Dorel Industries (DIIB) 6-K Form 6-K - First Quarter 2006 Results

CONSOLIDATED BALANCE SHEET

ALL FIGURES IN THOUSANDS OF US $

	As at March 31, 2006		As at December 30, 2005
		(unaudited)	(audited)
ASSETS
CURRENT ASSETS
Cash		$ 19,183		$ 12,345
Accounts receivable		298,062		287,225
Income taxes receivable		8,679		14,817
Inventories		280,385		279,265
Prepaid expenses		11,707		10,288
Funds held by ceding insurer		3,672		3,647
Future income taxes		26,057		26,060
		647,745		633,647
PROPERTY, PLANT AND EQUIPMENT		143,232		144,248
DEFERRED CHARGES		15,030		15,561
INTANGIBLE ASSETS		254,572		253,245
GOODWILL		485,483		481,518
OTHER ASSETS		10,508		10,750
ASSETS HELD FOR SALE		3,699		3,699
		$ 1,560,269		$ 1,542,668
LIABILITIES
CURRENT LIABILITIES
Bank indebtedness		$ 3,133		$ 4,828
Accounts payable and accrued liabilities		295,055		305,922
Income taxes payable		11,020		18,483
Balance of sale payable		–		4,946
Current portion of long-term debt		7,940		8,025
		317,148		342,204
LONG-TERM DEBT		448,586		439,634
BALANCE OF SALE PAYABLE		665		665
PENSION & POST-RETIREMENT BENEFIT OBLIGATIONS		19,544		19,081
FUTURE INCOME TAXES		65,193		62,986
OTHER LONG-TERM LIABILITIES		4,464		5,656
SHAREHOLDERS’ EQUITY
CAPITAL STOCK		162,525		162,503
CONTRIBUTED SURPLUS		4,256		3,639
RETAINED EARNINGS		502,336		478,155
CUMULATIVE TRANSLATION ADJUSTMENT		35,552		28,145
		704,669		672,442
		$ 1,560,269		$ 1,542,668

CONSOLIDATED STATEMENT OF INCOME

ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS

	Three Months Ended
	March 31, 2006	March 31, 2005
	(unaudited)	(unaudited)
Sales	$  444,891	$ 465,624
Licensing and commission income	6,133	6,279
TOTAL REVENUE	451,024	471,903
EXPENSES
Cost of sales	349,916	362,734
Selling, general and administrative expenses	52,450	55,749
Depreciation and amortization	8,926	9,271
Research and development costs	2,281	2,190
Interest on long-term debt	7,774	7,920
Other interest	143	157
	421,490	438,021
Income before income taxes	29,534	33,882
Income taxes	5,353	6,677
NET INCOME	$ 24,181	$ 27,205
EARNINGS PER SHARE
Basic	$ 0.74	$ 0.83
Diluted	$ 0.74	$ 0.83
SHARES OUTSTANDING
Basic – weighted average	32,859,217	32,802,978
Diluted – weighted average	32,859,694	32,959,283

CONSOLIDATED STATEMENT OF RETAINED EARNINGS

ALL FIGURES IN THOUSANDS OF US $

	Three Months Ended
	March 31, 2006		March 31, 2005
		(unaudited)		(unaudited)
BALANCE, BEGINNING OF PERIOD		$ 478,155		$ 386,833
Net income		24,181		27,205
BALANCE, END OF PERIOD		$ 502,336		$ 414,038

CONSOLIDATED STATEMENT OF CASH FLOWS

ALL FIGURES IN THOUSANDS OF US $

	Three Months Ended
	March 31, 2006	March 31, 2005
	(unaudited)	(unaudited)
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net income	$ 24,181	$ 27,205
Items not involving cash:
Depreciation and amortization	8,926	9,271
Amortization of deferred financing costs	398	402
Future income taxes	1,352	1,674
Stock based compensation	617	701
Pension and post-retirement defined benefit plans	605	488
Loss on disposal of property, plant and equipment	31	6
	36,110	39,747
Net change in non-cash balances related to operations:
Accounts receivable	(9,135)	(6,317)
Inventories	324	(13,776)
Prepaid expenses	(1,357)	297
Accounts payable and accruals and other liabilities	(13,018)	9,778
Income taxes	(1,472)	(2,831)
	(24,658)	(12,849)
CASH PROVIDED BY OPERATING ACTIVITIES	11,452	26,898
FINANCING ACTIVITIES
Bank indebtedness	(1,705)	(149)
Long-term debt	8,843	(8,705)
Issuance of capital stock	17	126
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	7,155	(8,728)
INVESTING ACTIVITIES
Acquisition of subsidiary companies	(4,946)	(4,946)
Additions to property, plant and equipment – net	(3,471)	(6,699)
Deferred charges	(1,843)	(2,296)
Funds held by ceding insurer	(25)	(54)
Intangible assets	(1,525)	(2,808)
CASH USED IN INVESTING ACTIVITIES	(11,810)	(16,803)
Effect of exchange rate changes on cash	41	(203)
INCREASE IN CASH	6,838	1,164
Cash, beginning of period	12,345	11,288
CASH, END OF PERIOD	$ 19,183	$ 12,452

SEGMENTED INFORMATION

ALL FIGURES IN THOUSANDS OF US $

Industry Segments

	For The Three Months ended March 31,
		Total		Juvenile			Home Furnishings		Recreational / Leisure
		2006	2005		2006	2005	2006	2005	2006	2005
Total Revenues		$451,024	$471,903		$ 240,093	$ 243,462	$ 133,727	$ 145,382	$ 77,204	$ 83,059
Cost of sales		349,916	362,734		171,997	174,832	116,993	123,197	60,926	64,705
Selling, general and administrative expenses		48,037	50,723		29,371	32,216	9,711	9,065	8,955	9,442
Depreciation & amortization		8,905	9,205		7,001	7,265	1,649	1,768	255	172
Research and development costs		2,281	2,190		1,511	1,611	770	579	–	–
Earnings from Operations		41,885	47,051		$ 30,213	$ 27,538	$ 4,604	$ 10,773	$ 7,068	$ 8,740
Interest		7,917	8,077
Corporate expenses		4,434	5,092
Income taxes		5,353	6,677
Net income		$ 24,181	$ 27,205

Geographic Segments – Origin of Revenues

	Three Months Ended March 31,
	2006	2005
Canada	$          49,812	$          51,693
United States	262,952	291,930
Europe	97,893	98,871
Other foreign countries	40,367	29,409
Total	$     451,024	$     471,903