retirement defined
benefit liabilities 2,700 (14,137) 2,791 (14,021)
Deferred income taxes (959) 5,537 (989) 5,504
----------------------------------------------------
1,741 (8,600) 1,802 (8,517)
----------------------------------------------------
TOTAL OTHER
COMPREHENSIVE LOSS (8,058) (42,286) (93,377) (88,403)
----------------------------------------------------
TOTAL COMPREHENSIVE LOSS $ (1,444) $ (123,035) $ (67,673) $ (109,672)
----------------------------------------------------
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 (loss)
---------------------------------
Cumulative Cash Defined
Share Contributed Translation Flow Benefit
Capital Surplus Account Hedges Plans
---------------------------------------------------------
----------------------------------------------------------------------------
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 of $727 - - - - -
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)
----------------------------------------------------------------------------
Total comprehensive
loss:
Net income - - - - -
Other
comprehensive
income (loss) - - (95,679) 500 1,802
----------------------------------------------------------------------------
$ - $ - $ (95,679)$ 500 $ 1,802
----------------------------------------------------------------------------
Issued under stock
option plan 219 - - - -
Reclassification
from contributed
surplus due to
exercise of stock
options 70 (70) - - -
Reclassification
from contributed
surplus due to
settlement of
deferred share
units 61 (101) - - -
Share-based
payments - 730 - - -
Remeasurement of
written put option
liabilities - - - - -
Dividends on common
shares - - - - -
Dividends on
deferred share
units - 230 - - -
----------------------------------------------------------------------------
Balance as at
December 30, 2015 $ 200,277 $ 26,480 $ (104,521)$ 2,680 $ (12,115)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to equity holders of the Company
--------------------------------------------------------
Other Retained Total
Equity Earnings Equity
--------------------------------------------------------
---------------------------------------------------------------------------
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 of $727 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
---------------------------------------------------------------------------
Total comprehensive
loss:
Net income - 25,704 25,704
Other
comprehensive
income (loss) - - (93,377)
---------------------------------------------------------------------------
$ - $ 25,704 $ (67,673)
---------------------------------------------------------------------------
Issued under stock
option plan - - 219
Reclassification
from contributed
surplus due to
exercise of stock
options - - -
Reclassification
from contributed
surplus due to
settlement of
deferred share
units - - (40)
Share-based
payments - - 730
Remeasurement of
written put option
liabilities 948 - 948
Dividends on common
shares - (38,771) (38,771)
Dividends on
deferred share
units - (230) -
---------------------------------------------------------------------------
Balance as at
December 30, 2015 $ 1,527 $ 988,069 $ 1,102,397
---------------------------------------------------------------------------
---------------------------------------------------------------------------
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,
2015 2014 2015 2014
----------------------------------------------------
CASH PROVIDED BY (USED
IN):
OPERATING ACTIVITIES
Net income (loss) $ 6,614 $ (80,749) $ 25,704 $ (21,269)
Items not involving
cash:
Depreciation and
amortization 15,109 16,377 58,801 60,886
Impairment losses on
goodwill and
intangible assets - 125,821 26,510 125,821
Unrealized losses
(gains) arising on
financial assets and
financial liabilities
classified as held
for trading 143 167 (214) 92
Finance expenses 14,814 (20,466) 35,277 8,073
Restructuring and
other costs 7,907 16,321 18,532 26,774
Income taxes recovery (5,623) (22,202) (2,738) (8,660)
Share-based payments 95 188 389 763
Defined benefit
pension and post-
retirement costs 1,671 19 4,119 2,544
Loss on disposal of
property, plant and
equipment 747 608 1,474 617
----------------------------------------------------
41,477 36,084 167,854 195,641
----------------------------------------------------
Net changes in balances
related to operations:
Trade and other
receivables 271 (5,985) 2,194 (15,340)
Inventories 92,127 (37,794) 6,491 (78,035)
Other financial assets (482) 1,315 (333) 886
Prepaid expenses 14,247 3,875 3,777 506
Other assets 175 (4,614) (391) (2,481)
Trade and other
payables (46,753) 47,508 (42,454) 59,946
Net pension and post-
retirement defined
benefit liabilities (1,285) (867) (3,941) (3,622)
Provisions, other
financial liabilities
and other long-term
liabilities (4,302) (3,749) (11,670) (12,351)
----------------------------------------------------
53,998 (311) (46,327) (50,491)
----------------------------------------------------
Income taxes paid (1,753) (3,203) (15,678) (25,057)
----------------------------------------------------
Income taxes received 104 174 7,204 7,014
----------------------------------------------------
Interest paid (23,089) (7,210) (34,683) (26,148)
