Dorman Products Inc (DORM) 2024 Q4 法說會逐字稿

(Operator Instructions). Please note that this conference is being recorded. I'd now like to turn the conference over to Alex Whitelam, Vice President of Investor Relations. Sir, please go ahead.

（操作員指令）。請注意，本次會議正在錄製。現在，我想將會議交給投資人關係副總裁 Alex Whitelam。先生，請繼續。

Thank you. Good morning everyone, welcome to Dorman's 4th quarter 2024 earnests conference call. I'm joined by Kevin Olsen, Dorman's Chief Executive Officer,; and David Hession, Dorman's Chief Financial Officer.

謝謝。大家早安，歡迎參加 Dorman 2024 年第四季誠意電話會議。與我一起參加的是 Dorman 執行長 Kevin Olsen；以及 Dorman 財務長 David Hession。

Kevin will share updates on the business, and David will review the quarterly results and our guidance for 2025. Kevin will then close our prepared remarks before opening the call for questions.

Kevin 將分享業務最新進展，David 將回顧季度業績和我們對 2025 年的指導。然後，凱文將結束我們準備好的發言，然後開始提問。

By now everyone should have access to our earnings release and earnings call presentation, which are available on the investor relations portion of our website at dormantproducts.com.

現在每個人都應該可以存取我們的收益報告和收益電話會議演示文稿，這些都可以在我們網站 dormantproducts.com 的投資者關係部分找到。

Before we begin, I'd like to remind everyone that our prepared remarks, earnings relief, and investor presentation include forward-looking statements within the meaning of federal securities laws. We advise listeners to review the risk factors and cautionary statements in our most recent 10-Q and 10-K, and earnings release for important material assumptions, expectations and factors that may cause actual results to differ materially from those anticipated and described in such forward-looking statements.

在我們開始之前，我想提醒大家，我們準備好的評論、收益預告和投資者介紹包括聯邦證券法所定義的前瞻性陳述。我們建議聽眾閱讀我們最近的 10-Q 和 10-K 以及收益報告中的風險因素和警示聲明，以了解重要的實質假設、預期和因素，這些假設、預期和因素可能導致實際結果與此類前瞻性聲明中預期和描述的結果存在重大差異。

We'll also reference certain non-gap measures. Reconciliations of these non-gap measures to the most directly comparable GAAP measures are contained in the schedules attached to our earnings release and in the appendix to this earnings call presentation, both of which can be found on the investor relations section of Dorman's website.

我們也將參考某些非差距措施。這些非差距指標與最直接可比較的 GAAP 指標的對帳表包含在我們的收益報告附表中以及本收益電話會議報告的附錄中，這兩份文件都可以在 Dorman 網站的投資者關係部分找到。

Finally, during the Q&A portion of today's call, we ask that participants limit themselves to one question with one follow-up and to rejoin the queue if they have additional questions.

最後，在今天電話會議的問答環節，我們要求參與者只提出一個問題並進行一次後續提問，如果有其他問題，請重新加入隊列。

And with that, I'll turn the call over to Kevin.

說完這些，我會把電話轉給凱文。

Thanks, Alex. Good morning and thank you for joining our 4th quarter 2024 earnings call.

謝謝，亞歷克斯。早安，感謝您參加我們的 2024 年第四季財報電話會議。

As Alex mentioned, I'll start out with a high-level review of the results. I'll also cover the keys to our success and our strategic focus areas for 2025, along with observations within each of our segments.

正如亞歷克斯所提到的，我將首先對結果進行高層次的審查。我還將介紹我們成功的關鍵和 2025 年的策略重點領域，以及我們每個部門的觀察。

With that, let me begin on slide 3 with a few highlights from the year.

那麼，請允許我從第三張投影片開始介紹今年的一些亮點。

Our financial performance in 2024 was outstanding. We surpassed the $2 billion of annual sales mark for the first time in our history, growing net sales by 4.1% year over year. This net sales growth was driven by strong demand in our light duty segment which benefited from recently introduced new products.

我們 2024 年的財務表現非常出色。我們的年銷售額首次突破 20 億美元大關，淨銷售額較去年同期成長 4.1%。淨銷售額的成長得益於我們輕型車市場的強勁需求，這得益於我們最近推出的新產品。

While market pressures weighed on the results of our other segments, specialty vehicle drove slight growth after a positive sales inflection late in the year, and heavy duty invested in improving customer experience and new product development, which positions them well for when the market rebounds.

雖然市場壓力對我們其他部門的業績造成了影響，但專用車輛部門在年底銷售出現積極變化後實現了小幅增長，重型車輛部門則投資於改善客戶體驗和新產品開發，這為市場反彈做好了準備。

We also drove significant marginal expansion and earnings growth for the enterprise, which led to strong cash flow generation.

我們也推動了企業的邊際擴張和獲利成長，從而產生了強勁的現金流。

This allowed us to invest in the business, strengthen our balance sheet for future strategic growth opportunities, and return capital to our shareholders.

這使我們能夠投資於業務，加強我們的資產負債表以應對未來的策略成長機會，並向股東返還資本。

I'd like to take a minute and thank all of our contributors for all they did this year. We have an exceptionally talented team that stepped up and turned challenges into successes. I'm proud of what we've accomplished together and look forward to the exciting future we have ahead.

我想花一點時間感謝我們所有的貢獻者今年所做的一切。我們擁有一支才華洋溢的團隊，他們勇於挑戰，將挑戰轉化為成功。我為我們共同取得的成就感到自豪，並期待我們未來令人興奮的未來。

Speaking of talent, I also want to welcome [Typhoon Unur] to our leadership team as head of our light duty segment.

說到人才，我也想歡迎 [Typhoon Unur] 加入我們的領導團隊，擔任輕型車輛部門的負責人。

Typhoon brings tremendous experience to the organization, and his new role completes our transition to three distinct segments with leadership structures in place now for each of them. It was an important step following our recent realignment of the business, and we expect this leadership structure will drive significant value for the entire company.

