Dorel reports substantial gains for 2012 fourth quarter and full year

    Dorel reports substantial gains for 2012 fourth quarter and full year

PR Newswire

MONTREAL, March 6, 2013

Fourth quarter highlights:

  *Juvenile segment operating profit increases 79% year-over-year
  *Bicycle business operating profit grows 42%
  *Net income, excluding non-cash, non-taxable gains, increases 66%

EXCHANGES
TSX: DII.B, DII.A

MONTREAL, March  6, 2013  /PRNewswire/  - Dorel  Industries Inc.  (TSX:  DII.B 
DII.A) today announced  results for  the fourth  quarter and  full year  ended 
December 30, 2012. Revenue for the fourth quarter increased 10.9% to  US$622.6 
million from US$561.6 million a  year ago. Net income  was up 6.4% to  US$29.1 
million or US$0.91  per diluted  share from  US$27.4 million,  or US$0.85  per 
diluted share in 2011.

Revenue for the  full year reached  US$2.5 billion, up  5.3% from last  year's 
US$2.4 billion. Net income was US$108.6 million or US$3.39 per diluted  share, 
up from US$104.6 million or US$3.21 per diluted share a year ago, increases of
3.8% and 5.6% respectively.

Net income in  both 2012  and 2011 benefitted  from a  reduction in  corporate 
general and administrative  expenses on non-cash  gains related to  contingent 
consideration and put  option liabilities  in connection  with prior  business 
acquisitions. In the fourth quarter of 2012 this gain was US$2.0 million while
in 2011 it amounted to US$11.1 million. For the full year, these amounts  were 
US$3.5 million in 2012 and US$12.2 million in 2011. Excluding these non-cash,
non-taxable gains,  net income  in  the fourth  quarter  of 2012  was  US$27.1 
million versus US$16.3 million in 2011, an increase of 66%. For the full year,
excluding the gain  amount, net  income was  US$105.1 million  in 2012  versus 
US$92.4 million in 2011, a 13.7% improvement.

"We made  substantial progress  through  2012, particularly  in light  of  the 
lingering tough economy," said Dorel President and CEO, Martin Schwartz.  "The 
Juvenile segment's operating  profits increased  due to  improved earnings  at 
Dorel Juvenile Group  (DJG) USA and  at Dorel Europe,  even in the  face of  a 
fragile financial environment abroad.  Dorel's Latin American operations  were 
significant contributors to  the segment's improved  operating profit and  our 
investments there  continue  to pay  handsome  dividends.Dorel Chile  had  an 
outstanding  fourth  quarter,  buoyed  by  strong  retail  sales  at  our   70 
stores.Brazil is recovering from a difficult year in 2011 and Dorel Colombia,
with its first quarter as part of the Company, also delivered sound results.

"Driven by double digit growth in  sales of Dorel's premium Cannondale  brand, 
the Recreational/Leisure segment's full-year revenue surpassed US$900 million.
Fourth quarter revenue  increased markedly  due to  the ability  to ship  more 
product and strong sales of electric ride-on toys.We have proven we can do  a 
good job in the bike business and the growth trend we have established  during 
the last  couple  of  years  clearly  underlines  this.Home  Furnishings,  as 
expected, experienced slightly  lower margins, reducing  operating profits  in 
that segment," concluded Mr. Schwartz.


                  Summary of Financial Highlights 
                 Fourth Quarters Ended December 30 
    All figures in thousands of US $, except per share amounts 
                                            2012       2011 Change %
Total revenue                             622,604    561,608    10.9%
Net income                                 29,119     27,362     6.4%
          Per share - Basic                 0.92       0.85     8.2%
          Per share - Diluted               0.91       0.85     7.1%
Average number of shares outstanding -
diluted weighted average               31,963,942 32,130,001        
                                                                 
                                                                 
                                                                 
                   Summary of Financial Highlights
                   For the years Ended December 30
     All figures in thousands of US $, except per share amounts
                                            2012       2011 Change %
Total revenue                           2,490,710  2,364,229     5.3%
Net income                                108,613    104,593     3.8%
          Per share - Basic                 3.43       3.22     6.5%
          Per share - Diluted               3.39       3.21     5.6%
Average number of shares outstanding -
diluted weighted average               32,039,861 32,621,583        