----------------------------------------------------
Interest received 88 114 346 689
----------------------------------------------------
CASH PROVIDED BY
OPERATING ACTIVITIES 70,825 25,648 78,716 101,648
----------------------------------------------------
FINANCING ACTIVITIES
Bank indebtedness (4,998) (8,952) 40,312 (41,483)
Increase of long-term
debt - 142,950 32,107 249,033
Repayments of long-
term debt (41,623) (689) (64,134) (26,926)
Repayments of written
put option and
forward purchase
agreement liabilities - (1,600) - (1,600)
Increase of written
put option and
forward purchase
agreement liabilities - - 525 -
Financing costs (342) (5,356) (2,205) (6,740)
Issuance of share
capital 219 191 219 7,241
Dividends on common
shares (9,681) (9,694) (38,771) (38,651)
----------------------------------------------------
CASH (USED IN) PROVIDED
BY FINANCING ACTIVITIES (56,425) 116,850 (31,947) 140,874
----------------------------------------------------
INVESTING ACTIVITIES
Acquisition of
businesses (590) (115,808) (2,326) (170,551)
Additions to property,
plant and equipment (9,692) (9,697) (34,309) (35,745)
Disposals of property,
plant and equipment 417 41 974 903
Additions to
intangible assets (4,253) (5,840) (17,744) (22,109)
----------------------------------------------------
CASH USED IN INVESTING
ACTIVITIES (14,118) (131,304) (53,405) (227,502)
----------------------------------------------------
Effect of foreign
currency exchange
rate changes on cash
and cash equivalents (1,801) 297 (7,283) (7,993)
----------------------------------------------------
NET (DECREASE) INCREASE
IN CASH AND CASH
EQUIVALENTS (1,519) 11,491 (13,919) 7,027
Cash and cash
equivalents, beginning
of period 34,701 35,610 47,101 40,074
----------------------------------------------------
CASH AND CASH
EQUIVALENTS, END OF
PERIOD $ 33,182 $ 47,101 $ 33,182 $ 47,101
----------------------------------------------------
----------------------------------------------------
DOREL INDUSTRIES INC.
SEGMENTED INFORMATION
FOURTH QUARTERS ENDED DECEMBER 30
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
(unaudited)
------------------------------------------------
Total Dorel Juvenile
------------------------------------------------
2015 2014 2015 2014
Total revenue (1) $ 668,938 $ 701,002 $ 253,037 $ 289,236
Cost of sales (1) 519,807 558,057 178,701 220,214
------------------------------------------------
Gross profit 149,131 142,945 74,336 69,022
Selling expenses 60,196 60,678 31,234 32,020
General and administrative
expenses 49,885 51,144 25,430 25,927
Research and development
expenses 10,554 11,858 7,855 9,077
Restructuring and other
costs (1) 7,544 9,503 6,802 7,070
Impairment losses on
goodwill and intangible
assets - 125,821 - 125,821
------------------------------------------------
Operating profit (loss) 20,952 (116,059) $ 3,015 $ (130,893)
------------------------
------------------------
Finance expenses 14,814 (20,466)
Corporate expenses 5,147 7,358
Income taxes recovery (5,623) (22,202)
------------------------
Net income (loss) $ 6,614 $ (80,749)
------------------------
------------------------
Earnings (loss) per share
Basic $ 0.20 $ (2.50)
------------------------
------------------------
Diluted $ 0.20 $ (2.50)
------------------------
------------------------
------------------------------------------------
Depreciation and
amortization included in
operating profit (loss) $ 14,925 $ 16,333 $ 10,998 $ 11,500
------------------------------------------------
(1)Restructuring and other
costs charged to:
Sales $ - $ 600 $ - $ 600
Cost of sales 363 6,218 363 6,218
Expenses 7,544 9,503 6,802 7,070
------------------------------------------------
$ 7,907 $ 16,321 $ 7,165 $ 13,888
------------------------------------------------
------------------------------------------------
------------------------------------------------
Dorel Sports Dorel Home Furnishings
------------------------------------------------
2015 2014 2015 2014
Total revenue (1) $ 253,694 $ 260,083 $ 162,207 $ 151,683
Cost of sales (1) 202,396 203,193 138,710 134,650
------------------------------------------------
Gross profit 51,298 56,890 23,497 17,033
Selling expenses 24,226 24,490 4,736 4,168
General and administrative
expenses 16,145 18,498 8,310 6,719
Research and development
expenses 1,762 1,872 937 909
Restructuring and other
costs (1) 742 2,433 - -
Impairment losses on
goodwill and intangible
assets - - - -
------------------------------------------------
Operating profit (loss) $ 8,423 $ 9,597 $ 9,514 $ 5,237
------------------------------------------------
------------------------------------------------
Finance expenses
Corporate expenses
Income taxes recovery
Net income (loss)
Earnings (loss) per share
Basic
Diluted
------------------------------------------------
Depreciation and
amortization included in
operating profit (loss) $ 3,187 $ 3,891 $ 740 $ 942
------------------------------------------------
(1)Restructuring and other
costs charged to:
Sales $ - $ - $ - $ -
Cost of sales - - - -
Expenses 742 2,433 - -
------------------------------------------------
$ 742 $ 2,433 $ - $ -
------------------------------------------------
------------------------------------------------
DOREL INDUSTRIES INC.
