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Press release from CNW Group

Dorel reports 2011 fourth quarter and full year earnings

Thursday, March 08, 2012

Dorel reports 2011 fourth quarter and full year earnings08:39 EST Thursday, March 08, 2012EXCHANGESTSX: DII.B, DII.ABicycle business drives profits, Home Furnishings has strong quarter Inventories back to traditional levels Free cash flow for the year improved by US$88 millionMONTREAL, March 8, 2012 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A) today announced results for the fourth quarter and year ended December 30, 2011. Revenue for the fourth quarter increased 4.1% to US$561.6 million from US$539.5 million a year ago. Net income rose 5.5% to US$27.4 million or $US0.85 per diluted share from US$25.9 million, or US$0.79 per diluted share last year.Revenue for the full year grew 2.2% to US$2.4 billion as compared to US$2.3 billion in 2010. Net income decreased 18.1% to US$104.6 million, or US$3.21 per diluted share from US$127.7 million or US$3.85 per diluted share last year. Net income includes US$12.2 million recorded as a reduction in corporate general and administrative expenses. This non-taxable amount is from a change in the assumed estimated future acquisition price on contingent consideration and put option liabilities related to certain past business acquisitions.Commenting on the results, Dorel CEO and President, Martin Schwartz stated: "Versus the third quarter, the Juvenile segment did reverse the year's downward earnings trend, although results were not yet where we had hoped they would be. Demand for juvenile products in the U.S. has increased somewhat. In Europe, despite the general negative economic environment, Dorel Europe improved its performance over the third quarter and maintained market share. Dorel Chile, established after our November 2011 transaction with the Silfa Group, has been accretive to earnings, even with its contribution limited to the month of December."In Recreational / Leisure, a shift in the timing of the introduction of new model year bikes meant sales for the quarter were down slightly versus last year, but this business remains very solid in both the independent bicycle dealer (IBD) and mass market channels. A clear indication of the success of our R&D efforts was the recognition by "Tour", a prestigious German bicycle trade magazine, of the Cannondale Super Six Evo Ultimate. It was awarded the top score in a review of "The Best Road Bikes in the World over the Past Ten Years". This is the first time this magazine has given this award which was based on ten years of reviews of over 2000 bikes. Home Furnishings had a very good quarter and we are pleased to see that demand has once again picked up," concluded Mr. Schwartz.     Summary of Financial HighlightsFourth Quarters Ended December 30All figures in thousands of US $, except per share amounts 20112010Change %Total revenue561,608539,5234.1%Net income27,36225,9475.5% Per share - Basic0.850.797.6% Per share - Diluted0.850.797.6%Average number of shares outstanding -   diluted weighted average32,130,00133,038,961         Summary of Financial HighlightsFor the years Ended December 30All figures in thousands of US $, except per share amounts 20112010Change %Total revenue 2,364,2292,312,9862.2%Net income104,593127,727-18.1% Per share - Basic3.223.89-17.2% Per share - Diluted3.213.85-16.6%Average number of shares outstanding -   diluted weighted average32,621,58333,218,267 Juvenile Segment      Fourth Quarters Ended December 30 20112010  $% ofrev.$% ofrev.Change %Total revenue239,532   236,204 1.4%Gross profit63,67326.6%   63,20226.8%0.7%Operating profit10,3904.3%   14,9266.3%-30.4%            For the years Ended December 30 20112010  $% ofrev.$% ofrev.Change %Total revenue980,197 1,030,209 -4.9%Gross profit247,11825.2%281,41227.3%-12.2%Operating profit53,8515.5%96,4709.4%-44.2%Fourth quarterFourth quarter revenue increased 1.4%. However, excluding the impact of foreign exchange and the acquired sales of Dorel Chile, the organic revenue decline was approximately 2%. The decline was in most markets, the notable exception being in the US, which improved sales over both year-over-year and sequentially, as the retail environment began to stabilize. In Europe, local currency sales decreased by approximately 5%, with sales in Southern Europe facing the greatest challenges.  