Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results
for the first quarter ended March 31, 2024.
Revenue was US$351.1 million, up 5.4%, from
US$333.2 million a year ago. Net loss for the first quarter was
US$17.6 million or US$0.54 per diluted share compared with US$31.5
million or US$0.97 per diluted share last year. Adjusted net loss1
was US$16.9 million or US$0.52 per diluted shares versus
US$31.5 million or US$0.97 per diluted share a year ago.
“Dorel Juvenile posted significant gains
year-over-year, with adjusted operating profit1 improving by
US$10.1 million versus last year’s first quarter. Internal optimism
is high as the segment is capitalizing on its introduction of a
diverse selection of exciting new products. Both our retail
partners and consumers have reacted well to the new offerings, with
in store sales rebounding nicely, driving growth through market
share gains. Through a combination of higher sales and by further
reducing Juvenile costs we are more comfortable than ever that this
business will continue its year-over-year earnings improvement.
Dorel Home also made substantial progress during the first quarter,
narrowing its adjusted operating loss1 by US$10.5 million. This was
despite on-going softness in the furniture market, where industry
sales continue to lag all other consumer product categories. The
previously announced plan to simplify and combine certain key areas
of the Home segment has made the combined operations more effective
and cost efficient. Savings are expected to be US$4.0 million
annually. Home is making all the right moves with new customers and
new product listings growing. The meaningful benefits will come
once industry volumes increase to more traditional levels”, stated
Dorel President & CEO, Martin Schwartz.
__________________1 This is a non-GAAP
financial ratio or measure with no standardized meaning prescribed
by IFRS and therefore is unlikely to be comparable to similar
measures presented by other issuers. Refer to the section
“Definition and reconciliation of non-GAAP financial ratios and
measures” in this press release.
Summary of Financial Information (unaudited) |
First Quarters Ended March 31, |
All figures in thousands of US $, except per share amounts |
|
2024 |
|
2023 |
|
Change |
|
$ |
$ |
% |
Revenue |
351,072 |
|
333,197 |
|
5.4 |
% |
|
|
|
|
Net loss |
(17,569 |
) |
(31,509 |
) |
(44.2 |
)% |
Per share - Basic |
(0.54 |
) |
(0.97 |
) |
(44.3 |
)% |
Per share - Diluted |
(0.54 |
) |
(0.97 |
) |
(44.3 |
)% |
|
|
|
|
Adjusted net loss (1) |
(16,870 |
) |
(31,509 |
) |
(46.5 |
)% |
Per share - Diluted (1) |
(0.52 |
) |
(0.97 |
) |
(46.4 |
)% |
Number of shares outstanding – |
|
|
|
Basic weighted average |
32,555,897 |
|
32,537,617 |
|
Diluted weighted average |
32,555,897 |
|
32,537,617 |
|
|
|
|
|
(1) This is a non-GAAP financial ratio or measure with no
standardized meaning prescribed by IFRS and therefore is unlikely
to be comparable to similar measures presented by other issuers.
Refer to the section “Definition and reconciliation of non-GAAP
financial ratios and measures” in this press release. |
|
Dorel Juvenile
All figures in thousands of US $ |
|
|
|
|
|
First Quarters Ended March 31 (unaudited) |
|
2024 |
|
2023 |
|
Change |
|
$ |
% of rev. |
$ |
% of rev. |
% |
Revenue |
212,690 |
|
200,025 |
|
|
6.3 |
% |
|
|
|
|
|
|
Gross profit |
56,457 |
26.5 |
% |
44,793 |
|
22.4 |
% |
26.0 |
% |
Operating profit (loss) |
549 |
|
(8,923 |
) |
|
n.m. |
|
|
|
|
|
|
Adjusted operating profit (loss) (1) |
1,129 |
|
(8,923 |
) |
|
n.m. |
|
|
|
|
|
|
|
|
|
|
|
|
n.m. = not meaningful |
|
|
|
|
|
(1) This is a non-GAAP financial ratio or measure with no
standardized meaning prescribed by IFRS and therefore is unlikely
to be comparable to similar measures presented by other issuers.
