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 fourth quarter and full
year ended December 31, 2023.
Kevin Olsen, Dorman’s President and Chief
Executive Officer, stated, “We delivered record profits and robust
cash flow in the fourth quarter. These results were driven by the
continued improvement of our gross margin, which increased 780
basis points year-over-year. As a result, we achieved fourth
quarter adjusted diluted EPS* of $1.57, which increased 55% over
last year. Net sales declined 1% in the quarter due to a comparison
to the prior year period that included an extra week. We estimate
the extra week in the fourth quarter of 2022 contributed $19
million in net sales for that period. Excluding this impact, net
sales for the fourth quarter of 2023 would have increased 3%.
“In addition, we had another quarter of healthy cash flow, with
cash from operations of $60 million. Over the last few quarters, we
focused on reducing our debt, repaying $30 million in the quarter
and $159 million in the year. During the fourth quarter, we also
acquired $15 million of our stock under our share repurchase
program at an average price of $76.
“These results were only made possible by the
effort of our incredible group of Contributors who continue to work
tirelessly to drive innovation for both our customers and
installers.”
Fourth Quarter Financial
ResultsThe Company reported fourth quarter 2023 net sales
of $494.3 million, down 1% compared to net sales of $501.3 million
in the fourth quarter of 2022.
Gross profit was $194.2 million in the fourth
quarter of 2023, or 39.3% of net sales, compared to $157.8 million,
or 31.5% of net sales, for the same quarter last year. Adjusted
gross margin* was 39.3% in the fourth quarter of 2023 compared to
32.8% in the same quarter last year.
Selling, general and administrative (“SG&A”)
expenses were $117.0 million, or 23.7% of net sales, in the fourth
quarter of 2023 compared to $125.0 million, or 24.9% of net sales,
for the same quarter last year. Adjusted SG&A expenses* were
$118.1 million, or 23.9% of net sales, in the fourth quarter of
2023, compared to $113.4 million, or 22.6% of net sales, in the
same quarter last year.
Diluted EPS was $1.60 in the fourth quarter of
2023, up 182% compared to diluted EPS of $0.57 in the same quarter
last year. Adjusted diluted EPS* was $1.57 in the fourth quarter of
2023, up 55% compared to adjusted diluted EPS* of $1.01 in the same
quarter last year. The fourth quarter of 2022 included an extra
week, which we estimate benefitted diluted EPS and adjusted diluted
EPS* by $0.08.
Segment results were as follows:
|
Net Sales |
|
Segment Profit Margin |
($ in millions) |
Q4 2023 |
|
Q4 2022 |
|
Change |
|
Q4 2023 |
|
Q4 2022 |
|
Change |
Light Duty |
$ |
385.9 |
|
$ |
386.2 |
|
-0 |
% |
|
16.6 |
% |
|
9.4 |
% |
|
720 bps |
Heavy
Duty |
$ |
57.4 |
|
$ |
65.4 |
|
-12 |
% |
|
6.8 |
% |
|
9.6 |
% |
|
-280 bps |
Specialty
Vehicle |
$ |
51.0 |
|
$ |
49.6 |
|
3 |
% |
|
15.7 |
% |
|
17.2 |
% |
|
-150 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year Financial
ResultsThe Company reported full year 2023 net sales of
$1,929.8 million, up 11% compared to net sales of $1,733.7 million
in the prior year.
Gross profit was $685.4 million in 2023, or
35.5% of net sales, compared to $564.5 million, or 32.6% of net
sales, in the prior year. Adjusted gross margin* was 36.1% in 2023
compared to 33.2% in the prior year.
SG&A expenses were $470.7 million, or 24.4%
of net sales, in 2023 compared to $393.4 million, or 22.7% of net
sales, for the prior year. Adjusted SG&A expenses* were $464.0
million, or 24.0% of net sales, in 2023, compared to $367.7
million, or 21.2% of net sales, in the prior year.
