Attached files
| file | filename |
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| 8-K - FORM 8-K - Dorman Products, Inc. | d716237d8k.htm |
Exhibit 99.1
NEWS RELEASE
Contact: Matthew Kohnke, CFO, mkohnke@dormanproducts.com, (215) 997-1800. Visit our website at www.dormanproducts.com
Dorman Products, Inc. Reports Sales and Earnings
For the First Quarter Ended March 29, 2014
FIRST QUARTER HIGHLIGHTS
| • | Sales increased 19% to $183.5 million. |
| • | Net income increased 23% to $23.6 million, or $0.64 per diluted share. |
| • | Operating margin increased to 20.1% from 19.4% during the same period last year. |
COLMAR, PENNSYLVANIA (April 29, 2014) – Dorman Products, Inc. (NASDAQ:DORM) today announced sales for the first quarter ended March 29, 2014 of $183.5 million, up 19% from $154.4 million in the first quarter of 2013. Revenue growth was driven primarily by strong overall demand for our products, higher revenues from recently-introduced products, and the shipment of several large line updates. Net income for the first quarter ended March 29, 2014 was $23.6 million, or $0.64 per diluted share, up 23% from the prior year’s net income of $19.1 million, or $0.52 per diluted share.
“Our first quarter operating results continued the growth trends we experienced in 2013. The ‘New to the Aftermarket’ initiatives that we’ve undertaken in recent years continue to generate growth rates well above reported industry rates,” said Mr. Steven Berman, Chairman and Chief Executive Officer. “These initiatives create new exciting revenue opportunities for our customers. We are grateful for the continued confidence and support from our customers and end users, which has enabled us to generate these strong growth rates.”
Gross profit margin declined slightly to 39.0% for the first quarter ended March 29, 2014 from 39.4% for the same period last year. Selling, general and administrative expenses increased 12% in 2014 to $34.7 million from $30.9 million in 2013, but declined as a percentage of sales to 18.9% in 2014 from 20.0% in 2013. Cost increases were primarily the result of higher variable expenses associated with the 19% sales growth and the 13% increase in product development headcount.
“We remain committed to continuing our industry-leading new product development efforts. As such, we are increasing investment in categories and segments like complex electronics and heavy duty truck parts that we feel offer significant opportunities for future ‘New to the Aftermarket’ growth,” said Mr. Berman.
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 28, 2013. 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 Income
(in thousands, except per-share amounts)
| 13 Weeks | 13 Weeks | |||||||||||||||
| 3/29/14 | Pct. | 3/30/13 | Pct. | |||||||||||||
| First Quarter (unaudited) |
||||||||||||||||
| Net sales |
$ | 183,512 | 100.0 | $ | 154,443 | 100.0 | ||||||||||
| Cost of goods sold |
111,870 | 61.0 | 93,619 | 60.6 | ||||||||||||
| Gross profit |
71,642 | 39.0 | 60,824 | 39.4 | ||||||||||||
| Selling, general and administrative expenses |
34,695 | 18.9 | 30,916 | 20.0 | ||||||||||||
| Income from operations |
36,947 | 20.1 | 29,908 | 19.4 | ||||||||||||
| Interest expense, net |
39 | — | 48 | 0.1 | ||||||||||||
| Income before income taxes |
36,908 | 20.1 | 29,860 | 19.3 | ||||||||||||
| Provision for income taxes |
13,357 | 7.3 | 10,788 | 7.0 | ||||||||||||
| Net income |
$ | 23,551 | 12.8 | $ | 19,072 | 12.3 | ||||||||||
| Diluted earnings per share |
$ | 0.64 | $ | 0.52 | ||||||||||||
| Weighted average diluted shares outstanding |
36,549 | — | 36,627 | — | ||||||||||||
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
| 3/29/14 | 12/28/13 | |||||||
| Assets: |
||||||||
| Cash and cash equivalents |
$ | 64,021 | $ | 60,593 | ||||
| Accounts receivable |
186,087 | 180,777 | ||||||
| Inventories |
175,380 | 164,421 | ||||||
| Deferred income taxes |
21,060 | 20,798 | ||||||
| Prepaid expenses |
2,825 | 5,851 | ||||||
| Total current assets |
449,373 | 432,440 | ||||||
| Property & equipment |
69,491 | 64,786 | ||||||
| Goodwill and other intangible assets |
30,064 | 30,089 | ||||||
| Other assets |
2,287 | 1,854 | ||||||
| Total assets |
$ | 551,215 | $ | 529,169 | ||||
| Liabilities & Shareholders’ Equity: |
||||||||
| Accounts payable |
$ | 58,303 | $ | 61,255 | ||||
| Accrued expenses and other |
32,801 | 30,483 | ||||||
| Total current liabilities |
91,104 | 91,738 | ||||||
| Other long-term liabilities |
5,021 | 5,310 | ||||||
| Deferred income taxes |
18,116 | 18,480 | ||||||
| Shareholders’ equity |
436,974 | 413,641 | ||||||
| Total liabilities and equity |
$ | 551,215 | $ | 529,169 | ||||
| Selected Cash Flow Information (unaudited): |
||||||||
| (in thousands) | 13 Weeks | 13 Weeks | ||||||
| 3/29/14 | 3/30/13 | |||||||
| Depreciation, amortization and accretion |
$ | 2,860 | $ | 2,268 | ||||
| Capital expenditures |
$ | 7,008 | $ | 2,846 | ||||