Juvenile Segment


               Fourth Quarters Ended December 30
                       2012               2011               
                    $     % of rev.    $    % of rev. Change %
Total revenue      267,359          239,532             11.6%
Gross profit        74,820     28.0%  63,673     26.6%    17.5%
Operating profit    18,641      7.0%  10,390      4.3%    79.4%
                                                         
                                                         
                For the years Ended December 30
                       2012               2011               
                    $     % of rev.    $    % of rev. Change %
Total revenue    1,040,765          980,197              6.2%
Gross profit       287,658     27.6% 247,118     25.2%    16.4%
Operating profit    73,313      7.0%  53,851      5.5%    36.1%

Fourth quarter
The fourth quarter revenue increase of 11.6% includes two additional months of
sales at Dorel Chile, acquired in December 2011 and the results for Colombia /
Panama, acquired at  the beginning of  the fourth quarter  of 2012.  Excluding 
these additions  and  the impact  of  foreign exchange,  the  organic  revenue 
increase was  approximately  2%.The  operating profit  improvement  of  79.4% 
versus 2011 was driven principally by the contribution of the segment's  Latin 
American units. This includes an improved performance at Dorel Brazil, as well
as a strong quarter for Dorel Chile.

Full year
Full year revenues increased  from 2011 by US$60.6  million or 6.2%. This  was 
the result of acquisitions and the impact of foreign exchange.  Year-over-year 
operating profit increased significantly with a 36% improvement.In  addition, 
the segment's  U.S. and  European businesses  both posted  improved  earnings, 
benefitting from a more stable cost environment in 2012.

Recreational / Leisure Segment


              Fourth Quarters Ended December 30
                      2012              2011               
                   $    % of rev.    $    % of rev. Change %
Total revenue    226,640          202,410             12.0%
Gross profit      56,519     24.9%  46,410     22.9%    21.8%
Operating profit  16,456      7.3%  11,604      5.7%    41.8%
                                                       
                                                       
               For the years Ended December 30
                      2012              2011               
                   $    % of rev.    $    % of rev. Change %
Total revenue    928,422          861,754              7.7%
Gross profit     233,437     25.1% 205,052     23.8%    13.8%
Operating profit  71,958      7.8%  60,657      7.0%    18.6%



Fourth quarter
Fourth quarter revenues increased  approximately 12%, with  all of the  growth 
being organic. The Independent Bicycle Dealer (IBD) channel drove the increase
with strong pre-season  sales of model  year 2013 bicycles.  Improved mix  and 
cost containment  were the  principal reasons  for the  increase in  operating 
profit of 41.8%.The  continuing turnaround  at SUGOI resulted  in a  modestly 
profitable quarter, a sharp reversal from the loss during the fourth quarter a
year ago.

Full year
Revenues rose 7.7%  to US$928.4 million  compared to US$861.8  million a  year 
ago. After removing the  impact of foreign  exchange, organic sales  increased 
approximately 10%, marking the second consecutive year of 10% organic  growth. 
The gain was  in both  the IBD and  the mass  merchant distribution  channels, 
driven by  new products  and strong  marketing of  the segment's  brands.  The 
operating profit increase of  18.6% was driven by  a focus on increased  sales 
and gross margin expansion. To support  this growth, the segment continues  to 
invest in marketing and infrastructure  to support the objectives of  building 
this segment into the premier bicycle company in the market.

The growth in the IBD channel was in the majority of its markets.In the  mass 
channel, bicycle  sales were  complemented by  strong growth  in the  electric 
ride-on category.

Home Furnishings Segment


              Fourth Quarters Ended December 30
                      2012              2011               
                   $    % of rev.    $    % of rev. Change %
Total revenue    128,605          119,666              7.5%
Gross profit      15,064     11.7%  17,091     14.3%   -11.9%
Operating profit   7,295      5.7%   8,486      7.1%   -14.0%
                                                       
                                                       
               For the years Ended December 30
                      2012              2011               
                   $    % of rev.    $    % of rev. Change %
Total revenue    521,523          522,278             -0.1%
Gross profit      62,552     12.0%  65,589     12.6%    -4.6%
Operating profit  25,593      4.9%  29,251      5.6%   -12.5%

Fourth quarter
Fourth quarter revenues  increased by  7.5% due  to higher  sales of  imported 
furniture items,  mattresses and  futons.  The sales  growth continues  to  be 
driven by growing sales to the Internet channel.Operating profit declined  as 
the result of higher overhead costs and a less profitable sales mix at certain
of the segment's divisions.

