Financial Data and Key Metrics Changes - Consolidated net sales for Q1 2025 grew 8% year over year to $508 million, driven by strong customer demand and new product development [7][19] - Adjusted operating margin for Q1 2025 was 17%, expanding 310 basis points compared to the same period last year [8][20] - Adjusted diluted EPS increased by 54% year over year to $2.20, supported by increased operating income and lower interest expenses [8][21] - Free cash flow for the quarter was $40 million, allowing the company to repay $20 million of debt and repurchase $12 million of common stock [8][27] Business Line Data and Key Metrics Changes - Light Duty segment saw net sales increase by 14% year over year, with operating margin rising to 19.9%, a 380 basis point increase [21][22] - Heavy Duty segment experienced a decline in net sales by 11% year over year, with operating margin turning slightly negative due to market pressures [23] - Specialty Vehicles segment's net sales declined by 9% year over year, with operating margin decreasing to 10.2% due to fixed cost deleverage [24][25] Market Data and Key Metrics Changes - Vehicle miles traveled increased year over year, contributing positively to the aftermarket [15] - Consumer spending softened during the quarter, which may pose a headwind moving forward [18] Company Strategy and Development Direction - The company has diversified its supply chain significantly since the tariffs on Chinese imports were enacted, with an estimated 30% to 40% of products sourced from China in 2025 [9][42] - The focus remains on optimizing supply chain strategy and maintaining strong relationships with suppliers to drive redundancy and flexibility [10][11] - The company aims to continue investing in new product development and expanding its dealer network to capture market share [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current economic uncertainty and highlighted the strength of the company's financial profile as a competitive advantage [14][32] - The company reaffirmed its 2025 net sales growth guidance of 3% to 5% and adjusted diluted EPS guidance of $7.55 to $7.85, excluding potential tariff impacts [29][30] Other Important Information - The company has a strong balance sheet with net debt reduced to $42 million and total liquidity increased to $660 million [28][29] - The management emphasized the importance of nondiscretionary parts in their portfolio, which historically perform well in uncertain economic times [12][13] Q&A Session Summary Question: Have you seen any of your bigger customers buying ahead to get ahead of tariffs? - Management indicated that there have been no significant indications of customers ordering ahead of tariffs at this point [38][39] Question: Can you remind us of some of the mitigation efforts in place regarding tariffs? - Management highlighted a diverse supply chain and a proven playbook for dealing with tariffs, including negotiating cost concessions and driving productivity initiatives [44][45] Question: What was the contribution of new products to growth in the quarter? - Management noted that new products significantly contributed to growth, allowing the company to outperform market growth [64] Question: How much of your product was sourced from China during the previous tariff situation? - Management disclosed that over 70% of products were sourced from China during the previous tariff situation, indicating a much more diversified supply chain now [60][61] Question: How does the tariff situation impact different segments? - Management refrained from disclosing specific impacts by segment but indicated a competitive advantage in light duty and modest impact in heavy duty [72][73]

Dorman Products (DORM) Q1 2025 Earnings Call May 06, 2025 08:00 AM ET Company Participants Alexander Whitelam - Vice President - IRKevin Olsen - President, CEO & DirectorDavid Hession - Senior VP, CFO & TreasurerBret Jordan - Managing DirectorGary Prestopino - Managing DirectorJustin Ages - Director - Equity Research Conference Call Participants Scott Stember - Executive Director & Senior Research Analyst Operator Good morning, and thank you for standing by. Welcome to the Doorman Products First Quarter twe ...

Dorman Products (DORM) Q1 2025 Earnings Call May 06, 2025 08:00 AM ET Speaker0 Good morning, and thank you for standing by. Welcome to the Doorman Products First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note that this conference is being recorded. I'd now like to turn the conference over to Alex Whitelam, Vice President of Investor Relations. Thank you, sir. Please ...

DORMAN PRODUCTS, INC. Q1 2025 EARNINGS PRESENTATION MAY 6, 2025 TDORMANIA Forward-Looking Statements & Non-GAAP Financial Measures FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Words such as "may," "will," "should," "likely," "probably," "anticipates," "expects," "intends," "plans," "projects," "believes ...

Company Performance - Dorman Products reported quarterly earnings of $2.02 per share, exceeding the Zacks Consensus Estimate of $1.48 per share, and up from $1.31 per share a year ago, representing an earnings surprise of 36.49% [1] - The company achieved revenues of $507.69 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.86%, compared to $468.7 million in the same quarter last year [2] - Over the last four quarters, Dorman Products has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - Dorman Products shares have declined approximately 11% since the beginning of the year, while the S&P 500 has decreased by 3.3% [3] - The current consensus EPS estimate for the upcoming quarter is $1.84 on revenues of $526.41 million, and for the current fiscal year, it is $7.70 on revenues of $2.1 billion [7] Industry Outlook - The Automotive - Replacement Parts industry, to which Dorman Products belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Dorman Products' stock performance [5]

