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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): May 7, 2024
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DORMAN PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania000-1891423-2078856
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
3400 East Walnut Street, Colmar, Pennsylvania 18915
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code:  (215) 997-1800
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 Par ValueDORMThe NASDAQ Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o


Item 2.02    Results of Operation and Financial Condition
On May 7, 2024, Dorman Products, Inc. (the “Company”) issued a press release announcing its operating results for the first fiscal quarter ended March 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. The Company will hold a conference call and webcast on May 7, 2024 (see information in the press release attached hereto as Exhibit 99.1 under “Conference Call and Webcast”).
Item 9.01    Financial Statements and Exhibits.  
(d)    Exhibits
Exhibit NumberDescription
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DORMAN PRODUCTS, INC.
Date:
May 7, 2024By:/s/ David M. Hession
Name:David M. Hession
Title:
Senior Vice President,
Chief Financial Officer and Treasurer

Exhibit 99.1
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Dorman Products, Inc. Reports First Quarter 2024 Results
Highlights (All comparisons are to the prior year period unless otherwise noted):
•Net sales of $468.7 million, up 0.4% compared to $466.7 million
•Diluted earnings per share (“EPS”) of $1.05, up 483% compared to $0.18
•Adjusted diluted EPS* of $1.31, up 134% compared to $0.56
•Generated $52 million of cash from operating activities; repaid $15 million of debt and repurchased $27 million of its shares
•The Company confirms its full-year 2024 guidance

COLMAR, PA (May 7, 2024) – 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 first quarter ended March 30, 2024.

Kevin Olsen, Dorman’s President and Chief Executive Officer, stated, “We’re pleased with our first quarter results and the strong start to the year driven by the hard work and dedication of our Contributors. Our focus on delivering new and innovative products continues to be a winning formula for our customers and our shareholders. Through our strong financial results, we generated $52 million of cash from operating activities, a 98% improvement year-over-year, which we used to repay $15 million of debt and return $27 million to shareholders through the repurchase of our stock.

“Our results were in line with our expectations, as Light Duty industry fundamentals remained strong while the Heavy Duty and Specialty Vehicle industries experienced softness. I’m confident that our ongoing initiatives and our team of dedicated Contributors will enable us to navigate industry challenges and continue to drive success.”

First Quarter Financial Results
The Company reported first quarter 2024 net sales of $468.7 million, up slightly compared to net sales of $466.7 million in the first quarter of 2023.

Gross profit was $181.4 million in the first quarter of 2024, or 38.7% of net sales, compared to $144.5 million, or 31.0% of net sales, for the same quarter last year. Adjusted gross margin* was 38.7% in the first quarter of 2024 compared to 32.4% in the same quarter last year.

Selling, general and administrative (“SG&A”) expenses were $127.0 million, or 27.1% of net sales, in the first quarter of 2024 compared to $126.4 million, or 27.1% of net sales, for the same quarter last year. Adjusted SG&A expenses* were $116.5 million, or 24.9% of net sales, in the first quarter of 2024, compared to $117.4 million, or 25.2% of net sales, in the same quarter last year.

Diluted EPS was $1.05 in the first quarter of 2024, up 483% compared to diluted EPS of $0.18 in the same quarter last year. Adjusted diluted EPS* was $1.31 in the first quarter of 2024, up 134% compared to adjusted diluted EPS* of $0.56 in the same quarter last year.



