Dorel Reports Q4 and 2018 Year-End Results
Montreal, Quebec - 3/14/2019
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the fourth quarter and year ended December 30, 2018. Revenue for the fourth quarter was US$683.5 million, up 1.0% from US$677.1 million a year ago. Reported net loss for the quarter was US$443.9 million or US$13.68 per diluted share compared to US$6.1 million or US$0.19 per diluted share a year ago. Adjusted net income was US$10.3 million or US$0.31 per diluted share compared to US$17.3 million or US$0.53 per diluted share in the fourth quarter of 2017. Removing the impact of the 2017 fourth quarter impairment loss on trade accounts receivable from Toys“R”Us U.S. of US$2.8 million after tax, the comparative fourth quarter adjusted net income was US$20.1 million or US$0.62 per diluted share a year ago.
Revenue for 2018 was US$2.62 billion, compared to US$2.58 billion the previous year. Reported net loss was US$444.3 million or US$13.70 per diluted share, compared to a reported net income of US$27.4 million or US$0.84 per diluted share the previous year. Adjusted net income for the year declined to US$39.5 million or US$1.21 per diluted share, compared to US$67.0 million or US$2.05 per diluted share in 2017. Removing the impact of the 2018 first quarter and 2017 fourth quarter impairment losses on trade accounts receivable from Toys“R”Us U.S. of US$9.4 million after tax in the first quarter of 2018 and US$2.8 million after tax in the fourth quarter of 2017 as noted above, the adjusted net income for the year was US$48.9 million or US$1.50 per diluted share, compared to US$69.8 million or US$2.14 per diluted share a year ago.
“Dorel Home has again performed well and continues to benefit from our market-leading innovations in e-commerce. At the same time, we were disappointed by fourth quarter earnings at Dorel Juvenile and Dorel Sports. Both segments were affected by lower than expected industry-wide consumer demand over the holiday season and the on-going changes in the consumer products industry. We are in the process of actively addressing these realities,” stated Dorel President & CEO, Martin Schwartz.
“Despite the challenges facing the retail sector as a whole, we are committed to continuing to take action to build value for Dorel shareholders, including making some tough but necessary decisions. We have been acting on the recognition that the way our industry does business and the expectations and behaviours of customers and consumers are all changing. Dorel is in the process of initiating a restructuring program to evaluate our global footprint and to optimize our Company to meet these new realities. We’re confident that this program will help us be more efficient, improve performance, and maximize long-term value for our shareholders.”