Typhoon 為該組織帶來了豐富的經驗，他的新職位完成了我們向三個不同部門的過渡，現在每個部門的領導結構都已到位。這是我們最近調整業務後邁出的重要一步，我們預計這種領導結構將為整個公司帶來巨大的價值。

Turning to slide 4, I wanted to briefly touch on the 4th quarter.

翻到投影片 4，我想簡單談談第 4 季。

David will provide more detail, but we exited 2024 with strong momentum. Consolidated net sales for the quarter grew 8% year over year to $534 million as our teams did an excellent job delivering on new product development and customer programs.

David 將提供更多細節，但我們在 2024 年取得了強勁的發展勢頭。由於我們的團隊在新產品開發和客戶計畫方面做得非常出色，本季綜合淨銷售額年增 8%，達到 5.34 億美元。

We also drove solid margin performance. Adjusted operating margin for the quarter was 17.5%, expanding 210 basis points compared to the same period last year.

我們也實現了穩健的利潤表現。本季調整後營業利益率為17.5%，較去年同期擴大210個基點。

A marginal improvement was led by light duty as their top line growth and productivity initiatives fueled a 350 basis point increase in segment profit margin.

輕型作業車輛的利潤率略有改善，因為其營業收入成長和生產力措施推動了該部門利潤率上升 350 個基點。

As a result, adjusted to EPS increased an impressive 40% to $2.20. Free cash flow in the quarter was also strong at $63 million allowing us to repay $54 million of debt.

結果，調整後的每股收益大幅增加了 40%，達到 2.20 美元。本季的自由現金流也很強勁，達到 6,300 萬美元，使我們能夠償還 5,400 萬美元的債務。

All in all, it was an outstanding 4th quarter to cap an incredible year for Dorman. I'm proud of our performance this year, and again, it speaks to our talent and positive culture that continues to drive results across the organization.

總而言之，對於多爾曼來說，這是一個出色的第四季度，為他不可思議的一年畫上了圓滿的句號。我為我們今年的表現感到自豪，這再次證明了我們的才能和積極的文化，並將繼續推動整個組織的成果。

David will cover guidance in a moment, but our outlook for 2025 reflects our strong operational model, strategic growth opportunities, financial strength, and positive market trends.

David 稍後會介紹指導意見，但我們對 2025 年的展望反映了我們強大的營運模式、策略成長機會、財務實力和積極的市場趨勢。

On slide 5, we thought it would be helpful to take a step back and highlight the key factors that drive [Doorin's] success.

在第 5 張投影片上，我們認為回顧並強調推動 Doorin 成功的關鍵因素會有所幫助。

First, as we've covered on recent calls, innovation is a critical part of our DNA and core to our differentiation.

首先，正如我們在最近的電話會議中提到的，創新是我們 DNA 的關鍵部分，也是我們差異化的核心。

Our teams have the creativity tools and expertise to deliver new vehicle repair solutions to our customers. Our innovation also enhances the repair experience for installers, which creates additional sales opportunities for our customers and drives the introduction of new cost effective products for our end users' vehicles.

我們的團隊擁有創造力工具和專業知識，可以為客戶提供新的車輛維修解決方案。我們的創新也增強了安裝人員的維修體驗，為我們的客戶創造了額外的銷售機會，並推動了我們為最終用戶的車輛推出新的具有成本效益的產品。

Next is operational excellence.

接下來是卓越營運。

We're constantly challenging our operations to deliver improved performance. We have invested prudently to keep our performance at the forefront of the curve.

我們不斷挑戰我們的運營，以提高績效。我們謹慎投資，以確保我們的業績保持領先地位。

We're of the mindset that improvement and efficiency gains are always possible, and we continue to drive productivity across our footprints.

我們堅信改進和提高效率始終是可能的，我們將繼續在我們的整個業務範圍內提高生產力。

With efficient operations and new products driving growth, our asset light business has been a cash generator, providing both fuel for our growth and a strong financial foundation that is built for long-term success.

憑藉高效的營運和新產品的推動成長，我們的輕資產業務已成為現金來源，為我們的成長提供了動力，並為長期成功奠定了強大的財務基礎。

A strong financial profile and cash generation has allowed us to deploy capital on strategic investments to compound our growth. This proven business model has driven tremendous results for Dormant over the years.

強大的財務狀況和現金創造能力使我們能夠將資本部署在策略投資上，以實現成長。多年來，這種行之有效的商業模式為 Dormant 帶來了巨大的業績。

We believe we are well positioned to deliver continued growth in 2025 and beyond. As we look ahead, slide 6 lays out our strategic priorities for the year. Again, innovation is a critical focus area for each of our segments.

我們相信，我們已做好準備，在 2025 年及以後繼續成長。展望未來，第 6 張幻燈片列出了我們今年的戰略重點。再次強調，創新是我們每個部門關注的重點領域。

We continue to develop new light duty repair solutions, including an emphasis on our complex electronics portfolio, which continues gaining traction as we discussed on our last call. We're also focused on further expanding heavy duties category coverage, deploying our OI solutions methodology further into the sector.

我們將繼續開發新的輕型維修解決方案，包括重點關注我們複雜的電子產品組合，正如我們在上次電話會議上討論的那樣，該產品組合繼續受到關注。我們也致力於進一步擴大重型貨物類別的覆蓋範圍，將我們的 OI 解決方案方法進一步部署到該領域。

We believe the investments we've made in new product development position the business well as the freight recession recovers. Within specialty vehicle, we remain focused on expanding our non-discretionary portfolio and building on the success we've had in those categories since we've acquired Super ATV.

我們相信，隨著貨運衰退的復甦，我們在新產品開發方面所做的投資將使業務處於良好的地位。在專用車輛領域，我們將繼續專注於擴大我們的非必需產品組合，並鞏固自收購 Super ATV 以來在這些類別中取得的成功。

We're also focused on furthering our operational excellence initiatives with productivity and automation improvements.

