Dorel Studies Fourth Quarter and 2024 Yr-Finish Outcomes

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• Dorel Juvenile income will increase on market share positive factors
• Dorel House accelerates restructuring program to realign its enterprise

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MONTRÉAL, March 11, 2025 (GLOBE NEWSWIRE) — Dorel Industries Inc. (TSX: DII.B, DII.A) at the moment introduced outcomes for the fourth quarter and the 12 months ended December 30, 2024.

Fourth quarter income was US$326.8 million, down 6.8%, from US$350.7 million a 12 months in the past. Reported internet loss for the quarter was US$73.0 million or US$2.24 per diluted share in comparison with US$3.8 million or US$0.12 per diluted share a 12 months in the past. The reported internet loss for the quarter contains whole restructuring prices of US$14.1 million, and write-downs of deferred tax property of US$36.5 million. Adjusted internet loss¹ was US$59.2 million or US$1.82 per diluted share in comparison with an adjusted internet revenue¹ of US$0.2 million or US$0.01 per diluted share for the fourth quarter a 12 months in the past. 

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The adjusted working loss¹ for the fourth quarter of 2024 was US$8.9 million, a rise from US$2.9 million within the earlier 12 months. A major factor of the shortfall in earnings was a US$7.5 million variation in earnings within the Juvenile phase attributable to the stronger U.S. greenback within the final quarter of 2024. The House phase adjusted working loss¹ was barely increased with each of those declines partially compensated by decrease company prices.

Income for the total 12 months was US$1.38 billion, down 0.6%, from US$1.39 billion the earlier 12 months. Reported internet loss was US$172.0 million or US$5.28 per diluted share in comparison with US$62.4 million or US$1.92 per diluted share a 12 months in the past. The reported internet loss for the total 12 months contains whole restructuring prices of US$17.4 million, an impairment loss on goodwill of US$45.3 million, and write-downs of deferred tax property of US$36.5 million. Adjusted internet loss¹ for the 12 months was US$109.8 million or US$3.37 per diluted share, in comparison with US$58.4 million or US$1.79 per diluted share in 2023.

The adjusted working loss¹ for 2024 was US$28.4 million, reflecting an enchancment of US$19.3 million from the earlier 12 months. This enhancement is attributed to a stronger efficiency within the Juvenile phase and decreased company bills, whereas the adjusted working losses¹ from the House phase remained in step with the prior 12 months.

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“Dorel Juvenile has maintained its trajectory of year-over-year income development this quarter, attaining a 2.2% natural income¹ improve. Notably, Europe achieved a income improve of roughly 18% in native forex. Nonetheless, the strengthening U.S. greenback towards nearly all different main currencies negatively impacted income development and earnings. Regardless of this problem within the quarter, we continued to spend money on advertising and marketing and gross sales initiatives to construct momentum for 2025. Dorel House revenues stay considerably decrease than in earlier years, and as beforehand introduced on January 30, 2025, we’re proactively adjusting our operational footprint to realize profitability. Trying forward, Dorel House will concentrate on leveraging core competencies, strengthening retailer relationships, and driving development with revolutionary, high-margin merchandise,” acknowledged Dorel President & CEO, Martin Schwartz.

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¹ It is a non-GAAP monetary ratio or measure with no standardized which means prescribed by IFRS and subsequently is unlikely to be similar to related measures introduced by different issuers. Check with the part “Definition and reconciliation of non-GAAP monetary ratios and measures” on this press launch.

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Dorel Juvenile’s fourth-quarter income rose 0.4% to US$212.8 million in comparison with final 12 months. Adjusted for international trade price variations, natural income¹ grew by 2.2%, led by robust gross sales in Europe, Brazil, Australia, and export markets. Europe noticed double digit income development stemming from automotive seats and strollers on account of new product launches just like the 360 Professional Household automotive seats and Oxford and Fame strollers. Full-year income elevated by 4.1%, reaching US$864.1 million from US$829.8 million the earlier 12 months. The complete-year natural income¹ improve was higher than reported outcomes at 5.3%.

The appreciation of the U.S. greenback affected earnings, leading to lower-than-expected quarterly outcomes. In comparison with the earlier 12 months, the whole impression within the quarter was a rise of roughly US$7.5 million in value of gross sales. This led to decreased gross margins, with the adjusted gross margin¹ being 470 foundation factors decrease than the fourth quarter of the earlier 12 months. Gross sales in North America had been softer after a really robust third quarter which pulled earnings ahead, leading to decrease earnings within the quarter in comparison with prior 12 months. This and continued challenges in Chile accounted for many of the remaining lower in earnings versus the prior 12 months.

