Dorman Products, Inc. · NASDAQ:DORM
Dorman Products — Q2 2024 Earnings Presentation
18 slides from Dorman Products's earnings presentation, Aug 2, 2024
Slide 1: Q2 2024 Earnings Presentation
Q2 2024 EARNINGS PRESENTATION AUGUST 2, 2024
Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures
Forward-Looking Statements Non-GAAP Financial Measures
Slide 3: Q2 2024 Highlights
Q2 2024 Highlights 1 Net Sales of $503.0 million, up 4.7% over Q2 2023 2 Adjusted Operating Margin! of 15.6%, 430 bps improvement over Q2 2023 3 Adjusted Diluted EPS! of $1.67, a65% increase over Q2 2023 4 Generated $51 million in Free Cash Flow}; repaid $15 million of debt; repurchased $25 million
Slide 4: Light Duty, Heavy Duty, Specialty Vehicle
Light Duty Heavy Duty Specialty Vehicle • • • • • • • • • • • •
Slide 5: Our Automation Journey: The Challenge We Faced in 2020
Tour Automation Journey: The Challenge We Faced in 2020 Increased digital and e- commerce volumes influenced a changed fulfill ment model Deployed omni-channel capabilities to serve non- traditional channels Customers demanded greater supply chain visibility and integration 2020 SERVICE LEVEL GOALS
Slide 6: Automation Investments and Long-Term Roadmap
Autonomous • Mobile • Robots • 1,700+ Vertical Lift • Modules • 1.8 million • • Warehouse 133.8 million Execution • System • ~$8 million Evaluating • Long-Term • Roadmap •
Slide 7: Net Sales, Adj. Operating Income, Adj. Diluted EPS
Net Sales1 Adj. Operating Income1 Adj. Diluted EPS1 80 30 25 60 20 40 15 15.6% 10 20 11.3% 5 0 0 • • • • • • • • •
Slide 8: Net Sales & Segment Profit %
Net Sales1 & Segment Profit % • 390 30 380 370 25 • 360 350 20 • 340 330 15 320 310 10 300 290 5 280 270 0
Slide 9: Net Sales & Segment Profit %
Net Sales1 & Segment Profit % • 70 18 16 • 60 14 12 50 10 • 40 8 6 30 4 2 • 20 0 10 -2 -4 0 -6 •
Slide 10: Net Sales & Segment Profit %
Net Sales1 & Segment Profit % • 35 • 30 25 20 15 10 • 5 0
Slide 11: Free Cash Flow
Free Cash Flow Free Cash Flow? $67 $63 $13 $12 Q2-23 Q2-24 Hl Cash from Operations Capex ll 1Non-GAAP figure. Dollar amounts in millions. Cash from Operations solid at $63 million, down 5% year-over-year due to working capital benefits from significant inventory reduction in the prior year Capex dow
Slide 12: Strong Balance Sheet and Liquidity Position
Strong Balance Sheet and Liquidity Position Net Leverage Liquidity
Slide 13: Updated 2024 Guidance
Updated 2024 Guidance Updated 2024 Prior 2024 Guidance Guidance (as of August 1, 2024) Net Sales change vs. previous year 3% - 5% 3% - 5% Diluted EPS $5.32 - $5.52 $4.71- $5.01 Change vs. previous year 30% - 35% 15% - 22% Adjusted Diluted EPS! $6.00 - $6.20 $5.40 - $5.70 Change vs. previous year 32%
Slide 14: Appendix – Non-GAAP Reconciliations
Appendix – Non-GAAP Reconciliations
Slide 15: Reconciliation of Adjusted Gross Profit and Adjusted SG&A
Reconciliation of Adjusted Gross Profit and Adjusted SG&A Adjusted Gross Profit: Three Months Ended ($ in thousands) 6/29/24 % of Sales* 7/1/23 % of Sales* Gross profit (GAAP) $ 199,401 39.6% $ 163,506 34.0% Pretax acquisition-related transaction and other costs 2 0.0% 4,971 1.0% Adjusted gross prof
Slide 16: Reconciliation of Adjusted Operating Income
Reconciliation of Adjusted Operating Income Three Months Ended ($ in thousands) 6/29/24 % of Sales 7/1/23 % of Sales Income from operations (GAAP) $ 72,452 14.4% $ 55,198 11.5% Pretax acquisition-related intangible assets amortization 5,481 1.1% 5,418 1.1% Pretax acquisition-related transaction and
Slide 17: Reconciliation of Adjusted Diluted EPS
Reconciliation of Adjusted Diluted EPS Three Months Ended ($ in thousands, except per share amounts) 6/29/24 7/1/23 Net income (GAAP) $ 47,410 $ 32,770 Pretax acquisition-related intangible assets amortization 5,481 5,418 Pretax acquisition-related transaction and other costs 448 5,866 Pretax execut
Slide 18: Reconciliation of Adjusted Diluted EPS - Guidance
Reconciliation of Adjusted Diluted EPS - Guidance Year Ending 12/31/2024 Low End High End Diluted earnings per share (GAAP) $ 5.32 $ 5.52 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