Gross margin dollars were slightly higher than in the prior year, but earnings declined by US$4.5 million principally due to an increase in operating expenses. The main reasons were higher product liability costs, professional fees and other costs incurred for the Dorel Chile acquisition and a US$1.4 million impairment of goodwill related to Dorel Brazil. The fourth quarter includes one month of Dorel Chile results, and the acquisition was immediately accretive to earnings.Full year2011 Juvenile revenues decreased 4.9% compared to 2010 levels. Excluding the impact of foreign exchange and the fourth quarter Dorel Chile acquisition, the organic revenue decline for the segment was 8.5%. The decline was in all divisions, but the majority of the segment's decline was in the U.S. As for revenues, the majority of the operating profit decrease in 2011 was due to lower gross margin dollars on lower sales and higher costs in the U.S.  Europe faced similar challenges, though the drop in earnings was less acute. In Brazil, revenues declined due to the reduced enforcement of local car seat usage and as a result, demand dropped, resulting in price discounting and a less profitable product mix. Selling, general and administrative expenses also increased in 2011. A large portion of this increase was strategic spending related to new business acquisitions and developing a stronger presence in the U.S. independent specialist channel.Recreational / Leisure Segment      Fourth Quarters Ended December 30 20112010  $% ofrev.$% ofrev.Change %Total revenue202,410 205,892 -1.7%Gross profit46,41022.9%46,49122.6%-0.2%Operating profit11,6045.7%10,6385.2%9.1%            For the years Ended December 30 20112010  $% ofrev.$% ofrev.Change %Total revenue861,754 774,987 11.2%Gross profit205,05223.8%183,55323.7%11.7%Operating profit60,6577.0%51,8296.7%17.0%Fourth quarterFourth quarter revenue declined by US$3.5 million, or 1.7%. In the mass market channel, sales declined in the low single digits. In the IBD channel, sales were down less than 1% year-over-year as there was a shift of some orders from the fourth quarter to the preceding third quarter. Despite the revenue decline, gross margin dollars were consistent with the prior year. Operating profit for the quarter increased by US$1.0 million as operating expenses were lower in 2011, mostly due to the timing of a promotional campaign in the fourth quarter of 2010 that did not re-occur in 2011.Full yearThe revenue increase of 11.2% to US$861.8 million was due mainly to a sales improvement of over 25% in the IBD distribution channel. This growth was driven by new products that were exceptionally well received by the market place. Sales also benefited from strong marketing, improvements in supply chain and distribution, and enhanced dealer support. Cycling Sports Group (CSG) sales were up in all markets, with most of the growth outside North America, which comprises over 50% of CSG revenue. Sales of Pacific Cycle products, servicing the mass merchant and sporting goods channels, were relatively flat with the prior year.Supporting the revenue and gross margin dollar increase in the year was enhanced spending in selling and marketing and as a result, selling expenses increased in the year. Despite the increase, both selling and general and administrative expenses declined in 2011 by a combined 30 basis points. Earnings were also affected by a decline in profitability of approximately US$3 million at the segment's apparel division which markets the SUGOI brand. The decrease was due mainly to a write-down of excess inventory from prior model years and costs of US$1.8 million related to the strategic decision to outsource the "custom manufacturing" business to a third party.Home Furnishings Segment      Fourth Quarters Ended December 30 20112010  $% ofrev.$% ofrev.Change%Total revenue119,666 97,427 22.8%Gross profit17,09114.3%11,84512.2%44.3%Operating profit8,4867.1%5,5635.7%52.5%            For the years Ended December 30 20112010  $% ofrev.