Financial Performance - Total net sales for Q1 2025 were $507.7 million, an increase of 8.3% compared to $468.7 million in Q1 2024[5] - Diluted EPS for Q1 2025 was $1.87, up 78% from $1.05 in the same quarter last year; adjusted diluted EPS was $2.02, a 54% increase from $1.31[7] - Gross profit for Q1 2025 was $207.7 million, representing 40.9% of net sales, compared to 38.7% in Q1 2024[5] - The company reported a net income of $57.5 million for Q1 2025, compared to $32.8 million in Q1 2024[20] - Adjusted net income for the three months ended March 29, 2025, was $62.1 million, compared to $40.8 million for the same period in 2024, representing a 52.0% increase[26] - Diluted earnings per share (GAAP) increased to $1.87 for the three months ended March 29, 2025, from $1.05 in the same period of 2024, reflecting an increase of 77.0%[26] - Gross profit (GAAP) for the three months ended March 29, 2025, was $207.7 million, with a gross margin of 40.9%, compared to $181.4 million and 38.7% in the same period of 2024[27] - SG&A expenses (GAAP) were $127.6 million for the three months ended March 29, 2025, representing 25.1% of net sales, compared to $127.0 million and 27.1% in the same period of 2024[28] Segment Performance - Light Duty segment net sales increased by 14% to $408.8 million, while Heavy Duty and Specialty Vehicle segments saw declines of 11% and 9%, respectively[9] Guidance and Projections - The company reaffirms its full-year 2025 guidance, projecting net sales growth of 3% to 5% and diluted EPS between $7.00 and $7.30[11] - The company expects diluted earnings per share (GAAP) for fiscal 2025 to be in the range of $7.00 to $7.30, with adjusted diluted earnings per share (Non-GAAP) projected between $7.55 and $7.85[35] - The weighted average diluted shares outstanding for fiscal 2025 is estimated to be 30.8 million[35] Cash Flow and Debt Management - Cash generated from operating activities was $51 million; the company repaid $20 million of debt and repurchased $12 million of its shares[8] Asset Management - Total assets as of March 29, 2025, were $2.43 billion, slightly up from $2.42 billion at the end of 2024[22] Cost Management - SG&A expenses were $127.6 million, or 25.1% of net sales, down from 27.1% in the same quarter last year[6] - The company incurred $5.5 million in pretax acquisition-related intangible asset amortization for both the three months ended March 29, 2025, and March 30, 2024[29] - The company reported a pretax reduction in workforce costs of $0.1 million for the three months ended March 29, 2025, significantly lower than $4.6 million in the same period of 2024[32] - Tax adjustments related to non-GAAP items totaled $(1.5) million for the three months ended March 29, 2025, compared to $(2.5) million for the same period in 2024[33] Supply Chain and Economic Strategy - The company has diversified its supply chain and strengthened its balance sheet to navigate economic challenges, including the impact of tariffs[4]

Core Insights - Dorman Products, Inc. reported strong financial performance in Q1 2025, with net sales increasing by 8.3% to $507.7 million, driven by robust demand in the Light Duty segment [3][5][9] - The company achieved a significant increase in diluted EPS, rising 78% to $1.87, and adjusted diluted EPS increased by 54% to $2.02, reflecting operational excellence and growth strategies [3][7][9] - Dorman is well-prepared to navigate economic challenges, including the impact of recently enacted tariffs, due to a diversified supply chain and strong supplier relationships [4][9] Financial Performance - Q1 2025 net sales were $507.7 million, up from $468.7 million in Q1 2024, marking an 8.3% increase [5][9] - Gross profit for Q1 2025 was $207.7 million, representing 40.9% of net sales, compared to $181.4 million or 38.7% in the same quarter last year [5][6] - SG&A expenses were $127.6 million, or 25.1% of net sales, down from 27.1% in Q1 2024, indicating improved operational efficiency [6][9] Segment Performance - Light Duty segment net sales increased by 14% to $408.8 million, with a profit margin improvement of 380 basis points to 19.9% [7] - Heavy Duty segment net sales decreased by 11% to $51.7 million, with a slight negative profit margin of -0.3% [7] - Specialty Vehicle segment net sales fell by 9% to $47.2 million, with a profit margin decrease of 370 basis points to 10.2% [7] 2025 Guidance - The company reaffirms its full-year 2025 guidance, projecting net sales growth of 3% to 5% and diluted EPS between $7.00 and $7.30 [8][10] - Adjusted diluted EPS is expected to be in the range of $7.55 to $7.85, reflecting a growth of 6% to 10% compared to 2024 [10][33]

Core Insights - Dorman Products, Inc. is launching 353 new automotive repair solutions in April 2025, expanding its Light Duty business segment and enhancing its catalog to over 138,000 SKUs, which presents millions of new sales opportunities for aftermarket parts distributors, retailers, and repair shops [1][6] Product Highlights - The new releases include four OE FIX steering knuckles featuring a patent-pending proprietary coating that prevents corrosion between the knuckle and wheel hub bearing, addressing common issues in certain Ford, Toyota, and Lexus trucks and SUVs [2][3] - Additional products include a battery main fuse for select Chevrolet and GMC trucks, an exterior cargo door handle for specified Chevrolet and GMC trucks, and a power running board motor for certain Ford F-150 trucks [9] Company Overview - Dorman has been providing aftermarket replacement products for over 100 years, focusing on solutions that save time and money while increasing convenience and reliability for professionals and vehicle owners [6][7] - The company is headquartered in the United States and offers a diverse catalog covering various vehicle types, from chassis to complex electronics [7]

Core Points - Dorman Products, Inc. will report its financial results for the first quarter ended March 29, 2025, after the closing of the Nasdaq Stock Market on May 5, 2025 [1] - A conference call and webcast to discuss the financial results is scheduled for May 6, 2025, at 8 a.m. ET, accessible via specific dialing instructions [2] - Dorman has been providing aftermarket replacement products for over 100 years, focusing on solutions that save time and money for vehicle repairs [3][4] Company Overview - Dorman Products is a pioneering global organization headquartered in the United States, offering a diverse catalog of products for cars, trucks, and specialty vehicles [4] - The company specializes in a wide range of automotive components, from chassis to body and from underhood to undercarriage, including hardware and complex electronics [4]

Company Overview - Dorman Products (NASDAQ: DORM) is a supplier of replacement and upgrade parts in the motor vehicle aftermarket industry [1] Investment Insights - The company has a strong track record and is recognized for its potential in generating cash flow, leading to value and growth prospects [1]