UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
October 30, 2007
Commission File Number: 0-29712
DOREL INDUSTRIES INC.
________________________________________________________________________________________________
1255 Greene Ave, Suite 300, Westmount, Quebec, Canada H3Z 2A4
_________________________________________________________________________________________________
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F [ ] Form 40-F [ X ]
Indicate by check mark whether the registrant by furnishing the information in this Form is also thereby furnishing
the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [ X ]
![[form6k30oct07002.gif]](form6k30oct07002.gif)
Summary of Financial Highlights | |||
Third Quarter Ended September 30 | |||
| |||
All figures in thousands of US $, except per share amounts | |||
| 2007 | 2006 | Change % |
|
|
|
|
Revenue | 440,115 | 436,300 | 0.9% |
Adjusted net income* | 27,021 | 25,096 | 7.7% |
Per share – Basic | 0.81 | 0.76 | 6.6% |
Per share - Diluted | 0.81 | 0.76 | 6.6% |
Net income | 26,360 | 25,073 | 5.1% |
Per share – Basic | 0.79 | 0.76 | 3.9% |
Per share - Diluted | 0.79 | 0.76 | 3.9% |
|
|
|
|
Average number of shares outstanding – |
|
|
|
diluted weighted average | 33,398,739 | 32,861,092 |
|
*adjusted to exclude after-tax impact of restructuring costs |
|
Summary of Financial Highlights | |||
Nine Months Ended September 30 | |||
| |||
All figures in thousands of US $, except per share amounts | |||
| 2007 | 2006 | Change % |
|
|
|
|
Revenue | 1,354,819 | 1,323,238 | 2.4% |
Adjusted net income* | 76,097 | 67,655 | 12.5% |
Per share – Basic | 2.29 | 2.06 | 11.2% |
Per share - Diluted | 2.29 | 2.06 | 11.2% |
Net income | 65,144 | 67,190 | -3.0% |
Per share – Basic | 1.96 | 2.04 | -3.9% |
Per share - Diluted | 1.96 | 2.04 | -3.9% |
|
|
|
|
Average number of shares outstanding – |
|
|
|
diluted weighted average | 33,262,464 | 32,860,268 |
|
*adjusted to exclude after-tax impact of restructuring costs |
|
“We are very pleased with the most recent quarter and are particularly encouraged that our Juvenile segment is maintaining the overall growth pattern of the past three years. Since 2004, Juvenile segment revenues have grown each year at an average of almost 9%. Earnings improvement has been equally impressive, as illustrated by our 2006 three year compound annual growth rate of 14%, a figure which we will improve upon in 2007. Dorel has become a strong global juvenile player and this segment represents the most significant part of our business. Thus far this year it has accounted for 53% of our revenues and 66% of our adjusted earnings from operations. Similarly the Recreational/Leisure segment has grown over last year and has surpassed Home Furnishings in its contribution to the bottom line,” commented Dorel President and CEO Martin Schwartz.
Juvenile Segment
With strong performances from all divisions, third quarter Juvenile revenues rose 10.6% to US$236.8 million from US$214.0 million last year. Adjusted earnings from operations increased 24% to US$28.7 million from US$23.1 million in the prior year. Nine month revenue was up 8% to US$715.6 million from last year’s US$662.8 million. Adjusted earnings from operations rose 18.7% to US$86.4 million from US$72.8 million.
Revenue at Dorel Europe increased 13.4% for the quarter and 18.5% year-to-date. Organic revenue growth in Europe, excluding the benefit of the stronger Euro, was 5.2% in the quarter and 9.8% year-to-date. Dorel Juvenile Group (DJG) USA’s revenues declined 2% in the quarter and are 10% behind last year’s nine month sales levels. Quarter-over quarter, DJG’s revenues are up 6% as consumers were exposed to new product introductions. Dorel Distribution Canada continues to have a strong year, running at a growth rate of approximately 25%. Dorel Australia, the Company’s newest division, was profitable during the quarter and management is pleased with the progress being made in preparing to sell Dorel’s complete set of brands through this division in 2008.
“More and more, our juvenile brands and products are being recognized and appreciated by consumers worldwide. This is allowing us to steadily grow our business in many markets, particularly in Europe. Our divisions participated in a number of major juvenile shows during the third quarter and in all instances reaction to our products was excellent,” stated Mr. Schwartz.
