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EXCHANGES TSX: DII.B, DII.A - Second quarter revenue increases 29%, net income excluding restructuring rises 61% - All business segments show impressive revenue and earnings improvement
MONTREAL, Aug. 7 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A) today announced significant year-over-year improvement for the second quarter ended June 30, 2008 in both revenue and earnings. Revenue rose 29.3% to US$593.7 million, from US$459.0 million for the same period a year ago. Net income for the quarter was US$31.3 million or US$0.94 per diluted share compared to US$10.8 million or US$0.32 per diluted share in 2007. Figures for both years include costs associated with previously announced restructuring activities at Dorel Europe and Ameriwood. Excluding these restructuring costs, net income for the second quarter of 2008 was US$31.9 million or US$0.96 per diluted share versus US$19.8 million or US$0.59 per diluted share in 2007.
Both revenue and net income for the first six months of the year were the highest in Company history.
Six month revenue rose 25.7% to US$1.15 billion, compared to US$914.7 million last year. Year-to-date net income was US$66.5 million or US$1.99 per diluted share, compared to US$38.8 million or US$1.17 per diluted share in 2007. Excluding restructuring costs, 2008 six month net income was US$67.6 million or US$2.03 per diluted share, compared to net income for the six months ending June 30, 2007 of US$49.1 million or US$1.48 per diluted share.
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Summary of Financial Highlights
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Second Quarters Ended June 30
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All figures in thousands of US $, except per share amounts
2008 2007 Change %
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Revenues 593,724 459,035 29.3%
Net income 31,347 10,845 189.0%
Per share - Basic 0.94 0.32 193.8%
Per share - Diluted 0.94 0.32 193.8%
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Average number of shares
outstanding -
diluted weighted average 33,397,745 33,399,633
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Summary of Financial Highlights
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Six Months Ended June 30
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All figures in thousands of US $, except per share amounts
2008 2007 Change %
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Revenues 1,149,758 914,704 25.7%
Net income 66,480 38,784 71.4%
Per share - Basic 1.99 1.17 70.1%
Per share - Diluted 1.99 1.17 70.1%
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Average number of shares
outstanding -
diluted weighted average 33,397,717 33,197,047
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Dorel President and CEO Martin Schwartz stated the most recent results
once again underline that Dorel's combination of varied businesses and price
points are resistant to significant swings in the economy. "Considering the
difficult North American economic environment and the continuing negativity
around consumer spending habits, all three of our business segments have
performed extraordinarily well. People will always require juvenile products,
and higher fuel prices, environmental concerns and a desire to be fit are
increasing the popularity of bicycles. Our home furnishings products feature
exceptional value at reasonable prices as consumers seek the most for their
dollar. Clearly, there is continued strong demand for Dorel's products."
Mr. Schwartz also said that while input costs have been on the increase,
most have been passed along to retailers. "Both we and our retail customer
base were concerned about the impact of higher retail prices on the consumer.
However, from what we have seen thus far, for the most part, demand at the
retail level has not been hurt by the higher price points now in stores."
Juvenile
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Second Quarters Ended June 30
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2008 2007
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$ % of rev. $ % of rev. Change %
Revenues 291,487 244,835 19.1%
Gross Profit 81,479 28.0% 75,638 30.9% 7.7%
Earnings from
operations 29,845 10.2% 22,188 9.1% 34.5%
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Six Months Ended June 30
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2008 2007
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$ % of rev. $ % of rev. Change %
Revenues 609,065 509,235 19.6%
Gross Profit 176,458 29.0% 157,944 31.1% 11.7%
Earnings from
operations 67,074 11.0% 56,513 11.1% 18.7%
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Revenue increased in both Europe and North America, with Europe accounting
for approximately 60% of the overall improvement. Second quarter organic sales
growth in Europe was 13.6% and is 12.7% year-to-date. The stronger Euro was
also a contributor to revenue growth, increasing the European growth
percentage to 28.0% for the quarter and 26.6% year-to-date.
