Dorman Products Inc (DORM) 2025 Q1 法說會逐字稿

Good morning, and thank you for standing by. Welcome to the Dorman Products first-quarter 2025 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.

早安，感謝您的支持。歡迎參加 Dorman Products 2025 年第一季財報電話會議。（操作員指示）請注意，本次會議正在錄音。

I'd now like to turn the conference over to Alex Whitelam, Vice President of Investor Relations. Thank you, sir. Please go ahead.

現在，我想將會議交給投資人關係副總裁 Alex Whitelam。謝謝您，先生。請繼續。

Good morning, everyone. Welcome to Dorman's first-quarter 2025 earnings conference call. I'm joined by Kevin Olsen, Dorman's Chief Executive Officer; and David Hession, Dorman's Chief Financial Officer. Kevin will share updates on the business and address the tariff situation. Then David will review our quarterly results and reaffirm guidance. Kevin will then close our prepared remarks before opening the call for questions.

大家早安。歡迎參加 Dorman 2025 年第一季財報電話會議。與我一起參加的是 Dorman 執行長 Kevin Olsen；以及 Dorman 財務長 David Hession。Kevin 將分享業務最新進展並解決關稅問題。然後，大衛將回顧我們的季度業績並重申指導意見。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 dormanproducts.com. Before we begin, I'd like to remind everyone that our prepared remarks, earnings release and investor presentation, including 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, 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.

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 dormanproducts.com 的投資者關係部分找到。在我們開始之前，我想提醒大家，我們準備好的發言、收益報告和投資者介紹，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新的 10-Q、10-K 和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-GAAP measures. Reconciliations of these non-GAAP 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公認會計準則指標。這些非 GAAP 指標與最直接可比較的 GAAP 指標的對帳表包含在我們收益報告所附的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 first quarter 2025 earnings call. As Alex mentioned, I'll start with a high-level review of the results and then cover the actions we've taken over the last several years to position us well to address tariffs. I'll also touch on the observations we're seeing within each of our segments. Turning to Slide 3.

謝謝，亞歷克斯。早安，感謝您參加我們的 2025 年第一季財報電話會議。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，然後介紹我們在過去幾年中為解決關稅問題所採取的行動。我還將談談我們在每個部分中看到的觀察結果。翻到幻燈片 3。

I wanted to briefly touch on the quarter. David will provide more detail, but we had an outstanding first quarter with strong top and bottom line results. Consolidated net sales for the quarter grew 8% year-over-year to $508 million. Our team continues to do a great job on the new product development front, which contributed to our growth. We also delivered solid margin expansion in the quarter.

我想簡單談談本季的情況。大衛將提供更多細節，但我們第一季表現出色，營收和利潤均表現強勁。本季綜合淨銷售額年增 8% 至 5.08 億美元。我們的團隊在新產品開發方面繼續做出出色的工作，這促進了我們的成長。本季我們也實現了利潤率的穩定成長。

Adjusted operating margin for Q1 2025 was 17%, expanding 310 basis points compared to the same period last year. This margin performance was again led by our light duty business, which drove solid margin improvement over last year's first quarter. Lastly, adjusted diluted EPS increased over last year's first quarter by an impressive 54% to $2.02 and free cash flow in the quarter was $40 million, allowing us to repay $20 million of debt and repurchased $12 million of our common stock. Overall, we began the year with strong results that support our expectations for continued growth this year. On Slide 4, we thought it would be valuable to discuss some of the investments we've made in our business over the last several years, which position us well to perform in situations of economic uncertainty like we currently face.

2025 年第一季調整後營業利益率為 17%，較去年同期擴大 310 個基點。這一利潤率表現再次由我們的輕型車業務所引領，該業務推動利潤率較去年第一季穩步提升。最後，調整後的稀釋每股收益較去年第一季大幅增加 54%，達到 2.02 美元，本季自由現金流為 4,000 萬美元，使我們能夠償還 2,000 萬美元的債務並回購 1,200 萬美元的普通股。總體而言，我們今年的業績表現強勁，這支持了我們對今年持續成長的預期。在投影片 4 上，我們認為討論過去幾年我們在業務上進行的一些投資是有價值的，這些投資使我們在當前面臨的經濟不確定情況下能夠表現良好。

I'd like to caveat that the situation has been highly fluid, as you all know, and we are following it closely. I've been extremely impressed with our team and their ability to pivot and navigate through the day-to-day challenges. It speaks to the level of talent we have across the organization. First, as we discussed on our last call, we've taken significant steps to diversify our supply chain since the Section 301 tariffs on Chinese imports went into effect in 2018 and 2019. Entering 2025 and before the new tariffs were put into effect, we have been executing a plan to continue to reduce our share of products sourced from China.

