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Dorel Reports First Quarter 2020 Results

  • Coronavirus interrupts solid start to year
  • Inventory reduced by US$64.8 million in the quarter and a further reduction of US$68 million in April
  • Dorel Sports records fourth consecutive quarter of revenue growth; April bicycle sales surge as families seek exercise and alternatives to vacations
  • Dorel Home’s revenue down 6.3%, e-commerce sales increased; April online sales of home products spike
  • Dorel Juvenile hurt by pandemic, records a US$43.1 million non-cash impairment charge

MONTREAL, May 08, 2020 (GLOBE NEWSWIRE) -- Dorel Industries Inc. (TSX: DII.B, DII.A) today released results for the first quarter ended March 31, 2020. Revenue was US$580.8 million, down 7.2% compared to US$625.6 million a year ago. Reported net loss was US$57.8 million, or US$1.78 per diluted share, compared to US$8.3 million or US$0.26 per diluted share last year. Adjusted net loss1 was US$13.6 million or US$0.42 per diluted share compared to an adjusted net income1 of US$5.8 million or US$0.18 per diluted share.

“In mid-March the Coronavirus pandemic literally brought a halt to the global economy as lockdown orders forced an unprecedented situation. Our priority is to ensure the health and well-being of our employees worldwide. Additional safety measures have been implemented in our facilities and where possible, employees began working from home. While like most companies, Dorel’s revenues have been affected, many of our products have remained popular with consumers purchasing them in stores where open, and increasingly online. We feel we are in a good position in the short-term and going forward as the economy recovers. Both Dorel Home and Dorel Sports have been experiencing strong demand since the virus hit. Dorel Juvenile was negatively impacted, primarily due to retail store closures and with few people driving, sales of car seats are down materially. However, we feel these purchases have been deferred, not cancelled, and in the past two weeks, we have seen improved sales at retail. Another positive is that our focus on liquidity and inventory reduction resulted in a US$64.8 million reduction in inventory in the quarter, with a further US$68 million reduction in April. Furthermore, divisions are taking a microscope to all expenses to maximize cash flow,” commented Dorel President & CEO, Martin Schwartz.

1 This is a non-GAAP financial measure. Please refer to the “Non-GAAP financial measures” section at the end of this press release.

Summary of Financial Information (unaudited)
Three Months Ended March 31,
All figures in thousands of US $, except per share amounts
  2020   2019   Change
  $   $   %  
Revenue 580,755   625,560   (7.2 %)
Net loss (57,821 ) (8,273 ) (598.9 %)
Per share - Basic (1.78 ) (0.26 ) (584.6 %)
Per share - Diluted (1.78 ) (0.26 ) (584.6 %)
Adjusted net (loss) income1 (13,605 ) 5,791   (334.9 %)
Per share - Basic1 (0.42 ) 0.18   (333.3 %)
Per share - Diluted1 (0.42 ) 0.18   (333.3 %)
Number of shares outstanding –            
Basic weighted average 32,486,138   32,439,340      
Diluted weighted average 32,486,138   32,439,340      

Dorel Sports

All figures in thousands of US $
Three Months Ended March 31 (unaudited)
  $   % of rev.   $   % of rev.   %  
Revenue 188,188       184,544       2.0
Gross profit 35,821   19.0 % 39,259   21.3 % (8.8 %)
Operating (loss) profit (611 ) (0.3 %) 4,501   2.4 % (113.6 %)
Adjusted operating (loss) profit1 (528 ) (0.3 %) 4,501   2.4 % (111.7 %)

The first quarter was the fourth consecutive quarter of revenue growth, at US$188.2 million, an increase of US$3.6 million, or 2.0%, compared to a year ago. Sales improvements were at Cycling Sports Group (CSG) and Pacific Cycle (PCG), partially offset by weakness at Caloi. PCG saw strong retail point-of-sale (POS) with growth accelerating particularly in the last two weeks of March as consumer demand for bikes spiked amid the pandemic lockdowns, and ahead of the Easter holiday period. Caloi’s decline was attributed to lower demand due to price increases aimed at offsetting devaluation of the Brazilian Real and the Coronavirus which forced many retailers to close towards the end of the quarter.

Operating loss was US$0.6 million versus an operating profit of US$4.5 million last year. The Coronavirus reduced first quarter operating profit by over US$6.0 million through a combination of reduced sales in the second half of March due to lockdowns, unfavourable foreign exchange due to the strength of the US dollar and an increased impairment loss on trade accounts receivable considering the economic impact of the COVID-19 pandemic.