Diluted EPS was $4.10 in 2023, up 6% compared to
diluted EPS of $3.85 in the prior year. Adjusted diluted EPS* was
$4.54 in 2023, down 5% compared to adjusted diluted EPS of $4.76 in
the prior year. The prior year included an extra week, which we
estimate benefitted diluted EPS and adjusted diluted EPS* by
$0.08.
Segment results were as follows:
|
Net Sales |
|
Segment Profit Margin |
($ in millions) |
FY 2023 |
|
FY 2022 |
|
Change |
|
FY 2023 |
|
FY 2022 |
|
Change |
Light Duty |
$ |
1,462.5 |
|
$ |
1,425.9 |
|
3 |
% |
|
12.8 |
% |
|
11.9 |
% |
|
90 bps |
Heavy
Duty |
$ |
256.9 |
|
$ |
258.2 |
|
-1 |
% |
|
5.6 |
% |
|
11.5 |
% |
|
-590 bps |
Specialty
Vehicle1 |
$ |
210.4 |
|
$ |
49.6 |
|
324 |
% |
|
15.0 |
% |
|
17.2 |
% |
|
-220 bps |
1 FY 2022 results
reflect partial period from date of acquisition on October 4,
2022. |
|
2024 GuidanceThe Company
expects 2024 full year net sales growth in the range of 3% to 5%
over 2023, diluted EPS in the range of $4.71 to $5.01, and adjusted
diluted EPS* in the range of $5.40 to $5.70. This guidance assumes
a tax rate of 24%, includes the impact of recent cost reduction
actions and excludes any potential impacts from future acquisitions
and divestitures, supply chain disruptions, significant inflation
and interest rate changes, and share repurchases.
Conference Call and WebcastThe
Company will hold a conference call for investors on Tuesday,
February 27, 2024 beginning at 8:00 a.m. Eastern time. The
conference call may be accessed by dialing (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 investors.dormanproducts.com under the
subheading “News and Events.” A replay of the webcast will be
available on the Investor section of the Company’s website after
the call.
About Dorman ProductsDorman
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 MeasuresIn 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 StatementsThis
press release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
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 a number of 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 ContactDavid
Hession, SVP and Chief Financial
Officerdhession@dormanproducts.com (215) 997-1800
Visit our website at 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. AND SUBSIDIARIES |
Consolidated Statements of Operations |
(in thousands, except per-share amounts) |
|
|
Three Months Ended |
|
Three Months Ended |
(unaudited) |
12/31/23 |
|
Pct.* |
|
12/31/22 |
|
Pct. * |
Net sales |
$ |
494,296 |
|
|
100.0 |
|
|
$ |
501,281 |
|
|
100.0 |
|
Cost of goods sold |
|
300,074 |
|
|
60.7 |
|
|
|
343,507 |
|
|
68.5 |
|
Gross profit |
|
194,222 |
|
|
39.3 |
|
|
|
157,774 |
|
|
31.5 |
|
Selling, general and
administrative expenses |
|
116,982 |
|
|
23.7 |
|
|
|
125,002 |
|
|
24.9 |
|
Income from operations |
|
77,240 |
|
|
15.6 |
|
|
|
32,772 |
|
|
6.5 |
|
Interest expense, net |
|
11,328 |
|
|
2.3 |
|
|
|
10,442 |
|
|
2.1 |
|
Other income, net |
|
(446 |
) |
|
(0.1 |
) |
|
|
(605 |
) |
|
(0.1 |
) |