我想提醒的是，正如大家所知，局勢一直非常不穩定，我們正在密切關注。我們的團隊以及他們應對日常挑戰的能力給我留下了深刻的印象。這體現了我們整個組織的人才水準。首先，正如我們在上次電話會議上討論的那樣，自 2018 年和 2019 年針對中國進口產品徵收 301 條款關稅生效以來，我們已採取重大措施來實現供應鏈多元化。進入2025年，在新關稅生效之前，我們一直在執行一項計劃，繼續減少來自中國的產品份額。

In 2025, we estimate that approximately 30% to 40% will be sourced from partners in China, approximately 30% in the U.S. and the remainder from various regions around the world. We will continue to remain focused on optimizing our supply chain strategy. We believe this level of diversification gives us a competitive advantage, it's not just an effort to capture cost savings. Our asset-light manufacturing strategy and expertise stand out as competitive advantages, allowing us to identify and partner with leading manufacturers around the globe to drive redundancy, flexibility and resiliency within our supply chain.

到2025年，我們估計約有30%至40%的供應將來自中國的合作夥伴，約有30%的供應將來自美國的合作夥伴，其餘的供應將來自世界各地。我們將繼續致力於優化我們的供應鏈策略。我們相信這種程度的多樣化為我們帶來了競爭優勢，而不僅僅是為了節省成本。我們的輕資產製造策略和專業知識成為我們脫穎而出的競爭優勢，使我們能夠找到並與全球領先的製造商合作，以推動我們供應鏈中的冗餘、靈活性和彈性。

The end result is better products at better prices for our customers and end users. Through our strategic sourcing investments, we developed a strong relationship to our supply partners. Our scale often makes us a strategic customer for our vendors. In many instances, we're one of their largest customers. This scale and strategic position fosters deep partnerships with our suppliers that ultimately benefit our customers and end users.

最終結果是我們能以更優惠的價格為客戶和最終用戶提供更好的產品。透過我們的策略採購投資，我們與供應合作夥伴建立了牢固的關係。我們的規模常常使我們成為供應商的策略客戶。在很多情況下，我們是他們最大的客戶之一。這種規模和策略地位促進了我們與供應商的深厚合作關係，最終使我們的客戶和最終用戶受益。

Next, the products that we sell play an essential role in everyday life. Our products sell people get to work, get their kids to school, take vacations and visit friends and family. Our products also help businesses keep their goods flowing from Point A to Point B and provide everyday services to local communities. The majority of our product portfolio is nondiscretionary in nature. So if you are in need of one of our parts, odds are your vehicle is not operating or not operating safely.

其次，我們銷售的產品在日常生活中扮演著至關重要的角色。我們的產品幫助人們上班、送孩子上學、度假以及拜訪朋友和家人。我們的產品還可以幫助企業保持貨物從 A 點到 B 點的流通，並為當地社區提供日常服務。我們的大部分產品組合本質上都是非自由支配的。因此，如果您需要我們的某個零件，您的車輛很可能無法運行或無法安全運行。

Nondiscretionary parts have historically done well in uncertain economic times. And for decades, we have successfully navigated various diverse economic environments. Furthermore, we believe our innovation strategy and the strength of our brands position us well to succeed. Our innovative solutions are core not only to our success, but also to the success of our customers and technicians who rely on our new products for their own growth and profitability. We've also strategically invested in our brands over the last several years, which has led to the Dorman, Dayton and Super ATV brands being sought after in their respective segments.

從歷史上看，在經濟不確定的時期，非自由支配部分的表現都很好。幾十年來，我們成功應對了各種不同的經濟環境。此外，我們相信我們的創新策略和品牌實力將使我們獲得成功。我們的創新解決方案不僅是我們成功的核心，也是依靠我們的新產品實現自身成長和獲利的客戶和技術人員成功的核心。過去幾年，我們也對我們的品牌進行了策略性投資，這使得 Dorman、Dayton 和 Super ATV 品牌在各自的領域受到追捧。

And finally, our financial profile serves as a significant benefit to our investors and customers. We have a strong balance sheet and liquidity position, allowing us to manage higher costs from tariffs in the short term to invest in inventory to support our customer needs and to capitalize on strategic growth opportunities along the way. We expect our strong financial foundation will stand out as a key competitive advantage compared to our peers. In the end, we have the experience and playbook in the right set of solutions, suppliers and customers, along with the financial strength to navigate the changing trade environment. Before I turn it over to David, let me touch on the observations we're seeing across our segments on Slide 5.

