MONTREAL, QUEBEC--(Marketwired - March 16, 2015) - Dorel Industries Inc. (TSX:DII.B)(TSX:DII.A) today announced results for the fourth quarter and full year ended December 30, 2014. Adjusted revenue for the fourth quarter was US$701.6 million up 10.7% from US$633.5 million a year ago. Adjusted net income for the fourth quarter was US$11.0 million or US$0.34 per diluted share compared to adjusted net income of US$12.1 million or US$0.38 per diluted share in the fourth quarter of 2013. Reported net loss for the quarter was US$80.7 million or US$2.50 per diluted share compared to reported net income of US$11.0 million or US$0.34 per diluted share a year ago.

Adjusted revenue for the full year was US$2.7 billion, up 10.0% from last year's US$2.4 billion. Adjusted net income for the year was US$84.0 million or US$2.59 per diluted share compared to adjusted net income of US$70.6 million or US$2.19 per diluted share in 2013. Reported net loss was US$21.3 million or US$0.66 per diluted share, compared to reported net income of US$57.7 million or US$1.79 per diluted share a year ago.

As detailed in the table below, the reported net loss includes impairment losses on goodwill and trademarks, restructuring and other costs totalling US$105.2 million or US$3.25 per diluted share and US$12.9 million or US$0.40 per diluted share for the years 2014 and 2013 respectively. As such, the Company is presenting adjusted financial information as it believes that excluding these items is a more meaningful comparison of its core business performance between the periods presented.

Summary of Adjusted Financial Information
Fourth Quarters Ended December 30
All figures in thousands of US $, except per share amounts
		2014	2013	Change %
Total adjusted revenue		701,602	633,534	10.7	%
Adjusted net income		10,993	12,147	(9.5	%)
	Per share - Basic	0.34	0.38	(10.5	%)
	Per share - Diluted	0.34	0.38	(10.5	%)
Average number of shares outstanding -
Basic weighted average		32,313,250	31,905,793
Diluted weighted average		32,502,846	32,245,587

Summary of Adjusted Financial Information
Twelve Months Ended December 30
All figures in thousands of US $, except per share amounts
		2014	2013	Change %
Total adjusted revenue		2,678,154	2,435,449	10.0	%
Adjusted net income		83,979	70,583	19.0	%
	Per share - Basic	2.61	2.22	17.6	%
	Per share - Diluted	2.59	2.19	18.3	%
Average number of shares outstanding -
Basic weighted average		32,213,733	31,828,510
Diluted weighted average		32,440,354	32,190,332

Details of the impairment losses, restructuring and other costs are presented below:

(All figures are in thousands of USD, except per share amounts)

		Fourth quarters ended December 30						Twelve months ended December 30
			2014			2013			2014			2013
			$			$			$			$
Dorel Juvenile
	Impairment losses on goodwill and trademarks		125,821			-			125,821			-
	Other charges due to manufacturing transition to Lerado		10,807			-			10,807			-
	Acquisition-related costs		3,081			70			4,350			520
	US Car seat case settlement		-			(2,000	)		-			6,000
Total			139,709			(1,930	)		140,978			6,520
Dorel Sports
	Restructuring costs		1,830			13,482			4,892			15,432
	Brixia investment write-down and other costs		603			-			6,542			-
	Acquisition-related costs		-			232			183			1,698
Total			2,433			13,714			11,617			17,130
Finance Expenses
	Gain on remeasurement of forward purchase agreement liabilities		(30,789	)		(6,175	)		(25,702	)		(2,441	)
Total impairment losses, restructuring and other costs before income taxes (1)			111,353			5,609			126,893			21,209
Total impairment losses, restructuring and other costs after income taxes			91,742			1,123			105,248			12,914
Total impact on diluted earnings per share		$	(2.84	)	$	(0.04	)	$	(3.25	)	$	(0.40	)
(1) Includes non-cash amounts of:			99,847			2,686			110,421			6,420

"Overall performance in 2014 was better than the previous year. This is a tribute to our executive teams in all three segments as we maintained a strict focus on the businesses even while planning the future of the Juvenile segment and rebuilding Dorel Sports. The fourth quarter Lerado acquisition is a major initiative to improve Dorel Juvenile's long-term profitability, shift to a more vertically integrated business model and broaden its global footprint. Lerado will allow Dorel to better service our existing customers and provide a base from which to expand the segment's business in China and other parts of Asia," stated Martin Schwartz, Dorel President & CEO.

"Results for Dorel Sports were strong as the segment recovered from a disappointing 2013. The revitalized management team delivered solid earnings as it refocused on its strong brands and successful new product introductions.

