News Column

Dorman Products Posts Financial Results

February 24, 2014

Dorman Products, Inc. announced sales for the fourth quarter ended December 28, 2013 of $169.8 million, an increase of 26 percent 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 percent 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 percent of sales in the fourth quarter," said 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."

In a release on February 19, the Company reported that gross profit margin was 38.9 percent for the fourth quarter ended December 28, 2013 compared to 38.4 percent for the same period last year. The increase in margin percent was primarily the result of a favorable change in sales mix toward higher margin new products. Selling, general and administrative expenses increased 19 percent 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 percent sales growth, additional product development spending and increased incentive compensation.

For the fiscal year ended December 28, 2013, sales increased 16 percent over the prior year to $664.5 million from $570.4 million last year. Net income from continuing operations in 2013 increased 23 percent to $81.9 million from $66.4 million in the prior year. Diluted earnings per share from continuing operations in 2013 rose 23 percent 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 percent more new parts in 2013, including 873 'Formerly Dealer Only' parts which were not previously available in the aftermarket," said Berman. "We continued to invest in our new product capabilities in 2013 as our research and development spending increased 28 percent during the year. These investments will help support our long-term goal of driving low double-digit sales and earnings growth."

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