Dorman Products Inc.: Dorman Products, Inc. Reports Sales and Earnings For the First Quarter Ended March 28, 2015

Tickers: DORM
NEWS RELEASE NEWS RELEASE

Contact: Matthew Kohnke, CFO, mkohnke@dormanproducts.com, (215) 997-1800. Visit our website at www.dormanproducts.com

Dorman Products, Inc. Reports Sales and Earnings

For the First Quarter Ended March 28, 2015

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First Quarter Results:

 Q1 sales increased 3% after 19% growth in Q1 2014
 Q1 EPS decreased 6% to $0.60 per diluted share
 Cash flow from operations increased to $23.8 million
 ERP transition shows steady progress

COLMAR, PENNSYLVANIA (April 28, 2015) - Dorman Products, Inc. (NASDAQ:DORM) today announced sales for the first quarter ended March 28, 2015 of $188.5 million, an increase of 3% from

$183.5 million in the first quarter of 2014. Diluted earnings per share for the first quarter ended March 28, 2015 decreased 6% to $0.60 per share from $0.64 per share in 2014.
Gross profit margin was 38.7% for the first quarter ended March 28, 2015 compared to 39.0% for the same period last year. Selling, general and administrative expenses increased 13%, or $4.5 million, during the quarter as a result of additional costs associated with our ERP conversion totaling $2.8 million, inflationary cost increases and increased investments in product development initiatives. ERP-related conversion expenses consisted of $1.7 million in increased distribution costs, $0.6 million in support costs, and $0.5 million in additional depreciation expense.
"Sales growth for the quarter was a modest 3% primarily as a result of exceptionally strong growth in the first quarter of 2014 and the continued negative impact of an inventory reduction program at one large customer. Despite these challenges, we achieved a two-year stacked sales growth rate of 22%," said Mr. Steven Berman, Chairman and Chief Executive Officer. "Sell-through rates of our products in the quarter, despite several weeks in February that were negatively impacted by extreme weather, remain encouraging. We would like to thank our customers and end-users for their continued support."
"We continue to work towards completion of the stabilization and transition phase of our ERP conversion. The incremental costs associated with the post go-live ERP transition declined significantly in the quarter, but were higher than expected. To ensure our customer demands were met during this period, we intentionally increased our distribution costs. The increased distribution costs are expected to decline over the next three to six months before stabilizing. We expect to offset the remaining incremental costs gradually through improved efficiencies beginning later this year." said Mr. Berman. "The distraction associated with the ERP implementation did slow down the introduction rate of our new products, but we expect to return to our previous pace in the next few months. We remain confident in our ability to return to low double digit sales and earnings growth later this year."
During the first quarter of 2015, we repurchased 13,700 shares of our common stock for $0.6 million at an average price of $45.41 per share. Since the inception of the program, we have repurchased 869,300 shares of our common stock for $41.0 million. We have approximately $59.0 million remaining under our current $100 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™, 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. 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 27, 2014. 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

First Quarter (unaudited)

3/28/15

Pct.

3/29/14

Pct.

Net sales

$188,474

100.0

$183,512

100.0

Cost of goods sold

115,581

61.3

111,870

61.0

Gross profit 72,893 38.7 71,642 39.0

Selling, general and

administrative expenses

39,241

20.8

34,695

18.9

Income from operations

33,652

17.9

36,947

20.1

Interest expense, net

52

0.1

39

-

Income before income taxes

33,600

17.8

36,908

20.1

Provision for income taxes

12,261

6.5

13,357

7.3

Net income

$ 21,339

11.3

$ 23,551

12.8

Diluted earnings per share

$ 0.60

$ 0.64

Weighted average diluted shares outstanding

35,643

36,549

DORMAN PRODUCTS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

Assets:

3/28/15

12/27/14

Cash and cash equivalents

$ 64,599

$ 47,656

Accounts receivable

201,142

206,035

Inventories

183,038

173,523

Deferred income taxes

25,402

25,103

Prepaids and other current assets

2,514

3,147

Total current assets

476,695

455,464

Property, plant & equipment, net

84,460

82,270

Goodwill and other intangible assets, net

29,964

29,989

Other assets

14,067

12,645

Total assets

$ 605,186

$ 580,368

Liabilities & shareholders' equity:

Accounts payable

$ 60,480

$ 59,541

Accrued expenses and other

35,594

31,292

Total current liabilities

96,074

90,833

Other long-term liabilities

4,462

4,822

Deferred income taxes

22,024

22,652

Shareholders' equity

482,626

462,061

Total liabilities and equity

$ 605,186

$ 580,368

Selected Cash Flow Information (unaudited):

(in thousands) 13 Weeks13 Weeks

3/28/15

3/29/14

Depreciation, amortization

and accretion

$ 3,618

$ 2,860

Capital expenditures

$ 5,749

$ 7,008

distributed by

This content was issued by Dorman Products Inc. on the 2015-04-28 and was initially posted on www.dormanproducts.com. It was distributed, unedited and unaltered, by noodls on 2015-04-30 14:59:53 UTC. The original issuer is solely responsible for the accuracy of the information contained therein.