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Jun 26, 2021

Dorman Q2 2021 Earnings Report

Reported record quarterly sales and EPS growth.

Key Takeaways

Dorman Products reported a record quarterly net sales of $310.6 million, a 33% increase compared to Q2 2020. Diluted earnings per share (EPS) was $0.99, compared to $0.43 in Q2 2020, and adjusted diluted EPS was $1.10, compared to $0.47 in the same quarter last year.

Record net sales of $310.6 million, up 33% compared to Q2 2020, driven by organic growth across all channels and the absence of prior year shut-downs.

Diluted EPS of $0.99, significantly higher than $0.43 in Q2 2020.

Adjusted diluted EPS of $1.10, compared to $0.47 in Q2 2020.

Gross margin expanded due to fixed cost leverage, improved efficiencies, and the absence of COVID-19 related costs, despite higher freight costs.

Total Revenue
$311M
Previous year: $233M
+33.2%
EPS
$1.1
Previous year: $0.47
+134.0%
Gross Margin
35.5%
Previous year: 33.9%
+4.7%
Gross Profit
$110M
Previous year: $79.1M
+39.1%
Cash and Equivalents
$156M
Previous year: $360M
-56.7%
Free Cash Flow
$14.1M
Previous year: $197M
-92.8%
Total Assets
$1.27B
Previous year: $1.18B
+7.6%

Dorman

Dorman

Forward Guidance

The Company confirms its previously issued 2021 guidance, which excludes any impact from the pending Dayton Parts acquisition.

Positive Outlook

  • Maintaining outlook reflects expectations for performance.
  • Visibility into the remainder of the year.
  • Automotive aftermarket industry dynamics will remain strong.
  • Balance sheet and liquidity remain strong.
  • Well-positioned to continue to execute on strategic priorities.

Challenges Ahead

  • Transitory costs continue to drive heightened volatility.
  • Inflationary pressures continue to drive heightened volatility.
  • Freight inflation costs will be a headwind.
  • Material inflation costs will be a headwind.
  • Industry-wide logistical pressures on the global supply chain network impacted fulfillment levels.