Monday, December 01, 2008 Free Registration Log-in to View Profiles
Empire Relations Group is a Premier Investor Relations Organization representing publicly-traded companies in their communications programs with existing shareholders and potential investors.
investments
OTCBB
OTCBB
Pressroom 
 
 Archived
 
 Non-Public Companies
 Consumer
 Energy, Environment & Natural Resources
 Financials
 Healthcare/BioTech
 Industrials
 IT & Computers
 Materials
 Telecommunications
 Utilities
 
 Public Companies
 Consumer
 Energy, Environment & Natural Resources
 Financials
 Healthcare/BioTech
 Industrials
 IT & Computers
 Materials
 Telecommunications
 Utilities
Search


Public Companies : Industrials


Dorman Products, Inc. Reports Sales and Earnings for the Second Quarter Ended June 28, 2008

Aug 1, 2008 - 5:36:02 AM

News Source MARKET WIRE

Email this article
 Printer friendly page
COLMAR, PA -- (MARKET WIRE) -- 08/01/08 -- Dorman Products, Inc. (NASDAQ: DORM) todayannounced financial results for the second quarter ended June 28, 2008.

Sales increased 5% to $90.3 million for the three months ended June 28,2008 from $85.8 million last year. Revenues for the six months ended June28, 2008 were up 6% to $170.4 million from $160.1 million last year. Thefavorable effect of foreign currency exchange and the acquisition of theConsumer Division of Rockford Products Corporation accounted forapproximately 3% of the net sales increase in both periods. The remainingincrease is primarily the result of increased revenues from new productsales.

Reported net income in the second quarter of 2008 was $5.2 million comparedto net income of $5.8 million in the same period last year. Reporteddiluted earnings per share in the second quarter of 2008 were $0.29compared to $0.32 in the same period last year. Prior year results includea $0.01 per share benefit from a reduction in vacation expense as a resultof a change in our vacation policy. Excluding the impact of thisadjustment, net income in the second quarter of 2008 was $5.2 millioncompared to net income of $5.5 million in the same period last year anddiluted EPS in the second quarter of 2008 decreased to $0.29 from $0.31 inthe same period last year.

For the thirteen weeks ended June 28, 2008 and June 30, 2007:

--  Gross profit margin was 33.4% compared to 33.9% in the prior year.    The decrease is primarily the result of higher material costs caused by    higher commodity price increases and weakness in the U.S. dollar.--  Selling, general and administrative expenses for the thirteen weeks    ended June 28, 2008 increased 12% to $21.5 million from $19.2 million in    the same period last year.  The increase is the result of higher variable    costs related to our sales growth and increased staffing levels in product    development, engineering and quality control.  Results for the thirteen    weeks ended June 30, 2007 also include a $0.3 million reduction in vacation    expense due to the vacation policy change mentioned above.--  Interest expense, net, decreased to $0.3 million from $0.5 million due    to lower interest rates.--  Our effective tax rate decreased to 37.8% in the thirteen weeks ended    June 28, 2008 from 38.1% in the same period last year.  The decrease is    primarily the result of the reversal of reserves upon completion of the    audit of our 2005 tax year by the Internal Revenue Service.    

Reported net income in the first six months of 2008 was $7.9 millioncompared to net income of $9.8 million in the same period last year.Reported diluted earnings per share in the six months ended June 30, 2008were $0.44 compared to $0.54 in the same period last year. Excluding thevacation adjustment discussed below, net income in the first six months of2008 was $7.9 million compared to net income of $9.3 million in the sameperiod last year and diluted EPS for the first six months of 2008 decreasedto $0.44 from $0.52 in the same period last year.

Mr. Richard Berman, Chairman and Chief Executive Officer, said, "Salesgrowth in the quarter was 5% due to challenging aftermarket conditions. Wealso saw further increases in costs from rising commodity prices and theweak dollar that have not been offset by selling price increases. Thesefactors combined to result in a decline in second quarter earnings. Ourbalance sheet is strong and we remain confident in the long-term success ofour business despite these short term setbacks. We remain committed tomaintaining our leadership position in aftermarket with innovative newproducts and solutions for our customers and end users."