"Dorel Home Furnishings maintained its push in the Internet sales channel and drop ship vendor programs to post significant progress. For the first time in many quarters there was also an increase in Home Furnishings sales to the brick and mortar channel," concluded Mr. Schwartz.

Dorel Juvenile

	Fourth Quarters Ended December 30
	2014			2013
	$	% of rev.		$	% of rev.		Change %
Total adjusted revenue	289,836			255,254			13.5	%
Adjusted gross profit	75,840	26.2	%	73,445	28.8	%	3.3	%
Adjusted operating profit	8,816	3.1	%	16,458	6.4	%	(46.4	%)
	Twelve Months Ended December 30
	2014			2013
	$	% of rev.		$	% of rev.		Change %
Total adjusted revenue	1,071,113			992,882			7.9	%
Adjusted gross profit	298,196	27.8	%	281,623	28.4	%	5.9	%
Adjusted operating profit	61,939	5.8	%	63,678	6.4	%	(2.7	%)

Fourth quarter

Dorel Juvenile adjusted revenue increased 13.5% compared to the same quarter a year ago. Excluding the impact of foreign exchange and business acquisitions, the organic revenue increase was approximately 5% led by the United States, Brazil and Australia. All major divisions saw their currencies weaken significantly against the strong U.S. dollar in the quarter, a situation which was particularly pronounced in the Euro region. This amounted to a foreign exchange loss of approximately US$5 million and was the main cause of the operating profit decline from prior year. The fourth quarter of 2014 also includes operating losses of US$1.6 million pertaining to Lerado Juvenile results as well as start-up operations in Mexico.

With the closing of the Lerado transaction in early November, intensified effort has gone into the transition to and integration of the new Asian facilities. Production of certain products was transferred from third party suppliers to the new Company-owned facilities which required new product designs and moulds. Therefore, the segment recorded charges related to write-off of capitalized R&D costs, tooling and moulds, as well as other associated costs.

This realignment prompted a re-assessment of Dorel Juvenile's global operations. As a result, assumptions on future earnings and cash flow growth have changed and growth in earnings is now expected to come from the new Asian-based operations as opposed to the North American and Australian markets and as such goodwill impairment losses of US$82.7 million were recorded.

In Europe the Company has made a strategic decision to focus on the Maxi-Cosi and Quinny brands and profits are expected to be driven by these brands as opposed to other brands acquired as part of the 2003 Ampa France business acquisition. As a result, the Company has recorded an impairment loss of US$43.1 million before tax, allocated to the trademarks based on reduced future profitability and cash flow for the Bébé Confort, Monbebé, Babidéal and Baby Relax brands.

Full year

Excluding the impact of foreign exchange and acquisitions, organic revenue increased by approximately 3% from prior year. The main drivers of the increased revenue were Latin America and North America while revenues in Europe were stable. Dorel Asia Juvenile has had rejuvenated growth in the sale of wooden cribs and other wooden juvenile furniture products, particularly in higher margin items.

The weakening of major currencies versus the U.S. dollar resulted in a net negative impact in operating profit of approximately US$10 million for the full year. The 2014 full year operating losses pertaining to Lerado Juvenile results as well as start-up operations in Mexico amounts to US$2.0 million.

Dorel Sports

	Fourth Quarters Ended December 30
	2014			2013
	$	% of rev.		$	% of rev.		Change %
Total revenue	260,083			245,465			6.0	%
Adjusted gross profit	56,890	21.9	%	55,936	22.8	%	1.7	%
Adjusted operating profit	12,030	4.6	%	8,287	3.4	%	45.2	%
	Twelve Months Ended December 30
	2014			2013
	$	% of rev.		$	% of rev.		Change %
Total revenue	1,053,183			918,744			14.6	%
Adjusted gross profit	247,907	23.5	%	215,960	23.5	%	14.8	%
Adjusted operating profit	67,507	6.4	%	39,030	4.2	%	73.0	%

Fourth quarter

Dorel Sports delivered its fourth consecutive quarter of growth. Revenues increased US$14.6 million or 6% in the quarter and adjusted operating profit improved by 45.2%. The organic sales increase, excluding the impact of foreign exchange and acquisitions was approximately 8%. Pacific Cycle led the sales growth with sales to mass merchants increasing in both bicycles and electric ride-ons. Caloi's sales increased and in local currency operating profit increased by double digits versus prior year. This growth was driven by the Cannondale and GT business launched in Brazil during the year.

The segment was challenged by the unfavourable effect of the drastically appreciated US dollar against all major foreign currencies. The net negative impact was approximately US$4 million for Dorel Sports. Also in the quarter, Dorel Sports began operations in Chile, which resulted in costs of US$0.4 million in connection with the start-up.