Income before income taxes |
|
66,358 |
|
|
13.4 |
|
|
|
22,935 |
|
|
4.6 |
|
Provision for income
taxes |
|
16,074 |
|
|
3.3 |
|
|
|
5,099 |
|
|
1.0 |
|
Net income |
$ |
50,284 |
|
|
10.2 |
|
|
$ |
17,836 |
|
|
3.6 |
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
1.60 |
|
|
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares outstanding |
|
31,511 |
|
|
|
|
|
31,494 |
|
|
|
|
Twelve Months Ended |
|
Twelve Months Ended |
(unaudited) |
12/31/23 |
|
Pct.* |
|
12/31/22 |
|
Pct. * |
Net sales |
$ |
1,929,788 |
|
|
100.0 |
|
|
$ |
1,733,749 |
|
|
100.0 |
|
Cost of goods sold |
|
1,244,365 |
|
|
64.5 |
|
|
|
1,169,299 |
|
|
67.4 |
|
Gross profit |
|
685,423 |
|
|
35.5 |
|
|
|
564,450 |
|
|
32.6 |
|
Selling, general and
administrative expenses |
|
470,663 |
|
|
24.4 |
|
|
|
393,402 |
|
|
22.7 |
|
Income from operations |
|
214,760 |
|
|
11.1 |
|
|
|
171,048 |
|
|
9.9 |
|
Interest expense, net |
|
48,061 |
|
|
2.5 |
|
|
|
15,582 |
|
|
0.9 |
|
Other income, net |
|
(1,804 |
) |
|
(0.1 |
) |
|
|
(735 |
) |
|
(0.0 |
) |
Income before income taxes |
|
168,503 |
|
|
8.7 |
|
|
|
156,201 |
|
|
9.0 |
|
Provision for income
taxes |
|
39,244 |
|
|
2.0 |
|
|
|
34,652 |
|
|
2.0 |
|
Net income |
$ |
129,259 |
|
|
6.7 |
|
|
$ |
121,549 |
|
|
7.0 |
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
4.10 |
|
|
|
|
$ |
3.85 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares outstanding |
|
31,533 |
|
|
|
|
|
31,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Percentage of sales. Data may not add due to rounding.
|
DORMAN PRODUCTS, INC. AND SUBSIDIARIES |
Consolidated Balance Sheets |
(in thousands, except share data) |
|
(unaudited) |
12/31/23 |
|
12/31/22 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
36,814 |
|
|
$ |
46,034 |
|
Accounts receivable, less allowance for doubtful accounts of $3,518
and $1,363 |
|
526,867 |
|
|
|
427,385 |
|
Inventories |
|
637,375 |
|
|
|
755,901 |
|
Prepaids and other current assets |
|
32,653 |
|
|
|
39,800 |
|
Total current assets |
|
1,233,709 |
|
|
|
1,269,120 |
|
Property, plant and equipment,
net |
|
160,113 |
|
|
|
148,477 |
|
Operating lease right-of-use
assets |
|
103,476 |
|
|
|
109,977 |
|
Goodwill |
|
443,889 |
|
|
|
443,035 |
|
Intangible assets, net |
|
301,556 |
|
|
|
322,409 |
|
Other assets |
|
49,664 |
|
|
|
48,768 |
|
Total assets |
$ |
2,292,407 |
|
|
$ |
2,341,786 |
|
Liabilities and
shareholders' equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
176,664 |
|
|
$ |
179,819 |
|
Accrued compensation |
|
23,971 |
|
|
|
19,490 |
|
Accrued customer rebates and returns |
|
204,495 |
|
|
|
192,116 |
|
Revolving credit facility |
|
92,760 |
|
|
|
239,363 |
|
Current portion of long-term debt |
|
15,625 |
|
|
|
12,500 |
|
Other accrued liabilities |
|
33,636 |
|
|
|
35,007 |
|
Total current liabilities |
|
547,151 |
|
|
|
678,295 |
|
Long-term debt |
|
467,239 |
|
|
|
482,464 |
|
Long-term operating lease
liabilities |
|
91,262 |
|
|
|
98,221 |
|
Other long-term
liabilities |
|
9,627 |
|
|
|
28,349 |
|