Full year
Revenues for the year were basically flat at US$521.5 million. As in the prior
year, sales decreases  of metal  folding furniture  were offset  by the  sales 
growth of imported furniture, principally in the futon, mattress, bunk bed and
upholstered item  categories.Operating profit  decreased  by 12.5%  as  gross 
margins declined.While the segment did  benefit from more stable input  costs 
in 2012 versus 2011, this  was offset by a less  profitable mix of sales.  The 
Canadian dollar remained strong against  its U.S. counterpart which  pressures 
margins as  two of  the segment's  plants are  based in  Canada and  ship  the 
majority of their products to the U.S.

Other
In 2012 the  Company's effective tax  rate was  16.3% as compared  to 8.1%  in 
2011.An income tax recovery of US$6.8 million was recorded in 2011 due to the
realization of a tax benefit in  the Netherlands where the Juvenile  segment's 
product research  and  development  (R&D)  program  qualified  for  the  Dutch 
government's "Innovation Box" program. Excluding this benefit the tax rate  in 
2011 would have been 14.1%, more in line with the 2012 results.

Statement of Financial Position and Cash flow
Compared to December 30,  2011 levels, the most  significant variation on  the 
Company's Statement of Financial Position  was the increase in inventory  from 
US$442.4 million at year end 2011 to US$501.7 million as at December 30, 2012.
This increase was  anticipated as  last year a  lack of  inventory at  certain 
divisions had a negative impact on  customer service levels. In addition,  the 
Dorel Colombia  acquisition  and the  growth  of sales  through  the  Internet 
distribution channel have necessitated a wider number of models to be held  in 
sufficient quantities to adequately service customers, thus requiring a higher
overall inventory level.  The Company  believes there is  some opportunity  to 
decrease inventory levels slightly, but the decrease will not be  significant. 
Principally for this reason,  cash flow provided  by operating activities  for 
the year was US$107.2 million compared to US$162.5 million recorded in 2011, a
decrease of US$55.3 million.

Outlook
"For the 2013 year we  expect to achieve overall  growth in both revenues  and 
net income through both  market expansion and by  continuing to invest in  new 
products and brand support. Specifically in Recreational / Leisure we  believe 
the success of our new product development and marketing in 2012 will continue
into 2013. In Juvenile,  the majority of our  2013 improvement will come  from 
Latin America. We have made strategic investments over the past few years  and 
expect growth  there to  outpace  our traditional  markets. Our  products  and 
brands have considerable untapped potential  in markets such as Latin  America 
and Asia and we feel  these geographies will play a  large role in our  growth 
strategy. We will also continue to  invest in our North American and  European 
businesses to ensure  we remain  market leaders. In  Home Furnishings,  growth 
prospects are more modest as  the segment is based  only in North America  and 
brand differentiation is not a  competitive advantage; however we are  focused 
on and further capitalizing upon the  growth in the Internet retail  channel," 
commented Mr. Schwartz.

"The Company is experiencing  a slower start  in 2013 than in  2012. We had  a 
strong first quarter of 2012 and the timing of deliveries thus far in 2013 has
had the impact of lowering our  expectations for the first quarter. As  such, 
we anticipate being below  prior year levels.  However, as some  of this is  a 
timing issue,  we remain  confident of  an improved  2013 overall.Further  we 
remain open to acquisitions to  complement our current businesses",  concluded 
Mr. Schwartz.

Conference Call
Dorel Industries Inc.  will hold a  conference call to  discuss these  results 
today, March 6, 2013  at 1:00 P.M. Eastern  Time. Interested parties can  join 
the call by dialling 1-888-231-8191. The conference call can also be  accessed 
via live webcast  at www.dorel.com or  www.newswire.ca. If you  are unable  to 
call in at this  time, you may  access a recording of  the meeting by  calling 
1-855-859-2056  and  entering  the  passcode  87464761  on  your  phone.  This 
recording will be available on Wednesday, March 6, 2013 as of 4:00P.M.  until 
11:59 P.M. on Wednesday, March 13, 2013.

Complete financial  statements will  be available  on the  Company's  website, 
www.dorel.com, and will be available through the SEDAR website.

