MONTRÉAL, Sept. 29, 2025 (GLOBE NEWSWIRE) -- Dorel Industries Inc. (TSX: DII.B, DII.A) announced today that it completed the closing of its previously-announced new credit facilities with a group of lenders led by affiliates of TCW Asset Management Company LLC (“TCW”), as administrative agent, in an amount of US $310 million, and a private placement with Alberta Investment Management Corporation (“AIMCo”) of preferred shares in an amount of US $75 million. “Dorel is very pleased to complete these two transa ...

Core Viewpoint - Dorel Industries Inc. is finalizing new credit facilities and a private placement of preferred shares to strengthen its financial position and support restructuring efforts [1][2]. Financing Details - Dorel is securing up to $310 million in new credit facilities, which includes a $175 million revolving facility and a $135 million term loan, with a five-year term [4]. - The proceeds will be used to repay approximately $180 million of current senior secured debt, cover restructuring costs, and provide working capital [2]. Preferred Shares - Dorel will issue preferred shares to Alberta Investment Management Corporation (AIMCo) with an initial annual dividend yield of 17%, increasing by 1.5% on the third and fourth anniversaries, capped at 20% [5][6]. - The preferred shares will be redeemable under certain conditions, including a sale of Dorel or significant asset transfers [6]. Warrants Issuance - Dorel will issue warrants to lenders and AIMCo, representing 5% and 8% of the outstanding shares, respectively, with an exercise price of CAD $0.01 for seven years [7][8]. - The total number of warrants issued will be 4,881,261, representing 14.94% of Dorel's issued and outstanding shares [9]. Shareholder Approval - The issuance of warrants requires shareholder approval due to the significant discount from the current trading price, with written consents obtained from shareholders holding over 50% of the voting rights [10]. Regulatory Compliance - The securities issued will be subject to a four-month hold period under Canadian securities regulations [11]. Advisory Information - TD Securities Inc. is the exclusive financial advisor for the debt financing, while BMO Capital Markets is acting as a placement agent for the preferred shares [12]. Company Profile - Dorel Industries operates in juvenile products and home products, with annual sales of $1.3 billion and approximately 3,500 employees across 22 countries [13].

Core Insights - Dorel Industries Inc. reported a significant decline in revenue for the second quarter of 2025, with total revenue of US$292.4 million, down 16.0% from US$348.1 million in the same period last year [2][5] - The company experienced a reported net loss of US$44.9 million or US$1.38 per diluted share, an improvement from a net loss of US$59.5 million or US$1.83 per diluted share in the previous year [2][5] - Adjusted net loss for the second quarter was US$21.1 million or US$0.65 per diluted share, compared to US$13.6 million or US$0.42 per diluted share last year, indicating a 55.7% increase in adjusted net loss [2][5] Financial Performance - For the six months ended June 30, 2025, revenue was US$612.8 million, down 12.3% from US$699.1 million in the prior year [3][10] - Reported net loss for the six months was US$70.2 million or US$2.15 per diluted share, compared to US$77.1 million or US$2.37 per diluted share a year ago, reflecting an 8.9% improvement [3][10] - Adjusted net loss for the six months was US$44.8 million or US$1.37 per diluted share, up from US$30.5 million or US$0.94 per diluted share last year, marking a 47.0% increase [3][10] Segment Performance - Dorel Juvenile showed strong performance in the second quarter, with revenue of US$218.1 million, a slight increase of 0.8% year-over-year, driven by growth in international markets [4][13] - Dorel Home faced significant challenges, with revenue dropping 43.5% to US$74.3 million due to reduced e-commerce sales and ongoing product availability issues [15][19] - The Home segment's adjusted operating loss for the quarter was US$12.7 million, compared to US$8.3 million in the same period last year, indicating a 52.5% increase in losses [20][15] Restructuring and Strategic Initiatives - Dorel announced an expanded restructuring plan on June 30, 2025, including the closure of its Cornwall, Ontario manufacturing facility to reduce costs and streamline operations [21][22] - The restructuring is expected to yield benefits starting in the fourth quarter of 2025, with a full impact anticipated in 2026 [4][26] - The company is also working on exiting non-core product categories and consolidating warehouse operations to improve efficiency [21][22] Financing and Liquidity - On August 7, 2025, Dorel amended its asset-backed loan facility, gaining access to an additional US$20.0 million in liquidity to finance new inventory [23][24] - The company is in the process of re-capitalizing its balance sheet to support growth in the Juvenile segment and facilitate the reorganization of the Home segment [24][23] Outlook - Dorel expects continued improvement in earnings for the Juvenile segment, supported by its global footprint and domestic manufacturing capabilities [25][26] - The Home segment is entering a critical phase of transformation, with a focus on executing structural changes initiated in 2025 [26][27]

