- Adjusted net income of US$100.1 million, the highest in history - Adjusted pre-tax earnings top US$125 million - Juvenile segment revenues approach record US$1 billion, earnings from operations best ever - Free cash flow exceeds US$116 million EXCHANGES TSX: DII.B, DII.A
MONTREAL, March 11 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A) today announced full results for the fourth quarter and year ended December 30, 2007. On March 4, 2008 the Company pre-released certain fiscal 2007 financial information in advance of a series of investor meetings. On an adjusted basis, fiscal 2007 net income was US$100.1 million, an increase of US$8.1 million from 2006 levels and the highest level ever recorded in Dorel's history. The Juvenile segment was a major factor in this success, and for the year it recorded revenues of US$963.6 million and just over US$114 million in adjusted earnings from operations, both all time records. The Recreational/Leisure segment also improved with a 10.0% gain in revenues and a 26.8% increase in earnings from operations.
Revenue for the fourth quarter increased 2.4% to US$458.9 million from US$447.9 million a year ago. In the fourth quarter, net income grew 3.1% to US$22.3 million, or US$0.67 per diluted share compared to US$21.7 million, or US$0.66 per diluted share in the fourth quarter of 2006. These results include the previously announced restructuring costs at Dorel Europe and Ameriwood Industries. Therefore adjusted net income, excluding these costs, for the fourth quarter was US$24.0 million or US$0.72 per diluted share compared to adjusted net income of US$24.4 million or US$0.74 per diluted share a year ago.
Full year revenue was US$1.81 billion versus last year's US$1.77 billion. 2007 net income was basically flat at US$87.5 million or US$2.63 per diluted share, compared to 2006 net earnings of US$88.9 million or US$2.70 per diluted share. However, excluding the above mentioned restructuring costs in both years, 2007 adjusted net income was US$100.1 million or US$3.01 per diluted share compared to adjusted net income of US$92.0 million or US$2.80 per diluted share last year. Pre-tax earnings for the year were also up considerably over 2006 levels. On an adjusted basis for the fourth quarter pre-tax earnings increased 18.3% to US$31.1 million and for the year the increase was 19.8%, reaching US$125.8 million.
"The solid 2007 results underline the growing contribution of the Company's core Juvenile and Recreational/Leisure segments. We are encouraged by this strong showing as we continue to further unlock value within the Company with these two business segments. We are already a world leader in juvenile in our categories and this performance, combined with our recent acquisition of Cannondale and SUGUOi, solidifies our leadership position as a world class bicycle company as well," said Dorel CEO and President, Martin Schwartz.
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Summary of Financial Highlights
-------------------------------------------------------------------------
Fourth Quarters Ended December 30
-------------------------------------------------------------------------
All figures in thousands of US $, except per share amounts
2007 2006 Change %
-------------------------------------------------------------------------
Revenues 458,853 447,930 2.4%
Adjusted net income(x) 23,995 24,370 -1.5%
Per share - Basic 0.72 0.74 -2.7%
Per share - Diluted 0.72 0.74 -2.7%
Net income 22,348 21,675 3.1%
Per share - Basic 0.67 0.66 1.5%
Per share - Diluted 0.67 0.66 1.5%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Average number of shares
outstanding -
diluted weighted average 33,397,773 32,861,757
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(x)adjusted to exclude after-tax impact of restructuring costs
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Summary of Financial Highlights
-------------------------------------------------------------------------
For The Years Ended December 30
-------------------------------------------------------------------------
All figures in thousands of US $, except per share amounts
2007 2006 Change %
-------------------------------------------------------------------------
Revenues 1,813,672 1,771,168 2.4%
Adjusted net income(x) 100,092 92,025 8.8%
Per share - Basic 3.01 2.80 7.5%
Per share - Diluted 3.01 2.80 7.5%
Net income 87,492 88,865 -1.5%
Per share - Basic 2.63 2.70 -2.6%
Per share - Diluted 2.63 2.70 -2.6%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Average number of shares
outstanding -
diluted weighted average 33,293,248 32,860,760
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(x)adjusted to exclude after-tax impact of restructuring costs
Juvenile Segment
The Juvenile segment had its most successful year ever, as revenues
reached almost US$1 billion, finishing the year at US$963.6 million, up 8.4%
from 2006. Full year earnings from operations were US$106.2 million, an
increase of 15.4% over 2006. Excluding restructuring costs in France and
Italy, 2007 earnings from operations rose 19.2% to US$114.4 million compared
to US$96.0 million a year ago. Fourth quarter revenue increased 9.9% to
US$248.0 million from US$225.7 million last year. Earnings from operations in
the quarter were US$25.8 million up from US$19.2 million the year before, a
34.2% increase. Adjusted earnings from operations for the quarter rose 20.6%
to US$28.0 million from US$23.2 million in 2006.