Maxi-Cosi, Quinny and Bebe Confort branded products experienced solid
market share gains in virtually all of the Company's European markets, and
were particularly strong in Germany, France, and the United Kingdom. In North
America, sales increased more than 11% for the quarter and 16.7% year-to-date.
Growth was driven by DJG USA where sales were up across almost all product
categories, particularly in car seats.
Recreational/Leisure
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Second Quarters Ended June 30
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2008 2007
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$ % of rev. $ % of rev. Change %
Revenues(x) 191,715 119,785 60.0%
Gross Profit 46,169 23.9% 24,662 20.6% 87.2%
Earnings from
operations 17,686 9.1% 13,916 11.6% 27.1%
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(x) 2008 revenue figures excludes Inter-segment sales of US$ 1.7 million
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Six Months Ended June 30
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2008 2007
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$ % of rev. $ % of rev. Change %
Revenues(x) 327,860 207,674 57.9%
Gross Profit 80,796 24.3% 41,732 20.1% 93.6%
Earnings from
operations 32,595 9.8% 21,143 10.2% 54.2%
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(x) 2008 revenue figures excludes Inter-segment sales of US$ 4.4 million
The majority of the increase in Recreational/Leisure revenue is due to the
acquisition of Cannondale and SUGOI in February this year. Sales at the
segment's mass merchant customers again increased in the quarter, as demand
for bicycles has risen. Gross margins were up, principally due to the
contribution of higher margins on Cannondale bicycles and SUGOI clothing. Note
that the PTI acquisition in late June 2008 did not contribute any significant
revenues in the quarter.
Home Furnishings
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Second Quarters Ended June 30
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2008 2007
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$ % of rev. $ % of rev. Change %
Revenues(x) 110,522 94,415 17.1%
Gross Profit 15,226 13.5% 9,640 10.1% 57.9%
Earnings (loss)
from operations 3,969 3.5% (6,279) (6.6%) 163.2%
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(x) 2008 revenue figures excludes Inter-segment sales of US$ 2.1 million
(2007; US$ 1.3 million)
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Six Months Ended June 30
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2008 2007
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$ % of rev. $ % of rev. Change %
Revenues(x) 212,833 197,795 7.6%
Gross Profit 27,741 12.8% 21,431 10.7% 29.4%
Earnings (loss)
from operations 5,555 2.6% (6,303) (3.1%) 188.1%
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(x) 2008 revenue figures excludes Inter-segment sales of US$ 4.4 million
(2007; US$ 3.4 million)
With the exception of sales of metal folding furniture, all of the
segment's divisions posted improved sales over 2007, both for the quarter and
year-to-date. Sales of ready-to-assemble (RTA) furniture were especially
strong, despite the overall slowdown in the home furnishings retail sector. In
fact, demand for domestically produced product has risen dramatically allowing
the segment's North American factories to run much more efficiently.
The second quarter of 2007 included a pre-tax restructuring charge of
US 9.7 million, of which US$3.7 million is grouped in cost of sales.
Additionally, the second quarter of 2007 included an insurance recovery
relating to prior periods of US$2.2 million. Excluding these amounts from the
comparative figures, gross margins for the second quarter of 2008 improved by
190 basis points and earnings from operations increased by US$2.8 million to
US$4.0 million from US$1.2 million in the prior year.
Other
The Board of Directors of Dorel declared its regular quarterly dividend of
US$0.125 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 September 4, 2008 to shareholders of record as at the
close of business on August 21, 2008.
Outlook
The Company's strong first half will allow for very solid 2008 full year
results. However, the pace of earnings improvement over the first six months
of the year will not be repeated in the second half, due principally to
seasonality, specifically in the Recreational / Leisure segment. The majority
of the earnings from this segment occur in the first half of the year,
particularly in the Independent Bicycle Dealer (IBD) business. Both Juvenile
and Home Furnishings earnings are expected to remain strong for the balance of
the year. The Company continues to expect its annual tax rate to be between
15% and 20%.
As stated at the end of the first quarter, the Company continues to
operate in a rising input cost environment on items such as crude oil and
certain commodities, as well as the increasing cost of goods sourced in China.