Refer to the section “Definition and reconciliation of non-GAAP
financial ratios and measures” in this press release. |
|
First quarter revenue was US$212.7 million, up
US$12.7 million or 6.3%, from US$200.0 million a year ago. Organic
revenue1 increased 6.2% year-over-year, after removing the impact
of varying foreign exchange rates. The growth was derived mainly
from the U.S. and European markets where the brick-and-mortar
distribution channel rebounded strongly. In addition, Brazil and
certain export markets contributed to the year-over-year revenue
gains. In the U.S., car seats led increases in that division’s
product categories. Safety 1st did particularly well, the result of
new product placements and a recent rebranding of this iconic
brand.
First quarter operating profit was US$0.5
million compared to an operating loss of US$8.9 million last
year. Adjusted operating profit1 was US$1.1 million versus an
adjusted operating loss1 of US$8.9 million a year ago. The U.S.
dollar strengthened against most major currencies since the start
of the year and if it had remained at the levels at the end of
2023, this would have added an additional US$2.0 million to
earnings in the quarter. Both Dorel Juvenile USA and Dorel Juvenile
Europe significantly increased operating profit compared to the
comparable period last year with gross margin for the segment being
410 basis points better than the prior year. While a significant
portion of the improvement was due to lower cost inventories to
start the year, improved pricing, a better product mix and better
cost absorption at the U.S. manufacturing facility also contributed
to the quarter’s improvement.
Dorel Home
All figures in thousands of US $ |
|
|
|
|
|
First Quarters Ended March 31 (unaudited) |
|
2024 |
|
2023 |
|
Change |
|
$ |
% of rev. |
$ |
% of rev. |
% |
|
Revenue |
138,382 |
|
|
133,172 |
|
|
3.9 |
% |
|
|
|
|
|
|
|
Gross profit |
11,780 |
|
8.5 |
% |
1,920 |
|
1.4 |
% |
n.m. |
|
Operating loss |
(3,556 |
) |
|
(13,881 |
) |
|
(74.4 |
)% |
|
|
|
|
|
|
|
Adjusted operating loss (1) |
(3,371 |
) |
|
(13,881 |
) |
|
(75.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
n.m. = not meaningful |
|
|
|
|
|
(1) This is a non-GAAP financial ratio or measure with no
standardized meaning prescribed by IFRS and therefore is
unlikely to be comparable to similar measures presented by other
issuers. Refer to the section “Definition and reconciliation of
non-GAAP financial ratios and measures” in this press release. |
|
Revenue for the first quarter was US$138.4
million, up US$5.2 million, or 3.9% from US$133.2 million a year
ago. Total brick and mortar gross sales grew 23.3% from a year ago
driven by strong sales of hand trucks, step stools and folding
furniture. There was also an increase in replenishment orders as in
stock store levels continued to come down. E-commerce gross sales
decreased by 6.1%. The current high inflationary environment as
well as an increase in U.S. mortgage rates continue to constrain
consumer spending on home furnishings. Attendance was excellent at
Dorel Home’s booth at the recent High Point Furniture Market with
customers enthused about the segment’s new product line up.
First quarter operating loss was US$3.6 million
compared to US$13.9 million last year, a US$10.3 million
improvement. Adjusted operating loss1 was US$3.4 million versus
US$13.9 million a year ago. Gross margin increased by 710 basis
points from prior year due largely to lower freight and raw
material costs as well as a slight increase in factory volumes
which helped overhead absorption. Efficiencies have improved and
operating costs have been reduced through the segment’s
restructuring plan initiated in the fourth quarter of 2023.
Inventories were down US$27.8 million from a year ago.
Outlook
“Dorel Juvenile came in as expected, despite
some challenges on currency rates, and we are poised to continue
our quarter-over-quarter earnings improvement. We have several
significant customer events in the second quarter and expect an
increase in sales versus the first quarter as we begin shipping
these new items which should further enhance our current improving
revenue line. As in prior years, we expect the second half to be
better than the first, driven by continued year-over-year revenue
gains,” commented Dorel President & CEO, Martin Schwartz.
“At Dorel Home, the traction at brick-and-mortar
experienced in first quarter is expected to continue. As we gain
new listings and our product begins to sell through, we expect the
segment’s on-going quarter-over-quarter earnings to continue to
improve. However, given the sales cycle process is naturally longer
at brick-and-mortar versus e-commerce, we will only see the
benefits of our successes in that channel during the second half of
the year. In the meanwhile, we continue to focus on cost reduction
and on re-igniting our e-commerce business,” concluded Mr.
Schwartz.