Deferred tax liabilities,
net |
|
8,925 |
|
|
|
11,826 |
|
Commitments and
contingencies |
|
|
|
Shareholders'
equity: |
|
|
|
Common stock, par value $0.01; authorized 50,000,000 shares; issued
and outstanding 31,299,770 and 31,430,632 shares in 2023 and 2022,
respectively |
|
313 |
|
|
|
314 |
|
Additional paid-in capital |
|
101,045 |
|
|
|
88,750 |
|
Retained earnings |
|
1,069,435 |
|
|
|
956,870 |
|
Accumulated other comprehensive loss |
|
(2,590 |
) |
|
|
(3,303 |
) |
Total shareholders' equity |
|
1,168,203 |
|
|
|
1,042,631 |
|
Total liabilities and shareholders'
equity |
$ |
2,292,407 |
|
|
$ |
2,341,786 |
|
Selected
Cash Flow Information (unaudited): |
|
Three Months Ended |
|
Twelve Months Ended |
(in thousands) |
12/31/23 |
|
12/31/22 |
|
12/31/23 |
|
12/31/22 |
Cash provided by operating activities |
$ |
59,648 |
|
$ |
12,344 |
|
$ |
208,758 |
|
$ |
41,688 |
Depreciation, amortization and
accretion |
$ |
13,943 |
|
$ |
13,546 |
|
$ |
54,729 |
|
$ |
44,677 |
Capital expenditures |
$ |
11,032 |
|
$ |
14,103 |
|
$ |
43,968 |
|
$ |
37,883 |
|
|
|
|
|
|
|
|
|
|
|
|
DORMAN PRODUCTS, INC. AND
SUBSIDIARIES 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 |
|
Twelve Months Ended |
|
(unaudited) |
12/31/23* |
|
12/31/22* |
|
12/31/23* |
|
12/31/22* |
|
Net income (GAAP) |
$ |
50,284 |
|
|
$ |
17,836 |
|
|
$ |
129,259 |
|
|
$ |
121,549 |
|
|
Pretax acquisition-related
intangible assets amortization [1] |
|
5,481 |
|
|
|
5,082 |
|
|
|
21,817 |
|
|
|
14,070 |
|
|
Pretax acquisition-related
transaction and other costs [2] |
|
493 |
|
|
|
13,199 |
|
|
|
15,373 |
|
|
|
22,736 |
|
|
Capitalized debt issuance fee
write-off [3] |
|
— |
|
|
|
151 |
|
|
|
— |
|
|
|
151 |
|
|
Executive transition services
expense [4] |
|
— |
|
|
|
— |
|
|
|
1,801 |
|
|
|
— |
|
|
Fair value adjustment to
contingent consideration [5] |
|
(7,069 |
) |
|
|
— |
|
|
|
(20,469 |
) |
|
|
— |
|
|
Tax adjustment (related to above
items) [6] |
|
285 |
|
|
|
(4,450 |
) |
|
|
(4,606 |
) |
|
|
(8,375 |
) |
|
Adjusted net income
(Non-GAAP) |
$ |
49,474 |
|
|
$ |
31,818 |
|
|
$ |
143,175 |
|
|
$ |
150,131 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
(GAAP) |
$ |
1.60 |
|
|
$ |
0.57 |
|
|
$ |
4.10 |
|
|
$ |
3.85 |
|
|
Pretax acquisition-related
intangible assets amortization [1] |
|
0.17 |
|
|
|
0.16 |
|
|
|
0.69 |
|
|
|
0.45 |
|
|
Pretax acquisition-related
transaction and other costs [2] |
|
0.02 |
|
|
|
0.42 |
|
|
|
0.49 |
|
|
|
0.72 |
|
|
Capitalized debt issuance fee
write-off [3] |
|
— |
|
|
|
0.00 |
|
|
|
— |
|
|
|
0.00 |
|
|
Executive transition services
expense [4] |
|
— |
|
|
|
— |
|
|
|
0.06 |
|
|
|
— |
|
|
Fair value adjustment to
contingent consideration [5] |
|
(0.22 |
) |
|
|
— |
|
|
|
(0.65 |
) |
|
|
— |
|
|
Tax adjustment (related to above
items) [6] |
|
0.01 |
|
|
|
(0.14 |
) |
|
|
(0.15 |
) |
|
|
(0.27 |
) |
|
Adjusted diluted earnings per
share (Non-GAAP) |
$ |
1.57 |
|
|
$ |
1.01 |
|
|
$ |
4.54 |
|
|
$ |
4.76 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares
outstanding |
|
31,511 |
|
|
|
31,494 |
|
|
|
31,533 |
|
|
|
31,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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) |
12/31/23 |
|
Pct.** |
|
12/31/22 |
|
Pct.** |
Gross profit (GAAP) |
$ |
194,222 |
|
39.3 |
|
$ |
157,774 |
|
31.5 |
Pretax acquisition-related
transaction and other costs [2] |
|
7 |
|
0.0 |
|
|
6,719 |
|
1.3 |
Adjusted gross profit
(Non-GAAP) |
$ |
194,229 |
|
39.3 |
|
$ |
164,493 |
|
32.8 |
|
|
|
|
|
|
|
|
Net sales |
$ |
494,296 |
|
|
|
$ |
501,281 |
|
|
|
Twelve Months Ended |
|
Twelve Months Ended |
(unaudited) |
12/31/23 |
|
Pct.** |
|
12/31/22 |
|
Pct.** |
Gross profit (GAAP) |
$ |
685,423 |
|
35.5 |
|
$ |
564,450 |
|
32.6 |
Pretax acquisition-related
transaction and other costs [2] |
|
11,813 |
|
0.6 |
|
|
11,070 |
|
0.6 |
Adjusted gross profit
(Non-GAAP) |
$ |
697,236 |
|
36.1 |
|
$ |
575,520 |
|
33.2 |
|
|
|
|
|
|
|
|
Net sales |
$ |
1,929,788 |
|
|
|
$ |
1,733,749 |
|
|
Adjusted
SG&A Expenses: |
|
|
Three Months Ended |
|
Three Months Ended |
(unaudited) |
12/31/23 |
|
Pct.** |
|
12/31/22 |
|
Pct.** |
SG&A expenses (GAAP) |
$ |
116,982 |
|
|
23.7 |
|
|
$ |
125,002 |
|
|
24.9 |
|
Pretax acquisition-related
intangible assets amortization [1] |
|
(5,481 |
) |
|
(1.1 |
) |
|
|
(5,082 |
) |
|
(1.0 |
) |
Pretax acquisition-related
transaction and other costs [2] |
|
(486 |
) |
|
(0.1 |
) |
|
|
(6,480 |
) |
|
(1.3 |
) |
Fair value adjustment to
contingent consideration [5] |
|
7,069 |
|
|
1.4 |
|
|
|
— |
|
|
— |
|
Adjusted SG&A expenses
(Non-GAAP) |
$ |
118,084 |
|
|
23.9 |
|
|
$ |
113,440 |
|
|
22.6 |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
494,296 |
|
|
|
|
$ |
501,281 |
|
|
|
|
Twelve Months Ended |
|
Twelve Months Ended |
(unaudited) |
12/31/23 |
|
Pct.** |
|
12/31/22 |
|
Pct.** |
SG&A expenses (GAAP) |
$ |
470,663 |
|
|
24.4 |
|
|
$ |
393,402 |
|
|
22.7 |
|
Pretax acquisition-related
intangible assets amortization [1] |
|
(21,817 |
) |
|
(1.1 |
) |
|
|
(14,070 |
) |
|
(0.8 |
) |
Pretax acquisition-related
transaction and other costs [2] |
|
(3,560 |
) |
|
(0.2 |
) |
|
|
(11,666 |
) |
|
(0.7 |
) |
Executive transition services
expense [4] |
|
(1,801 |
) |
|
(0.1 |
) |
|
|
— |
|
|
— |
|
Fair value adjustment to
contingent consideration [5] |
|
20,469 |
|
|
1.1 |
|
|
|
— |
|
|
— |
|
Adjusted SG&A expenses
(Non-GAAP) |
$ |
463,954 |
|
|
24.0 |
|
|
$ |
367,666 |
|
|
21.2 |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
1,929,788 |
|
|
|
|
$ |
1,733,749 |
|
|
|
Adjusted
Other Income, Net: |
|
|
Three Months Ended |
|
Three Months Ended |
(unaudited) |
12/31/23 |
|
Pct.** |
|
12/31/22 |
|
Pct.** |
Other income, net (GAAP) |
$ |
446 |
|
0.1 |
|
$ |
605 |
|
0.1 |
Capitalized debt issuance fee
write-off [3] |
|
— |
|
— |
|
|
151 |
|
0.0 |
Adjusted other income, net
(Non-GAAP) |
$ |
446 |
|
0.1 |
|
$ |
756 |
|
0.2 |
|
|
|
|
|
|
|
|
Net sales |
$ |
494,296 |
|
|
|
$ |
501,281 |
|
|
|
Twelve Months Ended |
|
Twelve Months Ended |
(unaudited) |
12/31/23 |
|
Pct.** |
