Business
Dorman Products, Inc. Reports First Quarter 2020 Results
Highlights: Net sales of $257.7 million, up 6% compared to $243.8 million in Q1 2019. Diluted earnings per share (EPS) on a GAAP basis of $0.70 compared to
About this update from Dorman Products, Inc.
[{"type":"text","content":"Highlights:\n Net sales of $257.7 million, up 6% compared to $243.8 million in Q1 2019. Diluted earnings per share (EPS) on a GAAP basis of $0.70 compared to $0.71 in Q1 2019.Adjusted diluted EPS of $0.66 compared to $0.79 in Q1 2019.Dorman has ample liquidity and is positioned well to navigate the ongoing COVID-19 pandemic. COLMAR, Pa., April 27, 2020 (GLOBE NEWSWIRE) -- Dorman Products, Inc. (the “Company” or “Dorman”) (NASDAQ:DORM), a leading supplier in the automotive aftermarket industry, today announced its financial results for the first quarter ended March 28, 2020. First Quarter Financial ResultsThe Company reported first quarter 2020 net sales of $257.7 million, up 6% compared to net sales of $243.8 million in the first quarter of 2019 despite a difficult comparison as the Company executed a large chassis rollout in the first quarter of 2019. Customer demand also began to decline late in March as the government imposed enhanced restrictions to prevent the further spread of COVID-19, with the corresponding negative impact on net sales estimated to be approximately 1.5% - 2.5% in the first quarter of 2020. Gross profit was $84.8 million in the first quarter compared to $87.5 million for the same quarter last year. Gross margin for the first quarter was 32.9% compared to 35.9% in the same quarter last year. The adjusted gross margin was 33.0% in the quarter compared to 36.0% in the same quarter last year. The gross margin was lower primarily due to higher first quarter 2020 customer provisions compared to first quarter 2019, however we expect these costs to moderate over the balance of 2020. For the full year 2020 we expect customer provisions to be flat to full year 2019, excluding the $11.2 million one-off customer return provision that was disclosed in fourth quarter 2019 results. Gross margin during the first quarter was also impacted to a lesser extent by the pass-through effect of tariff costs to our customers and lower productivity levels as we continued to ramp up production at our new Portland, TN distribution facility. Selling, general and administrative (“SG&A”) expenses were $59.7 million, or 23.2% of net sales, in the first quarter of 2020 compared to $57.8 million, or 23.7% of net sales, in the same quarter last year. Adjusted SG&A expenses were $58.4 million, or 22.6% of net sales, in the quarter compared t...