Conference Call
Dorel Industries Inc. will hold a conference
call to discuss these results on Friday, May 10, 2024 at 1:00 PM
Eastern Time. Interested parties can join the call by dialing
1-800-319-4610. The conference call can also be accessed via live
webcast at http://www.dorel.com. If you are unable to call in at
this time, you may access a recording of the meeting by calling
1-800-319-6413 and entering the passcode 0766 on your phone. This
recording will be available on Friday, May 10, 2024 as of
4:30 PM until 11:59 PM on Friday, May 17, 2024.
Condensed consolidated interim financial
statements as at March 31, 2024 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 global organization, operating two distinct
businesses in juvenile products and home products. Dorel’s strength
lies in the diversity, innovation and quality of its products as
well as the superiority of its brands. Dorel Juvenile’s
powerfully branded products include global brands Maxi-Cosi, Safety
1st and Tiny Love, complemented by regional brands such as
BebeConfort, Cosco, Mother’s Choice and Infanti. Dorel Home, with
its comprehensive e-commerce platform, markets a wide assortment of
domestically produced and imported furniture. Dorel has annual
sales of US$1.4 billion and employs approximately
3,900 people in facilities located in twenty-two 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, the Company 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, including statements
regarding the impact of the macro-economic environment, including
inflationary pressures, changes in consumer spending, exchange rate
fluctuations and increases in interest rates on the Company’s
business, financial position and operations, and are based on
several assumptions which give rise to the possibility that actual
results could differ materially from the Company’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, the Company cannot guarantee that
any forward-looking statement will materialize, or if any of them
do, what benefits the Company will derive from them.
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 the Company’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 the Company
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 and financial
conditions, including those resulting from the current high
inflationary environment;
- changes in applicable laws or
regulations;
- changes in product costs and supply
channels, including disruption of the Company’s supply chain
resulting from the macro-economic environment;
- foreign currency fluctuations,
including high levels of volatility in foreign currencies with
respect to the US dollar reflecting uncertainties related to the
macro-economic environment;
- customer and credit risk, including
the concentration of revenues with a small number of
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;
- outbreak of public health crises,
such as the COVID-19 pandemic, that could adversely affect global
economies and financial markets, resulting in an economic downturn
which could be for a prolonged period of time and have a material
adverse effect on the demand for the Company’s products and on its
business, financial condition and results of operations;
- the effect of international
conflicts on the Company’s sales, including the ongoing
Russia-Ukraine war and the Israeli-Hamas war;
- continued access to capital
resources, including compliance by the Company with all of the
covenants under its ABL facility and term loan facility, and the
related costs of borrowing, all of which may be adversely impacted
by the macro-economic environment;
- failures related to information
technology systems;
- changes in assumptions in the
valuation of goodwill and other intangible assets and any future
decline in market capitalization;
- there being no certainty that the
Company will declare any dividend in the future;
- increased exposure to cybersecurity
risks as a result of remote work by the Company’s employees;
- the Company’s ability to protect
its current and future technologies and products and to defend its
intellectual property rights;
- potential damage to the Company’s
reputation; and
- the effect of climate change on the
Company.
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 the
Company’s annual MD&A and Annual Information Form filed with
the applicable Canadian securities regulatory authorities. The risk
factors set out in the previously mentioned documents are expressly
incorporated by reference herein in their entirety.
The Company cautions readers that the risks
described above are not the only ones that could impact it.
Additional risks and uncertainties not currently known to the
Company or that the Company currently deems to be immaterial may
also have a material adverse effect on the Company’s 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.
All figures in the tables below are in thousands of US $, except
per share amounts.
