Dorman Products, Inc. · NASDAQ:DORM
Dorman Products — Investor Presentation (April 2012)
19 slides from Dorman Products's investor presentation, April 2012
Slide 1: Investor Presentation – Matt Barton, Matt Kohnke
Matt Barton, Co-President Matt Kohnke, CFO © 2012 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 in this press release constitute “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. While forward-looking statements sometimes are presented with numerical specificity, they are based on vario
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) = 35% Ownership • Dominant Aftermarket supplier of Formerly ‘Dealer Only’ Parts • Annual Sales - $529 million – > 128,000 SKUs – > 100 product lines
Slide 5: Core Competencies
Core Competencies New-to-the-Aftermarket Broad Distribution Other (Walmart, Salvage, Int’l) 15% International Sourcing Expertise U.S. U.S. Retail Traditional 42% 43%
Slide 6: Dorman's Brands & Products
Dorman’s Brands & Products Chassis 27% Powertrain 33% Hardware 12% Auto Body 28%
Slide 7: Industry Dynamics
Industry Dynamics Source: Sources: AAIA 2012 Factbook and US Dept. Energy
Slide 8: New-to-the-Aftermarket Driving Dorman Growth
New-to-the-Aftermarket Driving Dorman Growth New Source: AAIA 2012 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 Colmar, PA Shanghai, China ► Over 85 Engineering & Quality Professionals • Product Design, Development, and Validation • Warranty Analysis, Internal Containment, Root Cause Analysis, Corrective Action, and Incoming Inspection • Supplier Management, Qualification, and
Slide 12: Awareness Designed to Change Buying Habits
Awareness Designed to Change Buying Habits 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
Slide 13: Future Growth Outside Automotive
Future Growth Outside Automotive Adjacent North American Markets - Medium & Heavy Duty Markets (Now) - Another New Market(2013-2014) Opportunistic Acquisitions
Slide 14: Strong Sales and Earnings Growth
Strong Sales and Earnings Growth Sales 3 Year CAGR > 15% EPS before one time items Fourth Quarter
Slide 15: Summary Income Statement
Summary Income Statement Fourth Quarter Fiscal Year (before one time item) (before one time item) 2010 2011 2010 2011 Net Sales $ 122,519 $ 139,050 $ 455,716 $ 529,287 Gross Profit 46,629 51,619 172,858 193,330 Margin 38.1% 37.1% 37.9% 36.5% S,G&A 27,040 27,351 97,976 106,027 Op. Income 19,589 24,26
Slide 16: Cash Flow
Cash Flow Fiscal Year 2010 2011 Net Income $ 46,138 $ 53,277 Dep'n and Amort'n 8,012 7,737 Change in AR (13,728) (22,962) Change in Inventory (30,067) 2,794 Change in AP 17,812 (2,377) Other W/C Items 2,549 (407) Operating C/F 30,716 38,062 Capital Spending (11,453) (18,102) Other Changes 574 (228)
Slide 17: Balance Sheet
Balance Sheet December 2010 2011 Cash $ 30,463 $ 50,196 AR 101,851 124,324 Inventory 120,433 115,845 Other current assets 14,348 19,788 P,P & E, net 28,790 38,904 Goodwill and other assets 27,274 27,636 Total Assets $ 323,159 $ 376,693 Debt $ - $ - Current liabilities 48,160 44,553 Long term liabili
Slide 18: Summary
Summary • Dominant New-to-Aftermarket Parts Supplier • Strong Growth Opportunities • Solid Balance Sheet • Attractive Valuation
Slide 19: Questions?
Questions? Matt Barton Matt Kohnke Co-President CFO mbarton@dormanproducts.com mkohnke@dormanproducts.com 215-712-5132 215-712-5182