1This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
]]>OPEN TO: Analysts, investors and all interested parties
DATE: Tuesday, March 12, 2024
TIME: 11:00 AM Eastern Time
CALL: 1-800-319-4610
THE PRESS RELEASE WILL BE PUBLISHED THE DAY PRIOR (MARCH 11) AFTER MARKETS CLOSE,THROUGH GLOBENEWSWIRE.
Please dial in 15 minutes before the conference begins.
If you are unable to call in at this time, you may access a recording of the meeting by calling 1-800-319-6413 and entering the passcode 0720 on your phone. This recording will be available on Tuesday, March 12, 2024 as of 2:30 PM until 11:59 PM on Tuesday, March 19, 2024.
MEDIA WISHING TO QUOTE AN ANALYST SHOULD CONTACT THE ANALYST PERSONALLY FOR PERMISSION.
NOTE TO FIRST-TIME ANALYSTS: Please contact Rick Leckner at Saint Victor Investments Inc. at 514-245-9232 prior to the day of the conference call.
Interested parties may also listen to a live webcast at
https://www.dorel.com/pages/shareholder-information
For further information contact Rick Leckner, Saint Victor Investments Inc. at 514-245-9232.
]]>
Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating two distinct businesses in juvenile products and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi, Safety 1st and Tiny Love, complemented by regional brands such as BebeConfort, Cosco, Mother’s Choice and Infanti. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of US$1.6 billion and employs approximately 4,000 people in facilities located in twenty-two countries worldwide.
]]>Montréal, November 3, 2023 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the third quarter and nine months ended September 30, 2023.
Third quarter revenue was US$359.7 million, down 3.9% from US$374.1 million last year. Reported and adjusted net loss from continuing operations was US$10.4 million or US$0.32 per diluted share, compared to US$36.7 million or US$1.13 per diluted share last year. Adjusted net loss1 from continuing operations was US$34.7 million or US$1.07 per diluted share last year.
Nine-month revenue from continuing operations was US$1.038 billion, a decrease of 15.6% compared to US$1.230 billion last year. Reported and adjusted net loss1 from continuing operations year-to-date was US$58.6 million or US$1.80 per diluted share, compared to US$77.6 million or US$2.38 per diluted share last year. Adjusted net loss1 from continuing operations was US$71.2 million or US$2.19 per diluted share last year.
“We are pleased with the progress of our Dorel Juvenile segment as they delivered double-digit revenue growth and an impressive turnaround in earnings. We are clearly seeing our products winning and delivering market share gains in an industry that was down versus the prior year. Dorel Home revenues continued to grow, improving sequentially with positive indicators at brick-and-mortar. Given the challenges for consumer products companies overall, our two segments are navigating positively, though we recognize the need for further improvement. There is far less retailer inventory and our own inventory levels are at their lowest in two years. The vast majority of all the high-cost inventory from last year has been sold, contributing to improving margins throughout 2023,” stated Dorel President & CEO, Martin Schwartz.
1This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
]]>
OPEN TO: Analysts, investors and all interested parties
DATE: Friday, November 3, 2023
TIME: 1:00 PM Eastern Time
CALL: 1-800-319-4610
THE PRESS RELEASE WILL BE PUBLISHED BEFORE MARKETS OPEN THE SAME DAY THROUGH GLOBENEWSWIRE.
Please dial in 15 minutes before the conference begins.
If you are unable to call in at this time, you may access a recording of the meeting by calling 1-800-319-6413 and entering the passcode 0382 on your phone. This recording will be available on Friday, November 3, 2023 as of 4:30 PM until 11:59 PM on Friday, November 10, 2023.
MEDIA WISHING TO QUOTE AN ANALYST SHOULD CONTACT THE ANALYST PERSONALLY FOR PERMISSION.
NOTE TO FIRST-TIME ANALYSTS: Please contact Rick Leckner at Saint Victor Investments Inc. at 514-245-9232 prior to the day of the conference call.
Interested parties may also listen to a live webcast at
https://www.dorel.com/pages/shareholder-information
For further information contact Rick Leckner, Saint Victor Investments Inc. at 514-245-9232.
]]>Montréal, August 11, 2023 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2023.
Second quarter revenue was US$345.2 million, compared to US$427.8 million, down 19.3% from the same period a year ago. Reported and adjusted net loss1 from continuing operations was US$16.7 million or US$0.51 per diluted share, compared to US$13.6 million or US$0.42 per diluted share last year. Adjusted net loss from continuing operations last year was US$11.6 million or US$0.36 per diluted share last year
Revenue for the six months was US$678.4 million, compared to US$855.9 million, down 20.7% from the prior year. Reported and adjusted net loss1 from continuing operations was US$48.2 million or US$1.48 per diluted share, compared to US$40.8 million or US$1.25 per diluted share a year ago. Adjusted net loss1 from continuing operations for the six months in 2022 was US$36.5 million or US$1.12 per diluted share last year.
“Dorel Juvenile and Dorel Home’s second quarter performances both showed encouraging signs of improvement, with combined adjusted operating losses improving by approximately US$13.0 million compared to the first quarter of the year. Despite a slow start, our Juvenile business posted its first profitable quarter since the third quarter of 2021. This was led by Europe where new product launches, in particular the 360 Pro Family, drove a strong recovery. Despite some challenges in the U.S., we are gaining share in that market. While reporting an operating loss, Dorel Home recorded sequential improvement for the third consecutive quarter. There are clear indications that sales volumes are beginning to improve. The trend is positive as retailers’ glut of high-cost inventory is steadily being depleted. A general softness in the demand for furniture muted Dorel Home’s second quarter. However, July orders were 30% higher than the first half average, evidence that we are seeing light at the end of the tunnel,” commented Dorel President & CEO, Martin Schwartz.