Full year

The organic sales increase after removing the impact of foreign exchange and acquisitions was approximately 8%. The increase was in both the IBD and the mass merchant distribution channels, driven partly by improved weather conditions with a rebound in the global bike market when compared with prior year. Overseas markets in the IBD channel, particularly in Europe and Asia continued to contribute to the organic sales increase. Further highlights were strong shipments of Pacific Cycle's battery powered ride-ons and improved sales in Canada.

The adjusted operating profit improvement was at all major divisions, led by a strong turn around in the IBD sales channel. This along with strong sales growth at all other major distribution channels and improved operating efficiencies contributed to better earnings. For the year, the net negative impact of adverse foreign exchange rates was approximately US$3 million.

Dorel Home Furnishings

	Fourth Quarters Ended December 30
	2014			2013
	$	% of rev.		$	% of rev.		Change %
Total revenue	151,683			132,815			14.2	%
Gross profit	17,033	11.2	%	15,451	11.6	%	10.2	%
Operating profit	5,237	3.5	%	5,004	3.7	%	4.7	%
	Twelve Months Ended December 30
	2014			2013
	$	% of rev.		$	% of rev.		Change %
Total revenue	553,858			523,823			5.7	%
Gross profit	67,214	12.1	%	66,204	12.6	%	1.5	%
Operating profit	24,034	4.3	%	25,992	5.0	%	(7.5	%)

Fourth quarter

In the fourth quarter, Dorel Home Furnishing revenues increased by 14.2%. All divisions showed increases over last year's fourth quarter. Dorel Home Products (DHP) had the strongest growth while Cosco Home & Office also did well. The import division of Ameriwood/Altra also recorded gains in the quarter, particularly through the Internet channel.

Full year

The organic sales increase after removing the impact of foreign exchange rate variations was approximately 6%. The revenue increase was primarily from DHP and Cosco furniture product categories. The segment posted another record year of sales through the Internet sales channel which offset full year reductions in sales to brick and mortar stores. Dorel Home Furnishings continues its expansion into the Internet sales channel which now represents 30% of revenue compared to 20% in 2013. The majority of the segment's divisions showed significantly improved operating results.

Other

Non-cash gains of US$30.8 million and US$25.7 million respectively are included in 2014 fourth quarter and year-end finance expenses. These gains are related to the remeasurement of the forward purchase agreement liabilities with regards to certain past business acquisitions. The diluted earnings per share impact is US$0.95 in the quarter and US$0.80 year-to-date. In 2013, the remeasurement of the forward purchase agreement liabilities generated a total non-cash gain of US$6.2 million in the quarter and US$2.4 million for the full year. This equated to a fully diluted EPS impact of US$0.19 in the quarter and US$0.08 year-to-date.

In 2014, the Company's effective tax rate was 28.9% compared to 8.0% in 2013. Excluding the income taxes on impairment losses on goodwill and trademarks, restructuring and other costs, the Company's adjusted effective tax rate was 13.4% and 15.8% for 2014 and 2013 respectively.

Outlook

"Over the last decade Dorel has truly become a global company, particularly in the Dorel Juvenile and Dorel Sports segments. Today, just over half of our net income is derived from outside North America. We believe this is the right long-term vision for the growth of the Company. However, the recent meteoric rise in the value of the US dollar has significantly reduced our margins in our markets outside the US. This difficult situation is expected to impact us for at least the first half of 2015. We are working to adjust to these new exchange rates, which is made more challenging by continued currency rate fluctuations. Until we see some stability in the currency market, our visibility on earnings will remain difficult," stated Martin Schwartz, Dorel President & CEO.

"On the positive side we are experiencing sales and profitability growth in the United States in all segments due to renewed strength with our mass-market customers and on-going success in the Internet sales channel.

In Dorel Juvenile we are making progress to integrate our Lerado acquisition and this will remain a priority for the year. As we have stated, Lerado will not be accretive to earnings in the first year of operations.

For Dorel Sports we believe that the second half of the year will see growth in the independent bicycle dealer (IBD) channel. This expectation is based on the planned introduction in July of our innovative new bicycle model year line-up, as well as a stabilization of margins in our markets outside of the US. In addition, we anticipate another solid year in our mass market bike business.

In Dorel Home Furnishings, we are optimistic as we start the year. Demand is increasing and the weak Canadian dollar will benefit the segment's Canadian operations," concluded Mr. Schwartz.