As a result, the Company took action on pricing, and for the most part has
been able to offset these increases. However, the effects of further cost
increases at the retail level cannot be determined with any degree of
certainty. Despite the higher resultant retail price points, demand for Dorel
products has remained strong in all three of the Company's segments.
Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results
today, August 7, 2008 at 1:00 P.M. Eastern Time. Interested parties can join
the call by dialling 1-800-814-4859. The conference call can also be accessed
via live webcast at www.dorel.com , www.newswire.ca or www.q1234.com. If you
are unable to call in at this time, you may access a tape recording of the
meeting by calling 1-877-289-8525 and entering the passcode 21278988(number sign) on your
phone. This tape recording will be available on Thursday, August 7, 2008 as of
3:00 P.M. until 11:59 P.M. on Thursday, August 14, 2008.
Complete financial statements will be available on the Company's website,
www.dorel.com, and will be available through the SEDAR websites.
Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile
products and bicycle company. 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. In the Juvenile segment,
Dorel's powerfully branded products such as Quinny, Maxi-Cosi, Safety 1st and
Bebe Confort have shown the way to safety, originality and fashion. Similarly,
its highly popular brands such as Cannondale, Schwinn, GT, Mongoose and SUGOI
have made Dorel a principal player with both independent bicycle dealers and
mass merchants. Dorel's Home Furnishings segment markets a wide assortment of
furniture products, both domestically produced and imported. The Company
exerts relentless innovation and marketing flair across all of its divisions.
Dorel is a $2 billion company with forty-six hundred employees, facilities in
seventeen countries, and sales worldwide.
US operations include Dorel Juvenile Group USA; the Cannondale Sports
Group; Pacific Cycle; Ameriwood Industries which produces ready-to-assemble
furniture; Altra Furniture; and Cosco Home & Office. In Canada, Dorel operates
Dorel Distribution Canada, Dorel Home Products and SUGOI. Abroad, operations
include Dorel Europe and IGC in Australia, a manufacturer and distributor of
juvenile products. Dorel Asia sources and imports home furnishings products.
Dorel China has eight offices which oversee the sourcing, engineering and
logistics of the Company's Asian supplier chain.
Caution Concerning Forward-Looking Statements
Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of Dorel Industries Inc. These statements are based on
suppositions and uncertainties as well as on management's best possible
evaluation of future events. The business of the Company and these
forward-looking statements are subject to a number of risks and uncertainties
that could cause actual results to differ from expected results. Important
factors which could cause such differences may include, without excluding
other considerations, increases in raw material costs, particularly for key
input factors such as particle board and resins; increases in ocean freight
container costs; failure of new products to meet demand expectations; changes
to the Company's effective income tax rate as a result of changes in the
anticipated geographic mix of revenues; the impact of price pressures exerted
by competitors, and settlements for product liability cases which exceed the
Company's insurance coverage limits. A description of the above mentioned
items and certain additional risk factors are discussed in the Company's
Annual MD&A and Annual Information Form, filed with the securities regulatory
authorities. The risk factors outlined in the previously mentioned documents
are specifically incorporated herein by reference. The Company's business,
financial condition, or operating results could be materially adversely
affected if any of these risks and uncertainties were to materialize. Given
these risks and uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results.