The year's success was driven by Dorel Europe where organic sales growth
was just over 10%. In U.S. dollars this increase was over 20% due to the
strong Euro and British Pound. The increase was principally due to sales gains
in car seats and strollers as the investments made in new product development
proved successful. The majority of these increases were in the United Kingdom,
Germany as well as several eastern European countries as this relatively new
market continues to be penetrated. These gains compensated for a decline in
North American revenues.
Gross margins for the Juvenile segment as a whole were 30.6% in 2007 as
compared to 29.7% in 2006, due principally to the improvement in Europe.
Selling general and administrative costs increased over 2006 levels from
US$132.7 million to US$143.0 million. The increase resulted from higher costs
in Europe due to greater sales activity and the higher rate of exchange in
2007, as well as the addition of the Australian business in the year.
Offsetting these increases was a decline in product liability costs in the
United States of US$8.6 million. These costs totalled US$16.6 million in 2007
and US$25.2 million in 2006.
Recreational / Leisure Segment
Revenue for the year in the Recreational / Leisure segment increased by
10.0% to US$374.8 million from US$340.7 million the year before. Earnings from
operations jumped 26.8% to US$33.0 million from US$26.0 million a year ago.
For the fourth quarter, revenue was US$85.8 million, an 11.6% increase from
the previous year's US$76.9 million. In the fourth quarter, earnings from
operations were essentially flat at US$5.8 million as compared to
US$5.9 million the year before.
For the year, the improvement was due to success in both the mass merchant
and Independent Bicycle Dealers (IBD) channels. The majority of the increase
came from several key mass customers as sales rebounded after declines in
2006. Sales were also strong with certain warehouse club customers, a
relatively new distribution channel for this segment. These increases, at both
existing and new customers, were driven by bicycle sales, although other
recreational product lines continue to be explored and added in an attempt to
diversify sales of the segment.
Gross margins for the year increased by 70 basis points. However fiscal
2006 included a one-time US$3.5 million inventory write-down, therefore
margins were, in fact, consistent with the prior year. Selling, general and
administrative expenses rose moderately from US$36.9 million in 2006 to
US$38.3 million in 2007. However as a percentage of revenue this represents a
decrease of 60 basis points as 2007 sales volume increases outpaced additional
spending.
Home Furnishings Segment
Total 2007 revenue was US$475.3 million versus US$541.9 million the prior
year, a 12.3% decrease. Earnings from operations in 2007 were US$17.2 million,
a 44.8% decrease from US$31.2 million in 2006. Adjusted earnings from
operations for the year were down 11.8% to US$28.1 million compared to last
year's US$31.9 million. Revenue for the fourth quarter was US$125.0 million,
down 13.9% from last year's US$145.3 million. Despite the revenue decline,
earnings from operations were US$10.4 million as compared to US$8.9 million in
2006. Adjusted earnings from operations for the fourth quarter rose 19.9% to
US$10.7 million from US$8.9 million.
During the year the slowdown in the U.S. housing industry negatively
impacted this segment. The two divisions experiencing the greatest sales
decline were Ameriwood and Dorel Asia, both of which experienced decreases
exceeding 10%. Cosco Home & Office and Dorel Home Products were less affected
and combined were essentially flat with the prior year. Even though sales were
lower, adjusted gross margins for the segment increased by 70 basis points to
15.6% from 14.9% in 2006. Despite the decline in earnings, this segment was a
strong contributor to the Company's free cash flow in 2007.
