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 Second Quarter Ended June 25, 2011

Colmar, Pennsylvania (July 26, 2011) – Dorman Products, Inc. (NASDAQ:DORM) today announced financial results for the second quarter ended June 25, 2011.

Revenues for the three months ended June 25, 2011 increased 14% over the prior year to $131.6 million from $115.0 million last year. Net income in the second quarter of 2011 was up 11% to $12.7 million from $11.5 million in the same period last year. Diluted earnings per share in the second quarter of 2011 rose 11% to $0.70 from $0.63 in the same period last year.

For the six months ended June 25, 2011 and June 26, 2010:

• Revenues in 2011 increased 20% over the prior year to $256.0 million from $214.0 million. Revenue growth was driven primarily by strong overall demand for our products and higher new product sales.

• Net income in 2011 was up 19% to $25.1 million from $21.1 million last year. Diluted earnings per share in 2011 rose 18% to $1.38 from $1.17 in 2010.

• Gross profit margin was 36.0% in 2011 compared to 37.9% in 2010. The decrease in margin percent is primarily the result of an increase in transportation costs and an unfavorable change in sales mix.

• Selling, general and administrative expenses increased 13% in 2011 to $52.5 million from $46.3 million in 2010, but were down as a percentage of sales from 21.6% in 2010 to 20.5% in 2011. The spending increase was primarily the result of higher variable costs related to our sales increase and investments in new product development initiatives.

• Our effective tax rate decreased to 36.4% from 39.1% in the prior year due to the 2011 receipt of tax-exempt life insurance proceeds used to fund an officer’s death benefit.

• Operating cash flow for 2011 was $19.1 million compared to $16.7 million in 2010. Cash on hand as of June 25, 2011 was $38.8 million.

Mr. Steven Berman, Chairman and Chief Executive Officer, said, “Second quarter sales growth was strong, but down from recent growth levels as a result of inventory reduction efforts by a

few customers. However, new product revenues remained strong, and we introduced over 1,000 New to the Aftermarket products during the first half of the year. We are on pace to introduce a record number of New to the Aftermarket products in 2011. During the quarter we completed construction on a 177,800 square foot addition to our Warsaw, Kentucky facility which will provide much needed space as we continue to expand our business.”

Dorman Products, Inc. is a leading supplier of 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), renew (TM), TECHoice (TM), 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 2010 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
Second Quarter (unaudited)	6/25/11		Pct.		6/26/10		Pct.
Net sales	$	131,619		100.0	$	115,009		100.0
Cost of goods sold		84,857		64.5		71,681		62.3
Gross profit		46,762		35.5		43,328		37.7
Selling, general and administrative expenses		26,312		20.0		24,230		21.1
Income from operations		20,450		15.5		19,098		16.6
Interest expense, net		49		—		58		—
Income before income taxes		20,401		15.5		19,040		16.6
Provision for income taxes		7,654		5.8		7,555		6.6
Net income	$	12,747		9.7	$	11,485		10.0
Earnings per share:
Basic	$	0.71		—	$	0.65		—
Diluted	$	0.70		—	$	0.63		—
Average shares outstanding:
Basic		17,925		—		17,757		—
Diluted		18,227		—		18,127		—

DORMAN PRODUCTS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per-share amounts)

	26 Weeks				26 Weeks
Second Quarter (unaudited)	6/25/11		Pct.		6/26/10		Pct.
Net sales	$	255,993		100.0	$	213,985		100.0
Cost of goods sold		163,819		64.0		132,880		62.1
Gross profit		92,174		36.0		81,105		37.9
Selling, general and administrative expenses		52,534		20.5		46,308		21.6
Income from operations		39,640		15.5		34,797		16.3
Interest expense, net		119		0.1		123		0.1
Income before income taxes		39,521		15.4		34,674		16.2
Provision for income taxes		14,388		5.6		13,574		6.3
Net income	$	25,133		9.8	$	21,100		9.9
Earnings per share:
Basic	$	1.40		—	$	1.19		—
Diluted	$	1.38		—	$	1.17		—
Average shares outstanding:
Basic		17,898		—		17,723		—
Diluted		18,203		—		18,092		—

DORMAN PRODUCTS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands)

	6/25/11		12/25/10
Assets:
Cash and cash equivalents	$	38,812	$	30,463
Accounts receivable		102,305		101,851
Inventories		129,964		120,433
Deferred income taxes		12,974		12,135
Prepaid expenses		2,993		2,213
Total current assets		287,048		267,095
Property & equipment		35,485		28,790
Goodwill		26,553		26,553
Other assets		821		721
Total assets	$	349,907	$	323,159
Liabilities & Shareholders’ Equity:
Accounts payable	$	37,608	$	33,978
Accrued expenses and other		10,319		14,182
Total current liabilities		47,927		48,160
Other long-term liabilities		4,249		3,210
Deferred income taxes		8,991		8,636
Shareholders’ equity		288,740		263,153
Total Liabilities and Equity	$	349,907	$	323,159

Selected Cash Flow Information:

(in thousands)	13 Weeks (unaudited)				26 Weeks (unaudited)
	6/25/11		6/26/10		6/25/11		6/26/10
Depreciation and amortization	$	1,867	$	1,955	$	3,726	$	3,879
Capital Expenditures	$	5,238	$	2,174	$	10,392	$	4,168