Consolidated Results
|
|
|
|
|
|
First Quarters Ended |
|
March 31, |
|
March 31, |
|
Variation |
|
2024 |
|
2023 |
|
$ |
|
% |
|
|
|
|
|
|
|
|
Revenue |
351,072 |
|
333,197 |
|
17,875 |
|
5.4 |
% |
Cost of sales |
282,835 |
|
286,484 |
|
(3,649 |
) |
(1.3 |
)% |
Gross profit |
68,237 |
|
46,713 |
|
21,524 |
|
46.1 |
% |
Selling expenses |
31,162 |
|
31,439 |
|
(277 |
) |
(0.9 |
)% |
General and administrative expenses |
37,750 |
|
36,694 |
|
1,056 |
|
2.9 |
% |
Research and development expenses |
6,091 |
|
6,208 |
|
(117 |
) |
(1.9 |
)% |
Impairment loss on trade accounts receivable |
121 |
|
414 |
|
(293 |
) |
(70.8 |
)% |
Restructuring costs |
765 |
|
- |
|
765 |
|
100.0 |
% |
Operating loss |
(7,652 |
) |
(28,042 |
) |
(20,390 |
) |
(72.7 |
)% |
Adjusted operating loss (1) |
(6,887 |
) |
(28,042 |
) |
(21,155 |
) |
(75.4 |
)% |
Finance expenses |
9,082 |
|
6,240 |
|
2,842 |
|
45.5 |
% |
Loss before income taxes |
(16,734 |
) |
(34,282 |
) |
(17,548 |
) |
(51.2 |
)% |
Income taxes expense (recovery) |
835 |
|
(2,773 |
) |
3,608 |
|
n.m. |
|
Net loss |
(17,569 |
) |
(31,509 |
) |
(13,940 |
) |
(44.2 |
)% |
Adjusted net loss (1) |
(16,870 |
) |
(31,509 |
) |
(14,639 |
) |
(46.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share |
(0.54 |
) |
(0.97 |
) |
(0.43 |
) |
(44.3 |
)% |
Diluted loss per share |
(0.54 |
) |
(0.97 |
) |
(0.43 |
) |
(44.3 |
)% |
Adjusted diluted loss per share (1) |
(0.52 |
) |
(0.97 |
) |
(0.45 |
) |
(46.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares - Basic |
32,555,897 |
|
32,537,617 |
|
n/a |
|
n/a |
|
Weighted average number of shares - Diluted |
32,555,897 |
|
32,537,617 |
|
n/a |
|
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin (2) |
19.4 |
% |
14.0 |
% |
n/a |
|
540 bp |
|
Selling expenses as a percentage of revenue (3) |
8.9 |
% |
9.4 |
% |
n/a |
|
(50) bp |
|
General and administrative expenses as a percentage of revenue
(4) |
10.8 |
% |
11.0 |
% |
n/a |
|
(20) bp |
|
|
|
|
|
|
|
n.m. = not meaningful |
|
|
|
|
n/a = not applicable |
|
|
|
|
bp = basis point |
|
|
|
|
(1) This is a non-GAAP financial ratio or measure with no
standardized meaning prescribed by IFRS and therefore is unlikely
to be comparable to similar measures presented by other
issuers. Refer to the section “Definition and reconciliation of
non-GAAP financial ratios and measures” in this press release. |
(2) Gross margin is defined as gross profit divided by
revenue. |
(3) Selling expenses as a percentage of revenue is defined as
selling expenses divided by revenue. |
(4) General and administrative expenses as a percentage of revenue
is defined as general and administrative expenses divided by
revenue. |
|
Dorel Juvenile
|
|
|
|
|
|
First Quarters Ended |
|
March 31, |
|
March 31, |
|
Variation |
|
2024 |
|
2023 |
|
$ |
|
% |
|
|
|
|
|
|
|
Revenue |
212,690 |
|
200,025 |
|
12,665 |
|
6.3 |
% |
Cost of sales |
156,233 |
|
155,232 |
|
1,001 |
|
0.6 |
% |
Gross profit |
56,457 |
|
44,793 |
|
11,664 |
|
26.0 |
% |
Selling expenses |
25,371 |
|
25,131 |
|
240 |
|
1.0 |
% |
General and administrative expenses |
25,151 |
|
23,306 |
|
1,845 |
|
7.9 |
% |
Research and development expenses |
4,729 |
|
4,883 |
|
(154 |
) |
(3.2 |
)% |
Impairment loss on trade accounts receivable |
77 |
|
396 |
|
(319 |
) |
(80.6 |
)% |
Restructuring costs |
580 |
|
- |
|
580 |
|
100.0 |
% |
Operating profit (loss) |
549 |
|
(8,923 |
) |
9,472 |
|
n.m. |
|
Adjusted operating profit (loss) (1) |
1,129 |
|
(8,923 |
) |
10,052 |
|
n.m. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin (2) |
26.5 |
% |
22.4 |
% |
n/a |
410 bp |
|
Selling expenses as a percentage of revenue (3) |
11.9 |
% |
12.6 |
% |
n/a |
(70) bp |
|
General and administrative expenses as a percentage of revenue
(4) |
11.8 |
% |
11.7 |
% |
n/a |
10 bp |
|
|
|
|
|
|
n.m. = not meaningful |
|
|
|
|
n/a = not applicable |
|
|
|
|
bp = basis point |
|
|
|
|
(1) This is a non-GAAP financial ratio or measure with no
standardized meaning prescribed by IFRS and therefore is unlikely
to be comparable to similar measures presented by other issuers.
Refer to the section “Definition and reconciliation of non-GAAP
financial ratios and measures” in this press release. |
(2) Gross margin is defined as gross profit divided by
revenue. |
(3) Selling expenses as a percentage of revenue is defined as
selling expenses divided by revenue. |
(4) General and administrative expenses as a percentage of revenue
is defined as general and administrative expenses divided by
revenue. |
|
|
|
Dorel Home
|
|
|
|
|
|
First Quarters Ended |
|
March 31, |
|
March 31, |
|
Variation |
|
2024 |
|
2023 |
|
$ |
|
% |
|
|
|
|
|
|
Revenue |
138,382 |
|
133,172 |
|
5,210 |
|
3.9 |
% |
Cost of sales |
126,602 |
|
131,252 |
|
(4,650 |
) |
(3.5 |
)% |
Gross profit |
11,780 |
|
1,920 |
|
9,860 |
|
n.m. |
Selling expenses |
5,791 |
|
6,308 |
|
(517 |
) |
(8.2 |
)% |
General and administrative expenses |
7,954 |
|
8,150 |
|
(196 |
) |
(2.4 |
)% |
Research and development expenses |
1,362 |
|
1,325 |
|
37 |
|
2.8 |
% |
Impairment loss on trade accounts receivable |
44 |
|
18 |
|
26 |
|
144.4 |
% |
Restructuring costs |
185 |
|
- |
|
185 |
|
100.0 |
% |
Operating loss |
(3,556 |
) |
(13,881 |
) |
(10,325 |
) |
(74.4 |
)% |
Adjusted operating loss (1) |
(3,371 |
) |
(13,881 |
) |
(10,510 |
) |
(75.7 |
)% |
|
|
|
|
|
|
|
|
|
|
Gross margin (2) |
8.5 |
% |
1.4 |
% |
n/a |
710 bp |
Selling expenses as a percentage of revenue (3) |
4.2 |
% |
4.7 |
% |
n/a |
(50) bp |
General and administrative expenses as a percentage of revenue
(4) |
5.7 |
% |
6.1 |
% |
n/a |
(40) bp |
|
|
|
|
|
n.m. = not meaningful |
|
|
|
|
n/a = not applicable |
|
|
|
|
bp = basis point |
|
|
|
|
(1) This is a non-GAAP financial ratio or measure with no
standardized meaning prescribed by IFRS and therefore is unlikely
to be comparable to similar measures presented by other issuers.
Refer to the section “Definition and reconciliation of non-GAAP
financial ratios and measures” in this press release. |
(2) Gross margin is defined as gross profit divided by
revenue. |
(3) Selling expenses as a percentage of revenue is defined as
selling expenses divided by revenue. |
(4) General and administrative expenses as a percentage of revenue
is defined as general and administrative expenses divided by
revenue. |
|
Definition and Reconciliation of Non-GAAP Financial
Ratios and Measures
Dorel presents in this press release certain
non-GAAP financial ratios and measures, as described below. These
non-GAAP financial ratios and measures do not have a standardized
meaning prescribed by IFRS and therefore are unlikely to be
comparable to similar measures presented by other issuers. These
non-GAAP financial ratios and measures should not be considered in
isolation or as a substitute for a measure prepared in accordance
with IFRS. Contained within this press release are reconciliations
of the non-GAAP financial ratios and measures to the most directly
comparable financial measures calculated in accordance with
IFRS.
Dorel believes that the non-GAAP financial
ratios and measures used in this press release provide investors
with additional information to analyze its results and to measure
its financial performance by excluding the variation caused by
certain items that Dorel believes do not reflect its core business
performance and provides better comparability between the periods
presented. Excluding these items does not imply they are
necessarily non-recurring. The non-GAAP financial measures are also
used by management to assess Dorel’s financial performance and to
make operating and strategic decisions.
Adjustments to non-GAAP financial ratios
and measuresAs noted above, certain of our non-GAAP
financial measures and ratios exclude the variation caused by
certain adjustments that affect the comparability of Dorel’s
financial results and could potentially distort the analysis of
trends in its business performance. Adjustments which impact more
than one non-GAAP financial ratio and measure are explained
below.
