Attached files
| file | filename |
|---|---|
| 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 First Quarter Ended March 26, 2011
Colmar, Pennsylvania (April 26, 2011) – Dorman Products, Inc. (NASDAQ:DORM) today announced financial results for the first quarter ended March 26, 2011.
Revenues for the three months ended March 26, 2011 increased 26% over the prior year to $124.4 million from $99.0 million last year. Revenue growth was driven primarily by strong overall demand for our products and higher new product sales.
Net income in the first quarter of 2011 was up 29% to $12.4 million from $9.6 million in the same period last year. Diluted earnings per share in the first quarter of 2011 rose 28% to $0.68 from $0.53 in the same period last year.
For the thirteen weeks ended March 26, 2011 and March 27, 2010:
| • | Gross profit margin was 36.5% in 2011 compared to 38.2% in 2010. The decrease in margin percent is the result of an increase in transportation costs and higher provisions for excess inventory. |
| • | Selling, general and administrative expenses increased 19% in 2011 to $26.2 million from $22.1 million in 2010, but were down as a percentage of sales from 22.3% in 2010 to 21.1% in 2011. The spending increase was the result of higher variable costs related to our sales increase, increased new product development spending and inflationary cost increases. |
| • | Our effective tax rate decreased to 35.2% from 38.5% in the prior year. The decrease is primarily the result of the 2011 receipt of tax-exempt life insurance proceeds used to fund an officer’s death benefit. |
| • | Operating cash flow for 2011 was $9.2 million compared to $7.1 million in 2010. |
Mr. Steven Berman, Chairman and Chief Executive Officer, said, “Our strong first quarter sales growth was driven by the continued success of our new product development efforts.
Revenues from products introduced in the last two years topped 20% for the quarter. This is a direct result of our continued investments and the efforts from our dedicated, enthusiastic and knowledgeable contributors. We continue to commit additional resources to our New to the Aftermarket initiative – during 2010 we increased the number of Dorman sales, engineering and product development professionals by 30%.”
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 (R), OE Solutions (TM), HELP! (R), AutoGrade (TM), First Stop (TM), Conduct-Tite (R), renew (TM), TECHoice (TM), 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 2010 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 | |||||||||||||||
| First Quarter (unaudited) | 3/26/11 | Pct. | 3/27/10 | Pct. | ||||||||||||
| Net sales |
$ | 124,374 | 100.0 | $ | 98,976 | 100.0 | ||||||||||
| Cost of goods sold |
78,962 | 63.5 | 61,199 | 61.8 | ||||||||||||
| Gross profit |
45,412 | 36.5 | 37,777 | 38.2 | ||||||||||||
| Selling, general and administrative expenses |
26,222 | 21.1 | 22,078 | 22.3 | ||||||||||||
| Income from operations |
19,190 | 15.4 | 15,699 | 15.9 | ||||||||||||
| Interest expense, net |
70 | — | 65 | 0.1 | ||||||||||||
| Income before income taxes |
19,120 | 15.4 | 15,634 | 15.8 | ||||||||||||
| Provision for income taxes |
6,734 | 5.4 | 6,019 | 6.1 | ||||||||||||
| Net income |
$ | 12,386 | 10.0 | $ | 9,615 | 9.7 | ||||||||||
| Earnings per share: |
||||||||||||||||
| Basic |
$ | 0.69 | — | $ | 0.54 | — | ||||||||||
| Diluted |
$ | 0.68 | — | $ | 0.53 | — | ||||||||||
| Average shares outstanding: |
||||||||||||||||
| Basic |
17,891 | — | 17,689 | — | ||||||||||||
| Diluted |
18,227 | — | 18,061 | — | ||||||||||||
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
| 3/26/11 | 12/25/10 | |||||||
| Assets: |
||||||||
| Cash and cash equivalents |
$ | 34,139 | $ | 30,463 | ||||
| Accounts receivable |
103,929 | 101,851 | ||||||
| Inventories |
124,900 | 120,433 | ||||||
| Deferred income taxes |
12,514 | 12,135 | ||||||
| Prepaid expenses |
2,261 | 2,213 | ||||||
| Total current assets |
277,743 | 267,095 | ||||||
| Property & equipment |
32,122 | 28,790 | ||||||
| Goodwill |
26,553 | 26,553 | ||||||
| Other assets |
705 | 721 | ||||||
| Total assets |
$ | 337,123 | $ | 323,159 | ||||
| Liability & Shareholders’ Equity: |
||||||||
| Accounts payable |
$ | 31,984 | $ | 33,978 | ||||
| Accrued expenses and other |
16,003 | 14,182 | ||||||
| Total current liabilities |
47,987 | 48,160 | ||||||
| Other long-term liabilities |
4,232 | 3,210 | ||||||
| Deferred income taxes |
8,892 | 8,636 | ||||||
| Shareholders’ equity |
276,012 | 263,153 | ||||||
| Total Liabilities and Equity |
$ | 337,123 | $ | 323,159 | ||||
| Selected Cash Flow Information: |
||||||||
| (in thousands) | 13 Weeks (unaudited) | |||||||
| 3/26/11 | 3/27/10 | |||||||
| Depreciation and amortization |
$ | 1,859 | $ | 1,924 | ||||
| Capital Expenditures |
$ | 5,154 | $ | 1,994 | ||||