最後，我們的財務狀況為我們的投資者和客戶帶來了巨大的利益。我們擁有強大的資產負債表和流動性狀況，使我們能夠在短期內管理關稅帶來的更高成本，從而投資庫存來滿足客戶需求，並利用過程中的策略成長機會。我們預計，我們強大的財務基礎將成為我們與同行相比的關鍵競爭優勢。最終，我們擁有正確的解決方案、供應商和客戶方面的經驗和策略，以及應對不斷變化的貿易環境的財務實力。在將其交給戴維之前，請允許我先談談我們在幻燈片 5 中看到的各部分的觀察結果。

These observations include what we've experienced leading up to the recent tariff announcements and what we see looking forward in the new trade and economic environment. Starting with light duty, as I mentioned, positive macro trends continued into the year. Vehicle miles traveled declined higher year-over-year, and we expect that used vehicles will continue to stay on the road longer, both of which are key contributors to the excess of the aftermarket. During the quarter, customer demand was strong, a trend that followthrough from the end of 2024. In particular, we had a strong season with our patented oil filter housing product that we've discussed in previous calls.

這些觀察包括我們在最近的關稅公告之前所經歷的情況以及我們對新貿易和經濟環境的展望。正如我所提到的，從輕度工作開始，積極的宏觀趨勢持續到了今年。汽車行駛里程比去年同期下降幅度較大，我們預計二手車將繼續在路上行駛更長時間，這兩者都是售後市場過剩的主要原因。本季度，客戶需求強勁，此趨勢將持續到 2024 年底。特別是，我們在先前的電話會議中討論過的專利濾油器外殼產品在本季表現強勁。

This, along with the success of our other recent new products were key contributors to our growth. In our heavy duty segment, the soft market conditions that impacted trucking and freight markets in 2024 continued through this year's first quarter. While the early signs of stabilization we spoke of on our last call continued the first few months of 2025, the announcement of tariffs and the impact on demand for trucking and freight began creating additional uncertainty in the market late in the quarter. We're watching it closely, and we'll continue to position the business for long-term success through portfolio expansion, productivity initiatives. Specialty Vehicle, we remain encouraged with the enthusiasm in the UTV and ATV markets.

這項舉措以及我們近期其他新產品的成功是我們成長的關鍵因素。在我們的重型車輛領域，影響 2024 年卡車運輸和貨運市場的疲軟市場狀況持續到了今年第一季。雖然我們在上次電話會議上提到的穩定早期跡像在 2025 年頭幾個月持續存在，但關稅的宣布以及對卡車運輸和貨運需求的影響在本季度末開始為市場帶來額外的不確定性。我們正在密切關注，並將繼續透過產品組合擴張和生產力舉措來確保業務的長期成功。專用車輛方面，我們對 UTV 和 ATV 市場的熱情感到鼓舞。

The feedback we get from end users is that they are very engaged and positive, we're not seeing a pullback in ridership. However, consumer spending softened during the quarter and may be a headwind moving forward. We remain focused on expanding our portfolio of nondiscretionary parts, capturing share and expanded dealer network as the market rebounce. With that, I'll hand it off to David to review our Q1 financial performance.

我們從最終用戶那裡得到的回饋是，他們非常參與並且非常積極，我們沒有看到乘客人數的下降。然而，本季消費者支出有所疲軟，可能會對未來造成不利影響。隨著市場反彈，我們將繼續專注於擴大非必需零件產品組合、搶佔市場份額和擴大經銷商網路。有了這些，我將把審查我們第一季財務表現的任務交給大衛。

Thanks, Kevin. As we turn to Slide 6, I'd like to point out that we maintained our positive momentum from the fourth quarter. Consolidated net sales in the first quarter were $508 million, up 8% year-over-year driven by strong customer demand. Light duty again drove above-market sales growth on positive macro trends and the success of our new products. I'll cover each of our segments more in just a moment.

謝謝，凱文。當我們翻到幻燈片 6 時，我想指出我們保持了第四季以來的積極勢頭。第一季綜合淨銷售額為 5.08 億美元，受強勁客戶需求推動，較去年同期成長 8%。由於宏觀趨勢向好以及新產品的成功，輕型卡車的銷售再次實現高於市場的增幅。我稍後會更詳細地介紹我們的每個部分。

Adjusted gross margin for the quarter was 40.9%, a 220 basis point increase compared to the prior year period. Margin expanded on the strong sales growth and favorable mix of new products coupled with cost savings generated from supplier diversification as well as productivity and automation initiatives. Adjusted SG&A expense as a percentage of net sales was 23.9%, down 100 basis points compared to the first quarter of 2024. Adjusted operating income was $86 million in the first quarter, up 33% compared to the same period last year. Adjusted operating margin expanded 310 basis points to 17%, largely from the gross margin improvement, I just discussed.

