EXCHANGES
TSX: DII.B, DII.A
Revenue increases 25.5% to US$552 million
Former Toys "R" Us Vice Chairman named to Dorel's Board
MONTREAL, Nov. 5 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A) today released results for the third quarter and nine months ended September 30, 2008. Revenue for the period was US$552.2 million, up 25.5% from US$440.1 million for the third quarter last year. Organic revenue growth in the quarter was 9%. Net income for the three months was US$27.2 million or US$0.82 per diluted share compared to US$26.4 million or US$0.79 per diluted share a year ago. Included are the restructuring costs at Dorel Europe and Ameriwood. Excluding these costs, net income was US$27.1 million or US$0.82 per diluted share, compared to 2007 third quarter net income of US$27.0 million or US$0.81 per diluted share.
Revenue for the nine months was US$1.7 billion, up 25.6% from the US$1.35 billion a year ago. Year-to-date organic revenue growth was also 9%. Year-to-date net income was US$93.7 million or US$2.81 per diluted share, compared to last year's US$65.1 million or US$1.96 per diluted share. Excluding restructuring costs, nine month net income was US$94.7 million or US $2.84 per diluted share, compared to net income for the same period last year of US$76.1 million or US$2.29 per diluted share.
"Over the past three months Dorel's businesses have performed well relative to the economy and other industries. Sales increased in each of our three segments at a time when consumers are being particularly careful about their purchases. This speaks to the recognition of our brands, the value in our product offerings and the variety of price points throughout our categories. The spiral in commodity prices has ended and we have been able to offset the majority of these increases," commented Dorel President and CEO, Martin Schwartz.
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Summary of Financial Highlights
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Third Quarters Ended September 30
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All figures in thousands of US $, except per share amounts
Change
2008 2007 %
-------------------------------------------------------------------------
Revenues 552,242 440,115 25.5%
Net income 27,208 26,360 3.2%
Per share - Basic 0.82 0.79 3.8%
Per share - Diluted 0.82 0.79 3.8%
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Average number of shares
outstanding - diluted weighted
average 33,399,355 33,398,739
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Summary of Financial Highlights
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Nine Months Ended September 30
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All figures in thousands of US $, except per share amounts
Change
2008 2007 %
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Revenues 1,702,000 1,354,819 25.6%
Net income 93,688 65,144 43.8%
Per share - Basic 2.81 1.96 43.4%
Per share - Diluted 2.81 1.96 43.4%
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Average number of shares
outstanding - diluted weighted
average 33,399,003 33,262,464
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Juvenile Segment
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Third Quarters Ended September 30
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2008 2007
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Change
$ % of rev. $ % of rev. %
Revenues 271,415 249,826 8.6%
Gross profit 84,971 31.3% 75,974 30.4% 11.8%
Earnings from
operations 34,881 12.9% 30,399 12.2% 14.7%
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Nine Months Ended September 30
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2008 2007
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Change
$ % of rev. $ % of rev. %
Revenues 880,480 759,061 16.0%
Gross profit 261,429 29.7% 233,918 30.8% 11.8%
Earnings from
operations 101,955 11.6% 86,912 11.4% 17.3%
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Third quarter revenue in the Juvenile segment was up 8.6% over last year,
with North America and Europe each accounting for approximately one half of
the improvement. Organic sales growth in Europe was 4% in the quarter and 10%
for the nine months. The stronger Euro overall year-to-date in 2008 was also a
contributor, increasing the European growth percentage to 11% for the quarter
and 22% for the nine month period.
In North America, sales also improved from last year, increasing over 6%
for the quarter and 9% year-to-date. This growth was driven by DJG USA which
had successes in the car seat and stroller product categories. Finally, 2008
year-to-date sales include an additional two months of sales at Dorel's
Australian operation as the comparative figures include only seven months of
that division's results.
