On February 26, 2024, Dorman Products Inc (DORM, Financial) released its 8-K filing, announcing its financial results for the fourth quarter and full year ended December 31, 2023. Dorman, a leading supplier in the motor vehicle aftermarket industry, reported a slight decrease in net sales for the quarter, attributed to an extra week in the prior year period. However, excluding this impact, net sales would have seen a 3% increase.
Dorman's President and CEO, Kevin Olsen, highlighted the company's record profits and robust cash flow, driven by a significant improvement in gross margin, which increased 780 basis points year-over-year. The company's focus on reducing debt was evident with $30 million repaid in the quarter and $159 million for the full year. Additionally, Dorman repurchased $15 million of its stock under the share repurchase program.
Financial Performance Breakdown
The fourth quarter saw Dorman's gross profit reach $194.2 million, or 39.3% of net sales, compared to $157.8 million in the same quarter last year. Selling, general and administrative (SG&A) expenses decreased as a percentage of net sales to 23.7% from 24.9%. The company's Light Duty segment maintained its strength, while the Heavy Duty and Specialty Vehicle segments faced challenges.
For the full year, Dorman achieved net sales of $1.93 billion, an 11% increase from the previous year. Gross profit for the year was $685.4 million, or 35.5% of net sales, up from 32.6% in the prior year. SG&A expenses increased in absolute terms but remained consistent as a percentage of net sales.
Diluted EPS for the full year was $4.10, a 6% increase from the previous year, while adjusted diluted EPS was $4.54, reflecting a 5% decrease. The company's guidance for 2024 anticipates continued growth in net sales and earnings per share.
Segment and Balance Sheet Highlights
The Light Duty segment's profit margin improved significantly in Q4, while the Heavy Duty and Specialty Vehicle segments experienced declines in segment profit margins. The balance sheet remains strong with $36.8 million in cash and cash equivalents and a reduction in total current liabilities.
Investors can access a replay of the webcast and accompanying presentation materials on the company's website, which provides further details on the financial results and outlook for 2024.
Dorman Products Inc (DORM, Financial) continues to demonstrate its ability to navigate market challenges and capitalize on its strengths, positioning itself for sustained growth in the competitive motor vehicle aftermarket industry.
Explore the complete 8-K earnings release (here) from Dorman Products Inc for further details.
