Dorman Products, Inc. Reports Third Quarter 2024 Results; Raises Full Year 2024 Earnings Guidance
Dorman Products reported strong Q3 2024 results with net sales of $503.8 million, up 3.2% year-over-year. Diluted EPS increased 41% to $1.80, while adjusted diluted EPS rose 40% to $1.96. The company's Light Duty segment showed 5% growth, while Heavy Duty declined 5% and Specialty Vehicle remained flat. Based on strong performance, Dorman updated its full-year 2024 guidance, now expecting net sales growth of 3.5% to 4.5% and diluted EPS of $6.15-$6.25. The company repurchased $27 million in shares and announced a new $500 million share repurchase authorization.
Dorman Products ha riportato risultati solidi per il terzo trimestre del 2024, con vendite nette di 503,8 milioni di dollari, in crescita del 3,2% rispetto all'anno precedente. EPS diluito è aumentato del 41% a 1,80 dollari, mentre EPS diluito rettificato è salito del 40% a 1,96 dollari. Il segmento Light Duty ha mostrato una crescita del 5%, mentre il segmento Heavy Duty è diminuito del 5% e i Veicoli Speciali sono rimasti stabili. Sulla base delle prestazioni solidi, Dorman ha aggiornato la guida per l'intero anno 2024, ora prevedendo una crescita delle vendite nette compresa tra il 3,5% e il 4,5% e un EPS diluito di 6,15-6,25 dollari. L'azienda ha riacquistato azioni per 27 milioni di dollari e ha annunciato una nuova autorizzazione al riacquisto di azioni per 500 milioni di dollari.
Dorman Products reportó resultados sólidos en el tercer trimestre de 2024, con ventas netas de 503,8 millones de dólares, lo que representa un aumento del 3,2% en comparación con el año anterior. EPS diluido aumentó un 41% a 1,80 dólares, mientras que EPS diluido ajustado subió un 40% a 1,96 dólares. El segmento de Light Duty mostró un crecimiento del 5%, mientras que el segmento de Heavy Duty disminuyó un 5% y el vehículo especial se mantuvo estable. Basándose en un rendimiento sólido, Dorman actualizó su guía para el año completo 2024, esperando ahora un crecimiento de ventas netas del 3,5% al 4,5% y un EPS diluido de 6,15 a 6,25 dólares. La compañía recompró 27 millones de dólares en acciones y anunció una nueva autorización de recompra de acciones por 500 millones de dólares.
Dorman Products는 2024년 3분기 강력한 실적을 보고했으며, 순매출은 5억 3천만 달러로, 전년 대비 3.2% 증가했습니다. 희석 주당 순이익은 41% 상승한 1.80달러를 기록했으며, 조정된 희석 주당 순이익은 40% 상승한 1.96달러로 나타났습니다. 회사의 Light Duty 부문은 5% 성장한 반면, Heavy Duty 부문은 5% 감소했으며, Specialty Vehicle 부문은 변동이 없었습니다. Dorman은 강력한 성과를 바탕으로 2024년 전체 연도 가이드를 업데이트했으며, 이제 순매출 성장률을 3.5%에서 4.5%로 예상하고, 희석 주당 순이익을 6.15달러에서 6.25달러로 전망하고 있습니다. 회사는 2천7백만 달러의 자사주 매입을 진행했으며, 5억 달러의 새로운 자사주 매입 권한을 발표했습니다.
Dorman Products a annoncé de solides résultats pour le troisième trimestre 2024, avec des ventes nettes de 503,8 millions de dollars, en hausse de 3,2% par rapport à l'année précédente. EPS dilué a augmenté de 41% pour atteindre 1,80 dollar, tandis que EPS dilué ajusté a grimpé de 40% à 1,96 dollar. Le segment Light Duty a montré une croissance de 5%, tandis que le segment Heavy Duty a diminué de 5% et que le véhicule spécial est resté stable. Sur la base de cette performance solide, Dorman a mis à jour ses prévisions pour l'année 2024, s'attendant désormais à une croissance des ventes nettes de 3,5% à 4,5% et à un EPS dilué de 6,15 à 6,25 dollars. L'entreprise a racheté pour 27 millions de dollars d'actions et a annoncé une nouvelle autorisation de rachat d'actions d'un montant de 500 millions de dollars.
