UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
November 2, 2005
Commission File Number: 0-29712
DOREL INDUSTRIES INC.
________________________________________________________________________________________________
1255 Greene Ave, Suite 300, Westmount, Quebec, Canada H3Z 2A4
_________________________________________________________________________________________________
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F
[ ]
Form 40-F
[ X ]
Indicate by check mark whether the registrant by furnishing the information in this Form is also thereby furnishing
the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
[ ]
No
[ X ]
![[f2nov05002.gif]](https://capedge.com/proxy/6-K/0001134821-05-000140/f2nov05002.gif)
| |
| C O M M U N I Q U É |
JUVENILE Cosco Safety 1st Maxi-Cosi Bébé Confort Baby Relax Babidéal MonBébé Quinny
HOME FURNISHINGS Ameriwood Ridgewood Charleswood Dorel Home Products Cosco Home & Office Dorel Asia Carina SystemBuild Cosco Ability Care Essentials Altra Furniture
RECREATIONAL / LEISURE Pacific Cycle Schwinn GT Mongoose InSTEP
EXCHANGES
CANADA TSX: DII.MV, DII.SV
U.S.A. NASDAQ: DIIB
CONTACT: Maison Brison Rick Leckner (514) 731-0000
Dorel Industries Inc. Jeffrey Schwartz (514) 934-3034 |
DOREL REPORTS THIRD QUARTER RESULTS · Improvements on track in ready-to-assemble furniture division · Nine month revenues up 7.3%; adjusted net earnings grow 14.1% · Adjusted Q3 EPS at US$0.78
Montreal, November 2, 2005 —Dorel Industries Inc. (TSX: DII.MV DII.SV; NASDAQ: DIIB) today released results for the third quarter and nine months ended September 30, 2005. Adjusted net earnings for the quarter, excluding restructuring costs incurred on the previously announced Ameriwood ready-to-assemble (RTA) furniture plant shutdown, were US$25.6 million or US$0.78 per diluted share. Revenue for the third quarter was US$423.3 million, down slightly from US$433.8 million a year ago. Strong revenue growth in the juvenile segment in the 2005 quarter partially offset the lower sales of Sting-Ray bicycles. Unadjusted net earnings were US$19.8 million or US$0.60 per diluted share compared to US$28 million or US$0.85 per diluted share earned in the same quarter last year.
Nine month revenue increased by 7.3% to US$1.3 billion from last year’s revenue of US$1.2 billion for the corresponding period. Adjusted earnings for the nine months grew 14.1% to US$74.6 million or US$2.27 per share compared to US$65.4 million or US$1.99 per share a year ago. On an unadjusted basis, year-to-date earnings were up 5.2% to US$68.8 million or US$2.09 per diluted share compared with US$65.4 million or US$1.99 per diluted share a year ago.
|
Summary of Financial Highlights |
Third quarter ended September 30 |
All figures in thousands of US $, except per share amounts |
| | 2005 | 2004 | Change % |
Revenue | 423,329 | 433,839 | -2.4% |
Adjusted net income | 25,609 | 28,046 | -8.7% |
Per share - Basic | 0.78 | 0.86 | -9.3% |
Per share - Diluted | 0.78 | 0.85 | -8.2% |
Net income | 19,826 | 28,046 | -29.3% |
Per share - Basic | 0.60 | 0.86 | -30.2% |
Per share - Diluted | 0.60 | 0.85 | -29.4% |
Average number of shares outstanding - | | | |
diluted weighted average | 32,923,907 | 32,893,018 | |
Summary of Financial Highlights |
Nine months ended September 30 |
All figures in thousands of US $, except per share amounts |
| | 2005 | 2004 | Change % |
Revenue | 1,330,607 | 1,240,003 | 7.3% |
Adjusted net income | 74,559 | 65,354 | 14.1% |
Per share - Basic | 2.27 | 2.00 | 13.5% |
Per share - Diluted | 2.27 | 1.99 | 14.1% |
Net income | 68,776 | 65,354 | 5.2% |
Per share - Basic | 2.09 | 2.00 | 4.5% |
Per share - Diluted | 2.09 | 1.99 | 5.0% |
Average number of shares outstanding - | | | |
diluted weighted average | 32,946,621 | 32,913,019 | |
Juvenile Segment
Third quarter Juvenile revenue was up 13.9% to US$209.3 million compared to US$183.8 million during the same period a year ago. Earnings from operations increased 59.8% to US$28.4 million from US$17.7 million last year. For the nine months, revenue rose 11.7% to US$645.6 million from US$578.2 million last year, while earnings from operations jumped 60.9% to US$75.7 million from US$47 million a year ago.