我們也致力於透過提高生產力和自動化程度來進一步推進我們的卓越營運計劃。

We are pleased with the progress we made in 2024 on these initiatives, and we see future opportunities across our facilities.

我們對 2024 年這些舉措所取得的進展感到滿意，並且我們看到了我們設施未來的發展機會。

In 2025, we'll continue to strategically diversify and optimize our supply chain. The team has done an outstanding job over the last few years, integrating suppliers across the globe and reducing our country-specific concentration.

2025年，我們將繼續策略性地實現供應鏈多元化和優化。過去幾年，該團隊做出了傑出貢獻，整合了全球供應商，降低了對特定國家的集中。

Today our supply chain is significantly more flexible and nimble than it was just a few years ago. We believe this provides a differentiated added value for our customers and provides us access to leading manufacturers around the world.

如今，我們的供應鏈比幾年前更靈活、更敏捷。我們相信這為我們的客戶提供了差異化的附加價值，並使我們能夠接觸到世界各地的領先製造商。

We're also laser focused on continuing to position heavy duty and specialty vehicle for channel expansion, which we believe will lead to improved sales performance as these markets rebound.

我們也專注於繼續定位重型車輛和專用車輛的通路擴張，我們相信隨著這些市場的反彈，這將帶來銷售業績的提高。

As I mentioned, our innovation strategy and commercialization efforts are expanding opportunities. Finally, after strengthening our balance sheet in 2024, we have the firepower to capitalize on new growth opportunities. Our acquisition pipeline remains robust, and we expect the broader M&A environment to continue improving.

正如我所提到的，我們的創新策略和商業化努力正在擴大機會。最後，在 2024 年加強資產負債表之後，我們有能力利用新的成長機會。我們的收購管道依然強勁，我們預計更廣泛的併購環境將持續改善。

Moving to slide 7, let me provide some observations across our three segments. In our light duty segment, positive macro trends continued through the end of the year. Vehicle miles traveled were again higher year over year in the 4th quarter.

轉到第 7 張投影片，讓我提供一些針對我們三個部分的看法。在我們的輕型車輛領域，積極的宏觀趨勢一直持續到年底。第四季車輛行駛里程再次較去年同期增加。

POS was strong, up high single digits, and generally consistent with customer shipments. Strong customer demand and new product execution drove out performance for the light duty business.

POS 表現強勁，上漲了高個位數，並且與客戶出貨量基本一致。強勁的客戶需求和新產品的執行推動了輕型車業務的表現。

We've also made strides in diversifying our supplier base across new geographies and improving margins through productivity initiatives. In our heavy duty segment, soft market conditions persisted through the end of the year as expected.

我們還在跨新地區實現供應商基礎多元化以及透過生產力措施提高利潤率方面取得了長足進步。在我們的重型車輛領域，疲軟的市場狀況正如預期的那樣持續到年底。

While recent industry commentary has pointed to a more optimistic outlook, we believe it is still too early to call for the timing of a return to growth. That said, we're seeing encouraging signs from our customers and we'll look to capture share with a broader portfolio of new products when the market rebounds.

儘管最近的行業評論指出前景更加樂觀，但我們認為現在判斷恢復成長的時機還為時過早。話雖如此，我們從客戶那裡看到了令人鼓舞的信號，當市場反彈時，我們將尋求透過更廣泛的新產品組合來搶佔市場份額。

Further, we plan to implement additional productivity initiatives to help improve heavy duty's margin profile. 3rd the quarter, we saw year over year top line growth for the first time in several quarters for our specialty vehicle segment.

此外，我們計劃實施額外的生產力舉措，以幫助改善重型車輛的利潤率。第三季度，我們的專用車輛部門的營收連續幾季首次實現年成長。

While new machine sales remain sluggish as manufacturers continued inventory destocking efforts. Our growth was the result of the investments we've made in innovation and channel expansion.

而由於製造商持續努力去庫存，新機銷售依然低迷。我們的成長源自於我們在創新和通路擴展方面的投資。

These investments are yielding solid results, and we're excited with what lies ahead for the business. With that, I'll hand off to David to review our Q4 financial performance.

這些投資正在產生豐厚的成果，我們對業務的未來充滿期待。有了這些，我將把任務交給大衛來審查我們第四季度的財務表現。

Thanks, Kevin. I'd like to echo your comments regarding the team. It was a particularly strong finish to what ended up being an outstanding year. We couldn't have done it without the efforts of our contributors across the organization. So I just wanted to thank our contributors for their hard work and dedication.

謝謝，凱文。我想附和你對球隊的評論。這是對傑出的一年的一個特別有力的結束。如果沒有整個組織貢獻者的努力，我們就不可能做到這一點。所以我只想感謝我們的貢獻者的辛勤工作和奉獻精神。

Turning to slide 8, let me dive into our results. Consolidated net sales in the fourth quarter for $534 million dollars, up 8% year over year driven by strong customer demand.

翻到第 8 張投影片，讓我深入了解我們的成果。第四季綜合淨銷售額為 5.34 億美元，受強勁客戶需求推動，較去年同期成長 8%。

As Kevin mentioned, light duty drove above market sales growth in the quarter, given positive macro trends in our new product initiatives. In fact, innovation was a key contributor to our success across each of our segments in the quarter. I'll cover them individually in just a moment.

正如凱文所提到的，由於我們新產品計劃的宏觀趨勢積極，輕型貨車本季的銷售成長高於市場成長。事實上，創新是我們本季各部門成功的關鍵因素。我稍後會逐一介紹它們。

Adjusted gross margin for the quarter was 41.7%, a 240 basis point increase compared to the prior year period. This margin expansion was primarily driven by higher sales performance and cost savings generated from our supplier diversification efforts as well as our productivity and automation initiatives.

本季調整後的毛利率為 41.7%，較去年同期增加 240 個基點。利潤率的擴大主要得益於我們供應商多元化努力以及生產力和自動化措施帶來的更高的銷售業績和成本節約。

Additionally, Martin benefited from a favorable mix of higher sales of new products and greater leverage on volume growth.

此外，馬丁也受惠於新產品銷售增加和銷售成長槓桿加大的有利組合。

Adjusted SG&A expense as a percentage of net sales was 24.2%. Adjusted operating income was $93 million for the fourth quarter, up 23% compared to the same period last year.

調整後的銷售、一般及行政費用佔淨銷售額的百分比為 24.2%。第四季調整後營業收入為 9,300 萬美元，較去年同期成長 23%。

Adjusted operating margin expanded 210 basis points to 17.5%, largely from gross margin improvement.

調整後的營業利益率擴大 210 個基點至 17.5%，主要得益於毛利率的提高。

Finally, 4th quarter adjusted diluted EPS was $2.20 up 40% compared to the prior year period. Along with increased adjusted operating income and lower interest expense, our effective tax rate benefited from one-time discrete items in the quarter.

最後，第四季調整後的稀釋每股收益為 2.20 美元，較去年同期成長 40%。除了調整後的營業收入增加和利息支出降低之外，我們的有效稅率還受益於本季的一次性單項項目。

Finally, our share repurchase program activity during the year contributed to positive EPS growth. Next, let me provide updates on each of our business segments.

最後，我們今年的股票回購計畫活動促進了每股盈餘的正成長。接下來，讓我來介紹一下我們各個業務部門的最新情況。

Starting with light duty on slide 9. Our light duty business had an exceptional 4th quarter, with net sales increasing 11% compared to the same period last year. POS and shipments were generally aligned in the quarter at a high single digit growth rate.

從第 9 張投影片上的輕度工作開始。我們的輕型卡車業務在第四季度表現出色，淨銷售額與去年同期相比成長了 11%。本季 POS 和出貨量大致保持同步，成長率均為高個位數。

This growth was driven by strong customer demand, particularly with our recently introduced new products, including Complex electronics and our highly successful oil filter housing product.

這一成長是由強勁的客戶需求推動的，特別是我們最近推出的新產品，包括複雜的電子產品和我們非常成功的濾油器外殼產品。

Light duty also drove solid margin improvement during the quarter. Segment profit margin increased to 20.1%, a 350 basis point increase compared to last year's fourth quarter. This margin expansion benefited from our ongoing automation and productivity initiatives, strong new product sales and customer mix, along with greater leverage on our volume.

輕型貨車也推動了本季利潤率的穩定提升。分部利潤率增至20.1%，較去年第四季增加350個基點。利潤率的提高得益於我們正在進行的自動化和生產力舉措、強勁的新產品銷售和客戶組合、以及更大的銷售槓桿。

On slide 10, I'll cover our heavy duty segment.

在第 10 張投影片上，我將介紹我們的重型部分。

Heavy duty net sales were down 8% year over year as a result of the ongoing market challenges which Kevin covered.

由於 Kevin 所述的持續的市場挑戰，重型車輛淨銷售額比去年同期下降了 8%。

Lower volume had a negative impact on margins as the business has a larger fixed cost manufacturing footprint compared to our other segments.

由於該業務與我們的其他部門相比具有更大的固定成本製造足跡，因此產量下降對利潤率產生了負面影響。

We also continue to invest in the business as we see long-term growth opportunities ahead. These investments yielded significant new product development during the year, which we expect will position the business well when the market rebounds.

由於我們看到未來的長期成長機會，我們也將繼續對該業務進行投資。這些投資在今年產生了重大的新產品開發成果，我們預計當市場反彈時，這將為公司帶來良好的業務地位。

Moving to slide 11 for our specialty vehicle segment.

前往投影片 11，了解我們的專用車輛部分。

We were pleased to see year over year sales growth for our specialty vehicle business as net sales were up 5% in the quarter. Our new product portfolio and expanded dealer network, continued to drive solid results for the business.

我們很高興看到我們的專用車業務的銷售額同比增長，因為本季淨銷售額增長了 5%。我們的新產品組合和擴大的經銷商網絡繼續為業務帶來穩健的業績。

On the margin front, we continue to invest in the business, which increased variable compensation and benefit expense in the quarter compared to the prior year period. These increases align the specialty vehicle segment with our other two segments. We believe the investments we've made position a segment for long term growth.

在利潤方面，我們繼續對業務進行投資，與去年同期相比，本季的浮動薪資和福利支出有所增加。這些增長使專用車輛部門與我們的其他兩個部門保持一致。我們相信，我們所做的投資將為該領域的長期成長奠定基礎。

Turning to our cash flow on slide 12.

轉到第 12 張投影片上的現金流量。

For the 4th quarter, free cash flow was $63 million up 30% compared to the same period in 2023. This growth was particularly impressive given that we increased our inventory spend in part to mitigate any potential impact from tariff changes.

第四季度，自由現金流為 6,300 萬美元，較 2023 年同期成長 30%。考慮到我們增加庫存支出的部分原因是為了減輕關稅變化帶來的潛在影響，這種成長尤其令人印象深刻。

We also use this cash flow to strengthen our balance sheet, repaying $54 million in debt, which, as I'll highlight on the next slide, provides us with the ability to make strategic growth investments.

我們也利用這筆現金流來加強我們的資產負債表，償還 5,400 萬美元的債務，正如我在下一張投影片中所強調的那樣，這使我們能夠進行策略性成長投資。

While we paused our share repurchases during the 4th quarter, given the uncertainty around the election and geopolitical concerns, we remain committed to our share repurchase program as a core component of our capital deployment strategy going forward.

儘管考慮到選舉的不確定性和地緣政治擔憂，我們在第四季度暫停了股票回購，但我們仍然致力於股票回購計劃，將其作為未來資本配置策略的核心組成部分。

In fact, in October, our board of directors authorized a new $500 million stock repurchase plan that became effective January 1st of this year and expires in December 2027.

事實上，10 月份，我們的董事會批准了一項新的 5 億美元股票回購計劃，該計劃於今年 1 月 1 日生效，並於 2027 年 12 月到期。

His performance in the 4th quarter contributed to what was an exceptionally strong year from a cash generation and deployment perspective.