COVID-19 Impact
As noted above, the first quarter started strong but was derailed by the pandemic, which eroded approximately US$6.0 million in operating profit. Many bicycle factories in Asia were forced to close for four to six weeks, reducing supply. Though demand remained strong, there were some constraints in the ability to realize sales as many countries locked down retail operations. A small percentage of PCG customers were closed and at CSG, the impact varied by region. Some of the larger sporting goods outlets closed although e-commerce sales are making up for the lack of brick and mortar sales. By the end of April, many dealers that had been closed in Northern Europe had reopened while most of the dealers in the Southern countries remained closed.

As reported in the media, the bicycle industry has seen a surge in business in recent weeks. Many people are getting out for fresh air and exercise, while others are using bicycles as a mode of transportation to avoid public transport during the Coronavirus crisis. The desire for physical and mental health wellness, outdoor fun and fitness, while remaining safely isolated, are all driving factors for the significant increase in bike demand. This has been helped by the breaking, warm Spring weather in many regions. Cities around the world are closing additional traffic lanes to give cyclists and pedestrians more space and some are temporarily or permanently expanding cycling infrastructure in response to COVID-19.

Dorel Sports outlook
Despite some constraints, second quarter sales are expected to remain strong where consumers can access bikes, including mass retailers and e-commerce, two channels experiencing an exponential increase. Through April, PCG customer POS has increased significantly versus prior year. CSG’s North American business is expected to deliver sales growth while European revenues are expected to decline due to ongoing lockdowns across Southern Europe. It is anticipated that Caloi sales will decline as many of its key customers are expected to remain closed through the quarter.

Even though short-term supply will be an issue due to the high demand, and store closures will affect distribution, a return to profitability is expected for the second quarter.

Dorel Home

All figures in thousands of US $ 
Three Months Ended March 31 (unaudited)
  2020 2019 Change 
  $   % of rev.   $   % of rev.   %  
Revenue 197,412       210,764       (6.3 %)
Gross profit 24,500   12.4 % 29,641   14.1 % (17.3 %)
Operating profit 10,290   5.2 % 14,453   6.9 % (28.8 %)

First quarter revenue was US$197.4 million, down US$13.4 million, or 6.3%, from US$210.8 million last year. E-commerce sales rose slightly, representing 64% of the segment’s total gross sales, while brick and mortar sales declined at most major retailers.

Operating profit was US$10.3 million, a decrease of US$4.2 million, or 28.8%, from US$14.5 million last year. All divisions were affected by the economic and supply chain disruptions caused by the Coronavirus and ended the quarter below plan. Domestic production volumes were lower, impacting plant operating leverage. Markdowns to clear slower moving inventory also contributed to the reduction in operating profit. Inventories are now well under control, having dropped from a 2019 mid-year high of US$226.4 million to US$155.3 million by the end of the first quarter.

COVID-19 Impact
COVID-19 created a shift in product sales and consumer buying habits. With so many at home in lockdown when the pandemic fully hit in mid-March, online shopping grew with consumers seeking the value-priced furniture offered by Dorel Home’s businesses. Items such as home office furniture and entertainment units did particularly well.

Beginning in early February, Chinese suppliers were unable to deliver due to plant shutdowns forced by the pandemic. This resulted in decreased sales for many of the segment’s customers, a situation which lasted through the first half of March. In addition, all three ready-to-assemble furniture plants reduced their operating capacities due to lockdowns or staff shortages. Shipments began to recover in mid-March as Chinese suppliers came back online and domestic sales started to rebound at that time.

Dorel Home outlook
April shipments, due to increased online sales, have been very strong in response to consumer needs during the prolonged stay-at-home period. This trend is expected to continue at most Dorel Home divisions as the result of an even bigger shift to online shopping platforms and government support programs. This increased demand is expected to create some out-of-stock challenges through May, but inventory levels should improve in June. Improved warehouse costs and delivery programs are expected to further reduce operating costs and improve second quarter earnings. 

