COLMAR, PA — Dorman Products, Inc. has released its financial results for the fourth quarter and full year that ended December 31, 2023, revealing a mixed bag of results that, nonetheless, maintain an overall positive trajectory. The Pennsylvania-based company registered notable highs, despite a dip in net sales for the fourth quarter.
The company announced net sales of $494.3 million for the quarter, a decrease of 1% from the prior-year period. The firm attributed this to the impact of an extra week in the prior year period, which they estimate to have contributed $19 million in net sales. Excluding this impact, sales were actually up by 3%.
However, it was the company’s earnings per share (EPS) that truly shone. Dorman reported record diluted EPS of $1.60 for the quarter, on which is an increase of 182% over the $0.57 of the prior year. The Company also saw a record adjusted diluted EPS of $1.57 for the quarter, up by 55% compared to $1.01 in the previous year.
According to Kevin Olsen, Dorman’s President and Chief Executive Officer, these robust results were driven by the continued improvement of gross margin, which saw a substantial increase of 780 basis points year-over-year. Olsen highlighted the company’s efforts of building cash reserves and reducing debt, as well as engaging in stock repurchases.
For the full year 2023, Dorman achieved diluted EPS of $4.10 and adjusted diluted EPS of $4.54, while the net sales hit a record at $1.93 billion. The company also reported strong cash flow, with $60 million generated from operating activities, $30 million debt repayment, and $15 million share repurchase in the past quarter.
In terms of expenses, Dorman’s selling, general and administrative (SG&A) expenses for the fourth quarter were at $117.0 million, or 23.7% of net sales, which is a slight decrease from the same quarter last year when they were $125.0 million, or 24.9%.
Dorman’s 2023 full-year results also painted a picture of growth and stability. The company reported net sales of $1,929.8 million, which is an 11% increase from the previous year. Dorman also saw its gross profit rise to $685.4 million, or 35.5% of net sales, which is an increase from $564.5 million, or 32.6%, in the prior year.
Looking forward to 2024, Dorman expects continued growth, predicting a net sales increase of 3% to 5% over 2023 and anticipating another strong year for earnings. The expected diluted EPS range is between $4.71 to $5.01, and the adjusted diluted EPS is projected to be in the range of $5.40 to $5.70. These projections are based on a tax rate of 24% and exclude potential impacts from future acquisitions and divestitures, major supply chain disruptions, significant fluctuations in inflation and interest rates, and share repurchases.
Industry watchers are taking notice of Dorman’s success, with the company being named to Fortune’s “100 Fastest-Growing Companies” list for two consecutive years. This recognition signals Dorman’s commitment to innovation and customer satisfaction.
For shareholders, Dorman offers a strong dividend program, with a track record of consistent growth and increases. The company also has a history of share repurchases, demonstrating their confidence in the long-term success of their business.
Ultimately, Dorman’s focus on quality, innovation, and customer satisfaction sets them apart in the highly competitive automotive aftermarket industry. As they continue to expand their product offerings and reach new markets, Dorman is poised for continued growth and success. Keep an eye on this company as they pave the way for the future of the automotive aftermarket industry.
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