1This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
]]>
OPEN TO: Analysts, investors and all interested parties
DATE: Friday, August 11, 2023
TIME: 1:00 PM Eastern Time
CALL: 1-800-319-4610
THE PRESS RELEASE WILL BE PUBLISHED BEFORE MARKETS OPEN THE SAME DAY THROUGH GLOBENEWSWIRE.
Please dial in 15 minutes before the conference begins.
If you are unable to call in at this time, you may access a recording of the meeting by calling 1-800-319-6413 and entering the passcode 0274 on your phone. This recording will be available on Friday, August 11, 2023 as of 4:30 PM until 11:59 PM on Friday, August 18, 2023.
MEDIA WISHING TO QUOTE AN ANALYST SHOULD CONTACT THE ANALYST PERSONALLY FOR PERMISSION.
NOTE TO FIRST-TIME ANALYSTS: Please contact Rick Leckner at Saint Victor Investments Inc. at 514-245-9232 prior to the day of the conference call.
Interested parties may also listen to a live webcast at
https://www.dorel.com/pages/shareholder-information
For further information contact Rick Leckner, Saint Victor Investments Inc. at 514-245-9232.
]]>At the meeting, a ballot was conducted for the election of directors. According to proxies received and ballots cast, the following individuals were elected as directors of Dorel, with the following results:
Name of Nominee |
Votes For |
% For |
Votes Withheld |
% Withheld |
Martin Schwartz |
46,360,363 |
85.28 |
8,000,879 |
14.72 |
Alan Schwartz |
46,358,600 |
85.28 |
8,002,642 |
14.72 |
Jeffrey Schwartz |
45,725,115 |
84.11 |
8,636,127 |
15.89 |
Jeff Segel |
46,360,897 |
85.28 |
8,000,345 |
14.72 |
Alain Benedetti |
43,626,385 |
80.25 |
10,734,857 |
19.75 |
Brad A. Johnson |
43,796,052 |
80.56 |
10,565,190 |
19.44 |
Sharon Ranson |
46,884,115 |
86.25 |
7,477,127 |
13.75 |
Norman M. Steinberg |
43,606,600 |
80.22 |
10,754,642 |
19.78 |
Maurice Tousson |
45,793,265 |
84.24 |
8,567,977 |
15.76 |
Director biographies are available in the Board of Directors section of Dorel’s website at www.dorel.com.
At the meeting, shareholders also reappointed KPMG LLP, Chartered Professional Accountants, as Dorel’s auditors.
Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating two distinct businesses in juvenile products and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi, Safety 1st and Tiny Love, complemented by regional brands such as BebeConfort, Cosco, Mother’s Choice and Infanti. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of US$1.6 billion and employs approximately 4,000 people in facilities located in twenty-two countries worldwide.
]]>Shareholders are invited to participate by live audio webcast at https://www.dorel.com/pages/shareholder-information
Shareholders will have the ability to interact with Dorel Industries Inc. Senior Management by submitting questions to ir@dorel.com. To be sure your questions are addressed during the Q&A portion of the annual meeting, it is recommended that you submit them no later than 5 p.m. on Friday, May 19, 2023.
Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating two distinct businesses in juvenile products and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi, Safety 1st and Tiny Love, complemented by regional brands such as BebeConfort, Cosco, Mother’s Choice and Infanti. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of US$1.6 billion and employs approximately 4,000 people in facilities located in twenty-two countries worldwide.
For more information: Rick Leckner Tel.: (514) 245-9232
Montréal, May 15, 2023 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the first quarter ended March 31, 2023.
Revenue from the first quarter from continuing operations was US$333.2 million, down 22.2%, from US$428.0 million a year ago. Reported and adjusted net loss1 from continuing operations was US$31.5 million or US$0.97 per diluted share compared to the reported net loss from continuing operations of US$27.2 million or US$0.84 per diluted share a year ago. Adjusted net loss from continuing operations for the first quarter in 2022 was US$24.8 million or US$0.76 per diluted share.
“The environment in which our segments operate remains challenging as retailers are very cautious on inventory and replenishment ordering. In the Home segment, this is compounded by consumers remaining reluctant to spend their disposable income on furniture. We also saw some market weakness in Juvenile in North America which masked the fact that we gained market share in many of our categories. Major retailers also struggled to keep proper in-stock levels on shelves which limited sales opportunities. As previously disclosed, both Dorel Home and Dorel Juvenile were affected by a late-quarter network security incident which prevented shipping. This resulted in a reduction in sales and net income of US$13.0 million and US$4.0 million respectively. We were unable to ship in certain locations, from several days up to two weeks, but we are now fully operational and have shipped most of the delayed orders. Looking forward, we expect a positive turnaround in Juvenile as soon as the second quarter as we have introduced some of our best new products in years with several more to come. The path to recovery for Home is longer, but we expect our retail partners to begin ordering on a more regular cadence in the mid-to-near future,” stated Dorel CEO & President, Martin Schwartz.
1This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
]]>
OPEN TO: Analysts, investors and all interested parties
DATE: Monday, May 15, 2023
TIME: 11:00 AM Eastern Time
CALL: 1-888-396-8049
THE PRESS RELEASE WILL BE PUBLISHED BEFORE MARKETS OPEN THE SAME DAY THROUGH GLOBENEWSWIRE.
Please dial in 15 minutes before the conference begins.
If you are unable to call in at this time, you may access a recording of the meeting by calling 1-877-674-7070 and entering the passcode 608196 on your phone. This recording will be available on Monday, May 15, 2023 as of 2:30 PM until 11:59 PM on Monday, May 22, 2023.
MEDIA WISHING TO QUOTE AN ANALYST SHOULD CONTACT THE ANALYST PERSONALLY FOR PERMISSION.
NOTE TO FIRST-TIME ANALYSTS: Please contact Saint Victor Investments Inc. at 514-245-9232 prior to the day of the conference call.
Interested parties may also listen to a live webcast at https://www.dorel.com/eng/shareholder-information.