|
12/31/22 |
|
Pct.** |
Other income, net (GAAP) |
$ |
1,804 |
|
0.1 |
|
$ |
735 |
|
0.0 |
Capitalized debt issuance fee
write-off [3] |
|
— |
|
— |
|
|
151 |
|
0.0 |
Adjusted other income, net
(Non-GAAP) |
$ |
1,804 |
|
0.1 |
|
$ |
886 |
|
0.1 |
|
|
|
|
|
|
|
|
Net sales |
$ |
1,929,788 |
|
|
|
$ |
1,733,749 |
|
|
|
|
|
|
|
|
|
|
|
|
* *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
December 31, 2023 and $21.8 million pretax (or $16.4 million
after tax) during the twelve months ended December 31, 2023
and were included in selling, general and administrative expenses.
Such costs were $5.1 million pretax (or $3.8 million after tax)
during the three months ended December 31, 2022 and $14.1
million pretax (or $10.7 million after tax) during the twelve
months ended December 31, 2022 and were included in selling,
general and administrative expenses.
[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 and twelve months ended
December 31, 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 twelve
months ended December 31, 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 $3.6 million
pretax (or $2.8 million after tax), respectively.
During the three and twelve months ended
December 31, 2022, we incurred charges included in cost of
goods sold for integration costs, other facility consolidation
expenses and inventory fair value adjustments of $6.7 million
pretax (or $5.1 million after tax) and $11.1 million pretax (or
$8.4 million after tax), respectively. During the three and twelve
months ended December 31, 2022, we incurred charges included
in selling, general and administrative expenses to complete and
integrate acquisitions and facility consolidation and start-up
expenses of $6.5 million pretax (or $4.9 million after tax) and
$11.7 million pretax (or $9.4 million after tax), respectively.
[3] – Capitalized debt issuance fee write-off
totaled $0.2 million (or $0.1 million after tax) during the three
and twelve months ended December 31, 2022.
[4] – 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 twelve months ended December 31,
2023.
[5] – 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 $7.1
million pretax (or $5.3 million after tax) and $20.5 million pretax
(or $15.5 million after tax) during the three and twelve months
ended December 31, 2023, respectively.
[6] – Tax adjustments represent the aggregate
tax effect of all non-GAAP adjustments reflected in the table
above, and totaled $0.3 million and $(4.6) million during the three
and twelve months ended December 31, 2023, respectively, and
$(4.5) million and $(8.4) million during the three and twelve
months ended December 31, 2022, 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 provided the following guidance ranges related to
their fiscal 2024 outlook:
|
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.
Dorman Products (NASDAQ:DORM)
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Dorman Products (NASDAQ:DORM)
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