COLMAR, Pa. -- Dorman Products has announced financial results for the first quarter ended March 27.

Revenues for the three months ended March 27 increased 14.6 percent over the prior year to $99 million from $86.4 million last year. Revenue growth in both periods was driven by strong overall demand for the company’s products and higher new product sales, Dorman said.

Net income in the first quarter of 2010 was up 111 percent to $9.6 million from $4.6 million in the same period last year. Diluted earnings per share in the first quarter of 2010 rose 112 percent to 53 cents from 25 cents in the same period last year. 

Gross profit margin was 38.2 percent in 2010 compared to 32.9 percent in 2009. The company said the increase in margin is the result of a reduction in freight expenses and certain material costs, along with lower product return costs.

Selling, general and administrative expenses increased 5.7 percent in 2010 to $22.1 million from $20.9 million in 2009, but were down as a percentage of sales from 24.3 percent in 2009 to 22.3 percent in 2010. The spending increase was the result of higher variable costs related to the company’s sales increase, increased new product development spending and higher incentive compensation expense due to higher earnings levels. These increases were partially offset by lower operating expenses in most areas due to cost reduction initiatives. 

Operating cash flow for 2010 was $7.1 million compared to $8.5 million in 2009. Cash flow declined from prior year levels due primarily to an increase in accounts receivable levels as a result of sales growth and a reduction in accounts receivable sold under customer-sponsored sale programs. Total debt outstanding as of March 27 was only $0.3 million. 

Richard Berman, chairman and CEO, said, "Strong demand for our core product lines along with continued growth from our ‘New to the Aftermarket’ product lines were the primary drivers behind our double-digit sales growth. Our second of three planned Dorman Guides will be released shortly with close to 50 formerly dealer-only parts available for the first time in the aftermarket. We will continue to invest in our new product capabilities and look forward to sharing the new products generated by these investments with our customers and end-users as the year progresses."