Recreational/Leisure Segment
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Third Quarters Ended September 30
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2008 2007
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Change
$ % of rev. $ % of rev. %
Revenues(x) 162,291 81,273 99.7%
Gross profit 37,822 23.3% 15,647 19.3% 141.7%
Earnings from
operations 7,393 4.5% 5,979 7.4% 23.6%
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(x) 2008 revenue figures exclude Inter-segment sales of US$ 0.2 million
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Nine Months Ended September 30
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2008 2007
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Change
$ % of rev. $ % of rev. %
Revenues(x) 490,151 288,947 69.6%
Gross profit 118,618 24.0% 57,379 19.9% 106.7%
Earnings from
operations 39,988 8.1% 27,122 9.4% 47.4%
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(x) 2008 revenue figures exclude Inter-segment sales of US$ 4.7 million
The majority of the revenue increase in both the third quarter and first
nine months was due to the acquisitions of Cannondale and Sugoi, that occurred
in February 2008, as well as PTI Sports, whose assets were purchased in June
of this year. In addition, organic sales rose, driven by the segment's strong
mass merchant performance, with sales to these customers exceeding
expectations. Cannondale's business model is impacted more by seasonality and
new model introduction timing than Dorel's Recreational / Leisure mass
merchant business and the third quarter can be the weakest. This was the case
in 2008, but despite this, orders were up for Cannondale year-over-year.
However supply issues for some of Cannondale's carbon models created delays
which are now in the process of being resolved.
Higher margins on Cannondale bicycles and SUGOi apparel again contributed
to increased gross margins in the quarter.
Home Furnishings Segment
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Third Quarters Ended September 30
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2008 2007
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Change
$ % of rev. $ % of rev. %
Revenues(x) 118,536 109,016 8.7%
Gross profit 14,219 11.7% 14,909 13.4% (4.6%)
Earnings from
operations 2,112 1.7% 6,575 5.9% (67.9%)
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(x) 2008 revenue figures exclude Inter-segment sales of US$ 3.3 million
(2007; US$ 2.0 million)
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Nine Months Ended September 30
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2008 2007
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Change
$ % of rev. $ % of rev. %
Revenues(x) 331,369 306,811 8.0%
Gross profit 41,960 12.4% 36,340 11.6% 15.5%
Earnings from
operations 7,667 2.3% 272 0.1% 2718.8%
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(x) 2008 revenue figures exclude Inter-segment sales of US$ 7.7 million
(2007; US$ 5.4 million)
Sales of wooden furniture, both domestic and imported, increased over last
year, while futon sales were flat with the prior year. The first half's
downward sales trend in metal folding furniture persisted into the third
quarter, partially offsetting sales gains in the other divisions.
The year-to-date earnings of US$7.7 million compared to US$0.3 million a
year ago include US$10.6 million of restructuring costs in 2007. Offsetting
this was a 2007 insurance recovery relating to prior periods of US$2.2
million. Excluding these two amounts from 2007 earnings, the variation in
earnings from operations year-over-year was primarily due to the decreased
earnings at Cosco Home & Office.
New Board Member
Dorel also announced today that it has named Richard L. Markee to its Board of Directors, effective immediately. Mr. Markee is a highly regarded retail industry expert. He joined Toys "R" Us, Inc. in 1990 and served in various senior capacities in the Kids "R" Us and Babies "R" Us divisions. In 2003 he was named Vice Chairman of Toys "R" Us, where he was responsible for the growth and expansion of Babies "R" Us. He was also Chairman of Toys "R" Us, Japan. Prior to joining the Toys "R" Us organization, Mr. Markee was a Vice President of Target Stores. He is currently an operating partner at private equity firm Irving Place Capital.
Mr. Markee is a graduate of the University of Wisconsin with a degree in Economics. He resides in Bernardsville, New Jersey with his wife and their two daughters. He replaces Robert P. Baird who relinquished his Board position earlier this year to become President of Dorel's Recreational/Leisure segment.
Quarterly Dividend
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 December 3, 2008 to shareholders of record as at the close of business on November 19, 2008.
