COLMAR, PA--(Marketwire - Nov 1, 2012) - Dorman Products, Inc. (
Third Quarter Highlights:
- Revenue increased 20% to a record $156.4 million; twelfth consecutive quarter of double digit sales growth.
- Net income from continuing operations increased 32% to $19.8 million, or $0.54 per diluted share.
- Operating margin increased to 19.9% from 17.9% during the same period last year.
Dorman Products, Inc. (
Gross profit margin was 38.2% for the third quarter ended September 29, 2012 compared to 37.2% for the same period last year. The increase in margin percent is primarily the result of a favorable change in sales mix, lower transportation costs and lower provisions for excess and obsolete inventory. Selling, general and administrative expenses increased 14% in 2012 to $28.6 million from $25.2 million in 2011, but were down as a percentage of sales to 18.3% in 2012 from 19.3% in 2011. Cost increases were primarily the result of higher variable costs, additional product development spending and increased incentive compensation expense.
For the nine months ended September 29, 2012, revenues from continuing operations increased 15% over the prior year to $435.4 million from $377.8 million last year. Net income from continuing operations in 2012 increased 25% to $51.2 million from $41.0 million in the same period last year. Diluted earnings per share from continuing operations in 2012 rose 24% to $1.40 from $1.13 in the same period last year. Operating cash flow in 2012 was $28.6 million compared to $30.6 million in 2011.
"Our growing pipeline of new and recently-introduced new products continues to fuel our revenue growth. We have introduced nearly 2,500 new parts in 2012, of which over 630 of these were formerly dealer-only parts. We appreciate the continued acceptance of these new products by our customers and end users, and look forward to creating even more new revenue opportunities in the future," said Mr. Steven Berman, Chairman and Chief Executive Officer. "Additionally, we are gaining traction in our Dorman HD Solutions™ initiative launched in January, with over 200 formerly dealer-only parts available for immediate shipment to customers. Feedback from customers and end users has been positive. We remain committed to driving growth in this channel as well."
During 2012, we liquidated our Swedish business, the results of which are presented as discontinued operations. The 2012 results include a $3.0 million non-cash currency translation gain and $1.5 million in benefits from foreign tax credits as a result of the liquidation.
Prior year earnings per share and weighted average share information have been adjusted to reflect the 2-for-1 stock split that occurred in June 2012.
Dorman Products, Inc. is a leading supplier of 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®, renew™, TECHoice™, Dorman HD Solutions™ and Symmetry® brand names.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "demonstrate," "expect," "estimate," "forecast," "anticipate," "should" and "likely" and similar expressions identify forward-looking statements. In addition, statements that are not historical should also be considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, competition in the automotive aftermarket industry, concentration of the Company's sales and accounts receivable among a small number of customers, the impact of consolidation in the automotive aftermarket industry, foreign currency fluctuations, dependence on senior management and other risks detailed in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2011. The Company is under no obligation to (and expressly disclaims any such obligation to) update any of the information in this press release if any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise.
| DORMAN PRODUCTS, INC. AND SUBSIDIARIES |
| Consolidated Statements of Operations |
| (in thousands, except per-share amounts) |
| 13 Weeks | 13 Weeks | |||||||||||