$% ofrev.Change%Total revenue522,278 507,790 2.9%Gross profit65,58912.6%69,08313.6%-5.1%Operating profit29,2515.6%34,5876.8%-15.4%Fourth quarter Revenue in the fourth quarter recovered markedly year-over-year, increasing 22.8% to US$119.7 million. In the prior year, the comparable quarter of 2010 was particularly affected by a slowdown at retail and as a result customer replenishment orders were reduced. With the improved retail furniture environment in the US, customers once again gravitated toward Dorel's home furnishings product lines. The period's increase was driven by higher sales of imported furniture items and particularly strong sales to the Internet retail channel. Operating profit was driven by higher gross margin dollars on increased sales, lower freight rates, reduced warehousing costs made possible by significant inventory level reductions and the fact that in 2010, fixed overhead absorption was reduced due to the lower sales volumes.Full yearRevenues were up 2.9%, reaching US$522.3 million compared to US$507.8 million the prior year. Within the segment, the mix of sales did vary from the prior year. Sales at Cosco Home & Office decreased due to the decision to exit unprofitable product SKUs as it became strategically advantageous to no longer sell these items. More than offsetting this was strong sales growth of imported furniture items in principally the categories of futons, mattresses, bunk beds and upholstered items. Full year operating profit declined in 2011 as gross margins were lower on higher input costs and less favourable exchange rates.Other2011 results include an income amount of US$12.2 million, of which $US11.1 million was recorded in the fourth quarter and which is recorded as an income in general and administrative expenses within the corporate results. This amount, which is non-taxable, was due to a change of assumptions on contingent consideration and put option liabilities related to certain past business acquisitions. In particular, the contingent consideration and put option liabilities with regards to Dorel Brazil, IGC (Australia) and Hot Wheels (CSG U.K.) have been reduced based on lower estimated future earnings when the financial liabilities will be resolved. These amounts have been recorded as a reduction of other financial liabilities on the statement of financial position.The contingent consideration and put option liabilities established at the outset are recorded at net present value. With the passage of time, to increase the liability to the amount assumed to be eventually paid, an amount is recorded in finance expenses. As a result of these new reduced liabilities, the finance expenses pertaining to these above entities will be approximately US$1.2 million lower annually going forward.For the year, cash flow provided by operating activities more than doubled to US$162.5 million. This compares to US$78.9 million recorded in 2010, an increase of US$83.6 million. Free cash flow, a non-GAAP financial measure defined as cash flow from operating activities less capital expenditures, share repurchases and dividend payments, was US$77.4 million for the year. This compares to negative US$10.3 million in the prior year. This was despite lower year-over-year after-tax earnings of US$23.1 million and was principally due to improved working capital management driven by inventory reductions.As has been stated in the past, the Company estimates the appropriate level of inventory to support the business to be from US$450 million to US$470 million. As a result of management's focus on right sizing inventory levels, the balance as at December 30, 2011 was US$442.4 million. This inventory reduction alone generated cash flow of US$81.4 million in the year.In 2011 the Company's effective tax rate was 8.1% as compared to 9.8% in 2010.Outlook"In Juvenile in particular, we are challenged by declining birth rates and fragile economies in most of the Company's markets. However, throughout the year we continued to focus on the long term, as evidenced by aggressively broadening our market through acquisitions such as Dorel Chile in South America and Poltrade in Eastern Europe, and in focusing on markets such as the specialist channel in the U.S. and the fast growing Internet retail channel. In Juvenile we did see an improvement in the fourth quarter over the third, an indication of an improving outlook. Sales thus far in 2012 are slightly ahead of 2011", stated Mr. Schwartz."We expect South America to become an important contributor to earnings with the establishment of Dorel Chile late in the year and improvements are expected in Brazil. For the Juvenile segment as a whole, we are concerned about the cost environment, as evidenced by recent increases in oil prices affecting resin, transportation costs and other key inputs of our juvenile products, and as such remain cautious at this time about 2012."Dorel's bicycle business had another very strong year, significantly improving on 2010's positive results. We are confident this is sustainable and that the Recreational / Leisure segment will continue to deliver growth. To help ensure this, we will