Dorman Products meldete für das dritte Quartal 2024 starke Ergebnisse mit Nettoverkäufen von 503,8 Millionen Dollar, was einem Anstieg von 3,2% im Vergleich zum Vorjahr entspricht. Verdünntes EPS erhöhte sich um 41% auf 1,80 Dollar, während bereinigtes verdünntes EPS um 40% auf 1,96 Dollar stieg. Der Light Duty-Segment verzeichnete ein Wachstum von 5%, während der Heavy Duty-Segment um 5% zurückging und der Specialty Vehicle-Segment stabil blieb. Basierend auf der starken Leistung aktualisierte Dorman die Prognose für das gesamte Jahr 2024 und erwartet nun ein Wachstum der Nettoverkäufe von 3,5% bis 4,5% und ein verdünntes EPS von 6,15 bis 6,25 Dollar. Das Unternehmen hat Aktien im Wert von 27 Millionen Dollar zurückgekauft und eine neue Genehmigung für den Rückkauf von Aktien in Höhe von 500 Millionen Dollar bekannt gegeben.
- Net sales increased 3.2% to $503.8 million
- Diluted EPS grew 41% to $1.80
- Gross profit margin improved to 40.5% from 37.5%
- Light Duty segment grew 5% with 19% profit margin
- Raised full-year 2024 EPS guidance to $6.15-$6.25
- Generated $44 million in operating cash flow
- Heavy Duty segment sales declined 5%
- Specialty Vehicle segment sales remained flat
- SG&A expenses increased to 24.7% of net sales from 24.4%
Insights
A strong quarter for Dorman Products with notable financial improvements.
The new
The Light Duty segment's performance is particularly impressive, with
The aftermarket auto parts sector is showing resilience, with Dorman's results reflecting strong underlying demand. The company's innovation strategy is paying off, particularly in the Light Duty segment. The margin expansion across all segments suggests successful pricing strategies and operational improvements despite industry headwinds.
The
Highlights (All comparisons are to the prior year period unless otherwise noted):
- Net sales of
$503.8 million, up3.2% compared to$488.2 million - Diluted earnings per share (“EPS”) of
$1.80 , up41% compared to$1.28 - Adjusted diluted EPS* of
$1.96 , up40% compared to$1.40 - Repurchased
$27 million of its shares and announced a new share repurchase authorization for up to$500 million - Updates its full-year guidance for 2024
COLMAR, Pa., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Dorman Products, Inc. (the “Company” or “Dorman”) (NASDAQ: DORM), a leading supplier in the motor vehicle aftermarket industry, today announced its financial results for the third quarter ended September 28, 2024.
Kevin Olsen, Dorman’s President and Chief Executive Officer, stated, “We delivered strong performance in the third quarter with earnings growth exceeding our expectations. Light Duty drove mid-single digit net sales growth, as our innovation strategy continues to bolster Dorman’s leading portfolio of aftermarket solutions. While net sales were down in our Heavy Duty segment and flat in our Specialty Vehicle segment, both delivered solid topline results when considering the headwinds that persisted in each sector throughout the quarter. Each of our businesses continues to execute exceptionally well against our operational excellence initiatives. These efforts are enabling streamlined workflows, quicker speeds to market, and increased profitability across the enterprise.
“With three quarters of strong financial results, coupled with our positive outlook and visibility through the balance of the year, we are updating our full-year net sales and EPS growth guidance. For 2024, we now anticipate net sales growth to be in the range of
“We are pleased with our results through the third quarter and look forward to delivering solid sales and earnings growth for the year. Our performance is a testament to the hard work and dedication of our Contributors, the strength of our customer relationships, and our unwavering commitment to driving innovation for our end users.”
