COLMAR, PA--(Marketwire - October 26, 2010) - Dorman Products, Inc. (
Revenues for the three months ended September 25, 2010 increased 22% over the prior year to $119.2 million from $98.0 million last year. Net income in the third quarter of 2010 was up 60% to $12.8 million from $8.0 million in the same period last year. Diluted earnings per share rose 61% in the third quarter of 2010 to $0.71 from $0.44 last year.
For the thirty-nine weeks ended September 25, 2010 and September 26, 2009:
-- Revenues in 2010 increased 18.7% over the prior year to $333.2 million
from $280.7 million last year. Revenue growth was driven by strong
overall demand for our products and higher new product sales.
-- Net income in 2010 was up 80% to $33.9 million from $18.8 million last
year. Diluted earnings per share in 2010 rose 80% to $1.87 from $1.04
in 2009.
-- Gross profit margin was 37.9% in 2010 compared to 34.1% in 2009. The
increase in margin is the result of a reduction in freight expenses and
certain material costs, along with lower product return costs.
-- Selling, general and administrative expenses increased 9.1% in 2010 to
$70.9 million from $65.0 million in 2009, but were down as a percentage
of sales from 23.2% in 2009 to 21.3% in 2010. The spending increase
was the result of higher variable costs related to our sales increase,
increased new product development spending and higher incentive
compensation expense due to higher earnings levels. These increases
were partially offset by lower operating expenses in most areas due to
cost reduction initiatives.
-- Our effective tax rate remained constant at 38.5%.
-- Operating cash flow for 2010 was $14.9 million compared to $14.5
million in 2009.
Mr. Richard Berman, Chairman and Chief Executive Officer, said, "Our customers' success with our New to the Aftermarket products continues to drive Dorman's sales growth. We continue to make further investments in our new product development capabilities as we believe the opportunities for further growth are significant. As a result, we are planning on having the largest number of new product releases in our history in 2011, for both new and existing product lines. These investments along with the publication and distribution of our tri-annual Dorman Stocking Guide and our monthly new product alert program will help further support Dorman's leadership position in delivering new products and revenue growth to the Aftermarket."
We have begun an expansion of our Warsaw, Kentucky distribution facility to provide additional capacity to support current and projected future growth of the business. The addition and related equipment, which will cost approximately $9 million, will add approximately 175,000 square feet of warehouse space and is expected to be completed in the spring of 2011.
Mr. Steven Berman, President and Chief Operating Officer of Dorman Products, Inc., commented, "We are excited about the opportunity this expansion provides us to more effectively serve the needs of our customers in the automotive aftermarket. We continue to invest in the development and distribution of new products for our customers and the expansion of our Warsaw Distribution Center directly supports this objective."
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
------------------- --------------------
Third Quarter (unaudited) 9/25/10 Pct. 9/26/09 Pct.
Net sales $ 119,212 100.0 $ 98,007 100.0
Cost of goods sold 74,088 62.1 62,710 64.0
Gross profit 45,124 37.9 35,297 36.0
Selling, general and
administrative expenses 24,628 20.7 22,318 22.8
Income from operations 20,496 17.2 12,979 13.2
Interest expense, net 57 0.1 52 -
Income before income
taxes 20,439 17.1 12,927 13.2
Provision for income
taxes 7,622 6.3 4,994 5.1
Net income $ 12,817 10.8 $ 7,993 8.1
Earnings per share
Basic $ 0.72 - $ 0.45 -
Diluted $ 0.71 - $ 0.44 -
Average shares
outstanding
Basic 17,800 - 17,657 -
Diluted 18,176 - 17,998 -
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per-share amounts)
39 Weeks 39 Weeks
------------------- --------------------
Third Quarter (unaudited) 9/25/10 Pct. 9/26/09 Pct.
Net sales $ 333,196 100.0 $ 280,680 100.0
Cost of goods sold 206,967 62.1 184,958 65.9
Gross profit 126,229 37.9 95,722 34.1
Selling, general and
administrative expenses 70,936 21.3 65,003 23.2
Income from operations 55,293 16.6 30,719 10.9
Interest expense, net 180 0.1 204 -
Income before income
taxes 55,113 16.5 30,515 10.9
Provision for income
taxes 21,196 6.3 11,757 4.2
Net income $ 33,917 10.2 $ 18,758 6.7
Earnings per share
Basic $ 1.91 - $ 1.06 -
Diluted $ 1.87 - $ 1.04 -
Average shares
outstanding
Basic 17,749 - 17,647 -
Diluted 18,125 - 17,976 -
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
9/25/10 12/26/09
Assets:
Cash and cash equivalents $ 18,890 $ 10,626
Accounts receivable 113,775 88,164
Inventories 104,528 89,927
Deferred income taxes 13,351 12,620
Prepaid expenses 2,282 2,248
Total current assets 252,826 203,585
Property & equipment 26,499 25,218
Goodwill 26,553 26,553
Other assets 1,869 2,046
Total assets $ 307,747 $ 257,402
Liabilities & Shareholders' Equity:
Current portion of long-term debt $ 93 $ 90
Accounts payable 29,971 16,098
Accrued expenses and other 15,284 14,244
Total current liabilities 45,348 30,432
Long-term debt and other 3,069 2,941
Deferred income taxes 8,762 8,694
Shareholders' equity 250,568 215,335
Total Liabilities and Equity $ 307,747 $ 257,402
Selected Cash Flow
Information:
(in thousands) 13 Weeks (unaudited) 39 Weeks (Unaudited)
-------------------- --------------------
9/25/10 9/26/09 9/25/10 9/26/09
Depreciation and
amortization $ 2,137 $ 2,027 $ 6,016 $ 5,774
Capital Expenditures $ 3,019 $ 2,358 $ 7,187 $ 5,926