Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the third quarter and nine months ended September 30, 2016. Third quarter revenue was US$671.3 million, down 1.2% from US$679.3 million from the corresponding quarter last year. Adjusted net income was US$20.6 million or US$0.63 per diluted share, compared to adjusted net income of US$15.5 million or US$0.48 per diluted share a year ago. Reported net income was US$15.9 million or US$0.49 per diluted share, compared to a reported net loss of US$8.8 million or US$0.27 per diluted share last year.

For the nine months, revenue was US$1.95 billion, a decrease of 3.0% compared to US$2.01 billion last year. Adjusted net income increased to US$54.9 million or US$1.68 per diluted share, compared to adjusted net income of US$43.9 million or US$1.35 per diluted share a year ago. Reported net loss year-to-date was US$6.0 million or US$0.19 per diluted share, compared to net income of US$19.1 million or US$0.59 per diluted share in 2015.

The Company is presenting adjusted financial information, excluding the impairment losses on goodwill and intangible assets, restructuring, 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 the press release and the third quarter includes restructuring, other costs and losses on the remeasurement of forward purchase agreement liabilities totaling US$6.4 million pre-tax or US$0.14 per diluted share. Contained within this press release are reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

“Third quarter earnings improvements were led by on-going gains at Dorel Home Furnishings, higher gross margins at Dorel Juvenile, as well as a strong performance at Pacific Cycle and reduced bicycle industry discounting at Cycling Sports Group (CSG). In addition, the progress during the first nine months in all of our businesses has bolstered our financial position. Year-over-year nine month cash flows from operating activities improved by US$93.5 million, due primarily to enhanced management of our inventory levels. This has resulted in a significant strengthening in our financial position,” commented Martin Schwartz, Dorel President and CEO.