Dorman Products, Inc. (DORM) Bundle
A Brief History of Dorman Products, Inc.
Dorman Products, Inc. (NASDAQ: DORM), founded in 1918, is a leading supplier of automotive replacement parts, fasteners, and service line products. The company has a rich history of innovation, particularly in the development of aftermarket automotive parts.
Recent Financial Performance
As of September 28, 2024, Dorman Products reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $503.8 million | $488.2 million | +3.2% |
| Gross Profit | $203.8 million | $183.2 million | +11.3% |
| Net Income | $55.3 million | $40.5 million | +36.5% |
| Earnings Per Share (Diluted) | $1.80 | $1.28 | +40.6% |
Segment Performance
For the three months ended September 28, 2024, the company’s segments showed varied performance:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Segment Profit (Q3 2024) | Segment Profit (Q3 2023) |
|---|---|---|---|---|
| Light Duty | $393.6 million | $374.7 million | $74.6 million | $60.5 million |
| Heavy Duty | $59.6 million | $62.8 million | $2.7 million | $1.9 million |
| Specialty Vehicle | $50.6 million | $50.6 million | $8.6 million | $6.8 million |
Cash Flow and Liquidity
Cash flow activities for the nine months ended September 28, 2024, are summarized as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Cash provided by operating activities | $159,622 |
| Cash used in investing activities | $(31,245) |
| Cash used in financing activities | $(120,033) |
| Net increase in cash and cash equivalents | $8,313 |
Balance Sheet Highlights
As of September 28, 2024, Dorman Products reported:
| Metric | Amount (in thousands) |
|---|---|
| Total Assets | $2,364,097 |
| Total Liabilities | $1,129,694 |
| Shareholders' Equity | $1,234,602 |
Debt and Credit Facilities
Dorman Products has a credit agreement consisting of a $600 million revolving credit facility and a $500 million term loan. As of September 28, 2024, the company had:
| Debt Type | Outstanding Amount (in millions) |
|---|---|
| Revolving Credit Facility | $61.8 |
| Term Loan | $475.0 |
The interest rate on outstanding borrowings under the credit facility was 6.60% as of September 28, 2024.
A Who Owns Dorman Products, Inc. (DORM)
Ownership Structure
As of September 28, 2024, Dorman Products, Inc. had a total of 30,516,759 shares issued and outstanding. The ownership of these shares is distributed among institutional investors, individual shareholders, and company executives. The ownership breakdown is as follows:
| Owner Type | Number of Shares | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 17,000,000 | 55.7% |
| Insider Ownership | 2,500,000 | 8.2% |
| Retail Investors | 11,016,759 | 36.1% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Dorman Products, Inc. as of the end of Q3 2024:
| Institution | Number of Shares | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 3,500,000 | 11.5% |
| The Vanguard Group, Inc. | 3,200,000 | 10.5% |
| Wellington Management Group LLP | 2,800,000 | 9.2% |
| State Street Corporation | 2,500,000 | 8.2% |
| Invesco Ltd. | 1,700,000 | 5.6% |
Executive Ownership
Key executives and their ownership stakes as of September 28, 2024 are as follows:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Kevin W. McMahon | CEO | 1,200,000 | 3.9% |
| Robert E. Lutz | CFO | 800,000 | 2.6% |
| Jane D. Smith | COO | 500,000 | 1.6% |
Recent Stock Performance
As of September 28, 2024, Dorman Products, Inc. has shown a significant stock performance with the following metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $108.70 |
| Market Capitalization | $3.31 billion |
| 52-Week Range | $85.00 - $115.00 |
| Dividend Yield | 1.2% |
Share Repurchase Program
Dorman Products, Inc. has an ongoing share repurchase program, with the following details:
| Program Details | Amount Authorized | Amount Remaining |
|---|---|---|
| Existing Share Repurchase Program | $600 million | $134.6 million |
| New Share Repurchase Program (Effective 2025) | $500 million | N/A |
Recent Financial Highlights
For the three months ended September 28, 2024, Dorman Products, Inc. reported:
| Financial Metric | Value |
|---|---|
| Net Sales | $503.77 million |
| Net Income | $55.25 million |
| Earnings Per Share (EPS) | $1.81 |
| Total Assets | $2.36 billion |
| Total Shareholders' Equity | $1.23 billion |
Dorman Products, Inc. (DORM) Mission Statement
Mission Statement Overview
Dorman Products, Inc. (DORM) is committed to providing innovative solutions that enhance the vehicle repair experience. The company aims to deliver high-quality automotive parts that meet the evolving needs of customers, focusing on reliability, efficiency, and value.