Restructuring costs
The Company is including adjusted earnings figures in this press release
that are considered non-GAAP financial measures, as it believes this results
in a more meaningful comparison of its core business performance between the
periods presented. Therefore the terms "adjusted gross margin", "adjusted
earnings from operations", "adjusted pre-tax income, "adjusted net income" and
"adjusted net income per diluted share" should be considered as non-GAAP
financial measures. Where applicable the segmented results presented exclude
restructuring costs and use the term "adjusted" when describing these results.
For the fourth quarter and full year, the combined after-tax impact of the
previously announced restructuring initiatives in Juvenile (Dorel Europe) and
Home Furnishings (Ameriwood) is US$1.6 million or US$0.05 per diluted share
and US$12.6 million or US$0.38 per diluted share respectively. A complete
reconciliation of adjusted earnings to GAAP earnings is attached at the end of
this press release.
Other
The Company had its strongest cash flow year in history, generating a
record US$167.3 million in cash flow provided by operating activities. This
was an increase of US$60.6 million or 56.8% from the US$106.7 million posted
in 2006. Free cash flow, a non-GAAP financial measure, defined as cash
provided by operating activities less dividends paid, additions to property,
plant & equipment, deferred development costs and intangibles, plus or minus
variations in funds held by ceding insurer, was US$116.2 million in 2007
versus US$83.4 million, an improvement of US$32.8 million. The 2007 free cash
flow amount is net of dividends of US$12.5 million, the first year in which
Dorel has paid a dividend.
As a result of the Company's strong free cash flow, debt reduction meant
total interest costs declined in 2007 to US$23.5 million from US$29.9 million
in 2006. The Company's average interest rate on its long-term borrowings and
revolving facilities in 2007 was approximately 6.4%, as compared to the
average of 6.7% in 2006. In 2007 the Company's effective tax rate was 17.9% as
compared to 11.4% in 2006. The reasons for the increase in the rate were
twofold. First, there were a greater proportion of earnings in higher tax rate
jurisdictions in 2007 versus 2006 and second, unlike in 2006, the Company was
unable to apply certain tax losses.
Outlook
On February 4, 2008, Dorel announced the acquisition of the Cannondale
Bicycle Corporation and SUGOi Performance Apparel. This resulted in the
establishment of a new Recreational/Leisure division, the Cannondale Sports
Group, with an exclusive focus on the Independent Bicycle Dealers (IBD)
channel.
"Our 2007 success stems from the combined strength of our Juvenile and
Recreational/Leisure businesses. The acquisition of Cannondale and SUGOi
fortifies our position and stature in the bicycle industry and underlines our
commitment to further unlock shareholder value by concentrating on Dorel's
core segments, which provide the greatest potential. The new Cannondale Sports
Group will build on Cannondale's strengths to grow significantly within the
IBD channel. Our intention is to build a world-class company and to offer a
line of products that will be desired by both dealers and consumers.
"We will continue to strive to optimize the results of each of our
segments and we will devote the necessary resources to ensure their growth and
development. The current economic situation, particularly in the US, does not
allow for the accurate prediction of consumer trends and hence the outlook for
the complete year cannot be seen with clarity. Nonetheless, we have not
witnessed any slowdown of consumer spending in Dorel's products during the
first two months of 2008," concluded Mr. Schwartz.
Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results
today, March 11, 2008 at 1:30 P.M. Eastern Time. Interested parties can join
the call by dialling 1-800-733-7560. 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 21264785(number sign) on your
phone. This tape recording will be available on Tuesday, March 11, 2008 as of
5:00 P.M. until 11:59 P.M. on Tuesday, March 18, 2008.
Complete financial statements will be available on the Company's website,
www.dorel.com, and will be available through the SEDAR website.
Profile
Dorel Industries Inc. (TSX: DII.B, 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 and Dorel Home Products. 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 in Canada and the U.S. 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.