Third Quarter Financial Results
The Company reported third-quarter 2024 net sales of
Gross profit was
Selling, general and administrative (“SG&A”) expenses were
Diluted EPS was
During the quarter, the Company generated
Segment results were as follows:
Net Sales | Segment Profit Margin | |||||||||||||||
($ in millions) | Q3 2024 | Q3 2023 | Change | Q3 2024 | Q3 2023 | Change | ||||||||||
Light Duty | $ | 393.6 | $ | 374.7 | 5 | % | 19.0 | % | 16.1 | % | 290 bps | |||||
Heavy Duty | 59.6 | 62.8 | -5 | % | 4.5 | % | 3.0 | % | 150 bps | |||||||
Specialty Vehicle | 50.6 | 50.6 | 0 | % | 17.0 | % | 13.5 | % | 350 bps |
2024 Guidance
The Company updated its full-year 2024 guidance, detailed in the table below, which excludes any potential impacts from future acquisitions and divestitures, supply chain disruptions, significant inflation, interest rate changes and additional share repurchases.
Updated 2024 Guidance | Prior 2024 Guidance | |||
Net Sales Growth vs. 2023 | ||||
Diluted EPS | ||||
Growth vs. 2023 | ||||
Adjusted Diluted EPS* | ||||
Growth vs. 2023 | ||||
Tax Rate Estimate |
Share Repurchase Program
Dorman repurchased 273,653 shares of its common stock for
In October, the Company’s Board of Directors authorized a new share repurchase program, effective January 1, 2025, authorizing the Company to repurchase up to
Conference Call and Webcast
The Company will hold a conference call and webcast for investors on Friday, November 1, 2024 beginning at 8:00 a.m. Eastern time. The conference call can be accessed by telephone at (888) 440-4182 within the U.S. or +1 (646) 960-0653 outside the U.S. When prompted, enter the conference ID number 1698878. A live audio webcast along with the accompanying presentation materials can be accessed on the Company’s website at Dorman Products, Inc. - Events. A replay of the session will be available on the Investor section of the Company’s website after the call.
About Dorman Products
Dorman gives professionals, enthusiasts and owners greater freedom to fix motor vehicles. For over 100 years, we have been driving new solutions, releasing tens of thousands of aftermarket replacement products engineered to save time and money and increase convenience and reliability.
Founded and headquartered in the United States, we are a pioneering global organization offering an always-evolving catalog of products, covering cars, trucks and specialty vehicles, from chassis to body, from underhood to undercarriage, and from hardware to complex electronics.
*Non-GAAP Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains Non-GAAP financial measures. The reasons why we believe these measures provide useful information to investors and a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these Non-GAAP measures are included in the supplemental schedules attached.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “probably,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “views,” “estimates” and similar expressions are used to identify these forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date such statements were made. Such forward-looking statements are based on current expectations that involve known and unknown risks, uncertainties and other factors (many of which are outside of our control). Such risks, uncertainties and other factors relate to, among other things: competition in and the evolution of the motor vehicle aftermarket industry; changes in our relationships with, or the loss of, any customers or suppliers; our ability to develop, market and sell new and existing products; our ability to anticipate and meet customer demand; our ability to purchase necessary materials from our suppliers and the impacts of any related logistics constraints; widespread public health pandemics; political and regulatory matters, such as changes in trade policy, the imposition of tariffs and climate regulation; our ability to protect our information security systems and defend against cyberattacks; our ability to protect our intellectual property and defend against any claims of infringement; and financial and economic factors, such as our level of indebtedness, fluctuations in interest rates and inflation. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company is under no obligation to, and expressly disclaims any such obligation to, update any of the information in this document, including but not limited to any situation where any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise.
Investor Relations Contact
Alex Whitelam, VP, Investor Relations & Risk Management
awhitelam@dormanproducts.com
(445) 448-9522
Visit our website at www.dormanproducts.com. The Investor Relations section of the website contains a significant amount of information about Dorman, including financial and other information for investors. Dorman encourages investors to visit its website periodically to view new and updated information.
