SOURCE: Dorman Products, Inc.

February 22, 2011 06:00 ET

Dorman Products, Inc. Reports Sales and Earnings for the Fourth Quarter and Year Ended December 25, 2010

COLMAR, PA--(Marketwire - February 22, 2011) - Dorman Products, Inc. (NASDAQ: DORM) today announced financial results for the fourth quarter ended December 25, 2010.


Revenues for the three months ended December 25, 2010 increased 27% over the prior year to $122.5 million from $96.7 million last year. Net income in the fourth quarter of 2010 was $12.2 million compared to $7.7 million in the same period last year and diluted earnings per share rose 56% to $0.67 from $0.43 last year.

For the year ended December 25, 2010 and December 26, 2009:
--  Revenues in 2010 increased 20.8% over the prior year to $455.7 million
    from $377.4 million last year.  Revenue growth in both periods
    continues to be driven by strong overall demand for our products and
    higher new product sales.
--  Net income in 2010 was $46.1 million compared to $26.5 million last
    year, while diluted earnings per share rose 73% to $2.55 from $1.47.
--  Gross profit margin was 37.9% in 2010 compared to 34.9% in 2009. The
    increase in margin is the result of a reduction in certain material
    costs along with lower defective return costs.
--  Selling, general and administrative expenses increased 11.2% in 2010 to
    $98.0 million from $88.1 million in 2009, but were down as a percentage
    of sales from 23.3% in 2009 to 21.5% in 2010.  The spending increase
    was the result of higher variable costs related to our sales increase,
    increased new product development spending and a $1.0 million charge to
    write off certain intangible assets.  These increases were partially
    offset by lower operating expenses in most areas due to cost reduction
    initiatives.
--  Our effective tax rate decreased to 38.2% in 2010 from 38.8% in the
    prior year as a result of lower state income taxes.
--  Operating cash flow for 2010 was $30.7 million compared to $27.6
    million in 2009.

Mr. Steven Berman, Chairman and Chief Executive Officer, said, "Dorman's strong revenue and earnings growth in the fourth quarter and full year were driven by the introduction of a record number of new parts during 2010, and continued market penetration of formerly dealer-only products that were introduced in recent years. During 2010 we continued to invest in product development, engineering and sales resources. We expect these investments to further increase our industry-leading level of new product introductions in the years to come."

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 2009 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
                                      ----------------   ----------------
Fourth Quarter (unaudited)            12/25/10    Pct.   12/26/09    Pct.
Net sales                             $122,519   100.0   $ 96,698   100.0
Cost of goods sold                      75,890    61.9     60,634    62.7
Gross profit                            46,629    38.1     36,064    37.3
Selling, general and
 administrative expenses                27,040    22.1     23,114    23.9
Income from operations                  19,589    16.0     12,950    13.4
Interest expense, net                       29       -        139     0.2
Income before income taxes              19,560    16.0     12,811    13.2
Provision for income taxes               7,339     6.0      5,074     5.2
Net income                            $ 12,221    10.0   $  7,737     8.0
Earnings per share
     Basic                            $   0.69       -   $   0.44       -
     Diluted                          $   0.67       -   $   0.43       -
Average shares outstanding
     Basic                              17,821       -     17,683       -
     Diluted                            18,199       -     18,024       -


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

                                          52 Weeks           52 Weeks
                                      ----------------   ----------------
Fourth Quarter (unaudited)            12/25/10    Pct.   12/26/09    Pct.
Net sales                             $455,716   100.0   $377,378   100.0
Cost of goods sold                     282,858    62.1    245,592    65.1
Gross profit                           172,858    37.9    131,786    34.9
Selling, general and administrative
 expenses                               97,976    21.5     88,117    23.3
Income from operations                  74,882    16.4     43,669    11.6
Interest expense, net                      209       -        343     0.1
Income before income taxes              74,673    16.4     43,326    11.5
Provision for income taxes              28,535     6.3     16,831     4.5
Net income                            $ 46,138    10.1   $ 26,495     7.0
Earnings per share
     Basic                            $   2.60       -   $   1.50       -
     Diluted                          $   2.55       -   $   1.47       -
Average shares outstanding
     Basic                              17,767       -     17,658       -
     Diluted                            18,116       -     17,996       -





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

                                                 12/25/10    12/26/09
Assets:
Cash and cash equivalents                       $  30,463   $  10,626
Accounts receivable                               101,851      88,164
Inventories                                       120,433      89,927
Deferred income taxes                              12,135      12,620
Prepaid expenses                                    2,213       2,248
Total current assets                              267,095     203,585
Property & equipment                               28,790      25,218
Goodwill                                           26,553      26,553
Other assets                                          721       2,046
Total assets                                    $ 323,159   $ 257,402

Liabilities & Shareholders' Equity:
Current portion of long-term debt               $       -   $      90
Accounts payable                                   33,978      16,098
Accrued expenses and other                         14,182      14,244
Total current liabilities                          48,160      30,432
Long-term debt and other                            3,210       2,941
Deferred income taxes                               8,636       8,694
Shareholders' equity                              263,153     215,335
Total Liabilities and Equity                    $ 323,159   $ 257,402


Selected Cash Flow Information:
  (in thousands)                 13 Weeks (unaudited)  52 Weeks (Unaudited)
                                 --------------------  --------------------
                                 12/25/10    12/26/09  12/25/10    12/26/09
Depreciation and amortization    $  1,996    $  2,061  $  8,012    $  7,835
Capital Expenditures             $  4,266    $  1,904  $ 11,453    $  7,830