COLMAR, Pa. – Dorman Products Inc. announced financial results for the fourth quarter ended December 31, 2011.

Revenues for the fourth quarter ended December 31, 2011 increased 14 percent over the prior year to $139.1 million from $122.5 million. The fourth quarter 2011 results include 14 weeks while prior year results include only 13 weeks. Revenue growth before the impact of the additional week’s sales in 2011 was 9 percent.

Excluding the favorable impact of $0.9 million in reductions to certain reserves associated with the exit of its Swedish business as shown in the reconciliation of non-GAAP measures below, adjusted net income increased 29 percent to $15.8 million in the fourth quarter from $12.2 million last year. Adjusted diluted earnings per share increased 30 percent to $0.87 in 2011 from $0.67 in 2010. After the above adjustment, reported net income in the fourth quarter of 2011 increased 36 percent to $16.6 million from $12.2 million in the same period last year. Reported diluted earnings per share increased 36 percent to $0.91 in 2011 from $0.67 in 2010.

For the year ended December 31, 2011 and December 25, 2010: Revenues increased 16 percent over the prior year to $529.3 million from $455.7 million. Revenue growth before the impact of the 53rd week’s sales in 2011 was 15 percent. Revenue growth was driven primarily by strong overall demand for its products and higher new product sales.

Adjusted net income in 2011 increased 21 percent to $55.9 million from $46.1 million last year, while adjusted diluted earnings per share in 2011 increased 20 percent to $3.07 in 2011 from $2.55 in 2010 after excluding the impact of the item shown in the reconciliation of non-GAAP measures below.

Reported net income in 2011 was up 16 percent to $53.3 million from $46.1 million last year. Reported diluted earnings per share in 2011 rose 15 percent to $2.93 from $2.55 in 2010. Reported gross profit margin was 36.1 percent.

Adjusted gross profit margin excluding 0.4 percent, or $2.3 million, in charges for inventory write-downs and other costs associated with the exit of its Swedish business was 36.5 percent in 2011 compared to 37.9 percent in 2010. The remaining decline in gross margin is primarily due to higher product return costs, an unfavorable change in sales mix and additional provisions for excess and obsolete inventory.

Selling, general and administrative expenses increased 9 percent in 2011 to $106.4 million from $98.0 million in 2010. The spending increase was primarily the result of higher variable costs related to its sales increase and investments in new product development initiatives, offset partially by lower incentive compensation levels.

Dorman’s effective tax rate decreased to 37.0 percent from 38.2 percent in the prior year. The decrease is primarily due to the effect of lower provisions for state income taxes and the 2011 receipt of tax-exempt life insurance proceeds used to fund an officer’s death benefit. Operating cash flow for 2011 was $38.1 million compared to $30.7 million in 2010.

Steven Berman, chairman and chief executive officer, said, “2011 represents the 11th consecutive year of revenue growth for our business. We delivered a record number of new products in 2011, including over 900 “Formerly Dealer Only” parts. We remain committed to continuing our strong track record of new product growth. As a result we increased our product development, engineering and brand management staffing levels by 16 percent in fiscal 2011to drive further new product growth. The launch of Dorman HD Solutions (TM) – an exclusive offering of former dealer only for the medium and heavy duty vehicle market, was well received during last month’s Heavy Duty Aftermarket Week. We will begin shipping the products this month, and look forward to driving aftermarket growth in this new channel for many years to come.”