EX-99.1 2 d618876dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

NEWS RELEASE

 

LOGO

Contact: Matthew Kohnke, CFO, mkohnke@dormanproducts.com, (215) 997-1800. Visit our website at www.dormanproducts.com

Dorman Products, Inc. Reports Sales and Earnings

For the Third Quarter Ended September 28, 2013

Third Quarter Highlights:

 

    Sales increased 14% to $178 million.

 

    Income from continuing operations increased 16% to $22.9 million, or $0.62 per diluted share.

 

    Operating margin increased to 20.0% from 19.9% during the same period last year.

COLMAR, PENNSYLVANIA (October 29, 2013) – Dorman Products, Inc. (NASDAQ:DORM) today announced sales for the third quarter ended September 28, 2013 of $178.0 million, an increase of 14% from $156.4 million in the third quarter of 2012. The Company also announced income from continuing operations of $22.9 million, or $0.62 per diluted share, for the third quarter ended September 28, 2013, up 16% from the prior year’s income from continuing operations of $19.8 million, or $0.54 per diluted share.

“Strong demand for our products, including those introduced in the last 24 months, resulted in the 14% sales increase during the third quarter. We are especially pleased with this strong sales increase in light of the fact that sales growth in the third quarter of 2012 was 20%,” said Mr. Steven Berman, Chairman and Chief Executive Officer.

Gross profit margin was 39.2% for the third quarter ended September 28, 2013, compared to 38.2% for the same period last year. The improvement in margin is primarily the result of a favorable change in sales mix and lower transportation costs. Selling, general and administrative expenses increased 19% in 2013 to $34.0 million from $28.6 million in 2012. Cost increases were primarily the result of higher variable costs associated with the 14% sales growth, increased spending on product development activities, and depreciation and other related support costs associated with our recent enterprise reporting system implementation.

For the nine months ended September 28, 2013, sales increased 14% over the prior year period to $494.7 million from $435.4 million last year. Income from continuing operations in 2013 increased 20% to $61.3 million from $51.2 million in the same period last year. Diluted earnings per share from continuing operations in 2013 rose 19% to $1.67 from $1.40 in the same period last year. Research and development spending for the year increased 22% to $9.5 million from $7.8 million last year.

“We continue to make investments in new product development activities to allow future growth opportunities for us and our customers. We are very excited about the launch of our Dorman Hybrid initiative. Early customer and end user feedback on the initiative has been positive,” said Mr. Berman. “Our booth at November’s Automotive Aftermarket Parts Expo (AAPEX) will provide a showcase for many of our latest new-to-the-aftermarket parts, including our Hybrid Drive Batteries. As with prior years at AAPEX, everything at the Dorman booth will be new – giving our customers the opportunity to see highlights of the over 2,700 new parts we have released in 2013.”


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®, OE Solutions™, HELP!®, AutoGrade™, First Stop™, Conduct-Tite®, renew™, TECHoice™, Dorman HD Solutions™ and Symmetry® brand names.

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “demonstrate,” “expect,” “estimate,” “forecast,” “anticipate,” “should” and “likely” and similar expressions identify forward-looking statements. In addition, statements that are not historical should also be considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, competition in the automotive aftermarket industry, concentration of the Company’s sales and accounts receivable among a small number of customers, the impact of consolidation in the automotive aftermarket industry, foreign currency fluctuations, dependence on senior management and other risks detailed in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 29, 2012. The Company is under no obligation to (and expressly disclaims any such obligation to) update any of the information in this press release if any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise.


DORMAN PRODUCTS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per-share amounts)

 

     13 Weeks      13 Weeks  
Third Quarter (unaudited)    9/28/13      Pct.      9/29/12      Pct.  

Net sales

   $ 177,953         100.0       $ 156,411         100.0   

Cost of goods sold

     108,249         60.8         96,665         61.8   

Gross profit

     69,704         39.2         59,746         38.2   

Selling, general and administrative expenses

     34,034         19.2         28,615         18.3   

Income from operations

     35,670         20.0         31,131         19.9   

Interest expense, net

     47         —           38         —     

Income from continuing operations before income taxes

     35,623         20.0         31,093         19.9   

Provision for income taxes

     12,736         7.1         11,337         7.3   

Income from continuing operations

     22,887         12.9         19,756         12.6   

Income from discontinued operations

     —           —           586         —     

Net income

   $ 22,887         —         $ 20,342         —     

Diluted earnings per share:

           

Continuing operations

   $ 0.62         —         $ 0.54         —     

Discontinued operations

     —           —           0.02         —     

Diluted earnings per share

   $ 0.62         —         $ 0.56         —     

Weighted average diluted shares outstanding

     36,632         —           36,622         —     


DORMAN PRODUCTS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per-share amounts)

 

     39 Weeks      39 Weeks  
Third Quarter (unaudited)    9/28/13      Pct.      9/29/12      Pct.  

Net sales

   $ 494,657         100.0       $ 435,406         100.0   

Cost of goods sold

     299,774         60.6         272,038         62.5   

Gross profit

     194,883         39.4         163,368         37.5   

Selling, general and administrative expenses

     98,551         19.9         82,103         18.8   

Income from operations

     96,332         19.5         81,265         18.7   

Interest expense, net

     148         0.1         90         0.1   

Income from continuing operations before income taxes

     96,184         19.4         81,175         18.6   

Provision for income taxes

     34,883         7.0         30,019         6.9   

Income from continuing operations

     61,301         12.4         51,156         11.7   

Income from discontinued operations

     —           —           4,506         —     

Net income

   $ 61,301         —         $ 55,662         —     

Diluted earnings per share:

           

Continuing operations

   $ 1.67         —         $ 1.40         —     

Discontinued operations

     —           —           0.13         —     

Diluted earnings per share

   $ 1.67         —         $ 1.53         —     

Weighted average diluted shares outstanding

     36,610         —           36,489         —     


DORMAN PRODUCTS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands)

 

     9/28/13      12/29/12  

Assets:

     

Cash and cash equivalents

   $ 48,335       $ 27,708   

Accounts receivable

     178,702         140,180   

Inventories

     149,098         145,270   

Deferred income taxes

     20,093         20,559   

Prepaid expenses

     2,799         2,332   

Total current assets

     399,027         336,049   

Property & equipment

     58,717         48,758   

Goodwill and other intangible assets

     30,114         26,553   

Other assets

     1,734         1,323   

Total assets

   $ 489,592       $ 412,683   

Liabilities & Shareholders’ Equity:

     

Accounts payable

   $ 49,136       $ 42,387   

Accrued expenses and other

     28,654         21,298   

Total current liabilities

     77,790         63,685   

Other long-term liabilities

     5,779         3,447   

Deferred income taxes

     12,449         12,679   

Shareholders’ equity

     393,574         332,872   

Total Liabilities and Equity

   $ 489,592       $ 412,683   

Selected Cash Flow Information:

 

(in thousands)    13 Weeks (unaudited)      39 Weeks (unaudited)  
     9/28/13      9/29/12      9/28/13      9/29/12  

Depreciation and amortization

   $ 2,684       $ 2,017       $ 7,417       $ 5,973   

Capital expenditures

   $ 5,863       $ 4,983       $ 12,949       $ 14,437