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 firstname.lastname@example.org (215) 997-5182 Visit our website at www.dormanproducts.com
Dorman Products, Inc. Reports Record Sales and Earnings for the
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