Dorman Products, Inc. · NASDAQ:DORM
Dorman Products — Investor Presentation (November 2011)
16 slides from Dorman Products's investor presentation, Nov 11, 2011
Slide 1: November 11, 2011
November 11, 2011 Matt Barton, Co-President Matt Kohnke, CFO © 2011 Dorman Products, Inc. Contains confidential and proprietary information of Dorman Products. Information contained herein is intended only for the recipient(s). Any disclosure, copying, or distribution is strictly prohibited.
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements periodically made by or on behalf of the Company and certain statements contained herein including statements in Management's Discussion and Analysis of Financial Condition and Results of Operations, such as statements regarding litigation, and certain o
Slide 3: Agenda
Agenda Dorman Snapshot Industry Dynamics Growth Strategy Financial Results Summary
Slide 4: Snapshot
Snapshot • Founded in 1978 • NASDAQ listed since 1991: DORM • Founding Family and 401(K) = 40% Ownership • Dominant Aftermarket supplier of products previously available only through OEM’s • Annual Sales = $500 million – > 100,000 SKUs – > 100 product lines
Slide 5: Core Competencies
Core Competencies New-to-the-Aftermarket Broad Distribution Other (Walmart, Salvage, Int’l) 14% International Sourcing Expertise U.S. U.S. Retail Traditional 44% 42%
Slide 6: Dorman's Brands & Products
Dorman’s Brands & Products Chassis 25% Powertrain 32% Hardware 15% Auto Body 28%
Slide 7: Industry Dynamics
Industry Dynamics 32.0% OE 31.3% Dealer Share of Aftermarket 31.0% 30.7% 30.0% 30.1% 29.6% 29.0% 28.8% 28.3% 28.0% 28.1% 27.0% 26.0% 2005 2006 2007 2008 2009 2010 2011 Source: Sources: AAIA 2011 Factbook and US Dept. Energy
Slide 8: New-to-the-Aftermarket Driving Dorman Growth
New‐to‐the‐Aftermarket Driving Dorman Growth New Source: AAIA 2011 Factbook • Items previously only available at the OE Dealer or Salvage Yard • Drives comp store sales growth for customers
Slide 9: New-to-the-Aftermarket Products
New‐to‐the‐Aftermarket Products New Product Sales Opportunities – Last 3 Years: - 60 New-to-the-Aftermarket categories - 1,058 New-to-the-Aftermarket items - Over 4,200 new parts in line extensions, many of which are aftermarket exclusive items OE Dealer Job Replacement Replace the Piece, Underserve
Slide 10: New-to-the-Aftermarket Engine
New‐to‐the‐Aftermarket Engine • Increased investments in Product Development every year since 2003 – 225+ personnel in co-located and virtual teams in US and Asia – Organized by product/market type – Emphasis on ROI, speed to market and quality • Globally Diverse Manufacturing Base • >20% Sales from
Slide 11: International Sourcing Expertise
International Sourcing Expertise Taipei, Taiwan Colmar, PA Shanghai, China ► Over 75 Engineering & Quality Professionals • Product Design, Development, and Validation • Warranty Analysis, Internal Containment, Root Cause Analysis, Corrective Action, and Incoming Inspection • Supplier Management, Qua
Slide 12: Awareness
Awareness Monthly New Product Announcements Service Dealer Guides Emailed to over 30,000 customers and end users Highlights new products, 600,000+ circulated every 4 months Website Trade Shows First-to-Stock Program Virtual Tradeshow The best source for Conducted at the national, Customized marketin
Slide 13: Future Growth
Future Growth Medium & Heavy Duty Markets (2012) International Opportunistic Acquisitions
Slide 14: Strong Financial Discipline
Strong Financial Discipline $500 Sales 3 Year CAGR = 11.6% $456 $450 • Continuous $400 $377 $328 $342 2011 up 17% improvement and $350 $300 cost reduction $250 $200 $150 • Conservative balance $100 $50 sheet $0 2007 2008 2009 2010 • All new initiatives $3.00 EPS $2.58 must pass hurdle $2.50 rates $2
Slide 15: Summary
Summary • Dominant New-to-Aftermarket Parts Supplier • Strong Growth Opportunities • Solid Balance Sheet • Attractive Valuation
Slide 16: Questions?
Questions? Matt Barton Matt Kohnke Co-President CFO mbarton@dormanproducts.com mkohnke@dormanproducts.com 215-712-5132 215-712-5182
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