COLMAR, PA--(Marketwire - October 30, 2009) - Dorman Products, Inc. (
Revenues for the three months ended September 26, 2009 increased 8.2% over the prior year, excluding the impact of foreign currency exchange. Reported sales for the three months ended September 26, 2009, were up 7.5% to $98.0 million from $91.2 million last year. For the nine months ended September 26, 2009 revenues before the impact of exchange and the sale of our Canadian business were up 9.1% while reported sales for the nine month period rose 7.3% to $280.7 million from $261.6 million last year. Revenue growth in both periods was driven by strong overall demand for our products and higher new product sales.
Net income in the third quarter of 2009 was $7.9 million compared to net income of $5.0 million in the same period last year. Diluted earnings per share in the third quarter of 2009 rose 57% to $0.44 compared to $0.28 in the same period last year. Net income in the first nine months of 2009 was $18.8 million compared to net income of $13.0 million in the same period last year. Diluted earnings per share in the nine months ended September 26, 2009 were up 44% to $1.04 from $0.72 last year.
For the thirteen weeks ended September 26, 2009 and September 27, 2008:
-- Gross profit margin was 36.0% in 2009 compared to 32.4% in the
prior year. The increase is primarily 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 in 2009 increased 6.2%
to $22.3 million from $21.0 million in 2008. The increase is the
result of higher new product development and quality control
spending and increased incentive compensation expense due to higher
earnings levels, offset partially by lower operating costs in most
other areas due to cost reduction initiatives.
-- Interest expense, net, decreased to $0.1 million in 2009 from $0.2
million in 2008 due to lower borrowing levels and interest rates.
-- Our effective tax rate decreased slightly to 38.6% from 38.9% in the
prior year.
Mr. Richard Berman, Chairman and Chief Executive Officer, said, "Dorman sales increases continue to be driven by new product growth. This growth is fueled by Dorman's recent new product successes and strong market acceptance of our new product lines and line extensions. The strength of our balance sheet has allowed us to continue to fund these growth opportunities. Our recent decision to move to a four-month distribution cycle for our Service Dealer Guide, which highlights many of these new products, will help increase awareness of the new items to our customers and end users. We look forward to showcasing some of our new product opportunities for our customers during next week's AAPEX Show."
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
------------------- ------------------
Third Quarter (unaudited) 9/26/09 Pct. 9/27/08 Pct.
Net sales $ 98,007 100.0 $ 91,202 100.0
Cost of goods sold 62,710 64.0 61,697 67.6
Gross profit 35,297 36.0 29,505 32.4
Selling, general and
administrative expenses 22,318 22.8 21,010 23.1
Income from operations 12,979 13.2 8,495 9.3
Interest expense, net 52 - 221 0.2
Income before income taxes 12,927 13.2 8,274 9.1
Provision for income taxes 4,994 5.1 3,226 3.6
Net income $ 7,933 8.1 $ 5,048 5.5
Earnings per share
Basic $ 0.45 - $ 0.29 -
Diluted $ 0.44 - $ 0.28 -
Average shares outstanding
Basic 17,657 - 17,660 -
Diluted 17,998 - 18,046 -
39 Weeks 39 Weeks
------------------- ------------------
Third Quarter (unaudited) 9/26/09 Pct. 9/27/08 Pct.
Net sales $280,680 100.0 $261,638 100.0
Cost of goods sold 184,958 65.9 177,265 67.8
Gross profit 95,722 34.1 84,373 32.2
Selling, general and
administrative expenses 65,003 23.2 62,463 23.8
Income from operations 30,719 10.9 21,910 8.4
Interest expense, net 204 - 774 0.3
Income before income taxes 30,515 10.9 21,136 8.1
Provision for income taxes 11,757 4.2 8,173 3.1
Net income $ 18,758 6.7 $ 12,963 5.0
Earnings per share
Basic $ 1.06 - $ 0.73 -
Diluted $ 1.04 - $ 0.72 -
Average shares outstanding
Basic 17,647 - 17,684 -
Diluted 17,976 - 18,059 -
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
9/26/09 12/27/08
Assets:
Cash and cash equivalents $ 5,697 $ 5,824
Accounts receivable 88,553 77,101
Inventories 95,593 93,577
Deferred income taxes 11,796 11,626
Prepaid expenses 1,895 2,135
Total current assets 203,534 190,263
Property & equipment 25,377 25,053
Goodwill 26,553 26,553
Other assets 2,020 1,553
Total assets $257,484 $243,422
Liability & Shareholders' Equity:
Current portion of long-term debt $ 6,039 $ 86
Accounts payable 20,265 21,900
Accrued expenses and other 11,553 8,040
Total current liabilities 37,857 30,026
Long-term debt and other 2,564 17,464
Deferred income taxes 8,771 8,088
Shareholders' equity 208,292 187,844
Total Liabilities and Equity $257,484 $243,422
Selected Cash Flow Information:
(in thousands) 13 Weeks (unaudited) 39 Weeks (unaudited)
-------------------- --------------------
9/26/09 9/27/08 9/26/09 9/27/08
Depreciation and amortization $ 2,027 $ 1,893 $ 5,774 $ 5,707
Capital Expenditures $ 2,358 $ 2,189 $ 5,926 $ 5,792