Net Sales (USD, thousands)

Cost of Goods Sold (USD, thousands)

Gross Profit (USD, thousands)

Selling, General and Administrative Expenses (USD, thousands)

Income from Operations (USD, thousands)

Interest Expense, Net (USD, thousands)

Other Income (Expense), Net (USD, thousands)

Income Before Income Taxes (USD, thousands)

Provision for Income Taxes (USD, thousands)

Net Income (USD, thousands)

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Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

79ade7a48c35c404419091c421ad020d33e33237aa2482eb545fa01222d9d47d

74da64e4a2e02c8f1477b9df3307e0ecf494cc1bc3a9d45bdf8a518782cf9e00

United States

Non-U.S.

Total Revenue

20617caeb79b890ae7269732cb26ef155614b0e6979092b5c473f1b51c6d925f

Net income (USD, thousands)

Depreciation, amortization and accretion (USD, thousands)

Fair value adjustment to contingent consideration (USD, thousands)

Provision for doubtful accounts (USD, thousands)

Provision for deferred income taxes (USD, thousands)

Provision for stock-based compensation (USD, thousands)

Cash provided by operating activities (USD, thousands)

Acquisition, net of cash acquired (USD, thousands)

Property, plant and equipment additions (USD, thousands)

Cash used in investing activities (USD, thousands)

Payments of revolving credit line (USD, thousands)

Payments of long-term debt (USD, thousands)

Payment of deferred acquisition consideration (USD, thousands)

Proceeds from exercise of stock options (USD, thousands)

Purchase and cancellation of common stock (USD, thousands)

Other stock-related activity (USD, thousands)

Cash used in financing activities (USD, thousands)

Effect of exchange rate changes on Cash and Cash Equivalents (USD, thousands)

Net Increase (Decrease) in Cash and Cash Equivalents (USD, thousands)

Cash paid for interest expense (USD, thousands)

Cash paid for income taxes (USD, thousands)

Accounts receivable (USD, thousands)

Inventories (USD, thousands)

Prepaids and other current assets (USD, thousands)

Other assets (USD, thousands)

Accounts payable (USD, thousands)

Accrued customer rebates and returns (USD, thousands)

Accrued compensation and other liabilities (USD, thousands)

Cash and Cash Equivalents, Beginning of Period (USD, thousands)

Cash and Cash Equivalents, End of Period (USD, thousands)

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Cash and cash equivalents (USD, thousands)

Accounts receivable, less allowance for doubtful accounts (USD, thousands)

Total current assets (USD, thousands)

Property, plant and equipment, net (USD, thousands)

Operating lease right-of-use assets (USD, thousands)

Goodwill (USD, thousands)

Intangible assets, net (USD, thousands)

Total assets (USD, thousands)

Accrued compensation (USD, thousands)

Revolving credit facility (USD, thousands)

Current portion of long-term debt (USD, thousands)

Other accrued liabilities (USD, thousands)

Total current liabilities (USD, thousands)

Long-term debt (USD, thousands)

Long-term operating lease liabilities (USD, thousands)

Other long-term liabilities (USD, thousands)

Deferred tax liabilities, net (USD, thousands)

Common stock (USD, thousands)

Additional paid-in capital (USD, thousands)

Retained earnings (USD, thousands)

Accumulated other comprehensive loss (USD, thousands)

Total shareholders’ equity (USD, thousands)

Total liabilities and shareholders' equity (USD, thousands)

741d7edede18f93687bb8800c019fa4efd33c21b3724f89cb28b3528b3756078

The jump in cash in Q2 2024 was mainly driven by **strong operating cash flows**. Specifically, Dorman Products, Inc. generated **$115,329 thousand** from operating activities, which was **$22,443 thousand higher** than the previous period. This robust inflow more than offset the cash outflows resulting from investing activities (mainly for property, plant, and equipment additions) and financing activities (including share repurchases and debt repayments), with a minor negative impact from foreign exchange amounting to **$58 thousand**.  **[0000868780-24-000033_dorm-20240629.htm:2]** **[0000868780-24-000033_dorm-20240629.htm:22]** **[0000868780-24-000033_dorm-20240629.htm:5]** 

What contributed to the jump in cash in Q2 2024?

The total assets dipped in Q1 2024 because several components of current assets declined. In particular, **accounts receivable** fell from **$526,867 thousand** to **$486,352 thousand**, **inventories** decreased from **$637,375 thousand** to **$619,972 thousand**, and **prepaids and other current assets** dropped from **$32,653 thousand** to **$22,062 thousand**.  **[0000868780-24-000020_dorm-20240330.htm:2]** 

Why did total assets dip in Q1 2024?