Profile
Dorel Industries Inc. (TSX: DII.B, DII.A)  is a world class juvenile  products 
and bicycle company. Dorel  creates style and excitement  in equal measure  to 
safety, quality  and value.  The Company's  lifestyle leadership  position  is 
pronounced in  both its  Juvenile  and Bicycle  categories  with an  array  of 
trend-setting products.Dorel's  powerfully  branded products  include  Safety 
1^st, Quinny,  Cosco, Maxi-Cosi  and  Bébé Confort  in  Juvenile, as  well  as 
Cannondale,    Schwinn,    GT,    Mongoose,    IronHorse    and    SUGOI    in 
Recreational/Leisure.Dorel's  Home   Furnishings  segment   markets  a   wide 
assortment of  both domestically  produced  and imported  furniture  products, 
principally within North America. Dorel has annual sales of US$2.5 billion and
employs 5,400 people in facilities located in twenty-four countries worldwide.

Caution Regarding Forward Looking Statements
Certain  statements   included   in   this  press   release   may   constitute 
"forward-looking  statements"  within  the  meaning  of  applicable   Canadian 
securities legislation.  Except as  may be  required by  Canadian  securities 
laws, Dorel  does  not  undertake  any obligation  to  update  or  revise  any 
forward-looking statements, whether  as a  result of  new information,  future 
events or otherwise.  Forward-looking statements,  by their  very nature,  are 
subject  to  numerous  risks  and  uncertainties  and  are  based  on  several 
assumptions which  give rise  to  the possibility  that actual  results  could 
differ materially from Dorel's  expectations expressed in  or implied by  such 
forward-looking  statements  and   that  the   objectives,  plans,   strategic 
priorities and business outlook may not be achieved. As a result, Dorel cannot
guarantee that any forward-looking statement will materialize. Forward-looking
statements are  provided in  this  press release  for  the purpose  of  giving 
information about  Management's current  expectations and  plans and  allowing 
investors and  others  to get  a  better understanding  of  Dorel's  operating 
environment. However, readers are cautioned that it may not be appropriate  to 
use such forward-looking statements for any other purpose.

Forward-looking statements made in this press release are based on a number of
assumptions that  Dorel  believed were  reasonable  on  the day  it  made  the 
forward-looking statements. Factors that could cause actual results to  differ 
materially from  the Company's  expectations expressed  in or  implied by  the 
forward-looking statements  include:general economic  conditions; changes  in 
product costs and supply channel; foreign currency fluctuations; customer  and 
credit risk including the concentration of revenues with few customers;  costs 
associated with product liability;  changes in income  tax legislation or  the 
interpretation or application of those rules; the continued ability to develop
products and  support  brand names;  changes  in the  regulatory  environment; 
continued access  to capital  resources and  the related  costs of  borrowing; 
changes in  assumptions in  the  valuation of  goodwill and  other  intangible 
assets and subject  to dividends  being declared  by the  Board of  Directors, 
there can be  no certainty that  Dorel's Dividend Policy  will be  maintained. 
These and  other  risk factors  that  could  cause actual  results  to  differ 
materially from expectations  expressed in or  implied by the  forward-looking 
statements are discussed in  Dorel's annual MD&A  and Annual Information  Form 
filed with the applicable Canadian securities regulatory authorities. The risk
factors outlined  in  the  previously  mentioned  documents  are  specifically 
incorporated herein by reference.

Dorel cautions readers that  the risks described above  are not the only  ones 
that could impact it. Additional  risks and uncertainties not currently  known 
to Dorel  or that  Dorel currently  deems to  be immaterial  may also  have  a 
material adverse effect  on our  business, financial condition  or results  of 
operations.Given these risks  and uncertainties, investors  should not  place 
undue reliance  on  forward-looking  statements  as  a  prediction  of  actual 
results.

Except as otherwise indicated, forward-looking  statements do not reflect  the 
potential impact  of  any non-recurring  or  other  unusual items  or  of  any 
dispositions, mergers,  acquisitions,  other business  combinations  or  other 
transactions that may be  announced or that may  occur after the date  hereof. 
The financial impact of these transactions and non-recurring and other unusual
items can be  complex and depends  on the  facts particular to  each of  them. 
Dorel therefore cannot describe the expected impact in a meaningful way or  in 
the same way Dorel presents known risks affecting the business.





