News Press Releases

Dorel reports substantial gains for 2012 fourth quarter and full year

T.DII.A | March 6, 2013

Fourth quarter highlights:

Juvenile segment operating profit increases 79% year-over-year
Bicycle business operating profit grows 42%
Net income, excluding non-cash, non-taxable gains, increases 66%

EXCHANGES
TSX: DII.B, DII.A

MONTREAL, March 6, 2013 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A) today announced results for the fourth quarter and full year ended December 30, 2012. Revenue for the fourth quarter increased 10.9% to US$622.6 million from US$561.6 million a year ago. Net income was up 6.4% to US$29.1 million or US$0.91 per diluted share from US$27.4 million, or US$0.85 per diluted share in 2011.

Revenue for the full year reached US$2.5 billion, up 5.3% from last year's US$2.4 billion. Net income was US$108.6 million or US$3.39 per diluted share, up from US$104.6 million or US$3.21 per diluted share a year ago, increases of 3.8% and 5.6% respectively.

Net income in both 2012 and 2011 benefitted from a reduction in corporate general and administrative expenses on non-cash gains related to contingent consideration and put option liabilities in connection with prior business acquisitions. In the fourth quarter of 2012 this gain was US$2.0 million while in 2011 it amounted to US$11.1 million. For the full year, these amounts were US$3.5 million in 2012 and US$12.2 million in 2011. Excluding these non-cash, non-taxable gains, net income in the fourth quarter of 2012 was US$27.1 million versus US$16.3 million in 2011, an increase of 66%. For the full year, excluding the gain amount, net income was US$105.1 million in 2012 versus US$92.4 million in 2011, a 13.7% improvement.

"We made substantial progress through 2012, particularly in light of the lingering tough economy," said Dorel President and CEO, Martin Schwartz. "The Juvenile segment's operating profits increased due to improved earnings at Dorel Juvenile Group (DJG) USA and at Dorel Europe, even in the face of a fragile financial environment abroad. Dorel's Latin American operations were significant contributors to the segment's improved operating profit and our investments there continue to pay handsome dividends. Dorel Chile had an outstanding fourth quarter, buoyed by strong retail sales at our 70 stores. Brazil is recovering from a difficult year in 2011 and Dorel Colombia, with its first quarter as part of the Company, also delivered sound results.

"Driven by double digit growth in sales of Dorel's premium Cannondale brand, the Recreational/Leisure segment's full-year revenue surpassed US$900 million. Fourth quarter revenue increased markedly due to the ability to ship more product and strong sales of electric ride-on toys. We have proven we can do a good job in the bike business and the growth trend we have established during the last couple of years clearly underlines this. Home Furnishings, as expected, experienced slightly lower margins, reducing operating profits in that segment," concluded Mr. Schwartz.


Summary of Financial Highlights
Fourth Quarters Ended December 30
All figures in thousands of US $, except per share amounts
		2012	2011	Change %
Total revenue		622,604	561,608	10.9%
Net income		29,119	27,362	6.4%
	Per share - Basic	0.92	0.85	8.2%
	Per share - Diluted	0.91	0.85	7.1%
Average number of shares outstanding - diluted weighted average		31,963,942	32,130,001



Summary of Financial Highlights
For the years Ended December 30
All figures in thousands of US $, except per share amounts
		2012	2011	Change %
Total revenue		2,490,710	2,364,229	5.3%
Net income		108,613	104,593	3.8%
	Per share - Basic	3.43	3.22	6.5%
	Per share - Diluted	3.39	3.21	5.6%
Average number of shares outstanding - diluted weighted average		32,039,861	32,621,583

Juvenile Segment


Fourth Quarters Ended December 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	267,359		239,532		11.6%
Gross profit	74,820	28.0%	63,673	26.6%	17.5%
Operating profit	18,641	7.0%	10,390	4.3%	79.4%


For the years Ended December 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	1,040,765		980,197		6.2%
Gross profit	287,658	27.6%	247,118	25.2%	16.4%
Operating profit	73,313	7.0%	53,851	5.5%	36.1%

Fourth quarter
The fourth quarter revenue increase of 11.6% includes two additional months of sales at Dorel Chile, acquired in December 2011 and the results for Colombia / Panama, acquired at the beginning of the fourth quarter of 2012. Excluding these additions and the impact of foreign exchange, the organic revenue increase was approximately 2%. The operating profit improvement of 79.4% versus 2011 was driven principally by the contribution of the segment's Latin American units. This includes an improved performance at Dorel Brazil, as well as a strong quarter for Dorel Chile.

