Dorman Products, Inc. Reports Record Sales and Earnings for the

Dorman Products, Inc. Reports Record Sales and Earnings for the Third
Quarter Ended September 29, 2012 
COLMAR, PA -- (Marketwire) -- 11/01/12 --  Dorman Products, Inc.
(NASDAQ: DORM) 
Third Quarter Highlights: 


 
--  Revenue increased 20% to a record $156.4 million; twelfth consecutive
    quarter of double digit sales growth.
    
    
--  Net income from continuing operations increased 32% to $19.8 million,
    or $0.54 per diluted share.
    
    
--  Operating margin increased to 19.9% from 17.9% during the same period
    last year.

  
Dorman Products, Inc. (NASDAQ: DORM) today announced record revenues
from continuing operations for the third quarter ended September 29,
2012, up 20% over the prior year to $156.4 million from $130.6
million. 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. The Company also
announced record net income from continuing operations of $19.8
million, or $0.54 per diluted share, for the third quarter ended
September 29, 2012, up 32% from the prior year's net income from
continuing operations of $15.0 million, or $0.41 per diluted share.  
Gross profit margin was 38.2% for the third quarter ended September
29, 2012 compared to 37.2% for the same period last year. The
increase in margin percent is primarily the result of a favorable
change in sales mix, lower transportation costs and lower provisions
for excess and obsolete inventory. Selling, general and
administrative expenses increased 14% in 2012 to $28.6 million from
$25.2 million in 2011, but were down as a percentage of sales to
18.3% in 2012 from 19.3% in 2011. Cost increases were primarily the
result of higher variable costs, additional product development
spending and increased incentive compensation expense.  
For the nine months ended September 29, 2012, revenues from
continuing operations increased 15% over the prior year to $435.4
million from $377.8 million last year. Net income from continuing
operations in 2012 increased 25% to $51.2 million from $41.0 million
in the same period last year. Diluted earnings per share from
continuing operations in 2012 rose 24% to $1.40 from $1.13 in the
same period last year. 
Operating cash flow in 2012 was $28.6 million
compared to $30.6 million in 2011. 
"Our growing pipeline of new and recently-introduced new products
continues to fuel our revenue growth. We have introduced nearly 2,500
new parts in 2012, of which over 630 of these were formerly
dealer-only parts. We appreciate the continued acceptance of these
new products by our customers and end users, and look forward to
creating even more new revenue opportunities in the future," said Mr.
Steven Berman, Chairman and Chief Executive Officer. "Additionally,
we are gaining traction in our Dorman HD Solutions(TM) initiative
launched in January, with over 200 formerly dealer-only parts
available for immediate shipment to customers. Feedback from
customers and end users has been positive. We remain committed to
driving growth in this channel as well." 
During 2012, we liquidated our Swedish business, the results of which
are presented as discontinued operations. The 2012 results include a
$3.0 million non-cash currency translation gain and $1.5 million in
benefits from foreign tax credits as a result of the liquidation.  
Prior year earnings per share and weighted average share information
have been adjusted to reflect the 2-for-1 stock split that occurred
in June 2012. 
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), Dorman HD Solutions(TM) and
Symmetry(R) 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 31, 2011. 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 Operations                    
                  (in thousands, except per-share amounts)                  
                                                                            
                                        13 Weeks             13 Weeks       
Third Quarter (unaudited)           9/29/12     Pct.     9/24/11      Pct.  
Net sales                          $ 156,411     100.0  $ 130,576      100.0
Cost of goods sold                    96,665      61.8     81,979       62.8
Gross profit                          59,746      38.2     48,597       37.2
Selling, general and                                                        
 administrative expenses              28,615      18.3     25,195       19.3
Income from operations                31,131      19.9     23,402       17.9
Interest expense, net                     38         -         12          -
Income from continuing operations                                           
 before income taxes                  31,093      19.9     23,390       17.9
Provision for income taxes            11,337       7.3      8,374        6.4
Net income from continuing                                                  
 operations                           19,756      12.6     15,016       11.5
Net income (loss) from                                                      
 discontinued operations                 586         -     (3,516)         -
Net income                         $  20,342         -  $  11,500          -
Diluted earnings (loss) per                                                 
 share:                                                                     
  Continuing operations            $    0.54         -  $    0.41          -
  Discontinued operations               0.02         -  
    (0.09)         -
  Diluted earnings per share       $    0.56         -  $    0.32          -
                                                                            