本季調整後的毛利率為 40.9%，較去年同期增加 220 個基點。強勁的銷售成長、良好的新產品組合，加上供應商多樣化以及生產力和自動化措施帶來的成本節約，使利潤率擴大。調整後的銷售、一般及行政費用佔淨銷售額的百分比為 23.9%，與 2024 年第一季相比下降了 100 個基點。第一季調整後營業收入為8,600萬美元，較去年同期成長33%。調整後的營業利潤率擴大了 310 個基點，達到 17%，這主要得益於我剛才討論的毛利率的提高。

Finally, adjusted diluted EPS in the first quarter was $2.02, up 54% compared to last year's first quarter, along with increased adjusted operating income and lower interest expense as a result of our debt repayments over the last 12 months. Our effective tax rate benefited from a timing difference in the quarter. Finally, our share repurchase program activity over the last year contributed to positive EPS growth. Next, let me provide updates on each of our business segments, starting with light duty on Slide 7. Light duty's performance in the first quarter was outstanding, with net sales increasing 14% year-over-year.

最後，第一季調整後的稀釋每股收益為 2.02 美元，較去年第一季增加 54%，同時由於我們在過去 12 個月內償還債務，調整後的營業收入增加，利息支出降低。我們的有效稅率受益於本季的時間差異。最後，我們去年的股票回購計畫活動促進了每股盈餘的正成長。接下來，讓我提供我們每個業務部門的最新情況，從投影片 7 上的輕型業務開始。輕型卡車第一季表現優異，淨銷售額年增14%。

The growth was driven by strong customer demand, especially for our new products, with foundationally positive macro trends continuing through the first quarter. POS was up high single digits versus shipments that were up low teens in the quarter. Light duty also drove strong margin improvement with segment operating margin increasing to 19.9% for the quarter, a 380 basis point increase compared to the same period last year. This margin expansion benefited from new product mix and cost savings from our ongoing automation and productivity initiatives, along with higher leverage on our volumes. Turning to Slide 8.

成長的動力來自於強勁的客戶需求，尤其是對我們新產品的需求，而第一季宏觀趨勢基本上保持積極。本季，POS 銷售量上漲了高個位數，而出貨量則上漲了低十幾個百分點。輕型貨車業務也推動了利潤率的強勁提升，本季分部營業利潤率增至 19.9%，較去年同期增加 380 個基點。利潤率的擴大得益於新產品組合、我們正在進行的自動化和生產力措施帶來的成本節約，以及產量槓桿的提高。翻到幻燈片 8。

Heavy duty net sales were again impacted by continued market pressures in freight transportation and the trucking aftermarket. Net sales were down 11% year-over-year, and segment operating margin turned slightly negative as the business has a larger fixed cost manufacturing footprint in our U.S. manufacturing plants compared to our other segments. While the early signs of stabilization that we mentioned on our last call continued to play out through the first few months of the year, the uncertainty that tariffs inject into the trucking and freight market give us further pause to call for a rebound in our business. That said, we'll continue to invest in new product development and commercialization initiatives to capture share and best serve our customers when the market does turn.

重型卡車淨銷售額再次受到貨運和卡車售後市場持續的市場壓力的影響。淨銷售額年減 11%，且部門營業利潤率略微變為負值，因為與我們的其他部門相比，該業務在美國製造工廠的固定成本製造足跡更大。雖然我們在上次電話會議上提到的早期穩定跡像在今年頭幾個月繼續顯現，但關稅對卡車運輸和貨運市場帶來的不確定性讓我們進一步暫停預測業務反彈。也就是說，我們將繼續投資於新產品開發和商業化計劃，以便在市場轉變時佔領市場份額並為客戶提供最好的服務。

Moving to Slide 9. UTV and ATV ridership in the Specialty Vehicle segment remains healthy. But in the first quarter, net sales declined 9% year-over-year, which proved to be a notable shift from the growth we saw at the end of last year. We expect this turn was a result of consumer sentiment changing after the holiday season and as uncertainty around tariffs took hold. This weakened confidence level in the economy will likely continue, given general uncertainty in tariffs, but we expect demand to return once the economy restabilized.

移至幻燈片 9。特種車輛領域的 UTV 和 ATV 乘客量依然保持健康。但第一季淨銷售額年減 9%，與去年年底的成長相比出現了顯著轉變。我們預計，這種轉變是假期過後消費者情緒變化以及關稅不確定性加劇的結果。鑑於關稅的普遍不確定性，經濟信心水準可能仍將持續走弱，但我們預計，一旦經濟恢復穩定，需求就會回升。

To best serve our customers and riders, we'll continue to invest in product offerings through our internal innovation funnel and through tuck-in acquisitions of value-added brands. We'll also continue to expand our dealer network to further broaden our market share. On the margin front, segment operating margin declined to 10.2% in the quarter. The main driver of this decline was the deleverage of our fixed cost and sales decline. Similar to the heavy duty business, we manufacture a portion of our products internally in the U.S.

