8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 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): April 29, 2014

Dorman Products, Inc.

(Exact name of Registrant as Specified in Charter)

Pennsylvania	000-18914	23-2078856
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

3400 East Walnut Street, Colmar, Pennsylvania 18915

(Address of Principal Executive Offices)

Registrant’s telephone number, including area code: (215) 997-1800

Not Applicable 

(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:

¨ 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 Operation and Financial Condition.

The information being furnished in this Item 2.02 and in Exhibit 99.1 shall not be deemed “filed” for the 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 April 29, 2014, Dorman Products, Inc. (the “Company”) issued a press release announcing its operating results for the first quarter ended March 29, 2014. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

Certain statements in this document constitute “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. While forward-looking statements sometimes are presented with numerical specificity, they are based on various assumptions made by management regarding future circumstances over many of which the Company has little or no control. Forward-looking statements may be identified by words including “anticipate,” “believe,” “estimate,” “expect,” and similar expressions. The Company cautions readers that forward-looking statements, including, without limitation, those relating to future business prospects, revenues, working capital, liquidity, and income, are subject to certain risks and uncertainties that would cause actual results to differ materially from those indicated in the forward-looking statements. Factors that could cause actual results to differ from forward-looking statements include but are not limited to: (i) competition in the automotive aftermarket; (ii) unfavorable economic conditions; (iii) the loss or decrease in sales among one of our top customers; (iv) customer consolidation in the automotive aftermarket leading to less favorable customer contract terms; (v) the cancellation or rescheduling of orders; (vi) foreign currency fluctuations and our dependence on foreign suppliers; (vii) extended credit to customers who may be unable to pay; (viii) the loss of a key vendor; (ix) limited customer shelf space; (x) reliance on new product development; (xi) patent filings made by original equipment manufacturers continuing to increase; (xii) quality problems with product after their production and sale to customers; (xiii) loss of third party transportation providers on whom we depend; (xiv) improperly executed, or unrealized cost savings from, our on-going information technology initiatives; (xv) unfavorable results of legal proceedings; (xvi) dependence on senior management and control by officers, directors, and family members; (xvii) operations may be subject to quarter fluctuations and disruptions from events beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. For additional information concerning factors that could cause actual results to differ materially from the information contained in this report, reference is made to the information in Part I, “Item 1A Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2013. You should not place undue reliance on forward-looking statements. Such statements speak only as to the date on which they are made, and we undertake no obligation to update publicly or revise any forward-looking statement, regardless of future developments or availability of new information.

Item 9.01 Financial Statements and Exhibits.

Exhibit Number	Description
99.1	Press Release dated April 29, 2014

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	DORMAN PRODUCTS, INC.
Date: April 29, 2014	By:	/s/ Matthew Kohnke
		Name:	Matthew Kohnke
		Title:	Chief Financial Officer

Exhibit Index

Exhibit Number	Description
99.1	Press Release dated April 29, 2014

EX-99.1

Exhibit 99.1

NEWS RELEASE

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 First Quarter Ended March 29, 2014

FIRST QUARTER HIGHLIGHTS

• Sales increased 19% to $183.5 million.

• Net income increased 23% to $23.6 million, or $0.64 per diluted share.

• Operating margin increased to 20.1% from 19.4% during the same period last year.

COLMAR, PENNSYLVANIA (April 29, 2014) – Dorman Products, Inc. (NASDAQ:DORM) today announced sales for the first quarter ended March 29, 2014 of $183.5 million, up 19% from $154.4 million in the first quarter of 2013. Revenue growth was driven primarily by strong overall demand for our products, higher revenues from recently-introduced products, and the shipment of several large line updates. Net income for the first quarter ended March 29, 2014 was $23.6 million, or $0.64 per diluted share, up 23% from the prior year’s net income of $19.1 million, or $0.52 per diluted share.

“Our first quarter operating results continued the growth trends we experienced in 2013. The ‘New to the Aftermarket’ initiatives that we’ve undertaken in recent years continue to generate growth rates well above reported industry rates,” said Mr. Steven Berman, Chairman and Chief Executive Officer. “These initiatives create new exciting revenue opportunities for our customers. We are grateful for the continued confidence and support from our customers and end users, which has enabled us to generate these strong growth rates.”

Gross profit margin declined slightly to 39.0% for the first quarter ended March 29, 2014 from 39.4% for the same period last year. Selling, general and administrative expenses increased 12% in 2014 to $34.7 million from $30.9 million in 2013, but declined as a percentage of sales to 18.9% in 2014 from 20.0% in 2013. Cost increases were primarily the result of higher variable expenses associated with the 19% sales growth and the 13% increase in product development headcount.

“We remain committed to continuing our industry-leading new product development efforts. As such, we are increasing investment in categories and segments like complex electronics and heavy duty truck parts that we feel offer significant opportunities for future ‘New to the Aftermarket’ growth,” said Mr. Berman.

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®, TECHoice™, Dorman® Hybrid Drive Batteries and Dorman HD Solutions™ 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 28, 2013. 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 Income

(in thousands, except per-share amounts)

	13 Weeks				13 Weeks
	3/29/14		Pct.		3/30/13		Pct.
First Quarter (unaudited)
Net sales	$	183,512		100.0	$	154,443		100.0
Cost of goods sold		111,870		61.0		93,619		60.6
Gross profit		71,642		39.0		60,824		39.4
Selling, general and administrative expenses		34,695		18.9		30,916		20.0
Income from operations		36,947		20.1		29,908		19.4
Interest expense, net		39		—		48		0.1
Income before income taxes		36,908		20.1		29,860		19.3
Provision for income taxes		13,357		7.3		10,788		7.0
Net income	$	23,551		12.8	$	19,072		12.3
Diluted earnings per share	$	0.64			$	0.52
Weighted average diluted shares outstanding		36,549		—		36,627		—

DORMAN PRODUCTS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands)

	3/29/14		12/28/13
Assets:
Cash and cash equivalents	$	64,021	$	60,593
Accounts receivable		186,087		180,777
Inventories		175,380		164,421
Deferred income taxes		21,060		20,798
Prepaid expenses		2,825		5,851
Total current assets		449,373		432,440
Property & equipment		69,491		64,786
Goodwill and other intangible assets		30,064		30,089
Other assets		2,287		1,854
Total assets	$	551,215	$	529,169
Liabilities & Shareholders’ Equity:
Accounts payable	$	58,303	$	61,255
Accrued expenses and other		32,801		30,483
Total current liabilities		91,104		91,738
Other long-term liabilities		5,021		5,310
Deferred income taxes		18,116		18,480
Shareholders’ equity		436,974		413,641
Total liabilities and equity	$	551,215	$	529,169
Selected Cash Flow Information (unaudited):
(in thousands)	13 Weeks		13 Weeks
	3/29/14		3/30/13
Depreciation, amortization and accretion	$	2,860	$	2,268
Capital expenditures	$	7,008	$	2,846