Dorel posts another impressive quarter
- Organic revenue growth of almost 10%
- Earnings improve in difficult cost environment
EXCHANGESTSX: DII.B, DII.A
</pre>
<p/>
<p><span class="xn-location">MONTREAL</span>, <span class="xn-chron">Aug. 5</span> /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A) today announced strong results for the second quarter ended <span class="xn-chron">June 30, 2010</span>. Total revenue for the period was up 10.3% to US$607.7 million from US$551.1 million for the same quarter a year ago. Net income was US$35.1 million or US$1.05 per diluted share compared with US$24.8 million or US$0.74 per diluted share for the corresponding quarter of 2009.</p>
<p>Year-to-date revenue was US$1.2 billion, up 11.9% from US$1.08 billion last year. Net income rose to US$72.5 million or US$2.18 per diluted share compared to US$52.8 million or US$1.58 per diluted share for the first half of 2009. Organic revenue growth in both the quarter and year-to-date was approximately 9.5%.</p>
<p>2009 results included significant "mark-to-market" losses on foreign exchange hedging instruments in the pre-tax amount of US$12.6 million in the quarter and US$12.1 million for the first half of the year. After tax, these losses represented the equivalent of US$0.27 per diluted share for the quarter and US$0.25 per diluted share for the first six months. While earnings in 2010 do not include material mark-to-market amounts, currency rate variations versus last year have significantly reduced earnings in all three segments. For the quarter this negative impact reduced pre-tax earnings by approximately US$11 million.</p>
<p>"We are proud of this quarter's results. Despite negative factors such as foreign exchange, high input costs and increasing ocean freight rates, our divisions performed well and succeeded in building business slowly but steadily," said Dorel, President and Chief Executive Officer <span class="xn-person">Martin Schwartz</span>. "We maintained our pace of innovation and accelerated marketing support. Solid top-line results, in conjunction with our cost and productivity efforts, enabled us to deliver meaningful profit improvement year over year.</p>
<p>"We are seeing the benefits of the on-going investments in our bicycle business through improved product development, solidifying our structure and promoting our brands. Our brands are gaining wider acceptance and our bicycles are more in demand. As we continue to capitalize on our strong business model in Home Furnishings, that segment was again a significant contributor to profits as consumers recognize the value of our products, particularly during these uncertain times."</p>
<p/>
<pre>
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Summary of Financial Highlights
-------------------------------------------------------------------------
Second Quarters Ended June 30
-------------------------------------------------------------------------
All figures in thousands of US $, except per share amounts
2010 2009 Change %
-------------------------------------------------------------------------
Revenues 607,695 551,123 10.3%
Net income 35,131 24,764 41.9%
Per share - Basic 1.07 0.74 44.6%
Per share - Diluted 1.05 0.74 41.9%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Average number of shares
outstanding - diluted weighted
average 33,316,586 33,388,415
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Summary of Financial Highlights
-------------------------------------------------------------------------
Six Months Ended June 30
-------------------------------------------------------------------------
All figures in thousands of US $, except per share amounts
2010 2009 Change %
-------------------------------------------------------------------------
Revenues 1,204,008 1,076,353 11.9%
Net income 72,498 52,793 37.3%
Per share - Basic 2.20 1.58 39.2%
Per share - Diluted 2.18 1.58 38.0%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Average number of shares
outstanding - diluted weighted
average 33,292,611 33,384,027
-------------------------------------------------------------------------
-------------------------------------------------------------------------
</pre>
<p/>
<p>Juvenile Segment</p>
<p/>
<pre>
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Second Quarters Ended June 30
-------------------------------------------------------------------------
2010 2009
-------------------------------------------------------------------------
$ % of rev. $ % of rev. Change %
Revenues 259,791 244,672 6.2%
Gross Profit 69,149 26.6% 59,593 24.4% 16.0%
