COLMAR, Pa. – Dorman Products has announced sales for the fourth quarter ended Dec. 29, 2012 of $135 million, down slightly from $135.6 million in the fourth quarter of 2011. Dorman noted that the decline was the result of an extra week in the fourth quarter of 2011 that generated approximately $4.8 million in sales, and a planned one-time $5.1 million reduction in orders to remove inventory from a large customer’s supply chain in anticipation of a January2013 change in how that customer distributes Dorman products through its distribution network. Excluding the impact of these items, sales growth would have been approximately 7 percent in the fourth quarter of 2012, the company said.
Net income from continuing operations was $15.2 million, or 42 cents per diluted share, for the fourth quarter ended Dec. 29, 2012, consistent with the prior year’s net income from continuing operations of $15.2 million, or 42 cents per diluted share. The fourth quarter 2011 results included 14 weeks while the fourth quarter 2012 results included 13 weeks.
"We are reporting strong full year 2012 results despite the flat fourth quarter, which we attribute to the one-timefactors noted above," said Steven Berman, chairman and CEO. "Dorman continued to invest in its new product capabilities in 2012 as we grew our product development resources by 12 percent during the year. Our goal is to drive low double-digit sales and earnings growth over the long-term through continuedincreases in the number of ‘Formerly Dealer Only’ parts that we make available to our customers and end-users."
For the fiscal year ended Dec. 29, 2012, sales increased 11 percent over the prior year to $570.4 million from $513.4 million last year. Excluding the impact of the extra week in 2011, sales increased 12 percent over 2011 levels. Net income from continuing operations in 2012 increased 18 percent to $66.4 million from $56.2 million in the prior year.Diluted earnings per share from continuing operations in 2012 rose 17 percent to $1.82 from $1.55 in the prior year. Operating cash flow in 2012 was $48.9 million compared to $38.1 million in 2011.
"This year marked our fourth consecutive year of double-digit sales and earnings growth, and our 12th consecutive year of sales growth," said Berman. "In 2012, we continued our commitment to our ‘New to the Aftermarket’ initiative by introducing a record number of new parts to the automotive aftermarket, including over 800 ‘Formerly Dealer Only’ parts that were not previously available in the aftermarket. I would like to thank all of our contributors for another outstanding year, and our customers and end-users for their continued support and acceptance of our new products."
During 2012, Dorman also liquidated its Swedish business, the results of which are presented as discontinued operations. The 2012 results include a one-time $3 million non-cash currency translation gain and $1.4 million in benefits from foreign tax credits as a result of the liquidation.
Prior year earnings per share and weighted average share information have been adjusted to reflect the 2-for-1 stock split paid on June 25, 2012.
