Dorman Products, Inc. Reports Sales and Earnings for the Fourth Quarter and Year Ended December 29, 2012
COLMAR, PA--(Marketwire - Feb 21, 2013) - Dorman Products, Inc. (NASDAQ: DORM) today announced sales for the fourth quarter ended December 29, 2012 of $135.0 million, down slightly from $135.6 million in the fourth quarter of 2011. The decline was the result of an extra week in the fourth quarter of 2011 that generated approximately $4.8 million in sales, and a planned one-time $5.1 million reduction in orders to remove inventory from a large customer's supply chain in anticipation of a January 2013 change in how our customer distributes our products through its distribution network. Excluding the impact of these items, sales growth would have been approximately 7% in the fourth quarter of 2012.
Net income from continuing operations was $15.2 million, or $0.42 per diluted share, for the fourth quarter ended December 29, 2012, consistent with the prior year's net income from continuing operations of $15.2 million, or $0.42 per diluted share. The fourth quarter 2011 results included 14 weeks while the fourth quarter 2012 results include 13 weeks.
"We are reporting strong full year 2012 results despite the flat fourth quarter, which we attribute to the one-time factors noted above," said Mr. Steven Berman, Chairman and Chief Executive Officer. "Dorman continued to invest in its new product capabilities in 2012 as we grew our product development resources by 12% during the year. Our goal is to drive low double-digit sales and earnings growth over the long term through continued increases in the number of Formerly Dealer Only parts that we make available to our customers and end users."
Gross profit margin was 38.4% for the fourth quarter ended December 29, 2012 compared to 37.0% for the same period last year. The increase in margin percent is primarily the result of a favorable change in sales mix and lower transportation costs. Selling, general and administrative expenses increased 9% in the fourth quarter of 2012 to $28.9 million from $26.5 million in the fourth quarter of 2011. Cost increases were primarily the result of additional product development spending and increased incentive compensation levels.
For the fiscal year ended December 29, 2012, sales increased 11% over the prior year to $570.4 million from $513.4 million last year. Excluding the impact of the extra week in 2011, sales increased 12% over 2011 levels. Net income from continuing operations in 2012 increased 18% to $66.4 million from $56.2 million in the prior year. Diluted earnings per share from continuing operations in 2012 rose 17% to $1.82 from $1.55 in the prior year. Operating cash flow in 2012 was $48.9 million compared to $38.1 million in 2011.
"This year marked our 4th consecutive year of double digit sales and earnings growth, and our 12th consecutive year of sales growth. In 2012, we continued our commitment to our 'New to the Aftermarket' initiative by introducing a record number of new parts to the automotive aftermarket, including over 800 'Formerly Dealer Only' parts that were not previously available in the aftermarket. I would like to thank all of our contributors for another outstanding year, and our customers and end-users for their continued support and acceptance of our new products," said Mr. Steven Berman, Chairman and Chief Executive Officer.
During 2012, we liquidated our Swedish business, the results of which are presented as discontinued operations. The 2012 results include a one-time $3.0 million non-cash currency translation gain and $1.4 million in benefits from foreign tax credits as a result of the liquidation.
Prior year earnings per share and weighted average share information have been adjusted to reflect the 2-for-1 stock split paid on June 25, 2012.