Recreational/Leisure Segment
Pacific Cycle’s third quarter revenue was up 2.3% to US$81.3 million from US$79.4 million a year ago. Earnings from operations declined 10% to US$6.0 million from US$6.6 million. For the nine months, revenue totalled US$288.9 million, up 9.6% from US$263.8 million last year, while earnings from operations rose 35.2% to US$27.1 million, compared to US$20.1 million last year.
The year-to-date progress underlines the benefits of Pacific’s strategy of strong and exclusive branding. The segment has broadened its product lines in 2007; nonetheless the majority of the revenue growth this year is due to an improvement in its core bicycle business with sales increasing to both new and existing customers in the mass merchant and independent bicycle dealer (IBD) network. Additional dealers continue to join the IBD network, an endorsement of Pacific’s decision to dedicate its GT line exclusively to this channel.
Home Furnishings Segment
Third quarter year-over-year revenue decreased 14.5% to US$122.1 million from US$142.8 million. Adjusted earnings from operations for the comparable periods were down 28.3% to US$9.3 million from US$13.0 million. Year-to-date, revenues were US$350.3 million, down 11.7% from last year’s US$396.7 million. Adjusted earnings from operations were US$17.5 million, down 24.1% from the US$23 million recorded a year ago.
Despite the continuing slowdown in the US housing industry, all Home Furnishing divisions posted higher sales in the third quarter of 2007 versus the second. Quarter-over-quarter revenue growth was 15.6% and sequential adjusted earnings from operations improvement was 64.1%. Other than Dorel Asia, which posted a moderate earnings decline, all divisions posted earnings improvements in the third quarter as compared to the second. Ameriwood’s restructuring program is creating meaningful results, contributing to the segment’s profitability improvement.
Restructuring Costs
Due to restructuring costs incurred, the Company is including adjusted earnings figures in this press release that are considered non-GAAP financial measures, as it believes this permits more meaningful comparisons of its core business performance between the periods presented. Therefore the terms “adjusted earnings from operations”, “adjusted net income” and “adjusted earnings per share” should be considered as non-GAAP measures. Where applicable, the segmented results within this press release exclude restructuring costs and use the term “adjusted” when describing these results.
For the third quarter and year-to-date, the combined after-tax impact of the previously announced restructuring initiatives in Juvenile (Dorel Europe) and Home Furnishings (Ameriwood) is US$0.7 million or US$0.02 per diluted share and US$11.0 million or US$0.33 per diluted share respectively. A complete reconciliation of adjusted earnings to GAAP earnings is attached at the end of this press release.
Taxes
The Company’s year-to-date tax rate is 16.5%, within the expected range of 14% to 18%. The Company’s tax rate can vary widely from quarter to quarter given its multi-jurisdictional nature and the impact of changes within certain jurisdictions in a particular period. For the full year, the tax rate is expected to remain in the 14% to 18% range.
Cash flow
Year-to-date cash flow from operations has increased to $94.9 million, a 41% increase over last year’s $67.3 million. This improvement was realized despite slightly lower after-tax earnings as the majority of the restructuring costs incurred in 2007 are non-cash items. Year-to-date free cash flow was $69.7 million compared to $49.1 million in 2006, an improvement of $20.6 million.
Outlook
“Dorel has evolved over the past several years and this is reflected in the proportion that each of our segments contributes to both revenues and earnings. In 2003, the year that we acquired Ampafrance, now part of Dorel Europe, and a year before we entered the Recreational/Leisure segment, Home Furnishings represented 42% of our revenues and 51% of our earnings from operations. Year-to-date 2007, these figures for Home Furnishings revenues and adjusted earnings from operations are 26% and 13% respectively. While we continually strive to optimize the results of each of our segments, it is obvious that our recent successes stem from the combined strength of our Juvenile and Recreational/Leisure segments. It is our belief that to properly assess Dorel’s shareholder value, it is important to focus on which segments are driving that value,” concluded Mr. Schwartz.
Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, October 30, 2007 at 2:00 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 21250929# on your phone. This tape recording will be available on Tuesday, October 30, 2007 as of 4:00 P.M. until 11:59 P.M. on Tuesday, November 6, 2007.
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 (TSX: DII.B, DII.A) is a global consumer products company engaged in the designing, manufacturing and marketing of a diverse portfolio of powerful consumer brands, sold through its Juvenile, Home Furnishings, and Recreational/Leisure segments. Headquartered in Montreal and with significant operations in the United States and Europe, Dorel employs approximately 4,700 people in 15 countries. Annual sales are US$1.8 billion and are made in over 60 countries worldwide.
