Dorel Reports First Quarter 2020 ResultsMontreal, Quebec -
Dorel Industries Inc. (TSX: DII.B, DII.A) today released results for the first quarter ended March 31, 2020. Revenue was US$580.8 million, down 7.2% compared to US$625.6 million a year ago. Reported net loss was US$57.8 million, or US$1.78 per diluted share, compared to US$8.3 million or US$0.26 per diluted share last year. Adjusted net loss1 was US$13.6 million or US$0.42 per diluted share compared to an adjusted net income1 of US$5.8 million or US$0.18 per diluted share.
“In mid-March the Coronavirus pandemic literally brought a halt to the global economy as lockdown orders forced an unprecedented situation. Our priority is to ensure the health and well-being of our employees worldwide. Additional safety measures have been implemented in our facilities and where possible, employees began working from home. While like most companies, Dorel’s revenues have been affected, many of our products have remained popular with consumers purchasing them in stores where open, and increasingly online. We feel we are in a good position in the short- term and going forward as the economy recovers. Both Dorel Home and Dorel Sports have been experiencing strong demand since the virus hit. Dorel Juvenile was negatively impacted, primarily due to retail store closures and with few people driving, sales of car seats are down materially. However, we feel these purchases have been deferred, not cancelled, and in the past two weeks, we have seen improved sales at retail. Another positive is that our focus on liquidity and inventory reduction resulted in a US$64.8 million reduction in inventory in the quarter, with a further US$68 million reduction in April. Furthermore, divisions are taking a microscope to all expenses to maximize cash flow,” commented Dorel President & CEO, Martin Schwartz.