從現金產生和部署的角度來看，他在第四季度的表現為今年異常強勁的業績做出了貢獻。

Cash flow from operations was an impressive $231 million for the year, allowing us to deploy $39 million in capital expenditures, repay $94 million in debt, and return $78 million to our shareholders through the repurchase of 856,000 shares at an average cost of $91 per share.

全年經營現金流達到了令人印象深刻的 2.31 億美元，使我們能夠部署 3900 萬美元的資本支出，償還 9400 萬美元的債務，並通過以平均每股 91 美元的價格回購 856,000 股股票向股東返還 7800 萬美元。

On slide 13, I'll cover our balance sheet in liquidity.

在第 13 張投影片上，我將介紹我們的流動性資產負債表。

As of December, 31th , our net debt was $426 million or $66 million dollars lower than Q3. Our net leverage ratio was 1.12 times adjusted EBITA, down from 1.36 times at the end of September and 1.87 times at the end of last year.

截至 12 月 31 日，我們的淨債務為 4.26 億美元，比第三季低 6,600 萬美元。我們的淨槓桿率為調整後 EBITA 的 1.12 倍，低於 9 月底的 1.36 倍和去年年底的 1.87 倍。

Our current leverage remains comfortably below our long-term target of 2 times. Additionally, our total liquidity was $642 million at the end of the quarter, up from $582 million at the end of Q3.

我們目前的槓桿率仍遠低於我們 2 倍的長期目標。此外，本季末我們的總流動資金為 6.42 億美元，高於第三季末的 5.82 億美元。

Our balance sheet remains strong, and we're pleased with the capacity and flexibility it provides us to continue executing our strategic plan and deploying capital for future growth investments.

我們的資產負債表仍然強勁，我們很高興看到它為我們提供了繼續執行策略計劃和為未來成長投資部署資本的能力和靈活性。

Turning to slide 14, I'd like to cover our guidance for 2025.

翻到第 14 張投影片，我想介紹我們對 2025 年的指導。

2024 positioned us well for continued growth through 2025 and beyond. Market trends in our late duty business remain positive, and we see the beginnings of market turnaround in the heavy duty and specialty vehicle segments.

2024 年為我們在 2025 年及以後的持續成長做好了準備。我們的後期業務的市場趨勢依然積極，我們看到重型和特種車輛領域的市場開始好轉。

While uncertainty exists around interest rates, tariffs, and other macroeconomic factors, we have the playbook, a more diversified customer and supplier base, and a solid financial position to navigate the various challenges we may face in the market.

儘管利率、關稅和其他宏觀經濟因素存在不確定性，但我們擁有策略、更多樣化的客戶和供應商基礎以及穩固的財務狀況來應對我們可能在市場上面臨的各種挑戰。

Specifically on tariffs, our 2025 guidance does not include any impact from the US tariffs enacted or proposed in 2025 or any potential retaliatory measures from US trade partners. The situation remains highly fluid with significant uncertainty regarding what may or may not be implemented and the potential impact on our 2025 results.

具體到關稅方面，我們的 2025 年指引不包括 2025 年頒布或提議的美國關稅或美國貿易夥伴的任何潛在報復措施的影響。情況仍然高度不穩定，對於可能實施或可能不實施的措施以及對我們 2025 年業績的潛在影響存在很大的不確定性。

We are following the involving trade situation closely and plan to take actions to manage the impact on our business. We'll evaluate updating our guidance as the tariff situation gains clarity. That said, we expect net sales growth to be in the range of 3% to 5% compared to 2024.

我們正在密切關注相關貿易形勢，並計劃採取行動來控制其對我們業務的影響。隨著關稅情況逐漸明朗，我們將評估更新我們的指導方針。也就是說，我們預期與 2024 年相比，淨銷售額成長率將在 3% 至 5% 之間。

Looking across our segments, we expect light duty to drive solid sales growth for the year. Our innovation strategy and industry leading portfolio of new products, along with our enhanced commercialization strategies are expected to continue driving value for our customers.

縱觀我們的細分市場，我們預計輕型貨車將推動全年銷售穩健成長。我們的創新策略和領先業界的新產品組合以及我們增強的商業化策略預計將繼續為我們的客戶創造價值。

As I mentioned, predicting a market recovery for heavy duty remains difficult, but given market indicators, we expect net sales to be flattish for the year.

正如我所提到的，預測重型卡車市場的復甦仍然很困難，但根據市場指標，我們預計今年的淨銷售額將持平。

For specialty vehicles, we expect net sales to increase modestly as consumer sentiment appears to be improving in that market.

對於專用車輛，我們預計淨銷售額將小幅成長，因為該市場的消費者情緒似乎正在改善。

On the operational excellence front, we remain focused on driving efficiencies through continued productivity and automation initiatives. With our sales growth expectations coupled with the efficiency gains, we expect adjusted diluted earnings per share to be in the range of $7.55 to $7.85 representing 6% to 10% growth over 2024.

在卓越營運方面，我們仍然專注於透過持續的生產力和自動化措施來提高效率。根據我們的銷售成長預期加上效率提升，我們預計調整後的每股攤薄收益將在 7.55 美元至 7.85 美元之間，相當於 2024 年成長 6% 至 10%。

Now I'll turn it back over to Kevin to conclude. Kevin.

現在我將把發言權交還給凱文來做總結。凱文。

Thanks, David. As we look forward, I'm confident in our model for long term success.

謝謝，大衛。展望未來，我對我們的長期成功模式充滿信心。

We'll continue driving innovation and building on our industry leading portfolio of innovative solutions. We'll continue to build deep relationships across our diverse and markets, leverage our operational expertise, and capitalize on strategic growth opportunities to drive Doorman's future growth.

我們將繼續推動創新並鞏固我們行業領先的創新解決方案組合。我們將繼續在各個市場建立深厚的關係，利用我們的營運專業知識，並利用策略成長機會來推動 Doorman 的未來成長。

On behalf of our management team and the board, we thank you for your support. With that, I would now like to open the call up for questions, operator.

