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 26, 2016

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 26, 2016, Dorman Products, Inc. (the “Company”) issued a press release announcing its operating results for the first quarter ended March 26, 2016. 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) claims of intellectual property infringement made by original equipment manufacturers; (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 26, 2015. 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 26, 2016

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 26, 2016	By:	/s/ Michael P. Ginnetti
		Name: Michael P. Ginnetti
		Title: Chief Financial Officer

Exhibit Index

Exhibit Number	Description
99.1	Press Release dated April 26, 2016

EX-99.1

Exhibit 99.1

NEWS RELEASE

Contact: Matt Barton, President and CEO, mbarton@dormanproducts.com, (215) 997-1800. Visit our website at www.dormanproducts.com

For Further Information Contact:

Dorman Products, Inc. Reports Sales and Earnings

For the First Quarter Ended March 26, 2016

• Q1 sales increased 10% to $208.1 million

• Q1 EPS increased 18% to $0.71 per diluted share

• Cash flow from operations was $23.9 million

COLMAR, PENNSYLVANIA (April 26, 2016) – Dorman Products, Inc. (NASDAQ:DORM) today announced sales for the first quarter ended March 26, 2016 of $208.1 million, an increase of 10% from $188.5 million in the first quarter of 2015. Diluted earnings per share for the first quarter ended March 26, 2016 increased 18% to $0.71 per share from $0.60 per share in the first quarter of 2015.

“We are pleased with our first quarter sales growth. It exceeded our expectations as a result of stronger than anticipated inventory expansion by one customer, and strong purchase and sell through levels throughout most of our customer base. First quarter 2016 EPS grew by 18% on 10% sales growth as a result of solid operating expense leverage. Our outlook for the year is for mid- to high- single digit revenue and profit growth despite the strong start to 2016 as we expect increased competitive pressures to impact results beginning in the second quarter. We remain optimistic about on the long-term outlook for the business as we continue to invest in our new product capabilities in the markets we serve,” said Matt Barton, President and Chief Executive Officer.

Gross profit margin was consistent year over year at 38.7%. SG&A expenses increased 6% in the first quarter of 2016 to $41.7 million from $39.2 million in the first quarter of 2015. The increase was the result of higher variable expenses associated with our sales growth and labor cost increases. Results for the first quarter of 2016 include a pre-tax charge of $0.9 million for an additional provision for uncollectible accounts receivable due to the bankruptcy of one customer early in the year. We expect no further impact from this matter. Results for the first quarter of 2015 included $1.7 million in incremental costs associated with our now completed September 2014 ERP conversion.

“We are working hard on all fronts to continue to grow the Aftermarket one innovation at a time. A few examples of our recent success include:

• New product additions resulted in 1,103 unique SKU’s in the first quarter.

• Our Dorman HD Solutions offering continues to gain momentum in the heavy duty aftermarket, and was up 60% in the first quarter of 2016. Revenue from new products including EGR components, fluid reservoirs and lighting, combined with increased penetration across core customers drove the performance. We are confident that this brand will continue its strong growth trajectory.

• Our investments in Complex Electronics are paying off, with a year over year sales increase of 58%.

• In April we distributed over 1 million copies of our 2016 ‘Service Dealer Guide’ publication to our distribution partners, stores and technicians. This new guide features formerly ‘Dealer Only’ parts – now available to the Aftermarket. These exclusive new parts reduce dependency on the OE Dealer and provide Dorman’s customers a better choice for automotive replacement parts.

I would like to thank all of our contributors for another successful quarter, and our customers and end-users for their continued support and acceptance of our new products,” said Mr. Barton.

The Company repurchased 207,166 shares of its common stock for $9.6 million at an average price of $46.46 per share during the first quarter of 2016, and has $64.3 million remaining under its current $150 million share repurchase program.

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, including statements related to the Company’s future growth rates. 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 26, 2015. 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
	3/26/16		Pct.		3/28/15		Pct.
First Quarter (unaudited)
Net sales	$	208,148		100.0	$	188,474		100.0
Cost of goods sold		127,554		61.3		115,581		61.3
Gross profit		80,594		38.7		72,893		38.7
Selling, general and administrative expenses		41,663		20.0		39,241		20.8
Income from operations		38,931		18.7		33,652		17.9
Interest expense, net		57		0.0		52		0.1
Income before income taxes		38,874		18.7		33,600		17.8
Provision for income taxes		14,203		6.8		12,261		6.5
Net income	$	24,671		11.9	$	21,339		11.3
Diluted earnings per share	$	0.71			$	0.60
Weighted average diluted shares outstanding		34,734				35,643

DORMAN PRODUCTS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands)

	3/26/16		12/26/15
Assets:
Cash and cash equivalents	$	86,978	$	78,659
Accounts receivable		207,395		203,923
Inventories		187,586		193,725
Prepaid expenses		2,732		2,326
Total current assets		484,691		478,633
Property, plant & equipment, net		88,429		87,046
Goodwill and other intangible assets, net		29,864		29,889
Deferred income taxes, net		7,999		7,557
Other assets		20,226		18,740
Total assets	$	631,209	$	621,865
Liabilities & shareholders’ equity:
Accounts payable	$	52,262	$	63,967
Accrued expenses and other		40,225		34,603
Total current liabilities		92,487		98,570
Other long-term liabilities		5,572		5,259
Shareholders’ equity		533,150		518,036
Total liabilities and equity	$	631,209	$	621,865
Selected Cash Flow Information (unaudited):
(in thousands)	13 Weeks		13 Weeks
	3/26/16		3/28/15
Depreciation, amortization and accretion	$	4,499	$	3,618
Capital expenditures	$	5,598	$	5,749