Overall, year-to-date organic revenue growth was 9.6% with the remaining increase due to the conversion of Euro and Canadian dollar denominated revenue into US dollars at a higher rate of exchange in 2005. The third quarter revenue increase came from both Europe and North America. North America revenues rebounded from the decline in the second quarter, increasing by 14.8% over the prior year. Year-to-date, revenues in Europe have increased by 15.3%. Year-to-date revenues in North America have increased by 9.1% over last year as new product introductions continue to be well received.
The segment’s year-to-date earnings improvement over last year is attributable to both the European and North American operations. In Europe, earnings increases have been driven principally by gains in Germany and Holland but also at subsidiaries in Spain, Italy and the United Kingdom. In North America, margins have declined due to higher raw material prices and a less profitable product mix. However these declines have been offset by lower product liability costs and a 60% earnings improvement in the Company’s Canadian operations.
Home Furnishings Segment
Home Furnishings revenue was flat at US$143.2 million during the third quarter compared to US$143.3 million a year ago. Adjusted earnings from operations decreased 42.6% to US$8.0 million from US$14.0 million last year. Quarter-over-quarter adjusted earnings from operations grew 29% from the previous quarter’s US$6.2 million. Year-to-date, revenue was up 5.8% to US$420.5 million from US$397.3 million last year. Adjusted earnings from operations for the nine months were down 14.1% to US$25.0 million from US$29.1 million last year.
Revenue increased in all Home Furnishings operations with the exception of Ameriwood’s ready-to-assemble (RTA) furniture operations. Successful new product placements in several categories by Dorel Asia and continued good retail acceptance of newly designed futons were the principal reasons for the increases. Cosco Home & Office sales of folding furniture and other imported home furnishings also increased both in the quarter and year-to-date by 13.6% and 14.5% respectively.
As announced on September 19, 2005 the Company will be consolidating its RTA furniture facilities. Production will cease at its Wright City, Missouri factory no later than December 31st, 2005, as part of the overall plan to improve the earnings of the Company’s Home Furnishings segment. Of the expected pre-tax restructuring costs of approximately US$11.3 million, the Company recorded US$8.9 million in the third quarter. Of this amount US$6.4 million appears as a line item on the face of the Company’s income statement and another US$2.5 million is included in cost of sales. The after-tax impact in the quarter was US$5.8 million, or US$0.18 per diluted share. It is expected that the fourth quarter will include another US$1.1 million of the restructuring costs with the remaining US$1.3 million to be recognized in fiscal 2006. A table detailing the impact of the restructuring costs is included on page 4 of this press release.
RTA furniture update
Dorel is taking aggressive action to improve the RTA furniture division’s lower sales volumes and factory inefficiencies and positive results will start to show in early 2006. An all encompassing plan is addressing product development, customer service, inventory reduction and production. The process is well underway:
·
Third quarter inventory levels dropped 17%, while customer service has improved substantially.
·
An expanded marketing strategy is in place, realigning marketing into four distinct groups, each focused on developing products unique to their categories. A record number of new products will have been launched during the second half of this year.
·
The three remaining RTA furniture plants are ready to accommodate the integration of the Wright City facility once it closes. Headcount reductions have taken place beyond the planned Wright City closure and there are improvements in efficiency and scrap levels. Annual pre-tax savings from the closure of Wright City alone are expected to exceed US$5 million as of next year.
·
A greatly enhanced new product development capability process has been established allowing for exceptional speed to market, from conception to delivery.