CONSOLIDATED BALANCE SHEETS
ALL FIGURES IN THOUSANDS OF US $
as at as at
December December
30, 2007 30, 2006
------------- -------------
(audited) (audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 22,513 $ 25,925
Accounts receivable 286,924 294,731
Income taxes receivable 6,519 8,264
Inventories 322,332 326,540
Prepaid expenses 10,538 9,652
Future income taxes 35,228 29,046
------------- -------------
684,054 694,158
PROPERTY, PLANT AND EQUIPMENT 140,362 142,002
INTANGIBLE ASSETS 276,383 261,966
GOODWILL 525,235 501,356
OTHER ASSETS 31,870 27,924
------------- -------------
$ 1,657,904 $ 1,627,406
------------- -------------
------------- -------------
LIABILITIES
CURRENT LIABILITIES
Bank indebtedness $ 5,836 $ 3,733
Accounts payable and accrued liabilities 325,938 326,915
Income taxes payable 25,532 10,742
Balance of sale payable - 605
Future Income Taxes 136 -
Current portion of long-term debt 62,906 7,832
------------- -------------
420,348 349,827
------------- -------------
LONG-TERM DEBT 192,385 375,135
------------- -------------
PENSION & POST-RETIREMENT BENEFIT OBLIGATIONS 20,942 20,370
------------- -------------
FUTURE INCOME TAXES 79,635 74,833
------------- -------------
OTHER LONG-TERM LIABILITIES 6,848 7,719
------------- -------------
SHAREHOLDERS' EQUITY
CAPITAL STOCK 177,271 162,555
CONTRIBUTED SURPLUS 11,623 6,061
RETAINED EARNINGS 641,981 567,020
ACCUMULATED OTHER COMPREHENSIVE INCOME 106,871 63,886
------------- -------------
748,852 630,906
------------- -------------
937,746 799,522
------------- -------------
$ 1,657,904 $ 1,627,406
------------- -------------
------------- -------------
CONSOLIDATED STATEMENTS OF INCOME
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
Fourth Quarters Ended Twelve Months Ended
--------------------------- --------------------------
December 30, December 30, December 30, December 30,
2007 2006 2007 2006
------------- ------------- ------------- -------------
(unaudited) (unaudited) (audited) (audited)
Sales $ 454,831 $ 442,719 $ 1,792,611 $ 1,748,032
Licensing and
commission income 4,022 5,211 21,061 23,136
------------- ------------- ------------- -------------
TOTAL REVENUE 458,853 447,930 1,813,672 1,771,168
------------- ------------- ------------- -------------
EXPENSES
Cost of sales 348,236 341,223 1,375,418 1,363,421
Selling, general
and administrative
expenses 62,035 62,614 244,798 228,765
Depreciation and
amortization 10,635 9,868 39,844 36,969
Research and
development costs 2,581 1,459 9,009 8,169
Restructuring costs 1,753 3,671 14,509 3,671
Interest on
long-term debt 5,106 6,771 23,782 29,594
Other interest (79) 71 (316) 305
------------- ------------- ------------- -------------
430,267 425,677 1,707,044 1,670,894
------------- ------------- ------------- -------------
Income before
income taxes 28,586 22,253 106,628 100,274
Income taxes 6,238 578 19,136 11,409
------------- ------------- ------------- -------------
NET INCOME $ 22,348 $ 21,675 $ 87,492 $ 88,865
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
EARNINGS PER SHARE
Basic $ 0.67 $ 0.66 $ 2.63 $ 2.70
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Diluted $ 0.67 $ 0.66 $ 2.63 $ 2.70
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
SHARES OUTSTANDING
Basic -
weighted
average 33,397,192 32,861,107 33,285,990 32,860,375
Diluted -
weighted
average 33,397,773 32,861,757 33,293,248 32,860,760
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
Fourth Quarters Ended Twelve Months Ended
--------------------------- --------------------------
December 30, December 30, December 30, December 30,
2007 2006 2007 2006
------------- ------------- ------------- -------------
(unaudited) (unaudited) (audited) (audited)
NET INCOME $ 22,348 $ 21,675 $ 87,492 $ 88,865
OTHER
COMPREHENSIVE
INCOME:
Net change
in unrealized
foreign
currency gains
on translation
of net
investments in
self-sustaining
foreign