SEGMENTED INFORMATION
FOR THE TWELVE MONTHS ENDED DECEMBER 30
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
(unaudited)
------------------------------------------------
Total Dorel Juvenile
------------------------------------------------
2015 2014 2015 2014
Total revenue (1) $2,683,357 $2,677,554 $ 1,039,947 $1,070,513
Cost of sales (1) 2,101,859 2,072,230 756,981 779,135
------------------------------------------------
Gross profit 581,498 605,324 282,966 291,378
Selling expenses 232,413 232,843 115,953 117,959
General and administrative
expenses 191,677 190,883 97,128 93,069
Research and development
expenses 37,595 36,111 27,438 25,229
Restructuring and other
costs (1) 14,790 18,781 12,700 8,338
Impairment losses on
goodwill and intangible
assets 26,510 125,821 - 125,821
------------------------------------------------
Operating profit (loss) 78,513 885 $ 29,747 $ (79,038)
------------------------
------------------------
Finance expenses 35,277 8,073
Corporate expenses 20,270 22,741
Income taxes recovery (2,738) (8,660)
------------------------
Net income (loss) $ 25,704 $ (21,269)
------------------------
------------------------
Earnings (loss) per share
Basic $ 0.80 $ (0.66)
------------------------
------------------------
Diluted $ 0.79 $ (0.66)
------------------------
------------------------
------------------------------------------------
Depreciation and
amortization included in
operating profit (loss) $ 58,262 $ 60,711 $ 40,901 $ 41,857
------------------------------------------------
(1)Restructuring and other
costs charged to:
Sales $ - $ 600 $ - $ 600
Cost of sales 3,742 7,393 1,230 6,218
Expenses 14,790 18,781 12,700 8,338
------------------------------------------------
$ 18,532 $ 26,774 $ 13,930 $ 15,156
------------------------------------------------
------------------------------------------------
------------------------------------------------
Dorel Sports Dorel Home Furnishings
------------------------------------------------
2015 2014 2015 2014
Total revenue (1) $ 1,000,209 $ 1,053,183 $ 643,201 $ 553,858
Cost of sales (1) 787,870 806,451 557,008 486,644
------------------------------------------------
Gross profit 212,339 246,732 86,193 67,214
Selling expenses 98,819 98,631 17,641 16,253
General and administrative
expenses 67,611 74,720 26,938 23,094
Research and development
expenses 6,414 7,049 3,743 3,833
Restructuring and other
costs (1) 2,090 10,443 - -
Impairment losses on
goodwill and intangible
assets 26,510 - - -
------------------------------------------------
Operating profit (loss) $ 10,895 $ 55,889 $ 37,871 $ 24,034
------------------------------------------------
------------------------------------------------
Finance expenses
Corporate expenses
Income taxes recovery
Net income (loss)
Earnings (loss) per share
Basic
Diluted
------------------------------------------------
Depreciation and
amortization included in
operating profit (loss) $ 13,130 $ 14,596 $ 4,231 $ 4,258
------------------------------------------------
(1)Restructuring and other
costs charged to:
Sales $ - $ - $ - $ -
Cost of sales 2,512 1,175 - -
Expenses 2,090 10,443 - -
------------------------------------------------
$ 4,602 $ 11,618 $ - $ -
------------------------------------------------
------------------------------------------------
Contacts:
MaisonBrison Communications
Rick Leckner
(514) 731-0000
Dorel Industries Inc.
Jeffrey Schwartz
(514) 934-3034
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