Group 1 - Dorel Industries Inc. has amended its asset backed loan (ABL) and term loan facilities, extending the forbearance period to September 16, 2025, allowing the company to avoid immediate enforcement actions by lenders due to a default related to financial covenants [1] - The company will receive an additional US$20.0 million in liquidity under the ABL facility to finance new inventory, while the total maximum availability under the ABL facility has been reduced to US$150.0 million [1] - As of June 30, 2025, Dorel had approximately US$92.0 million in borrowings outstanding under the ABL facility [1] Group 2 - Dorel is collaborating with two leading capital market advisors to restructure its balance sheet, aiming to support growth in the Juvenile segment and reorganize the Home segment [2] - The new structure is intended to replace the existing debt structure, which is no longer aligned with the company's needs [2] - Dorel will provide updates to stakeholders as developments occur [2] Group 3 - Dorel Industries Inc. operates in two distinct business segments: juvenile products and home products, with annual sales of US$1.3 billion and approximately 3,500 employees across 22 countries [3] - The company’s juvenile product brands include Maxi-Cosi, Safety 1st, and Tiny Love, along with regional brands such as BebeConfort and Cosco [3] - Dorel Home markets a wide range of furniture through its comprehensive e-commerce platform [3]

Group 1 - Dorel Industries Inc. has amended its asset backed loan (ABL) and term loan facilities, extending the forbearance period to September 16, 2025, allowing the company to avoid immediate enforcement actions by lenders due to a default related to financial covenants [1] - The company will receive an additional US$20.0 million in liquidity under the ABL facility to finance new inventory, while the total maximum availability under the ABL facility has been reduced to US$150.0 million [1] - As of June 30, 2025, Dorel had approximately US$92.0 million in borrowings outstanding under the ABL facility [1] Group 2 - Dorel is collaborating with two leading capital market advisors to restructure its balance sheet, aiming to support growth in the Juvenile segment and reorganize the Home segment [2] - The new financial structure is intended to replace the existing debt structure, which is no longer aligned with the company's operational needs [2] Group 3 - Dorel Industries operates in two distinct segments: juvenile products and home products, with annual sales of US$1.3 billion and approximately 3,500 employees across 22 countries [3] - The company’s juvenile product brands include Maxi-Cosi, Safety 1st, and Tiny Love, while Dorel Home offers a wide range of furniture through its e-commerce platform [3]

Core Viewpoint - Dorel Industries Inc. is undergoing a strategic shift to reduce the size of its Home segment, aiming for profitability by 2026 through a streamlined product line and the cessation of domestic manufacturing operations in North America [2][6][12] Business Operations Update - The Home segment will focus on profitable categories and eliminate unprofitable product lines, with a significant reduction in inventory planned by year-end [7][8] - Dorel Home is merging its sales, marketing, and product development with the successful Cosco division, transferring select high-performing SKUs to enhance efficiency [3][4] - The decision to cease manufacturing in North America is supported by an external review, expected to yield substantial savings and eliminate losses from domestic operations [6][12] Financial Performance - The restructuring is anticipated to improve earnings by the fourth quarter of 2025, with detailed cost and savings estimates to be provided in the upcoming earnings release [9] - Dorel Juvenile continues to show year-over-year earnings improvement, positioning the company for above-average earnings relative to peers [8][11] Long-Term Strategy - The company is engaging capital market advisors to re-capitalize its balance sheet, facilitating growth in the Juvenile segment and supporting the Home segment's reorganization [10][11] - The changes represent a significant shift in the company's operations, with a focus on returning to profitability and maintaining positive momentum in the Juvenile segment [12]