For further information contact Rick Leckner, Saint Victor Investments Inc. at 514-245-9232.
]]>Upon discovery of the network security incident on March 29, 2023, Dorel immediately implemented countermeasures with the assistance of leading industry experts and other advisors. Dorel took proactive measures to secure its business operations, including taking certain systems and services offline. While the network security incident caused temporary disruption to parts of Dorel’s business operations, Dorel’s systems are contained, and our services are operational.
Dorel believes that the timing of this incident will result in a reduction in the first quarter 2023 revenues of an estimated US$12.0 to US$15.0 million, of which Dorel expects the majority to be recouped in the second quarter. The negative impact on net income for the first quarter is expected to be between US$4.0 to US$5.0 million, which is made up principally of margin on these lost revenues.
Dorel will release first quarter 2023 results before the market opens on Monday, May 15, 2023.
Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating two distinct businesses in juvenile products and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi, Safety 1st and Tiny Love, complemented by regional brands such as BebeConfort, Cosco, Mother’s Choice and Infanti. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of US$1.6 billion and employs approximately 4,000 people in facilities located in twenty-two countries worldwide.
Caution Regarding Forward-Looking Statements
Certain statements included in this press release, including statements relating to the network security incident described above, may constitute “forward-looking statements” within the meaning of applicable Canadian securities legislation. Except as may be required by Canadian securities laws, the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties, including statements regarding the impact of the macro-economic environment, including the duration and magnitude of the COVID-19 pandemic, the ability to control resurgences and new variants worldwide and other recent macro-economic events and conditions, including inflationary pressures, changes in consumer spending, exchange rate fluctuations and increases in interest rates on the Company’s business, financial position and operations, and are based on several assumptions which give rise to the possibility that actual results could differ materially from the Company’s expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, the Company cannot guarantee that any forward-looking statement will materialize, or if any of them do, what benefits the Company will derive from them. Forward-looking statements are provided in this press release for the purpose of giving information about management’s current expectations and plans and allowing investors and others to get a better understanding of the Company’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.
Forward-looking statements made in this press release, including those relating to the network security incident described above, are based on a number of assumptions that the Company believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations expressed in or implied by the forward-looking statements include:
These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in the Company’s annual MD&A and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors set out in the previously mentioned documents are expressly incorporated by reference herein in their entirety.
The Company cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial may also have a material adverse effect on the Company’s business, financial condition, or results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
(DII_Network Security Incident ENG)
(DII_Incident lié à la Sécurité des Réseaux FR)
]]>
Montréal, March 13, 2023 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the fourth quarter and year ended December 30, 2022.
Fourth quarter revenue from continuing operations was US$340.3 million, down 21.8%, from US$435.3 million a year ago. Reported net loss from continuing operations for the quarter was US$41.4 million or US$1.27 per diluted share compared to US$29.6 million or US$0.91 per diluted share a year ago. Adjusted net loss from continuing operations was US$39.8 million or US$1.22 per diluted share compared to US$12.0 million or US$0.37 per diluted share in the fourth quarter a year ago.
Revenue for the full year from continuing operations was US$1.57 billion, down 10.7%, from US$1.76 billion the previous year. Reported net loss from continuing operations was US$118.9 million or US$3.65 per diluted share, compared to US$111.8 million or US$3.44 per diluted share the previous year. Adjusted net loss1 from continuing operations for the year was US$111.0 million or US$3.41 per diluted share, compared to US$82.7 million or US$2.54 per diluted share in 2021.
“Fourth quarter performance was disappointing. Dorel Home sales volumes decreased markedly as our major retail partners continued to reduce ordering overall. In addition, excess inventory across the industry means we, as well as our competition, are discounting prices to move higher cost inventory, further pressuring profitability. This combination of less favourable pricing and significantly reduced overhead absorption at our facilities due to the lower sales, severely reduced earnings. Substantial cost cutting and inventory reductions have been implemented which will start to help earnings going forward. The picture is brighter at Dorel Juvenile where things are moving in the right direction. However, major U.S. retail customers continued to curtail orders, and therefore segment sales declined despite a generally positive point-of-sale performance. While the quarter was soft, Juvenile is in a recovery mode with positive signs, particularly in Europe. Several new products were launched during the quarter, and we have gained market share in a number of key juvenile categories. Inflation and potential recession pressures continue to weigh on the economy, however Dorel’s opening price point products have traditionally proved popular with consumers during these periods,” stated Dorel CEO & President, Martin Schwartz.
1This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
]]>Conference Call:
Open to: Analysts, investors and all interested parties
DATE: Tuesday, March 14, 2023
TIME: 11:00 AM Eastern Time
CALL: 1-888-396-8049
THE PRESS RELEASE WILL BE PUBLISHED THE DAY PRIOR (MARCH 13) AFTER MARKETS CLOSE, THROUGH GLOBENEWSWIRE.
Please dial in 15 minutes before the conference begins.
If you are unable to call in at this time, you may access a recording of the meeting by calling 1-877-674-7070 and entering the passcode 738710 on your phone. This recording will be available on Tuesday March 14, 2023 as of 2:30 PM until 11:59 PM on Tuesday, March 21, 2023.
MEDIA WISHING TO QUOTE AN ANALYST SHOULD CONTACT THE ANALYST PERSONALLY FOR PERMISSION.
NOTE TO FIRST-TIME ANALYSTS: Please contact Saint Victor Investments Inc. at 514-245-9232 prior to the day of the conference call.
Interested parties may also listen to a live webcast at https://www.dorel.com/pages/shareholder-information.
For further information contact Rick Leckner, Saint Victor Investments Inc. at 514-245-9232.
Montréal, November 4, 2022 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the third quarter and nine months ended September 30, 2022.