Conference Call

Dorel Industries Inc. will hold a conference call to discuss these results today, March 16, 2015 at 1:00 P.M. Eastern Time. Interested parties can join the call by dialling 1-877-223-4471. The conference call can also be accessed via live webcast at http://www.dorel.com/eng/events. 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 68790568 on your phone. This recording will be available on Monday, March 16, 2015 as of 4:00 P.M. until 11:59 P.M. on Monday, March 23, 2015.

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)(TSX:DII.A) is a world class juvenile products and bicycle company. The Company's safety and lifestyle leadership is pronounced in both its Juvenile and Bicycle categories with an array of trend-setting, innovative products. Dorel Juvenile's powerfully branded products include global juvenile brands Safety 1^st, Quinny, Maxi-Cosi, Bébé Confort and Tiny Love, complemented by regional brands such as Cosco and Infanti. In Dorel Sports, brands include Cannondale, Schwinn, GT, Mongoose, Caloi, IronHorse and SUGOI. Dorel Home Furnishings markets a wide assortment of both domestically produced and imported furniture products, principally within North America. Dorel Industries Inc. has annual sales of US$2.7 billion and employs approximately 11,500 people in facilities located in twenty-five 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, 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: general economic conditions; changes in product costs and supply channels; 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 there being no certainty that Dorel's current 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 Management Discussion and Analysis 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 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.

Non-GAAP measures

As a result of the restructuring costs incurred in both 2014 and 2013, as well as impairment losses on goodwill and trademarks and other costs recorded, the Company is including in this press release the following non-GAAP financial measures: "total adjusted revenue", "adjusted gross profit", "adjusted selling expenses", "adjusted general and administrative expenses", "adjusted research and development expenses", "adjusted operating profit", "adjusted income before income taxes", "adjusted income taxes", "adjusted net income", and "adjusted earnings per basic and diluted share". The Company believes that this results in a more meaningful comparison of its core business performance between the periods presented. These non-GAAP financial measures do not have a standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other issuers. Contained within this press release are reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

(All figures are in thousands of USD, except per share amounts)

Reconciliation of Non-GAAP measures:
Results for the fourth quarter ended December 30, 2014
		Reported		Impairment losses, restructuring and other costs		Adjusted
		$		$		$
Total Revenue		701,002		600		701,602
Cost of sales		558,057		(6,218	)	551,839
GROSS PROFIT		142,945		6,818		149,763
Selling expenses		61,444				61,444
General and administrative expenses		57,736				57,736
Research and development expenses		11,858				11,858
Restructuring and other costs		9,503		(9,503	)	-
Impairment losses on goodwill and trademarks		125,821		(125,821	)	-
OPERATING PROFIT (LOSS)		(123,417	)	142,142		18,725
Finance expenses		(20,466	)	30,789		10,323
INCOME (LOSS) BEFORE INCOME TAXES		(102,951	)	111,353		8,402
Income taxes
	Current	(2,990	)			(2,990	)
	Deferred	(19,212	)	19,611		399
		(22,202	)	19,611		(2,591	)
Tax rate		21.6	%			(30.8	%)
NET INCOME (LOSS)		(80,749	)	91,742		10,993
EARNINGS (LOSS) PER SHARE
	Basic	(2.50	)	2.84		0.34
	Diluted	(2.50	)	2.84		0.34
SHARES OUTSTANDING
	Basic - weighted average	32,313,250				32,313,250
	Diluted - weighted average	32,313,250				32,502,846
Results for the fourth quarter ended ended December 30, 2013
		Reported $		Restructuring and other costs $		Adjusted $
Total Revenue		633,534				633,534
Cost of sales		492,777		(4,075	)	488,702
GROSS PROFIT		140,757		4,075		144,832
Selling expenses		59,143				59,143
General and administrative expenses		50,722				50,722
Research and development expenses		10,625				10,625
Restructuring and other costs		7,709		(7,709	)	-
OPERATING PROFIT		12,558		11,784		24,342
Finance expenses		1,595		6,175		7,770
INCOME BEFORE INCOME TAXES		10,963		5,609		16,572
Income taxes
	Current	1,571				1,571
	Deferred	(1,632	)	4,486		2,854
		(61	)	4,486		4,425
Tax rate		(0.6	%)			26.7	%
NET INCOME		11,024		1,123		12,147
EARNINGS PER SHARE
	Basic	0.35		0.03		0.38
	Diluted	0.34		0.04		0.38
SHARES OUTSTANDING
	Basic - weighted average	31,905,793				31,905,793
	Diluted - weighted average	32,245,587				32,245,587

