Attached files
| file | filename |
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| 8-K - FORM 8-K - Dorman Products, Inc. | d8k.htm |
Exhibit 99.1
NEWS RELEASE
| Corporate Headquarters: | ||
| Dorman Products, Inc. | ||
| 3400 East Walnut Street | ||
| Colmar, Pennsylvania 18915 | ||
| Fax: (215) 997-8577 | ||
| For Further Information Contact: | Visit our Home Page: | |
| Matthew S. Kohnke, CFO | www.dormanproducts.com | |
| (215) 997-1800 x 5182 | ||
| E-mail: MKohnke@dormanproducts.com | ||
Dorman Products, Inc. Reports Sales and Earnings for the Fourth Quarter and Year Ended December 25, 2010
Colmar, Pennsylvania (February 22, 2011) – Dorman Products, Inc. (NASDAQ:DORM) today announced financial results for the fourth quarter ended December 25, 2010.
Revenues for the three months ended December 25, 2010 increased 27% over the prior year to $122.5 million from $96.7 million last year. Net income in the fourth quarter of 2010 was $12.2 million compared to $7.7 million in the same period last year and diluted earnings per share rose 56% to $0.67 from $0.43 last year.
For the year ended December 25, 2010 and December 26, 2009:
| • | Revenues in 2010 increased 20.8% over the prior year to $455.7 million from $377.4 million last year. Revenue growth in both periods continues to be driven by strong overall demand for our products and higher new product sales. |
| • | Net income in 2010 was $46.1 million compared to $26.5 million last year, while diluted earnings per share rose 73% to $2.55 from $1.47. |
| • | Gross profit margin was 37.9% in 2010 compared to 34.9% in 2009. The increase in margin is the result of a reduction in certain material costs along with lower defective return costs. |
| • | Selling, general and administrative expenses increased 11.2% in 2010 to $98.0 million from $88.1 million in 2009, but were down as a percentage of sales from 23.3% in 2009 to 21.5% in 2010. The spending increase was the result of higher variable costs related to our sales increase, increased new product development spending and a $1.0 million charge to write off certain intangible assets. These increases were partially offset by lower operating expenses in most areas due to cost reduction initiatives. |
| • | Our effective tax rate decreased to 38.2% in 2010 from 38.8% in the prior year as a result of lower state income taxes. |
| • | Operating cash flow for 2010 was $30.7 million compared to $27.6 million in 2009. |
Mr. Steven Berman, Chairman and Chief Executive Officer, said, “Dorman’s strong revenue
and earnings growth in the fourth quarter and full year were driven by the introduction of a record number of new parts during 2010, and continued market penetration of formerly dealer-only products that were introduced in recent years. During 2010 we continued to invest in product development, engineering and sales resources. We expect these investments to further increase our industry-leading level of new product introductions in the years to come.”