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Fourth quarter working revenue was US$1.6 million, in comparison with US$11.3 million in the identical interval final 12 months. Excluding restructuring prices, adjusted working revenue¹ was US$2.4 million, in comparison with US$12.9 million within the fourth quarter of the earlier 12 months. The decline in adjusted working revenue¹ is primarily as a result of unfavourable international trade price impression. Full-year working revenue was US$15.6 million in comparison with US$6.4 million in 2023. Adjusted working revenue¹ for the 12 months was US$18.3 million, in comparison with US$8.0 million final 12 months.

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Income for the fourth quarter was US$114.0 million, a lower of US$24.6 million, or 17.8%, from US$138.6 million final 12 months. Most product classes skilled declines, though gross sales of indoor seating, TV stands, and step stools elevated. Brick-and-mortar gross sales proceed to be a spotlight space and, whereas barely down in comparison with the earlier 12 months, this channel is predicted to drive development shifting ahead. For the total 12 months, income was US$516.2 million, a lower of US$42.8 million, or 7.7%, with e-commerce gross sales accounting for almost all of the decline.

Adjusted gross margin¹ for the fourth quarter decreased by 310 foundation factors in comparison with the earlier 12 months, primarily on account of elevated promotional pricing and decrease quantity effectivity and manufacturing ranges on the Firm’s ready-to-assemble (RTA) plant. The modifications applied to scale back the manufacturing RTA footprint in 2024 didn’t impression margins positively within the quarter however are anticipated to take action sooner or later. Inventories decreased by US$79.7 million from the tip of 2023 because the Firm decreased new purchases and drew down current stock according to the realignment efforts of the enterprise. Decrease working bills, which decreased by US$2.8 million, or 17.2%, to US$13.5 million partially offset the discount in gross revenue {dollars}.

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Fourth quarter working loss was US$25.0 million in comparison with US$12.8 million final 12 months. After excluding important restructuring prices within the quarter, adjusted working loss¹ for the quarter was US$11.7 million versus US$9.8 million a 12 months in the past. For the total 12 months, the working loss was US$95.3 million, in comparison with US$40.2 million a 12 months in the past. Adjusted working loss¹ for the total 12 months was US$35.4 million, in comparison with US$37.3 million in 2023. 

As beforehand introduced in January 2025, Dorel House undertook important restructuring efforts, together with a workforce discount primarily impacting promoting and administrative capabilities and the announcement of the closure of the Montreal manufacturing facility. These actions resulted in mixed restructuring expenses of roughly US$13.3 million within the quarter. The Firm additionally made appreciable progress in consolidating operations right into a single facility following the closure of the Tiffin, Ohio RTA manufacturing facility. Gear transfers and facility upgrades at Cornwall, Ontario have been principally accomplished, and administration enhancements have been applied.

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Financing Replace

It was introduced on February 21, 2025 that the Firm had entered right into a sale-leaseback transaction for its manufacturing unit and warehousing facility in Columbus, Indiana. The gross proceeds from the sale had been US$30.0 million, of which roughly US$8.0 million was allotted to scale back current debt, with the steadiness designated for funding the Firm’s ongoing operations. This transaction is a part of the Firm’s initiative to finance the expansion of its Juvenile phase and the turnaround of its House phase, as introduced on January 30, 2025. The Firm is actively engaged on further alternatives to additional improve its monetary place.

Outlook

“As we transfer into 2025, Dorel Juvenile is poised for continued development and success. Regardless of the challenges posed by international trade fluctuations, we stay dedicated to our marketing strategy centred round revolutionary new merchandise, model constructing, digital excellence and excellent buyer relationships. It will proceed to drive market share positive factors and enlargement efforts and improve our aggressive place. With a concentrate on enhancing profitability in underperforming areas, now we have made administration modifications in Chile and we count on higher efficiency going ahead. We’re assured within the Juvenile phase’s capability to realize sustainable development and create lasting worth for our stakeholders,” commented Dorel President & CEO, Martin Schwartz.

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“Dorel House is making progress in overcoming the challenges posed by the present market surroundings for furnishings corporations. The restructuring efforts taken are already delivering outcomes. Our capability to maneuver home manufacturing to 1 RTA manufacturing unit has improved our effectivity and lowered manufacturing prices. We now have decreased our workforce and our success on reducing inventories means we will probably be exiting certainly one of our warehouse leases on the finish of the primary quarter, with the steadiness of our footprint discount scheduled for close to finish of 12 months. Moreover, we’ll proceed to innovate and introduce new merchandise, prioritizing increased margin objects and profitable licensed manufacturers to develop with our omni channel retail clients and develop our market presence in Europe. With a leaner, gifted and extra agile group, we’re assured in our capability to capitalize on market alternatives and count on to return to profitability by finish of 12 months,” commented Mr. Schwartz.

