Dorman Products Inc. (DORM, Financial) filed Quarterly Report for the period ended 2010-09-25.
Dorman Products Inc. has a market cap of $598.7 million; its shares were traded at around $34.83 with a P/E ratio of 16.6 and P/S ratio of 1.6. Dorman Products Inc. had an annual average earning growth of 12.5% over the past 10 years.DORM is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Net sales increased 19% to $333.2 million for the thirty-nine weeks ended September 25, 2010 from $280.7 million in the same period last year. Our revenue growth was driven by overall strong demand for our products and higher new product sales.
Historically, we have financed our growth through a combination of cash flow from operations, accounts receivable sales programs provided by certain customers and through the issuance of senior indebtedness through our bank credit facility and senior note agreements. At September 25, 2010, working capital was $207.5 million, total long-term debt (including the current portion and revolving credit borrowings) was $0.3 million and shareholders equity was $250.6 million. Cash and cash equivalents as of September 25, 2010 was $18.9 million.
On April 26, 2010, we extended the term of our $30.0 million revolving credit facility to June 2013. Borrowings under the facility are on an unsecured basis with interest at rates ranging from LIBOR plus 100 basis points to LIBOR plus 250 basis points based upon the achievement of certain benchmarks related to the ratio of funded debt to EBITDA. The interest rate at September 25, 2010 was LIBOR plus 100 basis points (1.3%). There were no borrowings under the facility as of September 25, 2010. We had approximately $27.6 million available under the facility at September 25, 2010. The loan agreement also contains covenants, the most restrictive of which pertain to net worth and the ratio of debt to EBITDA.
Cash generated from our operating activities was $14.9 million in the thirty-nine weeks ended September 25, 2010. Net income, depreciation and a $13.8 million increase in accounts payable were the primary sources of operating cash flow. Accounts payable increased primarily due to the timing of payments to our suppliers. The primary uses of cash were accounts receivable, which increased $25.6 million due to sales growth, and inventory, which increased $14.2 million due to the sales growth and adjustments made in safety stock levels.
Investing activities used $7.2 million of cash in the thirty-nine weeks ended September 25, 2010 primarily as a result of additions to property, plant and equipment. Capital spending in 2010 consisted of tooling associated with new products, upgrades to information systems and scheduled equipment replacements. In the third quarter of 2010, we began a project to replace our enterprise resource planning system. This project is expected to cost approximately $9 million in software and installation services over the next 3 years and no disruption to our operations is anticipated. In addition, we are expanding our distribution facility located in Warsaw, Kentucky. The total cost of this expansion will approximate $9 million, of which $3 million is expected to be spent in 2010 and another $5 million is expected to be spent in 2011.
Read the The complete Report
Dorman Products Inc. has a market cap of $598.7 million; its shares were traded at around $34.83 with a P/E ratio of 16.6 and P/S ratio of 1.6. Dorman Products Inc. had an annual average earning growth of 12.5% over the past 10 years.DORM is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net sales increased 22% to $119.2 million for the thirteen weeks ended September 25, 2010 from $98.0 million in the same period last year. Our revenue growth was driven by overall strong demand for our products and higher new product sales.Net sales increased 19% to $333.2 million for the thirty-nine weeks ended September 25, 2010 from $280.7 million in the same period last year. Our revenue growth was driven by overall strong demand for our products and higher new product sales.
Historically, we have financed our growth through a combination of cash flow from operations, accounts receivable sales programs provided by certain customers and through the issuance of senior indebtedness through our bank credit facility and senior note agreements. At September 25, 2010, working capital was $207.5 million, total long-term debt (including the current portion and revolving credit borrowings) was $0.3 million and shareholders equity was $250.6 million. Cash and cash equivalents as of September 25, 2010 was $18.9 million.
On April 26, 2010, we extended the term of our $30.0 million revolving credit facility to June 2013. Borrowings under the facility are on an unsecured basis with interest at rates ranging from LIBOR plus 100 basis points to LIBOR plus 250 basis points based upon the achievement of certain benchmarks related to the ratio of funded debt to EBITDA. The interest rate at September 25, 2010 was LIBOR plus 100 basis points (1.3%). There were no borrowings under the facility as of September 25, 2010. We had approximately $27.6 million available under the facility at September 25, 2010. The loan agreement also contains covenants, the most restrictive of which pertain to net worth and the ratio of debt to EBITDA.
Cash generated from our operating activities was $14.9 million in the thirty-nine weeks ended September 25, 2010. Net income, depreciation and a $13.8 million increase in accounts payable were the primary sources of operating cash flow. Accounts payable increased primarily due to the timing of payments to our suppliers. The primary uses of cash were accounts receivable, which increased $25.6 million due to sales growth, and inventory, which increased $14.2 million due to the sales growth and adjustments made in safety stock levels.
Investing activities used $7.2 million of cash in the thirty-nine weeks ended September 25, 2010 primarily as a result of additions to property, plant and equipment. Capital spending in 2010 consisted of tooling associated with new products, upgrades to information systems and scheduled equipment replacements. In the third quarter of 2010, we began a project to replace our enterprise resource planning system. This project is expected to cost approximately $9 million in software and installation services over the next 3 years and no disruption to our operations is anticipated. In addition, we are expanding our distribution facility located in Warsaw, Kentucky. The total cost of this expansion will approximate $9 million, of which $3 million is expected to be spent in 2010 and another $5 million is expected to be spent in 2011.
Read the The complete Report
