/EINPresswire.com/ -- COLMAR, PA--(Marketwired - Oct 24, 2016) - Dorman Products, Inc. (NASDAQ: DORM) 

• Q3 sales increased 1% to $212.8 million
  
  
• Q3 EPS increased 5% to $0.77 per diluted share
  
  
• Year to date 2016 sales and EPS increase of 5% and 13%, respectively. 
  
  

Dorman Products, Inc. (NASDAQ: DORM) today announced sales for the third quarter ended September 24, 2016 of $212.8 million, an increase of 1% from $210.9 million in the third quarter of 2015. Diluted earnings per share for the third quarter ended September 24, 2016 increased 5% to $0.77 per share from $0.73 per share in the third quarter of 2015.

"Customer sell through rates stabilized in the quarter and were basically at the same rates that we saw in the second quarter. Our third quarter 2015 results included a significant benefit from stocking orders from a major customer, and as result, our 2016 third quarter sales growth was just 1%. We expect the unfavorable impact of the strong stocking order comparisons in the third quarter to reverse in the fourth quarter. We continue to expect full year 2016 sales growth to be in the 6% to 7% range and we also expect reported 2016 EPS growth to be in the mid-teens range," said Matt Barton, President and Chief Executive Officer. 

Gross profit margin for the third quarter of 2016 was 39.1% compared to 38.3% in the third quarter of 2015 primarily due to favorable mix and a reduced excess and obsolete provision as inventory reduction initiatives have continued to gain traction. SG&A expenses increased 5% in the third quarter of 2016 to $41.5 million from $39.6 million in the third quarter of 2015.

 For the nine months ended September 24, 2016, sales increased 5% over the prior year to $630.5 million from $598.1 million last year. Diluted earnings per share in 2016 rose 13% to $2.23 from $1.98 in the prior year. Operating cash flow for the nine months ended September 24, 2016 was $55.5 million compared to $57.5 million in the first nine months of 2015. 

 "We continue to be very optimistic about our future growth potential. During the quarter, we introduced 977 new product SKUs and we were also awarded significant new Chassis business from a major customer which will begin shipping late in the fourth quarter of 2016. As we look forward to 2017, we expect to deliver organic revenue and net income growth in the mid to high single digit range," continued Mr. Barton. "We are continuing to invest in our new product development capabilities that will provide additional growth opportunities for both Dorman and our customers."

The Company did not repurchase any of its common stock in the quarter and has $57.8 million remaining under its current $150 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™, 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, including statements related to the Company's future growth rates. 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 26, 2015. 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
Third Quarter (unaudited)	9/24/16			Pct.			9/26/15			Pct.
Net sales	$	212,786			100.0		$	210,928		100.0
Cost of goods sold		129,641			60.9			130,134		61.7
Gross profit		83,145			39.1			80,794		38.3
Selling, general and administrative expenses		41,512			19.5			39,554		18.7
Income from operations		41,633			19.6			41,240		19.6
Interest expense, net		61			0.1			48		0.1
Income before income taxes		41,572			19.5			41,192		19.5
Provision for income taxes		14,877			7.0			15,132		7.1
Net income	$	26,695			12.5		$	26,060		12.4
Diluted earnings per share	$	0.77					$	0.73
Weighted average diluted shares outstanding		34,672						35,575

DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per-share amounts)
	39 Weeks						39 Weeks
Third Quarter (unaudited)	9/24/16			Pct.			9/26/15			Pct.
Net sales	$	630,507			100.0		$	598,123		100.0
Cost of goods sold		384,604			61.0			367,866		61.5
Gross profit		245,903			39.0			230,257		38.5
Selling, general and administrative expenses		124,350			19.7			118,470		19.8
Income from operations		121,553			19.3			111,787		18.7
Interest expense, net		180			0.0			152		0.0
Income before income taxes		121,373			19.3			111,635		18.7
Provision for income taxes		44,025			7.0			41,093		6.9
Net income	$	77,348			12.3		$	70,542		11.8
Diluted earnings per share	$	2.23					$	1.98
Weighted average diluted shares outstanding		34,626						35,611

DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
	9/24/16			12/26/15
Assets:
Cash and cash equivalents	$	95,142		$	78,659
Accounts receivable		245,006			203,923
Inventories		168,245			193,725
Prepaids and other current assets		4,259			2,326
Total current assets		512,652			478,633
Property, plant & equipment, net		88,384			87,046
Goodwill and other intangible assets, net		29,814			29,889
Deferred income taxes, net		7,581			7,557
Other assets		29,574			18,740
Total assets	$	668,005		$	621,865
Liabilities & shareholders' equity:
Accounts payable	$	52,481		$	63,967
Accrued expenses and other		30,824			34,603
Total current liabilities		83,305			98,570
Other long-term liabilities		5,536			5,259
Shareholders' equity		579,164			518,036
Total liabilities and equity	$	668,005		$	621,865

Selected Cash Flow Information:
(in thousands)		13 Weeks (unaudited)						39 Weeks (unaudited)
		9/24/16			9/26/15			9/24/16			9/26/15
Depreciation, amortization and accretion		$	4,711		$	4,143		$	13,890		$	11,739
Capital expenditures		$	4,772		$	5,518		$	14,890		$	16,534

Visit our website at www.dormanproducts.com