Group 1 - Dorman Products (DORM) is currently outperforming its peers in the Auto-Tires-Trucks sector, with a year-to-date return of approximately 65.3% compared to the sector average of 6.8% [4] - The Zacks Rank for Dorman Products is 1 (Strong Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 12.3% increase in the full-year earnings estimate over the past three months [3][4] - Dorman Products belongs to the Automotive - Replacement Parts industry, which has an average loss of 17.2% this year, further highlighting DORM's strong performance [6] Group 2 - REE Automotive Ltd. (REE) has also shown strong performance in the Auto-Tires-Trucks sector, with a year-to-date return of 48.3% and a Zacks Rank of 2 (Buy) [5][7] - The Automotive - Original Equipment industry, which includes REE, has experienced a decline of 19.4% this year, contrasting with Dorman Products' positive performance [7]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Dorman Products (DORM) - Dorman Products currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - DORM shares have increased by 11.21% over the past week, while the Zacks Automotive - Replacement Parts industry has declined by 1.21% during the same period [5] - Over the past month, DORM's price change is 20.68%, significantly outperforming the industry's 0.18% [5] - In the last quarter, DORM shares rose by 23.99%, and over the past year, they have gained 99.93%, compared to the S&P 500's increases of 15.2% and 38.09%, respectively [6] Trading Volume - DORM's average 20-day trading volume is 181,714 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for DORM have been revised upwards, increasing the consensus estimate from $6.15 to $6.90 [9] - For the next fiscal year, three estimates have also moved higher, with no downward revisions noted [9] Conclusion - Given the strong performance metrics and positive earnings outlook, Dorman Products is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling investment option [9]

Growth Stocks Overview - Growth stocks are attractive due to their above-average financial growth and potential for exceptional returns, but they carry higher risk and volatility [1] - Identifying great growth stocks is challenging, especially if a company's growth story is nearing its end [1] Zacks Growth Style Score - The Zacks Growth Style Score helps identify cutting-edge growth stocks by analyzing a company's real growth prospects beyond traditional attributes [2] - Dorman Products (DORM) is recommended by the Zacks system, with a favorable Growth Score and a top Zacks Rank [2] Earnings Growth - Earnings growth is a critical factor for growth stocks, with double-digit growth indicating strong prospects and potential stock price gains [3] - Dorman Products' historical EPS growth rate is 16.7%, but its projected EPS growth for this year is 52%, significantly higher than the industry average of 30.8% [4] Cash Flow Growth - Cash flow growth is particularly important for growth-oriented companies, enabling them to fund new projects without external financing [5] - Dorman Products' year-over-year cash flow growth is 1.6%, outperforming the industry average of -14% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 3.4%, compared to the industry average of 3% [6] Earnings Estimate Revisions - Positive trends in earnings estimate revisions are strongly correlated with near-term stock price movements [7] - Dorman Products' current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate surging 12.3% over the past month [8] Conclusion - Dorman Products has a Growth Score of B and a Zacks Rank 1, positioning it well for outperformance, making it an attractive option for growth investors [8][9]

Dorman Products (DORM) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The ...

Have you been paying attention to shares of Dorman Products (DORM) ? Shares have been on the move with the stock up 26.4% over the past month. The stock hit a new 52-week high of $138.15 in the previous session. Dorman Products has gained 65.1% since the start of the year compared to the -8.7% move for the Zacks Auto-Tires-Trucks sector and the -21% return for the Zacks Automotive - Replacement Parts industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as i ...

