Dorman Products, Inc. Reports Sales and Earnings for the Fourth Quarter and Year Ended December 25, 2010
COLMAR, PA -- (MARKET WIRE) -- 02/22/11 -- Dorman Products, Inc. (NASDAQ: DORM) today announced financial results for the fourth quarter ended December 25, 2010.
Revenues for the three months ended December 25, 2010 increased 27% over
the prior year to $122.5 million from $96.7 million last year. Net income
in the fourth quarter of 2010 was $12.2 million compared to $7.7 million in
the same period last year and diluted earnings per share rose 56% to $0.67
from $0.43 last year.
For the year ended December 25, 2010 and December 26, 2009:
-- Revenues in 2010 increased 20.8% over the prior year to $455.7 million
from $377.4 million last year. Revenue growth in both periods
continues to be driven by strong overall demand for our products and
higher new product sales.
-- Net income in 2010 was $46.1 million compared to $26.5 million last
year, while diluted earnings per share rose 73% to $2.55 from $1.47.
-- Gross profit margin was 37.9% in 2010 compared to 34.9% in 2009. The
increase in margin is the result of a reduction in certain material
costs along with lower defective return costs.
-- Selling, general and administrative expenses increased 11.2% in 2010 to
$98.0 million from $88.1 million in 2009, but were down as a percentage
of sales from 23.3% in 2009 to 21.5% in 2010. The spending increase
was the result of higher variable costs related to our sales increase,
increased new product development spending and a $1.0 million charge to
write off certain intangible assets. These increases were partially
offset by lower operating expenses in most areas due to cost reduction
initiatives.
-- Our effective tax rate decreased to 38.2% in 2010 from 38.8% in the
prior year as a result of lower state income taxes.
-- Operating cash flow for 2010 was $30.7 million compared to $27.6
million in 2009.
Mr. Steven Berman, Chairman and Chief Executive Officer, said, "Dorman's strong revenue and earnings growth in the fourth quarter and full year were driven by the introduction of a record number of new parts during 2010, and continued market penetration of formerly dealer-only products that were introduced in recent years. During 2010 we continued to invest in product development, engineering and sales resources. We expect these investments to further increase our industry-leading level of new product introductions in the years to come."
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 ®, OE Solutions ™, HELP! ®, AutoGrade ™, First Stop ™, Conduct-Tite ®, Symmetry ® and Scan-Tech ® 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 2009 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)
13 Weeks 13 Weeks
---------------- ----------------
Fourth Quarter (unaudited) 12/25/10 Pct. 12/26/09 Pct.
Net sales $122,519 100.0 $ 96,698 100.0
Cost of goods sold 75,890 61.9 60,634 62.7
Gross profit 46,629 38.1 36,064 37.3
Selling, general and
administrative expenses 27,040 22.1 23,114 23.9
Income from operations 19,589 16.0 12,950 13.4
Interest expense, net 29 - 139 0.2
Income before income taxes 19,560 16.0 12,811 13.2
Provision for income taxes 7,339 6.0 5,074 5.2
Net income $ 12,221 10.0 $ 7,737 8.0
Earnings per share
Basic $ 0.69 - $ 0.44 -
Diluted $ 0.67 - $ 0.43 -
Average shares outstanding
Basic 17,821 - 17,683 -
Diluted 18,199 - 18,024 -
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per-share amounts)
52 Weeks 52 Weeks
---------------- ----------------
Fourth Quarter (unaudited) 12/25/10 Pct. 12/26/09 Pct.
Net sales $455,716 100.0 $377,378 100.0
Cost of goods sold 282,858 62.1 245,592 65.1
Gross profit 172,858 37.9 131,786 34.9
Selling, general and administrative
expenses 97,976 21.5 88,117 23.3
Income from operations 74,882 16.4 43,669 11.6
Interest expense, net 209 - 343 0.1
Income before income taxes 74,673 16.4 43,326 11.5
Provision for income taxes 28,535 6.3 16,831 4.5
Net income $ 46,138 10.1 $ 26,495 7.0
Earnings per share
Basic $ 2.60 - $ 1.50 -
Diluted $ 2.55 - $ 1.47 -
Average shares outstanding
Basic 17,767 - 17,658 -
Diluted 18,116 - 17,996 -
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
12/25/10 12/26/09
Assets:
Cash and cash equivalents $ 30,463 $ 10,626
Accounts receivable 101,851 88,164
Inventories 120,433 89,927
Deferred income taxes 12,135 12,620
Prepaid expenses 2,213 2,248
Total current assets 267,095 203,585
Property & equipment 28,790 25,218
Goodwill 26,553 26,553
Other assets 721 2,046
Total assets $ 323,159 $ 257,402
Liabilities & Shareholders' Equity:
Current portion of long-term debt $ - $ 90
Accounts payable 33,978 16,098
Accrued expenses and other 14,182 14,244
Total current liabilities 48,160 30,432
Long-term debt and other 3,210 2,941
Deferred income taxes 8,636 8,694
Shareholders' equity 263,153 215,335
Total Liabilities and Equity $ 323,159 $ 257,402
Selected Cash Flow Information:
(in thousands) 13 Weeks (unaudited) 52 Weeks (Unaudited)
-------------------- --------------------
12/25/10 12/26/09 12/25/10 12/26/09
Depreciation and amortization $ 1,996 $ 2,061 $ 8,012 $ 7,835
Capital Expenditures $ 4,266 $ 1,904 $ 11,453 $ 7,830
Source: Dorman Products, Inc.
Released February 22, 2011