DORMAN PRODUCTS, INC. Q2 2024 EARNINGS PRESENTATION AUGUST 2, 2024 Forward-Looking Statements & Non-GAAP Financial Measures Forward-Looking Statements This presentationcontains "forward-looking statements" wthin the meaning of the Private Securities Litigation Reform Act of 1995. All statements of historical facts, may b forward-looking statements. Words such as "may." "will, " should," "ikely," "probably," "anticipates," "expects," "intends," "plans, ""projects," "believes," "views," "sest expressions are ...

Dorman Products (DORM) came out with quarterly earnings of $1.67 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 40.34%. A quarter ago, it was expected that this distributor of parts to automotive retailers would post earnings of $0.82 per share when it actually produced earnings of $1.31, delivering a surprise of 59.76%. Ov ...

[Financial Highlights and CEO Commentary](index=1&type=section&id=Financial%20Highlights%20and%20CEO%20Commentary) Dorman Products reported strong Q2 2024 results, with net sales up 4.7% and adjusted diluted EPS rising 65%, leading to raised full-year guidance Q2 2024 Key Performance Indicators | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Net Sales ($ in millions) | $503.0 | $480.6 | +4.7% | | Diluted EPS ($) | $1.53 | $1.04 | +47% | | Adjusted Diluted EPS* ($) | $1.67 | $1.01 | +65% | - Net sales growth was led by **high-single-digit growth** in the Light Duty segment, which was partially offset by declines in the Heavy Duty and Specialty Vehicle segments due to continued sector softness[2](index=2&type=chunk) - The company raised its full-year 2024 earnings guidance, now expecting adjusted diluted EPS in the range of **$6.00 to $6.20**[2](index=2&type=chunk) [Second Quarter 2024 Financial Performance](index=1&type=section&id=Second%20Quarter%202024%20Financial%20Performance) Net sales reached $503.0 million, with gross margin expanding to 39.6%, leading to a 47% increase in diluted EPS and robust cash generation [Overall Performance](index=1&type=section&id=Overall%20Performance) The company achieved $503.0 million in net sales with a gross margin of 39.6%, resulting in diluted EPS of $1.53 Q2 2024 vs. Q2 2023 Financial Results | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net Sales ($ in millions) | $503.0 | $480.6 | | Gross Profit ($ in millions) | $199.4 | $163.5 | | Gross Margin (%) | 39.6% | 34.0% | | Adjusted Gross Margin* (%) | 39.6% | 35.1% | | SG&A Expenses ($ in millions) | $126.9 | $108.3 | | Adjusted SG&A Expenses* ($ in millions) | $120.7 | $114.4 | | Diluted EPS ($) | $1.53 | $1.04 | | Adjusted Diluted EPS* ($) | $1.67 | $1.01 | [Segment Performance](index=2&type=section&id=Segment%20Performance) Light Duty segment sales grew 9% with significant margin expansion, while Heavy Duty and Specialty Vehicle segments experienced slight declines Q2 2024 Segment Results ($ in millions) | Segment | Net Sales Q2 2024 | Net Sales Q2 2023 | % Change | Profit Margin Q2 2024 (%) | Profit Margin Q2 2023 (%) | Change (bps) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Light Duty | $385.4 | $353.8 | +9% | 17.1% | 11.6% | +550 bps | | Heavy Duty | $61.2 | $69.1 | -11% | 4.4% | 4.9% | -50 bps | | Specialty Vehicle | $56.4 | $57.7 | -2% | 17.8% | 16.8% | +100 bps | [Cash Flow and Capital Allocation](index=2&type=section&id=Cash%20Flow%20and%20Capital%20Allocation) The company generated $63 million in operating cash flow, used for debt repayment and share repurchases during the quarter - During the second quarter, the company executed the following capital allocation activities: - Generated **$63 million** in cash from operating activities - Repaid **$15 million** of debt - Repurchased **$25 million** of its shares[1](index=1&type=chunk)[5](index=5&type=chunk) [Full-Year 2024 Guidance](index=2&type=section&id=Full-Year%202024%20Guidance) Dorman Products raised its full-year 2024 earnings guidance, now expecting adjusted diluted EPS between $6.00 and $6.20, maintaining net sales growth Updated Full-Year 2024 Guidance | Metric | Updated 2024 Guidance | Prior 2024 Guidance | | :--- | :--- | :--- | | Net Sales Growth vs. 2023 (%) | 3% – 5% | 3% – 5% | | Diluted EPS ($) | $5.32 – $5.52 | $4.71 – $5.01 | | Adjusted Diluted EPS* ($) | $6.00 – $6.20 | $5.40 – $5.70 | [Financial Statements](index=4&type=section&id=Financial%20Statements) Consolidated financial statements detail performance for Q2 and YTD June 29, 2024, showing