DORMAN PRODUCTS, INC. Consolidated Statements of Operations (in thousands, except per-share amounts) | |||||||||
Three Months Ended | Three Months Ended | ||||||||
(unaudited) | 9/28/24 | Pct.* | 9/30/23 | Pct. * | |||||
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 | |||||
Other income, net | 1,615 | 0.3 | 605 | 0.1 | |||||
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 | |||||
Weighted average diluted shares outstanding | 30,739 | 31,555 | |||||||
Nine Months Ended | Nine Months Ended | ||||||||
(unaudited) | 9/28/24 | Pct.* | 9/30/23 | Pct. * | |||||
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 | |||||
Other income, net | 1,711 | 0.1 | 1,358 | 0.1 | |||||
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 | |||||
Weighted average diluted shares outstanding | 31,019 | 31,540 | |||||||
* Percentage of sales. Data may not add due to rounding. |
DORMAN PRODUCTS, INC. Consolidated Balance Sheets (in thousands, except share data) | |||||||
(unaudited) | 9/28/24 | 12/31/23 | |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 45,127 | $ | 36,814 | |||
Accounts receivable, less allowance for doubtful accounts of | 571,051 | 526,867 | |||||
Inventories | 665,237 | 637,375 | |||||
Prepaids and other current assets | 34,661 | 32,653 | |||||
Total current assets | 1,316,076 | 1,233,709 | |||||
Property, plant and equipment, net | 165,734 | 160,113 | |||||
Operating lease right-of-use assets | 107,176 | 103,476 | |||||
Goodwill | 443,340 | 443,889 | |||||
Intangible assets, net | 284,138 | 301,556 | |||||
Other assets | 47,633 | 49,664 | |||||
Total assets | $ | 2,364,097 | $ | 2,292,407 | |||
Liabilities and shareholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 205,905 | $ | 176,664 | |||
Accrued compensation | 27,003 | 23,971 | |||||
Accrued customer rebates and returns | 208,274 | 204,495 | |||||
Revolving credit facility | 61,760 | 92,760 | |||||
Current portion of long-term debt | 18,750 | 15,625 | |||||
Other accrued liabilities | 39,631 | 33,636 | |||||
Total current liabilities | 561,323 | 547,151 | |||||
Long-term debt | 455,038 | 467,239 | |||||
Long-term operating lease liabilities | 94,294 | 91,262 | |||||
Other long-term liabilities | 9,203 | 9,627 | |||||
Deferred tax liabilities, net | 9,637 | 8,925 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity: | |||||||
Common stock, | 305 | 313 | |||||
Additional paid-in capital | 110,595 | 101,045 | |||||
Retained earnings | 1,127,259 | 1,069,435 | |||||
Accumulated other comprehensive loss | (3,557 | ) | (2,590 | ) | |||
Total shareholders’ equity | 1,234,602 | 1,168,203 | |||||
Total liabilities and shareholders' equity | $ | 2,364,097 | $ | 2,292,407 |
Selected Cash Flow Information (unaudited): | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
(in thousands) | 9/28/24 | 9/30/23 | 9/28/24 | 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 |
DORMAN PRODUCTS, INC. Non-GAAP Financial Measures (in thousands, except per-share amounts) | |||||||||||||||
Our financial results include certain financial measures not derived in accordance with generally accepted accounting principles (GAAP). Non-GAAP financial measures should not be used as a substitute for GAAP measures, or considered in isolation, for the purpose of analyzing our operating performance, financial position or cash flows. Additionally, these non-GAAP measures may not be comparable to similarly titled measures reported by other companies. However, we have presented these non-GAAP financial measures because we believe this presentation, when reconciled to the corresponding GAAP measure, provides useful information to investors by offering