Dorman Products, Inc. Reports Sales and Earnings for the First Quarter Ended March 28, 2009COLMAR, PA -- (Marketwire - May 01, 2009) - Dorman Products, Inc. (NASDAQ: DORM) today announced financial results for the first quarter ended March 28, 2009.
Excluding the impact of foreign currency exchange and the sale of our Canadian subsidiary, revenues increased 10.6% over the prior year. Reported sales increased 7.9% to $86.4 million for the three months ended March 28, 2009 from $80.1 million last year. The revenue growth was driven by overall strong demand for our products and higher new product sales.
Net income in the first quarter of 2009 was $4.6 million compared to net income of $2.7 million in the same period last year. Diluted earnings per share were up 67% in the first quarter of 2009 to $0.25 compared to $0.15 in the same period last year.
For the thirteen weeks ended March 28, 2009 and March 29, 2008:
- -- Gross profit margin was 32.9% in 2009 compared to 30.8% in the prior
year. The increase is primarily the result of lower charges for excess and
obsolete inventory in 2009 and a reduction of $0.8 million in air freight
costs over last year.
- -- Selling, general and administrative expenses in 2009 increased 4.8% to
$20.9 million from $20.0 million in 2008.
- -- Interest expense, net, decreased to $0.1 million in 2009 from $0.3
million in 2008 due to lower borrowing levels and interest rates.
- -- Our effective tax rate decreased to 38.3% from 39.7% in the prior
year. Our 2008 tax provision included a $0.1 million valuation allowance
on the deferred tax assets of our Canadian subsidiary which resulted in a
higher effective tax rate last year.
Mr. Richard Berman, Chairman and Chief Executive Officer, said, "We experienced strong demand for our products from a number of customers during the first quarter, which resulted in solid sales growth. The improvement in our order patterns along with recently-reported strong sales growth reported by some of our customers is encouraging. Operating cash flow during the quarter was $8.5 million as several recently-implemented inventory management changes have helped us improve inventory turns. As a result we ended the quarter with just $3.2 million in net debt; putting us in a position to capitalize on growth opportunities that may present themselves in this difficult economic environment. We continue to invest heavily in new product development to ensure that we maintain our leadership position in the aftermarket with innovative new products and solutions for our customers and end users."
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 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 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)
13 Weeks 13 Weeks
---------------- ----------------
First Quarter (unaudited) 3/28/09 Pct. 3/29/08 Pct.
Net sales $86,431 100.0 $80,125 100.0
Cost of goods sold 58,034 67.1 55,422 69.2
Gross profit 28,397 32.9 24,703 30.8
Selling, general and administrative
expenses 20,934 24.3 19,984 24.9
Income from operations 7,463 8.6 4,719 5.9
Interest expense, net 81 0.1 268 0.3
Income before income taxes 7,382 8.5 4,451 5.6
Provision for income taxes 2,826 3.2 1,769 2.3
Net income $ 4,556 5.3 $ 2,682 3.3
Earnings per share
Basic $ 0.26 - $ 0.15 -
Diluted $ 0.25 - $ 0.15 -
Average shares outstanding
Basic 17,643 - 17,699 -
Diluted 17,965 - 18,087 -
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
3/28/09 12/27/08
Assets:
Cash and cash equivalents $ 4,731 $ 5,824
Accounts receivable 80,980 77,101
Inventories 83,365 93,577
Deferred income taxes 11,684 11,626
Prepaid expenses 1,325 2,135
Total current assets 182,085 190,263
Property & equipment 25,095 25,053
Goodwill 26,553 26,553
Other assets 1,508 1,553
Total assets $ 235,241 $ 243,422
Liability & Shareholders’ Equity:
Current portion of long-term debt $ 87 $ 86
Accounts payable 15,908 21,900
Accrued expenses and other 8,695 8,040
Total current liabilities 24,690 30,026
Long-term debt and other 9,942 17,464
Deferred income taxes 8,333 8,088
Shareholders’ equity 192,276 187,844
Total Liabilities and Equity $ 235,241 $ 243,422
Selected Cash Flow Information:
(in thousands) 13 Weeks (unaudited)
--------------------
3/28/09 3/29/08
Depreciation and amortization $ 1,890 $ 1,929
Capital Expenditures $ 1,911 $ 1,535
For Further Information Contact:
Mathias J. Barton
CFO
(215) 997-1800 x 5132
E-mail: MBarton@dormanproducts.com
Corporate Headquarters:
Dorman Products, Inc.
3400 East Walnut Street
Colmar, Pennsylvania 18915
Fax: (215) 997-8577
Visit our Home Page:
www.dormanproducts.com