為了更好地服務我們的客戶和乘客，我們將繼續透過內部創新管道和對增值品牌的收購來投資產品。我們也將繼續擴大我們的經銷商網絡，以進一步擴大我們的市場份額。在利潤率方面，本季分部營業利益率下降至 10.2%。造成這一下降的主要原因是我們的固定成本去槓桿化和銷售下降。與重型業務類似，我們的部分產品在美國國內生產。

Within our operations, we are taking appropriate actions to mitigate margin degradation should the market softness continue in the future. Turning to our cash flow on Slide 10. Our cash flow in the quarter was solid and strong earnings growth, offset by investments we made in inventory. Free cash flow in the first quarter was $40 million, essentially in line with the same period last year. During the quarter, we deployed $11 million in capital expenditures, repaid $20 million in debt and repurchased $12 million of our common stock.

在我們的營運中，如果未來市場繼續疲軟，我們將採取適當的措施來減輕利潤率的下降。轉到幻燈片 10 上的現金流。本季我們的現金流穩健，獲利成長強勁，但被我們在庫存方面的投資所抵銷。第一季自由現金流為4000萬美元，與去年同期基本持平。本季度，我們部署了 1,100 萬美元的資本支出，償還了 2,000 萬美元的債務，並回購了 1,200 萬美元的普通股。

The cash flow we've generated and our use of cash over the last 8 quarters have positioned us well with the liquidity to manage increased costs as a result of the tariffs. I'll touch on our liquidity in just a minute, but I wanted to highlight that our capital allocation strategy has proved to be a key value driver for Dorman. As we look forward, our long-term strategy doesn't change. We will continue to look at our debt and leverage targets first and then utilize our cash to invest internally as that is where we get our greatest return. We'll then look to invest in strategic growth opportunities and opportunistically repurchase shares.

過去 8 個季度我們產生的現金流量和現金使用情況使我們擁有充足的流動性來管理關稅導致的成本增加。我稍後會談到我們的流動性，但我想強調的是，我們的資本配置策略已被證明是 Dorman 的關鍵價值驅動因素。展望未來，我們的長期戰略不會改變。我們將繼續首先關注我們的債務和槓桿目標，然後利用我們的現金進行內部投資，因為這是我們獲得最大回報的地方。然後，我們將尋求投資策略成長機會並適時回購股票。

That said, in the short term, we'll be utilizing a portion of our cash and balance sheet flexibility to fund the higher cost of inventory resulting from the tariffs. On Slide 11, we highlight much of what we've already covered, which is that we believe we have the balance sheet capacity and liquidity to help finance the cash needed for the significant increase in inventory costs we anticipate as a result of the tariffs. As you can see, net debt was reduced to $402 million and our net leverage ratio was 1.01x adjusted EBITDA, down from 1.12x at the end of last year. Additionally, our total liquidity increased to $660 million at the end of the quarter, up from $642 million at the end of 2024. In the end, we expect the strength of our balance sheet will be a competitive advantage against the market conditions we currently face.

也就是說，在短期內，我們將利用部分現金和資產負債表彈性來為關稅導致的庫存成本上升提供資金。在第 11 張投影片上，我們強調了我們已經涵蓋的大部分內容，即我們相信我們擁有資產負債表能力和流動性，可以幫助為因關稅而預計的庫存成本大幅增加所需的現金提供資金。如您所見，淨債務減少至 4.02 億美元，我們的淨槓桿率為調整後 EBITDA 的 1.01 倍，低於去年年底的 1.12 倍。此外，我們的總流動資金從 2024 年底的 6.42 億美元增加到本季末的 6.6 億美元。最後，我們預計，強勁的資產負債表將成為我們應對當前市場狀況的競爭優勢。

Turning to Slide 12, I'd like to cover our guidance for 2025. Given our performance in the first quarter and the future outlook for our underlying business, we are reaffirming our 2025 net sales growth guidance of 3% to 5% and adjusted diluted EPS guidance range of $7.55 to $7.85. Please note that this guidance does not include any impact related to U.S. enacted or proposed in 2025 for any potential retaliatory measures from U.S. trade partners.

翻到第 12 張投影片，我想介紹我們對 2025 年的指導。鑑於我們第一季的業績以及我們基礎業務的未來前景，我們重申 2025 年淨銷售額成長預期為 3% 至 5%，調整後稀釋每股收益預期範圍為 7.55 美元至 7.85 美元。請注意，本指南不包括與美國在2025年頒布或提議的任何來自美國貿易夥伴的潛在報復措施相關的任何影響。

As you know, the situation remains highly fluid, and negotiations between various countries and the administration are ongoing. Adding to the fluidity, our conversations and negotiations with our suppliers and customers are ongoing as well. With this level of uncertainty, we felt it was prudent to continue providing our positive view of the underlying business and not include any impact from increased pricing or higher costs associated with the tariffs. As the situation gains more clarity, both at the macro level and for Dorman, we'll look to provide an updated view with the impacts to our expected results. And finally, for modeling purposes, we continue to expect a 24% effective tax rate.

