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Mar 27, 2021

Dorman Q1 2021 Earnings Report

Reported a 12% increase in net sales and a 46% increase in diluted EPS compared to Q1 2020.

Key Takeaways

Dorman Products, Inc. reported a strong start to fiscal year 2021 with a 12% increase in net sales and a 46% increase in diluted EPS. The company's performance was driven by robust customer demand and improved operational efficiencies, despite pressures from global transportation and logistics constraints.

Net sales increased by 12% to $288.0 million compared to Q1 2020.

Diluted earnings per share (EPS) increased by 46% to $1.02 compared to Q1 2020.

Adjusted diluted EPS increased by 58% to $1.04 compared to Q1 2020.

Gross profit margin improved due to increased efficiencies and the absence of increased customer provisions.

Total Revenue
$288M
Previous year: $258M
+11.7%
EPS
$1.04
Previous year: $0.66
+57.6%
Gross Margin
36.3%
Previous year: 32.9%
+10.3%
Gross Profit
$105M
Previous year: $84.8M
+23.3%
Cash and Equivalents
$167M
Previous year: $162M
+3.0%
Free Cash Flow
$14.8M
Previous year: $15.1M
-1.8%
Total Assets
$1.26B
Previous year: $1.15B
+9.7%

Dorman

Dorman

Forward Guidance

The Company expects fiscal 2021 net sales between $1,191 million and $1,224 million, representing growth between 9%-12% over 2020 net sales. The Company also expects 2021 diluted EPS between $4.32 and $4.52, and adjusted diluted EPS* between $4.40 and $4.60.

Positive Outlook

  • Expected net sales growth between 9% and 12% for fiscal year 2021.
  • Anticipated diluted EPS between $4.32 and $4.52 for fiscal year 2021.
  • Projected adjusted diluted EPS between $4.40 and $4.60 for fiscal year 2021.
  • Expectation that automotive aftermarket industry dynamics will continue to improve as we move through 2021.
  • Balance sheet and liquidity are strong, and well-positioned to execute on strategic priorities.

Challenges Ahead

  • Anticipate the cost pressures from global transportation and logistics constraints to continue.
  • Expect other inflationary pressures to continue.
  • Guidance does not include the impact from potential future acquisitions or related financings.
  • Guidance does not include potential impacts from any further possible government-mandated shutdowns.
  • Guidance does not include any potential impact from supply chain disruptions caused by the ongoing COVID-19 pandemic.