Exhibit 99.1
NEWS RELEASE
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| | | Corporate Headquarters: |
| | | Dorman Products, Inc. |
| | | 3400 East Walnut Street |
| | | Colmar, Pennsylvania 18915 |
| | | Fax: (215) 997-8577 |
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| | For Further Information Contact: | Visit our Home Page: |
| | Mathias J. Barton, CFO | www.dormanproducts.com |
| | (215) 997-1800 x 5132 | |
| | E-mail: MBarton@dormanproducts.com | |
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:
| | · | 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. |
| | · | 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. |
| | · | Interest expense, net, decreased to $0.1 million in 2009 from $0.2 million in 2008 due to lower borrowing levels and interest rates. |
| | · | Our effective tax rate decreased slightly to 38.6% from 38.9% in the prior year. |
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)
| | | 13 Weeks | | | 13 Weeks | |
| Third Quarter (unaudited) | | 9/26/09 | | | Pct. | | | 9/27/08 | | | Pct. | |
| Net sales | | $ | 98,007 | | | | 100.0 | | | $ | 91,202 | | | | 100.0 | |
| Cost of goods sold | | | 62,710 64.0 | | | | | | | | 61,697 | | | | 67.6 | |
| Gross profit | | | 35,297 | | | | 36.0 | | | | 29,505 | | | | 32.4 | |
| Selling, general and | | | | | | | | | | | | | | | | |
| administrative expenses | | | 22,318 | | | | 22.8 | | | | 21,010 | | | | 23.1 | |
| Income from operations | | | 12,979 | | | | 13.2 | | | | 8,495 | | | | 9.3 | |
| Interest expense, net | | | 52 | | | | - | | | | 221 | | | | 0.2 | |
| Income before income taxes | | | 12,927 | | | | 13.2 | | | | 8,274 | | | | 9.1 | |
| Provision for income taxes | | | 4,994 | | | | 5.1 | | | | 3,226 | | | | 3.6 | |
| Net income | | $ | 7,933 | | | | 8.1 | | | $ | 5,048 | | | | 5.5 | |
| Earnings per share | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.45 | | | | - | | | $ | 0.29 | | | | - | |
| Diluted | | $ | 0.44 | | | | - | | | $ | 0.28 | | | | - | |
| Average shares outstanding | | | | | | | | | | | | | | | | |
| Basic | | | 17,657 | | | | - | | | | 17,660 | | | | - | |
| Diluted | | | 17,998 | | | | - | | | | 18,046 | | | | | |
| | | 39 Weeks | | | 39 Weeks | |
| Third Quarter (unaudited) | | 9/26/09 | | | Pct. | | | 9/27/08 | | | Pct. | |
| Net sales | | $ | 280,680 | | | | 100.0 | | | $ | 261,638 | | | | 100.0 | |
| Cost of goods sold | | | 184,958 | | | | 65.9 | | | | 177,265 | | | | 67.8 | |
| Gross profit | | | 95,722 | | | | 34.1 | | | | 84,373 | | | | 32.2 | |
| Selling, general and administrative expenses | | | 65,003 | | | | 23.2 | | | | 62,463 | | | | 23.8 | |
| Income from operations | | | 30,719 | | | | 10.9 | | | | 21,910 | | | | 8.4 | |
| Interest expense, net | | | 204 | | | | - | | | | 774 | | | | 0.3 | |
| Income before income taxes | | | 30,515 | | | | 10.9 | | | | 21,136 | | | | 8.1 | |
| Provision for income taxes | | | 11,757 | | | | 4.2 | | | | 8,173 | | | | 3.1 | |
| Net income | | $ | 18,758 | | | | 6.7 | | | $ | 12,963 | | | | 5.0 | |
| Earnings per share | | | | | | | | | | | | | | | | |
| Basic | | $ | 1.06 | | | | - | | | $ | 0.73 | | | | - | |
| Diluted | | $ | 1.04 | | | | - | | | $ | 0.72 | | | | - | |
| Average shares outstanding | | | | | | | | | | | | | | | | |
| Basic | | | 17,647 | | | | - | | | | 17,684 | | | | - | |
| Diluted | | | 17,976 | | | | - | | | | 18,059 | | | | - | |
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
| | | 9/26/09 | | | 12/27/08 | |
| Assets: | | | | | | |
| Cash and cash equivalents | | $ | 5,697 | | | $ | 5,824 | |
| Accounts receivable | | | 88,553 | | | | 77,101 | |
| Inventories | | | 95,593 | | | | 93,577 | |
| Deferred income taxe$ | | | 11,796 | | | | 11,626 | |
| Prepaid expense$ | | | 1,895 | | | | 2,135 | |
| Total current assets | | | 203,534 | | | | 190,263 | |
| Property & equipment | | | 25,377 | | | | 25,053 | |
| Goodwill | | | 26,553 | | | | 26,553 | |
| Other assets | | | 2,020 | | | | 1,553 | |
| Total assets | | $ | 257,484 | | | $ | 243,422 | |
| Liability & Shareholders’ Equity: | | | | | | |
| Current portion of long-term debt | | $ | 6,039 | | | $ | 86 | |
| Accounts payable | | | 20,265 | | | | 21,900 | |
| Accrued expenses and other | | | 11,553 | | | | 8,040 | |
| Total current liabilities | | | 37,857 | | | | 30,026 | |
| Long-term debt and other | | | 2,564 | | | | 17,464 | |
| Deferred income taxes | | | 8,771 | | | | 8,088 | |
| Shareholders’ equity | | | 208,292 | | | | 187,844 | |
| Total Liabilities and Equity | | $ | 257,484 | | | $ | 243,422 | |
| Selected Cash Flow Information: | | | | | | | | | | | | |
| (in thousands) | | 13 Weeks (unaudited) | | | 39 Weeks (unaudited) | |
| | | 9/26/09 | | | 9/27/08 | | | 9/26/09 | | | 9/27/08 | |
| Depreciation and amortization | | $ | 2,027 | | | $ | 1,893 | | | $ | 5,774 | | | $ | 5,707 | |
| Capital Expenditures | | $ | 2,358 | | | $ | 2,189 | | | $ | 5,926 | | | $ | 5,792 | |
