Dorel Industries Inc. reported third-quarter revenue was $671.3 million, down 1.2 percent from $679.3 million from the corresponding quarter last year.
Adjusted net income was $20.6 million or 63 cents per diluted share, compared to adjusted net income of $15.5 million or 48 cents per diluted share a year ago. Reported net income was $15.9 million or 49 cents per diluted share, compared to a reported net loss of $8.8 million or 27 cents per diluted share last year.
For the nine months, revenue was $1.95 billion, a decrease of 3 percent compared to $2.01 billion last year. Adjusted net income increased to $54.9 million or $1.68 per diluted share, compared to adjusted net income of $43.9 million or $1.35 per diluted share a year ago. Reported net loss year to date was $6 million or 19 cents per diluted share, compared to net income of $19.1 million or 59 cents per diluted share in 2015.
The company is presenting adjusted financial information, excluding the impairment losses on goodwill and intangible assets, restructuring, other costs and re-measurement of forward purchase agreement liabilities, as it believes this provides a more meaningful comparison of its core business performance between the periods presented. The third quarter includes restructuring, other costs and losses on the re-measurement of forward purchase agreement liabilities totaling $6.4 million pre-tax or 14 cents per diluted share.
“Third quarter earnings improvements were led by on-going gains at Dorel Home Furnishings, higher gross margins at Dorel Juvenile, as well as a strong performance at Pacific Cycle and reduced bicycle industry discounting at Cycling Sports Group (CSG). In addition, the progress during the first nine months in all of our businesses has bolstered our financial position. Year-over-year nine month cash flows from operating activities improved by $93.5 million, due primarily to enhanced management of our inventory levels. This has resulted in a significant strengthening in our financial position,” commented Martin Schwartz, Dorel President and CEO.
Photo courtesy Cannondale.