Third quarter revenue was US$374.1 million, down 14.4% from US$437.2 million last year. Reported net loss from continuing operations was US$36.7 million or US$1.13 per diluted share, compared to US$68.0 million or US$2.09 per diluted share last year. Adjusted net loss from continuing operations was US$34.7 million or US$1.07 per diluted share, compared to US$66.8 million or US$2.06 per diluted share a year ago. Last year’s third quarter loss included US$61.7 million, or US$1.90 per diluted share as the result of an unfavourable tax assessment.
Nine-month revenue from continuing operations was US$1.23 billion, a decrease of 7.1% compared to US$1.32 billion last year. Reported net loss from continuing operations year-to-date was US$77.6 million or US$2.38 per diluted share, compared to US$82.2 million or US$2.53 per diluted share in 2021. Nine-month adjusted net loss1 from continuing operations was US$71.2 million or US$2.19 per diluted share, compared to US$70.8 million or US$2.18 per diluted share a year ago.
“It was a difficult quarter as we saw a significant drop in orders from our U.S. brick and mortar retail partners. These customers are reacting to the overall negative economic environment and poor consumer sentiment by focusing on reducing their in-store inventory levels across many product categories, including ours. We are also carrying excess inventories as the supply chain bottlenecks have eased, resulting in a considerable influx of merchandise as we entered the third quarter. At Dorel Home, this situation started in the second quarter and we responded with promotional activities in an effort to reduce inventory. The drop in orders at Dorel Juvenile in the U.S. was much more than we expected, after what was a tremendous second quarter. This coupled with the U.S. dollar strengthening even more in the third quarter were the two biggest drivers of our underperformance. Further, consumers in Europe are much more cautious due to the continued instability abroad and the particularly acute fall in the value of the Euro and Pound Sterling. As we move forward, our focus for the balance of the year will be to drive sales to reduce inventories and generate cash to prepare for 2023 where we anticipate lower input costs and a return to more normal ordering levels,” stated Dorel President & CEO, Martin Schwartz.
1This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
]]>Conference Call:
Open to: Analysts, investors and all interested parties
DATE: Friday, November 4, 2022
TIME: 1:00 PM Eastern Time
CALL: 1-888-396-8049
THE PRESS RELEASE WILL BE PUBLISHED THE DAY PRIOR (AUGUST 8) AFTER MARKETS CLOSE, THROUGH GLOBENEWSWIRE.
Please dial in 15 minutes before the conference begins.
If you are unable to call in at this time, you may access a recording of the meeting by calling 1-877-674-7070 and entering the passcode 574262 on your phone. This recording will be available on Tuesday, August 9, 2022 as of 2:00 PM until 11:59 PM on Friday, November 11, 2022.
MEDIA WISHING TO QUOTE AN ANALYST SHOULD CONTACT THE ANALYST PERSONALLY FOR PERMISSION.
NOTE TO FIRST-TIME ANALYSTS: Please contact Saint Victor Investments Inc. at 514-245-9232 prior to the day of the conference call.
Interested parties may also listen to a live webcast at https://www.dorel.com/pages/shareholder-information.
For further information contact Rick Leckner, Saint Victor Investments Inc. at 514-245-9232.
Montréal, August 8, 2022 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2022.
Second quarter revenue was US$427.8 million, compared to US$447.6 million, down 4.4% from the same period a year ago. Reported net loss from continuing operations was US$13.6 million or US$0.42 per diluted share, compared to US$1.4 million or US$0.04 per diluted share last year. Adjusted net loss1 from continuing operations was US$11.6 million or US$0.36 per diluted share, compared to US$0.6 million or US$0.02 per diluted share last year.
Revenue for the six months was US$855.9 million, compared to US$886.2 million, down 3.4% from prior year. Reported net loss from continuing operations was US$40.8 million or US$1.25 per diluted share, compared to US$14.2 million or US$0.44 per diluted share a year ago. First half adjusted net loss1 from continuing operations was US$36.5 million or US$1.12 per diluted share, compared to US$4.0 million or US$0.12 per diluted share last year.
“Both of our segments had challenges, but for reasons unique to each. Dorel Juvenile second quarter revenue was the strongest since 2019 with gains in market share in its major markets. Excellent performance in the Americas more than offset declines in Europe where consumer spending is being impacted by high inflation and concerns related to the war in Ukraine. We are pleased that we are either holding or growing market share and are receiving positive reaction to newly launched juvenile products. The most significant issue in Juvenile was the surging U.S. dollar which significantly reduced earnings. At Dorel Home the supply chain backlog cleared, thus we received a significant amount of inventory in the quarter. At the same time there was a drop in consumer demand and orders as our retail partners also dealt with higher in-stock levels. This impacted earnings not only because of lower sales, but also higher operating costs. Both segments are carrying excess inventory due to the easing of the supply chain backlog and now we are focused on right-sizing our inventory levels across the balance of the year,” stated Dorel President & CEO, Martin Schwartz.
1This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
]]>Montréal, August 8, 2022 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2022.
Second quarter revenue was US$427.8 million, compared to US$447.6 million, down 4.4% from the same period a year ago. Reported net loss from continuing operations was US$13.6 million or US$0.42 per diluted share, compared to US$1.4 million or US$0.04 per diluted share last year. Adjusted net loss from continuing operations was US$11.6 million or US$0.36 per diluted share, compared to US$0.6 million or US$0.02 per diluted share last year.
Revenue for the six months was US$855.9 million, compared to US$886.2 million, down 3.4% from prior year. Reported net loss from continuing operations was US$40.8 million or US$1.25 per diluted share, compared to US$14.2 million or US$0.44 per diluted share a year ago. First half adjusted net loss1 from continuing operations was US$36.5 million or US$1.12 per diluted share, compared to US$4.0 million or US$0.12 per diluted share last year.
