Dorman Products, Inc. · NASDAQ:DORM
Dorman Products — Investor Presentation (November 2013)
20 slides from Dorman Products's investor presentation, November 2013
Slide 1: November 2013
November 2013 © 2013 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. 1
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “demonstrate,” “expect,” “estimate,” “forecast,” “anticipate,” “should” and “likely” and sim
Slide 3: Agenda
Agenda Dorman Snapshot Industry Dynamics Growth Strategy Financial Results Summary 3
Slide 4: Snapshot
Snapshot ► Founded in 1978 ► NASDAQ listed since 1991: DORM ► Founding Family = 29% Ownership ► Dominant Aftermarket supplier of Formerly ‘Dealer Only’ Parts ► Sales ‐ $630 million on TTM basis thru September • > 133,000 SKUs • > 130 product lines 4
Slide 5: Dorman's Core Competencies
Dorman’s Core Competencies Unique Business Model: Broad Distribution “New-to-the-Aftermarket” U.S. Other Retail 8% 49% U.S. Traditional 43% International Sourcing Expertise 133,000 SKU Product Portfolio Focuses on ‘Niche’ Offerings Powertrain Chassis 33% 26% Hardware 11% Auto Body 30% Virtually no
Slide 6: Industry Dynamics
Industry Dynamics Source: Sources: AAIA 2014 Factbook and US Energy Information Administration 6
Slide 7: New-to-the-Aftermarket Driving Dorman Growth
New‐to‐the‐Aftermarket Driving Dorman Growth New Source: AAIA 2014 Factbook ► Items previously only available at the OE Dealer or Salvage Yard ► Drives comp store sales growth for customers 7
Slide 8: New-to-the-Aftermarket Products
New‐to‐the‐Aftermarket Products New Product Sales Opportunities for our customers: 2010 2011 2012 Q3 YTD Total New to the Aftermarket 657 680 804 589 2,730 Line Extensions (many of which are exclusive items) 1,192 1,451 1,911 1,852 6,406 1,849 2,131 2,715 2,441 9,136 OE Dealer Job Replacement Replac
Slide 9: New-to-the-Aftermarket Engine
New‐to‐the‐Aftermarket Engine ► >20% of sales from products introduced in last two years ► Culture of Contribution Drives Innovation • Unique installer relationships and feedback network to identify failure‐prone OEM parts • 300+ product personnel in co‐located and virtual teams in US and Asia • Str
Slide 10: Awareness Designed to Change Buying Habits
Awareness Designed to Change Buying Habits Product Training Developing the tools needed to effectively communicate the Dorman Advantage Email Marketing Integrated approach to growing Dorman’s reach via database of customer contacts Website The best source for comprehensive and constantly updated inf
Slide 11: Growth Markets and Future Opportunities
Growth Markets • US and Canadian Automotive Markets • Medium & Heavy Duty Aftermarket • Mexico • Light Duty Diesel Future Opportunities • Another market by 2015 • Opportunistic acquisition • Expertise in Automotive • Distribution in new North American Markets 11
Slide 12: Medium and Heavy Duty Markets
Medium and Heavy Duty Markets Approximately 1/3rd the size of the automotive aftermarket ►Dorman HD Solutions™ launched in January 2012 ►Dedicated product development team •Over 250 SKU’s available •Over 200 SKU’s in development ► Represents approximately 1% of sales Source: AAIA 2014 Factbook 12
Slide 13: Dorman Hybrid Drive Batteries
Dorman Hybrid Drive Batteries “I love that Dorman purchased Re-Involt and I can get these locally now. Re-Involt has the best quality out there.” – Pat (Tech in CA)d ►Dorman acquired Re‐Involt in May 2013 ►Formally launched program October 1st •Toyota Prius Gen 1 and Gen 2 launched October 1st •Hond
Slide 14: Financial Results Summary
Financial Results Summary ► Strong track record of organic revenue and EPS growth • CAGR in sales 17% from 2009 to 2012 • EPS up from $0.75 in 2009 to $1.82 in 2012 ► Operating leverage enabled by outsourced manufacturing model • Gross margin expansion • Significant SG&A leverage • Operating margins
Slide 15: Strong Sales and Earnings Growth
Strong Sales and Earnings Growth Sales 3 Year CAGR 17% EPS before one time items ‐ CAGR 34% Year to date Q3 15
Slide 16: Summary Income Statement
Summary Income Statement Nine Months Fiscal Year 2012 2013 2011 (a) 2012 Net Sales $ 435,406 $ 494,657 $ 513,432 $ 570,420 Gross Profit 163,368 194,883 189,267 215,209 Margin 37.5% 39.4% 36.9% 37.7% S,G&A 82,103 98,551 101,630 110,978 Op. Income 81,265 96,332 87,637 104,231 Margin 18.7% 19.5% 17.1%
Slide 17: Balance Sheet
Balance Sheet December September 2012 2013 Cash $ 27,708 $ 48,335 AR 140,180 178,702 Inventory 145,270 149,098 Other current assets 22,891 22,892 P,P & E, net 48,758 58,717 Goodwill and other assets 27,876 31,848 Total Assets $ 412,683 $ 489,592 Debt $ - $ - Current liabilities 63,685 77,790 Long te
Slide 18: Cash Flow
Cash Flow Nine Months 2012 2013 Net Income $ 55,662 $ 61,301 Dep'n and Amort'n 5,973 7,417 Other non-cash (3,604) 1,106 Change in AR (16,375) (38,623) Change in Inventory (18,437) (3,722) Change in AP 7,087 2,493 Other W/C Items (1,705) 6,869 Operating C/F 28,601 36,841 Capital Spending (14,437) (14
Slide 19: Summary
Summary ► Dominant New‐to‐the‐Aftermarket Parts Supplier ► Strong Growth Opportunities ► Long Track Record of Revenue and Cash Flow Growth ► Solid Balance Sheet 19
Slide 20: Questions?
Questions? Matt Barton Matt Kohnke President CFO mbarton@dormanproducts.com mkohnke@dormanproducts.com 215-712-5132 215-712-5182 20
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