Dorman Products, Inc. is a leading supplier of OE Dealer "Exclusive"automotive replacement parts, automotive hardware, brake products, andhousehold hardware to the Automotive Aftermarket and Mass Merchandisemarkets. Dorman products are marketed under the OE Solutions(TM),HELP!®, AutoGrade(TM), Second Stop(TM), Conduct-Tite®, Symmetry® andScan-Tech® brand names.

Forward-looking statements in this release are made pursuant to the safeharbor provisions of the Private Securities Litigation Reform Act of 1995.Such forward-looking statements are subject to certain risks anduncertainties that could cause actual results to differ materially fromthose projected. Readers are cautioned not to place undue reliance onthese forward-looking statements which speak only as of the date hereof.Factors that could cause actual results to differ materially include, butare not limited to, those factors discussed in the Company's 2007 AnnualReport on Form 10-K under "Item 1A - Risk Factors."

                  DORMAN PRODUCTS, INC. AND SUBSIDIARIES                   Consolidated Statements of Operations                  (in thousands, except per-share amounts)                                    13 Weeks                 13 Weeks                                -----------------        -----------------Second Quarter (unaudited)      06/28/08    Pct.         06/30/07    Pct.Net sales                       $ 90,311    100.0        $ 85,796    100.0Cost of goods sold                60,146     66.6          56,726     66.1Gross profit                      30,165     33.4          29,070     33.9Selling, general and administrative expenses          21,469     23.8          19,225     22.4Income from operations             8,696      9.6           9,845     11.5Interest expense, net                285      0.3             512      0.6Income before income taxes         8,411      9.3           9,333     10.9Provision for income taxes         3,178      3.5           3,565      4.2Net income                      $  5,233      5.8        $  5,768      6.7Earnings per share   Basic                        $   0.30        -        $   0.33        -   Diluted                      $   0.29        -        $   0.32        -Average shares outstanding   Basic                          17,692        -          17,688        -   Diluted                        18,041        -          18,129        -                                    26 Weeks                 26 Weeks                                -----------------        -----------------Year to Date (unaudited)        06/28/08    Pct.         06/30/07    Pct.Net sales                       $170,436    100.0        $160,089    100.0Cost of goods sold               115,568     67.8         105,243     65.7Gross profit                      54,868     32.2          54,846     34.3Selling, general and administrative expenses          41,453     24.3          38,010     23.8Income from operations            13,415      7.9          16,836     10.5Interest expense, net                553      0.4           1,039      0.6Income before income taxes        12,862      7.5          15,797      9.9Provision for income taxes         4,947      2.9           5,967      3.8Net income                      $  7,915      4.6        $  9,830      6.1Earnings per share   Basic                        $   0.45        -        $   0.56        -   Diluted                      $   0.44        -        $   0.54        -Average shares outstanding   Basic                          17,695        -          17,689        -   Diluted                        18,064        -          18,119        -             DORMAN PRODUCTS, INC. AND SUBSIDIARIES              Condensed Consolidated Balance Sheets                          (Unaudited)                         (in thousands)                                      06/28/08       12/29/07Assets:Cash and cash equivalents             $   7,492      $   6,918Accounts receivable                      82,079         76,897Inventories                              87,888         80,565Deferred income taxes                    10,306         10,111Prepaid expenses                          3,103          1,921Total current assets                    190,868        176,412Property & equipment                     25,295         25,680Goodwill                                 26,645         26,662Other assets                              1,629          1,901Total assets                          $ 244,437      $ 230,655Liability & Shareholders' Equity:Current portion of long-term debt     $   8,656      $   8,654Accounts payable                         20,902         18,752Accrued expenses and other                7,788         10,718Total current liabilities                37,346         38,124Long-term debt and other                 16,260         10,811Deferred income taxes                     8,392          7,862Shareholders' equity                    182,439        173,858Total Liabilities and Equity          $ 244,437      $ 230,655Selected Cash Flow Information:(in thousands)                  13 Weeks (unaudited)   26 Weeks (unaudited)                                --------------------   --------------------                                06/28/08    06/30/07   06/28/08    06/30/07Depreciation and amortization                   $  1,885    $  1,885   $  3,814    $  3,748Capital Expenditures            $  2,068    $  1,410   $  3,603    $  2,652                DORMAN PRODUCTS, INC. AND SUBSIDIARIES                 Reconciliation of Non-GAAP Measures               (in thousands, except per-share amounts)This press release contains non-GAAP measures which adjust net income anddiluted earnings per share to exclude the impact of the following item:    -- Effective December 31, 2006, we changed our vacation policy so that       vacation is earned ratably throughout the year rather than at the       end of the preceding year. This change resulted in a reduction in       our vacation accrual of $1.8 million in 2007, $0.4 million of which       was recorded in the three months ended June 30, 2007, and $0.8       million of which was recorded in the six months ended June 30, 2007.The presentation of these non-GAAP measures is intended to enhance theusefulness of the financial information by providing measures which theCompany's management uses internally to evaluate the Company's baselineperformance. A reconciliation of net income and diluted earnings pershare follows:                                                 13 Weeks (unaudited)                                           ---------- ---------  ---------                                            06/28/08  06/30/07   % ChangeNet income, as reported                    $    5,233 $   5,768       -9.3%  Less: Vacation adjustment, net of tax             -      (238)       N/A                                           ---------- ---------  ---------Net income, as adjusted                    $    5,233 $   5,530       -5.4%                                           ========== =========  =========Diluted EPS, as reported                   $     0.29 $    0.32       -9.4%  Less: Vacation adjustment, net of tax             -     (0.01)       N/A                                           ---------- ---------  ---------Diluted EPS, as adjusted                   $     0.29 $    0.31       -6.5%                                           ========== =========  =========                                                 26 Weeks (unaudited)                                           ---------- ---------  ---------                                            06/28/08  06/30/07   % ChangeNet income, as reported                    $    7,915 $   9,830      -19.5%  Less: Vacation adjustment, net of tax             -      (487)       N/A                                           ---------- ---------  ---------Net income, as adjusted                    $    7,915 $   9,343      -15.3%                                           ========== =========  =========Diluted EPS, as reported                   $     0.44 $    0.54      -18.5%  Less: Vacation adjustment, net of tax                   (0.02)       N/A                                           ---------- ---------  ---------Diluted EPS, as adjusted                   $     0.44 $    0.52      -15.4%                                           ========== =========  =========