Earnings from Operations 25,623 9.9% 16,725 6.8% 53.2%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Six Months Ended June 30
-------------------------------------------------------------------------
2010 2009
-------------------------------------------------------------------------
$ % of rev. $ % of rev. Change %
Revenues 545,584 498,633 9.4%
Gross Profit 151,907 27.8% 132,303 26.5% 14.8%
Earnings from Operations 58,400 10.7% 45,445 9.1% 28.5%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
</pre>
<p/>
<p>Second quarter Juvenile revenue increased 6.2%, or US$15.1 million, to US$259.8 million. Organic revenue growth was approximately 8% in the quarter. This is consistent with strong first quarter organic revenue growth of just over 7%. Nearly two-thirds of the second quarter increase was in <span class="xn-location">North America</span> where Dorel Juvenile Group has maintained a steady pipeline of new products and has distinguished itself as a reliable "go to" supplier for its customers. Dorel <span class="xn-location">Brazil</span>, benefitting from a substantial demand in car seats due to new government legislation, had an excellent quarter and accounted for one-third of the improvement. Confirming the first half's improved retail climate in <span class="xn-location">Europe</span>, in Euro terms, revenues increased by approximately 8% over 2009.</p>
<p>Earnings in 2009 were reduced by mark-to-market losses on foreign exchange contracts and if these losses are excluded, earnings from operations in the 2009 quarter were US$29.4 million compared to 2010 earnings of US$25.6 million. Earnings in 2010 are being adversely affected by the decline in value of the Euro versus last year. While partially offset by a stronger Canadian dollar, as a whole, the negative impact on the segment in the second quarter of 2010 was around US$6 million pre-tax versus the prior year. Year-to-date this negative impact was also approximately US$6 million.</p>
<p/>
<p>Recreational/Leisure Segment</p>
<p/>
<pre>
-------------------------------------------------------------------------
Second Quarters Ended June 30
-------------------------------------------------------------------------
2010 2009
-------------------------------------------------------------------------
$ % of rev. $ % of rev. Change %
Revenues 214,888 199,093 7.9%
Gross Profit 51,519 24.0% 44,252 22.2% 16.4%
Earnings from Operations 17,091 8.0% 16,009 8.0% 6.8%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Six Months Ended June 30
-------------------------------------------------------------------------
2010 2009
-------------------------------------------------------------------------
$ % of rev. $ % of rev. Change %
Revenues 396,565 360,521 10.0%
Gross Profit 97,642 24.6% 81,280 22.5% 20.1%
Earnings from Operations 32,185 8.1% 25,986 7.2% 23.9%
-------------------------------------------------------------------------
</pre>
<p/>
<p/>
<p>Second quarter Recreational/Leisure revenue increased by US$15.8 million, or 7.9%, to US$214.9 million. Year-to-date revenues are up 10.0% or US$36.0 million to US$396.6 million. The organic revenue increase was approximately 5% for both the quarter and year-to-date when the impact of new business acquisitions during 2009 and foreign exchange rate variations are excluded. Though less significant than Juvenile, earnings in 2010 are being negatively affected by the value of the Euro.</p>
<p>Cycling Sports Group (CSG) sales were up considerably over last year with exceptional demand for the division's elite racing bicycles such as the Cannondale SuperSix. As in the first quarter, demand for new model year products remains strong across all brands resulting in expansion of the dealer base and increases in multi-brand dealers.</p>
<p>Schwinn experienced a strong increase in POS year-over-year, due to the multi-million dollar advertising campaign launched in mid April, excellent retailer support and good early spring weather. While increasing selling, general and administration costs, the ad campaign has been effective in enhancing the Schwinn brand. Sales to the segment's mass merchant customers were hindered by a lack of supply due to the global shortage of ocean containers, a situation which is improving.</p>
<p/>
<p>Home Furnishings Segment</p>
<p/>
<pre>
-------------------------------------------------------------------------
Second Quarters Ended June 30
-------------------------------------------------------------------------
2010 2009
-------------------------------------------------------------------------
$ % of rev. $ % of rev. Change %