“Both of our segments had challenges, but for reasons unique to each. Dorel Juvenile second quarter revenue was the strongest since 2019 with gains in market share in its major markets. Excellent performance in the Americas more than offset declines in Europe where consumer spending is being impacted by high inflation and concerns related to the war in Ukraine. We are pleased that we are either holding or growing market share and are receiving positive reaction to newly launched juvenile products. The most significant issue in Juvenile was the surging U.S. dollar which significantly reduced earnings. At Dorel Home the supply chain backlog cleared, thus we received a significant amount of inventory in the quarter. At the same time there was a drop in consumer demand and orders as our retail partners also dealt with higher in-stock levels. This impacted earnings not only because of lower sales, but also higher operating costs. Both segments are carrying excess inventory due to the easing of the supply chain backlog and now we are focused on right-sizing our inventory levels across the balance of the year,” stated Dorel President & CEO, Martin Schwartz.
1This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
]]>Conference Call:
Open to: Analysts, investors and all interested parties
DATE: Tuesday, August 9, 2022
TIME: 11:00 AM Eastern Time
CALL: 1-888-396-8049
THE PRESS RELEASE WILL BE PUBLISHED THE DAY PRIOR (AUGUST 8) AFTER MARKETS CLOSE, THROUGH GLOBENEWSWIRE.
Please dial in 15 minutes before the conference begins.
If you are unable to call in at this time, you may access a recording of the meeting by calling 1-877-674-7070 and entering the passcode 221341 on your phone. This recording will be available on Tuesday, August 9, 2022 as of 2:00 PM until 11:59 PM on Tuesday, August 16, 2022.
MEDIA WISHING TO QUOTE AN ANALYST SHOULD CONTACT THE ANALYST PERSONALLY FOR PERMISSION.
NOTE TO FIRST-TIME ANALYSTS: Please contact Saint Victor Investments Inc. at 514-245-9232 prior to the day of the conference call.
Interested parties may also listen to a live webcast at https://www.dorel.com/pages/shareholder-information.
For further information contact Rick Leckner, Saint Victor Investments Inc. at 514-245-9232.
At the meeting, a ballot was conducted for the election of directors. According to proxies received and ballots cast, the following individuals were elected as directors of Dorel, with the following results:
Name of Nominee |
Votes For |
% For |
Votes Withheld |
% Withheld |
Martin Schwartz |
53,693,478 |
97.16 |
1,571,388 |
2.84 |
Alan Schwartz |
53,675,813 |
97.12 |
1,589,053 |
2.88 |
Jeffrey Schwartz |
53,408,449 |
96.64 |
1,856,417 |
3.36 |
Jeff Segel |
53,678,516 |
97.13 |
1,586,350 |
2.87 |
Maurice Tousson |
53,666,039 |
97.11 |
1,598,827 |
2.89 |
Alain Benedetti |
53,602,709 |
96.99 |
1,662,157 |
3.01 |
Norman M. Steinberg |
52,789,218 |
95.52 |
2,475,648 |
4.48 |
Sharon Ranson |
53,329,618 |
96.50 |
1,935,248 |
3.50 |
Brad A. Johnson |
53,807,060 |
97.36 |
1,457,806 |
2.64 |
Director biographies are available in the Board of Directors section of Dorel’s website at www.dorel.com.
At the meeting, shareholders also reappointed KPMG LLP, Chartered Professional Accountants, as Dorel’s auditors.
At the meeting, a resolution in the form annexed as Schedule B to Dorel’s Management Proxy Circular dated April 12, 2022, approving an amendment to Dorel’s 2004 Directors’ Deferred Share Unit Plan, was adopted on a vote by ballot as follows:
Votes For | Votes Against |
Number |
% |
Number |
% |
49,331,343 |
89.26 |
5,933,523 |
10.74 |
In addition, a resolution in the form annexed as Schedule C to Dorel’s Management Proxy Circular dated April 12, 2022, approving an amendment to Dorel’s 2009 Executive Deferred Share Unit Plan, was adopted on a vote by ballot as follows:
Votes For | Votes Against |
Number |
% |
Number |
% |
49,325,256 |
89.25 |
5,939,610 |
10.75 |
Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating two distinct businesses in juvenile products and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi and Tiny Love, complemented by regional brands such as Safety 1st, BebeConfort, Cosco and Infanti. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of US$1.7 billion and employs approximately 4,200 people in facilities located in twenty-two countries worldwide.
]]>Shareholders are invited to participate by live audio webcast at https://www.dorel.com/pages/shareholder-information
Shareholders will have the ability to interact with Dorel Industries Inc. Senior Management by submitting questions to ir@dorel.com. To be sure your questions are addressed during the Q&A portion of the annual meeting, it is recommended that you submit them no later than 5 p.m. on Friday, May 20, 2022.
Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating two distinct businesses in juvenile products and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi and Tiny Love, complemented by regional brands such as Safety 1st, BebeConfort, Cosco and Infanti. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of US$1.7 billion and employs approximately 4,200 people in facilities located in twenty-two countries worldwide.
For more information: Rick Leckner Tel.: (514) 245-9232
]]>Montréal, May 6, 2022 — Dorel Industries Inc. (TSX: DII.B, DII.A) today released results for the first quarter ended March 31, 2022.
“First quarter challenges generally mirrored those of the previous quarter. Supply chain issues, high inflation as well as its impact on pricing and our consumers and uncertainty in Europe all contributed to lower earnings in the quarter. Sales at Dorel Home declined versus prior year as consumers made fewer purchases of home office furniture with the easing of Covid-19 and retail price points increased. At Dorel Juvenile, retail price points increased as well, but demand remained strong in most markets. We have implemented price increases in both segments that are expected to improve results through the balance of the year. Despite the current environment causing earnings to be less than prior year, we remain confident in our ability to improve earnings going forward as we are doing the things we can control, and fundamentals remain strong. Our strategic plans in both segments remain on track,” stated Dorel President & CEO, Martin Schwartz.
