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: