-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, O6gOUCXGDZNcbK6dmN8NXvCzfkP8/By9nNLe2UznNrud8lI1i6pbl06o49XOKOwl rPUJF3W31E1X3uPtGHE0uw== 0000868780-08-000012.txt : 20080804 0000868780-08-000012.hdr.sgml : 20080804 20080804083420 ACCESSION NUMBER: 0000868780-08-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080628 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080804 DATE AS OF CHANGE: 20080804 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Dorman Products, Inc. CENTRAL INDEX KEY: 0000868780 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 232078856 STATE OF INCORPORATION: PA FISCAL YEAR END: 1207 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-18914 FILM NUMBER: 08986644 BUSINESS ADDRESS: STREET 1: 3400 E WALNUT ST CITY: COLMAR STATE: PA ZIP: 18915 BUSINESS PHONE: 2159971800 MAIL ADDRESS: STREET 1: 3400 E WALNUT ST CITY: COLMAR STATE: PA ZIP: 18915 FORMER COMPANY: FORMER CONFORMED NAME: R & B INC DATE OF NAME CHANGE: 19930328 8-K 1 sec8k2q080108.txt SEC FORM 8-K Q2 EARNINGS RELEASE UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 1, 2008 Dorman Products, Inc. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Pennsylvania 000-18914 23-2078856 ------------ --------- ---------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 3400 East Walnut Street, Colmar, Pennsylvania 18915 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 215-997-1800 ---------------------------- - ------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) =============================================================================== Item 2.02. Results of Operations and Financial Condition. The information being furnished in this Item 2.02 and in Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended or the Exchange Act except as shall be expressly set forth by specific reference in such filing. On August 1, 2008, Dorman Products, Inc. (the "Company") issued a press release announcing its operating results for the second quarter ending June 28, 2008. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. Item 9.01. Financial Statements and Exhibits Exhibit Number Description 99.1 Press Release Dated August 1, 2008 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Dorman Products, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Dorman Products, Inc. Dated: August 4, 2008 By: /s/ Mathias J. Barton ------------------------------------- Mathias J. Barton Chief Financial Officer and Principal Accounting Officer EXHIBIT INDEX Exhibit Number Description 99.1 Press Release Dated August 1, 2008 EX-99 2 q2press.txt Q2 2008 EARNINGS 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: 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 Second Quarter Ended June 28, 2008 Colmar, Pennsylvania (August 1, 2008) - Dorman Products, Inc. (NASDAQ:DORM) today announced financial results for the second quarter ended June 28, 2008. Sales increased 5% to $90.3 million for the three months ended June 28, 2008 from $85.8 million last year. Revenues for the six months ended June 28, 2008 were up 6% to $170.4 million from $160.1 million last year. The favorable effect of foreign currency exchange and the acquisition of the Consumer Division of Rockford Products Corporation accounted for approximately 3% of the net sales increase in both periods. The remaining increase is primarily the result of increased revenues from new product sales. Reported net income in the second quarter of 2008 was $5.2 million compared to net income of $5.8 million in the same period last year. Reported diluted earnings per share in the second quarter of 2008 were $0.29 compared to $0.32 in the same period last year. Prior year results include a $0.01 per share benefit from a reduction in vacation expense as a result of a change in our vacation policy. Excluding the impact of this adjustment, net income in the second quarter of 2008 was $5.2 million compared to net income of $5.5 million in the same period last year and diluted EPS in the second quarter of 2008 decreased to $0.29 from $0.31 in the same period last year. For the thirteen weeks ended June 28, 2008 and June 30, 2007: o Gross profit margin was 33.4% compared to 33.9% in the prior year The decrease is primarily the result of higher material costs caused by higher commodity price increases and weakness in the U.S. dollar o Selling, general and administrative expenses for the thirteen weeks ended June 28, 2008 increased 12% to $21.5 million from $19.2 million in the same period last year. The increase is the result of higher variable costs related to our sales growth and increased staffing levels in product development, engineering and quality control. Results for the thirteen weeks ended June 30, 2007 also include a $0.3 million reduction in vacation expense due to the vacation policy change mentioned above. o Interest expense, net, decreased to $0.3 million from $0.5 million due to lower interest rates. o Our effective tax rate decreased to 37.8% in the thirteen weeks ended June 28, 2008 from 38.1% in the same period last year. The decrease is primarily the result of the reversal of reserves upon completion of the audit of our 2005 tax year by the Internal Revenue Service. Reported net income in the first six months of 2008 was $7.9 million compared to net income of $9.8 million in the same period last year. Reported diluted earnings per share in the six months ended June 30, 2008 were $0.44 compared