US operations include Dorel Juvenile Group, which markets the Cosco and Safety 1st brands as well as Eddie Bauer and Disney Baby licensed products; Ameriwood Industries, which markets ready-to-assemble furniture products under the Ameriwood, Carina, SystemBuild, Altra Furniture and Ridgewood brands; Cosco Home & Office, which markets home/office products under the Cosco brand and Samsonite license as well as home healthcare products under the Cosco Ability Essentials and Adepta brands; and Pacific Cycle, which markets several brands including Schwinn, Mongoose, GT, InSTEP, Playsafe and Roadmaster. In Canada, Dorel operates Dorel Distribution Canada, Ridgewood Industries and Dorel Home Products. Dorel Europe markets juvenile products throughout Europe, under the Bébé Confort, Maxi-Cosi, Quinny, Safety 1st, Babidéal, Mon Bébé and Baby Relax brands. Dorel Asia sources and imports home furnishings products. Dorel is the majority owner of IGC Dorel Pty Ltd, a manufacturer and distributor of juvenile products in Australia, whose two principal brands are Bertini and Mother’s Choice. Dorel also has eight offices in China, headquartered in Shanghai, 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.
DOREL INDUSTRIES INC.
CONSOLIDATED BALANCE SHEET
ALL FIGURES IN THOUSANDS OF US $
| as at |
| as at |
| September |
| December |
| 30, 2007 |
| 30, 2006 |
| (unaudited) |
| (audited) |
|
|
|
|
ASSETS |
|
|
|
CURRENT ASSETS |
|
|
|
Cash and cash equivalents | $ 34,860 |
| $ 25,925 |
Accounts receivable | 288,781 |
| 294,731 |
Income tax receivable | 10,713 |
| 8,264 |
Inventories | 318,230 |
| 326,540 |
Prepaid expenses | 8,259 |
| 9,652 |
Future income taxes | 30,638 |
| 29,046 |
| 691,481 |
| 694,158 |
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT | 136,848 |
| 142,002 |
INTANGIBLE ASSETS | 272,335 |
| 261,966 |
GOODWILL | 516,872 |
| 501,356 |
OTHER ASSETS | 30,269 |
| 27,924 |
| $ 1,647,805 |
| $ 1,627,406 |
|
|
|
|
LIABILITIES |
|
|
|
CURRENT LIABILITIES |
|
|
|
Bank indebtedness | $ 4,227 |
| $ 3,733 |
Accounts payable and accrued liabilities | 290,067 |
| 326,915 |
Income tax payable | 19,930 |
| 10,742 |
Dividends payable | 4,175 |
| - |
Balance of sale payable | - |
| 605 |
Current portion of long-term debt | 62,679 |
| 7,832 |
| 381,078 |
| 349,827 |
|
|
|
|
|
|
|
|
LONG-TERM DEBT | 262,208 |
| 375,135 |
PENSION & POST-RETIREMENT BENEFIT OBLIGATIONS | 20,798 |
| 20,370 |
FUTURE INCOME TAXES | 76,807 |
| 74,833 |
OTHER LONG-TERM LIABILITIES | 8,375 |
| 7,719 |
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
CAPITAL STOCK | 177,271 |
| 162,555 |
CONTRIBUTED SURPLUS | 9,991 |
| 6,061 |
RETAINED EARNINGS | 619,633 |
| 567,020 |
ACCUMULATED OTHER COMPREHENSIVE INCOME | 91,644 |
| 63,886 |
| 898,539 |
| 799,522 |
| $ 1,647,805 |
| $ 1,627,406 |
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENT OF INCOME
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNT
| Third Quarter ended |
| Nine months ended | ||||
|
|
|
|
|
|
|
|
| September 30, 2007 |
| September 30, 2006 |
| September 30, 2007 |
| September 30, 2006 |
| (unaudited) |
| (unaudited) |
| (unaudited) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales | $ 434,646 |
| $ 431,019 |
| $ 1,337,780 |
| $ 1,305,313 |
|
|
|
|
|
|
|
|
Licensing and commission income | 5,469 |
| 5,281 |
| 17,039 |
| 17,925 |
|
|
|
|
|
|
|
|
TOTAL REVENUE | 440,115 |
| 436,300 |
| 1,354,819 |
| 1,323,238 |
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
Cost of sales | 333,585 |
| 330,541 |
| 1,027,182 |
| 1,022,198 |
Selling, general and administrative expenses | 56,904 |
