Dorel reports strong first quarter 2017 results
Montreal, Quebec - 5/5/2017
Dorel Industries Inc. (TSX: DII.B, DII.A) today released results for the first quarter ended March 31, 2017. Total revenue was US$646.7 million compared to US$645.9 million a year ago. Adjusted net income for the quarter increased 15.4% to US$22.7 million or US$0.69 per diluted share from US$19.7 million, or US$0.60 per diluted share in 2016. Reported net income decreased to US$8.8 million, or US$0.27 per diluted share, compared to US$16.7 million or US$0.51 per diluted share last year.
“Dorel’s adjusted operating profit improved by over 15% versus last year’s first quarter when excluding restructuring and other costs within our income statement. Of our three business segments, Dorel Home was again a standout with revenues increasing 9% and operating profit approaching 10% of revenues. Dorel Sports also improved earnings from prior year, leveraging better margins and its more efficient cost structure. Dorel Juvenile is benefitting from its strategic direction on improving gross margins, but faced challenges at its China facility with a large ramp up on new products and labour shortages around the Chinese New Year which delayed some scheduled launches. In our smaller Juvenile markets, Brazil and Australia performed exceptionally well and are now recognized as industry leaders. At the corporate level, with the support of our lenders, we successfully re-negotiated our credit facilities. This resulted in a first quarter pre-tax expense of US$10.2 million, or US$0.30 per diluted share, related to the extinguishment of existing debt. This change will allow for better management of our long-term capital needs and will decrease our financing costs going-forward. Interest costs are expected to be reduced by approximately US$4.0 million through the balance of 2017 and will continue annually going forward,” stated Martin Schwartz, Dorel President & CEO.
The Company is presenting adjusted financial information, excluding restructuring and other costs, remeasurement of forward purchase agreement liabilities and loss on early extinguishment of long-term debt as it believes this provides a more meaningful comparison of its core business performance between the periods presented. These previously 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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