Outlook
"Despite serious challenges affecting all companies since the outset of the current year, including rising commodity prices, higher costs for finished goods sourced in China and the weakening economy, Dorel significantly increased its profitability during the first nine months of the year. However, recent economic events have been particularly volatile. As such, going forward, it is difficult to provide clarity as to how consumers, retailers and suppliers are going to react. Obviously, we are not immune to the current situation and we have seen some retailers start to reduce inventories in some of our product lines. Therefore, we do anticipate an impact on our fourth quarter
We believe the fundamentals of our business remain solid and Dorel's products have traditionally done well in recessionary times. Over the years we have seen that despite difficult economic situations, consumers continue to purchase juvenile items and our diverse product line should match up well to their needs. In Recreational / Leisure, we sell bicycles across all price points and the bicycle/fitness industry as a whole is benefitting from recent attitudes towards the environment and personal health. In addition, Dorel has always operated in the value priced home furnishings market and as consumers look toward less expensive furniture purchases, we will be represented. Our strong brands, value priced products and excellent positioning at the mass merchants leave us optimistic that consumers will continue to choose Dorel's products. We continue to be supplied by financially strong, quality vendors with which we have long-standing relationships. Our banking relationships are strong and our credit facilities are secured into 2010. As we look towards the longer term, recent declines in commodity prices and fuel costs, should help mitigate some of the economic uncertainties over the next few quarters.
Fluctuations in currency values against the U.S. dollar also have an impact on our results and recently the majority of these currencies have declined in value. There are hedging contracts in place for 2009. At today's exchange rates, the impact of these contracts would be positive in the fourth quarter of 2008, but the volatility in these rates makes it difficult to quantify this impact.
Our 2008 expected results remain on track to be our best year ever, exceeding our fiscal 2007's record year when, excluding restructuring charges, we recorded the highest net income in our history. Also, with the fall in the value of the Canadian dollar, we remind investors that while our shares trade in Canadian dollars, Dorel reports in U.S. dollars and this should have a positive impact on the Company's Canadian dollar valuation," concluded Mr. Schwartz.
Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, November 5, 2008 at 1:00 P.M. Eastern Time. Interested parties can join the call by dialling 1-800-589-8577. 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 21286598(number sign) on your phone. This tape recording will be available on Wednesday, November 5, 2008 as of 3:00 P.M. until 11:59 P.M. on Wednesday, November 12, 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. Dorel's powerfully branded products include Safety 1st, Quinny, Cosco, Maxi-Cosi and Bebe Confort in Juvenile, as well as Cannondale, Schwinn, GT, Mongoose 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 $2 billion company with 4600 employees, facilities in seventeen countries, and sales worldwide.
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.
DOREL INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
ALL FIGURES IN THOUSANDS OF US $
as at as at
Sept 30, December 30,
2008 2007
------------- --------------
(unaudited) (audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 30,455 $ 22,513
Accounts receivable 344,031 286,924
Income taxes receivable 17,009 6,519
Inventories 457,838 322,332
Prepaid expenses 18,779 10,538
Future income taxes 36,576 35,228
------------- --------------
904,688 684,054
PROPERTY, PLANT AND EQUIPMENT 143,713 140,362
INTANGIBLE ASSETS 356,408 276,383
GOODWILL 568,798 525,235
OTHER ASSETS 37,470 31,870
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$ 2,011,077 $ 1,657,904
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LIABILITIES
CURRENT LIABILITIES
Bank indebtedness $ 4,190 $ 5,836
Accounts payable and accrued liabilities 375,206 325,938
Income taxes payable 32,448 25,532
Future income taxes 110 136
Current portion of long-term debt 8,789 62,906
------------- --------------
420,743 420,348
