Dorman Products, Inc. · NASDAQ:DORM
Dorman Products — Q4 2023 Earnings Presentation
23 slides from Dorman Products's earnings presentation, Feb 27, 2024
Slide 1: Dorman Products, Inc. Q4 2023 Earnings Presentation
DORMAN PRODUCTS, INC. Q4 2023 EARNINGS PRESENTATION FEBRUARY 2024
Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures
Forward-Looking Statements Non-GAAP Financial Measures
Slide 3: Product innovation for the motor vehicle aftermarket
• We deliver product innovation to the aftermarket and develop new repair solutions • Design Manufacture Distribute replacement and upgrade parts for the motor vehicle aftermarket Light Duty FY2023 Net Sales FY2023 Net Sales by Segment by Channel 11% 10% 7% Heavy Duty 13% 44% $1.93B $1.93B 76% 40% S
Slide 4: New to the Aftermarket and Innovation Engine
New to the • Aftermarket • 19,000+ Innovation Engine Broad and • Technical Product • Capabilities • • Nimble Manufacturing • and Supply Chain • 300+ Effective • Across Segments and Channels • 1 – At December 31, 2023. 2 – Adjusted to include Dayton Parts and SuperATV performance for periods prior to
Slide 5: Attractive Segment Characteristics
Adjacent Investments Have Expanded TAM 22% Dorman Attractive Products’ 2023 TOTAL ADDRESSABLE MARKET (US$ BILLIONS) 1 Segment Innovation Characteristics Playbook 2023 2028 Target Net Sales Net Sales 1 – Represents North American Wholesale Aftermarket. Source: Internal estimates based on third-party
Slide 6: Light Duty, Heavy Duty, Specialty Vehicle
Light Duty Heavy Duty Specialty Vehicle • • • • • • • • • • • • • • • 3-Yr Sector Growth: 3.7%1 3-Yr Sector Growth: 3.0%1 3-Yr Sector Growth: 4.0%1 1 - Internal estimates based on third-party data.
Slide 7: Topline Annualized Growth of 18% Since 2019 Outperforming our Peers
Topline Annualized Growth of 18% Since 2019 Outperforming our Peers2 3 • • • 1 000 10 9 8 3 3 500 7 6 000 5 4 3 500 1 2 1 0 0 1 – Adjusted to exclude the 53rd week of FY 2022. See reconciliation of non-GAAP amounts in appendix of this presentation. 2 – Peer group includes AXL, CPS, FOXF, GNTX, GTX,
Slide 8: Net Sales, Adj. Operating Income, Adj. Diluted EPS
Net Sales1,2 Adj. Operating Income1,2 Adj. Diluted EPS1,2 80 30 25 60 20 40 15 10 20 5 0 0 • • • • • • • • 1 – Adjusted to exclude the 53rd week of FY 2022. Dollar amounts in millions, except EPS. 2 - See reconciliations of non-GAAP amounts in appendix of this presentation.
Slide 9: Net Sales, Adj. Operating Income, Adj. Diluted EPS
Net Sales1,2 Adj. Operating Income1,2 Adj. Diluted EPS1,2 240 30 220 25 20 200 15 180 10 160 5 140 0 • • • • • • • • • 1 – Adjusted to exclude the 53rd week of FY 2022. Dollar amounts in millions, except EPS. 2 - See reconciliations of non-GAAP amounts in appendix of this presentation.
Slide 10: Net Sales and Adjusted Operating Income
Net Sales1 & Adjusted Operating Income1 • 390 30 • 380 370 25 • 360 350 20 340 330 15 320 310 10 • 300 290 5 280 • 270 0 1 – Adjusted to exclude the 53rd week of FY 2022. Dollar amounts in millions. See reconciliations of non-GAAP amounts in appendix of this presentation.
