Dorman Products Reports Strong Q3 and Nine-Month Fiscal 2024 Results with Increased Sales, Gross Profit, and Net Income

Dorman Products, Inc. reported a solid financial performance for the third quarter and the first nine months of fiscal 2024, with notable increases in net sales, gross profit, and net income compared to the same periods in the previous year.

For the three months ended September 28, 2024, net sales reached $503.8 million, a 3.2% increase from $488.2 million for the three months ended September 30, 2023. For the nine-month period, net sales totaled $1.475 billion, up 2.8% from $1.435 billion in the prior year. The growth in sales was primarily driven by volume increases and new product introductions, particularly in the Light Duty segment, which saw a 5.0% increase in sales for the quarter and a 5.7% increase for the nine months.

Gross profit for the third quarter was $203.8 million, representing 40.5% of sales, compared to $183.2 million (37.5% of sales) in the prior year. For the nine months, gross profit increased to $584.7 million (39.6% of sales) from $491.2 million (34.2% of sales). This improvement was attributed to the sale of lower-cost inventory and cost-saving initiatives.

Income from operations for the third quarter rose to $79.3 million (15.7% of sales), up from $64.2 million (13.2% of sales) in the previous year. For the nine months, income from operations increased to $206.2 million (14.0% of sales) from $137.5 million (9.6% of sales). Net income for the third quarter was $55.3 million, compared to $40.5 million in the prior year, while for the nine months, net income rose to $135.5 million from $79.0 million.

The company’s effective tax rate decreased to 22.3% for the third quarter but increased to 23.6% for the nine months. Selling, general, and administrative (SG&A) expenses increased by $5.5 million for the third quarter and $24.8 million for the nine months, primarily due to higher compensation and benefits costs.

Dorman Products continues to focus on new product development, having introduced 4,498 new distinct parts in the nine months ended September 28, 2024. The company operates through three segments: Light Duty, Heavy Duty, and Specialty Vehicle, with the Light Duty segment showing significant growth.

As of September 28, 2024, cash and cash equivalents stood at $45.1 million, up from $36.8 million at the end of 2023. The company also reported total assets of $2.364 billion and total shareholders’ equity of $1.235 billion. The company has a revolving credit facility of $600 million and a term loan of $500 million, with outstanding borrowings of $61.8 million and $475 million, respectively.

Dorman Products has also authorized a new share repurchase program for up to $500 million, effective from January 1, 2025, through December 31, 2027, following the repurchase of 855,971 shares at a total cost of $78.1 million in the nine months ended September 28, 2024.