Dorel Reports Fourth Quarter and 2021 Year-End ResultsMontreal, Quebec -
- Fourth quarter earnings hurt by lack of supply and higher costs
- Inflation and supply chain issues impair short-term earnings visibility
- Management focusing on long-term strategy and value creation
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.