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Dorman Products (DORM)

Dorman gives repair professionals and vehicle owners greater freedom to fix cars and trucks by focusing on solutions first. For more than 100 years, Dorman has been one of the automotive aftermarket’s pioneering problem solvers, releasing tens of thousands of replacement products engineered to save time and money, and increase convenience and reliability. Founded and headquartered in the United States, Dorman is a global organization offering more than 80,000 parts, covering both light duty and heavy-duty vehicles, from chassis to body, from underhood to undercar, and from hardware to complex electronics.

Company profile

Ticker
DORM
Exchange
CEO
Kevin M. Olsen
Employees
Incorporated
Location
Fiscal year end
Former names
R & B INC
SEC CIK
Subsidiaries
RB Distribution, Inc. • RB Management, Inc. • DPL Holding Corporation • DPL Acquisition Corporation • Dayton Parts, LLC ...
IRS number
232078856

DORM stock data

Calendar

25 Jul 22
20 Aug 22
28 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 51.97M 51.97M 51.97M 51.97M 51.97M 51.97M
Cash burn (monthly) 487K 8.63M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 899.2K 15.94M n/a n/a n/a n/a
Cash remaining 51.07M 36.03M n/a n/a n/a n/a
Runway (months of cash) 104.9 4.2 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
7 Aug 22 Jeffery Darby Common Stock Payment of exercise Dispose F No No 98.09 435 42.67K 20,611
1 Jun 22 Gavin John J Common Stock Grant Acquire A No No 0 1,223 0 11,228
1 Jun 22 Bachmann Lisa M Common Stock Grant Acquire A No No 0 1,223 0 2,977
1 Jun 22 Riley Richard T Common Stock Grant Acquire A No No 0 1,223 0 25,081
1 Jun 22 Romano Kelly A Common Stock Grant Acquire A No No 0 1,223 0 6,941
75.2% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 253 252 +0.4%
Opened positions 33 26 +26.9%
Closed positions 32 36 -11.1%
Increased positions 75 96 -21.9%
Reduced positions 109 86 +26.7%
13F shares Current Prev Q Change
Total value 2.61B 2.25B +16.3%
Total shares 23.65M 23.63M +0.1%
Total puts 16K 17.6K -9.1%
Total calls 40.2K 48.4K -16.9%
Total put/call ratio 0.4 0.4 +9.5%
Largest owners Shares Value Change
BLK Blackrock 4.2M $461.17M -1.3%
Vanguard 2.97M $326.39M +0.8%
TROW T. Rowe Price 1.1M $120.56M +26.4%
Eaton Vance Management 957K $104.99M +11.9%
STT State Street 936.02K $102.69M -0.0%
Dimensional Fund Advisors 804.09K $88.21M +0.1%
Royce & Associates 653.93K $71.74M +16.0%
Atlanta Capital Management Co L L C 613.94K $67.36M -4.2%
SLFPY Standard Life Aberdeen 565.46K $62.04M -4.7%
IVZ Invesco 521.74K $57.24M +11.1%
Largest transactions Shares Bought/sold Change
TROW T. Rowe Price 1.1M +229.44K +26.4%
Voya Investment Management 207.47K +131.41K +172.8%
AMP Ameriprise Financial 483.82K +115.02K +31.2%
Eaton Vance Management 957K +101.99K +11.9%
Millennium Management 73.05K -94.92K -56.5%
Parametric Portfolio Associates 0 -93.18K EXIT
MS Morgan Stanley 254.66K +92.91K +57.4%
Royce & Associates 653.93K +90.09K +16.0%
LGEN Legal & General 0 -84.36K EXIT
Renaissance Technologies 85.4K +60.2K +238.9%