operations, net
of tax of nil 15,227 15,502 42,985 37,726
Portion
included
in income as
a result of
reductions
in net
investments in
self-sustaining
foreign
operations - (1,985) - (1,985)
------------- ------------- ------------- -------------
15,227 13,517 42,985 35,741
------------- ------------- ------------- -------------
COMPREHENSIVE
INCOME $ 37,575 $ 35,192 $ 130,477 $ 124,606
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
ALL FIGURES IN THOUSANDS OF US $
Twelve Months Ended
---------------------------
December 30, December 30,
2007 2006
------------- -------------
(audited) (audited)
CAPITAL STOCK
Balance, beginning of period $ 162,555 $ 162,503
Issued under stock option plan 14,716 52
------------- -------------
Balance, end of period 177,271 162,555
------------- -------------
CONTRIBUTED SURPLUS
Balance, beginning of period 6,061 3,639
Stock-based compensation 5,562 2,422
------------- -------------
Balance, end of period 11,623 6,061
------------- -------------
RETAINED EARNINGS
Balance, beginning of period 567,020 478,155
Net income 87,492 88,865
Dividends on common shares (12,524) -
Dividends on deferred share units (7) -
------------- -------------
Balance, end of period 641,981 567,020
------------- -------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance, beginning of period 63,886 28,145
Other comprehensive income 42,985 35,741
------------- -------------
Balance, end of period 106,871 63,886
------------- -------------
TOTAL SHAREHOLDERS' EQUITY $ 937,746 $ 799,522
------------- -------------
------------- -------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
Fourth Quarters Ended Twelve Months Ended
--------------------------- --------------------------
December 30, December 30, December 30, December 30,
2007 2006 2007 2006
------------- ------------- ------------- -------------
(unaudited) (unaudited) (audited) (audited)
CASH PROVIDED BY
(USED IN):
OPERATING
ACTIVITIES
Net income $ 22,348 $ 21,675 $ 87,492 $ 88,865
Items not
involving cash:
Depreciation
and amortization 10,635 9,868 39,844 36,969
Amortization
of deferred
financing costs 68 38 217 512
Future income
taxes (2,880) (524) (7,282) 3,531
Stock based
compensation 1,636 513 5,562 2,422
Pension and
post-retirement
defined benefit
plan 198 (427) 1,346 1,368
Restructuring
activities 1,351 4,347 15,436 3,840
Exchange gain
from reduction
of net
investments
in foreign
operations - (746) - (1,985)
Loss on disposal
of property,
plant and
equipment 239 411 243 601
------------- ------------- ------------- -------------
33,595 35,155 142,858 136,123
Net changes in
non-cash
balances
related to
operations:
Accounts
receivable 5,252 (16,319) 19,811 188
Inventories (2,354) (3,610) 13,137 (39,752)
Prepaid expenses (1,943) 32 (126) 1,053
Accounts
payable,
accruals
and other
liabilities 28,570 24,626 (23,707) 10,810
Income taxes 9,288 (460) 15,367 (1,701)
------------- ------------- ------------- -------------
38,813 4,269 24,482 (29,402)
------------- ------------- ------------- -------------
CASH PROVIDED
BY OPERATING
ACTIVITIES 72,408 39,424 167,340 106,721
------------- ------------- ------------- -------------
FINANCING
ACTIVITIES
Bank
indebtedness 1,419 (3,377) 1,577 (1,136)
Long-term
debt (69,772) (21,397) (136,036) (64,787)
Dividends on
common shares (4,175) - (12,524) -
Issuance of
capital stock - 8 14,698 42
------------- ------------- ------------- -------------
CASH USED
IN FINANCING
ACTIVITIES (72,528) (24,766) (132,285) (65,881)
------------- ------------- ------------- -------------
INVESTING
ACTIVITIES
Acquisition
of subsidiary
companies 46 - (2,786) (4,946)
Additions to
property,
plant and
equipment
- net (8,712) (1,237) (22,269) (14,334)
Deferred
development
costs (4,093) (4,470) (14,470) (10,628)
Funds held
by ceding
insurer - - - 3,647
Intangible
assets (551) 558 (1,871) (2,034)
------------- ------------- ------------- -------------
CASH USED IN