| 56,017 |
| 182,763 |
| 166,151 |
Depreciation and amortization | 9,541 |
| 9,031 |
| 29,209 |
| 27,101 |
Research and development costs | 1,940 |
| 2,177 |
| 6,428 |
| 6,710 |
Restructuring costs | 875 |
| - |
| 12,756 |
| - |
Interest on long-term debt | 6,117 |
| 7,563 |
| 18,676 |
| 22,823 |
Other interest | (476) |
| 31 |
| (237) |
| 234 |
| 408,486 |
| 405,360 |
| 1,276,777 |
| 1,245,217 |
|
|
|
|
|
|
|
|
Income before income taxes | 31,629 |
| 30,940 |
| 78,042 |
| 78,021 |
|
|
|
|
|
|
|
|
Income taxes | 5,269 |
| 5,867 |
| 12,898 |
| 10,831 |
|
|
|
|
|
|
|
|
NET INCOME | $ 26,360 |
| $ 25,073 |
| $ 65,144 |
| $ 67,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
Basic | $0.79 |
| $0.76 |
| $1.96 |
| $2.04 |
Diluted | $0.79 |
| $0.76 |
| $1.96 |
| $2.04 |
|
|
|
|
|
|
|
|
SHARES OUTSTANDING |
|
|
|
|
|
|
|
Basic - weighted average | 33,397,192 |
| 32,860,942 |
| 33,249,058 |
| 32,860,132 |
Diluted - weighted average | 33,398,739 |
| 32,861,092 |
| 33,262,464 |
| 32,860,268 |
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENT OF COMPRHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
| Third Quarter ended |
| Nine months ended | ||||
|
|
|
|
|
|
|
|
| September 30, 2007 |
| September 30, 2006 |
| September 30, 2007 |
| September 30, 2006 |
| (unaudited) |
| (unaudited) |
| (unaudited) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME | $ 26,360 |
| $ 25,073 |
| $ 65,144 |
| $ 67,190 |
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME: |
|
|
|
|
|
|
|
Net change in unrealized foreign currency gains on translation of net investments in self- sustaining foreign operations, net tax of nil | 19,297 |
| (2,274) |
| 27,758 |
| 22,224 |
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME | $ 45,657 |
| $ 22,799 |
| $ 92,902 |
| $ 89,414 |
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENT OF COMPRHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
| Nine months ended | ||
|
|
|
|
| September 30, 2007 |
| September 30, 2006 |
| (unaudited) |
| (unaudited) |
CAPITAL STOCK |
|
|
|
Balance, beginning of period | $ 162,555 |
| $ 162,503 |
Issued under stock option plan | 14,716 |
| 42 |
Balance, end of period | 177,271 |
| 162,545 |
|
|
|
|
CONTRIBUTED SURPLUS |
|
|
|
Balance, beginning of period | 6,061 |
| 3,639 |
Stock-based compensation | 3,930 |
| 1,909 |
Balance, end of period | 9,991 |
| 5,548 |
|
|
|
|
RETAINED EARNINGS |
|
|
|
Balance, beginning of period | 567,020 |
| 478,155 |
Net income | 65,144 |
| 67,190 |
Dividends on common shares | (12,527) |
| - |
Dividends on deferred share units | (4) |
| - |
Balance, end of period | 619,633 |
| 545,345 |
|
|
|
|
ACCUMULATED OTHER COMPREHENSIVE INCOME |
|
|
|
Balance, beginning of period | 63,886 |
| 28,145 |
Other comprehensive income | 27,758 |
| 22,224 |
Balance, end of period | 91,644 |
| 50,369 |
|
|
|
|
TOTAL SHAREHOLDERS' EQUITY | $ 898,539 |
| $ 763,807 |
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
| Third quarter ended |
| Nine months ended | ||||
|
|
|
|
|
|
|
|
| September 30, 2007 |
| September 30, 2006 |
| September 30, 2007 |
| September 30, 2006 |
| (unaudited) |
| (unaudited) |
| (unaudited) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH PROVIDED BY (USED IN): |
|
|
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
Net Income | $ 26,360 |
| $ 25,073 |
| $ 65,144 |
| $ 67,190 |
Items not involving cash: |
|
|
|
|
|
|
|
Depreciation and amortization | 9,541 |
| 9,031 |
| 29,209 |
| 27,101 |
Amortization of deferred financing costs | 51 |
| 38 |
| 149 |
| 474 |
Future income taxes | 4,520 |
| 4,749 |
