Dorman Products, Inc. (DORM) has reported a marginal fall of 0.43 percent in profit for the quarter ended Jun. 27, 2015. The company has earned $23.14 million, or $0.65 a share, compared with $23.24 million or $0.64 a share, a year ago. Revenue during the quarter went up marginally by 1.29 percent to $198.72 million from $196.19 million in the previous year period. Gross margin for the quarter expanded 134 basis points over the previous year period to 38.53 percent. Total expenses were 81.43 percent of quarterly revenues, up from 81.29 percent for the same period last year. That has resulted in a contraction of 14 basis points in operating margin to 18.57 percent.
Operating income for the quarter was $36.90 million, compared with $36.70 million in the previous year period.
"The second quarter of 2015 sales growth rate was impacted by the 21% growth experienced in the second quarter of 2014 and the ongoing inventory reduction program by one customer. Softer market conditions also led to a reduction in product sell-through when compared to the first quarter and the prior year, but remain at encouraging levels," said Mr. Steven Berman, chairman and chief executive officer. "Growth rates in the second half of the year are expected to improve as the difficult comps of the prior year are behind us."
Working capital increases
Dorman Products, Inc. has recorded an increase in the working capital over the last year. It stood at $398.75 million as at Jun. 27, 2015, up 8.68 percent or $31.85 million from $366.90 million on Jun. 28, 2014. Current ratio was at 5.24 as on Jun. 27, 2015, up from 5.23 on Jun. 28, 2014. Cash conversion cycle (CCC) has increased to 186 days for the quarter from 176 days for the last year period. Days sales outstanding went up to 91 days for the quarter compared with 87 days for the same period last year.
Days inventory outstanding has increased to 142 days for the quarter compared with 133 days for the previous year period. At the same time, days payable outstanding went up to 48 days for the quarter from 43 for the same period last year.
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