如您所知，局勢仍然高度不穩定，各國和政府之間的談判仍在進行中。除流動性外，我們與供應商和客戶的對話和談判也在持續進行中。在這種不確定性的情況下，我們認為明智的做法是繼續對基礎業務保持積極的看法，而不考慮與關稅相關的價格上漲或成本上升的影響。隨著宏觀層面和多爾曼的情況變得更加明朗，我們將尋求提供更新的觀點，以了解其對我們預期結果的影響。最後，出於建模目的，我們繼續預期有效稅率為 24%。

With that, I'll now turn it back over to Kevin to conclude. Kevin?

好了，現在我將把發言權交還給凱文來做總結。凱文？

Thanks, David. I'll just reinforce what we've said throughout. First and foremost, we had an outstanding first quarter that positions us well for growth this year. While there is significant level of uncertainty that exists with tariffs, we have the experience and talent to address the challenges ahead. Additionally, we have a stronger supplier base, a more diversified customer base and a stronger financial foundation than we've ever had before.

謝謝，大衛。我只是想強調我們一直以來所說的話。首先，我們第一季的業績非常出色，這為今年的成長奠定了良好的基礎。儘管關稅存在很大的不確定性，但我們擁有應對未來挑戰的經驗和才能。此外，我們擁有比以往更強大的供應商基礎、更多樣化的客戶基礎和更強大的財務基礎。

We'll continue focusing on the needs of our customers and end users and look to capitalize on the opportunities we see in the marketplace. With that, I would now like to open the call up for questions. Operator?

我們將繼續關注客戶和最終用戶的需求，並尋求利用我們在市場上看到的機會。好了，現在我想開始回答大家的提問。操作員？

(Operator Instructions) Scott Stember, Roth Capital Partners.

（操作員指示）羅斯資本合夥公司 (Roth Capital Partners) 的 Scott Stember。

Very strong performance in heavy duty, very strong high single-digit POS, a few ticks below the sell-in. So I guess the first question is, have you seen any of your bigger customers buying ahead to get ahead of tariffs? And if not, is this just a function that the difference of you guys gaining shelf space with some of your bigger, faster-growing partners that are expanding rapidly.

重型表現非常強勁，高個位數 POS 非常強勁，低於賣出幾個刻度。所以我想第一個問題是，您是否看到任何大客戶為了避開關稅而提前購買？如果不是，這是否只是你們與一些規模更大、增長更快、擴張迅速的合作夥伴爭奪貨架空間的區別？

Yes. Good -- it's Kevin. Good question, Scott. The light duty business was very strong in the quarter. It followed a very strong fourth quarter as well.

是的。很好——是凱文。問得好，史考特。本季輕型車業務表現非常強勁。此前第四季的業績也十分強勁。

Our POS, as we noted in the prepared remarks, was up high single digit, very similar to what we were seeing last year, really driven by our new product performance and the macros continue to be favorable as well, as we mentioned. Our sell-in growth actually did exceed our POS growth in the quarter really as a result of an easier comp in the quarter. If we look back and you look at the 2-year stack in the quarter, kind of more in line with what the POS growth that we saw some timing issues last year in the first quarter versus the fourth quarter of 2023. To answer your question around the buy ahead, we haven't seen any indications at this point yet of customers getting ahead of the tariffs, at least from ordering from us. That could potentially happen.

正如我們在準備好的發言中指出的那樣，我們的 POS 增長了高個位數，與我們去年看到的情況非常相似，這實際上是受到我們新產品性能的推動，而且正如我們所提到的，宏觀經濟也繼續保持良好勢頭。由於本季的比較容易，我們的銷售成長實際上確實超過了 POS 成長。如果我們回顧一下，看看本季的兩年堆疊情況，就會發現它與 POS 成長情況更加一致，即去年第一季與 2023 年第四季相比存在一些時間問題。回答您關於提前購買的問題，目前我們還沒有看到任何跡象表明客戶可以提前享受關稅優惠，至少從向我們訂購的情況來看是如此。這可能會發生。

But as of now, we haven't seen any meaningful evidence of that.