“As a Firm with a considerable footprint in the US, we’re not immune from the potential enterprise impression of import tariffs throughout the varied jurisdictions wherein we function. As a result of unknowns at the moment, it’s troublesome to evaluate the potential impression on our provide chain, product costing, retail worth factors and in the end on our shopper. Our general publicity to this threat is much less acute within the Juvenile phase than within the House phase given our home manufacturing facility in Columbus, Indiana and our international footprint. We even have robust provider relationships in each segments with our abroad suppliers and we consider we’re properly positioned relative to our rivals to efficiently navigate the challenges tariffs might pose,” concluded Mr. Schwartz.

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Convention Name

Dorel Industries Inc. will maintain a convention name to debate these outcomes on Wednesday, March 12, 2025 at 11:00 AM Jap Time. events can be part of the decision by dialing 1-844-763-8274. The convention name can be accessed by way of dwell webcast at http://www.dorel.com. In case you are unable to name in at the moment, chances are you’ll entry a recording of the assembly by calling 1-855-669-9658 and coming into the passcode 9621162 in your telephone. This recording will probably be out there on Wednesday, March 12, 2025 as of two:30 PM till 11:59 PM on Wednesday, March 19, 2025.

Consolidated monetary statements as at December 30, 2024 will probably be out there on the Firm’s web site, www.dorel.com, and will probably be out there via the SEDAR+ web site.

Profile

Dorel Industries Inc. (TSX: DII.B, DII.A) is a world group, working two distinct companies in juvenile merchandise and residential merchandise. Dorel’s power lies within the range, innovation and high quality of its merchandise in addition to the prevalence of its manufacturers. Dorel Juvenile’s powerfully branded merchandise embrace international manufacturers Maxi-Cosi, Security 1st and Tiny Love, complemented by regional manufacturers comparable to BebeConfort, Cosco, Mom’s Alternative and Infanti. Dorel House, with its complete e-commerce platform, markets a large assortment of domestically produced and imported furnishings. Dorel has annual gross sales of US$1.4 billion and employs roughly 3,600 individuals in amenities situated in twenty-two nations worldwide.

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Warning Relating to Ahead-Trying Statements

Sure statements included on this press launch could represent “forward-looking statements” throughout the which means of relevant Canadian securities laws. Besides as could also be required by Canadian securities legal guidelines, the Firm doesn’t undertake any obligation to replace or revise any forward-looking statements, whether or not on account of new info, future occasions or in any other case. Ahead-looking statements, by their very nature, are topic to quite a few dangers and uncertainties, together with statements concerning the impression of the macro-economic surroundings, together with inflationary pressures, modifications in shopper spending, trade price fluctuations, the doable imposition of tariffs, and will increase in rates of interest on the Firm’s enterprise, monetary place and operations, and are based mostly on a number of assumptions which give rise to the chance that precise outcomes might differ materially from the Firm’s expectations expressed in or implied by such forward-looking statements and that the aims, plans, strategic priorities and enterprise outlook is probably not achieved. Because of this, the Firm can’t assure that any forward-looking assertion will materialize, or if any of them do, what advantages the Firm will derive from them. Ahead-looking statements are offered on this press launch for the aim of giving details about administration’s present expectations and plans and permitting traders and others to get a greater understanding of the Firm’s working surroundings. Nonetheless, readers are cautioned that it is probably not acceptable to make use of such forward-looking statements for another objective.

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Ahead-looking statements made on this press launch are based mostly on a variety of assumptions that the Firm believed had been cheap on the day it made the forward-looking statements. Components that might trigger precise outcomes to vary materially from the Firm’s expectations expressed in or implied by the forward-looking statements embrace:

• normal financial and monetary situations, together with these ensuing from the present excessive inflationary surroundings;
• modifications in relevant legal guidelines or laws;
• modifications in product prices and provide channels, together with disruption of the Firm’s provide chain ensuing from the macro-economic surroundings;
• international forex fluctuations, together with excessive ranges of volatility in foreign currency echange with respect to the US greenback reflecting uncertainties associated to the macro-economic surroundings;
• doable imposition of tariffs on items imported into the US;
• buyer and credit score threat, together with the focus of revenues with a small variety of clients;
• prices related to product legal responsibility;
• modifications in revenue tax laws or the interpretation or utility of these guidelines;
• the continued capability to develop merchandise and assist model names;
• modifications within the regulatory surroundings;
• outbreak of public well being crises, such because the COVID-19 pandemic, that might adversely have an effect on international economies and monetary markets, leading to an financial downturn which could possibly be for a chronic time frame and have a fabric hostile impact on the demand for the Firm’s merchandise and on its enterprise, monetary situation and outcomes of operations;
• the impact of worldwide conflicts on the Firm’s gross sales, together with the continued Russia-Ukraine conflict and a doable resumption of the Israeli-Hamas conflict;
• continued entry to capital sources, together with compliance by the Firm with all the covenants beneath its ABL facility and time period mortgage facility, and the associated prices of borrowing, all of which can be adversely impacted by the macro-economic surroundings;
• failures associated to info know-how methods;
• modifications in assumptions within the valuation of goodwill and different intangible property and any future decline in market capitalization;
• there being no certainty that the Firm will declare any dividend sooner or later;
• elevated publicity to cybersecurity dangers on account of distant work by the Firm’s staff;
• the Firm’s capability to guard its present and future applied sciences and merchandise and to defend its mental property rights;
• potential harm to the Firm’s status; and
• the impact of local weather change on the Firm.

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These and different threat elements that might trigger precise outcomes to vary materially from expectations expressed in or implied by the forward-looking statements are mentioned within the Firm’s annual MD&A and Annual Info Type filed with the relevant Canadian securities regulatory authorities. The danger elements set out within the beforehand talked about paperwork are expressly integrated by reference herein of their entirety.

The Firm cautions readers that the dangers described above aren’t the one ones that might impression it. Further dangers and uncertainties not at the moment identified to the Firm or that the Firm at the moment deems to be immaterial may have a fabric hostile impact on the Firm’s enterprise, monetary situation, or outcomes of operations. Given these dangers and uncertainties, traders shouldn’t place undue reliance on forward-looking statements as a prediction of precise outcomes.

All figures within the tables under are in 1000’s of US $, besides per share quantities.

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Definition and Reconciliation of Non-GAAP Monetary Ratios and Measures

Dorel presents on this press launch sure non-GAAP monetary ratios and measures, as described under. These non-GAAP monetary ratios and measures would not have a standardized which means prescribed by IFRS and subsequently are unlikely to be similar to related measures introduced by different issuers. These non-GAAP monetary ratios and measures shouldn’t be thought-about in isolation or as an alternative choice to a measure ready in accordance with IFRS. Contained inside this press launch are reconciliations of the non-GAAP monetary ratios and measures to probably the most straight comparable monetary measures calculated in accordance with IFRS.

Dorel believes that the non-GAAP monetary ratios and measures used on this press launch present traders with further info to research its outcomes and to measure its monetary efficiency by excluding the variation attributable to sure objects that Dorel believes don’t replicate its core enterprise efficiency and offers higher comparability between the intervals introduced. Excluding these things doesn’t indicate they’re essentially non-recurring. The non-GAAP monetary measures are additionally utilized by administration to evaluate Dorel’s monetary efficiency and to make working and strategic selections.

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Changes to non-GAAP monetary ratios and measures
As famous above, sure of our non-GAAP monetary measures and ratios exclude the variation attributable to sure changes that have an effect on the comparability of Dorel’s monetary outcomes and will doubtlessly distort the evaluation of developments in its enterprise efficiency. Changes which impression multiple non-GAAP monetary ratio and measure are defined under.

Restructuring prices
Restructuring prices are comprised of prices straight associated to important exit actions, together with the sale of producing amenities, closure of companies, reorganization, optimization, transformation, and consolidation to enhance the aggressive place of the Firm within the market and to scale back prices and produce efficiencies, and acquisition-related prices in reference to enterprise acquisitions. Restructuring prices are included as an adjustment of adjusted gross revenue, adjusted gross margin, adjusted working revenue (loss), adjusted internet revenue (loss) and adjusted diluted earnings (loss) per share. Restructuring prices had been respectively US$14.1 million and US$17.4 million for the fourth quarter and 12 months ended December 30, 2024 (2023 – US$4.5 million and US$4.5 million). Check with the part “Impairment loss on goodwill and restructuring prices” within the MD&A for extra particulars.

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Impairment loss on goodwill
Impairment loss on goodwill is included as an adjustment of adjusted working revenue (loss), adjusted internet revenue (loss) and adjusted diluted earnings (loss) per share. Impairment loss on goodwill was respectively nil and US$45.3 million for the fourth quarter and 12 months ended December 30, 2024 (none in 2023). Check with the part “Impairment loss on goodwill and restructuring prices” within the MD&A for extra particulars.