significant net income growth and a stable balance sheet [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Statements of operations show strong growth in net sales, gross profit, and net income for both Q2 and six months ended June 29, 2024 Q2 Statement of Operations Highlights (in thousands) | Account | Three Months Ended 6/29/24 | Three Months Ended 7/1/23 | | :--- | :--- | :--- | | Net sales | $502,951 | $480,568 | | Gross profit | $199,401 | $163,506 | | Income from operations | $72,452 | $55,198 | | Net income | $47,410 | $32,770 | | Diluted EPS | $1.53 | $1.04 | Six Months Statement of Operations Highlights (in thousands) | Account | Six Months Ended 6/29/24 | Six Months Ended 7/1/23 | | :--- | :--- | :--- | | Net sales | $971,652 | $947,306 | | Gross profit | $380,847 | $307,983 | | Income from operations | $126,890 | $73,312 | | Net income | $80,238 | $38,453 | | Diluted EPS | $2.58 | $1.22 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows stable total assets and liabilities, with a slight increase in total shareholders' equity as of June 29, 2024 Balance Sheet Highlights (in thousands) | Account | 6/29/24 | 12/31/23 | | :--- | :--- | :--- | | Total current assets | $1,233,035 | $1,233,709 | | Total assets | $2,285,715 | $2,292,407 | | Total current liabilities | $514,119 | $547,151 | | Long-term debt | $461,188 | $467,239 | | Total shareholders' equity | $1,201,320 | $1,168,203 | [Consolidated Statements of Cash Flows (Partial Data)](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20%28Partial%20Data%29) Cash provided by operating activities was $63.3 million for Q2 and $115.3 million for the six months ended June 29, 2024 Key Cash Flow Data (in thousands) | Metric | Three Months Ended 6/29/24 | Six Months Ended 6/29/24 | | :--- | :--- | :--- | | Cash provided by operating activities | $63,349 | $115,329 | | Capital expenditures | $11,935 | $22,690 | [Non-GAAP Financial Measures Reconciliation](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) The company provides detailed reconciliations of GAAP to non-GAAP measures, adjusting for specific items to offer a clearer view of core operational performance [Reconciliation of Net Income and EPS](index=6&type=section&id=Reconciliation%20of%20Net%20Income%20and%20EPS) Reconciliation shows adjustments from GAAP net income of $47.4 million and diluted EPS of $1.53 to non-GAAP figures Q2 2024 Reconciliation of GAAP to Non-GAAP Net Income and EPS | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Net Income ($ in millions) | $47.4 | +$4.6 | $52.0 | | Diluted EPS ($) | $1.53 | +$0.14 | $1.67 | [Reconciliation of Gross Profit and SG&A Expenses](index=7&type=section&id=Reconciliation%20of%20Gross%20Profit%20and%20SG%26A%20Expenses) Adjustments to GAAP Gross Profit and SG&A expenses are detailed, showing their impact on adjusted margins and expense ratios - For Q2 2024, GAAP Gross Profit of **$199.401M** was adjusted by **$2k** for acquisition-related costs to arrive at an Adjusted Gross Profit of **$199.403M** The adjusted gross margin was **39.6%**[21](index=21&type=chunk) - For Q2 2024, GAAP SG&A of **$126.9M** was adjusted down by **$6.2M** for items including intangible asset amortization and workforce reduction costs, resulting in Adjusted SG&A of **$120.7M** (**24.0%** of sales)[23](index=23&type=chunk) [Reconciliation of 2024 EPS Guidance](index=10&type=section&id=Reconciliation%20of%202024%20EPS%20Guidance) The reconciliation details adjustments from GAAP diluted EPS guidance to the higher non-GAAP adjusted diluted EPS guidance for full-year 2024 Reconciliation of Full-Year 2024 EPS Guidance | Metric | Low End | High End | | :--- | :--- | :--- | | Diluted EPS (GAAP) ($) | $5.32 | $5.52 | | Pretax Adjustments ($) | +$0.90 | +$0.90 | | Tax Adjustment ($) | ($0.22) | ($0.22) | | Adjusted Diluted EPS (Non-GAAP) ($) | $6.00 | $6.20 | [Other Information](index=2&type=section&id=Other%20Information) This section provides conference call details, a company overview, and standard disclaimers regarding forward-looking statements and non-GAAP measures - The company will hold a conference call and webcast for investors on Friday, **August 2, 2024**, at **8:00 a.m. Eastern time**[9](index=9&type=chunk) - The press release contains forward-looking statements based on current expectations that involve known and unknown risks and uncertainties, and the company disclaims any obligation to update them[12](index=12&type=chunk)

