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
Jeffrey will now add a more detailed financial perspective. Jeffrey?
Jeffrey Schwartz – Executive Vice President and Chief Financial Officer, Dorel Industries
Thank you, Martin. I'm going to assume everybody's seen the press release. I'm going to
focus on the segmented results.
On Juvenile, reported revenue decline was 5.3 per cent. After removing the effects of the
Columbia acquisition in late 2012 and various foreign exchange rates year over year, the decline was
about 7 per cent. Our operating profit in the quarter was down to 17.9 million versus 20.4 million. In
Europe, the comparative quarter of 2012 was particularly strong and some timing of deliveries this
year will push sales into the second quarter. So that's … that’s part of the reason for the decline.
This, coupled with the fact that the economic conditions in Europe have not really
improved any, that resulted in our revenue decreasing by about 8 per cent in Europe. Those are the
two factors.
In the US, our operating profit increased slightly due to a more favourable revenue mix
versus the same period last year. In Latin America, strategy is definitely paying dividends, as Martin
mentioned. Revenue growth was 37 per cent in the first quarter. The growth came from opening of
more stores in Chile and Peru, the addition of Dorel Colombia, and a strong quarter from Dorel
Brazil, as it introduced more and more product lines that met with good reaction from the retailers.
The segment's gross profit increased by 170 basis points to 29.2 compared to 27.5 last
year, despite the decrease in revenue. So we're happy about that.
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