continue to invest in research and development and promote our brands through new innovative marketing throughout the world, and thus further penetrate our markets. In Home Furnishings, we are cautiously optimistic. The year ended on a strong note and 2012 has started well. Sales and POS levels at major customers for the first two months were up from prior year."By most measures 2011 was not an acceptable year for Dorel. While others may have cut back to help short-term earnings at the expense of long term gain, we did not. We were able to focus on long-term objectives and expanded our global reach, improved our products and supported our brands. We were also able to generate good cash flow, allowing us to make these investments. This long term vision will help us in 2012 and we anticipate improved earnings from our operations," concluded Mr. Schwartz.Conference CallDorel Industries Inc. will hold a conference call to discuss these results today, March 8, 2012 at 1:00 P.M. Eastern Time. Interested parties can join the call by dialling 1-800-731-5319. 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 tape recording of the meeting by calling 1-877-289-8525 and entering the passcode 4506003# on your phone. This tape recording will be available on Thursday, March 8, 2012 as of 4:00 P.M. until 11:59 P.M. on Thursday, March 15, 2012.Complete financial statements will be available on the Company's website, www.dorel.com, and will be available through the SEDAR website.ProfileDorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle company. Now in its 50th year, 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 1st, 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 over US$2.3 billion and employs 5,000 people in facilities located in twenty-two countries worldwide.Caution Regarding Forward Looking StatementsCertain 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 POSITIONALL FIGURES IN THOUSANDS OF US $       as at as at December 30,2011  December 30,2010 (unaudited) (unaudited)      ASSETS     CURRENT ASSETS      Cash and cash equivalents$29,764 $15,748 Trade and other receivables 403,664  356,507 Inventories 442,409  510,068 Other financial assets 9,867  2,554 Income taxes receivable 17,811  14,096 Prepaid expenses 21,858  17,823  925,373  916,796      NON-CURRENT ASSETS      Property, plant and equipment 158,363  158,752 Intangible assets 411,171  396,354 Goodwill 568,849  554,528 Deferred tax assets 31,096  24,046 Other assets 1,717  2,215  1,171,196  1,135,895 $2,096,569 $2,052,691      LIABILITIES     CURRENT LIABILITIES      Bank indebtedness$20,130 $30,515 Trade and other payables 323,552  323,588 Other financial liabilities 13,065  4,203 Income taxes payable 2,315  13,154 Long-term debt 17,279  10,667 Provisions 37,096  43,232  413,437  425,359      NON-CURRENT LIABILITIES      Long-term debt 298,160  319,281 Pension & post-retirement benefit obligations 35,258  32,056 Deferred tax liabilities 79,702  68,145 Provisions 1,876  1,780 Other financial liabilites 33,141  31,253 Other long-term liabilities 5,340  2,966  453,477  455,481      EQUITY     SHARE CAPITAL 174,782  178,816CONTRIBUTED SURPLUS 26,445  23,776ACCUMULATED OTHER COMPREHENSIVE INCOME 58,842  66,938RETAINED EARNINGS 969,586  902,321  1,229,655  1,171,851 $2,096,569 $2,052,691 DOREL INDUSTRIES INC.CONSOLIDATED INCOME STATEMENTSALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS             Fourth Quarters Ended Twelve Months Ended December 30,2011 December 30,2010 December 30,2011 December 30,2010 (unaudited) (unaudited) (unaudited) (unaudited)            Sales$558,031 $536,194 $2,352,250 $2,301,393Licensing and commission income 3,577  3,329  11,979  11,593TOTAL REVENUE 561,608  539,523  2,364,229  2,312,986            Cost of sales 434,434  417,985  1,846,470  1,778,938GROSS PROFIT 127,174  121,538  517,759  534,048                        Selling expenses 45,165  47,470  185,868  176,292General and administrative expenses  35,426  39,517  164,207  167,338Research and development expenses 9,849  8,427  32,227  29,850OPERATING PROFIT 36,734  26,124  135,457  160,568            Finance expenses 5,413  5,881  21,659  18,927INCOME BEFORE INCOME TAXES 31,321  20,243  113,798  141,641            Income taxes expense 3,959  (5,704)  9,205  13,914NET INCOME$27,362 $25,947 $104,593 $127,727            EARNINGS PER SHARE            Basic$0.85 $0.79 $3.22 $3.89 Diluted$0.85 $0.79 $3.21 $3.85            SHARES OUTSTANDING            Basic - weighted average 32,034,721  32,701,316  