Financial Data and Key Metrics Changes - Consolidated net sales increased by 3.2% year over year to $504 million [8][26] - Adjusted operating margin expanded by 290 basis points to 17.1% [8][27] - Adjusted diluted EPS rose by 40% to $1.96 compared to the previous year's Q3 [8][27] - Free cash flow was solid at $36 million, allowing for debt repayment of $11 million and share repurchase of $27 million [8][34] Business Line Data and Key Metrics Changes - Light Duty segment net sales were $394 million, up 5% year over year, with a segment profit margin of 19%, an increase of 290 basis points [28][29] - Heavy Duty segment net sales decreased by 5% to $60 million, but operating margin improved by 150 basis points to 4.5% [30][31] - Specialty Vehicle segment net sales remained flat at $51 million, with segment profit margin increasing by 350 basis points to 17% [32][33] Market Data and Key Metrics Changes - Vehicle miles traveled were higher year over year, contributing to positive trends in the Light Duty segment [9] - The Heavy Duty market is showing signs of stabilization after recent pressures, although predicting a growth inflection remains difficult [10][31] - Specialty Vehicle segment faced market headwinds but anticipates increased demand as interest rates stabilize [11][33] Company Strategy and Development Direction - The company is focusing on innovation and new product development, particularly in complex electronics, to drive growth [13][20] - Dorman aims to diversify its supplier base and geographic exposure as part of its strategic initiatives [10] - The company is committed to long-term growth by investing in people, processes, and next-generation solutions [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Light Duty segment's momentum continuing into Q4 [37] - There are expectations for improved performance in Heavy Duty and Specialty Vehicle segments as market conditions stabilize [38] - The company is well-positioned to capitalize on growth opportunities as market conditions improve [31][38] Other Important Information - The company has approved a new share repurchase authorization of up to $500 million covering 2025 through 2027 [34] - Net debt was reported at $492 million, with a net leverage ratio of 1.36 times adjusted EBITDA [35] Q&A Session Summary Question: Light Duty segment performance amidst market softness - Management noted that Dorman's growth is driven by new products and is less affected by DIY trends, focusing on the commercial side of the business [43][44] Question: Heavy Duty segment margin outlook - Management indicated that while the Heavy Duty market is stabilizing, they expect to return to mid-teen operating profit margins when the market improves [45] Question: Specialty Vehicle segment's non-discretionary repair focus - Management confirmed that over half of the Specialty Vehicle segment's business is now non-discretionary repair, a significant increase since the acquisition [47][48] Question: Complex electronics product margins - Management stated that new complex electronics products generally carry a higher margin profile than existing aftermarket products [49][50] Question: Impact of potential tariff changes - Management expressed confidence in their diversified supply chain and readiness to adapt to any tariff changes [51][52] Question: Electric vehicle parts outlook - Management emphasized that while electric vehicles are a smaller portion of the market now, they are prepared to address parts for all vehicle types, including electric and hybrid [54][55]

Dorman Products (DORM) came out with quarterly earnings of $1.96 per share, beating the Zacks Consensus Estimate of $1.54 per share. This compares to earnings of $1.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 27.27%. A quarter ago, it was expected that this distributor of parts to automotive retailers would post earnings of $1.19 per share when it actually produced earnings of $1.67, delivering a surprise of 40.34%.Over ...

