COLMAR, PA--(Marketwire - February 23, 2010) - Dorman Products, Inc. (
Revenues for the three months ended December 26, 2009 increased 20% over the prior year to $96.7 million from $80.7 million last year. For the year ended December 26, 2009, revenues were up 10% to $377.4 million from $342.3 million. Revenue growth in both periods was driven by strong overall demand for our products and higher new product sales.
Reported net income in the fourth quarter of 2009 was up 57% to $7.7 million from $4.9 million in the same period last year. Reported diluted earnings per share in the fourth quarter of 2009 rose 59% to $0.43 from $0.27 in the same period last year. Excluding the impact of the one-time item shown in the reconciliation of non-GAAP measures below, net income in the fourth quarter of 2009 was up 83% to $7.7 million from $4.2 million in the same period last year and diluted EPS in the fourth quarter of 2009 increased 87% to $0.43 from $0.23 in the same period last year.
Reported net income for the year ended December 26, 2009 was up 49% to $26.5 million from $17.8 million in the same period last year. Reported diluted earnings per share for the year ended December 26, 2009 were up 48% to $1.47 from $0.99 last year. Excluding the impact of the one-time item shown in the reconciliation of non-GAAP measures below, net income in 2009 was up 55% to $26.5 million from $17.1 million in the same period last year and diluted EPS in 2009 increased 55% to $1.47 from $0.95 in the same period last year.
For the year ended December 26, 2009 and December 27, 2008:
-- Gross profit margin was 34.9% in 2009 compared to 32.2% in 2008. The
increase in margin is the result of lower warranty and product return
costs along with a reduction in freight expenses and certain material
costs.
-- Selling, general and administrative expenses increased 7.7% in 2009 to
$88.1 million from $81.8 million in 2008, but was down as a percentage
of sales from 23.9% in 2008 to 23.3% in 2009. The spending increase
was the result of higher variable costs related to our sales increase
as well as increased new product development spending and higher
incentive compensation expense due to higher earnings levels.
-- Interest expense, net, decreased to $0.3 million in 2009 from $0.9
million in 2008 due to lower borrowing levels and interest rates.
-- Our effective tax rate increased to 38.8% from 35.2% in the prior year.
The increase is the result of a $0.7 million tax benefit realized in
2008 upon the disposition of our Canadian Subsidiary and higher
provisions for state income taxes in 2009.
-- Operating cash flow for 2009 increased $17.9 million to $27.6 million
from $9.7 million in 2008. The increased cash flow enabled us to
decrease total debt by $15.1 million during 2009. Total debt
outstanding as of December 26, 2009 was only $0.4 million.
Mr. Richard Berman, Chairman and Chief Executive Officer, said, "Revenue growth in 2009 was just over 10% and was driven primarily by continued strong acceptance and market penetration of our new product lines and line extensions. Our 2010 plan provides for further investment in our new product capabilities. We look forward to sharing the new products generated by these investments with our customers and end users as the year progresses."
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 2008 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) 12/26/09 Pct. 12/27/08 Pct.
-------- -------- -------- --------
Net sales $ 96,698 100.0 $ 80,687 100.0
Cost of goods sold 60,634 62.7 54,875 68.0
Gross profit 36,064 37.3 25,812 32.0
Selling, general and
administrative expenses 23,114 23.9 19,318 24.0
Income from operations 12,950 13.4 6,494 8.0
Interest expense, net 139 0.2 146 0.1
Income before income taxes 12,811 13.2 6,348 7.9
Provision for income taxes 5,074 5.2 1,498 1.9
Net income $ 7,737 8.0 $ 4,850 6.0
Earnings per share
Basic $ 0.44 - $ 0.27 -
Diluted $ 0.43 - $ 0.27 -
Average shares outstanding
Basic 17,683 - 17,649 -
Diluted 18,024 - 18,018 -
52 Weeks 52 Weeks
-------- --------
Year to Date (unaudited) 12/26/09 Pct. 12/27/08 Pct.
-------- -------- -------- --------
Net sales $377,378 100.0 $342,325 100.0
Cost of goods sold 245,592 65.1 232,140 67.8
Gross profit 131,786 34.9 110,185 32.2
Selling, general and
administrative expenses 88,117 23.3 81,781 23.9
Income from operations 43,669 11.6 28,404 8.3
Interest expense, net 343 0.1 920 0.3
Income before income taxes 43,326 11.5 27,484 8.0
Provision for income taxes 16,831 4.5 9,671 2.8
Net income $ 26,495 7.0 $ 17,813 5.2
Earnings per share
Basic $ 1.50 - $ 1.01 -
Diluted $ 1.47 - $ 0.99 -
Average shares outstanding
Basic 17,658 - 17,675 -
Diluted 17,996 - 18,049 -
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
12/26/09 12/27/08
--------- ---------
Assets:
Cash and cash equivalents $ 10,626 $ 5,824
Accounts receivable 88,164 77,101
Inventories 89,927 93,577
Deferred income taxes 12,620 11,626
Prepaid expenses 2,248 2,135
Total current assets 203,585 190,263
Property & equipment 25,218 25,053
Goodwill 26,553 26,553
Other assets 2,046 1,553
Total assets $ 257,402 $ 243,422
Liability & Shareholders' Equity:
Current portion of long-term debt $ 90 $ 86
Accounts payable 16,098 21,900
Accrued expenses and other 14,244 8,040
Total current liabilities 30,432 30,026
Long-term debt and other 2,941 17,464
Deferred income taxes 8,694 8,088
Shareholders' equity 215,335 187,844
Total Liabilities and Equity $ 257,402 $ 243,422
Selected Cash Flow Information:
(in thousands) 13 Weeks (unaudited) 52 Weeks (unaudited)
-------------------- --------------------
12/26/09 12/27/08 12/26/09 12/27/08
Depreciation and amortization $2,061 $1,965 $7,835 $7,672
Capital Expenditures $1,904 $1,531 $7,830 $7,323
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
(in thousands, except per-share amounts)
This press release contains non-GAAP measures which adjust net income and diluted earnings per share to exclude the impact of the following one-time items:
-- Results for the thirteen weeks and year ended December 27, 2008
include a $0.7 million tax benefit realized upon the disposition
of our Canadian subsidiary.
The presentation of these non-GAAP measures is intended to enhance the usefulness of the financial information by providing measures which the Company's management uses internally to evaluate the Company's baseline performance. A reconciliation of net income and diluted earnings per share follows:
13 Weeks (unaudited)
---------------------------
12/26/09 12/27/08 % Change
Net income, as reported $ 7,737 $ 4,850 59.5%
Less: Tax benefit upon diposition of
subsidiary - (673) N/A
--------- -------- --------
Net income, as adjusted $ 7,737 $ 4,177 85.2%
========= ======== ========
Diluted EPS, as reported $ 0.43 $ 0.27 59.3%
Less: Tax benefit upon diposition of
subsidiary - (0.04) N/A
--------- -------- --------
Diluted EPS, as adjusted $ 0.43 $ 0.23 87.0%
========= ======== ========
52 Weeks (unaudited)
---------------------------
12/26/09 12/27/08 % Change
Net income, as reported $ 26,495 $ 17,813 48.7%
Less: Tax benefit upon diposition of
subsidiary - (673) N/A
--------- -------- --------
Net income, as adjusted $ 26,495 $ 17,140 54.6%
========= ======== ========
Diluted EPS, as reported $ 1.47 $ 0.99 48.5%
Less: Tax benefit upon diposition of
subsidiary - (0.04) N/A
--------- -------- --------
Diluted EPS, as adjusted $ 1.47 $ 0.95 54.7%
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