COLMAR, PA — Dorman Products, Inc. (NASDAQ: DORM) has announced robust financial results for the second quarter ending June 29, 2024, highlighting significant growth in key metrics and an optimistic outlook for the remainder of the year.
Key Financial Highlights
- Net sales reached $503.0 million, up 4.7% from $480.6 million in the same period last year.
- Diluted earnings per share (EPS) increased by 47% to $1.53, compared to $1.04 last year.
- Adjusted diluted EPS rose by 65% to $1.67, up from $1.01.
- The company generated $63 million in cash from operating activities, repaid $15 million in debt, and repurchased $25 million of its shares.
Growth and Strategic Moves
The company’s Light Duty segment drove net sales growth with high-single-digit increases, spurred by positive industry trends and new product introductions. However, this was partially offset by declines in the Heavy Duty and Specialty Vehicle segments due to sector softness.
Gross profit for the quarter stood at $199.4 million, making up 39.6% of net sales, an improvement from $163.5 million, or 34.0%, in the same quarter last year. This reflects better cost management and operational efficiencies.
Selling, general, and administrative (SG&A) expenses were $126.9 million in the second quarter, up from $108.3 million last year. Adjusted SG&A expenses increased to $120.7 million, from $114.4 million.
Future Outlook
Given the strong performance in the first half of 2024, Dorman Products has raised its full-year earnings guidance. The company now expects diluted EPS to be between $5.32 and $5.52, and adjusted diluted EPS to range from $6.00 to $6.20.
Kevin Olsen, President and CEO, expressed confidence in the company’s growth strategy and workforce dedication. “We are pleased with our results in the second quarter, achieving a significant increase in EPS over the prior year. Our growth and innovation strategy, coupled with the dedication and hard work of our Contributors, will enable us to continue driving momentum for our customers and other stakeholders.”
Driving Growth & Financial Resilience
Dorman Products’ financial results highlight its resilience and strategic focus on growth. The increase in net sales and EPS, along with improved gross margins, indicates strong operational execution. The company’s ability to generate substantial cash flow, repay debt, and return capital to shareholders further underscores its financial health. The decision to raise annual guidance reflects management’s confidence in sustaining this momentum.
Overall, Dorman Products is well-positioned to navigate market challenges and capitalize on growth opportunities, ensuring value creation for its shareholders and stakeholders.
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