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 Third Quarter Ended September
26, 2009
Colmar,
Pennsylvania (October 30, 2009) – Dorman Products, Inc. (NASDAQ:DORM) today
announced financial results for the third quarter ended September 26,
2009.
Revenues
for the three months ended September 26, 2009 increased 8.2% over the prior
year, excluding the impact of foreign currency exchange. Reported
sales for the three months ended September 26, 2009, were up 7.5% to $98.0
million from $91.2 million last year. For the nine months ended
September 26, 2009 revenues before the impact of exchange and the sale of our
Canadian business were up 9.1% while reported sales for the nine month period
rose 7.3% to $280.7 million from $261.6 million last year. Revenue
growth in both periods was driven by strong overall demand for our products and
higher new product sales.
Net
income in the third quarter of 2009 was $7.9 million compared to net income of
$5.0 million in the same period last year. Diluted earnings per share
in the third quarter of 2009 rose 57% to $0.44 compared to $0.28 in the same
period last year. Net income in the first nine months of 2009 was
$18.8 million compared to net income of $13.0 million in the same period last
year. Diluted earnings per share in the nine months ended September
26, 2009 were up 44% to $1.04 from $0.72 last year.
For the
thirteen weeks ended September 26, 2009 and September 27, 2008:
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Gross
profit margin was 36.0% in 2009 compared to 32.4% in the prior year. The
increase is primarily the result of lower warranty and product return
costs along with a reduction in freight expenses and certain material
costs.
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Selling,
general and administrative expenses in 2009 increased 6.2% to $22.3
million from $21.0 million in 2008. The increase is the result
of higher new product development and quality control spending and
increased incentive compensation expense due to higher earnings levels,
offset partially by lower operating costs in most other areas due to cost
reduction initiatives.
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Interest
expense, net, decreased to $0.1 million in 2009 from $0.2 million in 2008
due to lower borrowing levels and interest
rates.
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Our
effective tax rate decreased slightly to 38.6% from 38.9% in the prior
year.
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Mr.
Richard Berman, Chairman and Chief Executive Officer, said, “Dorman sales
increases continue to be driven by new product growth. This growth is fueled by
Dorman’s recent new product successes and strong market acceptance of our new
product lines and line extensions. The strength of our balance sheet
has allowed us to continue to fund these growth opportunities. Our
recent decision to move to a four-month distribution cycle for our Service
Dealer Guide, which highlights many of these new products, will help increase
awareness of the new items to our customers and end users. We look
forward to showcasing some of our new product opportunities for our customers
during next week’s AAPEX Show.”
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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Third
Quarter (unaudited)
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9/26/09
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Pct.
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9/27/08
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Pct.
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Net
sales
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$ | 98,007 | 100.0 | $ | 91,202 | 100.0 | ||||||||||
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Cost
of goods sold
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62,710 64.0 | 61,697 | 67.6 | |||||||||||||
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Gross
profit
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35,297 | 36.0 | 29,505 | 32.4 | ||||||||||||
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Selling,
general and
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administrative
expenses
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22,318 | 22.8 | 21,010 | 23.1 | ||||||||||||
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Income
from operations
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12,979 | 13.2 | 8,495 | 9.3 | ||||||||||||
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Interest
expense, net
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52 | - | 221 | 0.2 | ||||||||||||
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Income
before income taxes
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12,927 | 13.2 | 8,274 | 9.1 | ||||||||||||
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Provision
for income taxes
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4,994 | 5.1 | 3,226 | 3.6 | ||||||||||||
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Net
income
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$ | 7,933 | 8.1 | $ | 5,048 | 5.5 | ||||||||||
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Earnings
per share
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Basic
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$ | 0.45 | - | $ | 0.29 | - | ||||||||||
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Diluted
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$ | 0.44 | - | $ | 0.28 | - | ||||||||||
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Average
shares outstanding
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Basic
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17,657 | - | 17,660 | - | ||||||||||||
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Diluted
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17,998 | - | 18,046 | |||||||||||||
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39 Weeks
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39 Weeks
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Third
Quarter (unaudited)
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9/26/09
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Pct.
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9/27/08
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Pct.
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Net
sales
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$ | 280,680 | 100.0 | $ | 261,638 | 100.0 | ||||||||||
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Cost
of goods sold
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184,958 | 65.9 | 177,265 | 67.8 | ||||||||||||
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Gross
profit
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95,722 | 34.1 | 84,373 | 32.2 | ||||||||||||
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Selling,
general and administrative expenses
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65,003 | 23.2 | 62,463 | 23.8 | ||||||||||||
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Income
from operations
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30,719 | 10.9 | 21,910 | 8.4 | ||||||||||||
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Interest
expense, net
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204 | - | 774 | 0.3 | ||||||||||||
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Income
before income taxes
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30,515 | 10.9 | 21,136 | 8.1 | ||||||||||||
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Provision
for income taxes
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11,757 | 4.2 | 8,173 | 3.1 | ||||||||||||
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Net
income
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$ | 18,758 | 6.7 | $ | 12,963 | 5.0 | ||||||||||
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Earnings
per share
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Basic
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$ | 1.06 | - | $ | 0.73 | - | ||||||||||
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Diluted
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$ | 1.04 | - | $ | 0.72 | - | ||||||||||
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Average
shares outstanding
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Basic
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17,647 | - | 17,684 | - | ||||||||||||
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Diluted
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17,976 | - | 18,059 | - | ||||||||||||
DORMAN
PRODUCTS, INC. AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(Unaudited)
(in
thousands)
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9/26/09
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12/27/08
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Assets:
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Cash
and cash equivalents
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$ | 5,697 | $ | 5,824 | ||||
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Accounts
receivable
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88,553 | 77,101 | ||||||
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Inventories
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95,593 | 93,577 | ||||||
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Deferred
income taxe$
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11,796 | 11,626 | ||||||
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Prepaid
expense$
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1,895 | 2,135 | ||||||
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Total
current assets
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203,534 | 190,263 | ||||||
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Property
& equipment
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25,377 | 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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2,020 | 1,553 | ||||||
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Total
assets
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$ | 257,484 | $ | 243,422 | ||||
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Liability
& Shareholders’ Equity:
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Current
portion of long-term debt
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$ | 6,039 | $ | 86 | ||||
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Accounts
payable
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20,265 | 21,900 | ||||||
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Accrued
expenses and other
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11,553 | 8,040 | ||||||
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Total
current liabilities
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37,857 | 30,026 | ||||||
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Long-term
debt and other
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2,564 | 17,464 | ||||||
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Deferred
income taxes
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8,771 | 8,088 | ||||||
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Shareholders’
equity
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208,292 | 187,844 | ||||||
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Total Liabilities and
Equity
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$ | 257,484 | $ | 243,422 | ||||
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Selected
Cash Flow Information:
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(in
thousands)
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13 Weeks (unaudited)
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39 Weeks (unaudited)
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9/26/09
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9/27/08
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9/26/09
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9/27/08
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Depreciation
and amortization
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$ | 2,027 | $ | 1,893 | $ | 5,774 | $ | 5,707 | ||||||||
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Capital
Expenditures
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$ | 2,358 | $ | 2,189 | $ | 5,926 | $ | 5,792 | ||||||||