·
New programs have been, and will continue to be established at several mass merchant customers and recent and promising gains by Ameriwood beyond the mass merchant channel are resulting in growth of the division’s customer base.
“These measures and others will have a positive impact on the Company by reducing our costs and by considerably improving operating efficiencies. Combined with Ameriwood’s new management’s focus on marketing and intensive product development, this augurs well for 2006 and beyond. We firmly believe that we will be a thriving enterprise in a consolidating industry”, commented Martin Schwartz, President and CEO.
Recreational/Leisure Segment
Third quarter Recreational/Leisure revenue decreased 33.7% to US$70.8 million compared to last year’s US$106.8 million. Earnings from operations dropped 57.4% to US$6.3 million from US$14.7 million. For the nine months, revenue was unchanged from last year at US$264.5 million. Nine month earnings from operations were down 16% to US$28.4 million from US$33.8 million last year. Included in the 2005 year-to-date revenue is $12.3 million from an extra month’s sales. Sales increases occurred in several product categories and brands. However, Sting-Ray sales in the first nine months of 2004 far exceeded those in 2005, more than offsetting any increases.
Reconciliation of net earnings to adjusted net earnings
The Company is including adjusted net earnings, a non-GAAP financial measure, as it believes this permits more meaningful comparisons of its core business performance between the periods presented. A reconciliation of adjusted net earnings to GAAP net earnings is set forth on the next page:
DOREL INDUSTRIES INC. |
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) |
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS |
| | | | | | | | | |
| | | Third quarter ended September 30, 2005 | | Nine months ended September 30, 2005 |
| | | As reported | Charges | Excluding Charges | | As reported | Charges | Excluding Charges |
| | | | | | | | | |
TOTAL REVENUE | | $ 423,329 | $ - | $ 423,329 | | $ 1,330,607 | $ - | $ 1,330,607 |
| | | | | | | | | |
EXPENSES | | | | | | | | |
Cost of sales | | 327,335 | (2,493) | 324,842 | | 1,028,236 | (2,493) | 1,025,743 |
Operating | | 47,624 | - | 47,624 | | 155,416 | - | 155,416 |
Depreciation and amortization | 10,308 | - | 10,308 | | 29,758 | - | 29,758 |
Research and development costs | 1,560 | - | 1,560 | | 6,212 | - | 6,212 |
Restructuring costs | | 6,432 | (6,432) | - | | 6,432 | (6,432) | - |
Interest on long-term debt | | 7,426 | - | 7,426 | | 22,172 | - | 22,172 |
Other interest | | 478 | - | 478 | | 1,072 | - | 1,072 |
| | | 401,163 | (8,925) | 392,238 | | 1,249,298 | (8,925) | 1,240,373 |
| | | | | | | | | |
Income before income taxes | | 22,166 | 8,925 | 31,091 | | 81,309 | 8,925 | 90,234 |
| | | | | | | | | |
Income taxes | | 2,340 | 3,142 | 5,482 | | 12,533 | 3,142 | 15,675 |
| | | | | | | | | |
NET INCOME | | $ 19,826 | $ 5,783 | $ 25,609 | | $ 68,776 | $ 5,783 | $ 74,559 |
| | | | | | | | | |
EARNINGS PER SHARE | | | | | | | | |
Basic | | $ 0.60 | $ 0.18 | $ 0.78 | | $ 2.09 | $ 0.18 | $ 2.27 |
Diluted | | $ 0.60 | $ 0.18 | $ 0.78 | | $ 2.09 | $ 0.18 | $ 2.27 |
| | | | | | | | | |
SHARES OUTSTANDING | | | | | | | | |
Basic - weighted average | | 32,858,942 | 32,858,942 | 32,858,942 | | 32,829,357 | 32,829,357 | 32,829,357 |
Diluted - weighted average | | 32,923,907 | 32,923,907 | 32,923,907 | | 32,946,621 | 32,946,621 | 32,946,621 |
Commentary
Mr. Schwartz said that progress is being made in a number of areas in addition to the RTA furniture division. “Operating costs are running lower than last year principally due to reduced product liability costs as well as other cost containment measures. We are pleased with the third quarter US$23 million reduction in overall inventories. Work will continue to bring inventory levels down,” stated Mr. Schwartz.
