Dorel Reports Q4 and 2019 Year-End Results
Montreal, Quebec - 3/11/2020
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for its fourth quarter and year ended December 30, 2019. Revenue for the fourth quarter was US$653.4 million, down 4.4% from US$683.5 million a year ago. Reported net loss for the quarter was US$0.6 million or US$0.02 per diluted share compared to US$443.9 million or US$13.68 per diluted share a year ago. Adjusted net income1 was US$2.3 million or US$0.07 per diluted share compared to US$10.3 million or US$0.31 per diluted share in the fourth quarter of 2018.
Revenue for the full year was flat at US$2.63 billion, compared to US$2.62 billion the previous year. Reported net loss was US$10.5 million or US$0.32 per diluted share, compared to US$444.3 million or US$13.70 per diluted share the previous year. Adjusted net income for the year was US$16.8 million or US$0.51 per diluted share, compared to US$39.5 million or US$1.21 per diluted share last year.
“Our teams have done an excellent job bringing inventory down to more traditional levels, with a reduction of US$80 million since the third quarter. Dorel Sports revenue grew for the third consecutive quarter as our new models, particularly Cannondale, are selling well. Dorel Juvenile Europe’s challenges overshadowed progress in other geographies. In the first two months of 2020 we are seeing signs of a turnaround in Europe. Issues at Dorel Home, primarily tariff-related, are being resolved and the segment is focused on growing its top line as it prepares to enter new categories. E-commerce sales continued their upward trend, representing 70% of total fourth quarter segment gross sales.
“Our China based suppliers delayed re-opening following the Chinese New Year due to the Coronavirus, with production delayed by two weeks in most cases. This temporary lack of manpower created several weeks of supply chain disruptions. Most factories in the country are now back in operation and are shipping, but not yet at normal levels. Operations at our main Juvenile factory in China are improving daily. We are now at 95% production capacity. Although production was slower than normal, we have not seen any significant impact on consumer spending at retail for Dorel products during the first two months of 2020 and our three segments continue to experience increased on-line shopping. Needless to say, we are closely monitoring the situation,” stated Dorel President & CEO, Martin Schwartz.