Slide 11: Net Sales and Adjusted Operating Income
Net Sales1 & Adjusted Operating Income1 • 65 18 60 16 55 • 50 14 45 12 40 35 10 30 8 • 25 20 6 15 4 10 2 5 0 0 • 1 – Adjusted to exclude the 53rd week of FY 2022. Dollar amounts in millions. See reconciliations of non-GAAP amounts in appendix of this presentation.
Slide 12: Net Sales and Adjusted Operating Income
Net Sales1 & Adjusted Operating Income1 • 35 • 30 25 • 20 15 • 10 5 0 1 – Dollar amounts in millions.
Slide 13: Q4 2023 and FY 2023 Free Cash Flow
Q4 2023 Free Cash Flow1 ($millions) FY 2023 Free Cash Flow1 ($millions) • • • 1 – Non-GAAP measure.
Slide 14: Net Leverage and Liquidity
Net Leverage Liquidity Revolving Credit Facility $93 Term Loan $484 Total Revolver Commitment $600 Less: Cash and Cash Equivalents ($37) Less: Revolver Draw Outstanding ($94) Net Debt $540 Available Revolver Capacity $506 LTM Consolidated EBITDA1 $289 Cash and Cash Equivalents $37 Total Net Leverage
Slide 15: 2019-2023 Capital Deployment and Long Term Priorities
2019-2023 Capital Deployment Long Term Priorities • • • • •
Slide 16: 1 – See reconciliations of non-GAAP amounts in appendix of this presentation.
• • • 1 – See reconciliations of non-GAAP amounts in appendix of this presentation.
Slide 17: Appendix – Non-GAAP Reconciliations
Appendix – Non-GAAP Reconciliations
Slide 18: Results Adjusted for 53rd week of 2022 (Three Months)
Results Adjusted for 53rd week of 2022 Three Months Ended December 31 Impact of 2022 2023 vs. 2023 2022 53rd Week Adjusted 2022 Adj. ($ in thousands, except EPS) Net Sales Light Duty $ 385,855 $ 386,207 $ (16,834) $ 369,373 4% Heavy Duty 57,418 65,432 (2,365) 63,067 -9% Specialty 51,023 49,642 - 49,
Slide 19: Results Adjusted for 53rd week of 2022 (Twelve Months)
Results Adjusted for 53rd week of 2022 Twelve Months Ended December 31 Impact of 2022 2023 vs. 2023 2022 53rd Week Adjusted 2022 Adj. ($ in thousands, except EPS) Net Sales Light Duty $ 1,462,474 $ 1,425,892 $ (16,834) $ 1,409,058 4% Heavy Duty 256,913 258,215 (2,365) 255,850 0% Specialty 210,401 49
Slide 20: Reconciliation of Adjusted Diluted EPS
Reconciliation of Adjusted Diluted EPS Three Months Ended Twelve Months Ended ($ in thousands, except EPS) 12/31/23 12/31/22 12/31/23 12/31/22 Net income (GAAP) $ 50,284 $ 17,836 $ 129,259 $ 121,549 Pretax acquisition-related intangible assets amortization 5,481 5,082 21,817 14,070 Pretax acquisitio
Slide 21: Reconciliation of Adjusted Operating Income
Reconciliation of Adjusted Operating Income Three Months Ended Twelve Months Ended ($ in thousands) 12/31/23 % of Sales 12/31/22 % of Sales 12/31/23 % of Sales 12/31/2022 % of Sales Income from operations (GAAP) $ 77,240 15.6% $ 32,772 6.5% $ 214,760 11.1% $ 171,048 9.9% Pretax acquisition-related i
Slide 22: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Twelve Months Ended ($ in thousands) 12/31/23 12/26/20 Net income (GAAP) $ 129,259 $ 106,870 Pretax acquisition-related intangible assets amortization 21,817 3,205 Pretax acquisition-related transaction and other costs 15,373 4,527 Pretax noncash impairment relatedt
Slide 23: 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) $ 4.71 $ 5.01 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