Dorman Products Inc.: Dorman Products, Inc. Reports Sales and Earnings For the Fourth Quarter and Year Ended December 28, 2013

Tickers: DORM
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 Fourth Quarter and Year Ended December 28, 2013

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Fourth Quarter Highlights:

 Sales increased 26% to $169.8 million.
 Income from continuing operations increased 35% to $20.6 million, or $0.56 per diluted share.
 Operating margin increased to 18.6% from 17.0% during the same period last year.

COLMAR, PENNSYLVANIA (February 19, 2014) - Dorman Products, Inc. (NASDAQ:DORM) today announced sales for the fourth quarter ended December 28, 2013 of $169.8 million, an increase of 26% from

$135.0 million in the fourth quarter of 2012. The Company also announced income from continuing operations of
$20.6 million, or $0.56 per diluted share, for the fourth quarter ended December 28, 2013, up 35% from the prior
year's income from continuing operations of $15.2 million, or $0.42 per diluted share.
"We are pleased to once again report strong double digit sales growth this quarter. Our growth continues to be driven by strong demand for our new products. Revenue from products introduced in the last 24 months accounted for nearly 23% of sales in the fourth quarter," said Mr. Steven Berman, Chairman and Chief Executive Officer. "I would like to thank all of our contributors for their outstanding execution from idea to invoice, and our customers and end-users for their continued support of all our products."
Gross profit margin was 38.9% for the fourth quarter ended December 28, 2013 compared to 38.4% for the same period last year. The increase in margin percent is primarily the result of a favorable change in sales mix toward higher margin new products. Selling, general and administrative expenses increased 19% in the fourth quarter of 2013 to $34.5 million from $28.9 million in the fourth quarter of 2012. Cost increases were primarily the result of higher variable costs associated with the 26% sales growth, additional product development spending and increased incentive compensation.
For the fiscal year ended December 28, 2013, sales increased 16% over the prior year to $664.5 million from $570.4 million last year. Net income from continuing operations in 2013 increased 23% to $81.9 million from $66.4 million in the prior year. Diluted earnings per share from continuing operations in 2013 rose 23% to
$2.24 from $1.82 in the prior year. Operating cash flow in 2013 was $61.6 million compared to $48.9 million in
2012.
"This year marked our 5th consecutive year of double digit sales and earnings growth, and our 13th consecutive year of sales growth. Our continued commitment to our 'New to the Aftermarket' initiative resulted in the introduction of 20% more new parts in 2013, including 873 'Formerly Dealer Only' parts which were not previously available in the aftermarket," said Mr. Berman. "We continued to invest in our new product capabilities
in 2013 as our research and development spending increased 28% during the year. These investments will help support our long-term goal of driving low double-digit sales and earnings growth."
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™, Dorman® Hybrid Drive Batteries 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 29, 2012. 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

Fourth Quarter (unaudited)

12/28/13

Pct.

12/29/12

Pct.

Net sales

$169,809

100.0

$135,014

100.0

Cost of goods sold

103,724

61.1

83,173

61.6

Gross profit

66,085

38.9

51,841

38.4

Selling, general and

administrative expenses

34,478

20.3

28,875

21.4

Income from operations

31,607

18.6

22,966

17.0

Interest expense, net

41

-

33

-

Income from continuing operations

before income taxes

31,566

18.6

22,933

17.0

Provision for income taxes

10,947

6.5

7,684

5.7

Income from continuing operations

20,619

12.1

15,249

11.3

Income from

Weighted average diluted
shares outstanding 36,552 - 36,609 -

DORMAN PRODUCTS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations
(in thousands, except per-share amounts)

52 Weeks

52 Weeks

Year Ended (unaudited)

12/28/13 Pct.

12/29/12

Pct.

Net sales

$664,466

100.0

$570,420

100.0

Cost of goods sold

403,498

60.7

355,211

62.3

Gross profit

260,968

39.3

215,209

37.7

Selling, general and

administrative expenses

133,029

20.0

110,978

19.4

Income from operations

127,939

19.3

104,231

18.3

Interest expense, net

189

0.1

123

-

Income from continuing operations

before income taxes

127,750

19.2

104,108

18.3

Provision for income taxes

45,830

6.9

37,703

6.7

Income from continuing operations

81,920

12.3

66,405

11.6

Income from

discontinued operations

-

-

4,557

-

Net income

$ 81,920

-

$ 70,962

-

Diluted earnings per share:

Continuing operations $ 2.24 - $ 1.82 -

Discontinued operations

- - 0.12

-

Net income

$ 2.24 - $ 1.94

-

Weighted average diluted
shares outstanding 36,624 - 36,494 -

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

(in thousands)

Assets:

12/28/13

12/29/12

Cash and cash equivalents

$ 60,593

$ 27,708

Accounts receivable

180,777

140,180

Inventories

164,421

145,270

Deferred income taxes

20,798

20,559

Prepaid expenses

5,851

2,332

Total current assets

432,440

336,049

Property & equipment

64,786

48,758

Goodwill and other intangible assets

30,089

26,553

Other assets

1,854

1,323

Total assets

$ 529,169

$ 412,683

Liabilities & Shareholders' Equity:

Accounts payable

$ 61,255

$ 42,387

Accrued expenses and other

30,483

21,298

Total current liabilities

91,738

63,685

Other long-term liabilities

5,310

3,447

Deferred income taxes

18,480

12,679

Shareholders' equity

413,641

332,872

Total Liabilities and Equity

$ 529,169

$ 412,683

Selected Cash Flow Information (unaudited):

(in thousands) 13 Weeks13 Weeks52 Weeks52 Weeks

12/28/13

12/29/12

12/28/13

12/29/12

Depreciation and

amortization

$ 2,742

$2,252

$10,159

$ 8,225

Capital expenditures

$11,717

$3,641

$24,666

$18,078

distributed by

This noodl was issued by Dorman Products Inc. and was initially posted at www.dormanproducts.com. It was distributed, unedited and unaltered, by noodls on 2014-02-19 16:11:42 CET. The issuer is solely responsible for the accuracy of the information contained therein.