Dorel Reports Second Quarter Results
Montreal, Quebec - 8/4/2016
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2016. Second quarter revenue was US$637.3 million, down 4.8% from US$669.6 million recorded in the same period a year ago. Adjusted net income was US$14.5 million or US$0.45 per diluted share, compared to adjusted net income of US$16.6 million or US$0.51 per diluted share last year. Reported net loss was US$38.6 million or US$1.19 per diluted share, compared to reported net income of US$16.2 million or US$0.50 per diluted share in the second quarter of 2015.
Revenue for the six months was US$1.28 billion, a decrease of 3.9% compared to US$1.34 billion last year. First half adjusted net income increased to US$34.2 million or US$1.05 per diluted share, compared to adjusted net income of US$28.4 million or US$0.87 per diluted share a year ago. Reported net loss for the period was US$21.9 million or US$0.68 per diluted share, compared to net income of US$27.8 million or US$0.86 per diluted share in the first half of 2015.
As detailed in the table below, the second quarter reported net loss includes impairment losses on goodwill and intangible assets, restructuring and other costs and remeasurement of forward purchase agreement liabilities totaling US$63.2 million pre-tax or US$1.64 per diluted share. Excluding these items, pre-tax adjusted income increased by 5.5% for the quarter to US$19.0 million from US$18.1 million last year.
The Company is presenting adjusted financial information as it believes that excluding these items provides a more meaningful comparison of its core business performance between the periods presented. Contained within this press release are reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.
“Dorel Home Furnishings continued its consistent strong performance, further building shareholder value with sustained, strong on-line sales growth. Year-to-date the segment has grown revenues by 7%, with operating profit increasing 66%. Dorel Juvenile’s solid operational performance, better than expected results in China and overall pricing reflecting current foreign exchange levels, resulted in the segment’s adjusted operating profit exceeding our prior guidance for the quarter, and improving by almost 10% in earnings. At Dorel Sports we are making the required changes to ensure profitability and we are encouraged as our new model bicycles are being well accepted in the market,” commented Martin Schwartz, Dorel President & CEO.