EXHIBIT 99.1
Published on
Exhibit
99.1
NEWS
RELEASE
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Corporate
Headquarters:
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Dorman
Products, Inc.
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3400
East Walnut Street
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Colmar,
Pennsylvania 18915
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Fax:
(215) 997-8577
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For
Further Information Contact:
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Visit
our Home Page:
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Mathias
J. Barton, CFO
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www.dormanproducts.com
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(215)
997-1800 x 5132
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E-mail:
MBarton@dormanproducts.com
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Dorman
Products, Inc. Reports Sales and Earnings for the Fourth Quarter and Year Ended
December 26, 2009
Colmar,
Pennsylvania (February 23, 2010) – Dorman Products, Inc. (NASDAQ:DORM) today
announced financial results for the fourth quarter ended December 26,
2009.
Revenues
for the three months ended December 26, 2009 increased 20% over the prior year
to $96.7 million from $80.7 million last year. For the year ended
December 26, 2009, revenues were up 10% to $377.4 million from $342.3
million. Revenue growth in both periods was driven by strong overall
demand for our products and higher new product sales.
Reported
net income in the fourth quarter of 2009 was up 57% to $7.7 million from $4.9
million in the same period last year. Reported diluted earnings per
share in the fourth quarter of 2009 rose 59% to $0.43 from $0.27 in the same
period last year. Excluding the impact of the one-time item shown in
the reconciliation of non-GAAP measures below, net income in the fourth quarter
of 2009 was up 83% to $7.7 million from $4.2 million in the same period last
year and diluted EPS in the fourth quarter of 2009 increased 87% to $0.43 from
$0.23 in the same period last year.
Reported
net income for the year ended December 26, 2009 was up 49% to $26.5 million from
$17.8 million in the same period last year. Reported diluted earnings
per share for the year ended December 26, 2009 were up 48% to $1.47 from $0.99
last year. Excluding the impact of the one-time item
shown in the reconciliation of non-GAAP measures below, net income in 2009 was
up 55% to $26.5 million from $17.1 million in the same period last year and
diluted EPS in 2009 increased 55% to $1.47 from $0.95 in the same period last
year.
For the
year ended December 26, 2009 and December 27, 2008:
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Gross
profit margin was 34.9% in 2009 compared to 32.2% in 2008. The increase in
margin is the result of lower warranty and product return costs along with
a reduction in freight expenses and certain material
costs.
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·
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Selling,
general and administrative expenses increased 7.7% in 2009 to $88.1
million from $81.8 million in 2008, but was down as a percentage of sales
from 23.9% in 2008 to 23.3% in 2009. The spending increase was
the result of higher variable costs related to our sales increase as well
as increased new product development spending and higher incentive
compensation expense due to higher earnings
levels.
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Interest
expense, net, decreased to $0.3 million in 2009 from $0.9 million in 2008
due to lower borrowing levels and interest
rates.
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Our
effective tax rate increased to 38.8% from 35.2% in the prior
year. The increase is the result of a $0.7 million tax benefit
realized in 2008 upon the disposition of our Canadian Subsidiary and
higher provisions for state income taxes in
2009.
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·
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Operating
cash flow for 2009 increased $17.9 million to $27.6 million from $9.7
million in 2008. The increased cash flow enabled us to decrease
total debt by $15.1 million during 2009. Total debt outstanding
as of December 26, 2009 was only $0.4
million.
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Mr.
Richard Berman, Chairman and Chief Executive Officer, said, “Revenue growth in
2009 was just over 10% and was driven primarily by continued strong acceptance
and market penetration of our new product lines and line
extensions. Our 2010 plan provides for further investment in our new
product capabilities. We look forward to sharing the new products
generated by these investments with our customers and end users as the year
progresses.”
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 2008
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)
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13 Weeks
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13 Weeks
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|||||||||||||||
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Fourth
Quarter (unaudited)
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12/26/09
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Pct.
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12/27/08
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Pct.
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Net
sales
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$ | 96,698 | 100.0 | $ | 80,687 | 100.0 | ||||||||||
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Cost
of goods sold
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60,634 | 62.7 | 54,875 | 68.0 | ||||||||||||
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Gross
profit
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36,064 | 37.3 | 25,812 | 32.0 | ||||||||||||
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Selling,
general and administrative expenses
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23,114 | 23.9 | 19,318 | 24.0 | ||||||||||||
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Income
from operations
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12,950 | 13.4 | 6,494 | 8.0 | ||||||||||||
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Interest
expense, net
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139 | 0.2 | 146 | 0.1 | ||||||||||||
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Income
before income taxes
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12,811 | 13.2 | 6,348 | 7.9 | ||||||||||||
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Provision
for income taxes
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5,074 | 5.2 | 1,498 | 1.9 | ||||||||||||
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Net
income
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$ | 7,737 | 8.0 | $ | 4,850 | 6.0 | ||||||||||
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Earnings
per share
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Basic
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$ | 0.44 | - | $ | 0.27 | - | ||||||||||
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Diluted
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$ | 0.43 | - | $ | 0.27 | - | ||||||||||
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Average
shares outstanding
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Basic
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17,683 | - | 17,649 | - | ||||||||||||
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Diluted
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18,024 | - | 18,018 | - | ||||||||||||
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52 Weeks
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52 Weeks
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Year
to Date (unaudited)
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12/26/09
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Pct.
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12/27/08
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Pct.