“It will still take the balance of this year to correct the RTA furniture issues; as well, last year’s unprecedented fourth quarter sales of Sting-Ray bicycles will not be repeated this year. Despite our strong nine month performance, full year 2005 after-tax adjusted earnings will likely be lower than those recorded in 2004, although fiscal 2005 adjusted pre-tax earnings should be above last year. Continued success in Europe is expected to contribute to the Juvenile Segment’s overall progress as will new listings in North America and several new product introductions,” concluded Mr. Schwartz.
CONFERENCE CALL
Dorel Industries Inc. will hold a conference call to discuss these results today at 1:30 P.M. Eastern Time. Interested parties can join the call by dialling (514) 807-8791 (Montreal or overseas) or (866) 250-4909 (elsewhere in North America). The conference call can also be accessed via live webcast atwww.dorel.com ,www.newswire.ca orwww.q1234.com. If you are unable to call in at this time, you may access a tape recording of the meeting by calling 1-877-289-8525 and entering the passcode 21159817# on your phone. This tape recording will be available on Wednesday, November 2nd, 2005 as of 3:30 P.M. until 11:59 P.M. on Wednesday, November 9th, 2005.
Complete financial statements will be available on the Company's website,www.dorel.com, and will be available through the SEDAR and EDGAR websites.
Profile
Dorel Industries (TSX: DII.SV, DII.MV; NASDAQ: DIIB) is a global consumer products company engaged in the designing, manufacturing and marketing of a diverse portfolio of powerful consumer brands, sold through its Juvenile, Home Furnishings, and Recreational/Leisure segments. Headquartered in Montreal, Dorel employs approximately 5,000 people in fourteen countries. Dorel also has offices in Shanghai and Shenzhen, China which oversee the sourcing, engineering and logistics of all Asian operations. 2004 sales were US$1.7 billion.
US operations include Dorel Juvenile Group USA, which markets the Cosco and Safety 1st brands as well as Eddie Bauer and Disney Baby licensed products; Ameriwood Industries, which markets ready-to-assemble products under the Ameriwood, Carina, SystemBuild, Altra Furniture and Ridgewood/Charleswood brands as well as California Closets and Trading Spaces licenses; Cosco Home & Office, which markets home/office products under the Cosco and Cosco Ability Essentials brands and Samsonite license; and Pacific Cycle, which markets the Schwinn, Mongoose, GT, InSTEP and Roadmaster brands. In Canada, Dorel operates Dorel Distribution Canada, Ridgewood Industries and Dorel Home Products. Dorel Europe markets juvenile products throughout Europe, under the Bébé Confort, Maxi-Cosi, Quinny, Safety 1st, Babidéal, Mon Bébé and Baby Relax brands. Dorel Asia sources and imports home furnishings products.
Caution Concerning Forward-Looking Statements
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of Dorel Industries Inc. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. The business of the Company and these forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ from expected results. Important factors which could cause such differences may include, without excluding other considerations, increases in raw material costs, particularly for key input factors such as particle board and resins; increases in ocean freight container costs; failure of new products to meet demand expectations; changes to the Company’s effective income tax rate as a result of changes in the anticipated geographic mix of revenues; the impact of price p ressures exerted by competitors, and settlements for product liability cases which exceed the Company’s insurance coverage limits. A description of the above mentioned items and certain additional risk factors are discussed in the Company’s Annual MD&A and Annual Information Form, filed with the securities regulatory authorities in Canada and the U.S. The risk factors outlined in the previously mentioned documents are specifically incorporated herein by reference. The Company’s business, financial condition, or operating results could be materially adversely affected if any of these risks and uncertainties were to materialize. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
—30 —
DOREL INDUSTRIES INC.