                           DOREL INDUSTRIES INC.
               CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
                     ALL FIGURES IN THOUSANDS OF US $
                                                                       
                                                   as at          as at
                                                December 30,   December 30,
                                                   2012          2011
                                               (unaudited)   (unaudited)
                                                                     
ASSETS                                                                
CURRENT ASSETS                                                        
 Cash and cash equivalents                      $    38,311   $    29,764
 Trade and other receivables                       443,020      403,664
 Inventories                                       501,652      442,409
 Other financial assets                                287        9,867
 Income taxes receivable                            17,273       17,811
 Prepaid expenses                                   19,813       21,858
                                                 1,020,356      925,373
                                                                     
NON-CURRENT ASSETS                                                    
 Property, plant and equipment                     157,127      158,363
 Intangible assets                                 423,057      411,171
 Goodwill                                          578,352      568,849
 Other financial assets                                796            -
 Deferred tax assets                                22,773       31,096
 Other assets                                        1,625        1,717
                                                 1,183,730    1,171,196
                                                $ 2,204,086   $ 2,096,569
                                                                     
LIABILITIES                                                           
CURRENT LIABILITIES                                                   
 Bank indebtedness                              $    11,476   $    20,130
 Trade and other payables                          337,451      323,552
 Other financial liabilities                         4,236       13,065
 Income taxes payable                                2,856        2,315
 Long-term debt                                     13,520       17,279
 Provisions                                         33,769       37,096
                                                   403,308      413,437
                                                                     
NON-CURRENT LIABILITIES                                               
 Long-term debt                                    317,970      298,160
 Pension & post-retirement benefit obligations      35,724       35,258
 Deferred tax liabilities                           87,922       79,702
 Provisions                                          1,969        1,876
 Other financial liabilites                         43,600       33,141
 Other long-term liabilities                         5,895        5,340
                                                   493,080      453,477
                                                                     
EQUITY                                                                
SHARE CAPITAL                                       180,856      174,782
CONTRIBUTED SURPLUS                                  27,192       26,445
ACCUMULATED OTHER COMPREHENSIVE INCOME               65,352       58,842
RETAINED EARNINGS                                 1,034,298      969,586
                                                 1,307,698    1,229,655
                                                $ 2,204,086   $ 2,096,569



                            DOREL INDUSTRIES INC.
                        CONSOLIDATED INCOME STATEMENTS
          ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
                                                                      
                       Fourth Quarters Ended         Twelve Months Ended
                     December 30,   December 30,   December 30,   December 30,
                        2012          2011          2012          2011
                    (unaudited)   (unaudited)   (unaudited)   (unaudited)
                                                                  
Sales                $    616,996  $    558,031  $  2,475,762  $  2,352,250
Licensing and
commission income          5,608        3,577       14,948       11,979
TOTAL REVENUE            622,604      561,608    2,490,710    2,364,229
                                                                  
Cost of sales            476,201      434,434    1,907,063    1,846,470
GROSS PROFIT             146,403      127,174      583,647      517,759
                                                                  
                                                                  
Selling expenses          55,424       45,165      220,299      185,868
General and
administrative
expenses                 43,629       35,426      186,785      164,207
Research and
development expenses       7,861        9,849       28,724       32,227
OPERATING PROFIT          39,489       36,734      147,839      135,457
                                                                  
Finance expenses           4,511        5,413       18,017       21,659
INCOME BEFORE INCOME
TAXES                     34,978       31,321      129,822      113,798
                                                                  
Income taxes expense       5,859        3,959       21,209        9,205
NET INCOME           $     29,119  $     27,362  $    108,613  $    104,593
                                                                  
EARNINGS PER SHARE                                                 
      Basic         $       0.92  $       0.85  $       3.43  $       3.22
      Diluted       $       0.91  $       0.85  $       3.39  $       3.21
                                                                  
SHARES OUTSTANDING                                                 
       Basic -
       weighted
      average        31,560,961   32,034,721   31,690,811   32,456,275
       Diluted -
       weighted
      average        31,963,942   32,130,001   32,039,861   32,621,583
                                                                  
                                                                  
                            DOREL INDUSTRIES INC.
               CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                       ALL FIGURES IN THOUSANDS OF US $
                                                                      
                       Fourth Quarters Ended         Twelve Months Ended
                     December 30,   December 30,   December 30,   December 30,
                        2012          2011          2012          2011
                    (unaudited)   (unaudited)   (unaudited)   (unaudited)
                                                                  
