Dorel Industries Inc. (TSX: DII.B, DII.A) announced results for the third quarter and nine months ended September 30, 2021.
'The third quarter was highlighted by the agreement reached to sell Dorel Sports. The transaction has accomplished our major objective of unlocking shareholder value by monetizing Dorel Sports at a time when the demand for bicycles is strong. We will provide further details of the use of net proceeds once the deal closes, which is expected before the end of the first quarter next year. Our focus now is to replicate the success achieved in our sports business at Dorel Home and Dorel Juvenile. To this end, last month we announced initiatives to strengthen Dorel Home with new equipment to facilitate domestic production at our three North American factories, as well as a strategic European acquisition which has a strong ecommerce presence in home furnishings throughout Europe. In the mid-term however, the on-going global supply chain disruptions present challenges to meet the continuing consumer demand for Dorel's products. This had a negative impact on Dorel Home's third quarter as well as on Juvenile's performance, particularly in Europe. These issues will continue in the short-term, but we are actively working on solutions and are confident in our ability to work through them,' stated Dorel President & CEO, Martin Schwartz.
Third quarter revenue from continuing operations, namely Dorel Home and Dorel Juvenile, was US$437.2 million, down 2.4% from US$447.8 million last year. Reported net loss from continuing operations was US$68.0 million or US$2.09 per diluted share, compared to a reported net income of US$9.3 million or US$0.28 per diluted share last year. Adjusted net loss1 was US$66.8 million or US$2.06 per diluted share, compared to an adjusted net income1 of US$9.1 million or US$0.28 per diluted share a year ago.
Included in the results of the quarter is an amount of US$61.7 million, or US$1.90 per diluted share to reflect that the Luxembourg Administrative Court has levied a final judgment of EUR54.6 million (euros) in tax (US$64.2 million) including interest. As such, Dorel must pay the Luxembourg tax authorities a remaining cash balance of EUR38.6 million (euros) (US$45.4 million).
As previously announced, the litigation related to taxation on the transfer of certain assets in connection with an internal corporate reorganization that took place in 2015. There is no possibility of further reassessments of Dorel by the Luxembourg authorities with respect to this matter.
Nine-month revenue from continuing operations was US$1.32 billion, an increase of 3.5% compared to US$1.28 billion last year. Reported net loss year-to-date was US$82.2 million or US$2.53 per diluted share, compared to US$51.4 million or US$1.58 per diluted share in 2020. Nine-month adjusted net loss1 was US$70.8 million or US$2.18 per diluted share, compared to US$3.3 million or US$0.10 per diluted share a year ago.
On October 11, 2021, Dorel announced that it had entered into a definitive agreement to sell its Dorel Sports segment. The transaction is expected to close before the end of the first quarter of 2022. As such, the results of Dorel Sports have been classified as discontinued operation for all periods presented. Including this discontinued operation, third quarter revenue was US$740.9 million, down 1.7% from US$753.4 million last year. Reported net loss including discontinued operation was US$37.0 million or US$1.14 per diluted share, compared to a reported net income of US$26.2 million or US$0.80 per diluted share last year. Adjusted net loss1 including discontinued operation was US$99.8 million or US$3.07 per diluted share, compared to an adjusted net income1 of US$28.7 million or US$0.87 per diluted share a year ago.
Including discontinued operation, nine-month revenue was US$2.21 billion, an increase of 7.6% compared to US$2.06 billion last year. Year-to-date reported net loss including discontinued operation was US$12.0 million or US$0.37 per diluted share, compared to US$20.5 million or US$0.63 per diluted share in 2020. Nine-month adjusted net loss1 including discontinued operation was US$64.6 million or US$1.99 per diluted share, compared to an adjusted net income1 of US$30.8 million or US$0.94 per diluted share a year ago.
Dorel Industries Inc. is a Canada-based global consumer products company. The Company designs, manufactures or sources, markets, and distributes a diverse portfolio of product brands through its Dorel Home and Dorel Juvenile segments. The Dorel Home segment is engaged in the sale of ready-to-assemble furniture and home furnishings, which include metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. The Dorel Home segment's brands include Maxi-Cosi, Tiny Love, Infanti, Safety 1st, Bebe Confort, Quinny, and Cosco. The Dorel Juvenile segment is engaged in the sale of childrenâs accessories, which include infant car seats, strollers, high-chairs and infant health and safety aids. The Dorel Juvenile segment's brands include DHP, Signature Sleep, Little Seeds, Ameriwood Home, Cosco Home & Office, Queer Eye, Cosmo Living, Novogratz, Real Rooms, Mr. Kate, Baby Relax, Alphason, Bertini, Ntense, and Notio.
DOREL INDUSTRIES INC. 
