COLMAR, Pa., Oct. 10, 2024 (GLOBE NEWSWIRE) -- Dorman Products, Inc. (the "Company" or "Dorman") (NASDAQ: DORM) today announced the Company will report its financial results for the third quarter ended September 28, 2024 after the closing of the Nasdaq Stock Market on October 31, 2024. The Company also announced that it is scheduled to conduct a conference call and webcast of its third quarter 2024 financial results on November 1, 2024 at 8 a.m. ET. The conference call can be accessed by dialing (888) 440-4 ...

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Market Overview - Recent market sell-offs are attributed to a combination of factors, leading to a pullback and correction in major indexes, with investors concerned about an economic slowdown and recession due to disappointing economic indicators [1] - Weak jobs data for July, including lower-than-expected job additions and a rise in the unemployment rate, have negatively impacted the U.S. economy's outlook, raising fears about the Federal Reserve's ability to achieve a "soft landing" [2] Geopolitical Factors - Geopolitical tensions, particularly the ongoing conflict between Ukraine and Russia and escalating tensions between Israel and Iran, are contributing to market volatility [3] Investment Strategies - In light of market uncertainty, investors are reassessing their positions and strategies, with a focus on a "relative price strength" strategy to identify stocks outperforming their peers despite broader market weakness [4] - The relative price strength strategy emphasizes the importance of earnings growth and valuation multiples to determine a stock's performance relative to its peers [5] Screening Parameters - Key screening parameters for identifying potential investment opportunities include: - Relative % Price change over 12 weeks, 4 weeks, and 1 week greater than 0 [9] - Positive current-quarter estimate revisions over the last four weeks [9] - Zacks Rank equal to 1 (Strong Buy) for stocks that have historically outperformed the S&P 500 [10] - Current price greater than or equal to $5 and average 20-day volume greater than or equal to 50,000 for liquidity [11] Company Highlights - **Spotify Technology S.A. (SPOT)**: Expected 2024 earnings growth of 314.2% year-over-year, with a market capitalization of $64.4 billion and shares up 143.2% in a year [12] - **Interface, Inc. (TILE)**: Projected 2024 earnings growth of 28%, with a market capitalization of $946.5 million and shares up 58.8% in a year [13] - **Tenet Healthcare Corporation (THC)**: Expected EPS growth rate of 18.3% over three to five years, with shares up 105.1% in a year [15] - **Dorman Products (DORM)**: Projected 2024 earnings growth of 35.5%, with shares increasing by 21.1% in a year [16] - **Matson, Inc. (MATX)**: Expected earnings growth of 18.5%, with shares up 37.4% in a year [17]

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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].

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. However, it's pretty easy to find cutting-edge growth stocks with the ...

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)