INVESTING
ACTIVITIES (13,310) (5,149) (41,396) (28,295)
------------- ------------- ------------- -------------
Effect of
exchange
rate
changes
on cash
and cash
equivalents 1,083 380 2,929 1,035
------------- ------------- ------------- -------------
NET (DECREASE)
INCREASE IN
CASH AND CASH
EQUIVALENTS (12,347) 9,889 (3,412) 13,580
Cash and cash
equivalents,
beginning of
period 34,860 16,036 25,925 12,345
------------- ------------- ------------- -------------
CASH AND CASH
EQUIVALENTS,
END OF PERIOD $ 22,513 $ 25,925 $ 22,513 $ 25,925
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
INDUSTRY SEGMENTED INFORMATION
FOR THE FOURTH QUARTERS ENDED DECEMBER 30
ALL FIGURES IN THOUSANDS OF US $
-------------------------------------------------------
Total Juvenile
-------------------------------------------------------
2007 2006 2007 2006
(unaudited) (unaudited) (unaudited) (unaudited)
Total Revenue $ 458,853 $ 447,930 $ 247,983 $ 225,700
-------------------------------------------------------
Cost of sales 348,236 341,223 174,809 156,699
Selling,
general and
administrative 53,656 57,686 35,029 36,757
Depreciation
and amortization 10,612 9,844 8,856 8,596
Research and
development costs 2,581 1,459 1,954 750
Restructuring costs 1,753 3,671 1,529 3,671
-------------------------------------------------------
Earnings from
Operations 42,015 34,047 $ 25,806 $ 19,227
---------------------------
---------------------------
Interest 5,027 6,842
Corporate
expenses 8,402 4,952
Income taxes 6,238 578
--------------------------
Net income $ 22,348 $ 21,675
--------------------------
--------------------------
Earnings per Share
------------------
Basic $ 0.67 $ 0.66
------------ ------------
------------ ------------
Diluted $ 0.67 $ 0.66
------------ ------------
------------ ------------
Reconciliation to
-----------------
non-GAAP financial
------------------
measures
--------
(unaudited) (unaudited) (unaudited) (unaudited)
Earnings from
Operations
as above $ 42,015 $ 34,047 $ 25,806 $ 19,227
Restructuring
costs 1,753 3,671 1,529 3,671
Restructuring
costs in cost
of sales 753 353 668 329
-------------------------------------------------------
Adjusted
earnings from
Operations 44,521 38,071 $ 28,003 $ 23,227
---------------------------
---------------------------
Interest 5,027 6,842
Corporate expenses 8,402 4,952
Income taxes -
as above 6,238 578
Income taxes
on restructuring
costs 859 1,329
--------------------------
Adjusted
net income $ 23,995 $ 24,370
--------------------------
--------------------------
Adjusted Earnings
-----------------
per Share
---------
Basic $ 0.72 $ 0.74
------------ ------------
------------ ------------
Diluted $ 0.72 $ 0.74
------------ ------------
------------ ------------
-------------------------------------------------------
Recreational / Home
Leisure Furnishings
-------------------------------------------------------
2007 2006 2007 2006
(unaudited) (unaudited) (unaudited) (unaudited)
Total Revenue $ 85,836 $ 76,943 $ 125,034 $ 145,287
-------------------------------------------------------
Cost of sales 70,267 61,799 103,160 122,725
Selling,
general and
administrative 9,325 8,931 9,302 11,998
Depreciation
and amortization 412 282 1,344 966
Research and
development costs - - 627 709
Restructuring costs - - 224 -
-------------------------------------------------------
Earnings from
Operations $ 5,832 $ 5,931 $ 10,377 $ 8,889
-------------------------------------------------------
-------------------------------------------------------
Interest
Corporate
expenses
Income taxes
Net income
Earnings per Share
------------------
Basic
Diluted
Reconciliation to
-----------------
non-GAAP financial
------------------
measures
--------
(unaudited) (unaudited) (unaudited) (unaudited)
Earnings from
Operations
as above $ 5,832 $ 5,931 $ 10,377 $ 8,889
Restructuring
costs - - 224 -
Restructuring
costs in cost
of sales - - 85 24
