Dorel Reports First Quarter 2019 Results
Montreal, Quebec - 5/10/2019
Dorel Industries Inc. (TSX: DII.B, DII.A) today released results for the first quarter ended March 31, 2019. Revenue was US$625.6 million compared to US$642.3 million a year ago. Reported net loss was US$8.3 million, or US$0.26 per diluted share, compared to net income of US$4.7 million or US$0.14 per diluted share last year. The first quarter of 2019 includes US$14.4 million of pre-tax restructuring charges, US$14.1 million after tax within Dorel Juvenile, compared to US$1.1 million, US$0.8 million after tax in the prior year.
Excluding these amounts, adjusted net income, was US$5.8 million or US$0.18 per diluted share compared to US$5.5 million or US$0.17 per diluted share for the first quarter of 2018. The prior year also included an impairment loss on trade accounts receivable of US$12.5 million, or US$0.29 per diluted share related to the liquidation of Toys“R”Us in the U.S. Without this impact, adjusted net income for the first quarter of 2018 was US$14.9 million or US$0.46 per diluted share.
“Despite not exceeding prior year earnings, we are encouraged by the progress being made across our business segments. The wide-ranging actions we are taking to respond to the changing needs of our consumers and to re-build shareholder value are gaining traction. Dorel Home continued its revenue growth trajectory and Dorel Juvenile rebounded strongly from its poor performance over the past three quarters. Dorel Sports’ Cycling Sports Group (CSG) businesses had a very good quarter in all of its markets, with only Pacific Cycle showing declines at mass, a trend that has already reversed in April,” commented Dorel President & CEO, Martin Schwartz.
“We are actively working on the restructuring program announced in March to optimize Dorel as a more focused global consumer products company. Decisive actions are either underway or under consideration at Dorel Juvenile which is restructuring operations in several markets in order to re-assert its position as the world’s leading juvenile products company. Plans include simplifying and streamlining the organization and further building competencies in an omni-channel world where consumers are increasingly digitally engaged. We are confident the measures this year and next will bring the desired results.”