Revenue for the first quarter from continuing operations was US$428.0 million, down 2.4% compared to US$438.6 million a year ago. Reported net loss from continuing operations was US$27.2 million or US$0.84 per diluted share, compared to US$12.8 million or US$0.40 per diluted share last year. Adjusted net loss1 from continuing operations was US$24.8 million or US$0.76 per diluted share compared to US$3.4 million or US$0.10 per diluted share a year ago.
1This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
]]>Conference Call:
Open to: Analysts, investors and all interested parties
DATE: Friday, May 6, 2022
TIME: 1:00 PM Eastern Time
CALL: 1-888-440-3307
THE PRESS RELEASE WILL BE PUBLISHED BEFORE MARKETS OPEN THE SAME DAY THROUGH GLOBENEWSWIRE.
Please dial in 15 minutes before the conference begins.
If you are unable to call in at this time, you may access a recording of the meeting by calling 1-800-770-2030 and entering the passcode 4231183 on your phone. This recording will be available on Friday, May 6, 2022 as of 4:00 PM until 11:59 PM on Friday, May 13, 2022.
MEDIA WISHING TO QUOTE AN ANALYST SHOULD CONTACT THE ANALYST PERSONALLY FOR PERMISSION.
NOTE TO FIRST-TIME ANALYSTS: Please contact Saint Victor Investments Inc. at 514-245-9232 prior to the day of the conference call.
Interested parties may also listen to a live webcast at https://www.dorel.com/pages/shareholder-information.
For further information contact Rick Leckner, Saint Victor Investments Inc. at 514-245-9232.
Montréal, March 10, 2022 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the fourth quarter and year ended December 30, 2021.
“The fourth quarter was a difficult one as continuing global supply chain constraints and related higher costs for products, services and commodities pressured margins, reducing earnings at both Dorel Home and Dorel Juvenile. Demand was strong at many of our divisions; however, frustratingly, like many companies, we were unable to secure the necessary goods or parts to fully satisfy consumer requirements. While these external forces are beyond our control, internally we are building for the future by investing to strengthen operations and lessen our traditional reliance on imports. Early in January we announced the use of the net proceeds from the sale of Dorel Sports. We rewarded shareholders in a meaningful way and significantly strengthened our balance sheet by reducing indebtedness. This has placed Dorel in a strong financial position and provides the ability to navigate current challenges and solidify our businesses to maximize opportunities in the longer term,” stated Dorel CEO & President, Martin Schwartz.
Fourth quarter revenue from continuing operations was US$435.3 million, down 0.9% from US$439.0 million a year ago. Reported net loss from continuing operations for the quarter was US$29.6 million or US$0.91 per diluted share compared to US$13.3 million or US$0.41 per diluted share a year ago. Adjusted net loss from continuing operations was US$12.0 million or US$0.37 per diluted share compared to US$9.8 million or US$0.30 per diluted share in the fourth quarter a year ago.
Revenue for the full year from continuing operations was US$1.8 billion, up 2.4% from US$1.7 billion the previous year. Reported net loss from continuing operations was US$111.8 million or US$3.44 per diluted share, compared to US$64.8 million or US$1.99 per diluted share the previous year. Adjusted net loss1 from continuing operations for the year was US$82.7 million or US$2.54 per diluted share, compared to US$13.1 million or US$0.40 per diluted share in 2020.
1 This is a non-GAAP financial ratio or measure with no standardized meaning. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
]]>Open to: Analysts, investors and all interested parties
DATE: Friday, March 11, 2022
TIME: 11:00 AM Eastern Time
CALL: 1-888-440-3307
THE PRESS RELEASE WILL BE PUBLISHED THE DAY PRIOR (MARCH 10) AFTER MARKETS CLOSE, THROUGH GLOBENEWSWIRE.
Please dial in 15 minutes before the conference begins.
If you are unable to call in at this time, you may access a recording of the meeting by calling 1-800-770-2030 and entering the passcode 4231183 on your phone. This recording will be available on Friday, March 11, 2022 as of 2:00 PM until 11:59 PM on Friday, March 18, 2022.
MEDIA WISHING TO QUOTE AN ANALYST SHOULD CONTACT THE ANALYST PERSONALLY FOR PERMISSION.
NOTE TO FIRST-TIME ANALYSTS: Please contact Saint Victor Investments Inc. at 514-245-9232 prior to the day of the conference call.
Interested parties may also listen to a live webcast at https://www.dorel.com/eng/shareholder-information.
For further information contact Rick Leckner, Saint Victor Investments Inc. at 514-245-9232.
]]>“We are very pleased to have completed the sale of Dorel Sports to a great company like Pon. On behalf of the Board of Directors, I again thank the Dorel Sports team for their commitment to Dorel and their great achievements,” said Martin Schwartz, Dorel President and CEO. “We believe that with this sale, Dorel has realized full value for Dorel Sports, for the benefit of Dorel and our shareholders,” Mr. Schwartz added.
Dorel also announced that its Board of Directors has declared a special dividend of US $12.00 per share on Dorel’s outstanding Class B Subordinate Voting Shares (“Class B Shares”) and Class A Multiple Voting Shares (“Class A Shares”), representing an aggregate amount of approximately US $390 million. The special dividend will be payable on February 1, 2022 to shareholders of record as at the close of business on January 18, 2022. The full amount of the special dividend is designated as an eligible dividend for purposes of section 89(1) of the Income Tax Act (Canada).
“The declaration of the special dividend is consistent with Dorel’s commitment to return value to our shareholders. After consulting with Dorel’s financial advisors, the Board of Directors has decided to use the net proceeds from the sale of Dorel Sports to pay the special dividend and to reduce Dorel’s indebtedness. We believe that the result will be both value for our shareholders and a stronger balance sheet for Dorel going forward,” said Martin Schwartz.