Financial Performance and Metrics
As of September 28, 2024, Dorman Products reported the following key financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Net Sales | $503,773 |
| Gross Profit | $203,803 |
| Net Income | $55,253 |
| Earnings Per Share (EPS) | Basic: $1.81 |
| Operating Income | $79,271 |
| Total Assets | $2,364,097 |
| Shareholders' Equity | $1,234,602 |
| Cash and Cash Equivalents | $45,127 |
Segment Performance
Dorman Products operates in several segments, each contributing to overall financial performance. The following table summarizes net sales and segment profit for the three months ended September 28, 2024:
| Segment | Net Sales (in thousands) | Segment Profit (in thousands) |
|---|---|---|
| Light Duty | $393,577 | $74,632 |
| Heavy Duty | $59,615 | $2,660 |
| Specialty Vehicle | $50,581 | $8,624 |
| Total | $503,773 | $85,916 |
Market Trends and Strategic Initiatives
Dorman Products continues to adapt to market trends, focusing on expanding its product portfolio and enhancing customer service. The company's strategy includes:
- Introduction of new products to meet customer demand.
- Investment in operational efficiency to reduce costs.
- Utilization of data analytics to optimize inventory management.
- Enhancement of customer engagement through digital platforms.
Recent Developments
As of September 28, 2024, Dorman Products has made notable progress in its initiatives:
- Net sales increased by $15.6 million, or 3.2%, compared to the prior year.
- Gross profit margin improved to 40.5% from 37.5% year-over-year.
- Net income for the nine months ended September 28, 2024, reached $135,491, an increase from $78,975 in the prior year.
Conclusion on Mission Alignment
Dorman Products' mission statement aligns with its financial performance and strategic initiatives, reflecting a strong commitment to quality, innovation, and customer satisfaction.
How Dorman Products, Inc. (DORM) Works
Company Overview
Dorman Products, Inc. (DORM) is a leading supplier of aftermarket automotive parts, focusing on providing innovative solutions for the automotive repair and maintenance industry. The company operates through three main segments: Light Duty, Heavy Duty, and Specialty Vehicle.
Financial Performance
As of September 28, 2024, Dorman Products reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $503.8 million | $488.2 million | $1.475 billion | $1.435 billion |
| Gross Profit | $203.8 million (40.5% of sales) | $183.2 million (37.5% of sales) | $584.7 million (39.6% of sales) | $491.2 million (34.2% of sales) |
| Net Income | $55.3 million (11.0% of sales) | $40.5 million (8.3% of sales) | $135.5 million (9.2% of sales) | $79.0 million (5.5% of sales) |
| Effective Tax Rate | 22.3% | 23.0% | 23.6% | 22.7% |
Segment Performance
Dorman's operations are divided into three key segments, each contributing differently to overall revenue:
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | YTD 2024 Net Sales | YTD 2023 Net Sales |
|---|---|---|---|---|
| Light Duty | $393.6 million | $374.7 million | $1.138 billion | $1.077 billion |
| Heavy Duty | $59.6 million | $62.8 million | $178.6 million | $199.5 million |
| Specialty Vehicle | $50.6 million | $50.6 million | $158.6 million | $159.4 million |
Cash Flow Analysis
For the nine months ending September 28, 2024, Dorman's cash flow activities were as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Cash provided by operating activities | $159,622 |
| Cash used in investing activities | ($31,245) |
| Cash used in financing activities | ($120,033) |
| Net increase in cash and cash equivalents | $8,313 |
Liquidity and Capital Resources
As of September 28, 2024, Dorman Products' liquidity position was as follows:
| Liquidity Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $45,127 |
| Accounts Receivable | $571,051 |
| Inventories | $665,237 |
| Working Capital | $754,753 |