Full year
Full year revenues increased from 2011 by US$60.6 million or 6.2%. This was the result of acquisitions and the impact of foreign exchange. Year-over-year operating profit increased significantly with a 36% improvement. In addition, the segment's U.S. and European businesses both posted improved earnings, benefitting from a more stable cost environment in 2012.

Recreational / Leisure Segment


Fourth Quarters Ended December 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	226,640		202,410		12.0%
Gross profit	56,519	24.9%	46,410	22.9%	21.8%
Operating profit	16,456	7.3%	11,604	5.7%	41.8%


For the years Ended December 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	928,422		861,754		7.7%
Gross profit	233,437	25.1%	205,052	23.8%	13.8%
Operating profit	71,958	7.8%	60,657	7.0%	18.6%

Fourth quarter
Fourth quarter revenues increased approximately 12%, with all of the growth being organic. The Independent Bicycle Dealer (IBD) channel drove the increase with strong pre-season sales of model year 2013 bicycles. Improved mix and cost containment were the principal reasons for the increase in operating profit of 41.8%. The continuing turnaround at SUGOI resulted in a modestly profitable quarter, a sharp reversal from the loss during the fourth quarter a year ago.

Full year
Revenues rose 7.7% to US$928.4 million compared to US$861.8 million a year ago. After removing the impact of foreign exchange, organic sales increased approximately 10%, marking the second consecutive year of 10% organic growth. The gain was in both the IBD and the mass merchant distribution channels, driven by new products and strong marketing of the segment's brands. The operating profit increase of 18.6% was driven by a focus on increased sales and gross margin expansion. To support this growth, the segment continues to invest in marketing and infrastructure to support the objectives of building this segment into the premier bicycle company in the market.

The growth in the IBD channel was in the majority of its markets. In the mass channel, bicycle sales were complemented by strong growth in the electric ride-on category.

Home Furnishings Segment


Fourth Quarters Ended December 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	128,605		119,666		7.5%
Gross profit	15,064	11.7%	17,091	14.3%	-11.9%
Operating profit	7,295	5.7%	8,486	7.1%	-14.0%


For the years Ended December 30
	2012		2011
	$	% of rev.	$	% of rev.	Change %
Total revenue	521,523		522,278		-0.1%
Gross profit	62,552	12.0%	65,589	12.6%	-4.6%
Operating profit	25,593	4.9%	29,251	5.6%	-12.5%

Fourth quarter
Fourth quarter revenues increased by 7.5% due to higher sales of imported furniture items, mattresses and futons. The sales growth continues to be driven by growing sales to the Internet channel. Operating profit declined as the result of higher overhead costs and a less profitable sales mix at certain of the segment's divisions.

Full year
Revenues for the year were basically flat at US$521.5 million. As in the prior year, sales decreases of metal folding furniture were offset by the sales growth of imported furniture, principally in the futon, mattress, bunk bed and upholstered item categories. Operating profit decreased by 12.5% as gross margins declined. While the segment did benefit from more stable input costs in 2012 versus 2011, this was offset by a less profitable mix of sales. The Canadian dollar remained strong against its U.S. counterpart which pressures margins as two of the segment's plants are based in Canada and ship the majority of their products to the U.S.

Other
In 2012 the Company's effective tax rate was 16.3% as compared to 8.1% in 2011. An income tax recovery of US$6.8 million was recorded in 2011 due to the realization of a tax benefit in the Netherlands where the Juvenile segment's product research and development (R&D) program qualified for the Dutch government's "Innovation Box" program. Excluding this benefit the tax rate in 2011 would have been 14.1%, more in line with the 2012 results.

Statement of Financial Position and Cash flow
Compared to December 30, 2011 levels, the most significant variation on the Company's Statement of Financial Position was the increase in inventory from US$442.4 million at year end 2011 to US$501.7 million as at December 30, 2012. This increase was anticipated as last year a lack of inventory at certain divisions had a negative impact on customer service levels. In addition, the Dorel Colombia acquisition and the growth of sales through the Internet distribution channel have necessitated a wider number of models to be held in sufficient quantities to adequately service customers, thus requiring a higher overall inventory level. The Company believes there is some opportunity to decrease inventory levels slightly, but the decrease will not be significant. Principally for this reason, cash flow provided by operating activities for the year was US$107.2 million compared to US$162.5 million recorded in 2011, a decrease of US$55.3 million.