CONSOLIDATED BALANCE SHEET
ALL FIGURES IN THOUSANDS OF US $
| | as at September 30, 2005 (unaudited) | as at December 30, 2004 (audited) |
ASSETS | | |
CURRENT ASSETS | | |
Cash and cash equivalents | $ 14,251 | $ 11,288 |
Accounts receivable | 267,538 | 286,529 |
Inventories | 301,239 | 292,991 |
Prepaid expenses | 8,765 | 12,756 |
Funds held by ceding insurer | 3,627 | 7,920 |
Future income taxes | 26,404 | 24,027 |
| | 621,824 | 635,511 |
| | | |
CAPITAL ASSETS | 149,740 | 163,707 |
GOODWILL | 484,932 | 512,546 |
DEFERRED CHARGES | 17,202 | 20,983 |
INTANGIBLE ASSETS | 255,644 | 262,968 |
FUTURE INCOME TAXES | 10,929 | 10,401 |
OTHER ASSETS | 9,887 | 10,786 |
ASSETS HELD FOR SALE | 1,297 | - |
| | $ 1,551,455 | $ 1,616,902 |
| | | |
LIABILITIES | | |
CURRENT LIABILITIES | | |
Bank indebtedness | $ 494 | $ 1,915 |
Accounts payable and accrued liabilities | 281,372 | 354,738 |
Income taxes payable | 6,135 | 5,629 |
Balance of sale payable | 5,611 | 7,773 |
Future income taxes | 1,146 | 1,379 |
Current portion of long-term debt | 7,666 | 7,686 |
| | $ 302,424 | $ 379,120 |
| | | |
| | | |
LONG-TERM DEBT | 495,398 | 505,816 |
PENSION & POST-RETIREMENT BENEFIT OBLIGATIONS | 20,262 | 20,006 |
BALANCE OF SALE PAYABLE | - | 5,278 |
FUTURE INCOME TAXES | 71,698 | 75,719 |
OTHER LONG-TERM LIABILITIES | 4,740 | 2,684 |
| | | |
SHAREHOLDERS’ EQUITY | | |
CAPITAL STOCK | 162,459 | 160,876 |
CONTRIBUTED SURPLUS | 3,250 | 1,081 |
RETAINED EARNINGS | 455,609 | 386,833 |
CUMULATIVE TRANSLATION ADJUSTMENT | 35,615 | 79,489 |
| | 656,933 | 628,279 |
| | $ 1,551,455 | $ 1,616,902 |
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENT OF INCOME
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
| | Third quarter ended | Nine months ended |
| | September 30, 2005 (unaudited) | September 30, 2004 (unaudited) | September 30, 2005 (unaudited) | September 30, 2004 (unaudited) |
| | | | | |
Sales | $ 418,835 | $ 428,422 | $ 1,314,640 | $ 1,226,460 |
| | | | | |
Licensing and commission income | 4,494 | 5,417 | 15,967 | 13,543 |
| | | | | |
TOTAL REVENUE | 423,329 | 433,839 | 1,330,607 | 1,240,003 |
| | | | | |
EXPENSES | | | | |
Cost of sales | 327,335 | 331,479 | 1,028,236 | 951,632 |
Operating | 47,624 | 51,751 | 155,416 | 159,593 |
Depreciation and amortization | 10,308 | 8,568 | 29,758 | 26,844 |
Research and development costs | 1,560 | 1,015 | 6,212 | 4,691 |
Restructuring costs | 6,432 | - | 6,432 | - |
Interest on long-term debt | 7,426 | 7,472 | 22,172 | 21,217 |
Other interest | 478 | 2,473 | 1,072 | 2,987 |
| | 401,163 | 402,758 | 1,249,298 | 1,166,964 |
| | | | | |
Income before income taxes | 22,166 | 31,081 | 81,309 | 73,039 |
| | | | | |
Income taxes | 2,340 | 3,035 | 12,533 | 7,685 |
| | | | | |
NET INCOME | $ 19,826 | $ 28,046 | $ 68,776 | $ 65,354 |
| | | | | |
EARNINGS PER SHARE: | | | | |
Basic | $ 0.60 | $ 0.86 | $ 2.09 | $ 2.00 |
Diluted | $ 0.60 | $ 0.85 | $ 2.09 | $ 1.99 |
| | | | | |
SHARES OUTSTANDING | | | | |