to $0.54 in the same period last year. Excluding the vacation adjustment discussed below, net income in the first six months of 2008 was $7.9 million compared to net income of $9.3 million in the same period last year and diluted EPS for the first six months of 2008 decreased to $0.44 from $0.52 in the same period last year. Mr. Richard Berman, Chairman and Chief Executive Officer, said, "Sales growth in the quarter was 5% due to challenging aftermarket conditions. We also saw further increases in costs from rising commodity prices and the weak dollar that have not been offset by selling price increases. These factors combined to result in a decline in second quarter earnings. Our balance sheet is strong and we remain confident in the long-term success of our business despite these short term setbacks. We remain committed to maintaining our leadership position in 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 (TM), HELP! (R), AutoGrade (TM), Second 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 2007 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) 06/28/08 Pct. 06/30/07 Pct. Net sales $90,311 100.0 $85,796 100.0 Cost of goods sold 60,146 66.6 56,726 66.1 Gross profit 30,165 33.4 29,070 33.9 Selling, general and administrative expenses 21,469 23.8 19,225 22.4 Income from operations 8,696 9.6 9,845 11.5 Interest expense, net 285 0.3 512 0.6 Income before income taxes 8,411 9.3 9,333 10.9 Provision for income taxes 3,178 3.5 3,565 4.2 Net income $ 5,233 5.8 $ 5,768 6.7 Earnings per share Basic $ 0.30 - $ 0.33 - Diluted $ 0.29 - $ 0.32 - Average shares outstanding Basic 17,692 - 17,688 - Diluted 18,041 - 18,129 - 26 Weeks 26 Weeks Year to Date (unaudited) 06/28/08 Pct. 06/30/07 Pct. Net sales $170,436 100.0 $160,089 100.0 Cost of goods sold 115,568 67.8 105,243 65.7 Gross profit 54,868 32.2 54,846 34.3 Selling, general and administrative expenses 41,453 24.3 38,010 23.8 Income from operations 13,415 7.9 16,836 10.5 Interest expense, net 553 0.4 1,039 0.6 Income before income taxes 12,862 7.5 15,797 9.9 Provision for income taxes 4,947 2.9 5,967 3.8 Net income $ 7,915 4.6 $ 9,830 6.1 Earnings per share Basic $ 0.45 - $ 0.56 - Diluted $ 0.44 - $ 0.54 - Average shares outstanding Basic 17,695 - 17,689 - Diluted 18,064 - 18,119 - DORMAN PRODUCTS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (in thousands) 06/28/08 12/29/07 Assets: Cash and cash equivalents $ 7,492 $ 6,918 Accounts receivable 82,079 76,897 Inventories 87,888 80,565 Deferred income taxes 10,306 10,111 Prepaid expenses 3,103 1,921 Total current assets 190,868 176,412 Property & equipment 25,295 25,680 Goodwill 26,645 26,662 Other assets 1,629 1,901 Total assets $244,437 $230,655 Liability & Shareholders' Equity: Current portion of long-term debt $ 8,656 $ 8,654 Accounts payable 20,902 18,752 Accrued expenses and other 7,788 10,718 Total current liabilities 37,346 38,124 Long-term debt and other 16,260 10,811 Deferred income taxes 8,392 7,862 Shareholders' equity 182,439 173,858 Total Liabilities and Equity $244,437 $230,655 Selected Cash Flow Information: (in thousands) 13 Weeks (unaudited) 26 Weeks (unaudited) -------------------- -------------------- 06/28/08 06/30/07 06/28/08 06/30/07 Depreciation and amortization $ 1,885 $1,885 $ 3,814 $3,748 Capital Expenditures $ 2,068 $1,410 $ 3,603 $2,652 DORMAN PRODUCTS, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures (in thousands, except per-share amounts) This press release contains non-GAAP measures which adjust net income and diluted earnings per share to exclude the impact of the following item: - Effective December 31, 2006, we changed our vacation policy so that vacation is earned ratably throughout the year rather than at the end of the preceding year. This change resulted in a reduction in our vacation accrual of $1.8 million in 2007, $0.4 of which was recorded in the three months ended June 30, 2007, and $0.8 million of which was recorded in the six months ended June 30, 2007. The presentation of these non-GAAP measures is intended to enhance the usefulness of the financial information by providing measures which the Company's management uses internally to evaluate the Company's baseline performance. A reconciliation of net income and diluted earnings per share follows: 13 Weeks (unaudited) --------------------------------------------- 06/28/08 06/30/07 %Change Net income, as reported $ 5,233 $5,768 -9.3% Less:Vacation adjustment net of tax - (238) N/A _____________________________________________ Net income, as adjusted $ 5,233 $5,530 -5.4% _____________________________________________ Diluted EPS, as reported $ 0.29 $0.32 -9.4% Less:Vacation adjustment net of tax - (0.01) N/A _____________________________________________ Diluted EPS, as adjusted $ 0.29 $0.31 -6.5% _____________________________________________ 26 Weeks (unaudited) --------------------------------------------- 06/28/08 06/30/07 %Change Net income, as reported $ 7,915 $ 9,830 -19.5% Less:Vacation adjustment net of tax - (487) N/A _____________________________________________ Net income, as adjusted $ 7,915 $ 9,343 -15.3% _____________________________________________ Diluted EPS, as reported $ 0.44 $0.54 -18.5% Less:Vacation adjustment net of tax - (0.02) N/A _____________________________________________ Diluted EPS, as adjusted $ 0.44 $0.52 -15.4% _____________________________________________ -----END PRIVACY-ENHANCED MESSAGE-----