Dorman Products, Inc. · NASDAQ:DORM
Dorman Products — Investor Presentation (August 2013)
19 slides from Dorman Products's investor presentation, August 2013
Slide 1: August 2013
August 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 ‐ $608 million on TTM basis ended June 13 • > 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 Q2 YTD Total New to the Aftermarket 657 680 804 349 2,490 Line Extensions (many of which are exclusive items) 1,192 1,451 1,911 1,340 5,894 1,849 2,131 2,715 1,689 8,384 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 • Stro
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: 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 including 37 released in 2013 •200 SKU’s in development with 50 expected this year ► Currently less th
Slide 12: Future Growth Outside Automotive
Future Growth Outside Automotive Adjacent North American Markets • Medium & Heavy Duty Markets (Now) • Another New Market (2014‐2015) Opportunistic Acquisitions • Expertise in Automotive • Distribution in new North American Markets • Enterprise value < $200 million 12
Slide 13: 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 from 36% in 2009 to 38% in 2012 • Significant S
Slide 14: Strong Sales and Earnings Growth
Strong Sales and Earnings Growth Sales 3 Year CAGR 17% EPS before one time items ‐ CAGR 34% First Half 14
Slide 15: Summary Income Statement
Summary Income Statement Six Months Fiscal Year 2012 2013 2011 (a) 2012 Net Sales $ 278,995 $ 316,704 $ 513,432 $ 570,420 Gross Profit 103,622 125,179 189,267 215,209 Margin 37.1% 39.5% 36.9% 37.7% S,G&A 53,488 64,517 101,630 110,978 Op. Income 50,134 60,662 87,637 104,231 Margin 18.0% 19.2% 17.1% 1
Slide 16: Balance Sheet
Balance Sheet December June 2012 2013 Cash $ 27,708 $ 39,691 AR 133,806 151,207 Inventory 145,270 146,075 Other current assets 22,891 26,781 P,P & E, net 48,758 51,136 Goodwill and other assets 27,876 32,013 Total Assets $ 406,309 $ 446,903 Debt $ - $ - Current liabilities 57,311 56,903 Long term li
Slide 17: Cash Flow
Cash Flow Fiscal Year 2011 2012 Net Income $ 53,277 $ 70,962 Dep'n and Amort'n 7,737 8,225 Change in AR (22,962) (9,730) Change in Inventory 2,794 (29,405) Change in AP (2,377) 10,738 Other W/C Items (406) (1,879) Operating C/F 38,063 48,911 Capital Spending (18,102) (18,078) Dividend - (54,716) Oth
Slide 18: Summary
Summary ► Dominant New‐to‐the‐Aftermarket Parts Supplier ► Strong Growth Opportunities ► Long Track Record of Revenue and Cash Flow Growth ► Solid Balance Sheet 18
Slide 19: Questions?
Questions? Matt Barton Matt Kohnke President CFO mbarton@dormanproducts.com mkohnke@dormanproducts.com 215-712-5132 215-712-5182 19
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