Dorman(DORM) - 2024 Q4 - Annual Results

Financial Performance - Total net sales for Q4 2024 were $533.8 million, an increase of 8.0% compared to$ 494.3 million in Q4 2023[5]. - Diluted EPS for Q4 2024 was $1.77, up 11% from$ 1.60 in the same quarter last year; adjusted diluted EPS was $2.20, up 40% from$ 1.57[9]. - For the full year 2024, net sales reached $2.009 billion, a 4.1% increase from$ 1.930 billion in 2023[10]. - Adjusted net income for the twelve months ended December 31, 2024, was $220,697 thousand, a significant increase of 54.3% from$ 143,175 thousand in the previous year[27]. - The company reported a diluted earnings per share (GAAP) of $6.14 for the twelve months ended December 31, 2024, compared to$ 4.10 in the previous year, reflecting a 49.4% increase[27]. Profitability Metrics - Gross profit for Q4 2024 was $221.7 million, representing 41.5% of net sales, compared to 39.3% in Q4 2023[6]. - Adjusted gross margin for the full year 2024 was 40.2%, up from 36.1% in the prior year[10]. - Gross profit margin improved to 40.2% for the twelve months ended December 31, 2024, compared to 36.1% for the same period in 2023[29]. - SG&A expenses for Q4 2024 were$ 135.0 million, or 25.3% of net sales, compared to $117.0 million, or 23.7% in Q4 2023[7]. - SG&A expenses as a percentage of net sales decreased to 24.1% for the twelve months ended December 31, 2024, down from 24.4% in 2023[32]. Cash Flow and Capital Management - The company generated$ 231 million in cash from operating activities for the full year, allowing for a $94 million reduction in debt and$ 78 million in stock repurchases[4]. - Cash provided by operating activities for the twelve months ended December 31, 2024, was $231,047 thousand, an increase of 10.7% compared to$ 208,758 thousand for the same period in 2023[25]. - Capital expenditures for the twelve months ended December 31, 2024, were $39,421 thousand, a decrease of 10.3% from$ 43,968 thousand in 2023[25]. Segment Performance - Light Duty segment net sales for Q4 2024 were $427.4 million, up 11% from$ 385.9 million in Q4 2023, with a profit margin increase of 350 basis points[9]. - Heavy Duty segment net sales decreased by 8% to $52.9 million in Q4 2024, with a profit margin decline of 470 basis points[9]. Guidance and Projections - For 2025, the company expects net sales growth of 3% to 5% and diluted EPS in the range of$ 7.00 to $7.30[5][14]. - The company provided guidance for fiscal 2025 with diluted earnings per share (GAAP) ranging from$ 7.00 to $7.30[41]. - Adjusted diluted earnings per share (Non-GAAP) is projected to be between$ 7.55 and $7.85 for fiscal 2025[41]. - Weighted average diluted shares outstanding is estimated at 30,800 for fiscal 2025[41]. Balance Sheet Highlights - Total assets increased to$ 2,424,521 thousand as of December 31, 2024, up from $2,292,407 thousand a year earlier, representing a growth of 5.8%[24]. - Total current liabilities increased slightly to$ 563,802 thousand as of December 31, 2024, from $547,151 thousand a year earlier, marking a 3.0% rise[24]. - The company’s retained earnings increased to$ 1,180,862 thousand as of December 31, 2024, up from $1,069,435 thousand in the previous year, indicating a growth of 10.4%[24]. Other Financial Adjustments - Fair value adjustments to contingent consideration totaled$ 7.1 million pretax and $20.5 million pretax for the three and twelve months ended December 31, 2023, respectively[4]. - Workforce reduction costs amounted to$ 5.0 million pretax for the twelve months ended December 31, 2024[5]. - Discrete tax adjustment for state tax matters totaled $8.1 million during the three and twelve months ended December 31, 2024[6]. - Tax adjustments totaled$ (1.7) million and $(7.5) million during the three and twelve months ended December 31, 2024, respectively[7].