Dorman Products (DORM) 8-K Results of Operations and Financial Condition

Exhibit 99.1

NEWS RELEASE

	Corporate Headquarters:
	Dorman Products, Inc.
	3400 East Walnut Street
	Colmar, Pennsylvania 18915
	Fax: (215) 997-8577
For Further Information Contact:	Visit our Home Page:
Matthew S. Kohnke, CFO	www.dormanproducts.com
(215) 997-1800 x 5182
E-mail: MKohnke@dormanproducts.com

Dorman Products, Inc. Reports Sales and Earnings for the Fourth Quarter and Year Ended December 25, 2010

Colmar, Pennsylvania (February 22, 2011) – 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 (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 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