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) [Third Quarter 2024 Performance Highlights](index=1&type=section&id=Third%20Quarter%202024%20Performance%20Highlights) Dorman Products reported strong third quarter 2024 results, with net sales increasing by 3.2% and diluted EPS growing by 41% Q3 2024 Key Financial Highlights | Metric | Q3 2024 | Q3 2023 | Change (%) | | :-------------------- | :------ | :------ | :--------- | | Net sales | $503.8M | $488.2M | 3.2% | | Diluted EPS | $1.80 | $1.28 | 41% | | Adjusted diluted EPS* | $1.96 | $1.40 | 40% | - Repurchased **$27 million** of its shares during the quarter[1](index=1&type=chunk) - Announced a new share repurchase authorization for up to **$500 million**[1](index=1&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) Kevin Olsen, Dorman's President and CEO, highlighted strong Q3 performance driven by mid-single digit net sales growth in the Light Duty segment and the company's innovation strategy - Light Duty segment drove **mid-single digit net sales growth**[2](index=2&type=chunk) - Innovation strategy continues to bolster Dorman's leading portfolio of aftermarket solutions[2](index=2&type=chunk) - Operational excellence initiatives are enabling streamlined workflows, quicker speeds to market, and increased profitability[2](index=2&type=chunk) [Updated Full-Year 2024 Guidance Overview](index=1&type=section&id=Updated%20Full-Year%202024%20Guidance%20Overview) Following strong Q3 results and a positive outlook, Dorman updated and narrowed its full-year 2024 net sales and EPS growth guidance, significantly raising EPS expectations Updated Full-Year 2024 Guidance | Metric | Updated 2024 Guidance | Prior 2024 Guidance | | :---------------------- | :-------------------- | :------------------ | | Net Sales Growth vs. 2023 | 3.5% – 4.5% | 3% – 5% | | Diluted EPS | $6.15 – $6.25 | $5.32 – $5.52 | | Adjusted Diluted EPS* | $6.85 – $6.95 | $6.00 – $6.20 | [Third Quarter Financial Performance](index=1&type=section&id=Third%20Quarter%20Financial%20Performance) [Consolidated Financial Results (Q3)](index=1&type=section&id=Consolidated%20Financial%20Results%20(Q3)) Dorman Products reported a 3.2% increase in net sales for Q3 2024, reaching **$503.8 million**, with gross profit margin improving to **40.5%** and diluted EPS increasing by **41%** to **$1.80** Q3 2024 Consolidated Financial Results | Metric (in thousands) | Q3 2024 | Q3 2023 | Change (%) | | :-------------------- | :------ | :------ | :--------- | | Net sales | $503,773 | $488,186 | 3.2% | | Gross profit | $203,803 | $183,218 | 11.2% | | Gross profit margin | 40.5% | 37.5% | +300 bps | | SG&A expenses | $124,532 | $119,010 | 4.6% | | SG&A as % of net sales | 24.7% | 24.4% | +30 bps | | Net income | $55,253 | $40,522 | 36.3% | | Diluted earnings per share | $1.80 | $1.28 | 40.6% | [Segment Performance (Q3)](index=2&type=section&id=Segment%20Performance%20(Q3)) In Q3 2024, Light Duty net sales grew by **5%**, Heavy Duty sales decreased by **5%**, and Specialty Vehicle sales remained flat, with all segments showing improved profit margins Q3 2024 Segment Results | Segment | Q3 2024 Net Sales ($M) | Q3 2023 Net Sales ($M) | Net Sales Change (%) | Q3 2024 Profit Margin | Q3 2023 Profit Margin | Profit Margin Change (bps) | | :---------------- | :--------------------- | :--------------------- | :------------------- | :-------------------- | :-------------------- | :------------------------- | | Light Duty | 393.6 | 374.7 | 5% | 19.0% | 16.1% | 290 | | Heavy Duty | 59.6 | 62.8 | -5% | 4.5% | 3.0% | 150 | | Specialty Vehicle | 50.6 | 50.6 | 0% | 17.0% | 13.5% | 350 | [Cash Flow and Capital Allocation (Q3)](index=2&type=section&id=Cash%20Flow%20and%20Capital%20Allocation%20(Q3)) During Q3 2024, Dorman generated **$44 million** in operating cash flow, invested **$9 million** in capital expenditures, repaid **$11 million** of debt, and returned **$27 million** to shareholders - Generated **$44 million** in cash from operating activities[7](index=7&type=chunk) - Invested **$9 million** in capital expenditures[7](index=7&type=chunk) - Repaid **$11 million** of debt[7](index=7&type=chunk) - Returned **$27 million** to shareholders through stock repurchases[7](index=7&type=chunk) [Full-Year 2024 Guidance Update](index=2&type=section&id=Full-Year%202024%20Guidance%20Update) Dorman Products updated its full-year 2024 guidance, raising the lower end of its net sales growth range and significantly increasing both diluted and adjusted diluted EPS expectations Updated Full-Year 2024 Guidance | Metric | Updated 2024 Guidance | Prior 2024 Guidance | | :---------------------- | :-------------------- | :------------------ | | Net Sales Growth vs. 2023 | 3.5% – 4.5% | 3% – 5% | | Diluted EPS | $6.15 – $6.25 | $5.32 – $5.52 | | Growth vs. 2023 | 50% – 52% | 30% – 35% | | Adjusted Diluted EPS* | $6.85 – $6.95 | $6.00 – $6.20 | | Growth vs. 2023 | 51% – 53% | 32% – 37% | | Tax Rate Estimate | 24% | 24% | - Guidance excludes potential impacts from future acquisitions/divestitures, supply chain