Basic – weighted average | 32,858,942 | 32,770,265 | 32,829,357 | 32,709,782 |
Diluted – weighted average | 32,923,907 | 32,893,018 | 32,946,621 | 32,913,019 |
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
| | Third quarter ended | Nine months ended |
| | September 30, 2005 (unaudited) | September 30, 2004 (unaudited) | September 30, 2005 (unaudited) | September 30, 2004 (unaudited) |
| | | | | |
CASH PROVIDED BY (USED IN): | | | | |
OPERATING ACTIVITIES | | | | |
Net income | $ 19,826 | $ 28,046 | $ 68,776 | $ 65,354 |
Adjustments for: | | | | |
Depreciation and amortization | 10,308 | 8,568 | 29,758 | 26,844 |
Future income taxes | (3,517) | (754) | (2,066) | (2,444) |
Funds held by ceding insurer | 4,382 | (34) | 4,293 | (2,952) |
Stock based compensation | 748 | - | 2,169 | - |
Restructuring costs | 6,432 | - | 6,432 | - |
Loss on disposal of capital assets | 194 | 81 | 361 | 410 |
| | 38,373 | 35,907 | 109,723 | 87,212 |
| | | | | |
Changes in non-cash working capital: | | | | |
Accounts receivable | (4,712) | (46,683) | 9,248 | (24,069) |
Inventories | 22,490 | (23,718) | (15,641) | (34,275) |
Prepaid expenses and other assets | 1,267 | 562 | 4,408 | 2,303 |
Accounts payable and accrued liabilities | (51,590) | 18,399 | (61,391) | 46,519 |
Income taxes payable | 2,986 | 5,657 | (44) | 6,331 |
| | (29,559) | (45,783) | (63,420) | (3,191) |
| | | | | |
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 8,814 | (9,876) | 46,303 | 84,021 |
| | | | | |
FINANCING ACTIVITIES | | | | |
Bank indebtedness | (3,518) | (1,228) | (1,295) | 32 |
Long-term debt | (369) | 12,333 | (10,334) | 250,079 |
Issuance of capital stock | - | 515 | 1,417 | 3,694 |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (3,887) | 11,620 | (10,222) | 253,805 |
| | | | | |
INVESTING ACTIVITIES | | | | |
Acquisition of subsidiary companies | - | (69) | (7,440) | (295,859) |
Additions to capital assets – net | (4,771) | (8,238) | (16,500) | (24,928) |
Deferred charges | (984) | (2,850) | (5,688) | (9,727) |
Intangible assets | (1,164) | (190) | (4,023) | (2,790) |
CASH USED IN INVESTING ACTIVITIES | (6,919) | (11,347) | (33,651) | (333,304) |
| | | | | |
Effect of exchange rate change on cash | 355 | 328 | 533 | (599) |
| | | | | |
NET INCREASE IN CASH | (1,637) | (9,275) | 2,963 | 3,923 |
| | | | | |
Cash and cash equivalents, beginning of period | 15,888 | 27,075 | 11,288 | 13,877 |
| | | | | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 14,251 | $ 17,800 | $ 14,251 | $ 17,800 |
DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
ALL FIGURES IN THOUSANDS OF US $
| | Nine months ended |
| | September 30, 2005 (unaudited) | September 30, 2004 (unaudited) |
| | | |
BALANCE, BEGINNING OF PERIOD AS REPORTED | $ 386,833 | $ 287,583 |
| | | |
Restatement | - | (826) |
| | | |
BALANCE, BEGINNING OF PERIOD AS RESTATED | 386,833 | 286,757 |
| | | |
Net income | 68,776 | 65,354 |
| | | |
BALANCE, END OF PERIOD | $ 455,609 | $ 352,111 |
DOREL INDUSTRIES INC.