Outlook
"For the 2013 year we expect to achieve overall growth in both revenues and net income through both market expansion and by continuing to invest in new products and brand support. Specifically in Recreational / Leisure we believe the success of our new product development and marketing in 2012 will continue into 2013. In Juvenile, the majority of our 2013 improvement will come from Latin America. We have made strategic investments over the past few years and expect growth there to outpace our traditional markets. Our products and brands have considerable untapped potential in markets such as Latin America and Asia and we feel these geographies will play a large role in our growth strategy. We will also continue to invest in our North American and European businesses to ensure we remain market leaders. In Home Furnishings, growth prospects are more modest as the segment is based only in North America and brand differentiation is not a competitive advantage; however we are focused on and further capitalizing upon the growth in the Internet retail channel," commented Mr. Schwartz.

"The Company is experiencing a slower start in 2013 than in 2012. We had a strong first quarter of 2012 and the timing of deliveries thus far in 2013 has had the impact of lowering our expectations for the first quarter. As such, we anticipate being below prior year levels. However, as some of this is a timing issue, we remain confident of an improved 2013 overall. Further we remain open to acquisitions to complement our current businesses", concluded Mr. Schwartz.

Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, March 6, 2013 at 1:00 P.M. Eastern Time. Interested parties can join the call by dialling 1-888-231-8191. The conference call can also be accessed via live webcast at www.dorel.com or www.newswire.ca. If you are unable to call in at this time, you may access a recording of the meeting by calling 1-855-859-2056 and entering the passcode 87464761 on your phone. This recording will be available on Wednesday, March 6, 2013 as of 4:00 P.M. until 11:59 P.M. on Wednesday, March 13, 2013.

Complete financial statements will be available on the Company's website, www.dorel.com, and will be available through the SEDAR website.

Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle company. Dorel creates style and excitement in equal measure to safety, quality and value. The Company's lifestyle leadership position is pronounced in both its Juvenile and Bicycle categories with an array of trend-setting products. Dorel's powerfully branded products include Safety 1^st, Quinny, Cosco, Maxi-Cosi and Bébé Confort in Juvenile, as well as Cannondale, Schwinn, GT, Mongoose, IronHorse and SUGOI in Recreational/Leisure. Dorel's Home Furnishings segment markets a wide assortment of both domestically produced and imported furniture products, principally within North America. Dorel has annual sales of US$2.5 billion and employs 5,400 people in facilities located in twenty-four countries worldwide.

Caution Regarding Forward Looking Statements
Certain statements included in this press release may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. Except as may be required by Canadian securities laws, Dorel does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from Dorel's expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, Dorel cannot guarantee that any forward-looking statement will materialize. Forward-looking statements are provided in this press release for the purpose of giving information about Management's current expectations and plans and allowing investors and others to get a better understanding of Dorel's operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.

Forward-looking statements made in this press release are based on a number of assumptions that Dorel believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from the Company's expectations expressed in or implied by the forward-looking statements include: general economic conditions; changes in product costs and supply channel; foreign currency fluctuations; customer and credit risk including the concentration of revenues with few customers; costs associated with product liability; changes in income tax legislation or the interpretation or application of those rules; the continued ability to develop products and support brand names; changes in the regulatory environment; continued access to capital resources and the related costs of borrowing; changes in assumptions in the valuation of goodwill and other intangible assets and subject to dividends being declared by the Board of Directors, there can be no certainty that Dorel's Dividend Policy will be maintained. These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in Dorel's annual MD&A and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors outlined in the previously mentioned documents are specifically incorporated herein by reference.

Dorel cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to Dorel or that Dorel currently deems to be immaterial may also have a material adverse effect on our business, financial condition or results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. Dorel therefore cannot describe the expected impact in a meaningful way or in the same way Dorel presents known risks affecting the business.

DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
ALL FIGURES IN THOUSANDS OF US $

		as at December 30, 2012		as at December 30, 2011
		(unaudited)		(unaudited)

ASSETS
CURRENT ASSETS
	Cash and cash equivalents	$	38,311	$	29,764
	Trade and other receivables		443,020		403,664
	Inventories		501,652		442,409
	Other financial assets		287		9,867
	Income taxes receivable		17,273		17,811
	Prepaid expenses		19,813		21,858
			1,020,356		925,373

NON-CURRENT ASSETS
	Property, plant and equipment		157,127		158,363
	Intangible assets		423,057		411,171
	Goodwill		578,352		568,849
	Other financial assets		796		-
	Deferred tax assets		22,773		31,096
	Other assets		1,625		1,717
			1,183,730		1,171,196
		$	2,204,086	$	2,096,569