NET INCOME           $     29,119  $     27,362  $    108,613  $    104,593
                                                                  
OTHER COMPREHENSIVE
INCOME (LOSS):                                                     
                                                                  
Items that are or
may be reclassified
subsequently to
net income:                                                        
Cumulative
translation account:                                               
Net change in
unrealized foreign
currency gains
(losses)
on translation of
net investments in
foreign operations,
net of tax of nil         13,487     (14,653)       13,628     (15,210)
                                                                  
Net changes in cash
flow hedges:                                                       
Net change in
unrealized gains
(losses) on
derivatives
designated as cash
flow hedges                (998)        3,469          123        3,866
Reclassification to
income                       242        (495)          973        1,027
Reclassification to
the related non
financial asset          (2,637)        (146)     (10,654)        4,826
Deferred income
taxes                        869        (870)        2,440      (2,605)
                        (2,524)        1,958      (7,118)        7,114
                                                                  
Items that will not
be reclassified to
net income:                                                        
Defined benefit
plans:                                                             
Actuarial gains
(losses) on defined
benefit plans            (2,865)      (8,152)      (2,871)      (8,158)
Deferred income
taxes                      1,138        3,318        1,139        3,234
                        (1,727)      (4,834)      (1,732)      (4,924)
                                                                  
TOTAL OTHER
COMPREHENSIVE INCOME
(LOSS)                     9,236     (17,529)        4,778     (13,020)
                                                                  
TOTAL COMPREHENSIVE
INCOME               $     38,355  $      9,833  $    113,391  $     91,573

                                 DOREL INDUSTRIES INC.
                      CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
                            ALL FIGURES IN THOUSANDS OF US $
                                                                                 
                             Attributable to equity holders of the Company
                                         Cumulative
                    Share    Contributed Translation  Cash Flow   Retained      Total
                  Capital     Surplus    Account*     Hedges*    Earnings     Equity
                (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
                                                                           
Balance as at
December 30,
2010              $  178,816  $   23,776  $   67,970  $  (1,032) $   902,321 $ 1,171,851
                                                                           
Total
comprehensive
income:                                                                     
  Net income             -          -          -          -    104,593    104,593
   Defined
   benefit plans
   actuarial
   gains and
   losses, net
  of tax                 -          -          -          -    (4,924)    (4,924)
   Other
   comprehensive
  income (loss)          -          -   (15,210)      7,114         -    (8,096)
                         -          -   (15,210)      7,114     99,669     91,573
Issued under
stock option
plan                    429          -          -          -          -        429
Reclassification
from contributed
surplus due to
exercise stock
options                  89       (89)          -          -          -          -
Repurchase and
cancellation of
shares              (4,552)          -          -          -          -    (4,552)
Premium paid on
share repurchase          -          -          -          -   (12,847)   (12,847)
Share-based
payments                  -      2,686          -          -          -      2,686
Dividends on
common shares             -          -          -          -   (19,485)   (19,485)
Dividends on
deferred share
units                     -         72          -          -       (72)          -
Balance as at
December 30,
2011              $  174,782  $   26,445  $   52,760  $    6,082 $   969,586 $ 1,229,655
                                                                           
Total
comprehensive
income:                                                                     
  Net income             -          -          -          -    108,613    108,613
   Defined
   benefit plans
   actuarial
   gains and
   losses, net
  of tax                 -          -          -          -    (1,732)    (1,732)
   Other
   comprehensive
  income (loss)          -          -     13,628    (7,118)         -      6,510
                         -          -     13,628    (7,118)    106,881    113,391
Issued under
stock option
plan                  8,524          -          -          -          -      8,524
Reclassification
from contributed
surplus due to
exercise of
stock options         1,770    (1,770)          -          -          -          -
Repurchase and
cancellation of
shares              (4,220)          -          -          -          -    (4,220)
Premium paid on
share repurchase          -          -          -          -   (13,592)   (13,592)
Share-based
payments                  -      2,389          -          -          -      2,389
Dividends on
common shares             -          -          -          -   (28,449)   (28,449)
Dividends on
deferred share
units                     -        128          -          -      (128)          -
Balance as at
December 30,
2012              $  180,856  $   27,192  $   66,388  $  (1,036) $ 1,034,298 $ 1,307,698
                                                                           