Dorel Juvenile - Reconciliation of non-GAAP measures
Year Ended December 30, 2014
	Reported		Impairment losses and other costs		Adjusted
Total revenue	1,070,513		600		1,071,113
Cost of sales	779,135		(6,218	)	772,917
GROSS PROFIT	291,378		6,818		298,196
Selling expenses	117,959				117,959
General and administrative expenses	93,069				93,069
Research and development expenses	25,229				25,229
Other costs	8,338		(8,338	)	-
Impairment losses on goodwill and trademarks	125,821		(125,821	)	-
OPERATING PROFIT (LOSS)	(79,038	)	140,977		61,939
Year Ended December 30, 2013
	Reported		Other costs		Adjusted
Total revenue	992,882				992,882
Cost of sales	711,259				711,259
GROSS PROFIT	281,623				281,623
Selling expenses	110,721				110,721
General and administrative expenses	84,264				84,264
Research and development expenses	22,960				22,960
Other costs	6,520		(6,520	)	-
OPERATING PROFIT	57,158		6,520		63,678
Dorel Sports - Reconciliation of non-GAAP measures
Year Ended December 30, 2014
	Reported		Restructuring and other costs		Adjusted
Total revenue	1,053,183				1,053,183
Cost of sales	806,451		(1,175	)	805,276
GROSS PROFIT	246,732		1,175		247,907
Selling expenses	98,631				98,631
General and administrative expenses	74,720				74,720
Research and development expenses	7,049				7,049
Restructuring and other costs	10,443		(10,443	)	-
OPERATING PROFIT	55,889		11,618		67,507
Year Ended December 30, 2013
	Reported		Restructuring and other costs		Adjusted
Total revenue	918,744				918,744
Cost of sales	706,859		(4,075	)	702,784
GROSS PROFIT	211,885		4,075		215,960
Selling expenses	102,581				102,581
General and administrative expenses	68,054				68,054
Research and development expenses	6,295				6,295
Restructuring and other costs	13,055		(13,055	)	-
OPERATING PROFIT	21,900		17,130		39,030

DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
			as at			as at
		December 30,			December 30,
			2014			2013
CURRENT ASSETS
	Cash and cash equivalents	$	47,101		$	40,074
	Trade and other receivables		474,704			456,465
	Inventories		633,022			555,567
	Other financial assets		4,299			231
	Income taxes receivable		15,731			11,626
	Prepaid expenses		25,343			26,200
			1,200,200			1,090,163
	Assets held for sale		1,308			-
			1,201,508			1,090,163
NON-CURRENT ASSETS
	Property, plant and equipment		226,893			181,299
	Intangible assets		519,798			500,381
	Goodwill		544,782			637,084
	Other financial assets		571			620
	Deferred tax assets		31,009			24,356
	Other assets		5,398			6,060
			1,328,451			1,349,800
		$	2,529,959		$	2,439,963
LIABILITIES
CURRENT LIABILITIES
	Bank indebtedness	$	27,053		$	72,546
	Trade and other payables		490,527			379,311
	Other financial liabilities		1,655			3,231
	Income taxes payable		19,046			7,075
	Long-term debt		62,556			344,374
	Provisions		37,727			44,570
			638,564			851,107
NON-CURRENT LIABILITIES
	Long-term debt		490,188			13,183
	Net pension and post-retirement defined benefit liabilities		46,128			31,701
	Deferred tax liabilities		89,199			87,171
	Provisions		1,765			1,993
	Written put option and forward purchase agreement liabilities		44,640			92,570
	Other financial liabilities		2,063			2,727
	Other long-term liabilities		10,428			12,751
			684,411			242,096
EQUITY
Share capital			199,927			190,458
Contributed surplus			25,691			26,994
Accumulated other comprehensive income			(20,579	)		67,824
Other equity			579			-
Retained earnings			1,001,366			1,061,484
			1,206,984			1,346,760
		$	2,529,959		$	2,439,963