COLMAR, Pa., July 23, 2024 (GLOBE NEWSWIRE) -- Dorman Products, Inc. ("Dorman") (NASDAQ:DORM) today announced the addition of Alexander S. Whitelam as Vice President, Investor Relations & Risk Management. Alex joins the Company after serving most recently as Head of Investor Relations at SEI Investments Company. Prior to SEI, he held investor relations and other finance-related positions of increasing responsibility at Chesapeake Utilities, AMETEK Inc., Essential Utilities, BNY Mellon, and Wells Fargo. Alex ...

Company Overview - Dorman Products, Inc. is a pioneering global organization headquartered in the United States, offering a diverse and evolving catalog of products for cars, trucks, and specialty vehicles, covering various components from chassis to body and from hardware to complex electronics [1]. Financial Reporting - Dorman Products will report its financial results for the second quarter ended June 29, 2024, after the closing of the Nasdaq Stock Market on August 1, 2024 [4]. - A conference call and webcast to discuss the second quarter 2024 financial results is scheduled for August 2, 2024, at 8 a.m. ET, accessible via a specific dial-in number and conference ID [6]. Company Mission - For over 100 years, Dorman has been providing solutions that enable professionals, enthusiasts, and vehicle owners to fix motor vehicles, releasing tens of thousands of aftermarket replacement products designed to save time and money while increasing convenience and reliability [5].

Noteworthy among the hundreds of releases are two Dorman® OE FIX™ repair solutions, adding to this flagship line of parts designed to save time, money and labor. More than 2,000 OE FIX products offer a level of performance and convenience that customers may not be able to obtain from a dealership. These innovative products include: Additional first-to-aftermarket highlights include: These are just a few of Dorman's recent new product releases, which include replacement components and assemblies for passenge ...

Adding to an expansive catalog of more than 122,000 SKUs, the July 2024 new product releases represent millions of new sales opportunities for automotive and heavy-duty parts distributors, retailers and repair shops, reinforcing Dorman's position as a premier go-to source for technicians and dedicated DIYers. These innovative products include: Additional first-to-aftermarket highlights include: These are just a few of Dorman's recent new product releases, which include replacement components and assemblies ...

The increasing age of vehicles is a boon for the Zacks Automotive Replacement Parts industry. However, the overall outlook of the industry remains subdued due to high raw material costs, unfavorable currency exchanges and logistical challenges that impact profit margins. Additionally, the shift toward electric and self-driving vehicles necessitates realignment of business models. To thrive, companies must develop comprehensive strategies to capitalize on evolving market trends while managing high operationa ...

Marketing: Steve Gisondi, Vice President of Marketing sgisondi@dormanproducts.com Investor Relations: David Hession, Senior Vice President, Chief Financial Officer dhession@dormanproducts.com About Dorman Products Dorman gives repair professionals, enthusiasts, and owners greater freedom to fix motor vehicles. For over one hundred years, we have been driving new repair solutions, releasing tens of thousands of aftermarket replacement products engineered to save time and money, and increase convenience and r ...

Core Insights - Dorman Products, Inc. has opened a new drive shaft manufacturing facility in Virginia Beach, VA, significantly expanding its production capacity in response to increased demand in the automotive drive shaft market [1][2] - The new facility spans 100,000 square feet, which is five times larger than the previous site, and is equipped with advanced technology for efficient production and shipping of drive shafts [2][3] - This expansion increases Dorman's USA-based manufacturing footprint to over one million square feet nationwide, highlighting the company's commitment to domestic manufacturing and job creation [5] Company Overview - Dorman Products specializes in providing aftermarket replacement products for motor vehicles, with a history of over 100 years in the industry [7][8] - The company offers a diverse catalog of products, including components for cars, trucks, and specialty vehicles, covering various aspects from chassis to electronics [8] Manufacturing Capabilities - The new plant features advanced computer-controlled machine tools, robotic welding, and testing equipment, enhancing Dorman's ability to produce high-quality drive shafts efficiently [3] - A dedicated area for custom packaging ensures that the balance achieved during testing is maintained during shipping, which is crucial for safety-critical components like drive shafts [4]