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Dec 28, 2019
Dorman Q4 2019 Earnings Report
Dorman's Q4 2019 results were announced, featuring a net sales decrease but strong operating cash flow.
Key Takeaways
Dorman Products Inc. reported a decrease in net sales for Q4 2019, down 8% to $239.6 million compared to the previous year. Diluted EPS also declined to $0.54 from $1.05. However, the company generated strong operating cash flow of $36 million and expects net sales growth and EPS improvements in fiscal year 2020.
Net sales decreased by 8% to $239.6 million compared to Q4 2018.
Diluted EPS declined by 49% to $0.54, and adjusted diluted EPS decreased by 53% to $0.52.
Operating cash flow was strong at $36 million for the quarter.
Company anticipates net sales growth between 5%-8% for fiscal year 2020.
Dorman
Dorman
Forward Guidance
The Company expects fiscal 2020 net sales growth between 5%-8%, fiscal 2020 EPS of between $3.25 and $3.45 on a GAAP basis, reflecting an increase of between 27% and 35% year-over-year, and fiscal 2020 adjusted EPS of between $3.35 and $3.55, reflecting an increase of between 26% and 34% year-over-year.
Positive Outlook
- Net sales growth between 5%-8% is expected.
- EPS between $3.25 and $3.45 is anticipated, reflecting a 27% to 35% year-over-year increase.
- Adjusted EPS between $3.35 and $3.55 is projected, reflecting a 26% to 34% year-over-year increase.
- Financial results are expected to improve throughout the year.
- Company will benefit from efficiencies at its new Portland, TN facility.
Challenges Ahead
- Guidance excludes any potential impact from supply chain disruptions caused by the coronavirus outbreak.
- Guidance assumes no changes to U.S. import tariffs currently in place.
- Guidance assumes that the Company does not conduct any share repurchases in 2020.
- The company expects to face difficult comparisons to the prior year period results in Q1 2020.
- Uncertainties remain from this rapidly evolving situation.