DOREL INDUSTRIES INC.
CONSOLIDATED INCOME STATEMENTS
ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
(unaudited)
			Fourth Quarters Ended						Twelve Months Ended
		December 30,			December 30,			December 30,			December 30,
			2014			2013			2014			2013
												Restated
Sales (1)		$	695,063		$	625,856		$	2,661,559		$	2,417,291
Licensing and commission income			5,939			7,678			15,995			18,158
TOTAL REVENUE			701,002			633,534			2,677,554			2,435,449
Cost of sales (1)			558,057			492,777			2,072,230			1,875,737
GROSS PROFIT			142,945			140,757			605,324			559,712
Selling expenses			61,444			59,143			235,776			231,724
General and administrative expenses			57,736			50,722			210,691			194,190
Research and development expenses			11,858			10,625			36,111			32,905
Restructuring and other costs (1)			9,503			7,709			18,781			19,575
Impairment losses on goodwill and trademarks			125,821			-			125,821			-
OPERATING PROFIT (LOSS)			(123,417	)		12,558			(21,856	)		81,318
Finance expenses			(20,466	)		1,595			8,073			18,665
INCOME (LOSS) BEFORE INCOME TAXES			(102,951	)		10,963			(29,929	)		62,653
Income taxes expense (recovery)			(22,202	)		(61	)		(8,660	)		4,984
NET INCOME (LOSS)		$	(80,749	)	$	11,024		$	(21,269	)	$	57,669
EARNINGS (LOSS) PER SHARE
	Basic		($2.50	)		$0.35			($0.66	)		$1.81
	Diluted		($2.50	)		$0.34			($0.66	)		$1.79
SHARES OUTSTANDING
	Basic - weighted average		32,313,250			31,905,793			32,213,733			31,828,510
	Diluted - weighted average		32,313,250			32,245,587			32,213,733			32,190,332
(1) Restructuring and other costs charged to:
Sales		$	600		$	-		$	600		$	-
Cost of sales			6,218			4,075			7,393			4,075
Expenses			9,503			7,709			18,781			19,575
		$	16,321		$	11,784		$	26,774		$	23,650

DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
	Fourth Quarters Ended						Twelve Months Ended
	December 30,			December 30,			December 30,			December 30,
		2014			2013			2014			2013
NET INCOME (LOSS)	$	(80,749	)	$	11,024		$	(21,269	)	$	57,669
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		(32,438	)		3,624			(84,220	)		8,987
Net changes in cash flow hedges:
Net change in unrealized gains (losses) on derivatives designated as cash flow hedges		279			(2,023	)		6,425			(1,706	)
Reclassification to income		268			256			956			1,005
Reclassification to the related non-financial asset		(2,471	)		744			(1,488	)		(314	)
Deferred income taxes		676			188			(1,559	)		(103	)
		(1,248	)		(835	)		4,334			(1,118	)
Items that will not be reclassified to net income:
Defined benefit plans:
Remeasurements of the net pension and post-retirement benefit liabilities		(14,137	)		3,980			(14,021	)		3,972
Deferred income taxes		5,537			(1,638	)		5,504			(1,636	)
		(8,600	)		2,342			(8,517	)		2,336
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)		(42,286	)		5,131			(88,403	)		10,205
TOTAL COMPREHENSIVE INCOME (LOSS)	$	(123,035	)	$	16,155		$	(109,672	)	$	67,874

DOREL INDUSTRIES INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

ALL FIGURES IN THOUSANDS OF US $

(unaudited)

		Attributable to equity holders of the Company
								Accumulated other comprehensive income
			Share Capital			Contributed Surplus			Cumulative Translation Account			Cash Flow Hedges		Defined Benefit Plans				Other Equity		Retained Earnings				Total Equity
Balance as at December 30, 2012		$	180,856		$	27,192		$	66,391		$	(1,036	)	$	(7,736	)	$	-		$	1,042,446		$	1,308,113
Total comprehensive income:
	Net income		-			-			-			-			-			-			57,669			57,669
	Other comprehensive income (loss)		-			-			8,987			(1,118	)		2,336			-			-			10,205
		$	-		$	-		$	8,987		$	(1,118	)	$	2,336		$	-		$	57,669		$	67,874
	Issued under stock option plan		7,605			-			-			-			-			-			-			7,605
	Reclassification from contributed surplus due to exercise of stock options		1,838			(1,838	)		-			-			-			-			-			-
	Reclassification from contributed surplus due to settlement of deferred share units		227			(347	)		-			-			-			-			-			(120	)
	Repurchase and cancellation of shares		(68	)		-			-			-			-			-			-			(68	)
	Premium paid on share repurchase		-			-			-			-			-			-			(253	)		(253	)
	Share-based payments		-			1,794			-			-			-			-			-			1,794
	Dividends on common shares		-			-			-			-			-			-			(38,185	)		(38,185	)
	Dividends on deferred share units		-			193			-			-			-			-			(193	)		-
Balance as at December 30, 2013		$	190,458		$	26,994		$	75,378		$	(2,154	)	$	(5,400	)	$	-		$	1,061,484		$	1,346,760
Total comprehensive loss:
	Net loss		-			-			-			-			-			-			(21,269	)		(21,269	)
	Other comprehensive income (loss)		-			-			(84,220	)		4,334			(8,517	)		-			-			(88,403	)
		$	-		$	-		$	(84,220	)	$	4,334		$	(8,517	)	$	-		$	(21,269	)	$	(109,672	)
	Issued under stock option plan		7,281			-			-			-			-			-			-			7,281
	Reclassification from contributed surplus due to exercise of stock options		1,924			(1,924	)		-			-			-			-			-			-
	Reclassification from contributed surplus due to settlement of deferred share units		264			(484	)		-			-			-			-			-			(220	)
	Share-based payments		-			907			-			-			-			-			-			907
	Equity component of convertible debentures, net of tax		-			-			-			-			-			2,037			-			2,037
	Remeasurement of written put option liabilities		-			-			-						-			(1,458	)		-			(1,458	)
	Dividends on common shares		-			-			-			-			-			-			(38,651	)		(38,651	)
	Dividends on deferred share units		-			198			-			-			-			-			(198	)		-
Balance as at December 30, 2014		$	199,927		$	25,691		$	(8,842	)	$	2,180		$	(13,917	)	$	579		$	1,001,366		$	1,206,984