Dorel Juvenile

All figures in thousands of US $ 
Three Months Ended March 31 (unaudited)
  2020 2019 Change  
  $   % of rev.   $   % of rev.   %  
Revenue 195,155       230,252       (15.2 %)
Gross profit 46,212   23.7 % 61,133   26.6 % (24.4 %)
Operating loss (46,209 ) (23.7 %) (7,108 ) (3.1 %) (550.1 %)
Adjusted gross profit1 46,212   23.7 % 61,564   26.7 % (24.9 %)
Adjusted operating (loss) profit1 (1,859 ) (1.0 %) 7,289   3.2 % (125.5 %)

First quarter revenue amounted to US$195.2 million, a decrease of US$35.1 million, or 15.2%, compared to US$230.3 million last year. Excluding varying foreign exchange rates year-over-year, organic revenue1 declined by approximately 14.0%. The negative impact of the Coronavirus was substantial due primarily to store closures and lower demand across almost all markets as well as supply issues out of China earlier in the quarter. Combined, first quarter lost sales due to the pandemic are estimated at US$24 million.

Dorel Juvenile Europe was most affected with retail customer store closures in almost all markets. Europe was on plan through February as new products introduced in the fourth quarter last year were performing well, however these gains were lost as the pandemic took hold in March. In the U.S., sales which were good until mid-March, were also below expectations due to the overall market downturn. In Chile and Peru all Company owned retail stores were closed in March.

Operating loss for the quarter was US$46.2 million, compared to US$7.1 million a year ago. Adjusted operating loss, excluding impairment loss on goodwill and restructuring costs, was US$1.9 million, compared to an operating profit of US$7.3 million in 2019. As was the case with Dorel Sports, the surging US dollar created foreign exchanges losses of approximately US$3.0 million.

COVID-19 Impact
Dorel Juvenile was affected by supply chain interruptions and lower demand. The initial Coronavirus impact was in China in early February where Dorel Juvenile’s China-based factories were subject to an extended closure period after the Chinese New Year, resulting in lost sales. These facilities, as well as Dorel’s other China-based suppliers, were mostly back in operation mid-March, just when the crisis hit globally, resulting in massive lockdowns.

In North America where larger brick and mortar outlets remained open, the negative sales impact was due to lower sales within the core categories of car seats and strollers that are used outside of the home. We believe consumers have deferred these purchases, particularly car seats, as there are far fewer people in cars. Products used at home, such as health and safety aids, walkers, gates and highchairs, all sold well through the quarter.

In Europe and South America, the sales impact was much more substantial as smaller stores, including Dorel-owned locations, were forced to close. Smaller brick and mortar shops remain the largest distribution channel for Europe and most lack e-commerce capabilities. While there was an increase in online sales in all markets, sales in Europe were further limited as baby stores were deemed non-essential in all countries and juvenile products were also deemed non-essential in certain countries and could not be delivered to customers.

Dorel Juvenile outlook
April sales were substantially lower as limitations on consumers and store openings remained in place in most markets. As lock-downs ease in various jurisdictions, we are seeing increased sales and deferred sales of car seats picking up. Recent customer POS in the U.S. indicate an increase in sales of underperforming categories and we foresee continued demand due to a catch-up of deferred purchases. As restrictions and lockdowns are eased in May and beyond, we believe Dorel Juvenile will be in a good position relative to our competition in all our markets. The segment has a broad product portfolio, including those in the infant health and safety category, sells across all price points and has a best-in-class supply chain. The Company operates in all major distribution channels and has advanced e-commerce capabilities in the event this channel grows even faster than recent trends.

However, the expected gradual re-opening of stores throughout the period will result in second quarter weakness. Significant second half improvement is expected, based on the full re-opening of retail stores, the launch of new products and a further catch-up of deferred purchases.

As the realities of COVID-19 continue to affect companies worldwide, our focus, in addition to protecting profitability, continues to be strengthening our balance sheet and ensuring we preserve and improve our liquidity. For the quarter ended March 31, 2020, we reduced our inventory levels by US$64.8 million from the December 30, 2019 balance of US$633.6 million, with an additional reduction of approximately US$68 million in April 2020, all contributing to improved liquidity. 

Dorel also amended its senior unsecured notes agreement, syndicated revolving credit facility and term loan agreement to facilitate compliance with its financial covenants in light of the impact of COVID-19. As at March 31, 2020, Dorel was compliant with all its financial covenants.