additional ways of viewing our results, profitability trends, and underlying growth relative to prior and future periods and to our peers. Management uses these non-GAAP financial measures in making financial, operating, and planning decisions and in evaluating our performance. Non-GAAP financial measures may reflect adjustments for charges such as fair value adjustments, amortization, transaction costs, severance, accelerated depreciation, and other similar expenses related to acquisitions as well as other items that we believe are not related to our ongoing performance. | |||||||||||||||
Adjusted Net Income: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
(unaudited) | 9/28/24* | 9/30/23* | 9/28/24* | 9/30/23* | |||||||||||
Net income (GAAP) | $ | 55,253 | $ | 40,522 | $ | 135,491 | $ | 78,975 | |||||||
Pretax acquisition-related intangible assets amortization [1] | 6,173 | 5,485 | 17,138 | 16,336 | |||||||||||
Pretax acquisition-related transaction and other costs [2] | 396 | 465 | 1,327 | 14,880 | |||||||||||
Pretax executive transition services expense [3] | — | — | — | 1,801 | |||||||||||
Pretax fair value adjustment to contingent consideration [4] | — | (1,000 | ) | — | (13,400 | ) | |||||||||
Pretax reduction in workforce costs [5] | 76 | — | 4,926 | — | |||||||||||
Tax adjustment (related to above items) [6] | (1,654 | ) | (1,214 | ) | (5,815 | ) | (4,891 | ) | |||||||
Adjusted net income (Non-GAAP) | $ | 60,244 | $ | 44,258 | $ | 153,067 | $ | 93,701 | |||||||
Diluted earnings per share (GAAP) | $ | 1.80 | $ | 1.28 | $ | 4.37 | $ | 2.50 | |||||||
Pretax acquisition-related intangible assets amortization [1] | 0.20 | 0.17 | 0.55 | 0.52 | |||||||||||
Pretax acquisition-related transaction and other costs [2] | 0.01 | 0.01 | 0.04 | 0.47 | |||||||||||
Pretax executive transition services expense [3] | — | — | — | 0.06 | |||||||||||
Pretax fair value adjustment to contingent consideration [4] | — | (0.03 | ) | — | (0.42 | ) | |||||||||
Pretax reduction in workforce costs [5] | 0.00 | — | 0.16 | — | |||||||||||
Tax adjustment (related to above items) [6] | (0.05 | ) | (0.04 | ) | (0.19 | ) | (0.16 | ) | |||||||
Adjusted diluted earnings per share (Non-GAAP) | $ | 1.96 | $ | 1.40 | $ | 4.93 | $ | 2.97 | |||||||
Weighted average diluted shares outstanding | 30,739 | 31,555 | 31,019 | 31,540 | |||||||||||
* Amounts may not add due to rounding. See accompanying notes at the end of this supplemental schedule. |
Adjusted Gross Profit: | |||||||||
Three Months Ended | Three Months Ended | ||||||||
(unaudited) | 9/28/24 | Pct.** | 9/30/23 | Pct.** | |||||
Gross profit (GAAP) | $ | 203,803 | 40.5 | $ | 183,218 | 37.5 | |||
Pretax acquisition-related transaction and other costs [2] | 1 | 0.0 | 6 | 0.0 | |||||
Adjusted gross profit (Non-GAAP) | $ | 203,804 | 40.5 | $ | 183,224 | 37.5 | |||
Net sales | $ | 503,773 | $ | 488,186 | |||||
Nine Months Ended | Nine Months Ended | ||||||||
(unaudited) | 9/28/24 | Pct.** | 9/30/23 | Pct.** | |||||
Gross profit (GAAP) | $ | 584,650 | 39.6 | $ | 491,201 | 34.2 | |||
Pretax acquisition-related transaction and other costs [2] | 11 | 0.0 | 11,806 | 0.8 | |||||
Adjusted gross profit (Non-GAAP) | $ | 584,661 | 39.6 | $ | 503,007 | 35.0 | |||
Net sales | $ | 1,475,425 | $ | 1,435,492 |
Adjusted SG&A Expenses: | |||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||
(unaudited) | 9/28/24 | Pct.** | 9/30/23 | Pct.** | |||||||||
SG&A expenses (GAAP) | $ | 124,532 | 24.7 | $ | 119,010 | 24.4 | |||||||
Pretax acquisition-related intangible assets amortization [1] | (6,173 | ) | (1.2 | ) | (5,485 | ) | (1.1 | ) | |||||