------------- --------------
LONG-TERM DEBT 446,719 192,385
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PENSION & POST-RETIREMENT BENEFIT
OBLIGATIONS 20,939 20,942
------------- --------------
FUTURE INCOME TAXES 107,307 79,635
------------- --------------
OTHER LONG-TERM LIABILITIES 5,984 6,848
------------- --------------
SHAREHOLDERS' EQUITY
CAPITAL STOCK 177,422 177,271
------------- --------------
CONTRIBUTED SURPLUS 15,361 11,623
------------- --------------
RETAINED EARNINGS 723,126 641,981
ACCUMULATED OTHER COMPREHENSIVE INCOME 93,476 106,871
------------- --------------
816,602 748,852
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1,009,385 937,746
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$ 2,011,077 $ 1,657,904
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DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF INCOME
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
Third Quarters Ended Nine Months Ended
--------------------------- ----------------------------
--------------------------- ----------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2008 2007 2008 2007
------------- ------------- ------------- --------------
(unaudited) (unaudited) (unaudited) (unaudited)
Sales $ 547,211 $ 434,646 $ 1,688,986 $ 1,337,780
Licensing and
commission
income 5,031 5,469 13,014 17,039
------------- ------------- ------------- --------------
TOTAL REVENUE 552,242 440,115 1,702,000 1,354,819
------------- ------------- ------------- --------------
EXPENSES
Cost of sales 415,230 333,585 1,279,993 1,027,182
Selling,
general and
administrative
expenses 86,406 56,904 248,439 182,763
Depreciation
and
amortization 11,125 9,541 34,915 29,209
Research and
development
costs 3,417 1,940 8,638 6,428
Restructuring
costs (175) 875 1,450 12,756
Interest on
long-term debt 5,353 6,117 15,390 18,676
Other interest 200 (476) 722 (237)
------------- ------------- ------------- --------------
521,556 408,486 1,589,547 1,276,777
Income before
income taxes 30,686 31,629 112,453 78,042
Income taxes 3,478 5,269 18,765 12,898
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NET INCOME $ 27,208 $ 26,360 $ 93,688 $ 65,144
------------- ------------- ------------- --------------
------------- ------------- ------------- --------------
EARNINGS PER
SHARE
Basic $ 0.82 $ 0.79 $ 2.81 $ 1.96
------------- ------------- ------------- --------------
------------- ------------- ------------- --------------
Diluted $ 0.82 $ 0.79 $ 2.81 $ 1.96
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SHARES
OUTSTANDING
Basic -
weighted
average 33,397,627 33,397,192 33,397,337 33,249,058
Diluted -
weighted
average 33,399,355 33,398,739 33,399,003 33,262,464
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
Third Quarters Ended Nine Months Ended
--------------------------- ----------------------------
--------------------------- ----------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2008 2007 2008 2007
------------- ------------- ------------- --------------
(unaudited) (unaudited) (unaudited) (unaudited)
NET INCOME $ 27,208 $ 26,360 $ 93,688 $ 65,144
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 (41,232) 19,297 (13,011) 27,758
Portion included
in income as a
result of
reductions in
net investments
in self-
sustaining
foreign
operations,
net of tax of
nil - - (384) -
------------- ------------- ------------- --------------
COMPREHENSIVE
INCOME $ (14,024) $ 45,657 $ 80,293 $ 92,902
------------- ------------- ------------- --------------
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DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
ALL FIGURES IN THOUSANDS OF US $
Nine Months Ended
----------------------------
----------------------------
Sept. 30, Sept. 30,
2008 2007
------------- --------------
(unaudited) (unaudited)
CAPITAL STOCK
Balance, beginning of period $ 177,271 $ 162,555
Issued under stock option plan 151 14,716
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Balance, end of period 177,422 177,271
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CONTRIBUTED SURPLUS
Balance, beginning of period 11,623 6,061
Stock-based compensation 3,738 3,930
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Balance, end of period 15,361 9,991
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RETAINED EARNINGS
Balance, beginning of period 641,981 567,020
Net income 93,688 65,144
Dividends on common shares (12,531) (12,527)
Dividends on deferred share units (12) (4)
------------- --------------
Balance, end of period 723,126 619,633