我代表我們的管理團隊和董事會感謝您的支持。接線員，現在我想開始回答問題。

Thank you. Ladies and gentlemen, we will now begin the question and answer session.

謝謝。女士們、先生們，我們現在開始問答環節。

(Operator Instructions)

（操作員指示）

Scott Stember, ROTH MKM

史坦伯（Scott Stember），ROTH MKM

Good morning and thanks for taking my questions.

早上好，感謝您回答我的問題。

Thanks, Scott. Good morning, Scott.

謝謝，斯科特。早安，史考特。

Regarding tariffs, which is obviously one of the bigger topics these days, could you just remind us, how far you've come, at least with exposure related to China? I know that. I think we were less than 50% total Asia exposure.

關於關稅，這顯然是最近的熱門話題之一，您能否提醒我們，您已經取得了多大的進展，至少在與中國相關的接觸方面？我知道。我認為我們在亞洲的投資總額還不到 50%。

Maybe as of last year, can you talk about where we stand right now and then under the current 10%. a tariff on China. I'm just trying to get a sense of how manageable that is for you in the near term.

也許截至去年，您能否談談我們現在的立場以及在目前 10% 的立場。對中國徵收關稅。我只是想了解你在短期內能否實現這一目標。

Sure, Scott, It's Kevin, Good question.

當然，史考特，我是凱文，好問題。

As you point out, the situation remains very fluid. I mean, I think we've obviously seen the additional 10% on China imports and the steel and aluminum tariff.

正如您所指出的，局勢仍然非常不穩定。我的意思是，我認為我們已經明顯看到中國進口鋼鐵和鋁關稅額外增加了 10%。

We would characterize those two aspects of tariffs as very manageable for us at this point, but obviously the situation, is very fluid and It seems like, the reciprocal tariffs, we'll know a lot more about those in the months ahead. I do, I will speak a little bit about the diversity, actions that we've taken and that I've spoken about publicly before.

我們認為，目前這兩個方面的關稅對我們來說非常容易管理，但顯然情況非常不穩定，而且似乎我們將在未來幾個月內對互惠關稅有更多的了解。是的，我會稍微談談多元化、我們所採取的行動以及我之前公開談論過的那些事情。

We, I will remind you that we have a lot of experience dealing with tariffs. We have a playbook, back in 2018. Since that time frame, we have undertaken a lot of actions to diversify the supply chain.

我們，我要提醒你，我們在處理關稅方面有很多經驗。早在 2018 年，我們就有劇本了。從那時起，我們採取了許多措施來實現供應鏈多樣化。

In 2025, Scott, we estimate that roughly 30% or so of our purchases will come from the US.

史考特，我們估計，到 2025 年，我們的採購量大約有 30% 將來自美國。

Whether that's from a partner manufacturer or from dormant manufacturing facilities.

無論是來自合作製造商還是來自休眠製造廠。

Roughly 30% to 40% of our sourcing in 2025 is estimated to come from China.

預計到 2025 年，我們的採購量中約有 30% 至 40% 將來自中國。

Then outside of that, we're very diverse around the globe. I'll also say, Scott, that our exposure to Canada and Mexico from a sourcing perspective is immaterial.

除此之外，我們在全球範圍內都非常多元化。史考特，我還要說的是，從採購角度來看，我們對加拿大和墨西哥的了解並不重要。

Got it stated. The other thing to keep in mind is, from a like we're on FIFO accounting, right? So you'll see the impacts as inventory turns. Probably about 2 times. So you'll. See that 6 months. After we actually incurred as well.

明白了。要記住的另一件事是，從我們採用先進先出會計的角度來看，對嗎？因此，您會在庫存週轉時看到其影響。大概是2倍左右。所以你會的。看看那6個月。之後我們其實也承擔了同樣的責任。

Got it. That's very helpful, thanks. And then on the heavy duty side, can you talk about some of the early signs that you're seeing and then maybe talk about the channel expansion opportunities there.

知道了。這非常有幫助，謝謝。然後，在重型方面，您能否談談您看到的一些早期跡象，然後談談那裡的頻道擴展機會。

Sure, Scott, good question, Kevin, again, I would say in general if we look at the heavy duty market, our business is basically tracking with the market.

當然，史考特，這個問題問得好，凱文，我再說一遍，總的來說，如果我們看一下重型市場，我們的業務基本上是追蹤市場的。

We'll characterize as somewhat stabilized, as we said in our prepared remarks, we're not really calling for a market turnaround in 2025 and it really is unclear how the trade situation will impact. The overall heavy duty market, so our focus in that sector is going to be to continue on focusing on new products.

我們將把它描述為有些穩定，正如我們在準備好的評論中所說的那樣，我們並不是真的要求 2025 年市場出現好轉，而且貿易形勢將產生怎樣的影響確實還不清楚。整個重型市場，所以我們在該領域的重點將繼續放在新產品上。

We had a record year in terms of new product launches in 2024.

2024 年，我們的新產品發布數量創下了紀錄。

We expect to increase on that in 2025, so the new product engine. Is really working well. We've got to get that flywheel, primed and going and eventually that's going to become a very large growth engine for us, particularly as the market does recover.

我們預計到 2025 年這一數字還會增加，因此需要新的產品引擎。確實效果很好。我們必須讓飛輪做好準備並運作起來，最終它將成為我們非常強大的成長引擎，尤其是在市場復甦的情況下。

We're also focused on productivity initiatives across the business, in heavy duty and as we mentioned in the prepared remarks, we're expecting, flattish sales growth for that segment in 2025.

我們也專注於整個業務的生產力計劃，在重型領域，正如我們在準備好的評論中提到的那樣，我們預計 2025 年該領域的銷售成長將持平。

Got it, And then just last question, you talked about the pipeline for M&A, could you maybe just give us an indication of You know where you're seeing more opportunities and where we can look for you guys to potentially go.

