Dorel Industries Inc. reported second-quarter revenue was $637.3 million, down 4.8 percent from $669.6 million recorded in the same period a year ago.
Adjusted net income was $14.5 million or 45 cents per diluted share, compared to adjusted net income of $16.6 million or 51 cents per diluted share last year. Reported net loss was $38.6 million or $1.19 per diluted share, compared to reported net income of $16.2 million or 50 cents per diluted share in the second quarter of 2015.
Revenue for the six months was $1.28 billion, a decrease of 3.9 percent compared to $1.34 billion last year. First-half adjusted net income increased to $34.2 million or $1.05 per diluted share, compared to adjusted net income of $28.4 million or 87 cents per diluted share a year ago. Reported net loss for the period was $21.9 million or 68 cents per diluted share, compared to net income of $27.8 million or 86 cents per diluted share in the first half of 2015.
Second-quarter reported net loss includes impairment losses on goodwill and intangible assets, restructuring and other costs and re-measurement of forward purchase agreement liabilities totaling $63.2 million pre-tax or $1.64 per diluted share. Excluding these items, pre-tax adjusted income increased by 5.5 percent for the quarter to $19 million from $18.1 million last year.
“Dorel Home Furnishings continued its consistent strong performance, further building shareholder value with sustained, strong online sales growth. Year to date, the segment has grown revenues by 7 percent, with operating profit increasing 66 percent. Dorel Juvenile’s solid operational performance, better-than-expected results in China and overall pricing reflecting current foreign exchange levels resulted in the segment’s adjusted operating profit exceeding our prior guidance for the quarter, and improved by almost 10 percent in earnings. At Dorel Sports we are making the required changes to ensure profitability, and we are encouraged as our new model bicycles are being well accepted in the market,” commented Martin Schwartz, Dorel president and CEO.
Dorel’s sports products include brands Cannondale, Schwinn, GT, Mongoose, Caloi, IronHorse, Sugoi, Pacific, Dyno, RoadMaster, PowerLite, Fabric and InStep.
Photo courtesy Cannondale