但截至目前，我們還沒有看到任何有意義的證據。

Got it. And on tariffs, obviously, I appreciate there's a lot of uncertainties here, and it's hard to predict anything. But clearly, with 145% as it stands right now, some folks are concerned of what impact it will have on your business. So it sounds like you're a lot better positioned than you were the last time around with tariffs, but could you just again remind us of some of the mitigation efforts that you have in place, and then timing of when we would actually start to see anything hit your results?

知道了。關於關稅，顯然我知道這裡存在著許多不確定性，很難預測任何事情。但顯然，鑑於目前的成長率達到 145%，有些人擔心它會對您的業務產生什麼影響。因此，聽起來您在關稅問題上比上次處於更有利的地位，但您能否再次提醒我們您已採取的一些緩解措施，以及我們何時才能真正開始看到對您的結果產生影響？

Yes, sure. I mean, as you mentioned, Scott, again, it's Kevin. It's really too early to tell. It's a very fluid situation, the 232 auto tariffs just went into effect a couple of days ago. And as we talked about, we do have a very diverse supply chain, much more diverse than it was, say, 5, 6 years ago, and that's intentional.

是的，當然。我的意思是，正如你提到的，斯科特，那是凱文。現在說還太早。情況非常不穩定，232 汽車關稅幾天前剛生效。正如我們所討論的，我們的供應鏈確實非常多樣化，比 5、6 年前更加多樣化，這是有意為之。

I'll just reiterate what our footprint looks like across Dorman, roughly 30% to 40% is sourced from China in 2025. We estimate and that's obviously depending on product mix. Approximately 30% is in the U.S., and the balance is really spread around the rest of the globe. I also want to point out, keep in mind that the vast majority of our parts, Scott, are nondiscretionary in nature. And it's really been fairly inelastic historically as we've gone through periods like this.

我只想重申我們在多爾曼的足跡，到 2025 年，大約 30% 到 40% 的貨物來自中國。我們估計，這顯然取決於產品組合。其中約 30% 在美國，其餘則分佈在全球其他地區。我還想指出，史考特，請記住，我們絕大多數的部分本質上都是非自由裁量的。從歷史上看，當我們經歷過這樣的時期時，它確實是相當缺乏彈性的。

And just to hit on your point is when it impacts us, again, we're on FIFO inventory and it all depends on when some of these tariffs has started to come into effect. But in general, we won't see a lot of these tariffs for roughly 6 months or so after we start incurring them just because of FIFO. In regards to your question on mitigation, I mean, look, we've been down this road before. We feel like we have a really good playbook to deal with this. We're -- obviously, we're going to look to negotiate with our -- both our supply base in terms of cost concessions, driving further productivity initiatives in the business, and then obviously look to offset any difference through price changes.

再次強調，您說的問題是，當它對我們產生影響時，我們採用先進先出 (FIFO) 庫存，而這一切都取決於其中一些關稅何時開始生效。但一般來說，由於先進先出原則，我們在開始產生這些關稅後大約 6 個月內不會看到很多關稅。關於你關於緩解的問題，我的意思是，你看，我們以前已經走過這條路了。我們覺得我們有一套非常好的劇本來解決這個問題。顯然，我們將尋求與我們的供應商群體進行談判，在成本優惠方面做出讓步，推動業務的進一步生產力舉措，然後顯然尋求透過價格變化來抵消任何差異。

Bret Jordan, Jefferies.

布雷特·喬丹，傑富瑞。

On that EBIT margin in light vehicle, you talked about product mix versus leverage on the volume, could you sort of break out what was product mix versus leverage on the volume. You talked about a lot of new to the aftermarket and the oil filter housing. And -- could you just sort of pocket where that pretty solid margin expansion came from?

關於輕型車輛的息稅前利潤率，您談到了產品組合與銷售槓桿的關係，您能否具體說明產品組合與銷售槓桿的關係。您談到了很多關於售後市場和機油濾清器外殼的新鮮事。您能否解釋一下利潤率大幅擴張的來源？

I mean, Bret, if you look back, we've been generating these type of operating margins in light duty for quite some time now. And really, it is mostly due to our product mix, we don't spike out exactly how much is due to just core business, but a lot of it is due to the new product mix. And as we've talked about before, we've had some really successful new products come to market. But also the macros have improved, right? I mean if you look at the sweet spot, the 7- to 14-year-old vehicle, which is where we really target, new product development that vehicle cohort has really grown over the last couple of years, and we see that cohort continuing to grow over the next 3 to 4 years.

我的意思是，布雷特，如果你回顧一下，你會發現我們在輕型作業中已經創造了這種類型的營業利潤率相當長一段時間了。事實上，這主要歸功於我們的產品組合，我們無法確切地知道有多少成長歸功於核心業務，但很大一部分歸功於新的產品組合。正如我們之前談到的，我們已經有一些非常成功的新產品進入市場。但是宏也得到了改進，對嗎？我的意思是，如果你看一下最佳點，即 7 至 14 年車齡的車輛，也就是我們真正的目標，新產品開發在過去幾年中，該車輛群體確實有所增長，並且我們預計該群體在未來 3 至 4 年內將繼續增長。

Those 2 factors have really enabled us to expand margin in the light-duty side.