Corporate Governance - Dorel Industries Inc. announced the re-election of all nominees listed in its Management Proxy Circular during the Annual Meeting of Shareholders held on May 28, 2025 [1] - The election results showed that Martin Schwartz received 49,852,869 votes (85.73% for), while Maurice Tousson received 46,500,967 votes (79.97% for) [1] Auditors - Shareholders reappointed KPMG LLP as Dorel's auditors during the same meeting [2] Company Profile - Dorel Industries Inc. operates in two distinct business segments: juvenile products and home products, with annual sales of US$1.4 billion [3] - The company employs approximately 3,600 people across facilities in twenty-two countries, highlighting its global presence [3] - Dorel Juvenile's brands include Maxi-Cosi, Safety 1st, and Tiny Love, while Dorel Home focuses on a wide assortment of furniture marketed through a comprehensive e-commerce platform [3]

Company Overview - Dorel Industries Inc. operates two distinct businesses: juvenile products and home products [3] - The company has annual sales of US$1.4 billion and employs approximately 3,600 people across 22 countries [3] - Dorel Juvenile's brands include global names like Maxi-Cosi, Safety 1st, and Tiny Love, along with regional brands such as BebeConfort, Cosco, Mother's Choice, and Infanti [3] - Dorel Home markets a wide assortment of domestically produced and imported furniture through a comprehensive e-commerce platform [3] Shareholder Engagement - Shareholders are invited to participate in a live audio webcast for the annual meeting [2] - Questions can be submitted to senior management via email, with a deadline for submission set for May 23, 2025 [2]

Company Overview - Dorel Industries Inc. operates two distinct businesses: juvenile products and home products [3] - The company has annual sales of US$1.4 billion and employs approximately 3,600 people across 22 countries [3] - Dorel Juvenile's brands include global names like Maxi-Cosi, Safety 1st, and Tiny Love, along with regional brands such as BebeConfort, Cosco, Mother's Choice, and Infanti [3] - Dorel Home markets a wide assortment of domestically produced and imported furniture through a comprehensive e-commerce platform [3] Shareholder Engagement - Shareholders are invited to participate in a live audio webcast for the annual meeting [2] - Questions can be submitted to senior management via email, with a deadline for submission set for May 23, 2025 [2]

Core Insights - Dorel Industries Inc. reported a first-quarter revenue of US$320.5 million, a decrease of 8.7% from US$351.1 million a year ago, with a net loss of US$25.3 million compared to a loss of US$17.6 million in the same period last year [2][35][26] - Dorel Juvenile experienced organic revenue growth of 1.5%, driven by strong performance in the Maxi-Cosi brand, while Dorel Home faced significant challenges with a 24.4% decline in revenue due to lower e-commerce sales [3][10][13] Financial Performance - The first quarter net loss was US$25.3 million or US$0.77 per diluted share, compared to a net loss of US$17.6 million or US$0.54 per diluted share a year ago [2][35] - Adjusted net loss for the quarter was US$23.6 million or US$0.72 per diluted share, compared to US$16.9 million or US$0.52 per diluted share for the same quarter last year [2][35] - Dorel Juvenile's revenue was US$215.9 million, a 1.5% increase year-over-year, while Dorel Home's revenue was US$104.6 million, a decrease of 24.4% [9][15] Segment Analysis - Dorel Juvenile's gross profit increased to US$58.8 million, with a gross margin of 27.3%, up from 26.5% the previous year [10][37] - Dorel Home reported a gross profit of US$1.3 million, with a significantly reduced gross margin of 1.2%, down from 8.5% in the prior year [13][39] - The operating loss for Dorel Home was US$11.5 million, compared to a loss of US$3.6 million in the previous year, indicating a 223.2% increase in losses [13][39] Market Conditions - The U.S. dollar's weakening against other major currencies positively impacted Dorel Juvenile's earnings [3] - Dorel Home's e-commerce sales were significantly lower than expected, prompting a reassessment of the channel's potential [3][15] - The company is facing challenges due to high tariffs on imported goods, particularly affecting the Home segment, where approximately 35% of sales are sourced from China [11][18] Restructuring and Future Outlook - Dorel is implementing further restructuring in the Home segment to address lower-than-expected sales and margin levels, including merging sales and marketing functions with the successful Cosco division [20][21] - The company anticipates that the domestic manufacturing capabilities in the Juvenile segment could provide a competitive advantage amid ongoing tariff challenges [12][26] - The outlook remains uncertain due to the current tariff situation, with expectations of continued challenges in the Home segment [25][26]