32,456,275  32,855,191 Diluted - weighted average 32,130,001  33,038,961  32,621,583  33,218,267                        DOREL INDUSTRIES INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEALL FIGURES IN THOUSANDS OF US $             Fourth Quarters Ended Twelve Months Ended December 30,2011 December 30,2010 December 30,2011 December 30,2010 (unaudited) (unaudited) (unaudited) (unaudited)            NET INCOME$27,362 $25,947 $104,593 $127,727            OTHER COMPREHENSIVE INCOME (LOSS):           Cumulative translation account:           Net change in unrealized foreign currency gains (losses) on translationof net investments in foreign operations, net of tax of nil (14,653)  (5,192)  (15,210)  (28,870)                        Net changes in cash flow hedges:           Net change in unrealized gains (losses) on derivatives designatedas cash flow hedges (7,980)  3,558  3,866  (4,415)Reclassification to income 284  244  1,027  968Reclassification to the related non financial asset 10,524  1,270  4,826  (320)Deferred income taxes (870)  (1,589)  (2,605)  1,840  1,958  3,483  7,114  (1,927)            Defined benefit plans:           Actuarial gains (losses) on defined benefit plans (8,152)  (887)  (8,158)  (3,613)Deferred income taxes 3,318  320  3,234  1,301  (4,834)  (567)  (4,924)  (2,312)            TOTAL OTHER COMPREHENSIVE LOSS (17,529)  (2,276)  (13,020)  (33,109)            TOTAL COMPREHENSIVE INCOME$9,833 $23,671 $91,573 $94,618DOREL INDUSTRIES INC.CONSOLIDATED STATEMENTS OF CHANGES IN EQUITYALL FIGURES IN THOUSANDS OF US $              Attributable to equity holdersof theCompany Share CapitalContributed SurplusCumulativeTranslationAccountCash Flow Hedges*Retained EarningsTotal Equity (unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)             Balance as at December 31, 2009$174,816$20,311$96,840$895$809,976$1,102,838             Total comprehensive income (loss) - - (28,870) (1,927) 127,727 96,930Defined Benefit Plans actuarial gains and losses, net of tax - - - - (2,312) (2,312)Issued under stock option plan 5,755 - - - - 5,755Reclassification from contributed surplus due to exerciseof stock options 1,402 (1,402) - - - -Repurchase and cancellation of shares (3,157) -  - - - (3,157)Premium paid on share repurchase - -  - - (14,120) (14,120)Share-based payments - 4,812 - - -  4,812Dividends on common shares - - - - (18,895) (18,895)Dividends on deferred share units - 55 - - (55) -             Balance as at December 30, 2010$178,816$23,776$67,970$(1,032)$902,321 $ 1,171,851             Total comprehensive income (loss) - - (15,210) 7,114 104,593 96,497Defined Benefit Plans actuarial gains and losses, net of tax - - - - (4,924) (4,924)Issued under stock option plan 429 - - - - 429Reclassification from contributed surplus due to exerciseof 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 - - - 2,686Dividends 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             *Accumulated other comprehensive income            DOREL INDUSTRIES INC.CONSOLIDATED STATEMENTS OF CASH FLOWSALL FIGURES IN THOUSANDS OF US $             Fourth Quarters Ended   Twelve Months Ended December 30,2011 December 30,2010 December 30,2011 December 30,2010 (unaudited) (unaudited) (unaudited) (unaudited)            CASH PROVIDED BY (USED IN):                       OPERATING ACTIVITIES           Net income$27,362 $25,947 $104,593 $127,727Items not involving cash:            Depreciation and amortization 12,160  12,953  53,865  51,186 Amortization of deferred financing costs 156  133  532  324 Impairment losses of goodwill 1,372  -  1,372  - Accretion expense on contingent consideration and put option liabilities 599  846  2,209  2,571 Change of assumptions on contingent consideration and put option liabilities (11,131)  (112)  (12,217)  (112) Unrealized (gains) losses due to foreign exchange exposure on contingentconsideration and put option liabilities 259  148  (808)  467 Other finance expenses 4,283  4,711  18,919  16,032 Income taxes expense 3,959  (5,704)  9,205  13,914 Share-based payments 526  1,103  2,467  4,475 Pension and post-retirement defined benefit plans (3,989)  586  (1,473)  2,939 Loss on disposal of property, plant and equipment 880  177  854  1,070  36,436  40,788  179,518  220,593Net changes in non-cash balances related to operations:            Trade and other receivables (10,656)  (3,199)  (37,683)  (14,696) Inventories 18,419  17,435  81,433  (111,821) Prepaid expenses 12  1,821  (4,134)  (743) Trade and other payables 18,836  (38,097)  (12,114)  32,713 Pension and post-retirement benefit obligations (572)  (241)  (3,082)  (2,530) Provisions, other financial long-term liabilities and other long-term liabilities (1,185)  765  (1,876)  (58)  24,854  (21,516)  22,544  (97,135)             Income taxes paid (4,489)  (5,709)  (28,181)  (33,329) Income taxes received 6,067  (314)  7,136  3,524 Interest paid (6,239)  (6,830)  (18,540)  (14,754)            CASH PROVIDED BY OPERATING ACTIVITIES 56,629  6,419  162,477  78,899            FINANCING ACTIVITIES            Bank indebtedness (1,495)  20,236  (9,777)  28,472 Increase of long-term debt 6,268  -  -   200,000 Repayments of long-term debt -  (19,048)  (14,855)  (220,491) Repayments of contingent consideration and put option liabilities -  -  (2,431)  - Financing costs (57)  (296)  (22)  (1,968) Share repurchase (4,753)  (4,042)  (17,399)  (17,277) Issuance of share capital -  1,048  429  5,755 Dividends on common shares (4,808)  (4,918)  (19,485)  (18,895)CASH USED IN FINANCING ACTIVITIES (4,845)  (7,020)  (63,540)  (24,404)            INVESTING ACTIVITIES            Acquisition of business (36,319)  -  (36,319)  (220) Additions to property, plant and equipment (4,319)  (12,559)  (27,331)  (35,465) Additions to intangible assets (5,969)  (4,916)  (20,825)  (17,543)CASH USED IN INVESTING ACTIVITIES (46,607)  (17,475)  (84,475)  (53,228)             Effect of exchange rate changes on cash and cash equivalents (1,191)  (966)  (446)  (5,366)            NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,986  (19,042)  14,016  (4,099)            Cash and cash equivalents, beginning of period 25,778  34,790  15,748  19,847            CASH AND CASH EQUIVALENTS, END OF PERIOD$29,764 $15,748 $29,764 $15,748 DOREL INDUSTRIES INC.INDUSTRY SEGMENTED INFORMATIONFOURTH QUARTERS ENDED DECEMBER 30ALL FIGURES IN THOUSANDS OF US $                  TotalJuvenileRecreational / LeisureHome Furnishings  2011 2010 2011 2010 2011 2010 2011 2010  (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)Total revenue$561,608$539,523$239,532$236,204$202,410$205,892$119,666$97,427Cost of sales 434,434 417,985 175,859 173,002 156,000 159,401 102,575 85,582Gross profit 127,174 121,538 63,673 63,202 46,410 46,491 17,091 11,845Selling expenses 44,607 46,843 22,480 22,916 18,034 20,135 4,093 3,792General and administrative expenses 42,238 35,141 22,623 18,727 15,714 14,651 3,901 1,763Research and development expenses 9,849 8,427 8,180 6,633 1,058 1,067 611 727Operating profit 30,480 31,127$10,390$14,926$11,604$10,638$8,486$5,563Finance expenses 5,413 5,881            Corporate expenses (6,254) 5,003            Income taxes 3,959 (5,704)                             Net income$27,362$25,947                             Earnings per Share                 Basic$0.85$0.79             Diluted$0.85$0.79                             Impairment of losses of goodwill included in operating profit$1,372$-$1,372$-$-$-$-$-Depreciation and amortization included in operating profit$12,112$12,907$9,921$9,463$1,377$2,322$814$1,122 DOREL INDUSTRIES INC.INDUSTRY SEGMENTED INFORMATIONTWELVE MONTHS ENDED DECEMBER 30ALL FIGURES IN THOUSANDS OF US $                  TotalJuvenileRecreational / LeisureHome Furnishings  2011 2010 2011 2010 2011 2010 2011 2010  (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)Total revenue$2,364,229$2,312,986$980,197$1,030,209$861,754$774,987$522,278$507,790Cost of sales 1,846,470 1,778,938 733,079 748,797 656,702 591,434 456,689 438,707Gross profit 517,759 534,048 247,118 281,412 205,052 183,553 65,589 69,083Selling expenses 183,740 173,494 83,129 81,722 83,677 75,768 16,934 16,004General and administrative expenses 158,033 147,818 84,083 79,461 57,083 52,764 16,867 15,593Research and development expenses 32,227 29,850 26,055 23,759 3,635 3,192 2,537 2,899Operating profit 143,759 182,886$53,851$96,470$60,657$51,829$29,251$34,587Finance expenses 21,659 18,927            Corporate expenses 8,302 22,318            Income taxes 9,205 13,914                             Net income$104,593$127,727                             Earnings per Share                 Basic$3.22$3.89             Diluted$3.21$3.85                             Impairment losses of goodwill included in operating profit$1,372$-$1,372$-$-$-$-$-Depreciation and amortization included in operating profit$53,683$51,022$40,376$36,361$8,251$9,465$5,056$5,196  For further information: MaisonBrison Communications Rick Leckner (514) 731-0000 Dorel Industries Inc. Jeffrey Schwartz (514) 934-3034