Dorman Products, Inc. Reports Sales and Earnings for the First Quarter Ended March 30, 2013
COLMAR, PA -- (Marketwired) -- 04/30/13 -- - Dorman Products, Inc. (NASDAQ: DORM)
FIRST QUARTER HIGHLIGHTS
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Sales increased 15% to $154.4 million
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Net income from continuing operations increased 25% to $19.1 million, or $0.52 per diluted share.
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Operating margin increased to 19.4% from 18.1% during the same period last year
Dorman Products, Inc. (NASDAQ: DORM) today announced sales for the first quarter ended March 30, 2013 of $154.4 million, up 15% from $134.8 million in the first quarter of 2012. Revenue growth was driven primarily by strong overall demand for our new products, especially those introduced in the last 24 months. The Company also announced net income from continuing operations of $19.1 million, or $0.52 per diluted share, for the first quarter ended March 30, 2013, up 25% from the prior year's net income from continuing operations of $15.3 million, or $0.42 per diluted share.
"We are pleased that the operating results of the Company have returned to levels more in line with our expectations after the flat fourth quarter of 2012. Our growth continues to be fueled by recently introduced new products developed as a result of past investments," said Mr. Steven Berman, Chairman and Chief Executive Officer.
Gross profit margin was 39.4% for the first quarter ended March 30, 2013 compared to 37.4% for the same period last year. The increase in margin percent was primarily the result of a favorable change in sales mix toward higher margin new product, and lower product and transportation costs. Selling, general and administrative expenses increased 19% in 2013 to $30.9 million from $26.1 million in 2012. Cost increases were primarily the result of higher variable costs associated with the 15% sales growth, additional product development and selling expenses, and depreciation and other related support costs associated with our recent enterprise reporting system implementation.
"Our Dorman HD Solutions™ initiative continues to gain traction. We currently have over 250 parts available, including 37 new parts released in 2013. In addition, we have approximately 200 new parts in various stages of development, approximately 50 of which should be released by the end of the year. These new product releases and further penetration of existing SKU's with our customers will allow this initiative to be a meaningful contributor to the overall business in the next few years," said Mr. Berman.
During 2012, we liquidated our Swedish business, the results of which are presented as discontinued operations.
Prior year earnings per share and weighted average share information have been adjusted to reflect the 2-for-1 stock split paid on June 25, 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®, OE Solutions™, HELP!®, AutoGrade™, First Stop™, Conduct-Tite®, renew™, TECHoice™, Dorman HD Solutions™ and Symmetry® 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 29, 2012. 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
First Quarter (unaudited) 3/30/13 Pct. 3/31/12 Pct.
Net sales $154,443 100.0 $134,823 100.0
Cost of goods sold 93,619 60.6 84,347 62.6
Gross profit 60,824 39.4 50,476 37.4
Selling, general and administrative
expenses 30,916 20.0 26,069 19.3
Income from operations 29,908 19.4 24,407 18.1
Interest expense, net 48 0.1 14 -
Income from continuing operations before
income taxes 29,860 19.3 24,393 18.1
Provision for income taxes 10,788 7.0 9,099 6.8
Net income from continuing operations 19,072 12.3 15,294 11.3
Net income from discontinued operations - - 284 0.3
Net income $ 19,072 12.3 $ 15,578 11.6
Diluted earnings per share:
Continuing operations $ 0.52 - $ 0.42 -
Discontinued operations - - 0.01 -
Diluted earnings per share $ 0.52 - $ 0.43 -
Weighted average dilutedshares outstanding 36,627 - 36,501 -
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
3/30/13 12/29/12
Assets:
Cash and cash equivalents $ 35,149 $ 27,708
Accounts receivable 146,009 133,806
Inventories 141,872 145,270
Deferred income taxes 20,799 20,559
Prepaid expenses 1,830 2,332
Total current assets 345,659 329,675
Property & equipment 49,336 48,758
Goodwill 26,553 26,553
Other assets 1,399 1,323
Total assets $ 422,947 $ 406,309
Liabilities & Shareholders' Equity:
Accounts payable $ 37,835 $ 42,387
Accrued expenses and other 16,602 14,924
Total current liabilities 54,437 57,311
Other long-term liabilities 4,074 3,447
Deferred income taxes 12,539 12,679
Shareholders' equity 351,897 332,872
Total liabilities and equity $ 422,947 $ 406,309
Selected Cash Flow Information (unaudited):
(in thousands) 13 Weeks 13 Weeks
-------- --------
3/30/13 3/31/12
Depreciation and amortization $ 2,268 $ 1,953
Capital expenditures $ 2,846 $ 4,495
Source: Dorman Products, Inc.
Released April 30, 2013