Highlights:
- Record net sales of
$398.2 million for the quarter, up 32% year-over-year. - Diluted earnings per share (“EPS”) of
$1.07 , compared to$1.11 in Q4 2020. - Adjusted diluted EPS* of
$1.33 compared to$1.19 in Q4 2020. - For fiscal 2021, achieved record net sales, diluted EPS and adjusted diluted EPS*.
- For fiscal 2022, the Company expects net sales growth of 19%-22%, diluted EPS of
$4.94 to$5.14 , and adjusted diluted EPS* of$5.35 to$5.55 .
Fourth Quarter Financial Results
Dorman reported quarterly net sales in the fourth quarter of 2021 of
Gross profit was
Selling, general and administrative (“SG&A”) expenses were
Income tax expense was
Net income for the fourth quarter of 2021 was
Fiscal Year Financial Results
Fiscal 2021 net sales were
Net income for fiscal 2021 was
“I am proud of how our organization is working together to service the robust customer demand we continue to experience despite a very challenging environment that has impacted fulfillment levels and increased our costs. To address the increased costs associated with these inflationary challenges, we continue to drive cost savings through the Company’s efforts to streamline its end-to-end supply chain processes, and we have also executed pass-through pricing actions. As a result, we remain confident in our ability to offset the gross margin dollar impact of the higher inflationary costs we are experiencing. Our strong, long-standing relationships with our suppliers and logistics partners, combined with the deep experience of our Contributors located both in the
2022 Guidance
2022 Fiscal Year | ||
Growth vs 2021 | 19% - 22% | |
Diluted EPS | ||
Growth vs 2021 | 20% - 25% | |
Adjusted Diluted EPS* | ||
Growth vs 2021 | 15% - 20% | |
Tax Rate Estimate | 22.5% |
The Company expects full-year 2022 net sales from
The Company’s fiscal year ends on the last Saturday of the calendar year. For the fiscal year ending
The Company’s guidance includes the impact of the Dayton Parts acquisition but excludes any potential impacts from future acquisitions or further possible government-mandated shutdowns or supply chain disruptions caused by the ongoing COVID-19 pandemic. Finally, the Company’s guidance assumes a 22.5% tax rate and does not include any share repurchases that may take place in 2022.
Share Repurchases
During the quarter ended
About
At Dorman, we give repair professionals and vehicle owners greater freedom to fix cars and trucks by focusing on solutions first. For over 100 years, we have been one of the automotive aftermarket’s pioneering problem solvers, releasing tens of thousands of replacement products engineered to save time and money and increase convenience and reliability.
Founded and headquartered in
*Non-GAAP Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains Non-GAAP financial measures. The reasons why we believe these measures provide useful information to investors and a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these Non-GAAP measures are included in the supplemental schedules attached.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to the COVID-19 pandemic, net sales, diluted and adjusted diluted earnings per share, gross profit, gross margin, adjusted gross margin, SG&A, adjusted SG&A, income tax expense, income before income taxes, net income, cash and cash equivalents, indebtedness, liquidity, the Company’s share repurchase program, the Company’s outlook and productivity initiatives. Words such as “believe,” “demonstrate,” “expect,” “estimate,” “forecast,” “anticipate,” “should,” “will” and “likely” and similar expressions identify forward-looking statements. However, the absence of these words does not mean the statements are not forward-looking. In addition, statements that are not historical should also be considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors (many of which are outside of our control) which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: (i) the age, condition and number of vehicles that need servicing; (ii) competition in the automotive aftermarket industry; (iii) the loss or decrease in sales among one of our top customers; (iv) price competition; (v) limited customer shelf space; (vi) customer consolidation; (vii) widespread public health epidemics, including COVID-19; (viii) failure to maintain sufficient inventory or anticipate changes in customer demand; (ix) excess overstock inventory-related returns; (x) the inability to purchase raw materials, components and other items from our suppliers; (xi) the availability and cost of third-party transportation providers; (xii) reliance on new product development; (xiii) changes in, or restrictions on access to, automotive technology; (xiv) quality problems with our products; (xv) inability to protect our intellectual property; (xvi) claims of intellectual property infringement; (xvii) failure to maintain the value of our brands; (xviii) cyber-attacks; (xix) foreign currency fluctuations and dependence on foreign suppliers; (xx) exposure to risks related to accounts receivable; (xxi) changes in
Investor Relations Contact
dhession@dormanproducts.com
(215) 997-1800
Visit our website at www.dormanproducts.com. The Investor Relations section of the website contains a significant amount of information about Dorman, including financial and other information for investors. Dorman encourages investors to visit its website periodically to view new and updated information.
Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per-share amounts) | ||||||||||||||||
| ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
(unaudited) | Pct.* | Pct. * | ||||||||||||||
Net sales | $ | 398,176 | 100.0 | $ | 301,216 | 100.0 | ||||||||||
Cost of goods sold | 266,759 | 67.0 | 189,846 | 63.0 | ||||||||||||
Gross profit | 131,417 | 33.0 | 111,370 | 37.0 | ||||||||||||
Selling, general and administrative expenses | 86,316 | 21.7 | 65,455 | 21.7 | ||||||||||||
Income from operations | 45,101 | 11.3 | 45,915 | 15.2 | ||||||||||||
Interest expense, net | 1,244 | 0.3 | 54 | 0.0 | ||||||||||||
Other income, net | (43 | ) | (0.0 | ) | (100 | ) | (0.0 | ) | ||||||||
Income before income taxes | 43,900 | 11.0 | 45,961 | 15.3 | ||||||||||||
Provision for income taxes | 9,820 | 2.5 | 10,010 | 3.3 | ||||||||||||
Net income | $ | 34,080 | 8.6 | $ | 35,951 | 11.9 | ||||||||||
Diluted earnings per share | $ | 1.07 | $ | 1.11 | ||||||||||||
Weighted average diluted shares outstanding | 31,726 | 32,310 |
Twelve Months Ended | Twelve Months Ended | |||||||||||||||
(unaudited) | Pct.* | Pct. * | ||||||||||||||
Net sales | $ | 1,345,249 | 100.0 | $ | 1,092,748 | 100.0 | ||||||||||
Cost of goods sold | 882,333 | 65.6 | 709,632 | 64.9 | ||||||||||||
Gross profit | 462,916 | 34.4 | 383,116 | 35.1 | ||||||||||||
Selling, general and administrative expenses | 291,365 | 21.7 | 249,743 | 22.9 | ||||||||||||
Income from operations | 171,551 | 12.8 | 133,373 | 12.2 | ||||||||||||
Interest expense, net | 2,162 | 0.2 | 599 | 0.1 | ||||||||||||
Other income, net | (377 | ) | (0.0 | ) | (2,962 | ) | (0.3 | ) | ||||||||
Income before income taxes | 169,766 | 12.6 | 135,736 | 12.4 | ||||||||||||
Provision for income taxes | 38,234 | 2.8 | 28,866 | 2.6 | ||||||||||||
Net income | $ | 131,532 | 9.8 | $ | 106,870 | 9.8 | ||||||||||
Diluted earnings per share | $ | 4.12 | $ | 3.30 | ||||||||||||
Weighted average diluted shares outstanding | 31,961 | 32,373 |
* Percentage of sales. Data may not add due to rounding.
Consolidated Balance Sheets | ||||||||
(in thousands, except share data) | ||||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 58,782 | $ | 155,576 | ||||
Accounts receivable, less allowance for doubtful accounts of | 472,764 | 460,878 | ||||||
Inventories | 531,988 | 298,719 | ||||||
Prepaids and other current assets | 13,048 | 7,758 | ||||||
Total current assets | 1,076,582 | 922,931 | ||||||
Property, plant and equipment, net | 114,864 | 91,009 | ||||||
Operating lease right-of-use assets | 59,029 | 39,002 | ||||||
197,332 | 91,080 | |||||||
Intangible assets, net | 178,809 | 25,207 | ||||||
Deferred tax asset, net | — | 12,450 | ||||||
Other assets | 46,503 | 38,982 | ||||||
Total assets | $ | 1,673,119 | $ | 1,220,661 | ||||
Liabilities and shareholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 177,389 | $ | 117,878 | ||||
Accrued compensation | 26,636 | 19,711 | ||||||
Accrued customer rebates and returns | 188,080 | 155,751 | ||||||
Revolving credit facility | 239,360 | — | ||||||
Other accrued liabilities | 33,583 | 29,305 | ||||||
Total current liabilities | 665,048 | 322,645 | ||||||
Long-term operating lease liabilities | 52,443 | 37,083 | ||||||
Other long-term liabilities | 4,916 | 3,555 | ||||||
Deferred tax liabilities, net | 17,976 | 3,819 | ||||||
Commitments and contingencies | ||||||||
Shareholders' equity: | ||||||||
Common stock, par value | 316 | 322 | ||||||
Additional paid-in capital | 77,451 | 64,085 | ||||||
Retained earnings | 856,409 | 789,152 | ||||||
Accumulated other comprehensive loss | (1,440 | ) | — | |||||
Total shareholders' equity | 932,736 | 853,559 | ||||||
Total liabilities and shareholders' equity | $ | 1,673,119 | $ | 1,220,661 | ||||
Selected Cash Flow Information (unaudited):
Three Months Ended | Twelve Months Ended | |||||||||||||||
(in thousands) | ||||||||||||||||
Cash provided by operating activities | $ | 22,737 | $ | 6,247 | $ | 100,338 | $ | 151,966 | ||||||||
Depreciation, amortization and accretion | $ | 10,262 | $ | 9,763 | $ | 35,193 | $ | 32,307 | ||||||||
Capital expenditures | $ | 4,566 | $ | 3,389 | $ | 19,840 | $ | 15,450 | ||||||||
Non-GAAP Financial Measures
(in thousands, except per-share amounts)
Our financial results include certain financial measures not derived in accordance with generally accepted accounting principles (GAAP). Non-GAAP financial measures should not be used as a substitute for GAAP measures, or considered in isolation, for the purpose of analyzing our operating performance, financial position or cash flows. Additionally, these non-GAAP measures may not be comparable to similarly titled measures reported by other companies. However, we have presented these non-GAAP financial measures because we believe this presentation, when reconciled to the corresponding GAAP measure, provides useful information to investors by offering additional ways of viewing our results, profitability trends, and underlying growth relative to prior and future periods and to our peers. Management uses these non-GAAP financial measures in making financial, operating, and planning decisions and in evaluating our performance. Non-GAAP financial measures may reflect adjustments for charges such as fair value adjustments, amortization, transaction costs, severance, accelerated depreciation, and other similar expenses related to acquisitions as well as other items that we believe are not related to our ongoing performance.
