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Dorman Products, Inc. Reports Third Quarter 2024 Results; Raises Full Year 2024 Earnings Guidance

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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.

Positive
  • 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
Negative
  • 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. $503.8M in revenue represents a 3.2% YoY growth, while adjusted EPS jumped 40% to $1.96. The gross profit margin expanded significantly from 37.5% to 40.5%, showing improved operational efficiency.

The new $500M share repurchase authorization signals management's confidence in the company's future and commitment to returning value to shareholders. The raised guidance, particularly the adjusted EPS growth of 51-53%, indicates strong momentum heading into Q4.

The Light Duty segment's performance is particularly impressive, with 5% growth and 290 basis points margin improvement, though weakness in Heavy Duty segment (-5%) warrants monitoring.

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 $44M operating cash flow generation demonstrates healthy business fundamentals, while debt reduction of $11M strengthens the balance sheet. The aggressive share buyback program could provide significant support for the stock price, representing approximately 14% of current market cap.

Highlights (All comparisons are to the prior year period unless otherwise noted):

  • Net sales of $503.8 million, up 3.2% compared to $488.2 million
  • Diluted earnings per share (“EPS”) of $1.80, up 41% compared to $1.28
  • Adjusted diluted EPS* of $1.96, up 40% 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 3.5% to 4.5%. We are also increasing and narrowing our EPS guidance and now expect diluted EPS to be in the range of $6.15 to $6.25 and adjusted diluted EPS* to be in the range of $6.85 to $6.95.

“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 $503.8 million, up 3.2% compared to net sales of $488.2 million in the third quarter of 2023.

Gross profit was $203.8 million in the third quarter of 2024, or 40.5% of net sales, compared to $183.2 million, or 37.5% of net sales, for the same quarter last year.

Selling, general and administrative (“SG&A”) expenses were $124.5 million, or 24.7% of net sales, in the third quarter of 2024 compared to $119.0 million, or 24.4% of net sales, for the same quarter last year. Adjusted SG&A expenses* were $117.9 million, or 23.4% of net sales, in the third quarter of 2024, compared to $114.1 million, or 23.4% of net sales, in the same quarter last year.

Diluted EPS was $1.80 in the third quarter of 2024, up 41% compared to diluted EPS of $1.28 in the same quarter last year. Adjusted diluted EPS* was $1.96 in the third quarter of 2024, up 40% compared to adjusted diluted EPS* of $1.40 in the same quarter last year.

During the quarter, the Company generated $44 million in cash from operating activities, invested $9 million in capital expenditures, repaid $11 million of debt and returned $27 million to shareholders through stock repurchases.

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 GuidancePrior 2024 Guidance
Net Sales Growth vs. 20233.5%4.5%3%5%
Diluted EPS$6.15$6.25$5.32$5.52
Growth vs. 202350%52%30%35%
Adjusted Diluted EPS*$6.85$6.95$6.00$6.20
Growth vs. 202351%53%32%37%
Tax Rate Estimate24%24%


Share Repurchase Program
Dorman repurchased 273,653 shares of its common stock for $26.7 million at an average share price of $97.70 during the quarter ended September 28, 2024. The Company had $134.6 million remaining under its prior share repurchase authorization.

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 $500 million of its outstanding common stock by the end of 2027. Under this program, share repurchases may be made from time to time depending on market conditions, share price, share availability and other factors at the Company’s discretion. The prior share repurchase plan and any amounts that remain available for purchases under that plan will expire on December 31, 2024.

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 $1,647 and $3,518 571,051   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, $0.01 par value; 50,000,000 shares authorized; 30,516,759 and 31,299,770 shares issued and outstanding in 2024 and 2023, respectively 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 $6.2 million pretax (or $4.6 million after tax) during the three months ended September 28, 2024 and $17.1 million pretax (or $12.9 million after tax) during the nine months ended September 28, 2024. Such costs were $5.5 million pretax (or $4.2 million after tax) during the three months ended September 30, 2023 and $16.3 million pretax (or $12.3 million after tax) during the nine months ended September 30, 2023.

[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 $0.0 million pretax (or $0.0 million after tax). During the three and nine months ended September 28, 2024, we incurred charges included in selling, general and administrative expenses to complete and integrate acquisitions of $0.4 million pretax (or $0.3 million after tax) and $1.3 million pretax (or $1.0 million after tax), respectively.

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 $0.0 million pretax (or $0.0 million after tax) and $11.8 million pretax (or $8.9 million after tax), respectively. During the three and nine months ended September 30, 2023, we incurred charges included in selling, general and administrative expenses to complete and integrate acquisitions, accretion on contingent consideration obligations and facility consolidation and start-up expenses of $0.5 million pretax (or $0.4 million after tax) and $3.1 million pretax (or $2.4 million after tax), respectively.

[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 $1.8 million pretax (or $1.4 million after tax) during the nine months ended September 30, 2023.

[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 $1.0 million pretax (or $0.8 million after tax) and $13.4 million pretax (or $10.2 million after tax) during the three and nine months ended September 30, 2023, respectively.

[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 $0.1 million pretax (or $0.1 million after tax) and $4.9 million pretax (or $3.7 million after tax), respectively.

[6] – Tax adjustments represent the aggregate tax effect of all non-GAAP adjustments reflected in the table above and totaled $(1.7) million and $(5.8) million during the three and nine months ended September 28, 2024, respectively, and $(1.2) million and $(4.9) million during the three and nine months ended September 30, 2023, respectively. Such items are estimated by applying our statutory tax rate to the pretax amount, or an actual tax amount for discrete items.


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.       



FAQ

What was Dorman Products (DORM) revenue in Q3 2024?

Dorman Products reported Q3 2024 revenue of $503.8 million, representing a 3.2% increase from $488.2 million in Q3 2023.

How much did Dorman Products (DORM) earnings per share grow in Q3 2024?

Dorman's diluted earnings per share grew 41% to $1.80 in Q3 2024, compared to $1.28 in Q3 2023.

What is Dorman Products (DORM) updated guidance for 2024?

Dorman updated its 2024 guidance to net sales growth of 3.5-4.5% and diluted EPS of $6.15-$6.25, representing 50-52% growth versus 2023.

How much did Dorman Products (DORM) spend on share repurchases in Q3 2024?

Dorman repurchased 273,653 shares for $26.7 million at an average price of $97.70 per share during Q3 2024.

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4.15B
30.52M
15.69%
82.44%
1.18%
Auto Parts
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