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ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance, beginning of period 106,871 63,886
Other comprehensive income (13,395) 27,758
------------- --------------
Balance, end of period 93,476 91,644
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TOTAL SHAREHOLDERS' EQUITY $ 1,009,385 $ 898,539
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DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
Third Quarters Ended Nine Months Ended
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--------------------------- ----------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2008 2007 2008 2007
------------- ------------- ------------- --------------
(unaudited) (unaudited) (unaudited) (unaudited)
CASH PROVIDED BY
(USED IN):
OPERATING
ACTIVITIES
Net income $ 27,208 $ 26,360 $ 93,688 $ 65,144
Items not
involving cash:
Depreciation
and
amortization 11,125 9,541 34,915 29,209
Amortization
of deferred
financing
costs 44 51 150 149
Future income
taxes 1,866 4,520 2,526 (4,402)
Stock based
compensation 1,108 1,566 3,738 3,926
Pension and
post-retirement
defined benefit
plans 297 274 1,117 1,148
Restructuring
activities (2,382) (637) (4,259) 14,085
Exchange gain
from reduction
of net
investments in
foreign
operations - - (384) -
(Gain) loss on
disposal of
property,
plant and
equipment (4) 114 20 4
------------- ------------- ------------- --------------
39,262 41,789 131,511 109,263
Net changes in
non-cash
balances related
to operations:
Accounts
receivable 50,344 15,373 4,826 14,559
Inventories (53,399) 14,538 (61,871) 15,491
Prepaid
expenses (570) 1,986 (710) 1,817
Accounts
payable,
accruals and
other
liabilities (20,318) (25,340) 3,297 (52,277)
Income taxes (6,789) (3,847) (4,651) 6,079
------------- ------------- ------------- --------------
(30,732) 2,710 (59,109) (14,331)
------------- ------------- ------------- --------------
------------- ------------- ------------- --------------
CASH PROVIDED BY
OPERATING
ACTIVITIES 8,530 44,499 72,402 94,932
------------- ------------- ------------- --------------
FINANCING
ACTIVITIES
Bank
indebtedness (5,404) (867) (1,473) 158
Repayments of
long-term debt (1,000) (51,868) (62,556) (66,264)
Increase of
long-term debt 4,802 - 262,759 -
Dividends on
common shares (4,173) (4,172) (12,531) (8,349)
Issuance of
capital stock 151 - 151 14,698
------------- ------------- ------------- --------------
CASH (USED IN)
PROVIDED BY
FINANCING
ACTIVITIES (5,624) (56,907) 186,350 (59,757)
------------- ------------- ------------- --------------
INVESTING
ACTIVITIES
Acquisition of
subsidiary
companies (460) (68) (218,542) (2,832)
Additions to
property,
plant and
equipment -
net (5,292) (5,170) (17,116) (13,557)
Deferred
development
costs (3,739) (3,757) (13,628) (10,377)
Intangible
assets (873) (737) (1,361) (1,320)
------------- ------------- ------------- --------------
CASH USED IN
INVESTING
ACTIVITIES (10,364) (9,732) (250,647) (28,086)
------------- ------------- ------------- --------------
Effect of
exchange rate
changes on
cash and cash
equivalents (921) 1,008 (163) 1,846
------------- ------------- ------------- --------------
NET (DECREASE)
INCREASE IN CASH
AND CASH
EQUIVALENTS (8,379) (21,132) 7,942 8,935
Cash and cash
equivalents,
beginning of
period 38,834 55,992 22,513 25,925
------------- ------------- ------------- --------------
CASH AND CASH
EQUIVALENTS,
END OF PERIOD $ 30,455 $ 34,860 $ 30,455 $ 34,860
------------- ------------- ------------- --------------
------------- ------------- ------------- --------------
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOR THE THIRD QUARTERS ENDED SEPTEMBER 30
ALL FIGURES IN THOUSANDS OF US $
--------------------------------------------------------
Total Juvenile
--------------------------------------------------------
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Sales to
customers $ 552,242 $ 440,115 $ 271,415 $ 249,826
Inter-segment
sales - - - -
--------------------------------------------------------
Total revenue 552,242 440,115 271,415 249,826
Cost of sales 415,230 333,585 186,444 173,852
Selling, general
and administra-
tive 78,282 51,244 38,880 36,302
Depreciation and
amortization 11,102 9,518 8,798 7,743
Research and
development
costs 3,417 1,940 2,550 1,369
Restructuring
costs (175) 875 (138) 161
--------------------------------------------------------
Earnings from
operations 44,386 42,953 $ 34,881 $ 30,399
----------------------------
----------------------------
Interest 5,553 5,641
Corporate
expenses 8,147 5,683
