Core Viewpoint - Dorman Products (NASDAQ:DORM) reported strong 2Q24 results with a 4.7% year-over-year increase in net sales, primarily driven by the light duty segment, which grew by 9% year-over-year, while the specialty vehicle and heavy duty segments faced challenges. The company’s outlook remains positive due to increasing vehicle miles traveled and a record-high average vehicle age, supporting demand for aftermarket parts [2][33]. Financial Performance - Dorman Products reported net sales of $503 million in 2Q24, up from $480.6 million in the previous year, marking a 4.7% increase [4]. - The adjusted gross profit margin expanded from 35% to 40%, while the adjusted operating margin increased to 15.6% and the adjusted net income margin rose from 6.6% to 10.3% [5][33]. - Adjusted diluted EPS increased from $1.01 to $1.67, representing a year-over-year growth of approximately 65.3% [24]. Segment Performance - The light duty segment accounted for 77% of total net sales, with sales increasing by 9% year-over-year to $385.4 million [12][25]. - The heavy duty segment saw a decline of 11% year-over-year, with net sales of $61.2 million, attributed to a challenging freight industry [20][26]. - The specialty vehicle segment experienced a modest decline of 2%, with net sales of $56.4 million, impacted by high interest rates and economic uncertainty [22][27]. Market Trends - Total vehicle miles traveled are nearing pre-pandemic levels, which is expected to drive demand for vehicle repairs and aftermarket parts [28][33]. - The average age of vehicles in the U.S. has reached a record high of 12.6 years, which is anticipated to support the aftermarket industry as older vehicles typically require more repairs [30][33]. - The number of vehicles aged between 8 and 13 years remains robust, further bolstering demand for Dorman's products [29][30]. Growth Outlook - Dorman Products raised its guidance for full-year 2024, forecasting net sales growth between 3% to 5% and adjusted diluted EPS guidance increased to a range of $6.00 to $6.20 [31]. - The company’s forward revenue growth rate is projected at 6.50%, significantly outperforming peers' median of 1.55% [31]. - The target share price for Dorman Products has been adjusted to $108.33 based on its strong performance and favorable market conditions [31].

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Financial Data and Key Metrics Changes - Consolidated net sales increased by 5% year-over-year to $503 million, with adjusted operating margin improving by 430 basis points [5][16] - Adjusted diluted EPS rose by 65% compared to the same period last year, reaching $1.67 [6][17] - Free cash flow was $51 million, used to repay $15 million of debt and repurchase $25 million of shares [6][21] Business Segment Data and Key Metrics Changes - Light Duty segment net sales were $385 million, a 9% increase year-over-year, with operating margin improving by 550 basis points to 17.1% [17][18] - Heavy Duty segment net sales decreased by 11% to $61 million, with operating margin at 4.4%, down 50 basis points year-over-year but up 440 basis points sequentially [18][19] - Specialty Vehicle segment net sales were $56 million, a 2% decrease year-over-year, but operating margin increased by 100 basis points to 17.8% [19][20] Market Data and Key Metrics Changes - The Light Duty market showed positive trends with increased vehicle miles traveled and a growing number of older vehicles [6][7] - Heavy Duty market remains soft, expected to continue through early 2025, while Specialty Vehicle market faces challenges but is capturing share [8][23] Company Strategy and Development Direction - The company is focused on innovation and automation to enhance operational efficiency and meet customer demands [12][14] - Investments in new product development and automation are expected to yield significant cost savings and operational benefits [14][24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term demand for vehicles and parts, anticipating a rebound as economic volatility stabilizes [11][24] - The company raised its full-year earnings guidance, expecting consolidated net sales growth of 3% to 5% and adjusted diluted EPS of $6 to $6.20 [22][24] Other Important Information - The company has invested $14 million in capital for automation and operational improvements, expecting annualized net savings of approximately $8 million [14][15] - The net debt was reduced to $500 million, with a net leverage ratio of 1.44 times adjusted EBITDA [21] Q&A Session Summary Question: Insights on POS growth in Light Duty - Management noted broad-based growth across categories, with a solid quarter driven by new product launches, including 1,700 SKUs, 30% of which were new to the aftermarket [26][27] Question: Expected operating margins for Heavy Duty and Specialty - Management expects Light Duty and Specialty Vehicle margins in the high teens, while Heavy Duty margins are projected in the mid-to-high teens [28] Question: Core SKU performance in Light Duty - Most growth is attributed to new products, with the market growth estimated in the low single-digit range [29] Question: Specialty Vehicle market conditions - The Specialty Vehicle business has been flat, but inventory levels are normalizing, which may help future sales [30][31] Question: Impact of new vehicle sales on Specialty Vehicle sales - A significant portion of sales occurs within the first two years of a new vehicle sale, indicating that drops in new vehicle sales impact the business [32]

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 ...