Fri, Aug 2, 11:36 AM (225 days ago)
Dorman Products, Inc. reported a strong quarter ending June 29, 2024, with net sales increasing by 5% to $502.95 million, driven primarily by growth in the Light Duty segment. Gross profit margins improved significantly by 560 basis points due to easing inflation and cost-saving initiatives. SG&A expenses rose by $18.6 million, partly due to a favorable $12.4 million fair value adjustment in the prior year. Net income surged to $47.41 million from $32.77 million in the prior year, reflecting increased profitability. Cash flow from operations was robust at $115.33 million, up from $92.89 million, despite higher SG&A costs. The company continues to manage its liquidity well, with $47.47 million in cash and equivalents and $529 million available under its revolving credit facility. However, uncertainties in the heavy-duty and specialty vehicle markets and higher interest rates remain concerns. Future performance will depend on continued cost management and market conditions.