disruptions, significant inflation, interest rate changes, and additional share repurchases[9](index=9&type=chunk) [Share Repurchase Program](index=2&type=section&id=Share%20Repurchase%20Program) Dorman repurchased **$26.7 million** of its common stock in Q3 2024 and announced a new share repurchase program, effective January 1, 2025, authorizing up to **$500 million** in repurchases by the end of 2027 - Repurchased **273,653 shares** for **$26.7 million** at an average price of **$97.70** during Q3 2024[11](index=11&type=chunk) - A new share repurchase program was authorized for up to **$500 million**, effective January 1, 2025, through the end of 2027[12](index=12&type=chunk) - The prior share repurchase plan, with **$134.6 million** remaining, will expire on December 31, 2024[11](index=11&type=chunk)[12](index=12&type=chunk) [Company Overview & Investor Information](index=2&type=section&id=Company%20Overview%20%26%20Investor%20Information) [About Dorman Products](index=3&type=section&id=About%20Dorman%20Products) Dorman Products is a leading global supplier in the motor vehicle aftermarket industry, providing tens of thousands of replacement products for over 100 years, covering a wide range of vehicles and components - Over **100 years** of driving new solutions in the motor vehicle aftermarket industry[14](index=14&type=chunk) - Offers an always-evolving catalog of products covering cars, trucks, and specialty vehicles[15](index=15&type=chunk) - Products range from chassis to body, underhood to undercarriage, and hardware to complex electronics[15](index=15&type=chunk) [Conference Call and Webcast Details](index=2&type=section&id=Conference%20Call%20and%20Webcast%20Details) Dorman Products will host a conference call and webcast for investors on Friday, November 1, 2024, at 8:00 a.m. Eastern time, with a replay available on the company's website - Conference call and webcast scheduled for Friday, November 1, 2024, at **8:00 a.m. Eastern time**[13](index=13&type=chunk) - Access via telephone (U.S.: (888) 440-4182, International: +1 (646) 960-0653, Conference ID: 1698878) or live audio webcast on Dorman Products, Inc. - Events[13](index=13&type=chunk) [Investor Relations Contact](index=3&type=section&id=Investor%20Relations%20Contact) Contact information for Dorman Products' VP of Investor Relations & Risk Management, Alex Whitelam, is provided, along with a link to the company's investor relations website - Investor Relations Contact: Alex Whitelam, VP, Investor Relations & Risk Management[18](index=18&type=chunk) - Email: awhitelam@dormanproducts.com, Phone: (445) 448-9522[18](index=18&type=chunk) - Company website: www.dormanproducts.com, with a dedicated Investor Relations section[18](index=18&type=chunk) [GAAP Financial Statements](index=4&type=section&id=GAAP%20Financial%20Statements) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) [Three Months Ended September 28, 2024 and September 30, 2023](index=4&type=section&id=Three%20Months%20Ended%20September%2028%2C%202024%20and%20September%2030%2C%202023) For the three months ended September 28, 2024, Dorman reported net sales of **$503.8 million**, gross profit of **$203.8 million** (40.5% of sales), and net income of **$55.3 million**, resulting in diluted EPS of **$1.80** Consolidated Statements of Operations (Three Months, in thousands) | Metric | 9/28/2024 | Pct. of Sales | 9/30/2023 | Pct. of Sales | | :----------------------------------- | :-------- | :------------ | :-------- | :------------ | | Net sales | $503,773 | 100.0% | $488,186 | 100.0% | | Cost of goods sold | $299,970 | 59.5% | $304,968 | 62.5% | | Gross profit | $203,803 | 40.5% | $183,218 | 37.5% | | Selling, general and administrative expenses | $124,532 | 24.7% | $119,010 | 24.4% | | Income from operations | $79,271 | 15.7% | $64,208 | 13.2% | | Interest expense, net | $9,762 | 1.9% | $12,215 | 2.5% | | Income before income taxes | $71,124 | 14.1% | $52,598 | 10.8% | | Provision for income taxes | $15,871 | 3.2% | $12,076 | 2.5% | | Net income | $55,253 | 11.0% | $40,522 | 8.3% | | Diluted earnings per share | $1.80 | | $1.28 | | [Nine Months Ended September 28, 2024 and September 30, 2023](index=4&type=section&id=Nine%20Months%20Ended%20September%2028%2C%202024%20and%20September%2030%2C%202023) For the nine months ended September 28, 2024, net sales were **$1,475.4 million**, gross profit was **$584.7 million** (39.6% of sales), and net income was **$135.5 million**, leading to diluted EPS of **$4.37** Consolidated Statements of Operations (Nine Months, in thousands) | Metric | 9/28/2024 | Pct. of Sales | 9/30/2023 | Pct. of Sales | | :----------------------------------- | :-------- | :------------ | :-------- | :------------ | | Net sales | $1,475,425 | 100.0% | $1,435,492 | 100.0% | | Cost of goods sold | $890,775 | 60.4% | $944,291 | 65.8% | | Gross profit | $584,650 | 39.6% | $491,201 | 34.2% | | Selling, general and administrative expenses | $378,489 | 25.7% | $353,681 | 24.6% | | Income from operations | $206,161 | 14.0% | $137,520 | 9.6% | | Interest expense, net | $30,569 | 2.1% | $36,733 | 2.6% | | Income before income taxes | $177,303 | 12.0% | $102,145 | 7.1% | | Provision for income taxes | $41,812 | 2.8% | $23,170 | 1.6% | | Net income | $135,491 | 9.2% | $78,975 | 5.5% | | Diluted earnings per share | $4.37 | | $2.50 | | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of September 28, 2024, Dorman's total assets were **$2,364.1 million**, with total current assets at **$1,316.1 million**, and total liabilities and shareholders' equity matching total assets Consolidated Balance Sheets (in thousands) | Metric | 9/28/2024 | 12/31/2023 | | :-------------------------------- | :-------- | :--------- | | Cash and cash equivalents | $45,127 | $36,814 | | Accounts receivable, net | $571,051 | $526,867 | | Inventories | $665,237 | $637,375 | | Total current assets | $1,316,076 | $1,233,709 | | Property, plant and equipment, net | $165,734 | $160,113 | | Goodwill | $443,340 | $443,889 | | Total assets | $2,364,097 | $2,292,407 | | Total current liabilities | $561,323 | $547,151 | | Long-term debt | $455,038 | $467,239 | | Total shareholders' equity | $1,234,602 | $1,168,203 | | Total liabilities and shareholders' equity | $2,364,097 | $2,292,407 | [Cash Flow Activities (Selected)](index=5&type=section&id=Cash%20Flow%20Activities%20(Selected)) For the nine months ended September 28, 2024, cash provided by operating activities increased to **$159.6 million**, while capital expenditures slightly decreased Selected Cash Flow Activities (in thousands) | Metric | Three Months 9/28/24 | Three Months 9/30/23 | Nine Months 9/28/24 | Nine Months 9/30/23 | | :-------------------------------- | :------------------- | :------------------- | :------------------ | :------------------ | | Cash provided by operating activities | $44,293 | $56,224 | $159,622 | $149,110 | | Depreciation, amortization and accretion | $14,812 | $13,817 | $43,015 | $40,786 | | Capital expenditures | $8,555 | $9,667 | $31,245 | $32,936 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) [Explanation of Non-GAAP Measures](index=6&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Dorman Products uses Non-GAAP financial measures to provide additional insights into its operating performance, profitability trends, and underlying growth, believing they offer useful information to investors when reconciled to GAAP measures - Non-GAAP financial measures provide useful information to investors by offering additional ways of viewing results, profitability trends, and underlying growth[24](index=24&type=chunk) - Adjustments may include charges for fair value adjustments, amortization, transaction costs, severance, accelerated depreciation, and other similar expenses related to acquisitions, as well as other items not related to ongoing performance[24](index=24&type=chunk) - Non-GAAP measures should not be used as a substitute for GAAP measures or considered in isolation[24](index=24&type=chunk) [Adjusted Net Income Reconciliation](index=6&type=section&id=Adjusted%20Net%20Income%20Reconciliation) Dorman reconciles GAAP net income to Adjusted Net Income by adding back pretax acquisition-related intangible assets amortization, transaction and other costs, executive transition services expense, reduction in workforce costs, and adjusting for fair value changes to contingent consideration and related tax impacts Adjusted Net Income Reconciliation (in thousands) | Metric | Three Months 9/28/24 | Three Months 9/30/23 | Nine Months 9/28/24 | Nine Months 9/30/23 | | :------------------------------------------------------- | :------------------- | :------------------- | :------------------ | :------------------ | | Net income (GAAP) | $55,253 | $40,522 | $135,491 | $78,975 | | Pretax acquisition-related intangible assets amortization | $6,173 | $5,485 | $17,138 | $16,336 | | Pretax acquisition-related transaction and other costs | $396 | $465 | $1,327 | $14,880 | | Pretax executive transition services expense | — | — | — | $1,801 | | Pretax