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Sep 25, 2021

Dorman Q3 2021 Earnings Report

Reported record net sales and EPS results impacted by acquisition and inflationary pressure.

Key Takeaways

Dorman Products, Inc. reported a 16% increase in net sales to $348.4 million compared to Q3 2020, driven by robust customer demand and the acquisition of Dayton Parts. Diluted EPS was $1.04, slightly lower than the $1.06 reported in Q3 2020. The company experienced inflationary impacts due to global transportation and logistics constraints, which affected gross margin percentage.

Net sales reached a record $348.4 million, a 16% increase compared to Q3 2020.

Diluted earnings per share (EPS) were $1.04, compared to $1.06 in Q3 2020.

Adjusted diluted EPS was $1.18, compared to $1.14 in Q3 2020.

Completed the acquisition of Dayton Parts, accelerating the company’s heavy-duty growth strategy.

Total Revenue
$348M
Previous year: $301M
+15.9%
EPS
$1.18
Previous year: $1.14
+3.5%
Gross Margin
33.5%
Previous year: 35.9%
-6.7%
Gross Profit
$117M
Previous year: $108M
+8.4%
Cash and Equivalents
$57.3M
Previous year: $171M
-66.4%
Free Cash Flow
$33.4M
Previous year: -$78.6M
-142.5%
Total Assets
$1.62B
Previous year: $1.16B
+39.4%

Dorman

Dorman

Forward Guidance

The Company has revised its previous guidance of full year net sales growth to now be from 19% - 22%, while its full year adjusted diluted EPS* guidance remains unchanged, at $4.56 - $4.80 per diluted share.

Positive Outlook

  • Expectation of continued strength in customer demand
  • Anticipated impact of pass-through pricing actions
  • Balance sheet and liquidity remain strong
  • Well positioned to continue to execute on our strategic priorities
  • Actions in place to help offset freight and material inflation costs

Challenges Ahead

  • Freight and material inflation costs will be a headwind
  • Potential impacts from future acquisitions
  • Possible government-mandated shutdowns
  • Supply chain disruptions caused by the ongoing COVID-19 pandemic
  • Tight labor market and disrupted sourcing and logistical network that have increased costs and impacted fulfillment levels