Weighted average diluted shares                                             
 outstanding                          36,622         -     36,418          -
                                                                            
                                                                            
                   DORMAN PRODUCTS, INC. AND SUBSIDIARIES                   
                   Consolidated Statements of Operations                    
                  (in thousands, except per-share amounts)                  
                                                                            
                                        39 Weeks             39 Weeks       
Third Quarter (unaudited)           9/29/12     Pct.     9/24/11      Pct.  
Net sales                          $ 435,406     100.0  $ 377,790      100.0
Cost of goods sold                   272,038      62.5    238,753       63.2
Gross profit                         163,368      37.5    139,037       36.8
Selling, general and                                                        
 administrative expenses              82,103      18.8     75,122       19.9
Income from operations                81,265      18.7     63,915       16.9
Interest expense, net                     90       0.1         95          -
Income from continuing operations                                           
 before income taxes                  81,175      18.6     63,820       16.9
Provision for income taxes            30,019       6.9     22,775        6.0
Net income from continuing                                                  
 operations                           51,156      11.7     41,045       10.9
Net income (loss) from                                                      
 discontinued operations               4,506         -     (4,412)         -
Net income                         $  55,662         -  $  36,633          -
Diluted earnings (loss) per                                                 
 share:                                                                     
  Continuing operations            $    1.40         -  $    1.13          -
  Discontinued operations               0.13         -      (0.12)         -
  Diluted earnings per share       $    1.53         -  $    1.01          -
                                                                            
Weighted average diluted shares                                             
 outstanding                          36,489         -     36,365          -
                                                                            
                                                                            
                   DORMAN PRODUCTS, INC. AND SUBSIDIARIES                   
                   Condensed Consolidated Balance Sheets                    
                                 (Unaudited)                                
                                (in thousands)                              
                                                                            
                                                         9/29/12    12/31/11
Assets:                                                                     
Cash and cash equivalents                               $  66,071  $  50,196
Accounts receivable                                       140,556    124,324
Inventories                                               134,302    115,845
Deferred income taxes                                      18,589     17,127
Prepaid expenses                                            3,792      2,661
Total current assets                                      363,310    310,153
Property & equipment                                       47,369     38,904
Goodwill                                                   26,553     26,553
Other assets                                                1,436      1,083
Total assets                                            $ 438,668  $ 376,693
                                                                            
Liabilities & Shareholders' Equity:                                         
Accounts payable                                        $  38,728  $  31,646
Accrued expenses and other                                 13,005     12,907
Total current liabilities                                  51,733     44,553
Other long-term liabilities                                 3,058      3,406
Deferred income taxes                                      11,531     11,631
Shareholders' equity                                      372,346    317,103
Total Liabilities and Equity                            $ 438,668  $ 376,693
                                                                            
Selected Cash Flow Information:                                             
         (in thousands)           13 Weeks (unaudited)  39 Weeks (unaudited)
                                   9/29/12    9/24/11    9/29/12    9/24/11 
                                                                            
Depreciation and amortization     $   2,017  $   1,984  $   5,973  $   5,710
Capital expenditures              $   4,983  $   4,522  $  14,437  $  14,914

  
Contact: 
Matthew Kohnke 
CFO 
mkohnke@dormanproducts.com
(215) 997-5182 
Visit our website at www.dormanproducts.com 
 
 
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