COLMAR, PA--(Marketwired - Feb 19, 2014) - Dorman Products, Inc. (
Fourth Quarter Highlights:
- Sales increased 26% to $169.8 million.
- Income from continuing operations increased 35% to $20.6 million, or $0.56 per diluted share.
- Operating margin increased to 18.6% from 17.0% during the same period last year.
Dorman Products, Inc. (
"We are pleased to once again report strong double digit sales growth this quarter. Our growth continues to be driven by strong demand for our new products. Revenue from products introduced in the last 24 months accounted for nearly 23% of sales in the fourth quarter," said Mr. Steven Berman, Chairman and Chief Executive Officer. "I would like to thank all of our contributors for their outstanding execution from idea to invoice, and our customers and end-users for their continued support of all our products."
Gross profit margin was 38.9% for the fourth quarter ended December 28, 2013 compared to 38.4% 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 products. Selling, general and administrative expenses increased 19% in the fourth quarter of 2013 to $34.5 million from $28.9 million in the fourth quarter of 2012. Cost increases were primarily the result of higher variable costs associated with the 26% sales growth, additional product development spending and increased incentive compensation.
For the fiscal year ended December 28, 2013, sales increased 16% over the prior year to $664.5 million from $570.4 million last year. Net income from continuing operations in 2013 increased 23% to $81.9 million from $66.4 million in the prior year. Diluted earnings per share from continuing operations in 2013 rose 23% to $2.24 from $1.82 in the prior year. Operating cash flow in 2013 was $61.6 million compared to $48.9 million in 2012.
"This year marked our 5th consecutive year of double digit sales and earnings growth, and our 13th consecutive year of sales growth. Our continued commitment to our 'New to the Aftermarket' initiative resulted in the introduction of 20% more new parts in 2013, including 873 'Formerly Dealer Only' parts which were not previously available in the aftermarket," said Mr. Berman. "We continued to invest in our new product capabilities in 2013 as our research and development spending increased 28% during the year. These investments will help support our long-term goal of driving low double-digit sales and earnings growth."
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®, TECHoice™, Dorman® Hybrid Drive Batteries and Dorman HD Solutions™ 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 | |||||||||
| Fourth Quarter (unaudited) | 12/28/13 | Pct. | 12/29/12 | Pct. | ||||||
| Net sales | $ | 169,809 | 100.0 | $ | 135,014 | 100.0 | ||||
| Cost of goods sold | 103,724 | 61.1 | 83,173 | 61.6 | ||||||
| Gross profit | 66,085 | 38.9 | 51,841 | 38.4 | ||||||
| Selling, general and administrative expenses | 34,478 | 20.3 | 28,875 | 21.4 | ||||||
| Income from operations | 31,607 | 18.6 | 22,966 | 17.0 | ||||||
| Interest expense, net | 41 | - | 33 | - | ||||||
| Income from continuing operations before income taxes | 31,566 | 18.6 | 22,933 | 17.0 | ||||||
| Provision for income taxes | 10,947 | 6.5 | 7,684 | 5.7 | ||||||
| Income from continuing operations | 20,619 | 12.1 | 15,249 | 11.3 | ||||||
| Income from discontinued operations | - | - | 51 | - | ||||||
| Net income | $ | 20,619 | - | $ | 15,300 | - | ||||
| Diluted earnings per share: | ||||||||||
| Continuing operations | $ | 0.56 | - | $ | 0.42 | - | ||||
| Discontinued operations | - | - | - | - | ||||||
| Net income | $ | 0.56 | - | $ | 0.42 | - | ||||
| Weighted average diluted shares outstanding | 36,552 | - | 36,609 | - | ||||||
| DORMAN PRODUCTS, INC. AND SUBSIDIARIES | ||||||||||
| Consolidated Statements of Operations | ||||||||||
| (in thousands, except per-share amounts) | ||||||||||
| 52 Weeks | 52 Weeks | |||||||||
| Year Ended (unaudited) | 12/28/13 | Pct. | 12/29/12 | Pct. | ||||||
| Net sales | $ | 664,466 | 100.0 | $ | 570,420 | 100.0 | ||||
| Cost of goods sold | 403,498 | 60.7 | 355,211 | 62.3 | ||||||
| Gross profit | 260,968 | 39.3 | 215,209 | 37.7 | ||||||
| Selling, general and administrative expenses | 133,029 | 20.0 | 110,978 | 19.4 | ||||||
| Income from operations | 127,939 | 19.3 | 104,231 | 18.3 | ||||||
| Interest expense, net | 189 | 0.1 | 123 | - | ||||||
| Income from continuing operations before income taxes | 127,750 | 19.2 | 104,108 | 18.3 | ||||||
| Provision for income taxes | 45,830 | 6.9 | 37,703 | 6.7 | ||||||
| Income from continuing operations | 81,920 | 12.3 | 66,405 | 11.6 | ||||||
| Income from discontinued operations | - | - | 4,557 | - | ||||||
| Net income | $ | 81,920 | - | $ | 70,962 | - | ||||
| Diluted earnings per share: | ||||||||||
| Continuing operations | $ | 2.24 | - | $ | 1.82 | - | ||||
| Discontinued operations | - | - | 0.12 | - | ||||||
| Net income | $ | 2.24 | - | $ | 1.94 | - | ||||
| Weighted average diluted shares outstanding | 36,624 | - | 36,494 | - | ||||||
| DORMAN PRODUCTS, INC. AND SUBSIDIARIES | |||||
| Condensed Consolidated Balance Sheets | |||||
| (Unaudited) | |||||
| (in thousands) | |||||
| 12/28/13 | 12/29/12 | ||||
| Assets: | |||||
| Cash and cash equivalents | $ | 60,593 | $ | 27,708 | |
| Accounts receivable | 180,777 | 140,180 | |||
| Inventories | 164,421 | 145,270 | |||
| Deferred income taxes | 20,798 | 20,559 | |||
| Prepaid expenses | 5,851 | 2,332 | |||
| Total current assets | 432,440 | 336,049 | |||
| Property & equipment | 64,786 | 48,758 | |||
| Goodwill and other intangible assets | 30,089 | 26,553 | |||
| Other assets | 1,854 | 1,323 | |||
| Total assets | $ | 529,169 | $ | 412,683 | |
| Liabilities & Shareholders' Equity: | |||||
| Accounts payable | $ | 61,255 | $ | 42,387 | |
| Accrued expenses and other | 30,483 | 21,298 | |||
| Total current liabilities | 91,738 | 63,685 | |||
| Other long-term liabilities | 5,310 | 3,447 | |||
| Deferred income taxes | 18,480 | 12,679 | |||
| Shareholders' equity | 413,641 | 332,872 | |||
| Total Liabilities and Equity | $ | 529,169 | $ | 412,683 | |
| Selected Cash Flow Information (unaudited): | ||||||||||||
| (in thousands) | 13 Weeks | 13 Weeks | 52 Weeks | 52 Weeks | ||||||||
| 12/28/13 | 12/29/12 | 12/28/13 | 12/29/12 | |||||||||
| Depreciation and amortization | $ | 2,742 | $ | 2,252 | $ | 10,159 | $ | 8,225 | ||||
| Capital expenditures | $ | 11,717 | $ | 3,641 | $ | 24,666 | $ | 18,078 | ||||