*Accumulated other comprehensive income      



                            DOREL INDUSTRIES INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                       ALL FIGURES IN THOUSANDS OF US $
                                                                      
                       Fourth Quarters Ended         Twelve Months Ended
                     December 30,   December 30,   December 30,   December 30,
                        2012          2011          2012          2011
                    (unaudited)   (unaudited)   (unaudited)   (unaudited)
                                                                  
CASH PROVIDED BY
(USED IN):                                                         
OPERATING ACTIVITIES                                               
Net income            $    29,119   $    27,362   $   108,613   $   104,593
Items not involving
cash:                                                              
  Depreciation and
 amortization            14,011       12,160       53,332       53,865
  Amortization of
  deferred financing
 costs                       98          156          418          532
  Impairment loss of
 goodwill                     -        1,372            -        1,372
  Accretion expense
  on contingent
  consideration and
  putoption
 liabilities              1,196          599        3,304        2,209
  Change of
  assumptions on
  contingent
  consideration
  andput option
 liabilities            (2,043)     (11,131)      (3,473)     (12,217)
  Unrealized (gains)
  losses due to
  foreign exchange
  exposure on
  contingent
  consideration and
  put option
 liabilities              (140)          259        1,466        (808)
  Other finance
 expenses                 3,217        4,659       14,295       18,919
  Income taxes
 expense                  5,859        3,959       21,209        9,205
  Share-based
 payments                   567          526        2,275        2,467
  Pension and
  post-retirement
  defined benefit
 plans                  (1,741)      (3,989)          431      (1,473)
  Loss on disposal
  of property, plant
 and equipment              305          880          229          854
                         50,448       36,812      202,099      179,518
Net changes in
balances related to
operations:                                                        
  Trade and other
 receivables            (3,816)     (10,656)     (37,250)     (37,683)
 Inventories             29,712       18,419     (47,120)       81,433
  Other financial
 assets                      31            -        (947)            -
 Prepaid expenses         4,690           12        2,220      (4,134)
  Trade and other
 payables              (14,250)       18,460       11,769     (12,114)
  Pension and
  post-retirement
  benefit
 obligations              (304)        (572)      (2,776)      (3,082)
  Provisions, other
  financial
  long-term
  liabilities and
  other long-term
 liabilities            (2,366)      (1,185)      (2,616)      (1,876)
                         13,697       24,478     (76,720)       22,544
                                                                  
 Income taxes paid      (6,058)      (4,489)     (19,271)     (28,181)
  Income taxes
 received                 1,286        6,067       16,541        7,136
 Interest paid          (6,257)      (6,239)     (16,660)     (18,540)
 Interest received          343            -        1,228            -
                                                                  
CASH PROVIDED BY
OPERATING ACTIVITIES      53,459       56,629      107,217      162,477
                                                                  
FINANCING ACTIVITIES                                               
 Bank indebtedness          711      (1,495)      (8,670)      (9,777)
  Increase of
 long-term debt               -            -       32,883            -
  Repayments of
 long-term debt        (29,998)        6,268     (16,767)     (14,855)
  Repayments of
  contingent
  consideration and
  put option
 liabilities                  -            -      (6,972)      (2,431)
 Financing costs           (28)         (56)        (220)         (22)
 Share repurchase             -      (4,753)     (17,812)     (17,399)
  Issuance of share
 capital                  3,134            -        7,941          429
  Dividends on
 common shares          (9,463)      (4,808)     (28,449)     (19,485)
CASH USED IN
FINANCING ACTIVITIES    (35,644)      (4,844)     (38,066)     (63,540)
                                                                  
INVESTING ACTIVITIES                                               
  Acquisition of
 businesses               (152)     (36,319)     (14,819)     (36,319)
  Additions to
  property, plant
 and equipment          (6,443)      (4,821)     (27,020)     (27,975)
  Disposals of
  property, plant
 and equipment               16          502          166          644
  Additions to
 intangible assets      (4,898)      (5,970)     (19,491)     (20,825)
CASH USED IN
INVESTING ACTIVITIES    (11,477)     (46,608)     (61,164)     (84,475)
                                                                  
  Effect of exchange
  rate changes on
  cash and cash
 equivalents                 67      (1,191)          560        (446)
                                                                  
NET INCREASE IN CASH
AND CASH EQUIVALENTS       6,405        3,986        8,547       14,016
                                                                  
Cash and cash
equivalents,
beginning of period       31,906       25,778       29,764       15,748
                                                                  
CASH AND CASH
EQUIVALENTS, END OF
PERIOD                $    38,311   $    29,764   $    38,311   $    29,764



                                            DOREL INDUSTRIES INC.
                                        INDUSTRY SEGMENTED INFORMATION
                                      FOURTH QUARTERS ENDED DECEMBER 30
                          ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
                                                                                                     
                                                                   Recreational /
                       Total                 Juvenile                 Leisure            Home Furnishings
                 2012        2011        2012        2011        2012        2011        2012        2011
              (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)

Total revenue  $   622,604 $   561,608 $   267,359  $  239,532  $  226,640  $  202,410  $  128,605  $  119,666
Cost of sales     476,201    434,434    192,539    175,859    170,121    156,000    113,541    102,575
Gross profit      146,403    127,174     74,820     63,673     56,519     46,410     15,064     17,091
Selling
expenses           54,746     44,607     28,709     22,480     21,962     18,034      4,075      4,093
General and
administrative
expenses           41,404     42,238     21,171     22,623     17,354     15,714      2,879      3,901
Research and
development
expenses            7,861      9,849      6,299      8,180        747      1,058        815        611
Operating
profit             42,392     30,480 $    18,641  $   10,390  $   16,456  $   11,604  $    7,295  $    8,486
Finance
expenses            4,511      5,413                                                            
Corporate
expenses            2,903    (6,254)                                                            
Income taxes        5,859      3,959                                                            
                                                                                             
Net income     $    29,119 $    27,362                                                            
                                                                                             
Earnings per
Share                                                                                         
 Basic        $      0.92 $      0.85                                                            
 Diluted      $      0.91 $      0.85                                                            
                                                                                             
                                                                                             
Impairment
loss of
goodwill
included in
operating
profit         $         - $     1,372 $         -  $    1,372  $        -  $        -  $        -  $        -
Depreciation
and
amortization
included in
operating
profit         $    13,856 $    12,112 $    10,210  $    9,921  $    2,695  $    1,377  $      951  $      814


                                            DOREL INDUSTRIES INC.
                                        INDUSTRY SEGMENTED INFORMATION
                                       FOR THE YEARS ENDED DECEMBER 30
                          ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
                                                                                                     
                       Total                Juvenile         Recreational / Leisure     Home Furnishings
                 2012        2011        2012        2011        2012        2011        2012        2011
              (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)

Total revenue  $ 2,490,710 $ 2,364,229 $ 1,040,765  $  980,197  $  928,422  $  861,754  $  521,523  $  522,278
Cost of sales   1,907,063  1,846,470    753,107    733,079    694,985    656,702    458,971    456,689
Gross Profit      583,647    517,759    287,658    247,118    233,437    205,052     62,552     65,589
Selling
expenses          217,889    183,740    106,134     83,129     94,523     83,677     17,232     16,934
General and
administrative
expenses          166,170    158,033     87,202     84,083     62,327     57,083     16,641     16,867
Research and
development
expenses           28,724     32,227     21,009     26,055      4,629      3,635      3,086      2,537
Operating
profit            170,864    143,759 $    73,313  $   53,851  $   71,958  $   60,657  $   25,593  $   29,251
Finance
expenses           18,017     21,659                                                            
Corporate
expenses           23,025      8,302                                                            
Income taxes       21,209      9,205                                                            
                                                                                             
Net income     $   108,613 $   104,593                                                            
                                                                                             
Earnings per
Share                                                                                         
 Basic        $      3.43 $      3.22                                                            
 Diluted      $      3.39 $      3.21                                                            
                                                                                             
                                                                                             
Impairment
loss of
goodwill
included in
operating
profit         $        - $     1,372 $        -  $    1,372  $       -  $       -  $       -  $       -
Depreciation
and
amortization
included in
operating
profit         $    53,054 $    53,683 $    39,151  $   40,376  $    9,429  $    8,251  $    4,474  $    5,056







SOURCE DOREL INDUSTRIES INC.

Contact:

MaisonBrison Communications
Rick Leckner
(514) 731-0000

Dorel Industries Inc.
Jeffrey Schwartz
(514) 934-3034
 
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