Dorman Products, Inc. Reports Record Sales and Earnings for the Second Quarter Ended June 30, 2012
COLMAR, PA -- (Marketwire) -- 07/31/12 -- Dorman Products, Inc. (DORM) today announced financial results for the second quarter ended June 30, 2012.
For the three months ended June 30, 2012 and June 25, 2011:
- Revenues from continuing operations in 2012 increased 14% over the prior year to $144.2 million from $127.0 million. Revenue growth was driven primarily by strong overall demand for our products and higher revenues from recently-introduced products.
- Net income from continuing operations in 2012 increased 25% to $16.1 million from $12.9 million last year. Diluted earnings per share from continuing operations in 2012 rose 26% to $0.44 from $0.35 in 2011.
- Gross profit margin was 36.9% in 2012 compared to 35.9% in 2011. The increase in margin percent is primarily the result of lower transportation costs and a favorable change in sales mix.
- Selling, general and administrative expenses increased 9% in 2012 to $27.4 million from $25.1 million in 2011, but were down as a percentage of sales to 19.1% in 2012 from 19.7% in 2011. Cost increases were primarily the result of higher variable costs and additional product development spending.
For the six months ended June 30, 2012, revenues from continuing operations increased 13% over the prior year to $279.0 million from $247.2 million last year. Net income from continuing operations in 2012 increased 21% to $31.4 million from $26.0 million in the same period last year. Diluted earnings per share in 2012 rose 21% to $0.86 from $0.71 in the same period last year. Operating cash flow in 2012 was $23.4 million compared to $19.1 million in 2011.
During the second quarter of 2012, we recorded income from discontinued operations totaling $3.6 million as a result of the liquidation of our Swedish business, which comprised of a $3.0 million non-cash currency translation gain and $0.6 million in foreign income tax credits.
Prior year earnings per share and weighted average share information have been adjusted to reflect the 2-for-1 stock split that occurred in June 2012.
Mr. Steven Berman, Chairman and Chief Executive Officer, said, "New product sales, and sales of recently-introduced products, drove 13% first half sales growth, well above reported industry growth rates. Our success is directly attributed to the hard work and dedication of our customers and our contributors in delivering formerly dealer only new products to the market. These efforts have enabled Dorman and its customers to continue to grow despite the uncertain economic environment. We remain committed to continuing our industry-leading new product efforts. As a result, we continue to aggressively invest in our product development infrastructure to deliver new products."
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 13 Weeks
-------------------- ---------------------
Second Quarter (unaudited) 6/30/12 Pct. 6/25/11 Pct.
Net sales $ 144,172 100.0 $ 126,957 100.0
Cost of goods sold 91,026 63.1 81,324 64.1
Gross profit 53,146 36.9 45,633 35.9
Selling, general and
administrative expenses 27,419 19.1 25,061 19.7
Income from operations 25,727 17.8 20,572 16.2
Interest expense, net 38 - 31 -
Income from continuing operations
before income taxes 25,689 17.8 20,541 16.2
Provision for income taxes 9,583 6.6 7,660 6.1
Net income from continuing
operations 16,106 11.2 12,881 10.1
Net income (loss) from
discontinued operations 3,636 - (134) -
Net income $ 19,742 - $ 12,747 -
Diluted earnings (loss) per
share:
Continuing operations $ 0.44 - $ 0.35 -
Discontinued operations 0.10 - (0.00) -
Diluted earnings per share $ 0.54 - $ 0.35 -
Weighted average diluted shares
outstanding 36,636 - 36,455 -
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per-share amounts)
26 Weeks 26 Weeks
--------------------- ---------------------
Second Quarter (unaudited) 6/30/12 Pct. 6/25/11 Pct.
Net sales $ 278,995 100.0 $ 247,214 100.0
Cost of goods sold 175,373 62.9 156,774 63.4
Gross profit 103,622 37.1 90,440 36.6
Selling, general and
administrative expenses 53,488 19.1 49,927 20.2
Income from operations 50,134 18.0 40,513 16.4
Interest expense, net 52 - 83 -
Income from continuing
operations before income taxes 50,082 18.0 40,430 16.4
Provision for income taxes 18,682 6.7 14,401 5.9
Net income from continuing
operations 31,400 11.3 26,029 10.5
Net income (loss) from
discontinued operations 3,920 - (896) -
Net income $ 35,320 - 25,133 -
Diluted earnings (loss) per
share:
Continuing operations
$ 0.86 - $ 0.71 -
Discontinued operations 0.11 - (0.02) -
Diluted earnings per share $ 0.97 - $ 0.69 -
Weighted average diluted shares
outstanding 36,573 - 36,406 -
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
6/30/12 12/31/11
Assets:
Cash and cash equivalents $ 65,246 $ 50,196
Accounts receivable 125,580 124,324
Inventories 137,294 115,845
Deferred income taxes 18,020 17,127
Prepaid expenses 3,010 2,661
Total current assets 349,150 310,153
Property & equipment 44,403 38,904
Goodwill 26,553 26,553
Other assets 1,070 1,083
Total assets $ 421,176 $ 376,693
Liabilities & Shareholders' Equity:
Accounts payable $ 46,510 $ 31,646
Accrued expenses and other 8,936 12,907
Total current liabilities 55,446 44,553
Other long-term liabilities 2,918 3,406
Deferred income taxes 11,640 11,631
Shareholders' equity 351,172 317,103
Total Liabilities and Equity $ 421,176 $ 376,693
Selected Cash Flow Information:
(in thousands) 13 Weeks (unaudited) 26 Weeks (unaudited)
--------------------- ---------------------
6/30/12 6/25/11 6/30/12 6/25/11
Depreciation and amortization $ 2,003 $ 1,867 $ 3,956 $ 3,726
Capital expenditures $ 4,959 $ 5,238 $ 9,454 $ 10,392
Source: Dorman Products, Inc.