DOREL INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
ALL FIGURES IN THOUSANDS OF US $
(unaudited)
		Fourth Quarters Ended							Twelve Months Ended
		December 30,			December 30,				December 30,		December 30,
			2014			2013			2014		2013
												Restated
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net income (loss)		$	(80,749	)	$	11,024		$	(21,269	)	$	57,669
Items not involving cash:
	Depreciation and amortization		20,927			15,407			65,436			56,269
	Impairment losses on goodwill and trademarks		125,821			-			125,821			-
	Unrealized losses (gains) arising on financial assets and financial liabilities classified as held for trading		167			-			92			-
	Finance expenses		(20,466	)		1,592			8,073			18,665
	Restructuring costs		1,830			13,482			4,892			15,432
	Income taxes expense (recovery)		(22,202	)		(61	)		(8,660	)		4,984
	Share-based payments		188			108			763			1,489
	Defined benefit pension and post-retirement costs		19			1,020			2,544			3,239
	Loss on disposal of property, plant and equipment		608			603			617			446
			26,143			43,175			178,309			158,193
Net changes in balances related to operations:
	Trade and other receivables		(5,385	)		11,812			(14,740	)		15,384
	Inventories		(34,064	)		(16,577	)		(74,305	)		(18,900	)
	Other financial assets		1,315			164			886			3,060
	Prepaid expenses		3,875			(1,324	)		506			(5,803	)
	Other assets		(4,864	)		(485	)		665			(3,095	)
	Trade and other payables		52,250			13,511			68,683			14,337
	Net pension and post-retirement defined benefit liabilities		(867	)		(964	)		(3,622	)		(3,025	)
	Provisions, other financial liabilities and other long-term liabilities		(2,630	)		2,032			(11,232	)		6,976
			9,630			8,169			(33,159	)		8,934
	Income taxes paid		(3,203	)		(5,378	)		(25,057	)		(17,173	)
	Income taxes received		174			973			7,014			12,793
	Interest paid		(7,210	)		(10,229	)		(26,148	)		(18,936	)
	Interest received		114			82			689			469
CASH PROVIDED BY OPERATING ACTIVITIES			25,648			36,792			101,648			144,280
FINANCING ACTIVITIES
	Bank indebtedness		(8,952	)		2,067			(41,483	)		20,442
	Increase of long-term debt		142,950			(7,481	)		249,033			18,195
	Repayments of long-term debt		(689	)		(1,236	)		(26,926	)		(14,243	)
	Repayments of written put option liabilities		(1,600	)		-			(1,600	)		(1,995	)
	Financing costs		(5,356	)		(23	)		(6,740	)		(562	)
	Share repurchase		-			-			-			(321	)
	Issuance of share capital		191			315			7,241			6,740
	Dividends on common shares		(9,694	)		(9,572	)		(38,651	)		(38,185	)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES			116,850			(15,930	)		140,874			(9,929	)
INVESTING ACTIVITIES
	Acquisition of businesses		(115,808	)		-			(170,551	)		(71,924	)
	Additions to property, plant and equipment		(9,697	)		(12,322	)		(35,745	)		(41,801	)
	Disposals of property, plant and equipment		41			65			903			410
	Additions to intangible assets		(5,840	)		(4,679	)		(22,109	)		(20,489	)
CASH USED IN INVESTING ACTIVITIES			(131,304	)		(16,936	)		(227,502	)		(133,804	)
	Effect of foreign currency exchange rate changes on cash and cash equivalents		297			(847	)		(7,993	)		1,216
NET INCREASE IN CASH AND CASH EQUIVALENTS			11,491			3,079			7,027			1,763
Cash and cash equivalents, beginning of period			35,610			36,995			40,074			38,311
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	47,101		$	40,074		$	47,101		$	40,074

DOREL INDUSTRIES INC.

