EX-99.1 2 ex99_1.htm EXHIBIT 99.1 ex99_1.htm
Exhibit 99.1

NEWS RELEASE

 
  logo  
     
   
Corporate Headquarters:
   
Dorman Products, Inc.
   
3400 East Walnut Street
   
Colmar, Pennsylvania 18915
   
Fax: (215) 997-8577
     
 
For Further Information Contact:
Visit our Home Page:
 
Mathias J. Barton, CFO
www.dormanproducts.com
 
(215) 997-1800 x 5132
  
 
E-mail: MBarton@dormanproducts.com
  
 
 
Dorman Products, Inc. Reports Sales and Earnings for the Third Quarter Ended September 26, 2009

Colmar, Pennsylvania (October 30, 2009) – Dorman Products, Inc. (NASDAQ:DORM) today announced financial results for the third quarter ended September 26, 2009.

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 (R), OE Solutions (TM), HELP! (R), AutoGrade (TM), First Stop (TM), Conduct-Tite (R), Symmetry (R) and Scan-Tech (R) 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 taxe$
     11,796       11,626  
Prepaid expense$
     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