Net Sales

Segment Profit Margin

($ in millions)

Q1 2024

Q1 2023

Change

Q1 2024

Q1 2023

Change

Light Duty

$

359.3

$

348.1

3

%

16.1

%

6.2

%

990 bps

Heavy Duty

$

57.8

$

67.6

-15

%

0.0

%

7.9

%

-790 bps

Specialty Vehicle

$

51.6

$

51.0

1

%

13.9

%

13.9

%

0 bps

DORMAN PRODUCTS, INC.
Consolidated Statements of Operations
(in thousands, except per-share amounts)

Three Months Ended

Three Months Ended

(unaudited)

3/30/24

Pct.*

4/1/23

Pct. *

Net sales

$

468,701

100.0

$

466,738

100.0

Cost of goods sold

287,255

61.3

322,261

69.0

Gross profit

181,446

38.7

144,477

31.0

Selling, general and administrative expenses

127,008

27.1

126,363

27.1

Income from operations

54,438

11.6

18,114

3.9

Interest expense, net

10,605

2.3

11,953

2.6

Other expense (income), net

40

0.0

(357

)

(0.1

)

Income before income taxes

43,793

9.3

6,518

1.4

Provision for income taxes

10,965

2.3

835

0.2

Net income

$

32,828

7.0

$

5,683

1.2

Diluted earnings per share

$

1.05

$

0.18

Weighted average diluted shares outstanding

31,250

31,537

^{* Percentage of sales. Data may not add due to rounding.}

DORMAN PRODUCTS, INC.
Consolidated Balance Sheets
(in thousands, except share data)

(unaudited)

3/30/24

12/31/23

Assets

Current assets:

Cash and cash equivalents

$

34,433

$

36,814

Accounts receivable, less allowance for doubtful accounts of $3,513 and $3,518

486,352

526,867

Inventories

619,972

637,375

Prepaids and other current assets

22,062

32,653

Total current assets

1,162,819

1,233,709

Property, plant and equipment, net

162,439

160,113

Operating lease right-of-use assets

105,714

103,476

Goodwill

443,296

443,889

Intangible assets, net

295,880

301,556

Other assets

49,989

49,664

Total assets

$

2,220,137

$

2,292,407

Liabilities and shareholders’ equity

Current liabilities:

Accounts payable

$

131,478

$

176,664

Accrued compensation

18,206

23,971

Accrued customer rebates and returns

186,332

204,495

Revolving credit facility

81,160

92,760

Current portion of long-term debt

12,500

15,625

Other accrued liabilities

35,944

33,636

Total current liabilities

465,620

547,151

Long-term debt

467,338

467,239

Long-term operating lease liabilities

93,105

91,262

Other long-term liabilities

10,233

9,627

Deferred tax liabilities, net

9,346

8,925

Commitments and contingencies

Shareholders’ equity:

Common stock, $0.01 par value; 50,000,000 shares authorized; 31,011,870 and 31,299,770 shares issued and outstanding in 2024 and 2023, respectively

310

313

Additional paid-in capital

102,211

101,045

Retained earnings

1,075,663

1,069,435

Accumulated other comprehensive loss

(3,689

)

(2,590

)

Total shareholders’ equity

1,174,495

1,168,203

Total liabilities and shareholders' equity

$

2,220,137

$

2,292,407

Three Months Ended

(in thousands)

3/30/24

4/1/23

Cash provided by operating activities

$

51,980

$

26,210

Depreciation, amortization and accretion

$

13,851

$

13,540

Capital expenditures

$

10,755

$

10,537

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

(unaudited)

3/30/24*

4/1/23*

Net income (GAAP)

$

32,828

$

5,683

Pretax acquisition-related intangible assets amortization [1]

5,484

5,433

Pretax acquisition-related transaction and other costs [2]

483

8,549

Pretax executive transition services expense [3]

—

1,779

Pretax reduction in workforce costs [4]

4,568

—

Tax adjustment (related to above items) [5]

(2,517

)

(3,878

)

Adjusted net income (Non-GAAP)

$

40,846

$

17,566

Diluted earnings per share (GAAP)

$

1.05

$

0.18

Pretax acquisition-related intangible assets amortization [1]

0.18

0.17

Pretax acquisition-related transaction and other costs [2]

0.02

0.27

Pretax executive transition services expense [3]

—

0.06

Pretax reduction in workforce costs [4]

0.15

—

Tax adjustment (related to above items) [5]

(0.08

)

(0.12

)

Adjusted diluted earnings per share (Non-GAAP)

$

1.31

$

0.56

Weighted average diluted shares outstanding

31,250

31,537

^{* Amounts may not add due to rounding.}

^{See accompanying notes at the end of this supplemental schedule.}

Three Months Ended

Three Months Ended

(unaudited)

3/30/24

Pct.**

4/1/23

Pct.**

Gross profit (GAAP)

$

181,446

38.7

$

144,477

31.0

Pretax acquisition-related transaction and other costs [2]

8

0.0

6,829

1.5

Adjusted gross profit (Non-GAAP)

$

181,454

38.7

$

151,306

32.4

Net sales

$

468,701

$

466,738

Three Months Ended

Three Months Ended

(unaudited)

3/30/24

Pct.**

4/1/23

Pct.**

SG&A expenses (GAAP)

$

127,008

27.1

$

126,363

27.1

Pretax acquisition-related intangible assets amortization [1]

(5,484

)

(1.2

)

(5,433

)

(1.2

)

Pretax acquisition-related transaction and other costs [2]

(475

)

(0.1

)

(1,719

)

(0.4

)

Pretax executive transition services expense [3]

—

—

(1,779

)

(0.4

)

Pretax reduction in workforce costs [4]

(4,568

)

(1.0

)

—

—

Adjusted SG&A expenses (Non-GAAP)

$

116,481

24.9

$

117,432

25.2

Net sales

$

468,701

$

466,738

^{* *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 $5.5 million pretax (or $4.1 million after tax) during the three months ended March 30, 2024. Such costs were $5.4 million pretax (or $4.1 million after tax) during the three months ended April 1, 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 the three months ended March 30, 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 months ended March 30, 2024, we incurred charges included in selling, general and administrative expenses to complete and integrate acquisitions of $0.5 million pretax (or $0.4 million after tax).}

^{During the three months ended April 1, 2023, we incurred charges included in cost of goods sold for integration costs, other facility consolidation expenses and inventory fair value adjustments of $6.8 million pretax (or $5.1 million after tax). During the three months ended April 1, 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 $1.7 million pretax (or $1.3 million after tax).}

^{[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 $1.3 million after tax) during the three months ended April 1, 2023.}

^{[4] – 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. The expense was $4.6 million pretax (or $3.5 million after tax) during the three months ended March 30, 2024.}

^{[5] – Tax adjustments represent the aggregate tax effect of all non-GAAP adjustments reflected in the table above and totaled $(2.5) million during the three months ended March 30, 2024, and $(3.9) million during the three months ended April 1, 2023. Such items are estimated by applying our statutory tax rate to the pretax amount, or an actual tax amount for discrete items.}

Year Ending 12/31/2024

(unaudited)

Low End*

High End*

Diluted earnings per share (GAAP)

$

4.71

$

5.01

Pretax acquisition-related intangible assets amortization

0.70

0.70

Pretax acquisition transaction and other costs

0.05

0.05

Pretax reduction in workforce costs

0.12

0.12

Tax adjustment (related to above items)

(0.18

)

(0.18

)

Adjusted diluted earnings per share (Non-GAAP)

$

5.40

$

5.70

Weighted average diluted shares outstanding

31,500

31,500

^{*Data may not add due to rounding.}