| Third Quarter (unaudited) | 9/29/12 | Pct. | 9/24/11 | Pct. | ||||||||
| Net sales | $ | 156,411 | 100.0 | $ | 130,576 | 100.0 | ||||||
| Cost of goods sold | 96,665 | 61.8 | 81,979 | 62.8 | ||||||||
| Gross profit | 59,746 | 38.2 | 48,597 | 37.2 | ||||||||
| Selling, general and administrative expenses | 28,615 | 18.3 | 25,195 | 19.3 | ||||||||
| Income from operations | 31,131 | 19.9 | 23,402 | 17.9 | ||||||||
| Interest expense, net | 38 | - | 12 | - | ||||||||
| Income from continuing operations before income taxes | 31,093 | 19.9 | 23,390 | 17.9 | ||||||||
| Provision for income taxes | 11,337 | 7.3 | 8,374 | 6.4 | ||||||||
| Net income from continuing operations | 19,756 | 12.6 | 15,016 | 11.5 | ||||||||
| Net income (loss) from discontinued operations | 586 | - | (3,516 | ) | - | |||||||
| Net income | $ | 20,342 | - | $ | 11,500 | - | ||||||
| Diluted earnings (loss) per share: | ||||||||||||
| Continuing operations | $ | 0.54 | - | $ | 0.41 | - | ||||||
| Discontinued operations | 0.02 | - | (0.09 | ) | - | |||||||
| Diluted earnings per share | $ | 0.56 | - | $ | 0.32 | - | ||||||
| Weighted average diluted shares outstanding | 36,622 | - | 36,418 | - | ||||||||
| DORMAN PRODUCTS, INC. AND SUBSIDIARIES |
| Consolidated Statements of Operations |
| (in thousands, except per-share amounts) |
| 39 Weeks | 39 Weeks | |||||||||||
| Third Quarter (unaudited) | 9/29/12 | Pct. | 9/24/11 | Pct. | ||||||||
| Net sales | $ | 435,406 | 100.0 | $ | 377,790 | 100.0 | ||||||
| Cost of goods sold | 272,038 | 62.5 | 238,753 | 63.2 | ||||||||
| Gross profit | 163,368 | 37.5 | 139,037 | 36.8 | ||||||||
| Selling, general and administrative expenses | 82,103 | 18.8 | 75,122 | 19.9 | ||||||||
| Income from operations | 81,265 | 18.7 | 63,915 | 16.9 | ||||||||
| Interest expense, net | 90 | 0.1 | 95 | - | ||||||||
| Income from continuing operations before income taxes | 81,175 | 18.6 | 63,820 | 16.9 | ||||||||
| Provision for income taxes | 30,019 | 6.9 | 22,775 | 6.0 | ||||||||
| Net income from continuing operations | 51,156 | 11.7 | 41,045 | 10.9 | ||||||||
| Net income (loss) from discontinued operations | 4,506 | - | (4,412 | ) | - | |||||||
| Net income | $ | 55,662 | - | $ | 36,633 | - | ||||||
| Diluted earnings (loss) per share: | ||||||||||||
| Continuing operations | $ | 1.40 | - | $ | 1.13 | - | ||||||
| Discontinued operations | 0.13 | - | (0.12 | ) | - | |||||||
| Diluted earnings per share | $ | 1.53 | - | $ | 1.01 | - | ||||||
| Weighted average diluted shares outstanding | 36,489 | - | 36,365 | - | ||||||||
| DORMAN PRODUCTS, INC. AND SUBSIDIARIES |
| Condensed Consolidated Balance Sheets |
| (Unaudited) |
| (in thousands) |
| 9/29/12 | 12/31/11 | |||||
| Assets: | ||||||
| Cash and cash equivalents | $ | 66,071 | $ | 50,196 | ||
| Accounts receivable | 140,556 | 124,324 | ||||
| Inventories | 134,302 | 115,845 | ||||
| Deferred income taxes | 18,589 | 17,127 | ||||
| Prepaid expenses | 3,792 | 2,661 | ||||
| Total current assets | 363,310 | 310,153 | ||||
| Property & equipment | 47,369 | 38,904 | ||||
| Goodwill | 26,553 | 26,553 | ||||
| Other assets | 1,436 | 1,083 | ||||
| Total assets | $ | 438,668 | $ | 376,693 | ||
| Liabilities & Shareholders' Equity: | ||||||
| Accounts payable | $ | 38,728 | $ | 31,646 | ||
| Accrued expenses and other | 13,005 | 12,907 | ||||
| Total current liabilities | 51,733 | 44,553 | ||||
| Other long-term liabilities | 3,058 | 3,406 | ||||
| Deferred income taxes | 11,531 | 11,631 | ||||
| Shareholders' equity | 372,346 | 317,103 | ||||
| Total Liabilities and Equity | $ | 438,668 | $ | 376,693 | ||
| Selected Cash Flow Information: | ||||||||||||
| (in thousands) | 13 Weeks (unaudited) | 39 Weeks (unaudited) | ||||||||||
| 9/29/12 | 9/24/11 | 9/29/12 | 9/24/11 | |||||||||
| Depreciation and amortization | $ | 2,017 | $ | 1,984 | $ | 5,973 | $ | 5,710 | ||||
| Capital expenditures | $ | 4,983 | $ | 4,522 | $ | 14,437 | $ | 14,914 | ||||