LIABILITIES
CURRENT LIABILITIES
	Bank indebtedness	$	11,476	$	20,130
	Trade and other payables		337,451		323,552
	Other financial liabilities		4,236		13,065
	Income taxes payable		2,856		2,315
	Long-term debt		13,520		17,279
	Provisions		33,769		37,096
			403,308		413,437

NON-CURRENT LIABILITIES
	Long-term debt		317,970		298,160
	Pension & post-retirement benefit obligations		35,724		35,258
	Deferred tax liabilities		87,922		79,702
	Provisions		1,969		1,876
	Other financial liabilites		43,600		33,141
	Other long-term liabilities		5,895		5,340
			493,080		453,477

EQUITY
SHARE CAPITAL			180,856		174,782
CONTRIBUTED SURPLUS			27,192		26,445
ACCUMULATED OTHER COMPREHENSIVE INCOME			65,352		58,842
RETAINED EARNINGS			1,034,298		969,586
			1,307,698		1,229,655
		$	2,204,086	$	2,096,569

DOREL INDUSTRIES INC.
CONSOLIDATED INCOME STATEMENTS
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS

		Fourth Quarters Ended				Twelve Months Ended
		December 30, 2012		December 30, 2011		December 30, 2012		December 30, 2011
		(unaudited)		(unaudited)		(unaudited)		(unaudited)

Sales		$	616,996	$	558,031	$	2,475,762	$	2,352,250
Licensing and commission income			5,608		3,577		14,948		11,979
TOTAL REVENUE			622,604		561,608		2,490,710		2,364,229

Cost of sales			476,201		434,434		1,907,063		1,846,470
GROSS PROFIT			146,403		127,174		583,647		517,759


Selling expenses			55,424		45,165		220,299		185,868
General and administrative expenses			43,629		35,426		186,785		164,207
Research and development expenses			7,861		9,849		28,724		32,227
OPERATING PROFIT			39,489		36,734		147,839		135,457

Finance expenses			4,511		5,413		18,017		21,659
INCOME BEFORE INCOME TAXES			34,978		31,321		129,822		113,798

Income taxes expense			5,859		3,959		21,209		9,205
NET INCOME		$	29,119	$	27,362	$	108,613	$	104,593

EARNINGS PER SHARE
	Basic	$	0.92	$	0.85	$	3.43	$	3.22
	Diluted	$	0.91	$	0.85	$	3.39	$	3.21

SHARES OUTSTANDING
	Basic - weighted average		31,560,961		32,034,721		31,690,811		32,456,275
	Diluted - weighted average		31,963,942		32,130,001		32,039,861		32,621,583


DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $

		Fourth Quarters Ended				Twelve Months Ended
		December 30, 2012		December 30, 2011		December 30, 2012		December 30, 2011
		(unaudited)		(unaudited)		(unaudited)		(unaudited)

NET INCOME		$	29,119	$	27,362	$	108,613	$	104,593

OTHER COMPREHENSIVE INCOME (LOSS):

Items that are or may be reclassified subsequently to net income:
Cumulative translation account:
Net change in unrealized foreign currency gains (losses) on translation of net investments in foreign operations, net of tax of nil			13,487		(14,653)		13,628		(15,210)

Net changes in cash flow hedges:
Net change in unrealized gains (losses) on derivatives designated as cash flow hedges			(998)		3,469		123		3,866
Reclassification to income			242		(495)		973		1,027
Reclassification to the related non financial asset			(2,637)		(146)		(10,654)		4,826
Deferred income taxes			869		(870)		2,440		(2,605)
			(2,524)		1,958		(7,118)		7,114

Items that will not be reclassified to net income:
Defined benefit plans:
Actuarial gains (losses) on defined benefit plans			(2,865)		(8,152)		(2,871)		(8,158)
Deferred income taxes			1,138		3,318		1,139		3,234
			(1,727)		(4,834)		(1,732)		(4,924)

TOTAL OTHER COMPREHENSIVE INCOME (LOSS)			9,236		(17,529)		4,778		(13,020)

TOTAL COMPREHENSIVE INCOME		$	38,355	$	9,833	$	113,391	$	91,573

DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
ALL FIGURES IN THOUSANDS OF US $

		Attributable to equity holders of the Company
		Share Capital		Contributed Surplus		Cumulative Translation Account*		Cash Flow Hedges*		Retained Earnings		Total Equity
		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)

Balance as at December 30, 2010		$	178,816	$	23,776	$	67,970	$	(1,032)	$	902,321	$	1,171,851