明白了，然後就是最後一個問題，您談到了併購管道，您能否向我們透露一下您在哪裡看到了更多的機會以及我們可以在哪裡尋找你們的潛在機會。

Well, I mean, yeah, Scott, it's Kevin, good question. The pipeline, I would say, is very robust, really across the three segments.

嗯，我的意思是，是的，斯科特，我是凱文，問得好。我想說，該管道非常強大，確實跨越了三個部分。

But, I will say that, in the last couple of months, it's gone a little bit quiet with all the trade uncertainty. I think once that clears up, we'll start to see, some good activity across our funnels.

但我要說的是，在過去的幾個月裡，由於貿易不確定性，情況變得有點平靜。我認為，一旦這個問題解決，我們就會開始看到我們的頻道中出現一些良好的活動。

Got it. That's all I have for now. Thank you.

知道了。我現在知道的就這些。謝謝。

Thanks Scott.

謝謝斯科特。

Gary Prestopino, Barrington Research

巴林頓研究公司的加里‧普雷斯托皮諾

Hey, good morning, Walt. Gary.

嘿，早上好，沃特。加里。

I just, I have a question just on the whole heavy duty market. I mean, I understand that it's a, choppy environment out there and all, but aren't most of your products going into this market for repair and is there just a real big diminishment of on the road trucking going on here or are truckers just putting off repairs? I'm just trying to get an understanding of what is driving this market.

我只是對整個重型市場有一個疑問。我的意思是，我明白外面的環境很不穩定，但是你們的大部分產品不是都進入這個市場進行維修嗎？這裡的道路卡車運輸真的大幅減少了嗎？還是卡車司機只是在推遲維修？我只是想了解推動這個市場發展的因素。

To perform as poorly as it has. Yeah, it's a great question.

表現如此糟糕。是的，這是一個很好的問題。

Gary, and I think you're exactly right. I think the overall market is down. We're seeing that across all the freight indexes that we look at, and our parts, as you correctly point out, do primarily go for repair, and we are seeing delayed repairs across the channels that we operate in.

加里，我認為你說得完全正確。我認為整體市場處於低迷狀態。我們看到，在我們關注的所有貨運指數中，以及我們的零件（正如您正確指出的那樣）主要用於維修，並且我們發現我們運營的各個渠道的維修都存在延遲的情況。

Okay, So I guess I just from my understanding on this is there. If the truck's not drivable, they've got to repair it, but if there's some kind of delayed maintenance kind of repairs that are needed, that they're just putting that off.

好的，所以我想我只是從我的理解來看這一點。如果卡車無法駕駛，他們就必須修理它，但如果需要進行某種延遲維護或修理，他們就會推遲修復。

Yeah, and that happens quite often in this industry, Gary, and I think what you'll see is when the market does start to inflect, you'll start to see a lot of those delayed repairs start coming back online.

是的，加里，這種情況在這個行業中經常發生，我認為你會看到，當市場開始轉變時，你會看到很多被推遲的維修開始恢復。

So we're, when that inflection happens, we expect a pretty robust ramp back up and could you remind me?

因此，當這種拐點發生時，我們預計會出現相當強勁的回升，您能提醒我嗎？

In a normalized market for both specialty and heavy duty or just however you want to phrase it, what would be the target operating margins that you could obtain or segment margins?

在專業和重型產品的標準化市場中，或者無論您如何表述，您可以獲得或細分利潤的目標營業利潤率是多少？

Gary, the margins, yeah, it's David. That's a good question. No, it's okay. We don't give guidance on forward guidance, Gary, on segment margins, but we think that as we look forward, what's included in the guide is margin performance pretty consistent with, where we are in 2024.

蓋瑞，邊緣，是的，是大衛。這是個好問題。不，沒關係。加里，我們沒有給出關於分部利潤率的前瞻性指引，但我們認為，展望未來，指引中包含的利潤率表現與我們 2024 年的水平相當一致。

I mean, the reason that, we're not forecasting in the guide a big increase in 2025 is obviously we, we're not forecasting the growth in in normal environments you're talking about high 10s type margins in specialty vehicle.

我的意思是，我們在指南中沒有預測 2025 年會大幅成長的原因顯然是，我們沒有預測正常環境下特種車輛利潤率高達 10% 的成長。

And although we're currently performing well below that in heavy duty, our target there is to get to mid-teens operating margins.

儘管我們目前在重型車輛領域的業績遠低於這一水平，但我們的目標是達到十五六歲的營業利潤率。

That's what my, yeah, that's what my question revolved around just in a normalized market. So there's plenty of upside once these markets do turn in the affirmative.

是的，這就是我的問題，只是在正常化的市場。因此，一旦這些市場確實出現積極轉機，那就有很大上漲空間。

Absolutely Correct.

完全正確。

Okay, thank.

好的，謝謝。

Justin Ages, CJS Securities

CJS證券公司的賈斯汀·阿格斯

Hi, morning.

嗨，早安。

Going back to, there was a question on the M&A pipeline, but given the strength and balance sheet and strong free cash flow, can you, give us a little indication on capital allocation priorities between share buybacks and M&A. and debt payout?

回到剛才的問題，有一個關於併購管道的問題，但考慮到實力和資產負債表以及強勁的自由現金流，您能否給我們一些關於股票回購和併購之間的資本配置優先級的提示。以及債務償還？

Yeah, Justin, good question. It's David. Yeah, the we got a strong year from a cash flow perspective. You look at our strategy, first area that we look at is debt where we stand on debt and leverage, then our latter takes over from there. First area we look at is internal investment.

是的，賈斯汀，問得好。是戴維。是的，從現金流角度來看，今年我們表現強勁。看看我們的策略，我們首先關注的領域是債務，我們關注的是債務和槓桿，然後我們的後者會接管它。我們關注的第一個領域是內部投資。

We get our best growth there, best returns, M&A is second, and then third is returning cash to shareholders. We do that opportunistically. We paused the buybacks in the Q4, given some of the uncertainty around the election and geopolitical concerns, but we're committed to it. In fact, the board of directors approved a share repurchase plan of $500 million that was effective January 20 January 1st of this year. So that's how we look at the capital allocation.

