SOURCE: Dorman Products, Inc.

October 30, 2009 06:00 ET

Dorman Products, Inc. Reports Sales and Earnings for the Third Quarter Ended September 26, 2009

COLMAR, PA--(Marketwire - October 30, 2009) - Dorman Products, Inc. (NASDAQ: DORM) today announced financial results for the third quarter ended September 26, 2009.

Revenues for the three months ended September 26, 2009 increased 8.2% over the prior year, excluding the impact of foreign currency exchange. Reported sales for the three months ended September 26, 2009, were up 7.5% to $98.0 million from $91.2 million last year. For the nine months ended September 26, 2009 revenues before the impact of exchange and the sale of our Canadian business were up 9.1% while reported sales for the nine month period rose 7.3% to $280.7 million from $261.6 million last year. Revenue growth in both periods was driven by strong overall demand for our products and higher new product sales.

Net income in the third quarter of 2009 was $7.9 million compared to net income of $5.0 million in the same period last year. Diluted earnings per share in the third quarter of 2009 rose 57% to $0.44 compared to $0.28 in the same period last year. Net income in the first nine months of 2009 was $18.8 million compared to net income of $13.0 million in the same period last year. Diluted earnings per share in the nine months ended September 26, 2009 were up 44% to $1.04 from $0.72 last year.

    For the thirteen weeks ended September 26, 2009 and September 27, 2008:
    -- Gross profit margin was 36.0% in 2009 compared to 32.4% in the
       prior year. The increase is primarily the result of lower warranty
       and product return costs along with a reduction in freight expenses
       and certain material costs.
    -- Selling, general and administrative expenses in 2009 increased 6.2%
       to $22.3 million from $21.0 million in 2008.  The increase is the
       result of higher new product development and quality control
       spending and increased incentive compensation expense due to higher
       earnings levels, offset partially by lower operating costs in most
       other areas due to cost reduction initiatives.
    -- Interest expense, net, decreased to $0.1 million in 2009 from $0.2
       million in 2008 due to lower borrowing levels and interest rates.
    -- Our effective tax rate decreased slightly to 38.6% from 38.9% in the
       prior year.

Mr. Richard Berman, Chairman and Chief Executive Officer, said, "Dorman sales increases continue to be driven by new product growth. This growth is fueled by Dorman's recent new product successes and strong market acceptance of our new product lines and line extensions. The strength of our balance sheet has allowed us to continue to fund these growth opportunities. Our recent decision to move to a four-month distribution cycle for our Service Dealer Guide, which highlights many of these new products, will help increase awareness of the new items to our customers and end users. We look forward to showcasing some of our new product opportunities for our customers during next week's AAPEX Show."

Dorman Products, Inc. is a leading supplier of OE Dealer "Exclusive" automotive replacement parts, automotive hardware, brake products, and household hardware to the Automotive Aftermarket and Mass Merchandise markets. Dorman products are marketed under the Dorman®, OE Solutions ™, HELP!®, AutoGrade™, First Stop™, Conduct-Tite®, Symmetry® and Scan-Tech® brand names.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. Factors that could cause actual results to differ materially include, but are not limited to, those factors discussed in the Company's 2008 Annual Report on Form 10-K under Item 1A - Risk Factors.

                  DORMAN PRODUCTS, INC. AND SUBSIDIARIES
                   Consolidated Statements of Operations
                 (in thousands, except per-share amounts)

                                    13 Weeks               13 Weeks
                              -------------------     ------------------
Third Quarter (unaudited)      9/26/09       Pct.      9/27/08      Pct.
Net sales                     $ 98,007      100.0     $ 91,202     100.0
Cost of goods sold              62,710       64.0       61,697      67.6
Gross profit                    35,297       36.0       29,505      32.4
Selling, general and
 administrative expenses        22,318       22.8       21,010      23.1
Income from operations          12,979       13.2        8,495       9.3
Interest expense, net               52          -          221       0.2
Income before income taxes      12,927       13.2        8,274       9.1
Provision for income taxes       4,994        5.1        3,226       3.6
Net income                    $  7,933        8.1     $  5,048       5.5
Earnings per share
     Basic                    $   0.45          -     $   0.29         -
     Diluted                  $   0.44          -     $   0.28         -
Average shares outstanding
     Basic                      17,657          -       17,660         -
     Diluted                    17,998          -       18,046         -

                                    39 Weeks               39 Weeks
                              -------------------     ------------------
Third Quarter (unaudited)      9/26/09       Pct.      9/27/08      Pct.
Net sales                     $280,680      100.0     $261,638     100.0
Cost of goods sold             184,958       65.9      177,265      67.8
Gross profit                    95,722       34.1       84,373      32.2
Selling, general and
 administrative expenses        65,003       23.2       62,463      23.8
Income from operations          30,719       10.9       21,910       8.4
Interest expense, net              204          -          774       0.3
Income before income taxes      30,515       10.9       21,136       8.1
Provision for income taxes      11,757        4.2        8,173       3.1
Net income                    $ 18,758        6.7     $ 12,963       5.0
Earnings per share
     Basic                    $   1.06          -     $   0.73         -
     Diluted                  $   1.04          -     $   0.72         -
Average shares outstanding
     Basic                      17,647          -       17,684         -
     Diluted                    17,976          -       18,059         -




                  DORMAN PRODUCTS, INC. AND SUBSIDIARIES
                   Condensed Consolidated Balance Sheets
                               (Unaudited)
                              (in thousands)

                                        9/26/09           12/27/08
Assets:
Cash and cash equivalents              $  5,697           $  5,824
Accounts receivable                      88,553             77,101
Inventories                              95,593             93,577
Deferred income taxes                    11,796             11,626
Prepaid expenses                          1,895              2,135
Total current assets                    203,534            190,263
Property & equipment                     25,377             25,053
Goodwill                                 26,553             26,553
Other assets                              2,020              1,553
Total assets                           $257,484           $243,422

Liability & Shareholders' Equity:
Current portion of long-term debt      $  6,039           $     86
Accounts payable                         20,265             21,900
Accrued expenses and other               11,553              8,040
Total current liabilities                37,857             30,026
Long-term debt and other                  2,564             17,464
Deferred income taxes                     8,771              8,088
Shareholders' equity                    208,292            187,844
Total Liabilities and Equity           $257,484           $243,422



Selected Cash Flow Information:
(in thousands)                  13 Weeks (unaudited)   39 Weeks (unaudited)
                                --------------------   --------------------
                                9/26/09      9/27/08   9/26/09      9/27/08
Depreciation and amortization   $ 2,027      $ 1,893   $ 5,774      $ 5,707
Capital Expenditures            $ 2,358      $ 2,189   $ 5,926      $ 5,792