Revenues 133,016 107,358 23.9%
Gross Profit 20,092 15.1% 17,270 16.1% 16.3%
Earnings from Operations 11,292 8.5% 7,713 7.2% 46.4%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Six Months Ended June 30
-------------------------------------------------------------------------
2010 2009
-------------------------------------------------------------------------
$ % of rev. $ % of rev. Change %
Revenues 261,859 217,199 20.6%
Gross Profit 39,940 15.3% 30,742 14.2% 29.9%
Earnings from Operations 22,019 8.4% 12,098 5.6% 82.0%
-------------------------------------------------------------------------
</pre>
<p/>
<p>Home Furnishings revenues increased 23.9% to US$133.0 million and by 20.6% to US$261.9 million for the second quarter and first half respectively. The increase was at the majority of the segment's divisions as its value-oriented furniture products continued to sustain good POS levels. Earnings for the quarter were improved at US$11.3 million in 2010, an increase of 46.4% from the prior year. Year-to-date earnings have increased 82.0%.</p>
<p>These gains were led by the turnaround at Cosco Home & Office which has produced solid earnings improvement. The progress was achieved despite a higher cost environment and a much stronger Canadian dollar which reduces the segment's earnings as two of its plants are located in <span class="xn-location">Canada</span> and the majority of their production is shipped to the US.</p>
<p/>
<p>Taxes</p>
<p/>
<p>The tax rate in the second quarter was 19.9% and year-to-date is 21.5%, in line with expectations. This compares to 16.9% for the quarter and 16.7% year-to-date in 2009. The increase is due to variations in the jurisdictions in which the Company generated its income year over year. The Company maintains its expectation that the 2010 tax rate will be in the range of 18% to 22%.</p>
<p/>
<p>Quarterly dividend</p>
<p/>
<p>The Board of Directors of Dorel declared its regular quarterly dividend of US$0.15 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 <span class="xn-chron">September 2, 2010</span> to shareholders of record as at the close of business on <span class="xn-chron">August 19, 2010</span>.</p>
<p/>
<p>Outlook</p>
<p/>
<p>Dorel's record results for the first six months have set the stage for a solid year. Revenues are expected to continue to exceed prior year levels. However the pace of earnings established during the first half will not be maintained in the third quarter, due principally to challenges in the Juvenile segment.</p>
<p>In its first quarter earnings release, the Company stated that margins could be affected by rising commodity and freight costs as the year progressed. While margins in the second quarter declined from first quarter levels, the impact of these rising costs was moderate. As the Company enters the third quarter, these issues, as well as the impact of foreign exchange rates will affect earnings in the third quarter. While rising commodity prices are expected to ease, it will take the current quarter to work through the existing inventory purchased at higher prices.</p>
<p>"We expect to see an easing of these headwinds in the fourth quarter. Juvenile will be introducing new products which will provide some pricing relief and a better mix of sales. This combined with more stable commodity costs is expected to improve margins as we move into the New Year. Our Recreational/Leisure and Home Furnishings segments are poised to perform well during the second half. Our focus is being maintained on innovative, value-added products. We will maintain our investments in this important area to ensure that retailers can consistently depend on Dorel for quality and reliability. As a leader in many of our categories, we will continue to offer consumers the products they need at popular price points," commented <span class="xn-person">Mr. Schwartz</span>.</p>
<p/>
<p>Conference Call</p>
<p/>
<p>Dorel Industries Inc. will hold a conference call to discuss these results today, <span class="xn-chron">August 5, 2010</span> at <span class="xn-chron">1:00 P.M. Eastern Time</span>. Interested parties can join the call by dialling 1-888-231-8191. The conference call can also be accessed via live webcast at <a href="http://www.dorel.com">www.dorel.com</a> or <a href="http://www.newswire.ca">www.newswire.ca</a>. If you are unable to call in at this time, you may access a tape recording of the meeting by calling 1-800-642-1687 and entering the passcode 87309516 on your phone. This tape recording will be available on <span class="xn-chron">Thursday, August 5, 2010</span> as of <span class="xn-chron">3:00 P.M.</span> until <span class="xn-chron">11:59 P.M.</span> on <span class="xn-chron">Thursday, August 12, 2010</span>.</p>
