COLMAR, Pa. -- Dorman Products has announced financial results for the fourth quarter ended Dec. 26, 2009.

Revenues for the three months increased 20 percent over the prior year to $96.7 million from $80.7 million last year. For the year, revenues were up 10 percent to $377.4 million from $342.3 million. The company said revenue growth in both periods was driven by strong overall demand for its products and higher new product sales.

Reported net income in the fourth quarter of 2009 was up 57 percent to $7.7 million from $4.9 million in the same period last year. Reported diluted earnings per share in the fourth quarter of 2009 rose 59 percent to 43 cents from 27 cents in the same period last year. Excluding the impact of the one-time item shown in the reconciliation of non-GAAP measures, net income in the fourth quarter of 2009 was up 83 percent to $7.7 million from $4.2 million in the same period last year and diluted EPS in the fourth quarter of 2009 increased 87 percent to 43 cents from 23 cents in the same period last year.

Reported net income for the year was up 49 percent to $26.5 million from $17.8 million in the same period last year. Reported diluted earnings per share for the year were up 48 percent to $1.47 from 99 cents last year. Excluding the impact of the one-time item shown in the reconciliation of non-GAAP measures, net income in 2009 was up 55 percent to $26.5 million from $17.1 million in the same period last year and diluted EPS in 2009 increased 55 percent to $1.47 from 95 cents in the same period last year.

Gross profit margin was 34.9 percent in 2009 compared to 32.2 percent in 2008. The increase in margin is the result of lower warranty and product return costs along with a reduction in freight expenses and certain material costs.

Selling, general and administrative expenses increased 7.7 percent in 2009 to $88.1 million from $81.8 million in 2008, but was down as a percentage of sales from 23.9 percent in 2008 to 23.3 percent in 2009. The spending increase was the result of higher variable costs related to the company's sales increase as well as increased new product development spending and higher incentive compensation expense due to higher earnings levels.

Interest expense, net, decreased to $0.3 million in 2009 from $0.9 million in 2008 due to lower borrowing levels and interest rates.

Dorman's effective tax rate increased to 38.8 percent from 35.2 percent in the prior year. The increase is the result of a $0.7 million tax benefit realized in 2008 upon the disposition of its Canadian Subsidiary and higher provisions for state income taxes in 2009.

Operating cash flow for 2009 increased $17.9 million to $27.6 million from $9.7 million in 2008. The increased cash flow enabled us to decrease total debt by $15.1 million during 2009. Total debt outstanding as of Dec. 26 was only $0.4 million.

Richard Berman, chairman and chief executive officer, said, "Revenue growth in 2009 was just over 10 percent and was driven primarily by continued strong acceptance and market penetration of our new product lines and line extensions. Our 2010 plan provides for further investment in our new product capabilities. We look forward to sharing the new products generated by these investments with our customers and end users as the year progresses."