| (4,402) |
| 4,055 |
Stock based compensation | 1,566 |
| 662 |
| 3,926 |
| 1,909 |
Pension and post-retirement defined benefit plan | 274 |
| 829 |
| 1,148 |
| 1,795 |
Restructuring activities | (637) |
| (107) |
| 14,085 |
| (507) |
Exchange gain from reduction of net investments in foreign operations | - |
| (1,239) |
| - |
| (1,239) |
Loss on disposal of property, plant and equipment | 114 |
| 165 |
| 4 |
| 190 |
| 41,789 |
| 39,201 |
| 109,263 |
| 100,968 |
Changes in non-cash balances related to operations: |
|
|
|
|
|
|
|
Accounts receivable | 15,373 |
| (11,844) |
| 14,559 |
| 16,507 |
Inventories | 14,538 |
| (3,577) |
| 15,491 |
| (36,142) |
Prepaid expenses | 1,986 |
| 870 |
| 1,817 |
| 1,021 |
Accounts payable, accruals and other liabilities | (25,340) |
| (4,117) |
| (52,277) |
| (13,816) |
Income taxes | (3,847) |
| 2,681 |
| 6,079 |
| (1,241) |
| 2,710 |
| (15,987) |
| (14,331) |
| (33,671) |
CASH PROVIDED BY OPERATING ACTIVITIES | 44,499 |
| 23,214 |
| 94,932 |
| 67,297 |
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
Bank indebtedness | (867) |
| 3,180 |
| 158 |
| 2,241 |
Long-term debt | (51,868) |
| (24,669) |
| (66,264) |
| (43,390) |
Dividends on common shares | (4,172) |
| - |
| (8,349) |
| - |
Issuance of capital stock | - |
| - |
| 14,698 |
| 34 |
CASH USED IN FINANCING ACTIVITIES | (56,907) |
| (21,489) |
| (59,757) |
| (41,115) |
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
Acquisition of subsidiary companies | (68) |
| - |
| (2,832) |
| (4,946) |
Additions to property, plant and equipment - net | (5,170) |
| (5,567) |
| (13,557) |
| (13,097) |
Deferred development costs | (3,757) |
| (2,230) |
| (10,377) |
| (6,158) |
Funds held by ceding insurer | - |
| 3,704 |
| - |
| 3,647 |
Intangible assets | (737) |
| (193) |
| (1,320) |
| (2,592) |
CASH USED IN INVESTING ACTIVITIES | (9,732) |
| (4,286) |
| (28,086) |
| (23,146) |
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash | 1,008 |
| 12 |
| 1,846 |
| 655 |
|
|
|
|
|
|
|
|
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (21,132) |
| (2,549) |
| 8,935 |
| 3,691 |
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period | 55,992 |
| 18,585 |
| 25,925 |
| 12,345 |
|
|
|
|
|
|
|
|
CASH AND CASH EQUILVALENTS, END OF PERIOD | $ 34,860 |
| $ 16,036 |
| $ 34,860 |
| $ 16,036 |
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOR THE SECOND QUARTER ENDED SEPTEMBER 30 (Unaudited)
ALL FIGURES IN THOUSANDS OF US $
| Total | Juvenile | Home Furnishings | Recreational/Leisure | ||||
| 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 |
Total Revenue | $440,115 | $436,300 | $236,755 | $214,022 | $122,087 | $142,845 | $ 81,273 | $ 79,433 |
Cost of sales | 333,585 | 330,541 | 164,405 | 149,351 | 103,554 | 117,813 | 65,626 | 63,377 |
Selling, general and administrative | 51,244 | 51,813 | 34,562 | 33,013 | 7,493 | 9,667 | 9,189 | 9,133 |
Depreciation and amortization | 9,518 | 9,007 | 7,742 | 7,050 | 1,297 | 1,677 | 479 | 280 |
Research and development costs | 1,940 | 2,177 | 1,370 | 1,490 | 570 | 687 | - | - |
Restructuring costs | 875 | - | 161 | - | 714 | - | - | - |
Earning from Operations | 42,953 | 42,762 | $ 28,515 | $ 23,118 | $ 8,459 | $ 13,001 | $ 5,979 | $ 6,643 |
Interest | 5,641 | 7,594 |
|
|
|
|
|
|
Corporate expenses | 5,683 | 4,228 |
|
|
|
|
|
|
Income taxes | 5,269 | 5,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income | $ 26,360 | $ 25,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share |
|
|
|
|
|
|
|
|
Basic | $ 0.79 | $ 0.76 |
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|
|
|
|
|