DOREL INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
ALL FIGURES IN THOUSANDS OF US $
as at as at
June 30, December 30,
2008 2007
------------ ------------
(unaudited) (audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 38,834 $ 22,513
Accounts receivable 408,055 286,924
Income taxes receivable 15,352 6,519
Inventories 414,252 322,332
Prepaid expenses 19,003 10,538
Future income taxes 38,462 35,228
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933,958 684,054
PROPERTY, PLANT AND EQUIPMENT 148,106 140,362
INTANGIBLE ASSETS 284,088 276,383
GOODWILL 643,641 525,235
OTHER ASSETS 39,025 31,870
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$ 2,048,818 $ 1,657,904
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LIABILITIES
CURRENT LIABILITIES
Bank indebtedness $ 10,139 $ 5,836
Accounts payable and accrued liabilities 409,019 325,938
Income taxes payable 38,822 25,532
Future Income Taxes 34 136
Current portion of long-term debt 1,383 62,906
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459,397 420,348
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LONG-TERM DEBT 450,417 192,385
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PENSION & POST-RETIREMENT BENEFIT OBLIGATIONS 21,709 20,942
------------ ------------
FUTURE INCOME TAXES 82,179 79,635
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OTHER LONG-TERM LIABILITIES 8,788 6,848
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SHAREHOLDERS' EQUITY
CAPITAL STOCK 177,271 177,271
------------ ------------
CONTRIBUTED SURPLUS 14,253 11,623
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RETAINED EARNINGS 700,096 641,981
ACCUMULATED OTHER COMPREHENSIVE INCOME 134,708 106,871
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834,804 748,852
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1,026,328 937,746
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$ 2,048,818 $ 1,657,904
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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,
2008 2007 2008 2007
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Sales $ 590,742 $ 452,975 $1,141,775 $ 903,134
Licensing and
commission income 2,982 6,060 7,983 11,570
----------- ----------- ----------- -----------
TOTAL REVENUE 593,724 459,035 1,149,758 914,704
----------- ----------- ----------- -----------
EXPENSES
Cost of sales 450,850 349,095 864,763 693,597
Selling, general and
administrative expenses 81,604 65,040 162,033 125,859
Depreciation and
amortization 12,704 10,124 23,790 19,668
Research and development
costs 2,508 1,880 5,221 4,488
Restructuring costs 802 9,755 1,625 11,881
Interest on long-term
debt 5,332 6,011 10,037 12,559
Other interest 619 239 522 239
----------- ----------- ----------- -----------
554,419 442,144 1,067,991 868,291
----------- ----------- ----------- -----------
Income before income taxes 39,305 16,891 81,767 46,413
Income taxes 7,958 6,046 15,287 7,629
----------- ----------- ----------- -----------
NET INCOME $ 31,347 $ 10,845 $ 66,480 $ 38,784
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
EARNINGS PER SHARE
Basic $ 0.94 $ 0.32 $ 1.99 $ 1.17
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Diluted $ 0.94 $ 0.32 $ 1.99 $ 1.17
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
SHARES OUTSTANDING
Basic -
weighted average 33,397,192 33,397,192 33,397,192 33,174,177
Diluted -
weighted average 33,397,745 33,399,633 33,397,717 33,197,047
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,
2008 2007 2008 2007
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
NET INCOME $ 31,347 $ 10,845 $ 66,480 $ 38,784
OTHER COMPREHENSIVE
INCOME:
Net change in
unrealized foreign
currency gains (losses)
on translation of net
investments in
self-sustaining
foreign operations,
net of tax of nil (1,842) 4,986 28,221 8,461
Portion included in
income as a result
of reductions in net
investments in
self-sustaining
foreign operations,
net of tax of nil (384) - (384) -
----------- ----------- ----------- -----------
COMPREHENSIVE INCOME $ 29,121 $ 15,831 $ 94,317 $ 47,245
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
ALL FIGURES IN THOUSANDS OF US $
Six Months Ended
--------------------------
June 30, June 30,
2008 2007
------------ ------------
(unaudited) (unaudited)
CAPITAL STOCK
Balance, beginning of period $ 177,271 $ 162,555
