Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the fourth quarter and year ended December 30, 2020. Revenue for the fourth quarter was US$704.4 million, up 7.8% from US$653.4 million a year ago. Reported net loss for the quarter was US$22.9 million or US$0.70 per diluted share compared to US$0.6 million or US$0.02 per diluted share a year ago. Adjusted net loss¹ was US$18.0 million or US$0.55 per diluted share compared to an adjusted net income[1] of US$2.3 million or US$0.07 per diluted share in the fourth quarter a year ago. The net loss for the quarter was impacted by the reversal of an accrued tax benefit. 

Revenue for the full year was US$2.76 billion, up 4.9% from US$2.63 billion the previous year. Reported net loss was US$43.4 million or US$1.34 per diluted share, compared to US$10.5 million or US$0.32 per diluted share the previous year. Adjusted net income¹ for the year was US$12.8 million or US$0.38 per diluted share, compared to US$16.8 million or US$0.51 per diluted share last year. 

“Our segments’ performance for the quarter was in line with our prior guidance, with overall adjusted operating profit similar to prior year. Strong demand for Dorel Sports product offering continued throughout the quarter with supply chain constraints being a significant limitation on our performance. Similarly, in Home a lack of product availability meant lost sales opportunities, particularly in e-commerce. Dorel Juvenile continued its improvement from the first half; however, the second wave of COVID-19 in most markets slowed sales and earnings momentum, particularly in Europe. Results for the fourth quarter include US$7.5 million of costs incurred in connection with the Company’s privatization process that was terminated by mutual agreement of Dorel and the buyer group in February. Its rejection by a majority of our independent shareholders sent a clear message of their belief in the long-term potential for the Company as a public entity. As a management team, we are committed to rewarding our shareholders for their confidence in Dorel,” commented Dorel President & CEO, Martin Schwartz.