Restructuring costsRestructuring costs are
comprised of costs directly related to significant exit activities,
including the sale of manufacturing facilities, closure of
businesses, reorganization, optimization, transformation, and
consolidation to improve the competitive position of the Company in
the marketplace and to reduce costs and bring efficiencies, and
acquisition-related costs in connection with business acquisitions.
Restructuring costs are included as an adjustment of adjusted gross
profit, adjusted gross margin, adjusted operating profit (loss),
adjusted net income (loss) and adjusted diluted earnings (loss) per
share. Restructuring costs were US$0.8 million for the three months
ended March 31, 2024 (none in 2023). Refer to the section
“Restructuring costs” in the MD&A for more details.
Adjusted gross profit and adjusted gross
marginAdjusted gross profit is calculated as gross profit
excluding the impact of restructuring costs. Adjusted gross margin
is a non-GAAP ratio and is calculated as adjusted gross profit
divided by revenue. Dorel uses adjusted gross profit and adjusted
gross margin to measure its performance from one period to the
next, without the variation caused by the impacts of the items
described above. Dorel also uses adjusted gross profit and adjusted
gross margin on a segment basis to measure its performance at the
segment level. Dorel excludes this item because it affects the
comparability of its financial results and could potentially
distort the analysis of trends in its business performance. Certain
investors and analysts use the adjusted gross profit and adjusted
gross margin to measure the business performance of the Company as
a whole and at the segment level from one period to the next,
without the variation caused by the impact of the restructuring
costs. Excluding this item does not imply it is necessarily
non-recurring. These ratios and measures do not have any
standardized meanings prescribed by IFRS and are therefore unlikely
to be comparable to a similar measure presented by other
companies.
There are no adjusted gross profit and adjusted
gross margin for the three months ended March 31, 2024 and
2023.
Adjusted operating profit
(loss)Adjusted operating profit (loss) is calculated as
operating profit (loss) excluding the impact of restructuring
costs. Adjusted operating profit (loss) also excludes impairment
loss on goodwill. Management uses adjusted operating profit (loss)
to measure its performance from one period to the next, without the
variation caused by the impacts of the items described above. Dorel
also uses adjusted operating profit (loss) on a segment basis to
measure its performance at the segment level. Dorel excludes these
items because they affect the comparability of its financial
results and could potentially distort the analysis of trends in its
business performance. Certain investors and analysts use the
adjusted operating profit (loss) to measure the business
performance of the Company as a whole and at the segment level from
one period to the next, without the variation caused by the impact
of the restructuring costs and impairment loss on goodwill.
Excluding these items does not imply they are necessarily
non-recurring. This measure does not have any standardized meaning
prescribed by IFRS and is therefore unlikely to be comparable to a
similar measure presented by other companies.
|
|
|
|
|
|
First Quarters Ended |
|
|
March 31, |
|
March 31, |
|
|
|
2024 |
|
2023 |
|
Operating loss |
(7,652 |
) |
(28,042 |
) |
Adjustment for: |
|
|
|
Total restructuring costs |
765 |
|
- |
|
Adjusted operating loss |
(6,887 |
) |
(28,042 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarters Ended |
|
|
March 31, |
|
March 31, |
|
Dorel Juvenile |
2024 |
|
2023 |
|
Operating profit (loss) |
549 |
|
(8,923 |
) |
Adjustment for: |
|
|
|
Restructuring costs |
580 |
|
- |
|
Adjusted operating profit (loss) |
1,129 |
|
(8,923 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarters Ended |
|
|
March 31, |
|
March 31, |
|
Dorel Home |
2024 |
|
2023 |
|
Operating loss |
(3,556 |
) |
(13,881 |
) |
Adjustment for: |
|
|
|
Restructuring costs |
185 |
|
- |
|
Adjusted operating loss |
(3,371 |
) |
(13,881 |
) |
|
|
|
|
Adjusted net income (loss) and adjusted
diluted earnings (loss) per shareAdjusted net income
(loss) is calculated as net income (loss) excluding the impact of
restructuring costs and impairment loss on goodwill, as well as
income taxes expense (recovery) relating to the adjustments above.
