ex99_1.htm

		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

Colmar, Pennsylvania (February 23, 2010) – Dorman Products, Inc. (NASDAQ:DORM) today announced financial results for the fourth quarter ended December 26, 2009.

Revenues for the three months ended December 26, 2009 increased 20% over the prior year to $96.7 million from $80.7 million last year. For the year ended December 26, 2009, revenues were up 10% to $377.4 million from $342.3 million. Revenue growth in both periods was driven by strong overall demand for our products and higher new product sales.

Reported net income in the fourth quarter of 2009 was up 57% to $7.7 million from $4.9 million in the same period last year. Reported diluted earnings per share in the fourth quarter of 2009 rose 59% to $0.43 from $0.27 in the same period last year. Excluding the impact of the one-time item shown in the reconciliation of non-GAAP measures below, net income in the fourth quarter of 2009 was up 83% to $7.7 million from $4.2 million in the same period last year and diluted EPS in the fourth quarter of 2009 increased 87% to $0.43 from $0.23 in the same period last year.

Reported net income for the year ended December 26, 2009 was up 49% to $26.5 million from $17.8 million in the same period last year. Reported diluted earnings per share for the year ended December 26, 2009 were up 48% to $1.47 from $0.99 last year. Excluding the impact of the one-time item shown in the reconciliation of non-GAAP measures below, net income in 2009 was up 55% to $26.5 million from $17.1 million in the same period last year and diluted EPS in 2009 increased 55% to $1.47 from $0.95 in the same period last year.

Gross profit margin was 34.9% in 2009 compared to 32.2% in 2008. The increase in margin is 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 increased 7.7% in 2009 to $88.1 million from $81.8 million in 2008, but was down as a percentage of sales from 23.9% in 2008 to 23.3% in 2009. The spending increase was the result of higher variable costs related to our sales increase as well as increased new product development spending and higher incentive compensation expense due to higher earnings levels.

Our effective tax rate increased to 38.8% from 35.2% in the prior year. The increase is the result of a $0.7 million tax benefit realized in 2008 upon the disposition of our Canadian Subsidiary and higher provisions for state income taxes in 2009.

Operating cash flow for 2009 increased $17.9 million to $27.6 million from $9.7 million in 2008. The increased cash flow enabled us to decrease total debt by $15.1 million during 2009. Total debt outstanding as of December 26, 2009 was only $0.4 million.

Mr. Richard Berman, Chairman and Chief Executive Officer, said, “Revenue growth in 2009 was just over 10% and was driven primarily by continued strong acceptance and market penetration of our new product lines and line extensions. Our 2010 plan provides for further investment in our new product capabilities. We look forward to sharing the new products generated by these investments with our customers and end users as the year progresses.”

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.

	13 Weeks				13 Weeks
Fourth Quarter (unaudited)	12/26/09		Pct.		12/27/08		Pct.
Net sales	$	96,698		100.0	$	80,687		100.0
Cost of goods sold		60,634		62.7		54,875		68.0
Gross profit		36,064		37.3		25,812		32.0
Selling, general and administrative expenses		23,114		23.9		19,318		24.0
Income from operations		12,950		13.4		6,494		8.0
Interest expense, net		139		0.2		146		0.1
Income before income taxes		12,811		13.2		6,348		7.9
Provision for income taxes		5,074		5.2		1,498		1.9
Net income	$	7,737		8.0	$	4,850		6.0
Earnings per share
Basic	$	0.44		-	$	0.27		-
Diluted	$	0.43		-	$	0.27		-
Average shares outstanding
Basic		17,683		-		17,649		-
Diluted		18,024		-		18,018		-

	52 Weeks				52 Weeks
Year to Date (unaudited)	12/26/09		Pct.		12/27/08		Pct.
Net sales	$	377,378		100.0	$	342,325		100.0
Cost of goods sold		245,592		65.1		232,140		67.8
Gross profit		131,786		34.9		110,185		32.2
Selling, general and administrative expenses		88,117		23.3		81,781		23.9
Income from operations		43,669		11.6		28,404		8.3
Interest expense, net		343		0.1		920		0.3
Income before income taxes		43,326		11.5		27,484		8.0
Provision for income taxes		16,831		4.5		9,671		2.8
Net income	$	26,495		7.0	$	17,813		5.2
Earnings per share
Basic	$	1.50		-	$	1.01		-
Diluted	$	1.47		-	$	0.99		-
Average shares outstanding
Basic		17,658		-		17,675		-
Diluted		17,996		-		18,049		-

	12/26/09		12/27/08
Assets:
Cash and cash equivalents	$	10,626	$	5,824
Accounts receivable		88,164		77,101
Inventories		89,927		93,577
Deferred income taxes		12,620		11,626
Prepaid expenses		2,248		2,135
Total current assets		203,585		190,263
Property & equipment		25,218		25,053
Goodwill		26,553		26,553
Other assets		2,046		1,553
Total assets	$	257,402	$	243,422

Liability & Shareholders’ Equity:
Current portion of long-term debt	$	90	$	86
Accounts payable		16,098		21,900
Accrued expenses and other		14,244		8,040
Total current liabilities		30,432		30,026
Long-term debt and other		2,941		17,464
Deferred income taxes		8,694		8,088
Shareholders’ equity		215,335		187,844
Total Liabilities and Equity	$	257,402	$	243,422

(in thousands)	13 Weeks (unaudited)				52 Weeks (unaudited)
	12/26/09		12/27/08		12/26/09		12/27/08
Depreciation and amortization	$	2,061	$	1,965	$	7,835	$	7,672
Capital Expenditures	$	1,904	$	1,531	$	7,830	$	7,323

This press release contains non-GAAP measures which adjust net income and diluted earnings per share to exclude the impact of the following one-time items:

Results for the thirteen weeks and year ended December 27, 2008 include a $0.7 million tax benefit realized upon the disposition of our Canadian subsidiary.

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)
	12/26/09		12/27/08			% Change
Net income, as reported	$	7,737		4,850			59.5	%
Less: Tax benefit upon disposition of subsidiary		-		(673	)		N/A
Net income, as adjusted	$	7,737		4,177			85.2	%

Diluted EPS, as reported	$	0.43		0.27			59.3	%
Less: Tax benefit upon disposition of subsidiary		-		(0.04	)		N/A
Diluted EPS, as adjusted	$	0.43		0.23			87.0	%


	52 Weeks (unaudited)
	12/26/09		12/27/08			% Change
Net income, as reported	$	26,495		17,813			48.7	%
Less: Tax benefit upon disposition of subsidiary		-		(673	)		N/A
Net income, as adjusted	$	26,495		17,140			54.6	%

Diluted EPS, as reported	$	1.47		0.99			48.5	%
Less: Tax benefit upon disposition of subsidiary		-		(0.04	)		N/A
Diluted EPS, as adjusted	$	1.47		0.95			54.7	%