Adjusted Net Income:
Three Months Ended | Twelve Months Ended | |||||||||||||||
(unaudited) | 12/25/21* | 12/26/20* | 12/25/21* | 12/26/20* | ||||||||||||
Net income (GAAP) | $ | 34,080 | $ | 35,951 | $ | 131,532 | $ | 106,870 | ||||||||
Pretax acquisition-related intangible assets amortization [1] | 3,525 | 802 | 6,340 | 3,205 | ||||||||||||
Pretax acquisition-related transaction and other costs [2] | 6,897 | 2,363 | 15,072 | 4,527 | ||||||||||||
Pretax gain on equity method investment [3] | — | — | — | (2,498 | ) | |||||||||||
Pretax noncash impairment related to equity method investment [4] | — | — | — | 2,080 | ||||||||||||
Tax adjustment (related to above items) [5] | (2,402 | ) | (816 | ) | (4,589 | ) | (1,810 | ) | ||||||||
Tax benefit for reversal of deferred tax liability for equity method investment [6] | — | — | — | (813 | ) | |||||||||||
Adjusted net income (Non-GAAP) | $ | 42,100 | $ | 38,300 | $ | 148,355 | $ | 111,561 | ||||||||
Diluted earnings per share (GAAP) | $ | 1.07 | $ | 1.11 | $ | 4.12 | $ | 3.30 | ||||||||
Pretax acquisition-related intangible assets amortization [1] | 0.11 | 0.02 | 0.20 | 0.10 | ||||||||||||
Pretax acquisition-related transaction and other costs [2] | 0.22 | 0.07 | 0.47 | 0.14 | ||||||||||||
Pretax gain on equity method investment [3] | — | — | — | (0.08 | ) | |||||||||||
Pretax noncash impairment related to equity method investment [4] | — | — | — | 0.06 | ||||||||||||
Tax adjustment (related to above items) [5] | (0.08 | ) | (0.02 | ) | (0.14 | ) | (0.06 | ) | ||||||||
Tax benefit for reversal of deferred tax liability for equity method investment [6] | — | — | — | (0.03 | ) | |||||||||||
Adjusted diluted earnings per share (Non-GAAP) | $ | 1.33 | $ | 1.19 | $ | 4.64 | $ | 3.45 | ||||||||
Weighted average diluted shares outstanding | 31,726 | 32,310 | 31,961 | 32,373 |
* Amounts may not add due to rounding.
See accompanying notes at the end of this supplemental schedule.