-------------------------------------------------------
Adjusted earnings
from Operations $ 5,832 $ 5,931 $ 10,686 $ 8,913
-------------------------------------------------------
-------------------------------------------------------
Interest
Corporate expenses
Income taxes -
as above
Income taxes
on restructuring
costs
Adjusted
net income
Adjusted Earnings
-----------------
per Share
---------
Basic
Diluted
INDUSTRY SEGMENTED INFORMATION
FOR THE YEARS ENDED DECEMBER 30
ALL FIGURES IN THOUSANDS OF US $
-------------------------------------------------------
Total Juvenile
-------------------------------------------------------
2007 2006 2007 2006
(audited) (audited) (audited) (audited)
Total Revenue $ 1,813,672 $ 1,771,168 $ 963,572 $ 888,534
-------------------------------------------------------
Cost of sales 1,375,418 1,363,421 668,248 625,032
Selling,
general and
administrative 218,661 209,886 143,043 132,651
Depreciation
and amortization 39,755 36,876 32,171 29,849
Research and
development costs 9,009 8,169 6,364 5,331
Restructuring costs 14,509 3,671 7,575 3,671
-------------------------------------------------------
Earnings from
Operations 156,320 149,145 $ 106,171 $ 92,000
---------------------------
---------------------------
Interest 23,466 29,899
Corporate expenses 26,226 18,972
Income taxes 19,136 11,409
--------------------------
Net income $ 87,492 $ 88,865
--------------------------
--------------------------
Earnings per Share
------------------
Basic $ 2.63 $ 2.70
------------ ------------
------------ ------------
Diluted $ 2.63 $ 2.70
------------ ------------
------------ ------------
Reconciliation to
-----------------
non-GAAP financial
------------------
measures
--------
(unaudited) (unaudited) (unaudited) (unaudited)
Earnings from
Operations
as above $ 156,320 $ 149,145 $ 106,171 $ 92,000
Restructuring
costs 14,509 3,671 7,575 3,671
Restructuring
costs in cost
of sales 4,675 1,069 668 329
-------------------------------------------------------
Adjusted
earnings from
Operations 175,504 153,885 $ 114,414 $ 96,000
---------------------------
---------------------------
Interest 23,466 29,899
Corporate expenses 26,226 18,972
Income taxes -
as above 19,136 11,409
Income taxes
on restructuring
costs 6,584 1,580
--------------------------
Adjusted net
income $ 100,092 $ 92,025
--------------------------
--------------------------
Adjusted Earnings
-----------------
per Share
---------
Basic $ 3.01 $ 2.80
------------ ------------
------------ ------------
Diluted $ 3.01 $ 2.80
------------ ------------
------------ ------------
-------------------------------------------------------
Recreational / Home
Leisure Furnishings
-------------------------------------------------------
2007 2006 2007 2006
(audited) (audited) (audited) (audited)
Total Revenue $ 374,783 $ 340,696 $ 475,317 $ 541,938
-------------------------------------------------------
Cost of sales 301,835 276,718 405,335 461,671
Selling,
general and
administrative 38,260 36,907 37,358 40,328
Depreciation
and amortization 1,736 1,079 5,848 5,948
Research and
development costs - - 2,645 2,838
Restructuring costs - - 6,934 -
-------------------------------------------------------
Earnings from
Operations $ 32,952 $ 25,992 $ 17,197 $ 31,153
-------------------------------------------------------
-------------------------------------------------------
Reconciliation to
-----------------
non-GAAP financial
------------------
measures
--------
(unaudited) (unaudited) (unaudited) (unaudited)
Earnings from
Operations
as above $ 32,952 $ 25,992 $ 17,197 $ 31,153
Restructuring
costs - - 6,934 -
Restructuring
costs in
cost of sales - - 4,007 740
-------------------------------------------------------
Adjusted earnings
from Operations $ 32,952 $ 25,992 $ 28,138 $ 31,893
-------------------------------------------------------
-------------------------------------------------------