The Toronto Stock Exchange (“TSX”) has determined to implement its “due bill” trading procedures with respect to Dorel’s special dividend of US $12.00 per share. Due bills are entitlements which attach to listed securities undergoing certain material corporate events, including a cash dividend in an amount equal to or greater than 25% of the market value of the underlying listed securities. In the case of Dorel’s special dividend, due bills represent entitlement to the cash amount of US $12.00 per share.
For trading purposes, due bills will attach to Dorel’s Class B Shares and Class A Shares from the opening of business on Monday, January 17, 2022, being the first trading day prior to the record date of Tuesday, January 18, 2022, until the payment date of Tuesday, February 1, 2022, inclusively, so that Dorel’s shares will carry the value of the special dividend until the dividend has been paid. Dorel’s Class B Shares and Class A Shares will commence trading on an “ex-dividend” basis on Wednesday, February 2, 2022, as of which date purchasers of the shares will no longer have an attaching entitlement to payment of the special dividend. The due bill redemption date will be February 3, 2022.
Dorel also announced that the TSX has approved Dorel’s normal course issuer bid (“NCIB”). Under the NCIB, Dorel may purchase for cancellation a maximum of 1,891,222 Class B Shares, representing 10% of the 18,912,225 Class B Shares forming the public float. The shares may be purchased through the facilities of the TSX and on alternative trading systems in Canada over the twelve-month period from January 6, 2022 to January 5, 2023. As of December 24, 2021, Dorel had 28,359,191 Class B Shares issued and outstanding.
Any shares purchased by Dorel under the NCIB will be at the market price of the shares at the time of such purchases. The actual number of Class B Shares that may be purchased and the timing of any such purchases will be determined by Dorel. Any purchases made by Dorel pursuant to the NCIB will be made in accordance with the rules and policies of the TSX.
During the six months ended November 30, 2021, the average daily trading volume for Dorel’s Class B Shares on the TSX was 111,724 shares. Consequently, under the policies of the TSX, Dorel will have the right to repurchase during any one trading day a maximum of 27,931 Class B Shares, representing 25% of the average daily trading volume. In addition, Dorel may make, once per calendar week, a block purchase (as such term is defined in the TSX Company Manual) of shares not directly or indirectly owned by insiders of Dorel, in accordance with the policies of the TSX. Dorel has not repurchased any Class B Shares during the last twelve months.
The Board of Directors of Dorel believes that, at appropriate times, repurchasing its shares through the NCIB represents a good use of Dorel’s financial resources, as such action can protect and enhance shareholder value when opportunities arise.
To the knowledge of Dorel, no director or senior officer and no person acting jointly or in concert with Dorel currently intends to sell shares during the NCIB. However, sales by such persons through the facilities of the TSX may occur if any such person makes a decision unrelated to the NCIB. The benefits to any such person whose shares are purchased would be the same as the benefits available to all other shareholders whose shares are purchased under the NCIB.
In connection with the NCIB, Dorel has entered into an automatic share purchase plan with BMO Nesbitt Burns Inc. in order to allow for purchases under the NCIB during Dorel’s “black-out” periods, as permitted by the TSX Company Manual and the Securities Act (Québec).
Baird Global Investment Banking and BMO Capital Markets acted as financial advisors and Fasken Martineau DuMoulin LLP as legal counsel to Dorel, and Lazard acted as financial advisor and Goodmans LLP as legal advisor to Pon in connection with the sale of Dorel Sports.
Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating two distinct businesses in juvenile products and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi, Quinny and Tiny Love, complemented by regional brands such as Safety 1st, Bébé Confort, Cosco and Infanti. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of US$2.8 billion and employs approximately 6,600 people in facilities located in twenty-two countries worldwide.
Certain statements included in this press release may constitute “forward-looking statements” within the meaning of applicable Canadian securities laws, including, without limitation, statements regarding the use of the net proceeds from the sale of Dorel Sports to Pon Holdings B.V., in particular the reduction of Dorel’s indebtedness and the declaration and payment of the special dividend referred to above. Such forward-looking statements are subject to important risks and uncertainties including, without limitation, changes in applicable laws or regulations, and decisions by Dorel concerning the use of the net proceeds from the sale of Dorel Sports. Accordingly, there can be no assurance as to the use of the net proceeds, including return of capital to shareholders, from the sale of Dorel Sports, nor can there be any assurance as to the benefits that Dorel will derive from the sale. Except as may be required by Canadian securities laws, Dorel does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
“To re-iterate what we stated earlier this year, our strategic direction for Juvenile is to bring a broader product line to market with greater speed and to decrease complexity and improve cash flow. Our strategic direction is also expected to reduce volatility in the direct costs of manufacturing due to variations in the Chinese currency and commodity prices. Now that we will no longer own facilities in China, we can better focus on co-development opportunities while simplifying the organization and freeing-up resources to concentrate on product innovation and branding across our various markets,” commented Dorel President & CEO, Martin Schwartz.
The sale, which is subject to approval by regulatory authorities in the People’s Republic of China, is expected to close within the next two months. As a result of the sale, Dorel expects to incur a non-cash loss of approximately US$13.5 million in the current fiscal year.
Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating three distinct businesses in juvenile products, bicycles and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi, Quinny and Tiny Love, complemented by regional brands such as Safety 1st, Bébé Confort, Cosco and Infanti. Dorel Sports brands include Cannondale, Schwinn, GT, Mongoose, Caloi and IronHorse. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of US$2.8 billion and employs approximately 8,200 people in facilities located in twenty-five countries worldwide.
