Dorman Products, Inc. has a market cap of $1.1 billion; its shares were traded at around $33.11 with a P/E ratio of 17.9 and P/S ratio of 2.1. Dorman Products, Inc. had an annual average earning growth of 13.4% over the past 10 years. GuruFocus rated Dorman Products, Inc. the business predictability rank of 4-star.
This is the annual revenues and earnings per share of DORM over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of DORM.
Highlight of Business Operations:Selling, general and administrative expenses were approximately $28.6 million for the thirteen weeks ended September 29, 2012 compared to $25.2 million for the thirteen weeks ended September 24, 2011, but declined as a percentage of net sales to 18.3% from 19.3%. The spending increase was the result of higher variable costs related to our sales increase, additional product development spending, higher incentive compensation expenses and inflationary increases.
Selling, general and administrative expenses were approximately $82.1 million for the thirty-nine weeks ended September 29, 2012 compared to $75.1 million for the thirty-nine weeks ended September 24, 2011, but declined as a percentage of sales to 18.8% from 19.9%. The spending increase was the result of higher variable costs related to our sales increase, additional product development spending, increased incentive compensation expenses and inflationary increases.
Over the past several years we extended payment terms to certain customers as a result of customer requests and market demands. We participate in accounts receivable sales programs with several customers which allow us to sell our accounts receivable to financial institutions to offset the negative cash flow impact of these payment terms extensions. Without these programs, these extended terms would have resulted in increased accounts receivable and significant uses of cash flow. Pursuant to these agreements, we sold accounts receivable in the aggregate amount of $235.2 million and $149.7 million during the thirty-nine weeks ended September 29, 2012 and September 24, 2011, respectively. If receivables had not been sold, $165.8 million and $137.0 million of additional receivables would have been outstanding at September 29, 2012 and December 31, 2011, respectively, based on standard payment terms.
Allowance for Doubtful Accounts. The preparation of our financial statements requires us to make estimates of the collectability of our accounts receivable. We specifically analyze accounts receivable and historical bad debts, customer creditworthiness, current economic trends and changes in customer payment patterns when evaluating the adequacy of the allowance for doubtful accounts. A significant percentage of our accounts receivable have been, and will continue to be, concentrated among a relatively small number of automotive retailers and warehouse distributors in the United States. Our five largest customers accounted for 83% and 78% of net accounts receivable as of December 31, 2011 and December 25, 2010, respectively. A bankruptcy or financial loss associated with a major customer could have a material adverse effect on our sales and operating results.
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