<p/>
<p>Complete financial statements will be available on the Company's website, <a href="http://www.dorel.com">www.dorel.com</a>, and will be available through the SEDAR websites.</p>
<p/>
<p>Profile</p>
<p/>
<p>Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle company. Established in 1962, 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 furniture products, both domestically produced and imported. Dorel is a US$2 billion company with 4500 employees, facilities in nineteen countries, and sales worldwide.</p>
<p/>
<p>Caution Regarding Forward Looking Statements</p>
<p/>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p/>
<p/>
<pre>
DOREL INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
ALL FIGURES IN THOUSANDS OF US $
as at as at
June 30, December 30,
2010 2009
------------- -------------
(unaudited) (audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 33,987 $19,847
Accounts receivable 397,880 349,990
Income taxes receivable 14,029 16,264
Inventories 446,438 399,866
Prepaid expenses 18,908 17,358
Future income taxes 41,774 38,042
------------ -------------
953,016 841,367
PROPERTY, PLANT AND EQUIPMENT 146,272 153,279
INTANGIBLE ASSETS 381,357 401,831
GOODWILL 537,578 569,824
OTHER ASSETS 34,433 35,879
------------ -------------
$ 2,052,656 $ 2,002,180
------------ -------------
------------ -------------
LIABILITIES
CURRENT LIABILITIES
Bank indebtedness $ 2,519 $ 1,987
Accounts payable and accrued liabilities 425,341 339,294
Income taxes payable 27,755 26,970
Future income taxes 140 85
Current portion of long-term debt 10,506 122,508
------------ -------------
466,261 490,844
------------ -------------
LONG-TERM DEBT 318,806 227,075
------------ -------------
PENSION & POST-RETIREMENT BENEFIT OBLIGATIONS 20,179 20,939
------------ -------------
FUTURE INCOME TAXES 119,508 128,984
------------ -------------
OTHER LONG-TERM LIABILITIES 24,091 25,139
------------ -------------
SHAREHOLDERS' EQUITY
CAPITAL STOCK 178,155 174,816
------------ -------------
CONTRIBUTED SURPLUS 21,936 20,311
------------ -------------
RETAINED EARNINGS 876,621 818,707
ACCUMULATED OTHER COMPREHENSIVE INCOME 27,099 95,365
------------ -------------
903,720 914,072
------------ -------------
1,103,811 1,109,199
------------ -------------
$ 2,052,656 $ 2,002,180
------------ -------------
------------ -------------
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF INCOME
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
Second Quarters Ended Six Months Ended
--------------------------- ---------------------------
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
------------- ------------ ------------ -------------
(unaudited) (unaudited) (unaudited) (unaudited)
Sales $ 604,174 $ 547,253 $ 1,197,870 $ 1,068,668
Licensing and
commission income 3,521 3,870 6,138 7,685
------------- ------------ ------------ -------------
TOTAL REVENUE 607,695 551,123 1,204,008 1,076,353
------------- ------------ ------------ -------------
EXPENSES
Cost of sales 466,935 430,008 914,519 832,028
Selling, general
and administra-
tive expenses 82,217 77,482 167,774 153,810
Depreciation and
amortization 7,247 6,311 14,723 11,990
Research and
development
costs 2,853 3,114 6,780 6,487
Interest 4,567 4,405 7,845 8,657
------------- ------------ ------------ -------------
563,819 521,320 1,111,641 1,012,972
------------- ------------ ------------ -------------
Income before
income taxes 43,876 29,803 92,367 63,381
Income taxes 8,745 5,039 19,869 10,588
------------- ------------ ------------ -------------
NET INCOME $ 35,131 $ 24,764 $ 72,498 $ 52,793
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
EARNINGS PER
SHARE
Basic $ 1.07 $ 0.74 $ 2.20 $ 1.58
------ ------ ------ ------
------ ------ ------ ------
Diluted $ 1.05 $ 0.74 $ 2.18 $ 1.58
------ ------ ------ ------
------ ------ ------ ------
SHARES OUTSTANDING
Basic -
weighted
average 32,952,376 33,312,383 32,943,021 33,356,817
Diluted -
weighted
average 33,316,586 33,388,415 33,292,611 33,384,027
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
Second Quarters Ended Six Months Ended
--------------------------- ---------------------------
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
------------- ------------ ------------ -------------
(unaudited) (unaudited) (unaudited) (unaudited)
NET INCOME $ 35,131 $ 24,764 $ 72,498 $ 52,793
------------- ------------ ------------ -------------
OTHER
COMPREHENSIVE
INCOME:
Cumulative
----------
translation
-----------
adjustment:
-----------
Net change in
unrealized
foreign
currency
gains (losses)
on translation
of net
investments
in self-sus-
taining foreign
operations, net
of tax of nil (39,671) 27,786 (67,567) 658
------------- ------------ ------------ -------------
Net changes in
--------------
cash flow hedges:
-----------------
Net change in
unrealized gains
(losses) on
derivatives
designated as
cash flow hedges (2,094) 1,372 (1,345) 841
Reclassification
to income or to
the related
non financial
asset (519) 221 (681) 221
Future income
taxes 1,121 (1,026) 1,327 (684)
------------- ------------ ------------ -------------
(1,492) 567 (699) 378
TOTAL OTHER
COMPREHENSIVE
INCOME (41,163) 28,353 (68,266) 1,036
------------- ------------ ------------ -------------
TOTAL
COMPREHENSIVE
INCOME $ (6,032) $ 53,117 $ 4,232 $ 53,829
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
ALL FIGURES IN THOUSANDS OF US $
Six Months Ended
----------------------------
June 30, June 30,
2010 2009
------------- -------------
(unaudited) (unaudited)
CAPITAL STOCK
Balance, beginning of period $ 174,816 $ 177,422
Issued under stock option plan 3,654 -
Reclassification from contributed
surplus due to exercice of stock options 884 -
Repurchase and cancellation of shares (1,199) (1,074)
------------- -------------
Balance, end of period 178,155 176,348
------------- -------------
CONTRIBUTED SURPLUS
Balance, beginning of period 20,311 16,070
Exercice of stock options (884) -
Stock-based compensation 2,509 1,859
------------- -------------
Balance, end of period 21,936 17,929
------------- -------------
RETAINED EARNINGS
Balance, beginning of period 818,707 738,113
Net income 72,498 52,793
Adjustment to opening retained earnings
from adopting a new accounting standard
for inventories, net of tax of $1,415 - (2,096)
Premium paid on share repurchase (5,495) (2,401)
Dividends on common shares (9,065) (8,360)
Dividends on deferred share units (24) (13)
------------- -------------
Balance, end of period 876,621 778,036
------------- -------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance, beginning of period 95,365 83,139
Total other comprehensive income (68,266) 1,036
------------- -------------
Balance, end of period 27,099 84,175
------------- -------------
TOTAL SHAREHOLDERS' EQUITY $ 1,103,811 $ 1,056,488
------------- -------------
------------- -------------
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
Second Quarters Ended Six Months Ended
--------------------------- ---------------------------
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
------------- ------------ ------------ -------------
(unaudited) (unaudited) (unaudited) (unaudited)
CASH PROVIDED BY
(USED IN):
OPERATING
ACTIVITIES
Net income $ 35,131 $ 24,764 $ 72,498 $ 52,793
Items not
involving cash:
Depreciation and
amortization 12,407 11,371 25,135 21,839
Amortization of
deferred
financing costs 50 56 79 106
Accretion expense
on contingent
considerations 466 - 941 -
Future income
taxes 222 (4,566) (6,060) (6,591)
Stock based
compensation 1,175 852 2,172 1,458
Pension and
post-retirement
defined benefit
plans 1,412 910 910 1,596
Restructuring
activities - (26) - (113)
(Gain) loss on
disposal of
property, plant
and equipment (4) 403 2 409
------------- ------------ ------------ -------------
50,859 33,764 95,677 71,497
Net changes in
non-cash
balances related
to operations:
Accounts
receivable 25,873 9,674 (59,401) (56,887)
Inventories (80,192) 2,506 (57,756) 86,580
Prepaid expenses 105 (608) (2,431) (3,673)
Accounts payable,
accruals and
other long-term
liabilities 68,495 26,586 100,062 (28,903)
Income taxes (12,588) 5,138 4,902 6,367
------------- ------------ ------------ -------------
1,693 43,296 (14,624) 3,484
------------- ------------ ------------ -------------
CASH PROVIDED BY
OPERATING
ACTIVITIES 52,552 77,060 81,053 74,981
------------- ------------ ------------ -------------
FINANCING
ACTIVITIES
Bank
indebtedness (12,440) 1,434 655 5,218
Increase of
long-term debt 149,431 - 200,000 -
Repayments of
long-term debt (165,122) (42,091) (220,122) (18,263)
Share repurchase (5,294) (3,433) (6,694) (3,475)
Issuance of
capital stock 2,895 - 3,654 -
Dividends on
common shares (4,947) (4,161) (9,065) (8,360)
------------- ------------ ------------ -------------
CASH USED IN
FINANCING
ACTIVITIES (35,477) (48,251) (31,572) (24,880)
------------- ------------ ------------ -------------
INVESTING
ACTIVITIES
Acquisition of
businesses - 4 - (6,484)
Additions to
property, plant
and equipment -
net (10,467) (5,519) (16,095) (6,860)