Finally, with the adverse impact of the COVID-19 pandemic on global economies and financial markets, Dorel was required to perform impairment tests for some of its business units including Dorel Juvenile – Europe, Dorel Sports – Mass markets and Dorel Home. As a result of these impairment tests, Dorel Juvenile – Europe recorded an impairment loss on goodwill of US$43.1 million in the quarter as it revised its assumptions on projected earnings and cash flows, as well as its assumptions on discount rates applied to its forecasted cash flows.

For the first quarter ended March 31, 2020, Dorel’s effective tax rate was (6.6)% compared to (59.5)% for the same period last year. Excluding income taxes on impairment loss on goodwill and restructuring costs, Dorel’s first quarter adjusted tax rate1 was (38.7)% in 2020 compared with 37.1% in 2019. The main causes of the variation in the reported tax rates year-over-year were largely due to the non-deductible impairment loss recorded on goodwill, the non-recognition of tax benefits related to tax losses and temporary differences, the changes in the jurisdictions in which Dorel generated its income and management’s reassessment of the recoverability of deferred tax assets in light of the potential impact of the COVID-19 pandemic on Dorel’s business.

Finance expenses increased by US$5.0 million to US$15.3 million during the first quarter compared to US$10.3 million in 2019. The increase is mainly explained by a loss of US$3.7 million recorded during the first quarter of 2020 in connection with the modification of the senior unsecured notes agreement. The increase in finance expenses is also explained by an increase of interest on long-term debt of US$2.3 million due to higher average long-term debt balances and higher average effective interest rates compared to last year.

“Considering the worldwide situation with the current COVID-19 pandemic, we remain optimistic for the second quarter,” concluded Mr. Schwartz.

Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, May 8, 2020 at 1:00 P.M. Eastern Time. Interested parties can join the call by dialing 1-877-223-4471. The conference call can also be accessed via live webcast at If you are unable to call in at this time, you may access a recording of the meeting by calling 1-800-585-8367 and entering the passcode 9741847 on your phone. This recording will be available on Friday, May 8, 2020 as of 4:00 P.M. until 11:59 P.M. on Friday, May 15, 2020.

Complete condensed consolidated interim financial statements as at March 31, 2020 will be available on the Company's website,, and will be available through the SEDAR website.

Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating three distinct businesses in juvenile products, bicycles and home products. Dorel's strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi, Quinny and Tiny Love, complemented by regional brands such as Safety 1st, Bébé Confort, Cosco and Infanti. Dorel Sports brands include Cannondale, Schwinn, GT, Mongoose, Caloi and IronHorse. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of US$2.6 billion and employs approximately 8,900 people in facilities located in twenty-five countries worldwide.

Non-GAAP Financial Measures 
Dorel is presenting in this press release certain non-GAAP financial measures, as described below. These non-GAAP financial measures do not have a standardized meaning prescribed by International Financial Reporting Standards (IFRS) and therefore are unlikely to be comparable to similar measures presented by other issuers. These non-GAAP financial measures should not be considered in isolation or as a substitute for a measure prepared in accordance with IFRS.

Contained within this press release are reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with IFRS.

The terms and the definitions of the non-GAAP financial measures contained in this press release are as follows:

Organic revenue and adjusted organic revenue

Organic revenue: Revenue growth compared to the previous period, excluding the impact of varying foreign exchange rates
Adjusted organic revenue: Revenue growth compared to the previous period, excluding the impact of varying foreign exchange rates and the impact of the divestment of the performance apparel line of business (Sugoi)

Dorel believes that these measures provide investors with a better comparability of its revenue trends by providing revenue growth on a consistent basis between the periods presented.

Other financial information prepared under IFRS adjusted to exclude impairment loss on goodwill and restructuring costs

Adjusted cost of sales: Cost of sales excluding restructuring costs
Adjusted gross profit: Gross profit excluding restructuring costs
Adjusted operating profit: Operating profit excluding impairment loss on goodwill and restructuring costs
Adjusted income before income taxes: Income before income taxes excluding impairment loss on goodwill and restructuring costs
Adjusted income taxes expense: Income taxes expense excluding the tax impact relating to impairment loss on goodwill and restructuring costs
Adjusted tax rate: Tax rate excluding the tax impact relating to impairment loss on goodwill and restructuring costs
Adjusted net income: Net income excluding impairment loss on goodwill and restructuring costs, net of taxes
Adjusted earnings per basic and diluted share: Earnings per basic and diluted share calculated on the basis of adjusted net income

Dorel believes that the adjusted financial information provides investors with additional information to measure its financial performance by excluding certain items that the Company believes do not reflect its core business performance and provides better comparability between the periods presented. Accordingly, Dorel believes that the adjusted financial information will assist investors in analyzing its financial results and performance. The adjusted financial information is also used by management to assess the Company’s financial performance and to make operating and strategic decisions.

