Dorel Industries Inc.

Thank you for standing by.

Welcome to Durrell Industries' fourth quarter 2020 year-over-year. The revenue and organic growth was in juvenile, which was partially offset by the decline in Durrell Home. Gross profits for the quarter increased by $42.2 million, or 147%. The gross margin in the fourth quarter was 20.2%, coming back from last year's abysmal 8.4%. The marked improvement in gross product was in both the juvenile and the home. In juvenile, you know, it was based on lower product costs, better product and overhead absorption, improved product mix, and some foreign exchange gains. On the home side, the improvement was due to lower product costs as well and some increased factory absorption from slightly improved domestic manufacturing activity. For the Total operating loss of $7.4 million compared to $40.7 million in 2022. Excluding restructuring costs, adjusted operating loss for the quarter decreased by $36.2 million to a loss of $2.9 from $39.1 last year. Finance expenses in the quarter decreased by $800,000 to $6 million. The rates, obviously, the rates are higher, but the amount we borrowed was less. Net losses from continuing operations during the quarter, the net loss from continuing operations, $3.8 million, or $0.12 per diluted share compared to $41.4 or $1.27 last year. And then excluding restructuring costs for the quarter, it was... income of one cent per diluted share versus a loss last year of $1.22 per share. Moving over to the juvenile, as Martin said, we continue to move forward in that division. We're pleased with the progress. Revenue increased by $23 million or 12.2% to $212 million this year. Organic revenue improved by 9.3% after removing the impact of exchange rates. The improvement in the revenue and both revenue and organic revenue was in the majority of the markets with the most significant contributor being the US and Europe. In the US, the increases across all brands and all product categories. Europe experienced double digit revenue growth in the quarter for the third sequential quarter in a row. A lot of that again has to do with the new product launches that we launched in the second quarter of 2023. Gross profit in the segment for the fourth quarter was 33.7 million, or 110 percent better than last year. The gross margin was 30.4 percent, representing an improvement of 1,420 basis points from last year's 16.2. Again, lower product costs led that. Last year, in 22, we had much higher freight, better overhead absorption, and then improved margins from the increased sale of new products. And that's a key element that we're going to continue to push. As we introduce more successful new products, they generally come at higher gross margins. So for the whole quarter, we... The juvenile business had an operating profit of $11.3 million for the quarter versus a loss of $23.5 last year. In excluding restructuring costs, we actually increased by $34.7 million to an operating profit of $12.9. Moving over to the home, unfortunately, revenue declined by $12.7 million, or 8.4%. to 138.6 million. The decline in the revenue is mainly explained by the online sales from just lower demand and a more difficult condition. That's partially offset by the increase in sales in the brick and mortar channel. The increased sales in brick and mortar, you know, is due to, I believe, people coming back to the stores. It's due to increased order replenishment because point-of-sale sales, POS sales, were far exceeded the replenishment orders in the previous few months. So the inventories at the retail levels have really come down, and now the retailers have started to order in a level similar to the POS. Gross profit for the quarter in-home increased by 8.5 million, or 416 percent. Gross margins for the quarter were 4.7, an improvement of 610 basis points from an actual 1.4 percent loss. The increase in gross profits and gross margin in the quarter were mainly due to lower product costs, raw material costs, freight, et cetera. And then sales of a smaller proportion of older higher-cost items that were no longer in our inventory by the fourth quarter. You know, that was always a burden throughout most of the year, that high-cost inventory that had come in in 2022, and that's been reduced significantly. Margins were also positively impacted by slightly better domestic manufacturing activity. That's slowly picking up as well. And, you know, basically gross margins in the second half of the year were much higher than the first half of the year. Overall, we did still have a loss. The loss declined by $5.5 million for the quarter to an operating loss of $12.8 million from 18.3 the previous year. If we exclude restructuring costs, the operating loss declined $8.5 million. to 9.8 versus the 18.3. If we talk a little bit before I finish about the restructuring costs, so we basically total for the quarter was about six, was about four and a half million of cost. A lot of it, most of it was in the home side, the majority of it. MAYBE ABOUT TWO-THIRDS OF IT. WE BASICALLY RESTRUCTURED IN A WAY WHERE WE COMBINED A COUPLE OF OUR OPERATING UNITS UNDER ONE OPERATING UNIT AND REDUCED, YOU KNOW, REDUCED STAFF AND, YOU KNOW, OVERALL IN THOSE TWO DIVISIONS AS WE MOVED THEM TOGETHER. THERE WAS A LITTLE BIT AS WELL IN THE JUVENILE SIDE. WE'RE EXPECTING benefits of about six and a half million. That should appear throughout the year of 2024. So we're expecting to see sort of a return on that right away. With that, I will pass it back to Martin.

Okay, thank you, Jeffrey. I'll now ask the operator to open the lines for questions. And as always, request that you please limit them to two on the first round Operator.