Issued under stock option plan - 14,716
------------ ------------
Balance, end of period 177,271 177,271
------------ ------------
CONTRIBUTED SURPLUS
Balance, beginning of period 11,623 6,061
Stock-based compensation 2,630 2,364
------------ ------------
Balance, end of period 14,253 8,425
------------ ------------
RETAINED EARNINGS
Balance, beginning of period 641,981 567,020
Net income 66,480 38,784
Dividends on common shares (8,358) (8,352)
Dividends on deferred share units (7) (4)
------------ ------------
Balance, end of period 700,096 597,448
------------ ------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance, beginning of period 106,871 63,886
Other comprehensive income 27,837 8,461
------------ ------------
Balance, end of period 134,708 72,347
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TOTAL SHAREHOLDERS' EQUITY $ 1,026,328 $ 855,491
------------ ------------
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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,
2008 2007 2008 2007
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net income $ 31,347 $ 10,845 $ 66,480 $ 38,784
Items not involving cash:
Depreciation and
amortization 12,704 10,124 23,790 19,668
Amortization of
deferred financing
costs 47 56 106 98
Future income taxes 4,331 (5,724) 660 (8,922)
Stock based compensation 1,149 1,536 2,630 2,360
Pension and
post-retirement
defined benefit plan 789 124 820 874
Restructuring activities (1,193) 12,608 (1,877) 14,722
Exchange gain from
reduction of net
investments in foreign
operations (384) - (384) -
Loss (gain) on disposal
of property, plant and
equipment 4 (101) 24 (110)
----------- ----------- ----------- -----------
48,794 29,468 92,249 67,474
Net changes in non-cash
balances related to
operations:
Accounts receivable 24,022 17,874 (45,518) (814)
Inventories (25,145) (7,578) (8,472) 953
Prepaid expenses (903) 1,546 (140) (169)
Accounts payable,
accruals and other
liabilities 7,805 9,031 23,615 (26,937)
Income taxes (1,079) 8,327 2,138 9,926
----------- ----------- ----------- -----------
4,700 29,200 (28,377) (17,041)
----------- ----------- ----------- -----------
CASH PROVIDED BY
OPERATING ACTIVITIES 53,494 58,668 63,872 50,433
----------- ----------- ----------- -----------
FINANCING ACTIVITIES
Bank indebtedness 4,941 (272) 3,931 1,025
Repayments of
long-term debt (6,400) (7,812) (61,556) (14,396)
Increase of long-term
debt 5,782 - 257,957 -
Dividends on common
shares (4,179) (4,177) (8,358) (4,177)
Issuance of capital
stock - - - 14,698
----------- ----------- ----------- -----------
CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES 144 (12,261) 191,974 (2,850)
----------- ----------- ----------- -----------
INVESTING ACTIVITIES
Acquisition of subsidiary
companies (31,270) (594) (218,082) (2,764)
Additions to property,
plant and equipment -
net (6,543) (4,220) (11,824) (8,387)
Deferred development
costs (5,488) (4,303) (9,889) (6,620)
Intangible assets (255) (465) (488) (583)
----------- ----------- ----------- -----------
CASH USED IN INVESTING
ACTIVITIES (43,556) (9,582) (240,283) (18,354)
----------- ----------- ----------- -----------
Effect of exchange rate
changes on cash and
cash equivalents (826) 657 758 838
----------- ----------- ----------- -----------
NET INCREASE IN CASH AND
CASH EQUIVALENTS 9,256 37,482 16,321 30,067
Cash and cash equivalents,
beginning of period 29,578 18,510 22,513 25,925
----------- ----------- ----------- -----------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 38,834 $ 55,992 $ 38,834 $ 55,992
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOR THE SECOND QUARTERS ENDED JUNE 30
ALL FIGURES IN THOUSANDS OF US $
-----------------------------------------------
Total Juvenile
-----------------------------------------------
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Sales to customers $ 593,724 $ 459,035 $ 291,487 $ 244,835
Inter-segment sales - - - -
-----------------------------------------------
Total Revenue 593,724 459,035 291,487 244,835
Cost of sales 450,850 349,095 210,008 169,197
Selling, general and
administrative 75,380 58,379 40,316 40,406
Depreciation and
amortization 12,684 10,101 8,801 8,164
Research and development
costs 2,508 1,880 1,720 1,122
Restructuring costs 802 9,755 797 3,758
-----------------------------------------------