Intangible
assets (4,560) (5,538) (9,297) (10,379)
------------- ------------ ------------ -------------
CASH USED IN
INVESTING
ACTIVITIES (15,027) (11,053) (25,392) (23,723)
------------- ------------ ------------ -------------
Effect of
exchange rate
changes on
cash and cash
equivalents (5,456) 3,467 (9,949) 369
------------- ------------ ------------ -------------
NET (DECREASE)
INCREASE IN CASH
AND CASH
EQUIVALENTS (3,408) 21,223 14,140 26,747
Cash and cash
equivalents,
beginning of
period 37,395 22,490 19,847 16,966
------------- ------------ ------------ -------------
CASH AND CASH
EQUIVALENTS,
END OF PERIOD $ 33,987 $ 43,713 $ 33,987 $ 43,713
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOR THE SECOND QUARTERS ENDED JUNE 30
ALL FIGURES IN THOUSANDS OF US $
-------------------------------------------------------
Total Juvenile
-------------------------------------------------------
2010 2009 2010 2009
(unaudited) (unaudited) (unaudited) (unaudited)
Total revenue $ 607,695 $ 551,123 $ 259,791 $ 244,672
Cost of sales 466,935 430,008 190,642 185,079
Selling, general
and administrative
expenses 76,691 71,247 36,700 36,187
Depreciation and
amortization 7,210 6,307 5,444 4,742
Research and
development costs 2,853 3,114 1,382 1,939
-------------------------------------------------------
Earnings from
operations 54,006 40,447 $ 25,623 $ 16,725
---------------------------
---------------------------
Interest 4,567 4,405
Corporate expenses 5,563 6,239
Income taxes 8,745 5,039
---------------------------
Net income $ 35,131 $ 24,764
---------------------------
---------------------------
Earnings per Share
------------------
Basic $1.07 $0.74
---- ----
---- ----
Diluted $1.05 $0.74
---- ----
---- ----
-------------------------------------------------------
Recreational / Leisure Home Furnishings
-------------------------------------------------------
2010 2009 2010 2009
(unaudited) (unaudited) (unaudited) (unaudited)
Total revenue $ 214,888 $ 199,093 $ 133,016 $ 107,358
Cost of sales 163,369 154,841 112,924 90,088
Selling, general
and administrative
expenses 32,150 26,508 7,841 8,552
Depreciation and
amortization 1,514 1,194 252 371
Research and
development costs 764 541 707 634
-------------------------------------------------------
Earnings from
operations $ 17,091 $ 16,009 $ 11,292 $ 7,713
-------------------------------------------------------
-------------------------------------------------------
Interest
Corporate expenses
Income taxes
Net income
Earnings per Share
------------------
Basic
Diluted
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOR THE SIX MONTHS ENDED JUNE 30
ALL FIGURES IN THOUSANDS OF US $
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Total Juvenile
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2010 2009 2010 2009
(unaudited) (unaudited) (unaudited) (unaudited)
Total revenue $ 1,204,008 $ 1,076,353 $ 545,584 $ 498,633
Cost of sales 914,519 832,028 393,677 366,330
Selling, general
and administrative
expenses 155,454 142,347 78,298 74,347
Depreciation and
amortization 14,651 11,962 11,185 8,733
Research and
development costs 6,780 6,487 4,024 3,778
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Earnings from
operations 112,604 83,529 $ 58,400 $ 45,445
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Interest 7,845 8,657
Corporate expenses 12,392 11,491
Income taxes 19,869 10,588
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Net income $ 72,498 $ 52,793
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Earnings per Share
------------------
Basic $ 2.20 $ 1.58
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---- ----
Diluted $ 2.18 $ 1.58
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Recreational / Leisure Home Furnishings
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2010 2009 2010 2009
(unaudited) (unaudited) (unaudited) (unaudited)
Total revenue $ 396,565 $ 360,521 $ 261,859 $ 217,199
Cost of sales 298,923 279,241 221,919 186,457
Selling, general
and administrative
expenses 61,058 51,344 16,098 16,656
Depreciation and
amortization 2,962 2,511 504 718
Research and
development costs 1,437 1,439 1,319 1,270
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Earnings from
operations $ 32,185 $ 25,986 $ 22,019 $ 12,098
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Interest
Corporate expenses
Income taxes
Net income
Earnings per Share
------------------
Basic
Diluted
For further information: Rick Leckner, MaisonBrison, (514) 731-0000; Jeffrey Schwartz, Dorel Industries Inc., (514) 934-3034
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