Total comprehensive income:
	Net income		-		-		-		-		104,593		104,593
	Defined benefit plans actuarial gains and losses, net of tax		-		-		-		-		(4,924)		(4,924)
	Other comprehensive income (loss)		-		-		(15,210)		7,114		-		(8,096)
			-		-		(15,210)		7,114		99,669		91,573
Issued under stock option plan			429		-		-		-		-		429
Reclassification from contributed surplus due to exercise stock options			89		(89)		-		-		-		-
Repurchase and cancellation of shares			(4,552)		-		-		-		-		(4,552)
Premium paid on share repurchase			-		-		-		-		(12,847)		(12,847)
Share-based payments			-		2,686		-		-		-		2,686
Dividends on common shares			-		-		-		-		(19,485)		(19,485)
Dividends on deferred share units			-		72		-		-		(72)		-
Balance as at December 30, 2011		$	174,782	$	26,445	$	52,760	$	6,082	$	969,586	$	1,229,655

Total comprehensive income:
	Net income		-		-		-		-		108,613		108,613
	Defined benefit plans actuarial gains and losses, net of tax		-		-		-		-		(1,732)		(1,732)
	Other comprehensive income (loss)		-		-		13,628		(7,118)		-		6,510
			-		-		13,628		(7,118)		106,881		113,391
Issued under stock option plan			8,524		-		-		-		-		8,524
Reclassification from contributed surplus due to exercise of stock options			1,770		(1,770)		-		-		-		-
Repurchase and cancellation of shares			(4,220)		-		-		-		-		(4,220)
Premium paid on share repurchase			-		-		-		-		(13,592)		(13,592)
Share-based payments			-		2,389		-		-		-		2,389
Dividends on common shares			-		-		-		-		(28,449)		(28,449)
Dividends on deferred share units			-		128		-		-		(128)		-
Balance as at December 30, 2012		$	180,856	$	27,192	$	66,388	$	(1,036)	$	1,034,298	$	1,307,698

*Accumulated other comprehensive income

DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $

		Fourth Quarters Ended				Twelve Months Ended
		December 30, 2012		December 30, 2011		December 30, 2012		December 30, 2011
		(unaudited)		(unaudited)		(unaudited)		(unaudited)

CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net income		$	29,119	$	27,362	$	108,613	$	104,593
Items not involving cash:
	Depreciation and amortization		14,011		12,160		53,332		53,865
	Amortization of deferred financing costs		98		156		418		532
	Impairment loss of goodwill		-		1,372		-		1,372
	Accretion expense on contingent consideration and put option liabilities		1,196		599		3,304		2,209
	Change of assumptions on contingent consideration and put option liabilities		(2,043)		(11,131)		(3,473)		(12,217)
	Unrealized (gains) losses due to foreign exchange exposure on contingent consideration and put option liabilities		(140)		259		1,466		(808)
	Other finance expenses		3,217		4,659		14,295		18,919
	Income taxes expense		5,859		3,959		21,209		9,205
	Share-based payments		567		526		2,275		2,467
	Pension and post-retirement defined benefit plans		(1,741)		(3,989)		431		(1,473)
	Loss on disposal of property, plant and equipment		305		880		229		854
			50,448		36,812		202,099		179,518
Net changes in balances related to operations:
	Trade and other receivables		(3,816)		(10,656)		(37,250)		(37,683)
	Inventories		29,712		18,419		(47,120)		81,433
	Other financial assets		31		-		(947)		-
	Prepaid expenses		4,690		12		2,220		(4,134)
	Trade and other payables		(14,250)		18,460		11,769		(12,114)
	Pension and post-retirement benefit obligations		(304)		(572)		(2,776)		(3,082)
	Provisions, other financial long-term liabilities and other long-term liabilities		(2,366)		(1,185)		(2,616)		(1,876)
			13,697		24,478		(76,720)		22,544

	Income taxes paid		(6,058)		(4,489)		(19,271)		(28,181)
	Income taxes received		1,286		6,067		16,541		7,136
	Interest paid		(6,257)		(6,239)		(16,660)		(18,540)
	Interest received		343		-		1,228		-