Earnings (loss) from
Operations 51,500 29,825 $ 29,845 $ 22,188
-----------------------
-----------------------
Interest 5,951 6,250
Corporate expenses 6,244 6,684
Income taxes 7,958 6,046
-----------------------
Net income $ 31,347 $ 10,845
-----------------------
-----------------------
Earnings per Share
------------------
Basic $ 0.94 $ 0.32
----------- -----------
----------- -----------
Diluted $ 0.94 $ 0.32
----------- -----------
----------- -----------
-----------------------------------------------
Recreational / Home
Leisure Furnishings
-----------------------------------------------
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Sales to customers $ 191,715 $ 119,785 $ 110,522 $ 94,415
Inter-segment sales 1,728 - 2,084 1,323
-----------------------------------------------
Total Revenue 193,443 119,785 112,606 95,738
Cost of sales 147,274 95,123 97,380 86,098
Selling, general and
administrative 26,303 10,409 8,761 7,564
Depreciation and
amortization 2,180 337 1,703 1,600
Research and development
costs - - 788 758
Restructuring costs - - 5 5,997
-----------------------------------------------
Earnings (loss) from
Operations $ 17,686 $ 13,916 $ 3,969 $ (6,279)
-----------------------------------------------
-----------------------------------------------
-----------------------
Eliminations
-----------------------
2008 2007
(unaudited) (unaudited)
Sales to customers $ - $ -
Inter-segment sales (3,812) (1,323)
-----------------------
Total Revenue (3,812) (1,323)
Cost of sales (3,812) (1,323)
Selling, general and
administrative - -
Depreciation and
amortization - -
Research and development
costs - -
Restructuring costs - -
-----------------------
Earnings (loss) from
Operations $ - $ -
-----------------------
-----------------------
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOR THE SIX MONTHS ENDED JUNE 30
ALL FIGURES IN THOUSANDS OF US $
-----------------------------------------------
Total Juvenile
-----------------------------------------------
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Sales to customers $1,149,758 $ 914,704 $ 609,065 $ 509,235
Inter-segment sales - - - -
-----------------------------------------------
Total Revenue 1,149,758 914,704 609,065 509,235
Cost of sales 864,763 693,597 432,607 351,291
Selling, general and
administrative 149,176 113,761 87,323 76,932
Depreciation and
amortization 23,749 19,624 16,803 15,575
Research and development
costs 5,221 4,488 3,686 3,040
Restructuring costs 1,625 11,881 1,572 5,884
-----------------------------------------------
Earnings (loss) from
Operations 105,224 71,353 $ 67,074 $ 56,513
-----------------------
-----------------------
Interest 10,559 12,798
Corporate expenses 12,898 12,142
Income taxes 15,287 7,629
-----------------------
Net income $ 66,480 $ 38,784
-----------------------
-----------------------
Earnings per Share
------------------
Basic $ 1.99 $ 1.17
----------- -----------
----------- -----------
Diluted $ 1.99 $ 1.17
----------- -----------
----------- -----------
-----------------------------------------------
Recreational / Home
Leisure Furnishings
-----------------------------------------------
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Sales to customers $ 327,860 $ 207,674 $ 212,833 $ 197,795
Inter-segment sales 4,445 - 4,394 3,382
-----------------------------------------------
Total Revenue 332,305 207,674 217,227 201,177
Cost of sales 251,509 165,942 189,486 179,746
Selling, general and
administrative 44,471 19,745 17,382 17,084
Depreciation and
amortization 3,730 844 3,216 3,205
Research and development
costs - - 1,535 1,448
Restructuring costs - - 53 5,997
-----------------------------------------------
Earnings (loss) from
Operations $ 32,595 $ 21,143 $ 5,555 $ (6,303)
-----------------------------------------------
-----------------------------------------------
------------------------
Eliminations
------------------------
2008 2007
(unaudited) (unaudited)
Sales to customers $ - $ -
Inter-segment sales (8,839) (3,382)
-----------------------
Total Revenue (8,839) (3,382)
Cost of sales (8,839) (3,382)
Selling, general and
administrative - -
Depreciation and
amortization - -
Research and development
costs - -
Restructuring costs - -
-----------------------
Earnings (loss) from
Operations $ - $ -
-----------------------
-----------------------