Adjusted diluted earnings (loss) per share is a non-GAAP ratio and
is calculated as adjusted net income (loss) divided by the weighted
average number of diluted shares. Management uses adjusted net
income (loss) and adjusted diluted earnings (loss) per share to
measure its performance from one period to the next, without the
variation caused by the impacts of the items described above. Dorel
excludes these items because they affect the comparability of its
financial results and could potentially distort the analysis of
trends in its business performance. Certain investors and analysts
use the adjusted net income (loss) and adjusted diluted earnings
(loss) per share to measure the business performance of the Company
from one period to the next. Excluding these items does not imply
they are necessarily non-recurring. These measures do not have any
standardized meanings prescribed by IFRS and are therefore unlikely
to be comparable to a similar measure presented by other
companies.
|
|
|
|
|
|
|
|
First Quarters Ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2024 |
|
2023 |
|
Net loss |
(17,569 |
) |
(31,509 |
) |
Adjustment for: |
|
|
|
Total restructuring costs |
765 |
|
- |
|
|
Income taxes recovery relating to the above-noted adjustments |
(66 |
) |
- |
|
Adjusted net loss |
(16,870 |
) |
(31,509 |
) |
Basic loss per share |
(0.54 |
) |
(0.97 |
) |
Diluted loss per share |
(0.54 |
) |
(0.97 |
) |
Adjusted diluted loss per share (1) |
(0.52 |
) |
(0.97 |
) |
(1) This is a non-GAAP financial ratio and it is calculated as
adjusted net income (loss) divided by weighted average number of
diluted shares. |
|
Organic revenue growth (decline) and
adjusted organic revenue growth (decline)Organic revenue
growth (decline) is calculated as revenue growth (decline) compared
to the previous period, excluding the impact of varying foreign
exchange rates. Adjusted organic revenue growth (decline) is
calculated as revenue growth (decline) compared to the previous
period, excluding the impact of varying foreign exchange rates and
the impact of the acquired businesses for the first year of
operation and the sale of divisions. Management uses organic
revenue growth (decline) and adjusted organic revenue growth
(decline) to measure its performance from one period to the next,
without the variation caused by the impacts of the items described
above. Dorel excludes these items because they affect the
comparability of its financial results and could potentially
distort the analysis of trends in its business performance. Certain
investors and analysts use organic revenue growth (decline) and
adjusted organic revenue growth (decline) to measure the business
performance of the Company as a whole and at the segment level from
one period to the next. Excluding these items does not imply they
are necessarily non-recurring. These measures do not have any
standardized meanings prescribed by IFRS and are therefore unlikely
to be comparable to a similar measure presented by other
companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarters Ended March 31, |
|
|
Consolidated |
|
Dorel Juvenile |
|
Dorel Home |
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
|
2024 |
2023 |
|
|
$ |
|
% |
|
$ |
|
% |
|
|
$ |
|
% |
|
$ |
|
% |
|
|
$ |
|
% |
$ |
|
% |
|
Revenue of the period |
351,072 |
|
|
333,197 |
|
|
|
212,690 |
|
|
200,025 |
|
|
|
138,382 |
|
|
133,172 |
|
|
Revenue of the comparative period |
(333,197 |
) |
|
(428,035 |
) |
|
|
(200,025 |
) |
|
(216,569 |
) |
|
|
(133,172 |
) |
|
(211,466 |
) |
|
Revenue growth (decline) |
17,875 |
|
5.4 |
|
(94,838 |
) |
(22.2 |
) |
|
12,665 |
|
6.3 |
|
(16,544 |
) |
(7.6 |
) |
|
5,210 |
|
3.9 |
(78,294 |
) |
(37.0 |
) |
Impact of varying foreign exchange rates |
(266 |
) |
(0.1 |
) |
4,957 |
|
1.2 |
|
|
(293 |
) |
(0.1 |
) |
4,316 |
|
2.0 |
|
|
27 |
|
- |
641 |
|
0.3 |
|
Organic revenue growth (decline) (1) |
17,609 |
|
5.3 |
|
(89,881 |
) |
(21.0 |
) |
|
12,372 |
|
6.2 |
|
(12,228 |
) |
(5.6 |
) |
|
5,237 |
|
3.9 |
(77,653 |
) |
(36.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This is a non-GAAP financial ratio or measure with no
standardized meaning prescribed by IFRS and therefore is unlikely
to be comparable to similar measures presented by other issuers.
Refer to the section “Definition and reconciliation of non-GAAP
financial ratios and measures” in this press release. |
CONTACTS:Saint Victor Investments Inc.Rick
Leckner(514) 245-9232Dorel Industries Inc.Jeffrey Schwartz(514)
934-3034