Pretax acquisition-related transaction and other costs [2] | (395 | ) | (0.1 | ) | (459 | ) | (0.1 | ) | |||||
Pretax fair value adjustment to contingent consideration [4] | — | — | 1,000 | 0.2 | |||||||||
Pretax reduction in workforce costs [5] | (76 | ) | (0.0 | ) | — | — | |||||||
Adjusted SG&A expenses (Non-GAAP) | $ | 117,888 | 23.4 | $ | 114,066 | 23.4 | |||||||
Net sales | $ | 503,773 | $ | 488,186 | |||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||
(unaudited) | 9/28/24 | Pct.** | 9/30/23 | Pct.** | |||||||||
SG&A expenses (GAAP) | $ | 378,489 | 25.7 | $ | 353,681 | 24.6 | |||||||
Pretax acquisition-related intangible assets amortization [1] | (17,138 | ) | (1.2 | ) | (16,336 | ) | (1.1 | ) | |||||
Pretax acquisition-related transaction and other costs [2] | (1,316 | ) | (0.1 | ) | (3,074 | ) | (0.2 | ) | |||||
Executive transition services expense [3] | — | — | (1,801 | ) | (0.1 | ) | |||||||
Pretax fair value adjustment to contingent consideration [4] | — | — | 13,400 | 0.9 | |||||||||
Pretax reduction in workforce costs [5] | (4,926 | ) | (0.3 | ) | — | — | |||||||
Adjusted SG&A expenses (Non-GAAP) | $ | 355,109 | 24.1 | $ | 345,870 | 24.1 | |||||||
Net sales | $ | 1,475,425 | $ | 1,435,492 | |||||||||
* *Percentage of sales. Data may not add due to rounding. | |||||||||||||
[1] – Pretax acquisition-related intangible asset amortization results from allocating the purchase price of acquisitions to the acquired tangible and intangible assets of the acquired business and recognizing the cost of the intangible asset over the period of benefit. Such costs were [2] – Pretax acquisition-related transaction and other costs include costs incurred to complete and integrate acquisitions, accretion on contingent consideration obligations, inventory fair value adjustments and facility consolidation and start-up expenses. During both the three and nine months ended September 28, 2024, we incurred charges included in cost of goods sold for integration costs of During the three and nine months ended September 30, 2023, we incurred charges included in cost of goods sold for integration costs, other facility consolidation expenses and inventory fair value adjustments of [3] – Pretax executive transition service expenses represents an accrual for costs required to be paid under an agreement in connection with the planned transition of our Executive Chairman to Non-Executive Chairman, and other professional services rendered in connection with the execution of the agreement. The expense was [4] – Fair value adjustments to contingent consideration represents the change to our estimates of ultimate earnout payment amounts for a previously completed acquisition based on projections of financial performance compared to the target amounts defined in the purchase agreement and totaled [5] – Pretax reduction in workforce costs represents costs incurred in connection with our planned workforce reduction including severance and other payroll-related costs insurance continuation costs, modifications of share-based compensation awards, and other costs directly attributable to the action. During the three and nine months ended September 28, 2024, the expense was [6] – Tax adjustments represent the aggregate tax effect of all non-GAAP adjustments reflected in the table above and totaled |
2024 Guidance:
The Company provides the following updated guidance ranges related to their fiscal 2024 outlook:
Year Ending 12/31/2024 | |||||||
(unaudited) | 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 | |||
Weighted average diluted shares outstanding | 31,000 | 31,000 | |||||
*Data may not add due to rounding. |
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