For Further Information Contact:
Mathias J. Barton
CFO
(215) 997-1800 x 5132
E-mail: Email Contact

Corporate Headquarters:
Dorman Products, Inc.
3400 East Walnut Street
Colmar, Pennsylvania 18915
Fax: (215) 997-8577

Visit our Home Page: www.dormanproducts.com



Top of Page | Main News Index | EmpireRelations.com Home Page EmpireRelations.com Selected Clients News

Come see our services. Copr. © 2005 Empire Relations Group, Inc.

Industrials
Latest Headlines
Airline Gripes: Rip-Off or Reasonable? IBM Consumer Travel Survey Reveals Most Reported Travel Inconveniences Leading Up to the Holiday Rush
Ronn Motors' Scorpion(TM) and H2GO(TM) Steals the Show; Featured in Coverage of SEMA by the Las Vegas Review Journal
Delphi to Seek Continuation of Hearings on GM Agreements and DIP Accommodation Agreements
New Jersey Technology Council Honors mPhase at Awards Gala
Venga Closes $545,000 Private Placement
Avis Budget Group Announces Rate Increase
View Systems Announces Letter of Intent to Merge
Sanswire Encouraged by Obama Administration's Support of UAV Industry
Renewable Power Applications to Be Showcased by Cyclone Power Technologies at Engine Show
Dynamic Media Holdings, Inc. Announces Business and Technology Development Plan