INDUSTRY SEGMENTED INFORMATION

FOURTH QUARTERS ENDED DECEMBER 30

ALL FIGURES IN THOUSANDS OF US $

(unaudited)

		Total							Dorel Juvenile						Dorel Sports				Dorel Home Furnishings
			2014			2013			2014			2013			2014		2013			2014		2013
						Restated						Restated					Restated
Total revenue (1)		$	701,002		$	633,534		$	289,236		$	255,254		$	260,083	$	245,465		$	151,683	$	132,815
Cost of sales (1)			558,057			492,777			220,214			181,809			203,193		193,604			134,650		117,364
Gross profit			142,945			140,757			69,022			73,445			56,890		51,861			17,033		15,451
Selling expenses			60,678			58,522			32,020			28,609			24,490		25,715			4,168		4,198
General and administrative expenses			51,144			45,936			25,927			20,299			18,498		20,333			6,719		5,304
Research and development expenses			11,858			10,625			9,077			8,079			1,872		1,601			909		945
Restructuring and other costs (1)			9,503			7,709			7,070			(1,930	)		2,433		9,639			-		-
Impairment losses on goodwill and trademarks			125,821			-			125,821			-			-		-			-		-
Operating profit (loss)			(116,059	)		17,965		$	(130,893	)	$	18,388		$	9,597	$	(5,427	)	$	5,237	$	5,004
Finance expenses			(20,466	)		1,595
Corporate expenses			7,358			5,407
Income taxes			(22,202	)		(61	)
Net income (loss)		$	(80,749	)	$	11,024
Earnings (loss) per share
	Basic		($2.50	)		$0.35
	Diluted		($2.50	)		$0.34
Depreciation and amortization included in operating profit (loss)		$	20,883		$	15,363		$	16,050		$	10,337		$	3,891	$	4,040		$	942	$	986
(1) Restructuring and other costs charged to:
Total revenue		$	600		$	-		$	600		$	-		$	-	$	-		$	-	$	-
Cost of sales			6,218			4,075			6,218			-			-		4,075			-		-
Expenses			9,503			7,709			7,070			(1,930	)		2,433		9,639			-		-
		$	16,321		$	11,784		$	13,888		$	(1,930	)	$	2,433	$	13,714		$	-	$	-

DOREL INDUSTRIES INC.

INDUSTRY SEGMENTED INFORMATION

FOR THE YEARS ENDED DECEMBER 30

ALL FIGURES IN THOUSANDS OF US $

(unaudited)

		Total						Dorel Juvenile					Dorel Sports			Dorel Home Furnishings
			2014			2013		2014			2013		2014		2013		2014		2013
						Restated					Restated				Restated
Total revenue (1)		$	2,677,554		$	2,435,449	$	1,070,513		$	992,882	$	1,053,183	$	918,744	$	553,858	$	523,823
Cost of sales (1)			2,072,230			1,875,737		779,135			711,259		806,451		706,859		486,644		457,619
Gross profit			605,324			559,712		291,378			281,623		246,732		211,885		67,214		66,204
Selling expenses			232,843			229,274		117,959			110,721		98,631		102,581		16,253		15,972
General and administrative expenses			190,883			172,908		93,069			84,264		74,720		68,054		23,094		20,590
Research and development expenses			36,111			32,905		25,229			22,960		7,049		6,295		3,833		3,650
Restructuring and other costs (1)			18,781			19,575		8,338			6,520		10,443		13,055		-		-
Impairment losses on goodwill and trademarks			125,821			-		125,821			-		-		-		-		-
Operating profit (loss)			885			105,050	$	(79,038	)	$	57,158	$	55,889	$	21,900	$	24,034	$	25,992
Finance expenses			8,073			18,665
Corporate expenses			22,741			23,732
Income taxes			(8,660	)		4,984
Net income (loss)		$	(21,269	)	$	57,669
Earnings (loss) per share
	Basic		($0.66	)		$1.81
	Diluted		($0.66	)		$1.79
Depreciation and amortization included in operating profit (loss)		$	65,261		$	56,096	$	46,407		$	40,026	$	14,596	$	11,857	$	4,258	$	4,213
(1) Restructuring and other costs charged to:
Total revenue		$	600		$	-	$	600		$	-	$	-	$	-	$	-	$	-
Cost of sales			7,393			4,075		6,218			-		1,175		4,075		-		-
Expenses			18,781			19,575		8,338			6,520		10,443		13,055		-		-
		$	26,774		$	23,650	$	15,156		$	6,520	$	11,618	$	17,130	$	-	$	-