Adjusted gross revenue and adjusted gross margin
Adjusted gross revenue is calculated as gross revenue excluding the impression of restructuring prices. Adjusted gross margin is a non-GAAP ratio and is calculated as adjusted gross revenue divided by income. Dorel makes use of adjusted gross revenue and adjusted gross margin to measure its efficiency from one interval to the subsequent, with out the variation attributable to the impacts of the objects described above. Dorel additionally makes use of adjusted gross revenue and adjusted gross margin on a phase foundation to measure its efficiency on the phase stage. Dorel excludes this merchandise as a result of it impacts the comparability of its monetary outcomes and will doubtlessly distort the evaluation of developments in its enterprise efficiency. Sure traders and analysts use the adjusted gross revenue and adjusted gross margin to measure the enterprise efficiency of the Firm as a complete and on the phase stage from one interval to the subsequent, with out the variation attributable to the impression of the restructuring prices. Excluding this merchandise doesn’t indicate it’s essentially non-recurring. These ratios and measures would not have any standardized meanings prescribed by IFRS and are subsequently unlikely to be similar to an identical measure introduced by different corporations.

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Adjusted working revenue (loss)
Adjusted working revenue (loss) is calculated as working revenue (loss) excluding the impression of restructuring prices. Adjusted working revenue (loss) additionally excludes impairment loss on goodwill. Administration makes use of adjusted working revenue (loss) to measure its efficiency from one interval to the subsequent, with out the variation attributable to the impression of the objects described above. Dorel additionally makes use of adjusted working revenue (loss) on a phase foundation to measure its efficiency on the phase stage. Dorel excludes these things as a result of they have an effect on the comparability of its monetary outcomes and will doubtlessly distort the evaluation of developments in its enterprise efficiency. Sure traders and analysts use the adjusted working revenue (loss) to measure the enterprise efficiency of the Firm as a complete and on the phase stage from one interval to the subsequent, with out the variation attributable to the impression of the restructuring prices and impairment loss on goodwill. Excluding these things doesn’t indicate they’re essentially non-recurring. This measure doesn’t have any standardized which means prescribed by IFRS and is subsequently unlikely to be similar to an identical measure introduced by different corporations.

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Adjusted internet revenue (loss) and adjusted diluted earnings (loss) per share
Adjusted internet revenue (loss) is calculated as internet revenue (loss) excluding the impression of restructuring prices and impairment loss on goodwill, in addition to revenue taxes expense (restoration) referring to the changes above. Adjusted diluted earnings (loss) per share is a non-GAAP ratio and is calculated as adjusted internet revenue (loss) divided by the weighted common variety of diluted shares. Administration makes use of adjusted internet revenue (loss) and adjusted diluted earnings (loss) per share to measure its efficiency from one interval to the subsequent, with out the variation attributable to the impacts of the objects described above. Dorel excludes these things as a result of they have an effect on the comparability of its monetary outcomes and will doubtlessly distort the evaluation of developments in its enterprise efficiency. Sure traders and analysts use the adjusted internet revenue (loss) and adjusted diluted earnings (loss) per share to measure the enterprise efficiency of the Firm from one interval to the subsequent. Excluding these things doesn’t indicate they’re essentially non-recurring. These measures would not have any standardized meanings prescribed by IFRS and are subsequently unlikely to be similar to an identical measure introduced by different corporations.

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Natural income development (decline) and adjusted natural income development (decline)
Natural income development (decline) is calculated as income development (decline) in comparison with the earlier interval, excluding the impression of various international trade charges. Adjusted natural income development (decline) is calculated as income development (decline) in comparison with the earlier interval, excluding the impression of various international trade charges and the impression of the acquired companies for the primary 12 months of operation and the sale of divisions. Administration makes use of natural income development (decline) and adjusted natural income development (decline) to measure its efficiency from one interval to the subsequent, with out the variation attributable to the impacts of the objects described above. Dorel excludes these things as a result of they have an effect on the comparability of its monetary outcomes and will doubtlessly distort the evaluation of developments in its enterprise efficiency. Sure traders and analysts use natural income development (decline) and adjusted natural income development (decline) to measure the enterprise efficiency of the Firm as a complete and on the phase stage from one interval to the subsequent. Excluding these things doesn’t indicate they’re essentially non-recurring. These measures would not have any standardized meanings prescribed by IFRS and are subsequently unlikely to be similar to an identical measure introduced by different corporations.

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CONTACTS:
Dorel Industries Inc.
John Paikopoulos
(514) 934-3034

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

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