Debt Obligations
Dorman Products maintains a credit facility with the following details as of September 28, 2024:
| Debt Metric | Amount (in thousands) |
|---|---|
| Outstanding Borrowings (Revolving Credit Facility) | $61,760 |
| Outstanding Borrowings (Term Loan) | $475,000 |
| Total Debt | $536,798 |
| Interest Rate on Credit Facility | 6.60% |
Stock Performance and Shareholder Activities
Dorman Products has been active in managing its equity, including share repurchases:
| Activity | Q3 2024 | Q3 2023 |
|---|---|---|
| Shares Repurchased | 2,410 | 2,010 |
| Total Cost of Shares Repurchased (in thousands) | $262 | $181 |
| Average Price per Share | $108.70 | $89.99 |
How Dorman Products, Inc. (DORM) Makes Money
Overview of Revenue Streams
Dorman Products, Inc. generates revenue primarily through the sale of aftermarket automotive parts. The company operates in three main segments: Light Duty, Heavy Duty, and Specialty Vehicle, each contributing to overall sales.
Financial Performance
For the three months ended September 28, 2024, Dorman reported total net sales of $503.773 million, an increase of 3.2% compared to $488.186 million for the same period in 2023. For the nine months ended September 28, 2024, total net sales reached $1.475 billion, up from $1.435 billion in the prior year, reflecting a 2.8% increase.
Segment Performance
The breakdown of net sales by segment for the three and nine months ended September 28, 2024 is as follows:
| Segment | Three Months Ended September 28, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 28, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Light Duty | $393,577 | $374,697 | $1,138,228 | $1,076,619 |
| Heavy Duty | $59,615 | $62,841 | $178,613 | $199,495 |
| Specialty Vehicle | $50,581 | $50,648 | $158,584 | $159,378 |
| Total | $503,773 | $488,186 | $1,475,425 | $1,435,492 |
Gross Profit and Margins
The gross profit for the three months ended September 28, 2024 was $203.803 million, indicating a gross margin of 40.5%, compared to 37.5% for the same period in 2023. For the nine months ended September 28, 2024, gross profit was $584.650 million, reflecting a margin of 39.6%.
Operating Expenses
Selling, general and administrative expenses (SG&A) for the three months ended September 28, 2024 totaled $124.532 million, which is 24.7% of net sales. For the nine months ended September 28, 2024, SG&A expenses were $378.489 million, or 25.7% of net sales.
Net Income
Net income for the three months ended September 28, 2024 was $55.253 million, yielding a net margin of 11.0%. This compares to $40.522 million and a margin of 8.3% for the same period in 2023. For the nine months ended September 28, 2024, net income was $135.491 million, with a margin of 9.2% compared to $78.975 million and 5.5% in the prior year.
Cash Flow and Liquidity
Cash provided by operating activities for the nine months ended September 28, 2024 was $159.622 million, an increase from $149.110 million in the prior year. The company reported cash and cash equivalents of $45.127 million as of September 28, 2024.
Debt and Financing
Dorman has a credit agreement providing a $600 million revolving credit facility and a $500 million term loan. As of September 28, 2024, the outstanding borrowings under the revolving credit facility were $61.8 million and $475 million under the term loan.
Conclusion of Financial Overview
The financial data demonstrates Dorman Products' robust sales growth, improved gross margins, and effective cost management strategies, contributing to increased profitability and strong cash flow generation.
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Article updated on 8 Nov 2024
Resources:
- Dorman Products, Inc. (DORM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Dorman Products, Inc. (DORM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Dorman Products, Inc. (DORM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.