Segment results were as follows:
Net SalesSegment Profit Margin
($ in millions)Q1 2024Q1 2023ChangeQ1 2024Q1 2023Change
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

2024 Guidance
The Company confirms its 2024 full-year guidance and expects 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 a previously announced reduction in workforce, 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 Webcast
The Company will hold a conference call and webcast for investors on Tuesday, May 7, 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 investors.dormanproducts.com under the subheading “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
David Hession, SVP and Chief Financial Officer
dhession@dormanproducts.com
(215) 997-1800

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 EndedThree Months Ended
(unaudited)3/30/24Pct.*4/1/23Pct. *
Net sales$468,701 100.0 $466,738 100.0 
Cost of goods sold287,255 61.3 322,261 69.0 
Gross profit181,446 38.7 144,477 31.0 
Selling, general and administrative expenses127,008 27.1 126,363 27.1 
Income from operations54,438 11.6 18,114 3.9 
Interest expense, net10,605 2.3 11,953 2.6 
Other expense (income), net40 0.0 (357)(0.1)
Income before income taxes43,793 9.3 6,518 1.4 
Provision for income taxes10,965 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 outstanding31,25031,537
* Percentage of sales. Data may not add due to rounding.

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

(unaudited)3/30/2412/31/23
Assets
Current assets:
Cash and cash equivalents$34,433 $36,814 
Accounts receivable, less allowance for doubtful accounts of $3,513 and $3,518486,352 526,867 
Inventories619,972 637,375 
Prepaids and other current assets22,062 32,653 
Total current assets1,162,819 1,233,709 
Property, plant and equipment, net162,439 160,113 
Operating lease right-of-use assets105,714 103,476 
Goodwill443,296 443,889 
Intangible assets, net295,880 301,556 
Other assets49,989 49,664 
Total assets$2,220,137 $2,292,407 
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable$131,478 $176,664 
Accrued compensation18,206 23,971 
Accrued customer rebates and returns186,332 204,495 
Revolving credit facility81,160 92,760 
Current portion of long-term debt12,500 15,625 
Other accrued liabilities35,944 33,636 
Total current liabilities465,620 547,151 
Long-term debt467,338 467,239 
Long-term operating lease liabilities93,105 91,262 
Other long-term liabilities10,233 9,627 
Deferred tax liabilities, net9,346 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, respectively310 313 
Additional paid-in capital102,211 101,045 
Retained earnings1,075,663 1,069,435 
Accumulated other comprehensive loss(3,689)(2,590)
Total shareholders’ equity1,174,495 1,168,203 
Total liabilities and shareholders' equity$2,220,137 $2,292,407 
Selected Cash Flow Information (unaudited):
Three Months Ended
(in thousands)3/30/244/1/23
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 outstanding31,25031,537
* Amounts may not add due to rounding.
See accompanying notes at the end of this supplemental schedule.

DORMAN PRODUCTS, INC.
Non-GAAP Financial Measures
(in thousands, except per-share amounts)
Adjusted Gross Profit:
Three Months EndedThree Months Ended
(unaudited)3/30/24Pct.**4/1/23Pct.**
Gross profit (GAAP)$181,446 38.7 $144,477 31.0 
Pretax acquisition-related transaction and other costs [2]8 0.06,829 1.5 
Adjusted gross profit (Non-GAAP)$181,454 38.7 $151,306 32.4 
Net sales$468,701 $466,738 
Adjusted SG&A Expenses:
Three Months Ended Three Months Ended
(unaudited)3/30/24Pct.** 4/1/23Pct.**
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.

DORMAN PRODUCTS, INC.
Non-GAAP Financial Measures
(in thousands, except per-share amounts)
[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.

DORMAN PRODUCTS, INC.
Non-GAAP Financial Measures
(in thousands, except per-share amounts)

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 amortization0.70 0.70 
Pretax acquisition transaction and other costs0.05 0.05 
Pretax reduction in workforce costs0.12 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 outstanding31,50031,500
*Data may not add due to rounding.

v3.24.1.u1
Cover
May 07, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 07, 2024
Entity Registrant Name DORMAN PRODUCTS, INC.
Entity Incorporation, State or Country Code PA
Entity File Number 000-18914
Entity Tax Identification Number 23-2078856
Entity Address, Address Line One 3400 East Walnut Street
Entity Address, City or Town Colmar
Entity Address, State or Province PA
Entity Address, Postal Zip Code 18915
City Area Code 215
Local Phone Number 997-1800
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 Par Value
Trading Symbol DORM
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000868780
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