CASH PROVIDED BY OPERATING ACTIVITIES			53,459		56,629		107,217		162,477

FINANCING ACTIVITIES
	Bank indebtedness		711		(1,495)		(8,670)		(9,777)
	Increase of long-term debt		-		-		32,883		-
	Repayments of long-term debt		(29,998)		6,268		(16,767)		(14,855)
	Repayments of contingent consideration and put option liabilities		-		-		(6,972)		(2,431)
	Financing costs		(28)		(56)		(220)		(22)
	Share repurchase		-		(4,753)		(17,812)		(17,399)
	Issuance of share capital		3,134		-		7,941		429
	Dividends on common shares		(9,463)		(4,808)		(28,449)		(19,485)
CASH USED IN FINANCING ACTIVITIES			(35,644)		(4,844)		(38,066)		(63,540)

INVESTING ACTIVITIES
	Acquisition of businesses		(152)		(36,319)		(14,819)		(36,319)
	Additions to property, plant and equipment		(6,443)		(4,821)		(27,020)		(27,975)
	Disposals of property, plant and equipment		16		502		166		644
	Additions to intangible assets		(4,898)		(5,970)		(19,491)		(20,825)
CASH USED IN INVESTING ACTIVITIES			(11,477)		(46,608)		(61,164)		(84,475)

	Effect of exchange rate changes on cash and cash equivalents		67		(1,191)		560		(446)

NET INCREASE IN CASH AND CASH EQUIVALENTS			6,405		3,986		8,547		14,016

Cash and cash equivalents, beginning of period			31,906		25,778		29,764		15,748

CASH AND CASH EQUIVALENTS, END OF PERIOD		$	38,311	$	29,764	$	38,311	$	29,764

DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOURTH QUARTERS ENDED DECEMBER 30
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS

	Total				Juvenile				Recreational / Leisure				Home Furnishings
	2012		2011		2012		2011		2012		2011		2012		2011
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)

Total revenue	$	622,604	$	561,608	$	267,359	$	239,532	$	226,640	$	202,410	$	128,605	$	119,666
Cost of sales		476,201		434,434		192,539		175,859		170,121		156,000		113,541		102,575
Gross profit		146,403		127,174		74,820		63,673		56,519		46,410		15,064		17,091
Selling expenses		54,746		44,607		28,709		22,480		21,962		18,034		4,075		4,093
General and administrative expenses		41,404		42,238		21,171		22,623		17,354		15,714		2,879		3,901
Research and development expenses		7,861		9,849		6,299		8,180		747		1,058		815		611
Operating profit		42,392		30,480	$	18,641	$	10,390	$	16,456	$	11,604	$	7,295	$	8,486
Finance expenses		4,511		5,413
Corporate expenses		2,903		(6,254)
Income taxes		5,859		3,959

Net income	$	29,119	$	27,362

Earnings per Share
Basic	$	0.92	$	0.85
Diluted	$	0.91	$	0.85


Impairment loss of goodwill included in operating profit	$	-	$	1,372	$	-	$	1,372	$	-	$	-	$	-	$	-
Depreciation and amortization included in operating profit	$	13,856	$	12,112	$	10,210	$	9,921	$	2,695	$	1,377	$	951	$	814


DOREL INDUSTRIES INC.
INDUSTRY SEGMENTED INFORMATION
FOR THE YEARS ENDED DECEMBER 30
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS

	Total				Juvenile				Recreational / Leisure				Home Furnishings
	2012		2011		2012		2011		2012		2011		2012		2011
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)

Total revenue	$	2,490,710	$	2,364,229	$	1,040,765	$	980,197	$	928,422	$	861,754	$	521,523	$	522,278
Cost of sales		1,907,063		1,846,470		753,107		733,079		694,985		656,702		458,971		456,689
Gross Profit		583,647		517,759		287,658		247,118		233,437		205,052		62,552		65,589
Selling expenses		217,889		183,740		106,134		83,129		94,523		83,677		17,232		16,934
General and administrative expenses		166,170		158,033		87,202		84,083		62,327		57,083		16,641		16,867
Research and development expenses		28,724		32,227		21,009		26,055		4,629		3,635		3,086		2,537
Operating profit		170,864		143,759	$	73,313	$	53,851	$	71,958	$	60,657	$	25,593	$	29,251
Finance expenses		18,017		21,659
Corporate expenses		23,025		8,302
Income taxes		21,209		9,205

Net income	$	108,613	$	104,593

Earnings per Share
Basic	$	3.43	$	3.22
Diluted	$	3.39	$	3.21


Impairment loss of goodwill included in operating profit	$	-	$	1,372	$	-	$	1,372	$	-	$	-	$	-	$	-
Depreciation and amortization included in operating profit	$	53,054	$	53,683	$	39,151	$	40,376	$	9,429	$	8,251	$	4,474	$	5,056