SEGMENTED INFORMATION
ALL FIGURES IN THOUSANDS OF US $
Industry Segments
| | Total | Juvenile | Home Furnishings | Recreational/Leisure |
| | | | For the nine month period ended September 30, |
| | 2005 | 2004 | 2005 | 2004 | 2005 | 2004 | 2005 | 2004 |
| | | | | | | | | |
Total Revenues | $ 1,330,607 | $ 1,240,003 | $ 645,640 | $ 578,214 | $ 420,500 | $ 397,279 | $ 264,467 | $ 264,510 |
Cost of sales | 1,028,236 | 951,632 | 455,777 | 408,266 | 364,749 | 336,749 | 207,710 | 206,617 |
Operating expenses | 141,048 | 148,101 | 87,331 | 99,594 | 25,999 | 24,757 | 27,718 | 23,750 |
Depreciation and amortization | 28,484 | 25,632 | 22,437 | 19,876 | 5,396 | 5,394 | 651 | 362 |
Research and development costs | 6,212 | 4,691 | 4,389 | 3,441 | 1,823 | 1,250 | - | - |
Restructuring costs | 6,432 | - | - | - | 6,432 | - | - | - |
Earnings from Operations | 120,195 | 109,947 | $ 75,706 | $ 47,037 | $ 16,101 | $ 29,129 | $ 28,388 | $ 33,781 |
Interest | 23,244 | 24,204 | | | | | | |
Corporate expenses | 15,642 | 12,704 | | | | | | |
Income taxes | 12,533 | 7,685 | | | | | | |
| | | | | | | | | |
Net income | $ 68,776 | $ 65,354 | | | | | | |
Industry Segments
| | Total | Juvenile | Home Furnishings | Recreational/Leisure |
| | | | For the third quarter ended September 30, |
| | 2005 | 2004 | 2005 | 2004 | 2005 | 2004 | 2005 | 2004 |
| | | | | | | | | |
Total Revenues | $ 423,329 | $ 433,839 | $ 209,331 | $ 183,756 | $ 143,207 | $ 143,312 | $ 70,791 | $ 106,771 |
Cost of sales | 327,335 | 331,479 | 144,005 | 129,275 | 127,119 | 119,375 | 56,211 | 82,829 |
Operating expenses | 44,379 | 46,843 | 28,128 | 29,884 | 8,256 | 7,834 | 7,995 | 9,125 |
Depreciation and amortization | 9,907 | 8,096 | 7,855 | 6,209 | 1,718 | 1,754 | 334 | 133 |
Research and development costs | 1,559 | 1,015 | 982 | 647 | 577 | 368 | - | - |
Restructuring costs | 6,432 | - | - | - | 6,432 | - | - | - |
Earnings from Operations | 33,717 | 46,406 | $ 28,361 | $ 17,741 | $ (895) | $ 13,981 | $ 6,251 | $ 14,684 |
Interest | 7,904 | 9,945 | | | | | | |
Corporate expenses | 3,647 | 5,380 | | | | | | |
Income taxes | 2,340 | 3,035 | | | | | | |
| | | | | | | | | |
Net income | $ 19,826 | $ 28,046 | | | | | | |
Geographic Segments - Origin
| | Nine months ended September 30, | Third quarter ended September 30, |
| | 2005 | 2004 | 2005 | 2004 |
| | | | | |
Canada | $ 148,317 | $ 132,406 | $ 51,442 | $ 42,915 |
United States | 814,278 | 812,866 | 256,664 | 292,014 |
Europe | 272,995 | 236,776 | 82,626 | 73,357 |
Other foreign countries | 95,017 | 57,955 | 32,597 | 25,553 |
Total | $ 1,330,607 | $ 1,240,003 | $ 423,329 | $ 433,839 |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
DOREL INDUSTRIES INC.
By: /s/ Martin Schwartz_____________
Martin Schwartz
Title: President and Chief Executive Officer
By: /s/ Jeffrey Schwartz_____________
Jeffrey Schwartz
Title: Executive Vice-President,
Chief Financial Officer
November 2, 2005
