Slide 1: Dorman Products, Inc. Q4 2024 Earnings Presentation
‘DORMAN PRODUCTS, INC. Q4 2024 EARNINGS PRESENTATION FEBRUARY 27, 2025
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
| Forward-Looking Statements & Non-GAAP Financial Measures FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking
Slide 3: 2024: Year in Review
2024: Year in Review ore Ww $2.08 410bps 4O0Obps 57% Net Adj. Gross Margin? Adj. Operating Margint Adj. Diluted EPS? Sales Expansion Expansion Growth ® w $231m $94mu $78m 1.12 Cash from Operating Debt Share Leverage Activities Repaid Repurchases Ratio* en 3 “DOORMAN.
Slide 4: 2024 Highlights
04 2024 Highlights Net Sales of $534 million up 8.0% over Q4 2023 Adjusted Operating Margin! of 17.5% 210 bps improvement over Q4 2023 Adjusted Diluted EPS! of $2.20 a 40% increase over Q4 2023 Free Cash Flow! of $63 million, repaid $54 million of debt Initiated 2025 Guidance?: VEL - Net Sales growt
Slide 5: Pillars of Dorman's Success
lpnvere of Dorman’s Success INNOVATION Innovation is key to our success. We design and deploy new repair STRATEGY solutions that drive outperformance for our customers and installers. OPERATIONAL Westrive for best-in-class operations. We're furthering our EXCELLENCE automation efforts and developing
Slide 6: 2025 Strategic Priorities
2025 Strategic Priorities ® @ © © @ Create new product Advance productivity Continue to strategically Position HD and SV for Capitalize on new growth solutions across each and automation diversify and optimize channel expansion and opportunities across our segment initiatives our supply chain improv
Slide 7: Segment Observations
| Sasanec Observations Macro trends remained strong through the end of 2024 Above-market performance driven by strong customer demand and new products Shipments generally aligned with customer POS in Q4 and through the full year Supply chain diversification and productivity initiatives driving margi
Slide 8: Q4 2024 Performance Highlights
ey! 2024 Performance Highlights $534 $494 Q4-23 Q4-24 Top-line growth driven by strong customer demand Light Duty continued to outperform overall business, driven by favorable macro trends and new product execution Execution of innovation strategy drove new product growth enterprise-wide Dollar amou
Slide 9: Light Duty Segment Quarterly Financials
Light Duty Segment Quarterly Financials + Shipments and POS were generally aligned in the quarter and through the year + New product development, including complex electronics, continued to outperform broader aftermarket and drive 16.6% higher average selling price * Segment Profit Margin expanded d
Slide 10: Heavy Duty Segment Quarterly Financials
eavy Duty Segment Quarterly Financials 2.1% Q4-23 Segment Profit % 04-24 Hl Net sales Freight industry market pressures continued, but early signs of stabilization emerged Innovation strategy yielding strong results as new product launches more than doubled in 2024 Lower net sales led to deleverage
Slide 11: Specialty Vehicle Segment Quarterly Financials
Specmity Vehicle Segment Quarterly Financials + Positive customer demand generated higher sales + Channel expansion and new product development initiatives 15.7% continued to deliver strong results 12.2% + Increase in variable compensation and benefits expenses compared to Q4 2023 partially offset m
Slide 12: Free Cash Flow
r ree Cash Flow Strong cash flow generation as a result of significant Hl Cash from Operations earnings growth and asset-light operating model Capex Cash utilization during the year: — Invested $39 million in capital expenditures — Repaid $94 million in debt >: $63 $231 — Repurchased 856k shares for
Slide 13: Leverage & Liquidity
Leverage & Liquidity Strong Balance Sheet and Liquidity Position Net Leverage Liquidity Revolving Credit Facility $14 Term Loan $469 Total Revolver Commitment $600 Less: Cash and Cash Equivalents ($57) Less: Revolver Draw Outstanding? ($15) Net Debt $426 Available Revolver Capacity $585 LTM Consolid
Slide 14: 2025 Guidance
[5025 Guidance 2025 GUIDANCE (as of February 26, 2025) Net Sales change vs. previous year 3% - 5% Diluted EPS $7.00 - $7.30 Change vs. previous year 14% -19% Adjusted Diluted EPS! $7.55 - $7.85 Change vs. previous year 6% - 10% Guidance excludes any impact from U.S. tariffs enacted or proposed in 20
Slide 15: Appendix – Non-GAAP Reconciliations
' “Appendix — Non-GAAP Reconciliations
Slide 16: Reconciliation of Adjusted Gross Margin
[ Reconciliation of Adjusted Gross Margin 16 ($ in thousands) Gross profit (GAAP) Pretax acquisition-related transaction and other costs Adjusted gross profit (Non-GAAP) ($ in thousands) Gross profit (GAAP) Pretax acquisition-related transaction and other costs Adjusted gross profit (Non-GAAP) Three
Slide 17: Reconciliation of Adjusted SG&A
[ Reconciliation of Adjusted SG&A 17 ($ in thousands) SG&A expenses (GAAP) Pretax acquisition-related intangible assets amortization Pretax acquisition-related transaction and other costs Pretax fair value adjustment to contingent consideration Pretax reduction in workforce costs Adjusted SG&A expen
Slide 18: Reconciliation of Adjusted Operating Income
[ Reconciliation of Adjusted Operating Income 18 ($ in thousands) Income from operations (GAAP) Pretax acquisition-related intangible assets amortization Pretax acquisition-related transaction and other costs Pretax fair value adjustment to contingent consideration Pretax reduction in workforce cost
Slide 19: Reconciliation of Adjusted Diluted EPS
[ Reconciliation of Adjusted Diluted EPS 19 ($ in thousands, except per share amounts) Net income (GAAP) Pretax acquisition-related intangible assets amortization Pretax acquisition-related transaction and other costs Pretax executive transition services expense Pretax fair value adjustment to conti
Slide 20: Reconciliation of Adjusted Diluted EPS - Guidance
| Reconciliation of Adjusted Diluted EPS - Guidance 20 Diluted earnings per share (GAAP) Pretax acquisition-related intangible assets amortization Pretax acquisition transaction and other costs Tax adjustment (related to above items) Adjusted diluted earnings per share (Non-GAAP) Weighted average di