我們在那裡獲得了最佳成長和最佳回報，併購排在第二位，第三是向股東返還現金。我們抓住機會這麼做。考慮到選舉和地緣政治擔憂帶來的一些不確定性，我們在第四季度暫停了回購，但我們仍致力於此。事實上，董事會批准了一項 5 億美元的股票回購計劃，該計劃於今年 1 月 20 日 1 日起生效。這就是我們看待資本配置的方式。

Justin.

賈斯汀。

Alright, that's helpful, thanks. And then moving to specialty and talked about the year over year sales growth in the quarter, just wondering if you could give a little more detail on in specialty vehicle repair versus discretionary and you know the consumer kind of sentiment that you talked about there.

好的，這很有幫助，謝謝。然後轉向專業領域並談論本季度的同比銷售額增長，只是想知道您是否可以提供更多關於專業車輛維修與非必需品維修的詳細信息，以及您在那裡談到的消費者情緒。

Yeah, it's a great question. It's Kevin. I'd say overall the market and specialty vehicle was down for 2024. There were certainly some signs of new vehicle sales stabilizing and inventory in the channel stabilizing, but ultimately inflation and high interest rates are going to con have kept.

是的，這是一個很好的問題。我是凱文。我認為 2024 年市場和專用車總體都會下滑。確實有一些跡象表明新車銷售和通路庫存正在穩定，但最終通貨膨脹和高利率仍將持續。

A new machine acquisition prices fairly high, which impacts us. I've talked publicly about that in the past, hence, our focus on non-discretionary repair parts, something that they were, special super ATV was under indexed at the time of acquisition and channel expansion.

新機器的購買價格相當高，這對我們造成了影響。我過去曾公開談論過這個問題，因此，我們的重點是非自由支配的維修零件，在收購和渠道擴展時，特殊的超級 ATV 被低估了。

We, we've made a lot of progress on both those fronts, which enabled us to outperform the market. In the quarter end for the year in 2024, and we believe we took some decent market share.

我們在這兩個方面都取得了很大進展，這使我們能夠超越市場。到 2024 年季度末，我們相信我們將佔據相當不錯的市場份額。

You know it's unclear about when the market is going to recover fully, particularly with the trade uncertainty now on top of that, and we are expecting again modest growth in 2025 for the segment.

您知道，目前尚不清楚市場何時會完全復甦，尤其是在貿易不確定性加劇的情況下，我們預計 2025 年該領域將再次溫和成長。

All right, thanks. I appreciate you taking the questions.

好的，謝謝。感謝您回答這些問題。

Got it. Thanks.

知道了。謝謝。

Bret Jordan, Jefferies

布雷特喬丹，傑富瑞

Hey, good morning guys.

嘿，大家早安。

Good morning.

早安.

Good morning. Could you talk about the margin profile of complex electronics within light vehicle, is that a meaningfully higher margin or in line with the category?

早安.您能否談談輕型車輛內複雜電子設備的利潤率狀況，其利潤率是否明顯更高或與該類別一致？

Hey Bret, it's. Kevin. Good question. We don't typically break out the margin, profile of segments, within our business segments, so product categories. I will tell you that the overall segment is performed very well when you talk about complex electronics.

嘿，布雷特，是的。凱文。好問題。我們通常不會在業務部門和產品類別中細分利潤率和部門概況。我會告訴你，當你談論複雜的電子產品時，整體部分錶現非常好。

It certainly outgrew the overall business in 2024 and we continue to predict that'll happen going forward. The margin profile is strong. I mean, typically, as I said in the past, those products have a high balance of new to the aftermarket.

到 2024 年，它的成長速度肯定會超過整體業務，我們繼續預測這種情況將在未來繼續發生。利潤狀況強勁。我的意思是，通常，正如我過去所說的那樣，這些產品在售後市場上的新產品佔比很高。

So when that product gets launched, the only competitor that we have in the space would be the OE.

因此，當該產品推出時，我們在該領域的唯一競爭對手就是 OE。

So in those cases, typically that's where we have the highest margin profile and we have the highest competitive right? So, with the technical difficulty of a lot of these parts, we typically have a lot more new to the aftermarket and we're exclusive for a lot longer in complex electronics.

那麼在這些情況下，通常我們的利潤率最高，競爭力也最高，對嗎？因此，由於許多此類零件的技術難度，我們通常會向售後市場推出更多新產品，並且在複雜電子產品領域獨佔很長時間。

Okay, and then I guess a big fisher question on the light vehicle side. What do you see is the underlying inflation rate in pricing this year, obviously [ex] tariff, but rates have stayed high, so factoring costs are up. What would you think you will see at [POS] for inflation?

好的，然後我猜想輕型車輛方面會有一個大問題。您認為今年定價中潛在的通膨率是多少，顯然不包括關稅，但利率一直保持在高位，因此保理成本上升了。您認為 [POS] 的通貨膨脹情況如何？

Yeah, that's a good question, Bret. And obviously, the elephant in the room is the tariffs, right? So I can't really predict what's going to happen there, given it's so fluid at the moment. Let's assume there were no tariffs. I would say you're probably in that very low single [one-ish] type percent because there has been some general inflation outside of tariffs as we move through 2024.

是的，這是個好問題，布雷特。顯然，最令人頭痛的問題就是關稅，對吧？因此，鑑於目前情況如此不穩定，我真的無法預測那裡會發生什麼。我們假設沒有關稅。我想說，你可能處於非常低的單一 [一] 類型的百分比，因為隨著我們進入 2024 年，除了關稅之外還出現了一些普遍的通貨膨脹。

All right, great appreciate it thank you. Got it.

好的，非常感謝。知道了。

Thank you. That concludes our conference call.

謝謝。我們的電話會議到此結束。