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 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 | |||||||||||||||
| Fourth Quarter (unaudited) | 12/25/10 | Pct. | 12/26/09 | Pct. | ||||||||||||
| Net sales |
$ | 122,519 | 100.0 | $ | 96,698 | 100.0 | ||||||||||
| Cost of goods sold |
75,890 | 61.9 | 60,634 | 62.7 | ||||||||||||
| Gross profit |
46,629 | 38.1 | 36,064 | 37.3 | ||||||||||||
| Selling, general and administrative expenses |
27,040 | 22.1 | 23,114 | 23.9 | ||||||||||||
| Income from operations |
19,589 | 16.0 | 12,950 | 13.4 | ||||||||||||
| Interest expense, net |
29 | — | 139 | 0.2 | ||||||||||||
| Income before income taxes |
19,560 | 16.0 | 12,811 | 13.2 | ||||||||||||
| Provision for income taxes |
7,339 | 6.0 | 5,074 | 5.2 | ||||||||||||
| Net income |
$ | 12,221 | 10.0 | $ | 7,737 | 8.0 | ||||||||||
| Earnings per share |
||||||||||||||||
| Basic |
$ | 0.69 | — | $ | 0.44 | — | ||||||||||
| Diluted |
$ | 0.67 | — | $ | 0.43 | — | ||||||||||
| Average shares outstanding |
||||||||||||||||
| Basic |
17,821 | — | 17,683 | — | ||||||||||||
| Diluted |
18,199 | — | 18,024 | — | ||||||||||||
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per-share amounts)
| 52 Weeks | 52 Weeks | |||||||||||||||
| Fourth Quarter (unaudited) | 12/25/10 | Pct. | 12/26/09 | Pct. | ||||||||||||
| Net sales |
$ | 455,716 | 100.0 | $ | 377,378 | 100.0 | ||||||||||
| Cost of goods sold |
282,858 | 62.1 | 245,592 | 65.1 | ||||||||||||
| Gross profit |
172,858 | 37.9 | 131,786 | 34.9 | ||||||||||||
| Selling, general and administrative expenses |
97,976 | 21.5 | 88,117 | 23.3 | ||||||||||||
| Income from operations |
74,882 | 16.4 | 43,669 | 11.6 | ||||||||||||
| Interest expense, net |
209 | — | 343 | 0.1 | ||||||||||||
| Income before income taxes |
74,673 | 16.4 | 43,326 | 11.5 | ||||||||||||
| Provision for income taxes |
28,535 | 6.3 | 16,831 | 4.5 | ||||||||||||
| Net income |
$ | 46,138 | 10.1 | $ | 26,495 | 7.0 | ||||||||||
| Earnings per share |
||||||||||||||||
| Basic |
$ | 2.60 | — | $ | 1.50 | — | ||||||||||
| Diluted |
$ | 2.55 | — | $ | 1.47 | — | ||||||||||
| Average shares outstanding |
||||||||||||||||
| Basic |
17,767 | — | 17,658 | — | ||||||||||||
| Diluted |
18,116 | — | 17,996 | — | ||||||||||||
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
| 12/25/10 | 12/26/09 | |||||||
| Assets: |
||||||||
| Cash and cash equivalents |
$ | 30,463 | $ | 10,626 | ||||
| Accounts receivable |
101,851 | 88,164 | ||||||
| Inventories |
120,433 | 89,927 | ||||||
| Deferred income taxes |
12,135 | 12,620 | ||||||
| Prepaid expenses |
2,213 | 2,248 | ||||||
| Total current assets |
267,095 | 203,585 | ||||||
| Property & equipment |
28,790 | 25,218 | ||||||
| Goodwill |
26,553 | 26,553 | ||||||
| Other assets |
721 | 2,046 | ||||||
| Total assets |
$ | 323,159 | $ | 257,402 | ||||
| Liabilities & Shareholders’ Equity: |
||||||||
| Current portion of long-term debt |
$ | — | $ | 90 | ||||
| Accounts payable |
33,978 | 16,098 | ||||||
| Accrued expenses and other |
14,182 | 14,244 | ||||||
| Total current liabilities |
48,160 | 30,432 | ||||||
| Long-term debt and other |
3,210 | 2,941 | ||||||
| Deferred income taxes |
8,636 | 8,694 | ||||||
| Shareholders’ equity |
263,153 | 215,335 | ||||||
| Total Liabilities and Equity |
$ | 323,159 | $ | 257,402 | ||||
| Selected Cash Flow Information: |
||||||||||||||||
| (in thousands) |
13 Weeks (unaudited) | 52 Weeks (Unaudited) | ||||||||||||||
| 12/25/10 | 12/26/09 | 12/25/10 | 12/26/09 | |||||||||||||
| Depreciation and amortization |
$ | 1,996 | $ | 2,061 | $ | 8,012 | $ | 7,835 | ||||||||
| Capital Expenditures |
$ | 4,266 | $ | 1,904 | $ | 11,453 | $ | 7,830 | ||||||||