Dorman Products, Inc. Reports Strong Revenues and Profits

Dorman Products Inc. has reported 2010 revenues up 20% year-over-year, with net income also up sharply for the year ending December 25, 2010.
Also, revenues for the three months ended December 25, 2010 increased 27% over the prior year to $122.5 million from $96.7 million last year. Net income in the fourth quarter of 2010 was $12.2 million compared to $7.7 million in the same period in 2009 and diluted earnings per share rose 56% to $0.67 from $0.43.
All figures in U.S. dollars.
For the year ended December 25, 2010 and December 26, 2009:
–Revenues in 2010 increased 20.8% over the prior year to $455.7 million from $377.4 million in 2009. Revenue growth in both periods continues to be driven by strong overall demand for the company’s products and higher new product sales.
–Net income in 2010 was $46.1 million compared to $26.5 million in 2009, while diluted earnings per share rose 73% to $2.55 from $1.47.
–Gross profit margin was 37.9% in 2010 compared to 34.9% in 2009. The increase in margin is the result of a reduction in certain material costs along with lower defective return costs.
–Selling, general and administrative expenses increased 11.2% in 2010 to $98.0 million from $88.1 million in 2009, but were down as a percentage of sales from 23.3% in 2009 to 21.5% in 2010. The spending increase was the result of higher variable costs related to company sales increase, increased new product development spending and a $1.0 million charge to write off certain intangible assets. These increases were partially offset by lower operating expenses in most areas due to cost reduction initiatives.
–Its effective tax rate decreased to 38.2% in 2010 from 38.8% in the prior year as a result of lower state income taxes.
–Operating cash flow for 2010 was $30.7 million compared to $27.6 million in 2009.
Steven Berman, chairman and chief executive officer, said, “Dorman’s strong revenue and earnings growth in the fourth quarter and full year were driven by the introduction of a record number of new parts during 2010, and continued market penetration of formerly dealer-only products that were introduced in recent years. During 2010 we continued to invest in product development, engineering and sales resources. We expect these investments to further increase our industry-leading level of new product introductions in the years to come.”

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