COLMAR, PA--(Marketwired - Apr 30, 2013) - - Dorman Products, Inc. (
FIRST QUARTER HIGHLIGHTS
- Sales increased 15% to $154.4 million
- Net income from continuing operations increased 25% to $19.1 million, or $0.52 per diluted share.
- Operating margin increased to 19.4% from 18.1% during the same period last year
Dorman Products, Inc. (
"We are pleased that the operating results of the Company have returned to levels more in line with our expectations after the flat fourth quarter of 2012. Our growth continues to be fueled by recently introduced new products developed as a result of past investments," said Mr. Steven Berman, Chairman and Chief Executive Officer.
Gross profit margin was 39.4% for the first quarter ended March 30, 2013 compared to 37.4% for the same period last year. The increase in margin percent was primarily the result of a favorable change in sales mix toward higher margin new product, and lower product and transportation costs. Selling, general and administrative expenses increased 19% in 2013 to $30.9 million from $26.1 million in 2012. Cost increases were primarily the result of higher variable costs associated with the 15% sales growth, additional product development and selling expenses, and depreciation and other related support costs associated with our recent enterprise reporting system implementation.
"Our Dorman HD Solutions™ initiative continues to gain traction. We currently have over 250 parts available, including 37 new parts released in 2013. In addition, we have approximately 200 new parts in various stages of development, approximately 50 of which should be released by the end of the year. These new product releases and further penetration of existing SKU's with our customers will allow this initiative to be a meaningful contributor to the overall business in the next few years," said Mr. Berman.
During 2012, we liquidated our Swedish business, the results of which are presented as discontinued operations.
Prior year earnings per share and weighted average share information have been adjusted to reflect the 2-for-1 stock split paid on June 25, 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 29, 2012. 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 | ||||||||||
| First Quarter (unaudited) | 3/30/13 | Pct. | 3/31/12 | Pct. | |||||||
| Net sales | $ | 154,443 | 100.0 | $ | 134,823 | 100.0 | |||||
| Cost of goods sold | 93,619 | 60.6 | 84,347 | 62.6 | |||||||
| Gross profit | 60,824 | 39.4 | 50,476 | 37.4 | |||||||
| Selling, general and administrative expenses | 30,916 | 20.0 | 26,069 | 19.3 | |||||||
| Income from operations | 29,908 | 19.4 | 24,407 | 18.1 | |||||||
| Interest expense, net | 48 | 0.1 | 14 | - | |||||||
| Income from continuing operations before income taxes | 29,860 | 19.3 | 24,393 | 18.1 | |||||||
| Provision for income taxes | 10,788 | 7.0 | 9,099 | 6.8 | |||||||
| Net income from continuing operations | 19,072 | 12.3 | 15,294 | 11.3 | |||||||
| Net income from discontinued operations | - | - | 284 | 0.3 | |||||||
| Net income | $ | 19,072 | 12.3 | $ | 15,578 | 11.6 | |||||
| Diluted earnings per share: | |||||||||||
| Continuing operations | $ | 0.52 | - | $ | 0.42 | - | |||||
| Discontinued operations | - | - | 0.01 | - | |||||||
| Diluted earnings per share | $ | 0.52 | - | $ | 0.43 | - | |||||
| Weighted average dilutedshares outstanding | 36,627 | - | 36,501 | - | |||||||
| DORMAN PRODUCTS, INC. AND SUBSIDIARIES | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (Unaudited) | ||||||
| (in thousands) | ||||||
| 3/30/13 | 12/29/12 | |||||
| Assets: | ||||||
| Cash and cash equivalents | $ | 35,149 | $ | 27,708 | ||
| Accounts receivable | 146,009 | 133,806 | ||||
| Inventories | 141,872 | 145,270 | ||||
| Deferred income taxes | 20,799 | 20,559 | ||||
| Prepaid expenses | 1,830 | 2,332 | ||||
| Total current assets | 345,659 | 329,675 | ||||
| Property & equipment | 49,336 | 48,758 | ||||
| Goodwill | 26,553 | 26,553 | ||||
| Other assets | 1,399 | 1,323 | ||||
| Total assets | $ | 422,947 | $ | 406,309 | ||
| Liabilities & Shareholders' Equity: | ||||||
| Accounts payable | $ | 37,835 | $ | 42,387 | ||
| Accrued expenses and other | 16,602 | 14,924 | ||||
| Total current liabilities | 54,437 | 57,311 | ||||
| Other long-term liabilities | 4,074 | 3,447 | ||||
| Deferred income taxes | 12,539 | 12,679 | ||||
| Shareholders' equity | 351,897 | 332,872 | ||||
| Total liabilities and equity | $ | 422,947 | $ | 406,309 | ||
| Selected Cash Flow Information (unaudited): | |||||||
| (in thousands) | 13 Weeks | 13 Weeks | |||||
| 3/30/13 | 3/31/12 | ||||||
| Depreciation and amortization | $ | 2,268 | $ | 1,953 | |||
| Capital expenditures | $ | 2,846 | $ | 4,495 | |||