fair value adjustment to contingent consideration | — | $(1,000) | — | $(13,400) | | Pretax reduction in workforce costs | $76 | — | $4,926 | — | | Tax adjustment (related to above items) | $(1,654) | $(1,214) | $(5,815) | $(4,891) | | Adjusted net income (Non-GAAP) | $60,244 | $44,258 | $153,067 | $93,701 | Adjusted Diluted EPS Reconciliation | Metric | Three Months 9/28/24 | Three Months 9/30/23 | Nine Months 9/28/24 | Nine Months 9/30/23 | | :------------------------------------------------------- | :------------------- | :------------------- | :------------------ | :------------------ | | Diluted earnings per share (GAAP) | $1.80 | $1.28 | $4.37 | $2.50 | | Pretax acquisition-related intangible assets amortization | $0.20 | $0.17 | $0.55 | $0.52 | | Pretax acquisition-related transaction and other costs | $0.01 | $0.01 | $0.04 | $0.47 | | Pretax executive transition services expense | — | — | — | $0.06 | | Pretax fair value adjustment to contingent consideration | — | $(0.03) | — | $(0.42) | | Pretax reduction in workforce costs | $0.00 | — | $0.16 | — | | Tax adjustment (related to above items) | $(0.05) | $(0.04) | $(0.19) | $(0.16) | | Adjusted diluted earnings per share (Non-GAAP) | $1.96 | $1.40 | $4.93 | $2.97 | [Adjusted Gross Profit Reconciliation](index=7&type=section&id=Adjusted%20Gross%20Profit%20Reconciliation) Adjusted Gross Profit is derived by adding back pretax acquisition-related transaction and other costs to GAAP gross profit, with Q3 2024 adjusted gross profit at **$203.8 million** and a **40.5%** margin Adjusted Gross Profit Reconciliation (in thousands) | Metric | Three Months 9/28/24 | Pct.** | Three Months 9/30/23 | Pct.** | Nine Months 9/28/24 | Pct.** | Nine Months 9/30/23 | Pct.** | | :------------------------------------------------------- | :------------------- | :----- | :------------------- | :----- | :------------------ | :----- | :------------------ | :----- | | Gross profit (GAAP) | $203,803 | 40.5 | $183,218 | 37.5 | $584,650 | 39.6 | $491,201 | 34.2 | | Pretax acquisition-related transaction and other costs | $1 | 0.0 | $6 | 0.0 | $11 | 0.0 | $11,806 | 0.8 | | Adjusted gross profit (Non-GAAP) | $203,804 | 40.5 | $183,224 | 37.5 | $584,661 | 39.6 | $503,007 | 35.0 | [Adjusted SG&A Expenses Reconciliation](index=8&type=section&id=Adjusted%20SG%26A%20Expenses%20Reconciliation) Adjusted SG&A expenses are calculated by excluding pretax acquisition-related intangible assets amortization, transaction and other costs, fair value adjustments to contingent consideration, executive transition services expense, and reduction in workforce costs from GAAP SG&A expenses Adjusted SG&A Expenses Reconciliation (in thousands) | Metric | Three Months 9/28/24 | Pct.** | Three Months 9/30/23 | Pct.** | Nine Months 9/28/24 | Pct.** | Nine Months 9/30/23 | Pct.** | | :------------------------------------------------------- | :------------------- | :----- | :------------------- | :----- | :------------------ | :----- | :------------------ | :----- | | SG&A expenses (GAAP) | $124,532 | 24.7 | $119,010 | 24.4 | $378,489 | 25.7 | $353,681 | 24.6 | | Pretax acquisition-related intangible assets amortization | $(6,173) | (1.2) | $(5,485) | (1.1) | $(17,138) | (1.2) | $(16,336) | (1.1) | | Pretax acquisition-related transaction and other costs | $(395) | (0.1) | $(459) | (0.1) | $(1,316) | (0.1) | $(3,074) | (0.2) | | Executive transition services expense | — | — | — | — | — | — | $(1,801) | (0.1) | | Pretax fair value adjustment to contingent consideration | — | — | $1,000 | 0.2 | — | — | $13,400 | 0.9 | | Pretax reduction in workforce costs | $(76) | (0.0) | — | — | $(4,926) | (0.3) | — | — | | Adjusted SG&A expenses (Non-GAAP) | $117,888 | 23.4 | $114,066 | 23.4 | $355,109 | 24.1 | $345,870 | 24.1 | [Notes to Non-GAAP Adjustments](index=8&type=section&id=Notes%20to%20Non-GAAP%20Adjustments) This section provides detailed explanations for the various adjustments made to reconcile GAAP to Non-GAAP financial measures, including acquisition-related intangible asset amortization, transaction and other costs, executive transition services expense, fair value adjustments to contingent consideration, reduction in workforce costs, and tax adjustments - Pretax acquisition-related intangible asset amortization results from allocating purchase price to acquired tangible and intangible assets and recognizing the cost over the period of benefit[29](index=29&type=chunk) - Pretax acquisition-related transaction and other costs include integration costs, accretion