First Quarter Conference Call May 9, 2013 - Dorel Industries

FINAL TRANSCRIPT
May 9, 2013 – 01:00 p.m. E.T.
Dorel Industries First Quarter Results
As anticipated, 2013 has started off slower than last year. Revenue in the first quarter
decreased just over 4 per cent to 594 million; net income of 22.3 million or $0.70 per diluted share,
compared to 29 million or $0.90 per diluted share a year ago.
To say the weather through Q1 was a negative factor in the bicycle business is an
understatement. And this had a big impact on the segment's operating profit. In the US, the March‐
April period was the second coldest on record, and in Europe some regions had the coldest spring in
50 years. And clearly, we were not the only ones affected. Bicycle sales in the industry's IBD and
mass channels were down over 25 per cent in March. And again, these are industry numbers. This
was in stark contrast to a year ago, when abnormally mild weather in March drove higher POS levels
at retail.
Operating profit for the quarter in Juvenile was also lower than last year due to challenges
in the economy and consumer confidence in our more mature markets. However, controlled
spending and enhanced gross margins eased the impact on earnings.
Latin America as a whole recorded increased profits as Dorel Chile's revenues grew
substantially and Dorel Brazil had its best operating results since 2010.
Home Furnishing had one of its best quarters since 2011 with the earnings up substantially
and the continued growth of online sales, where we are a leader.
Now for some insight in our three segments. And Jeffrey will detail the numbers shortly.
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