Financial report summary

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Risks
  • Our industry is highly competitive, and our success depends on our ability to compete with suppliers of automotive aftermarket products, some of which may have substantially greater financial, marketing and other resources than we do.
  • Customer consolidation in the automotive aftermarket industry may lead to customer contract terms less favorable to us, which may negatively impact our financial results.
  • Our business, results of operations and financial condition could be materially adversely affected by the effects of widespread public health epidemics, including COVID-19, that are beyond our control.
  • Our operations would be materially and adversely affected if we are unable to purchase raw materials, finished goods, equipment, manufactured components, or “core” products from our suppliers.
  • Our operating results are sensitive to the availability and cost of third-party transportation providers, which are important in the manufacture and transport of our products.
  • Significant inflation could adversely affect our business and financial results.
  • Changes in U.S. trade policy, including the imposition of tariffs and the resulting consequences, could adversely affect our results of operations.
  • If we do not continue to develop new products and bring them to market, our business, financial condition and results of operations could be materially impacted.
  • We may be adversely impacted by changes in, or restrictions on access to, automotive technology.
  • Design and quality problems with our products could damage our reputation and adversely affect our business.
  • Cyber-attacks or other breaches of information technology security could adversely impact our business and operations.
  • We are dependent, in part, on our intellectual property. If we are not able to protect our proprietary rights or if those rights are invalidated or circumvented, our business may be adversely affected.
  • Claims of intellectual property infringement by original equipment manufacturers and others could adversely affect our business and negatively impact our ability to develop new products.
  • Failure to maintain the value of our brands could have an adverse effect on our reputation, cause us to incur significant costs and negatively impact our business.
  • We extend credit to our customers, some of whom may be unable to pay in the future.
  • We are exposed to risks related to accounts receivable sales agreements.
  • The phaseout of the London Interbank Offered Rate (LIBOR), or the replacement of LIBOR with a different reference rate, may have an adverse effect on our business.
  • Dorman’s Executive Chairman and his family members own a significant portion of the Company.
  • Unfavorable economic conditions may adversely affect our business.
  • Unfavorable results of legal proceedings could materially adversely affect us.
  • The market price of our common stock may be volatile and could expose us to securities class action litigation.
  • Our growth may be impacted by acquisitions. We may not be able to identify suitable acquisition candidates, complete acquisitions or integrate acquisitions successfully.
  • Changes in tax laws or exposure to additional income tax liabilities could have a material adverse effect upon our business, financial condition and results of operations.
  • Global climate change and related regulations could negatively affect our business.
  • We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar anti-bribery laws around the world.
  • Our products are subject to import and export controls in jurisdictions in which we distribute or sell our products. Import and export controls and economic sanctions laws and regulations include restrictions and prohibitions on the sale or supply of certain products and on our transfer of parts, components, and related technical information and know-how to certain countries, regions, governments, persons and entities.
Management Discussion
  • Net sales increased 23% to $1,345.2 million in fiscal 2021 from $1,092.7 million in fiscal 2020. The increase in net sales reflected the addition of Dayton Parts as well as robust customer demand across all our product channels. Year-over-year net sales growth excluding Dayton Parts for fiscal 2021 was 16%. The absence of the government imposed shut-downs that negatively impacted fiscal 2020 was also a significant contributor to the year-over-year growth.
  • Gross profit margin was 34.4% of net sales in fiscal 2021 compared to 35.1% of net sales in fiscal 2020. Gross margin contraction was driven by broad-based inflationary impacts due to global transportation and logistics constraints and higher costs from fair value adjustments to inventory recorded in connection with the Dayton Parts acquisition in fiscal 2021. These factors were partially offset by cost saving initiatives and price increases. Additionally, we benefitted from the absence of out-of-pocket costs incurred due to the COVID-19 pandemic in fiscal 2020.
  • Selling, general and administrative expenses were $291.4 million, or 21.7% of net sales, in fiscal 2021 compared to $249.7 million, or 22.9% of net sales, in fiscal 2020. The decrease in SG&A as a percentage of net sales was due to the operating leverage from the $252.5 million increase in net sales in fiscal 2021 as compared to fiscal 2020. Additionally, we saw benefits in SG&A as a percentage of net sales from the absence of out-of-pocket costs related to the COVID-19 pandemic incurred in fiscal 2020. These benefits were partially offset by wage and benefits inflation and costs related to the completion of the Dayton Parts acquisition and subsequent integration activities in fiscal 2021.

Content analysis

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H.S. freshman Avg
New words: component, deal, eligible, extension, Jersey, key, motor, transition, usage
Removed: adjust, alter, closely, combat, determine, environment, foregoing, fulfill, maintain, reduced, reverse, sponsored, spread, staffing, world