on contingent consideration obligations, inventory fair value adjustments, and facility consolidation and start-up expenses[30](index=30&type=chunk)[31](index=31&type=chunk) - Pretax reduction in workforce costs represent expenses incurred for planned workforce reductions, including severance and other payroll-related costs[34](index=34&type=chunk) [2024 Guidance Reconciliation (Non-GAAP)](index=10&type=section&id=2024%20Guidance%20Reconciliation%20(Non-GAAP)) Dorman provides a reconciliation of its GAAP diluted EPS guidance to Adjusted diluted EPS guidance for 2024, incorporating adjustments for acquisition-related intangible assets amortization, transaction and other costs, reduction in workforce costs, and related tax impacts 2024 Guidance Reconciliation (Non-GAAP) | Metric | Low End ($) | High End ($) | | :------------------------------------------------------- | :---------- | :----------- | | Diluted earnings per share (GAAP) | $6.15 | $6.25 | | Pretax acquisition-related intangible assets amortization | $0.73 | $0.73 | | Pretax acquisition transaction and other costs | $0.05 | $0.05 | | Pretax reduction in workforce costs | $0.15 | $0.15 | | Tax adjustment (related to above items) | $(0.23) | $(0.23) | | Adjusted diluted earnings per share (Non-GAAP) | $6.85 | $6.95 |

Core Insights - Dorman Products, Inc. reported net sales of $503.8 million for Q3 2024, reflecting a 3.2% increase from $488.2 million in Q3 2023 [1][4] - The diluted earnings per share (EPS) rose to $1.80, a 41% increase compared to $1.28 in the same quarter last year [1][7] - The company has updated its full-year guidance for 2024, expecting net sales growth of 3.5% to 4.5% and diluted EPS in the range of $6.15 to $6.25 [3][10] Financial Performance - Gross profit for Q3 2024 was $203.8 million, representing 40.5% of net sales, up from $183.2 million or 37.5% of net sales in Q3 2023 [5] - Selling, general and administrative (SG&A) expenses were $124.5 million, or 24.7% of net sales, compared to $119.0 million, or 24.4% of net sales in the same quarter last year [6] - The company generated $44 million in cash from operating activities during the quarter [7] Segment Performance - Light Duty segment net sales increased to $393.6 million, up 5% from $374.7 million in Q3 2023, with a segment profit margin improvement of 290 basis points [8] - Heavy Duty segment net sales decreased by 5% to $59.6 million, while the Specialty Vehicle segment remained flat at $50.6 million [8][9] Share Repurchase and Guidance - Dorman repurchased $27 million of its shares and announced a new share repurchase authorization for up to $500 million [1][12] - The updated guidance for 2024 includes an increase in diluted EPS expectations to $6.15 to $6.25, up from the previous range of $5.32 to $5.52 [10][3] Cash Flow and Capital Expenditures - The company invested $9 million in capital expenditures during the quarter [7] - Cash provided by operating activities for the nine months ended September 28, 2024, was $159.6 million, compared to $149.1 million for the same period in 2023 [24]

Core Insights - Dorman Products, Inc. has announced the release of hundreds of new aftermarket components and assemblies, expanding its catalog to over 133,000 SKUs, which includes several aftermarket exclusives [1][3] - The new products are designed to provide better repair solutions than original equipment manufacturer (OEM) parts, creating millions of repair opportunities for parts distributors, retailers, and repair shops [1][3] Product Innovations - New Dorman® OE FIX™ products include an exhaust manifold repair clamp for General Motors and Isuzu vehicles, a durable transmission gearshift bracket for Dodge and Ram trucks, and a flexible stainless steel fuel line for select Chevrolet, Pontiac, and Buick vehicles [1][2] - Additional innovations include a loaded brake backing plate for Ford vehicles, turbocharger inlet duct and charge air cooler pipe for Ram trucks, and precision-engineered exhaust manifold kits for Ford Transit vans [2] - The new product solutions collectively offer over 18 million new repair opportunities for repair professionals and vehicle owners [3] Company Overview - Dorman Products has been providing aftermarket replacement products for over 100 years, focusing on solutions that save time and money while increasing convenience and reliability [4][5] - The company is headquartered in the United States and offers a diverse catalog of products covering various vehicle types, from chassis to complex electronics [5]