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, including statements regarding the impact of the COVID-19 pandemic on Dorel’s business, financial position and operations, 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, or if any of them do, what benefits Dorel will derive from them. 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 Dorel’s expectations expressed in or implied by the forward-looking statements include:

  • the ability to continue as a going concern is dependent on Dorel’s complying with its financial covenants under its senior unsecured notes, revolving bank loans and term loan agreements;
  • general economic conditions;
  • changes in product costs and supply channels, including disruption of Dorel’s supply chain resulting from the COVID-19 pandemic;
  • foreign currency fluctuations, including high levels of volatility in foreign currencies with respect to the US dollar reflecting uncertainties related to the COVID-19 pandemic;
  • customer and credit risk, including the concentration of revenues with a small number of 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;
  • outbreak of public health crises, such as the current COVID-19 pandemic, that could adversely affect global economies and financial markets, resulting in an economic downturn which could be for a prolonged period of time and have a material adverse effect on the demand for Dorel’s products and on its business, financial condition and results of operations;
  • continued access to capital resources, including compliance by Dorel with financial covenants under its senior unsecured notes, revolving bank loans and term loan agreements, and the related costs of borrowing, all of which may be adversely impacted by the COVID-19 pandemic;
  • failures related to information technology systems;
  • changes in assumptions in the valuation of goodwill and other intangible assets and future decline in market capitalization; and
  • there being no certainty that Dorel will declare any dividend in the future.

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 set out in the previously-mentioned documents are expressly incorporated by reference herein in their entirety.

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 Dorel’s 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.

MaisonBrison Communications
Rick Leckner
(514) 731-0000

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

All figures in the tables below are in thousands of US $, except per share amounts

Reconciliation of non-GAAP financial measures

Organic revenue and adjusted organic revenue:
    Three Months Ended March 31,
    Consolidated   Dorel Home   Dorel Juvenile   Dorel Sports
    2020   2019     2020   2019     2020   2019     2020   2019  
  %   %     %   %     %   %     %   %  
Revenue (decline) growth (7.2 ) (2.6 )   (6.3 ) 9.6     (15.2 ) (5.4 )   2.0   (10.7 )
Impact of varying foreign exchange rates 1.2   2.9     -   0.3     1.2   4.8     2.3   3.5  
Organic revenue1 (decline) growth (6.0 ) 0.3     (6.3 ) 9.9     (14.0 ) (0.6 )   4.3   (7.2 )
Impact of the divestment of the performance apparel line of business (SUGOI) -   0.8     -   -     -   -     -   2.0  
Adjusted organic revenue1 (decline) growth (6.0 ) 1.1     (6.3 ) 9.9     (14.0 ) (0.6 )   4.3   (5.2 )

Other financial information prepared under IFRS adjusted to exclude impairment loss on goodwill and restructuring costs:

Dorel Consolidated
Three Months Ended March 31,
  2020   2019
              Impairment loss                                  
        % of     on goodwill and         % of       % of     Restructuring         % of
    Reported   revenue     restructuring costs     Adjusted1   revenue   Reported   revenue     costs     Adjusted1   revenue
      %     $       %     %     $       %
REVENUE 580,755   100.0     -     580,755   100.0   625,560   100.0     -     625,560   100.0
Cost of sales 474,222   81.7     -     474,222   81.7   495,527   79.2     (431 )   495,096   79.1
GROSS PROFIT 106,533   18.3     -     106,533   18.3   130,033   20.8     431     130,464   20.9
Selling expenses 47,458   8.2     -     47,458   8.2   52,714   8.4     -     52,714   8.4
General and administrative expenses 40,828   7.0     -     40,828   7.0   48,636   7.9     -     48,636   7.9
Research and development expenses 9,742   1.7     -     9,742   1.7   9,573   1.5     -     9,573   1.5
Impairment loss (reversal) on trade accounts receivable 3,007   0.5     -     3,007   0.5   (4 ) -     -     (4 ) -
Restructuring costs 1,308   0.2     (1,308 )   -   -   13,966   2.2     (13,966 )   -   -
Impairment loss on goodwill 43,125   7.4     (43,125 )   -   -   -   -     -     -   -
OPERATING (LOSS) PROFIT (38,935 ) (6.7 )   44,433     5,498   0.9   5,148   0.8     14,397     19,545   3.1
Finance expenses 15,309   2.6     -     15,309   2.6   10,335   1.6     -     10,335   1.6
(LOSS) INCOME BEFORE INCOME TAXES (54,244 ) (9.3)     44,433     (9,811 ) (1.7)   (5,187 ) (0.8 )   14,397     9,210   1.5
Income taxes expense 3,577   0.7     217     3,794   0.6   3,086   0.5     333     3,419   0.6
Tax rate (6.6 )%             (38.7 )%     (59.5 %)             37.1%    
NET (LOSS) INCOME (57,821 ) (10.0 )   44,216     (13,605 ) (2.3)   (8,273 ) (1.3 )   14,064     5,791   0.9
(LOSS) EARNINGS PER SHARE                                              
Basic (1.78 )       1.36     (0.42 )     (0.26 )       0.44     0.18    
Diluted (1.78 )       1.36     (0.42 )     (0.26 )       0.44     0.18    
SHARES OUTSTANDING                                              
Basic - weighted average 32,486,138               32,486,138       32,439,340               32,439,340    
Diluted - weighted average 32,486,138               32,486,138       32,439,340               32,755,152    
Dorel Sports
    Three Months Ended March 31,
        % of     Restructuring       % of         % of     Restructuring       % of  
    Reported   revenue     costs   Adjusted1   revenue     Reported   revenue     costs   Adjusted1   revenue  
    $   %     $   $   %     $   %     $   $   %  
REVENUE 188,188   100.0     -   188,188   100.0     184,544   100.0     -   184,544   100.0  
Cost of sales 152,367   81.0     -   152,367   81.0     145,285   78.7     -   145,285   78.7  
GROSS PROFIT 35,821   19.0     -   35,821   19.0     39,259   21.3     -   39,259   21.3  
Selling expenses 18,625   9.9     -   18,625   9.9     19,355   10.5     -   19,355   10.5  
General and administrative expenses 14,088   7.5     -   14,088   7.5     14,535   7.9     -   14,535   7.9  
Research and development expenses 1,212   0.6     -   1,212   0.6     1,222   0.7     -   1,222   0.7  
Impairment loss (reversal) on trade accounts receivable 2,424   1.3     -   2,424   1.3     (354 ) (0.2 )   -   (354 ) (0.2 )
Restructuring costs 83   -     (83 ) -   -     -   -     -   -   -  
OPERATING (LOSS) PROFIT (611 ) (0.3 )   83   (528 ) (0.3 )   4,501   2.4     -   4,501   2.4  

Dorel Juvenile
    Three Months Ended March 31,
    2020   2019
              Impairment loss                                  
              on goodwill and                                  
        % of     restructuring         % of         % of     Restructuring       % of
    Reported   revenue     costs     Adjusted1   revenue     Reported   revenue     costs     Adjusted1 revenue
    $   %     $     $   %     $   %     $     $ %
REVENUE 195,155   100.0     -     195,155   100.0     230,252   100.0     -     230,252 100.0
Cost of sales 148,943   76.3     -     148,943   76.3     169,119   73.4     (431)     168,688 73.3
GROSS PROFIT 46,212   23.7     -     46,212   23.7     61,133   26.6     431     61,564 26.7
Selling expenses 23,054   11.8     -     23,054   11.8     26,910   11.7     -     26,910 11.7
General and administrative expenses 17,212   8.9     -     17,212   8.9     19,972   8.6     -     19,972 8.6
Research and development expenses 7,342   3.8     -     7,342   3.8     7,183   3.1     -     7,183 3.1
Impairment loss on trade accounts receivable 463   0.2     -     463   0.2     210   0.1     -     210 0.1
Restructuring costs 1,225   0.6     (1,225 )   -   -     13,966   6.2     (13,966 )   - -
Impairment loss on goodwill 43,125   22.1     (43,125 )   -   -     -   -     -     - -
OPERATING (LOSS) PROFIT (46,209 ) (23.7 )   44,350     (1,859 ) (1.0 )   (7,108 ) (3.1 )   14,397     7,289 3.2