MONTRÉAL, Jan. 26, 2021 (GLOBE NEWSWIRE) — Dorel Industries Inc. (TSX: DII.B, DII.A) (“Dorel”) declares that it intends to attraction a call of the Luxembourg Administrative Tribunal acquired on January 22, 2021 with respect to taxation on the switch of sure property in reference to an inner company reorganization that occurred in 2015. The choice of the Luxembourg Administrative Tribunal concluded, in impact, that considered one of Dorel’s wholly-owned subsidiaries owes €46.8 million (euros) in tax (US $56.9 million) plus relevant curiosity.
Dorel considers that the switch of property was not taxable and intends to attraction the choice to the Luxembourg Administrative Courtroom. Dorel is assured that it has robust grounds for the attraction and that the attraction shall be profitable, though no assurances will be given on this regard. Dorel expects that the attraction shall be heard, and a judgment rendered, later this 12 months. After session with its skilled advisors, Dorel accrued US$2.5 million in its 2018 annual monetary statements as its greatest estimate for this potential tax legal responsibility.
About Dorel Industries Inc.
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world group, working three distinct companies in juvenile merchandise, bicycles and residential merchandise. Dorel’s power lies within the variety, innovation and high quality of its merchandise in addition to the prevalence of its manufacturers. Dorel Juvenile’s powerfully branded merchandise embody international manufacturers Maxi-Cosi, Quinny and Tiny Love, complemented by regional manufacturers equivalent to Security 1st, Bébé Confort, Cosco and Infanti. Dorel Sports activities manufacturers embody Cannondale, Schwinn, GT, Mongoose, Caloi and IronHorse. Dorel Dwelling, with its complete e-commerce platform, markets a large assortment of domestically produced and imported furnishings. Dorel has annual gross sales of US $2.6 billion and employs roughly 8,000 individuals in amenities positioned in 25 international locations worldwide.
Warning Relating to Ahead-Wanting Statements
Sure statements included on this press launch, together with statements referring to the attraction referred to above, might represent “forward-looking statements” throughout the that means of relevant Canadian securities laws. Besides as could also be required by Canadian securities legal guidelines, Dorel doesn’t undertake any obligation to replace or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case. Ahead-looking statements, by their very nature, are topic to quite a few dangers and uncertainties, together with statements concerning the influence of the COVID-19 pandemic on Dorel’s enterprise, monetary place and operations, and are based mostly on a number of assumptions which give rise to the chance that precise outcomes might differ materially from Dorel’s expectations expressed in or implied by such forward-looking statements and that the goals, plans, strategic priorities and enterprise outlook is probably not achieved. In consequence, Dorel can not assure that any forward-looking assertion will materialize, or if any of them do, what advantages Dorel will derive from them. Ahead-looking statements are offered on this press launch for the aim of giving details about administration’s present expectations and plans and permitting traders and others to get a greater understanding of Dorel’s working atmosphere. Nonetheless, readers are cautioned that it is probably not applicable to make use of such forward-looking statements for another objective.
Ahead-looking statements made on this press launch, together with statements referring to the attraction referred to above, are based mostly on quite a lot of assumptions that Dorel believed had been cheap on the day it made the forward-looking statements. Elements that might trigger precise outcomes to vary materially from Dorel’s expectations expressed in or implied by the forward-looking statements embody:
- normal financial situations;
- modifications in product prices and provide channels, together with disruption of Dorel’s provide chain ensuing from the COVID-19 pandemic;
- overseas forex fluctuations, together with excessive ranges of volatility in foreign exchange with respect to the US greenback reflecting uncertainties associated to the COVID-19 pandemic;
- buyer and credit score threat, together with the focus of revenues with a small variety of prospects;
- prices related to product legal responsibility;
- modifications in revenue tax laws or the interpretation or software of these guidelines;
- the continued capacity to develop merchandise and assist model names;
- modifications within the regulatory atmosphere;
- outbreak of public well being crises, equivalent to the present COVID-19 pandemic, that might adversely have an effect on international economies and monetary markets, leading to an financial downturn which could possibly be for a chronic time frame and have a fabric adversarial impact on the demand for Dorel’s merchandise and on its enterprise, monetary situation and outcomes of operations;
- continued entry to capital assets, together with compliance by Dorel with monetary covenants underneath its senior unsecured notes, revolving financial institution loans and time period mortgage agreements, and the associated prices of borrowing, all of which can be adversely impacted by the COVID-19 pandemic;
- failures associated to info expertise programs;
- modifications in assumptions within the valuation of goodwill and different intangible property and future decline in market capitalization;
- there being no certainty that Dorel will declare any dividend sooner or later;
- the outcomes of the attraction to the Luxembourg Administrative Courtroom referred to above; and
- the failure to finish Dorel’s previously-announced going-private transaction.
These and different threat components that might trigger precise outcomes to vary materially from expectations expressed in or implied by the forward-looking statements are mentioned in Dorel’s annual MD&A and Annual Data Kind filed with the relevant Canadian securities regulatory authorities. The danger components set out within the previously-mentioned paperwork are expressly included by reference herein of their entirety.
Dorel cautions readers that the dangers described above usually are not the one ones that might influence it. Extra dangers and uncertainties not at present recognized to Dorel or that Dorel at present deems to be immaterial might also have a fabric adversarial impact on Dorel’s enterprise, monetary situation or outcomes of operations. Given these dangers and uncertainties, traders mustn’t place undue reliance on forward-looking statements as a prediction of precise outcomes.
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