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Net
sales
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$ | 377,378 | 100.0 | $ | 342,325 | 100.0 | ||||||||||
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Cost
of goods sold
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245,592 | 65.1 | 232,140 | 67.8 | ||||||||||||
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Gross
profit
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131,786 | 34.9 | 110,185 | 32.2 | ||||||||||||
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Selling,
general and administrative expenses
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88,117 | 23.3 | 81,781 | 23.9 | ||||||||||||
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Income
from operations
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43,669 | 11.6 | 28,404 | 8.3 | ||||||||||||
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Interest
expense, net
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343 | 0.1 | 920 | 0.3 | ||||||||||||
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Income
before income taxes
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43,326 | 11.5 | 27,484 | 8.0 | ||||||||||||
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Provision
for income taxes
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16,831 | 4.5 | 9,671 | 2.8 | ||||||||||||
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Net
income
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$ | 26,495 | 7.0 | $ | 17,813 | 5.2 | ||||||||||
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Earnings
per share
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Basic
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$ | 1.50 | - | $ | 1.01 | - | ||||||||||
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Diluted
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$ | 1.47 | - | $ | 0.99 | - | ||||||||||
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Average
shares outstanding
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Basic
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17,658 | - | 17,675 | - | ||||||||||||
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Diluted
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17,996 | - | 18,049 | - | ||||||||||||
DORMAN
PRODUCTS, INC. AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(Unaudited)
(in
thousands)
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12/26/09
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12/27/08
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Assets:
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Cash
and cash equivalents
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$ | 10,626 | $ | 5,824 | ||||
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Accounts
receivable
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88,164 | 77,101 | ||||||
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Inventories
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89,927 | 93,577 | ||||||
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Deferred
income taxes
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12,620 | 11,626 | ||||||
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Prepaid
expenses
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2,248 | 2,135 | ||||||
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Total
current assets
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203,585 | 190,263 | ||||||
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Property
& equipment
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25,218 | 25,053 | ||||||
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Goodwill
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26,553 | 26,553 | ||||||
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Other
assets
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2,046 | 1,553 | ||||||
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Total
assets
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$ | 257,402 | $ | 243,422 | ||||
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Liability
& Shareholders’ Equity:
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Current
portion of long-term debt
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$ | 90 | $ | 86 | ||||
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Accounts
payable
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16,098 | 21,900 | ||||||
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Accrued
expenses and other
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14,244 | 8,040 | ||||||
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Total
current liabilities
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30,432 | 30,026 | ||||||
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Long-term
debt and other
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2,941 | 17,464 | ||||||
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Deferred
income taxes
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8,694 | 8,088 | ||||||
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Shareholders’
equity
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215,335 | 187,844 | ||||||
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Total
Liabilities and Equity
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$ | 257,402 | $ | 243,422 | ||||
Selected
Cash Flow Information:
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(in
thousands)
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13 Weeks (unaudited)
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52 Weeks (unaudited)
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12/26/09
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12/27/08
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12/26/09
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12/27/08
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Depreciation
and amortization
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$ | 2,061 | $ | 1,965 | $ | 7,835 | $ | 7,672 | ||||||||
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Capital
Expenditures
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$ | 1,904 | $ | 1,531 | $ | 7,830 | $ | 7,323 | ||||||||
DORMAN
PRODUCTS, INC. AND SUBSIDIARIES
Reconciliation
of Non-GAAP Measures
(in
thousands, except per-share amounts)
This
press release contains non-GAAP measures which adjust net income and diluted
earnings per share to exclude the impact of the following one-time
items:
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-
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Results
for the thirteen weeks and year ended December 27, 2008 include a $0.7
million tax benefit realized upon the disposition of our Canadian
subsidiary.
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The
presentation of these non-GAAP measures is intended to enhance the usefulness of
the financial information by providing measures which the Company’s management
uses internally to evaluate the Company’s baseline performance. A
reconciliation of net income and diluted earnings per share
follows:
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13
Weeks (unaudited)
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12/26/09
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12/27/08
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%
Change
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Net
income, as reported
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$ | 7,737 | 4,850 | 59.5 | % | |||||||
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Less:
Tax benefit upon disposition of subsidiary
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- | (673 | ) | N/A | ||||||||
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Net
income, as adjusted
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$ | 7,737 | 4,177 | 85.2 | % | |||||||
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Diluted
EPS, as reported
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$ | 0.43 | 0.27 | 59.3 | % | |||||||
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Less:
Tax benefit upon disposition of subsidiary
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- | (0.04 | ) | N/A | ||||||||
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Diluted
EPS, as adjusted
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$ | 0.43 | 0.23 | 87.0 | % | |||||||
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52
Weeks (unaudited)
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12/26/09
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12/27/08
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%
Change
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Net
income, as reported
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$ | 26,495 | 17,813 | 48.7 | % | |||||||
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Less:
Tax benefit upon disposition of subsidiary
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- | (673 | ) | N/A | ||||||||
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Net
income, as adjusted
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$ | 26,495 | 17,140 | 54.6 | % | |||||||
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Diluted
EPS, as reported
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$ | 1.47 | 0.99 | 48.5 | % | |||||||
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Less:
Tax benefit upon disposition of subsidiary
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- | (0.04 | ) | N/A | ||||||||
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Diluted
EPS, as adjusted
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$ | 1.47 | 0.95 | 54.7 | % | |||||||