Dorel reports third quarter results
Montreal, Quebec - 11/5/2015
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the third quarter and nine months ended September 30, 2015. Revenue for the quarter was US$679.3 million compared to US$673.0 million a year ago. Adjusted net income was US$15.5 million or US$0.48 per diluted share versus adjusted net income of US$23.8 million or US$0.73 per diluted share last year. Reported net loss for the period was US$8.8 million or US$0.27 per diluted share compared to a net income of US$19.5 million or US$0.60 per diluted share in 2014. The net negative impact of foreign exchange on the third quarter 2015 operating profit was approximately US$12 million of which about US$14 million was in the Juvenile and Sports segments offset by a net positive impact of US$2 million in corporate expenses. After tax, this net negative impact on the diluted EPS for the third quarter represented US$0.28.
Total revenue for the nine months was US$2.01 billion compared to US$1.98 billion a year ago. Adjusted net income was US$43.9 million or US$1.35 per diluted share compared to adjusted net income of US$73.0 million or US$2.25 per diluted share last year. Reported net income year-to-date was US$19.1 million or US$0.59 per diluted share compared to US$59.5 million or US$1.83 per diluted share. The appreciation of the US dollar had a net negative impact of US$39 million on the operating profit of the Juvenile and Sports segments and a US$6 million net positive effect at the corporate level for a consolidated net negative impact of US$33 million or US$0.81 per diluted share.
The reported net (loss) income for the quarter and the nine months ended September 30, 2015 include impairment losses on goodwill and customer relationships related to Caloi in Brazil, restructuring and other costs. As such, the Company is presenting adjusted financial information in this press release as it believes that excluding these items is a more meaningful comparison of its core business performance between the periods presented. Please refer to the Non-GAAP financial measures section for the reconciliation to the most directly comparable financial measures calculated in accordance with GAAP.