Adjusted Gross Profit: | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
(unaudited) | Pct.** | Pct.** | ||||||||||||||
Gross profit (GAAP) | $ | 131,417 | 33.0 | $ | 111,370 | 37.0 | ||||||||||
Pretax acquisition-related transaction and other costs [2] | 6,372 | 1.6 | 29 | 0.0 | ||||||||||||
Adjusted gross profit (Non-GAAP) | $ | 137,789 | 34.6 | $ | 111,399 | 37.0 | ||||||||||
Net sales | $ | 398,176 | $ | 301,216 |
Twelve Months Ended | Twelve Months Ended | |||||||||||||||
(unaudited) | Pct.** | Pct.** | ||||||||||||||
Gross profit (GAAP) | $ | 462,916 | 34.4 | $ | 383,116 | 35.1 | ||||||||||
Pretax acquisition-related transaction and other costs [2] | 9,438 | 0.7 | 927 | 0.1 | ||||||||||||
Pretax noncash impairment related to equity method investment [4] | — | — | 2,080 | 0.2 | ||||||||||||
Adjusted gross profit (Non-GAAP) | $ | 472,354 | 35.1 | $ | 386,123 | 35.3 | ||||||||||
Net sales | $ | 1,345,249 | $ | 1,092,748 |
Adjusted SG&A Expenses: | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
(unaudited) | Pct.** | Pct.** | ||||||||||||||
SG&A expenses (GAAP) | $ | 86,316 | 21.7 | $ | 65,455 | 21.7 | ||||||||||
Pretax acquisition-related intangible assets amortization [1] | (3,525 | ) | (0.9 | ) | (802 | ) | (0.3 | ) | ||||||||
Pretax acquisition-related transaction and other costs [2] | (525 | ) | (0.1 | ) | (2,334 | ) | (0.8 | ) | ||||||||
Adjusted SG&A expenses (Non-GAAP) | $ | 82,266 | 20.7 | $ | 62,319 | 20.7 | ||||||||||
Net sales | $ | 398,176 | $ | 301,216 |
Twelve Months Ended | Twelve Months Ended | |||||||||||||||
(unaudited) | Pct.** | Pct.** | ||||||||||||||
SG&A expenses (GAAP) | $ | 291,365 | 21.7 | $ | 249,743 | 22.9 | ||||||||||
Pretax acquisition-related intangible assets amortization [1] | (6,340 | ) | (0.5 | ) | (3,205 | ) | (0.3 | ) | ||||||||
Pretax acquisition-related transaction and other costs [2] | (5,634 | ) | (0.4 | ) | (3,600 | ) | (0.3 | ) | ||||||||
Adjusted SG&A expenses (Non-GAAP) | $ | 279,391 | 20.8 | $ | 242,938 | 22.2 | ||||||||||
Net sales | $ | 1,345,249 | $ | 1,092,748 |
Adjusted Other Income, Net: | ||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
(unaudited) | Pct.** | Pct.** | ||||||||||||||
Other income, net (GAAP) | $ | 43 | 0.0 | $ | 100 | 0.0 | ||||||||||
Pretax gain on equity method investment [3] | — | — | — | — | ||||||||||||
Adjusted other income, net (Non-GAAP) | $ | 43 | 0.0 | $ | 100 | 0.0 | ||||||||||
Net sales | $ | 398,176 | $ | 301,216 |
Twelve Months Ended | Twelve Months Ended | |||||||||||||||
(unaudited) | Pct.** | Pct.** | ||||||||||||||
Other income, net (GAAP) | $ | 377 | 0.0 | $ | 2,962 | 0.3 | ||||||||||
Pretax gain on equity method investment [3] | — | — | (2,498 | ) | (0.2 | ) | ||||||||||
Adjusted other income, net (Non-GAAP) | $ | 377 | 0.0 | $ | 464 | 0.0 | ||||||||||
Net sales | $ | 1,345,249 | $ | 1,092,748 |
**Percentage of sales. Data may not add due to rounding.
[1] – Pretax acquisition-related intangible asset amortization results from allocating the purchase price of acquisitions to the acquired tangible and intangible assets of the acquired business and recognizing the cost of the intangible asset over the period of benefit. Such costs were
[2] – Pretax acquisition-related transaction and other costs include costs incurred to complete and integrate acquisitions, adjustments to contingent consideration obligations, inventory fair value adjustments and facility consolidation expenses. During the three months and twelve months ended
During the three months and twelve months ended
[3] – Pretax gain on equity method investment results from the acquisition of the remaining outstanding shares of a previously unconsolidated entity. The estimated fair value of the net assets acquired was more than the carry value of our prior investment in the entity. Such gain was
[4] – Pretax noncash impairment related to equity method investment represents our share of an impairment recognized by an equity investment investee. The adjustment was
[5] – Tax adjustments represent the aggregate tax effect of all non-GAAP adjustments reflected in the table above, and totaled
[6] – Tax benefit represents a reversal of a deferred tax liability related to an equity method investment which was converted to a consolidated subsidiary upon acquisition of the controlling interest. The benefit was
2022 Guidance:
The Company provided the following guidance ranges related to their fiscal 2022 outlook:
Year Ending | ||||||||
(unaudited) | Low End* | High End* | ||||||
Diluted earnings per share (GAAP) | $ | 4.94 | $ | 5.14 | ||||
Pretax acquisition-related intangible assets amortization | 0.37 | 0.37 | ||||||
Pretax acquisition transaction and other costs | 0.15 | 0.15 | ||||||
Tax adjustment (related to above items) | (0.12 | ) | (0.12 | ) | ||||
Adjusted diluted earnings per share (Non-GAAP) | $ | 5.35 | $ | 5.55 | ||||
Weighted average diluted shares outstanding | 31,700 | 31,700 |
* Amounts may not add due to rounding.
Source:
2022 GlobeNewswire, Inc., source