Diluted | $ 0.79 | $ 0.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to non-GAAP financial measures |
|
|
|
|
|
|
| |
Earnings from Operations as above | $ 42,953 | $ 42,762 | $ 28,515 | $ 23,118 | $ 8,459 | $ 13,001 | $ 5,979 | $ 6,643 |
Restructuring costs | 875 | - | 161 | - | 714 | - | - | - |
Restructuring costs in cost of sales | 172 | 35 | - | - | 172 | 35 | - | - |
Adjusted earnings from Operations | 44,000 | 42,797 | $ 28,676 | $23,118 | $ 9,345 | $13,036 | $5,979 | $ 6,643 |
Interest | 5,641 | 7,594 |
|
|
|
|
|
|
Corporate expenses | 5,683 | 4,228 |
|
|
|
|
|
|
Income taxes - as above | 5,269 | 5,867 |
|
|
|
|
|
|
Income taxes on restructuring costs | 386 | 12 |
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|
|
|
|
|
Adjusted net income | $ 27,021 | $ 25,096 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings per Share |
|
|
|
|
|
|
|
|
Basic | $0.81 | $0.76 |
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|
|
|
|
|
Diluted | $0.81 | $0.76 |
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|
|
|
|
DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOR NINE MONTHS ENDED SEPTEMBER 30 (Unaudited)
ALL FIGURES IN THOUSANDS OF US $
| Total | Juvenile | Home Furnishings | Recreational/Leisure | ||||
| 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 |
Total Revenue | $1,354,819 | $1,323,238 | $715,589 | $662,836 | $350,283 | $396,651 | $288,947 | $263,751 |
Cost of sales | 1,027,182 | 1,022,198 | 493,439 | 468,333 | 302,175 | 338,946 | 231,568 | 214,919 |
Selling, general and administrative | 165,005 | 152,199 | 108,015 | 95,894 | 28,056 | 28,329 | 28,934 | 27,976 |
Depreciation and amortization | 29,142 | 27,032 | 23,315 | 21,253 | 4,504 | 4,982 | 1,323 | 797 |
Research and development costs | 6,428 | 6,710 | 4,410 | 4,581 | 2,018 | 2,129 | - | - |
Restructuring costs | 12,756 | - | 6,045 | - | 6,711 | - | - | - |
Earning from Operations | 114,306 | 115,099 | $ 80,365 | $ 72,775 | $ 6,819 | $ 22,265 | $ 27,122 | $ 20,059 |
Interest | 18,439 | 23,057 |
|
|
|
|
|
|
Corporate expenses | 17,825 | 14,021 |
|
|
|
|
|
|
Income taxes | 12,898 | 10,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income | $ 65,144 | $ 67,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share |
|
|
|
|
|
|
|
|
Basic | $ 1.96 | $ 2.04 |
|
|
|
|
|
|
Diluted | $ 1.96 | $ 2.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to non-GAAP financial measures |
|
|
|
|
|
|
| |
Earnings from Operations as above | $ 114,306 | $ 115,099 | $ 80,365 | $ 72,775 | $ 6,819 | $ 22,265 | $ 27,122 | $ 20,059 |
Restructuring costs | 12,756 | - | 6,045 | - | 6,711 | - | - | - |
Restructuring costs in cost of sales | 3,922 | 717 | - | - | 3,922 | 717 | - | - |
Adjusted earnings from Operations | 130,984 | 115,816 | $ 86,410 | $ 72,775 | $ 17,452 | $ 22,982 | $ 27,122 | $ 20,059 |
Interest | 18,439 | 23,057 |
|
|
|
|
|
|
Corporate expenses | 17,825 | 14,021 |
|
|
|
|
|
|
Income taxes - as above | 12,898 | 10,831 |
|
|
|
|
|
|
Income taxes on restructuring costs | 5,725 | 252 |
|
|
|
|
|
|
Adjusted net income | $ 76,097 | $ 67,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings per Share |
|
|
|
|
|
|
|
|
Basic | $ 2.29 | $ 2.06 |
|
|
|
|
|
|
Diluted | $ 2.29 | $ 2.06 |
|
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|
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
DOREL INDUSTRIES INC.
By: /s/ Martin Schwartz_____________
Martin Schwartz
Title: President and Chief Executive Officer
By: /s/ Jeffrey Schwartz_____________
Jeffrey Schwartz
Title: Executive Vice-President,
Chief Financial Officer
October 30, 2007