Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the fourth quarter and year ended December 30, 2016. Revenue for the fourth quarter was US$648.7 million down 3.0% from US$668.9 million a year ago. Adjusted net income for the fourth quarter was US$7.7 million or US$0.24 per diluted share compared to adjusted net income of US$14.1 million or US$0.43 per diluted share in the fourth quarter of 2015. Reported net loss for the quarter was US$5.6 million or US$0.17 per diluted share compared to reported net income of US$6.6 million or US$0.20 per diluted share a year ago.

Revenue for the full year was US$2.60 billion, down 3.0% from US$2.68 billion the previous year. Adjusted net income for the year rose slightly to US$58.3 million or US$1.79 per diluted share compared to adjusted net income of US$58.0 million or US$1.78 per diluted share in 2015. Reported net loss was US$11.6 million or US$0.36 per diluted share, compared to reported net income of US$25.7 million or US$0.79 per diluted share the previous year.

The Company is presenting adjusted financial information, excluding impairment losses on goodwill and intangible assets, restructuring and other costs and remeasurement of forward purchase agreement liabilities, as it believes this provides a more meaningful comparison of its core business performance between the periods presented. These previously announced items are detailed in the attached tables of this press release. The fourth quarter reported net loss included restructuring and other costs and loss on remeasurement of forward purchase agreement liabilities totaling US$18.1 million pre-tax or US$0.41 per diluted share. Excluding these items, adjusted income before income taxes was US$1.0 million compared to US$11.0 million a year ago. Contained within this press release are reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

The Company strengthened its statement of financial position throughout the year with cash provided by operating activities generating US$171.9 million, compared to US$78.7 million last year. Lowering inventory levels has been a prime focus, contributing to the improved cash flow. Year-over-year, the Company’s net debt position (defined as long-term debt and bank indebtedness less cash and cash equivalents) has been reduced by approximately US$96.0 million. As a result, the indebtedness to adjusted EBITDA ratio improved to 2.28 from 3.06 in 2015 as detailed in the attached tables of this press release.

“Our management teams successfully navigated through challenging conditions in several markets in 2016. I am pleased with the results achieved across our business units. There was notable progress in inventory control and cash flow management. As such, we are considerably less leveraged than a year ago. It was another breakout year for Dorel Home and the segment has evolved from a traditional furniture company to one that understands today’s marketplace with a best-in-class technological distribution platform for home products. Dorel Juvenile is changing to become more proactive in responding to industry trends, returning to its entrepreneurial origins. Management is simplifying the organization, concentrating on projects that generate profitable short-term revenue and materially accelerating our time to market. Despite the reduced top line at Dorel Sports, efforts at mitigating the headwinds in bikes were successful as fourth quarter adjusted operating profit increased almost 11%,” stated Martin Schwartz, Dorel President and CEO.