COLMAR, PA -- Dorman Products has announced financial results for the fourth quarter ended Dec. 29, 2007.

Revenues for the year were up 11 percent to $327.7 million from $295.8 million last year. Sales increased primarily as a result of higher new product sales and further penetration of existing automotive product lines. The favorable effects of foreign currency exchange and the acquisition of the Consumer Products Division of Rockford Products Corp. accounted for 1 percent of the 2007 sales growth.

Excluding the vacation adjustment and asset write downs discussed below, 2007 net income was $19.1 million compared to net income of $17 million last year and 2007 diluted EPS increased 12 percent to $1.05 from 94 cents last year. Reported net income for the year was $19.2 million compared to net income of $13.8 million last year. Reported diluted earnings per share for the year increased to $1.06 from 76 cents last year.

Sales in the three months ended Dec. 29, 2007 increased 8 percent to $84.5 million from $77.9 million in the same period last year. Approximately 3 percent of the sales growth was the result of the acquisition of the Consumer Division and the favorable effects of foreign currency exchange.

Results for the thirteen weeks and year ended Dec. 29, 2007 include a $0.4 million non-cash write down of goodwill of Dorman’s Canadian subsidiary as a result of a strategic review and realignment of the business as well as a $0.6 million non-cash charge to the company’s provision for income taxes to provide a valuation allowance for deferred tax assets of the subsidiary. Results for 2007 also include $1.8 million in vacation expense reductions as a result of the change in the company’s vacation policy, $0.4 million of which was recorded in the fourth quarter. Results for the year ended Dec. 30, 2006 include a $3.2 million non-cash write down for goodwill impairment and the write off of deferred tax benefits associated with the company’s Swedish subsidiary.

Reported net income in the fourth quarter of 2007 was $3.7 million compared to net income of $4.9 million in the same period last year. Reported diluted earnings per share in the fourth quarter of 2007 were 20 cents compared to 27 cents in the same period last year. Excluding the vacation adjustment and asset write downs discussed above, net income in the fourth quarter of 2007 was $4.4 million compared to net income of $4.9 million in the same period last year and diluted EPS in the fourth quarter of 2007 decreased 11 percent to 24 cents from 27 cents in the same period last year.

For the thirteen weeks ended Dec. 29, 2007 and Dec. 30, 2006:

-- Gross profit margin of 33.3 percent was the same as the prior year as the impact of a less favorable product mix and higher expediting costs was offset by lower charges for excess and obsolete inventory during the quarter.

-- Selling, general and administrative expenses increased 16 percent over the prior year. The increase is primarily the result of higher variable costs related to Dorman’s 8 percent sales growth as well as the company’s decision to invest more resources in engineering and new product development in 2007.

-- Interest expense, net, decreased to $0.3 million from $0.5 million due to lower overall borrowing levels.

-- The company’s effective tax rate increased to 48.7 percent from 38.6 percent in the prior year. The increase is primarily the result of a goodwill impairment charge of its Canadian subsidiary which is not tax deductible and therefore had no income tax benefit associated with it. In addition, the company’s provision for income taxes includes a valuation allowance for deferred tax assets of the Canadian subsidiary.

Richard Berman, chairman and chief executive officer, said, "Our emphasis on new to the aftermarket parts resulted in strong sales growth in 2007 and a 12 percent year over year increase in net income before one time items. Fourth quarter organic sales growth slowed to 5 percent after double-digit increases in the last two quarters as a result of more difficult automotive aftermarket conditions. We believe that the need for continued investment in new products is more important now than ever before given market conditions. These investments demonstrate Dorman's long-term commitment to help our customers grow sales, market share and earnings."

The company also announced that its board of directors has authorized the repurchase of up to 500,000 shares of Dorman's outstanding common stock. Under this new program, share repurchases may be made from time to time depending on market conditions, share price and availability and other factors at Dorman's discretion. Dorman's repurchase of shares will take place in open market transactions or in privately negotiated transactions in accordance with applicable laws.

Steven Berman, president, commented, "The board's approval of this repurchase program is a reflection of the confidence that the board and management have in Dorman's operating fundamentals and growth prospects."

For more information about Dorman Products, visit: www.dormanproducts.com.