The sizable decline in the revolving credit facility by Q3 2024 was primarily due to a **repayment of $31,000 thousand** during the nine months ended September 28, 2024. This repayment was part of the company's broader financing activities aimed at reducing outstanding borrowings under the revolving credit facility as an element of its **capital allocation strategy**.  **[0000868780-24-000039_dorm-20240928.htm:24]** **[0000868780-24-000039_dorm-20240928.htm:5]** 

What caused the sizable decline in the revolving credit facility by Q3 2024?

The documents indicate that the **current portion of long-term debt** increased from **$15,625 thousand** at the end of Q4 2023 to **$18,750 thousand** in Q3 2024. However, **no specific reasons** for this increase are provided in the available documents. It is suggested that the increase may be due to scheduled repayments of long-term debt becoming due within the next 12 months, although this is not explicitly confirmed in the documents.  **[0000868780-24-000039_dorm-20240928.htm:2]** **[0000868780-24-000037_dorm-2024928xexx991.htm:3]** 

Why did the current portion of long-term debt increase in Q3 2024?

654096749ecb1ab88d4ba643fa56af9bb9212c0e4b023e5db5c71788461d1494

The surge in operating cash flow in FY 2023 was primarily driven by a **shift in working capital**—notably a reduction in inventory levels that converted cash outflows into inflows—and by **higher income**, which together contributed to the substantial increase in cash provided by operating activities.  **[0000868780-24-000011_dorm-20231231.htm:59]** 

What drove the surge in operating cash flow in FY 2023?

The nearly doubled operating cash flow in Q1 2024 was primarily driven by a **significant increase in net income**, which jumped from **$5,683 thousand in Q1 2023** to **$32,828 thousand in Q1 2024**. This enhanced profitability led to an increase of approximately **$25.8 million** in cash provided by operating activities.  **[0000868780-24-000020_dorm-20240330.htm:19]** **[0000868780-24-000020_dorm-20240330.htm:4]** 

What factors contributed to nearly doubling operating cash flow in Q1 2024?

In Q3 2024, operating cash flow dropped primarily because **higher inventory levels** negatively impacted the cash flow and because **working capital changes** (including variations in accounts receivable, accounts payable, and accrued liabilities) offset the positive effects of higher net income during the quarter.  **[DORM_3405418_5]** 

Why did operating cash flow drop in Q3 2024?

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The significantly high **Income from Operations** in **Q4 2023** was primarily driven by several factors. **Gross margin improvement** played a key role as adjusted gross margin increased to **39.3%** (up from **32.8%** in Q4 2022) due to **lower-cost inventory**, **cost-saving initiatives**, and **pricing actions** to offset inflation.  **[DORM_3375283_3]** **[0000868780-24-000006_dorm-20231231xexx991.htm:0]**  Additionally, despite a slight increase in absolute **SG&A expenses**, the efficiency relative to net sales was maintained.  **[0000868780-24-000006_dorm-20231231xexx991.htm:0]**  The strong performance of segments, especially the **Light Duty Segment** where the operating margin improved markedly to **16.6%** from **9.4%** year-over-year, also contributed significantly.  **[0000868780-24-000006_dorm-20231231xexx991.htm:1]** **[0000868780-24-000006_exhibit992recasthistorical.htm:0]** 

Why was Income from Operations so high in Q4 2023?

The significant jump in **Net Income** in Q1 2024 was primarily driven by a combination of factors. **Improved Gross Profit** played a major role, as it increased significantly thanks to a **630 basis point improvement in adjusted gross margin** to **38.7%**, alongside effective pricing actions and cost savings. Additionally, **cost management** was enhanced, with adjusted SG&A expenses improving from **25.2% to 24.9%** of net sales, and **operating income** surged by **92% year-over-year** due to these efficiencies. The company also benefited from **lower interest expense** stemming from consecutive quarters of debt repayment, and although the effective tax rate increased, the higher pre-tax income more than compensated for this impact.  **[0000868780-24-000018_dorm-2024330xexx991.htm:0]** **[DORM_3386752_4]** **[0000868780-24-000020_dorm-20240330.htm:8]** 

What drove the significant jump in Net Income in Q1 2024?

The swing to a positive Other Income figure in Q3 2024 was primarily driven by **joint venture income**, which significantly boosted the results compared to Q3 2023.  **[0000868780-24-000039_dorm-20240928.htm:2]** **[DORM_3405418_12]** 

Why did Other Income swing to a positive value in Q3 2024?

40122fa886b3dead54543fd9a187f4f1fbe0753e1ef5cc29ce9d7cfe0da11bcb

2e2c83c6a5b7f3ffe05ddf5808875f3e5ca2b00be62fe52b79f7f36f5a60b611

Dorman Products Inc (DORM)

Financials