Certain statements included in this press release may constitute “forward-looking statements” within the meaning of applicable Canadian securities laws, including, without limitation, statements regarding Dorel Home’s growth strategy following the acquisition of Notio Living. Such forward-looking statements are subject to important risks and uncertainties including, without limitation, the integration of Notio Living by Dorel Home. Accordingly, there can be no assurance as to the benefits that Dorel Industries will derive from the acquisition of Notio Living. Consequently, Dorel Industries cautions readers not to place undue reliance on the forward-looking statements and information contained in this press release. Except as may be required by Canadian securities laws, Dorel Industries does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
“This transaction provides a tremendous opportunity to accelerate Dorel Home’s strategy for growth. The combination of our existing strong portfolio of products and brands with Notio’s distribution capabilities in mainland Europe will significantly augment Dorel Home’s European business where we currently have a successful presence in the United Kingdom,” stated Dorel Home President, Norman Braunstein.
Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating three distinct businesses in juvenile products, bicycles and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi, Quinny and Tiny Love, complemented by regional brands such as Safety 1st, Bébé Confort, Cosco and Infanti. Dorel Sports brands include Cannondale, Schwinn, GT, Mongoose, Caloi and IronHorse. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of US$2.8 billion and employs approximately 8,200 people in facilities located in twenty-five countries worldwide.
Certain statements included in this press release may constitute “forward-looking statements” within the meaning of applicable Canadian securities laws, including, without limitation, statements regarding Dorel Home’s growth strategy following the acquisition of Notio Living. Such forward-looking statements are subject to important risks and uncertainties including, without limitation, the integration of Notio Living by Dorel Home. Accordingly, there can be no assurance as to the benefits that Dorel Industries will derive from the acquisition of Notio Living. Consequently, Dorel Industries cautions readers not to place undue reliance on the forward-looking statements and information contained in this press release. Except as may be required by Canadian securities laws, Dorel Industries does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
“The third quarter was highlighted by the agreement reached to sell Dorel Sports. The transaction has accomplished our major objective of unlocking shareholder value by monetizing Dorel Sports at a time when the demand for bicycles is strong. We will provide further details of the use of net proceeds once the deal closes, which is expected before the end of the first quarter next year. Our focus now is to replicate the success achieved in our sports business at Dorel Home and Dorel Juvenile. To this end, last month we announced initiatives to strengthen Dorel Home with new equipment to facilitate domestic production at our three North American factories, as well as a strategic European acquisition which has a strong ecommerce presence in home furnishings throughout Europe. In the mid-term however, the on-going global supply chain disruptions present challenges to meet the continuing consumer demand for Dorel’s products. This had a negative impact on Dorel Home’s third quarter as well as on Juvenile’s performance, particularly in Europe. These issues will continue in the short-term, but we are actively working on solutions and are confident in our ability to work through them,” stated Dorel President & CEO, Martin Schwartz.
Third quarter revenue from continuing operations, namely Dorel Home and Dorel Juvenile, was US$437.2 million, down 2.4% from US$447.8 million last year. Reported net loss from continuing operations was US$68.0 million or US$2.09 per diluted share, compared to a reported net income of US$9.3 million or US$0.28 per diluted share last year. Adjusted net loss1 was US$66.8 million or US$2.06 per diluted share, compared to an adjusted net income1 of US$9.1 million or US$0.28 per diluted share a year ago.
Included in the results of the quarter is an amount of US$61.7 million, or US$1.90 per diluted share to reflect that the Luxembourg Administrative Court has levied a final judgment of €54.6 million (euros) in tax (US$64.2 million) including interest. As such, Dorel must pay the Luxembourg tax authorities a remaining cash balance of €38.6 million (euros) (US$45.4 million).
As previously announced, the litigation related to taxation on the transfer of certain assets in connection with an internal corporate reorganization that took place in 2015. There is no possibility of further reassessments of Dorel by the Luxembourg authorities with respect to this matter.
Nine-month revenue from continuing operations was US$1.32 billion, an increase of 3.5% compared to US$1.28 billion last year. Reported net loss year-to-date was US$82.2 million or US$2.53 per diluted share, compared to US$51.4 million or US$1.58 per diluted share in 2020. Nine-month adjusted net loss1 was US$70.8 million or US$2.18 per diluted share, compared to US$3.3 million or US$0.10 per diluted share a year ago.
On October 11, 2021, Dorel announced that it had entered into a definitive agreement to sell its Dorel Sports segment. The transaction is expected to close before the end of the first quarter of 2022. As such, the results of Dorel Sports have been classified as discontinued operation for all periods presented. Including this discontinued operation, third quarter revenue was US$740.9 million, down 1.7% from US$753.4 million last year. Reported net loss including discontinued operation was US$37.0 million or US$1.14 per diluted share, compared to a reported net income of US$26.2 million or US$0.80 per diluted share last year. Adjusted net loss1 including discontinued operation was US$99.8 million or US$3.07 per diluted share, compared to an adjusted net income1 of US$28.7 million or US$0.87 per diluted share a year ago.
Including discontinued operation, nine-month revenue was US$2.21 billion, an increase of 7.6% compared to US$2.06 billion last year. Year-to-date reported net loss including discontinued operation was US$12.0 million or US$0.37 per diluted share, compared to US$20.5 million or US$0.63 per diluted share in 2020. Nine-month adjusted net loss1 including discontinued operation was US$64.6 million or US$1.99 per diluted share, compared to an adjusted net income1 of US$30.8 million or US$0.94 per diluted share a year ago.
1 This is a non-GAAP financial measure. Please refer to the “Non-GAAP financial measures” section at the end of this press release.
]]>Dorel expects that the judgment will have an effect of US$1.90 on earnings per share in its financial statements for the third quarter ended September 30, 2021. Dorel will release its results for the third quarter ended September 30, 2021 on November 5, 2021.
As previously announced, the litigation related to taxation on the transfer of certain assets in connection with an internal corporate reorganization that took place in 2015. As such, there is no possibility of further reassessments of Dorel by the Luxembourg authorities with respect to this matter.
“We are extremely disappointed with this judgment. Dorel conducted its affairs in a fully transparent and legal manner, acting with the advice of our tax and legal professionals. As this is a final decision of the Court, we will abide by its decision,” stated Martin Schwartz, Dorel President & CEO.