Income taxes 3,478 5,269
---------------------------
Net income $ 27,208 $ 26,360
---------------------------
---------------------------
Earnings per
------------
Share
-----
Basic $ 0.82 $ 0.79
------------- -------------
------------- -------------
Diluted $ 0.82 $ 0.79
------------- -------------
------------- -------------
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Recreational / Leisure Home Furnishings
--------------------------------------------------------
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Sales to
customers $ 162,291 $ 81,273 $ 118,536 $ 109,016
Inter-segment
sales 215 - 3,263 2,039
--------------------------------------------------------
Total revenue 162,506 81,273 121,799 111,055
Cost of sales 124,684 65,626 107,580 96,146
Selling, general
and administra-
tive 29,576 9,189 9,826 5,753
Depreciation and
amortization 853 479 1,451 1,296
Research and
development
costs - - 867 571
Restructuring
costs - - (37) 714
--------------------------------------------------------
Earnings from
operations $ 7,393 $ 5,979 $ 2,112 $ 6,575
--------------------------------------------------------
--------------------------------------------------------
--------------------------------------------------------
Eliminations
--------------------------------------------------------
2008 2007
(unaudited) (unaudited)
Sales to
customers $ - $ -
Inter-segment
sales (3,478) (2,039)
--------------------------------------------------------
Total revenue (3,478) (2,039)
Cost of sales (3,478) (2,039)
Selling, general
and administra-
tive - -
Depreciation and
amortization - -
Research and
development
costs - -
Restructuring
costs - -
--------------------------------------------------------
Earnings from
operations $ - $ -
----------------------------
----------------------------
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOR THE NINE MONTHS ENDED SEPTEMBER 30
ALL FIGURES IN THOUSANDS OF US $
--------------------------------------------------------
Total Juvenile
--------------------------------------------------------
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Sales to
customers $ 1,702,000 $ 1,354,819 $ 880,480 $ 759,061
Inter-segment
sales - - - -
--------------------------------------------------------
Total revenue 1,702,000 1,354,819 880,480 759,061
Cost of sales 1,279,993 1,027,182 619,051 525,143
Selling, general
and administra-
tive 227,458 165,005 126,203 113,234
Depreciation and
amortization 34,851 29,142 25,601 23,318
Research and
development
costs 8,638 6,428 6,236 4,409
Restructuring
costs 1,450 12,756 1,434 6,045
--------------------------------------------------------
Earnings from
operations 149,610 114,306 $ 101,955 $ 86,912
----------------------------
----------------------------
Interest 16,112 18,439
Corporate
expenses 21,045 17,825
Income taxes 18,765 12,898
---------------------------
Net income $ 93,688 $ 65,144
---------------------------
---------------------------
Earnings per
------------
Share
-----
Basic $ 2.81 $ 1.96
------------- -------------
------------- -------------
Diluted $ 2.81 $ 1.96
------------- -------------
------------- -------------
--------------------------------------------------------
Recreational / Leisure Home Furnishings
--------------------------------------------------------
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Sales to
customers $ 490,151 $ 288,947 $ 331,369 $ 306,811
Inter-segment
sales 4,660 - 7,657 5,421
--------------------------------------------------------
Total revenue 494,811 288,947 339,026 312,232
Cost of sales 376,193 231,568 297,066 275,892
Selling, general
and administra-
tive 74,047 28,934 27,208 22,837
Depreciation and
amortization 4,583 1,323 4,667 4,501
Research and
development
costs - - 2,402 2,019
Restructuring
costs - - 16 6,711
--------------------------------------------------------
Earnings from
operations $ 39,988 $ 27,122 $ 7,667 $ 272
--------------------------------------------------------
--------------------------------------------------------
----------------------------
Eliminations
----------------------------
2008 2007
(unaudited) (unaudited)
Sales to
customers $ - $ -
Inter-segment
sales (12,317) (5,421)
----------------------------
Total revenue (12,317) (5,421)
Cost of sales (12,317) (5,421)
Selling, general
and administra-
tive - -
Depreciation and
amortization - -
Research and
development
costs - -
Restructuring
costs - -
----------------------------
Earnings from
operations $ - $ -
----------------------------
----------------------------