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 31, 2011. 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 | 14 Weeks | ||||||||||
Fourth Quarter (unaudited) | 12/29/12 | Pct. | 12/31/11 | Pct. | |||||||
Net sales | $ | 135,014 | 100.0 | $ | 135,642 | 100.0 | |||||
Cost of goods sold | 83,173 | 61.6 | 85,412 | 63.0 | |||||||
Gross profit | 51,841 | 38.4 | 50,230 | 37.0 | |||||||
Selling, general and administrative expenses | 28,875 | 21.4 | 26,508 | 19.5 | |||||||
Income from operations | 22,966 | 17.0 | 23,722 | 17.5 | |||||||
Interest expense, net | 33 | - | 8 | - | |||||||
Income from continuing operations before income taxes | 22,933 | 17.0 | 23,714 | 17.5 | |||||||
Provision for income taxes | 7,684 | 5.7 | 8,557 | 6.3 | |||||||
Net income from continuing operations | 15,249 | 11.3 | 15,157 | 11.2 | |||||||
Net income from discontinued operations | 51 | - | 1,487 | - | |||||||
Net income | $ | 15,300 | - | $ | 16,644 | - | |||||
Diluted earnings per share: | |||||||||||
Continuing operations | $ | 0.42 | - | $ | 0.42 | - | |||||
Discontinued operations | - | - | 0.04 | - | |||||||
Diluted earnings per share | $ | 0.42 | - | $ | 0.46 | - | |||||
Weighted average diluted shares outstanding | 36,609 | - | 36,460 | - | |||||||
DORMAN PRODUCTS, INC. AND SUBSIDIARIES | ||||||||||||
Consolidated Statements of Operations | ||||||||||||
(in thousands, except per-share amounts) | ||||||||||||
52 Weeks | 53 Weeks | |||||||||||
Year Ended (unaudited) | 12/29/12 | Pct. | 12/31/11 | Pct. | ||||||||
Net sales | $ | 570,420 | 100.0 | $ | 513,432 | 100.0 | ||||||
Cost of goods sold | 355,211 | 62.3 | 324,165 | 63.1 | ||||||||
Gross profit | 215,209 | 37.7 | 189,267 | 36.9 | ||||||||
Selling, general and administrative expenses | 110,978 | 19.4 | 101,630 | 19.8 | ||||||||
Income from operations | 104,231 | 18.3 | 87,637 | 17.1 | ||||||||
Interest expense, net | 123 | - | 103 | 0.1 | ||||||||
Income from continuing operations before income taxes | 104,108 | 18.3 | 87,534 | 17.0 | ||||||||
Provision for income taxes | 37,703 | 6.7 | 31,332 | 6.1 | ||||||||
Net income from continuing operations | 66,405 | 11.6 | 56,202 | 10.9 | ||||||||
Net income (loss) from discontinued operations | 4,557 | - | (2,925 | ) | - | |||||||
Net income | $ | 70,962 | - | $ | 53,277 | - | ||||||
Diluted earnings (loss) per share: | ||||||||||||
Continuing operations | $ | 1.82 | - | $ | 1.55 | - | ||||||
Discontinued operations | 0.12 | - | (0.08 | ) | - | |||||||
Diluted earnings per share | $ | 1.94 | - | $ | 1.47 | - | ||||||
Weighted average diluted shares outstanding | 36,494 | - | 36,370 | - | ||||||||
DORMAN PRODUCTS, INC. AND SUBSIDIARIES | ||||||
Condensed Consolidated Balance Sheets | ||||||
(Unaudited) | ||||||
(in thousands) | ||||||
12/29/12 | 12/31/11 | |||||
Assets: | ||||||
Cash and cash equivalents | $ | 27,708 | $ | 50,196 | ||
Accounts receivable | 133,806 | 124,324 | ||||
Inventories | 145,270 | 115,845 | ||||
Deferred income taxes | 20,559 | 17,127 | ||||
Prepaid expenses | 2,332 | 2,661 | ||||
Total current assets | 329,675 | 310,153 | ||||
Property & equipment | 48,758 | 38,904 | ||||
Goodwill | 26,553 | 26,553 | ||||
Other assets | 1,323 | 1,083 | ||||
Total assets | $ | 406,309 | $ | 376,693 | ||
Liabilities & Shareholders' Equity: | ||||||
Accounts payable | $ | 42,387 | $ | 31,646 | ||
Accrued expenses and other | 14,924 | 12,907 | ||||
Total current liabilities | 57,311 | 44,553 | ||||
Other long-term liabilities | 3,447 | 3,406 | ||||
Deferred income taxes | 12,679 | 11,631 | ||||
Shareholders' equity | 332,872 | 317,103 | ||||
Total Liabilities and Equity | $ | 406,309 | $ | 376,693 | ||
Selected Cash Flow Information (unaudited): | ||||||||||||||
(in thousands) | 13 Weeks | 14 Weeks | 52 Weeks | 53 Weeks | ||||||||||
12/29/12 | 12/31/11 | 12/29/12 | 12/31/11 | |||||||||||
Depreciation and amortization | $ | 2,252 | $ | 2,027 | $ | 8,225 | $ | 7,737 | ||||||
Capital expenditures | $ | 3,641 | $ | 3,188 | $ | 18,078 | $ | 18,102 | ||||||
