SOURCE: Dorman Products, Inc.

April 26, 2011 06:00 ET

Dorman Products, Inc. Reports Sales and Earnings for the First Quarter Ended March 26, 2011

COLMAR, PA--(Marketwire - Apr 26, 2011) - Dorman Products, Inc. (NASDAQ: DORM) today announced financial results for the first quarter ended March 26, 2011.

Revenues for the three months ended March 26, 2011 increased 26% over the prior year to $124.4 million from $99.0 million last year. Revenue growth was driven primarily by strong overall demand for our products and higher new product sales.

Net income in the first quarter of 2011 was up 29% to $12.4 million from $9.6 million in the same period last year. Diluted earnings per share in the first quarter of 2011 rose 28% to $0.68 from $0.53 in the same period last year.

For the thirteen weeks ended March 26, 2011 and March 27, 2010:

--  Gross profit margin was 36.5% in 2011 compared to 38.2% in 2010. The
    decrease in margin percent is the result of an increase in
    transportation costs and higher provisions for excess inventory.
--  Selling, general and administrative expenses increased 19% in 2011 to
    $26.2 million from $22.1 million in 2010, but were down as a percentage
    of sales from 22.3% in 2010 to 21.1% in 2011. The spending increase was
    the result of higher variable costs related to our sales increase,
    increased new product development spending and inflationary cost
    increases.
--  Our effective tax rate decreased to 35.2% from 38.5% in the prior year.
    The decrease is primarily the result of the 2011 receipt of tax-exempt
    life insurance proceeds used to fund an officer's death benefit.
--  Operating cash flow for 2011 was $9.2 million compared to $7.1 million
    in 2010.

Mr. Steven Berman, Chairman and Chief Executive Officer, said, "Our strong first quarter sales growth was driven by the continued success of our new product development efforts. Revenues from products introduced in the last two years topped 20% for the quarter. This is a direct result of our continued investments and the efforts from our dedicated, enthusiastic and knowledgeable contributors. We continue to commit additional resources to our New to the Aftermarket initiative -- during 2010 we increased the number of Dorman sales, engineering and product development professionals by 30%."

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™, 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 2010 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
                                      -----------------   -----------------
First Quarter (unaudited)             3/26/11      Pct.   3/27/10      Pct.
Net sales                             $124,374    100.0   $ 98,976    100.0
Cost of goods sold                      78,962     63.5     61,199     61.8
Gross profit                            45,412     36.5     37,777     38.2
Selling, general and
 administrative expenses                26,222     21.1     22,078     22.3
Income from operations                  19,190     15.4     15,699     15.9
Interest expense, net                       70        -         65      0.1
Income before income taxes              19,120     15.4     15,634     15.8
Provision for income taxes               6,734      5.4      6,019      6.1
Net income                            $ 12,386     10.0   $  9,615      9.7
Earnings per share:
     Basic                            $   0.69        -   $   0.54        -
     Diluted                          $   0.68        -   $   0.53        -
Average shares outstanding:
     Basic                              17,891        -     17,689        -
     Diluted                            18,227        -     18,061        -




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


                                                     3/26/11       12/25/10
Assets:
Cash and cash equivalents                           $  34,139     $  30,463
Accounts receivable                                   103,929       101,851
Inventories                                           124,900       120,433
Deferred income taxes                                  12,514        12,135
Prepaid expenses                                        2,261         2,213
Total current assets                                  277,743       267,095
Property & equipment                                   32,122        28,790
Goodwill                                               26,553        26,553
Other assets                                              705           721
Total assets                                        $ 337,123     $ 323,159

Liability & Shareholders' Equity:
Accounts payable                                    $  31,984     $  33,978
Accrued expenses and other                             16,003        14,182
Total current liabilities                              47,987        48,160
Other long-term liabilities                             4,232         3,210
Deferred income taxes                                   8,892         8,636
Shareholders' equity                                  276,012       263,153
Total Liabilities and Equity                        $ 337,123     $ 323,159


Selected Cash Flow Information:
     (in thousands)                            13 Weeks (unaudited)
                                              ----------------------
                                              3/26/11        3/27/10
Depreciation and amortization                  $1,859         $1,924
Capital Expenditures                           $5,154         $1,994

Contact Information

  • For Further Information Contact:
    Matthew S. Kohnke
    CFO
    (215) 997-1800 x 5182
    E-mail: Email Contact