Dorel Reports Second Quarter ResultsMontreal, Quebec -
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2018. Second quarter revenue was US$623.2 million, up 2.0% from the same period a year ago. Reported net loss was US$14.8 million or US$0.46 per diluted share, compared to reported net income of US$11.4 million or US$0.35 per diluted share in the second quarter of 2017. Adjusted net income increased 1.7% to US$12.7 million or US$0.39 per diluted share, compared to US$12.4 million or US$0.38 per diluted share last year.
Revenue for the six months was US$1.27 billion, an increase of 0.6% compared to US$1.26 billion last year. Reported net loss was US$10.0 million or US$0.31 per diluted share, compared to reported net income of US$20.3 million or US$0.62 per diluted share a year ago. Removing the impact of the first quarter impairment loss on trade accounts receivable from Toys“R”Us of US$9.4 million after tax, first half adjusted net income decreased to US$27.6 million or US$0.85 per diluted share, compared to US$35.1 million or US$1.08 per diluted share a year ago.
“Across our segments, Dorel Sports rebounded strongly after a tough start to the year, posting solid adjusted results. Dorel Home continued to grow on-line sales and maintained its strong earnings performance. Dorel Juvenile had a disappointing quarter, principally due to a difficult system implementation in Europe that caused us to miss sales. This and the fact that our Chilean business is in the middle of its turnaround plan masked our outstanding performance in the U.S. We overcame the impact of the Toys“R”Us bankruptcy earlier in the year as Dorel Juvenile U.S. had its best year-over-year revenue growth quarter in 9 years. We are encouraged by the markets’ reaction to our new bicycle and juvenile products. Sell-through has been good over the past few months and more new products are set to launch through the second half, providing optimism for the balance of the year.
“In a move to strengthen our Board, last month Norm Steinberg was appointed as a new Director. He has a strong track record as a seasoned professional with extensive experience in M&A and in corporate governance, guiding public companies. This knowledge coupled with a proven strategic vision, leadership and legal acumen will complement our existing Board members and will serve all extremely well. We are delighted to have Norm with us,” stated Dorel President & CEO, Martin Schwartz.
The Company is presenting adjusted financial information, excluding impairment loss on intangible assets, restructuring and other costs, remeasurement of forward purchase agreement liabilities and loss on early extinguishment of long-term debt, as the Company believes this provides a more meaningful comparison of its core business performance between the periods presented. These announced items are detailed in the attached tables of this press release. Contained within this press release are reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.
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