這兩個因素確實使我們能夠擴大輕型方面的利潤。

Okay. And then I guess when you think about the more commoditized mix in the portfolio of maybe chassis, and your supply chain footprint versus competition, is there any material difference? Or is everybody pretty much exposed in the same countries? Have you thought about yourself versus maybe the Tenneco chassis businesses or the MevoTech chassis businesses. Is there any risk that someone will be advantaged given their geographic mix or is pretty much be everybody the same?

好的。然後我想，當您考慮底盤產品組合中更商品化的組合，以及您的供應鏈足跡與競爭對手相比，是否存在實質差異？還是說幾乎所有人都在同一個國家都感染？您是否考慮過自己與 Tenneco 底盤業務或 MevoTech 底盤業務的比較？是否存在這樣的風險：某人會因其地理分佈而獲得優勢，還是幾乎每個人都一樣？

Yes. Good question, Bret. I'm not going to comment on a specific category, but I think overall, you're going to see some of that in terms of -- depending on where all the tariffs settle out, which I don't think anyone really knows at this point. There will be situations where someone may be advantage versus somebody else. I'll just say that as we look at our footprint, and if you look at kind of the exposure to kind of the highest tariff region now, hard parts is very -- still very indexed to China.

是的。問得好，布雷特。我不會對特定類別發表評論，但我認為總體而言，你會看到其中的一些情況 - 取決於所有關稅的結算方式，我認為目前沒有人真正知道這一點。在某些情況下，某人可能比其他人更有優勢。我只想說，當我們審視我們的足跡時，如果你看看現在對最高關稅地區的曝險，你會發現硬體部分仍然與中國密切相關。

And if we look at kind of our exposure, we think we're a lot less exposed than most. And given our balanced footprint around the globe, overall, we see ourselves in a competitive advantage situation.

如果我們看一下我們的曝光程度，我們會發現我們的曝光程度比大多數人都低得多。鑑於我們在全球範圍內均衡的佈局，總體而言，我們認為自己處於競爭優勢地位。

Okay. Great. And then on pricing, in the event we do get tariffs and -- the conversations with your large retail customers, does it sound as if everybody is still expecting to be able to pass most of these through? Or is it just the magnitude of the tariffs, something that some place along the line of the supply chain or the retailers, they have to eat some of this higher cost.

好的。偉大的。然後關於定價，如果我們確實獲得關稅，並且與大型零售客戶的對話，聽起來好像每個人都仍然期望能夠通過其中的大部分？或者只是關稅的幅度，供應鏈上的某些環節或零售商必須承擔部分更高的成本。

Yes, Bret, I'm not going to comment on what our customers are going to do. But I'll just say that from our perspective, we're pretty comfortable that we can offset the net impact at the end of the day. Keep in mind, again, our portfolio is mostly nondiscretionary repair parts, hard parts. Our customers -- we're a strategic partner to all of our customers. We have a strong brand, both to our customers and the end users.

是的，布雷特，我不會評論我們的客戶將要做什麼。但我只想說，從我們的角度來看，我們非常有信心最終能夠抵消淨影響。請記住，我們的產品組合主要是非自由支配的維修零件和五金零件。我們的客戶－我們是所有客戶的策略夥伴。無論對於我們的客戶還是最終用戶來說，我們都擁有強大的品牌。

And we have a proven playbook. I mean we've done this before back in the 2018 time frame. And at the end of the day, we think we'll be successful wherever this ends up.

我們有一個行之有效的策略。我的意思是我們早在 2018 年就做過這件事。最終，我們相信無論結果如何，我們都會成功。

Gary Prestopino, Barrington Research.

巴林頓研究公司的加里‧普雷斯托皮諾 (Gary Prestopino)

David, just a couple of questions on the income statement. It looked like your interest expense really stepped down sequentially. And I'm wondering, is that -- it looks like net interest was about $7.4 million or something like that. Is that a good number to use for the rest -- throughout the rest of the year on a quarterly basis? Or is there something in there that caused that step down?

大衛，關於損益表我只想問幾個問題。看起來您的利息支出確實連續下降了。我想知道的是——看起來淨利息大約是 740 萬美元或類似的數字。對於全年剩餘時間而言，按季度使用這個數字是否合適？或者其中是否存在某種因素導致了這種下降？

Yes, Gary, it's Dave. We've been focused, as you know, on paying down our debt since the acquisition, and we paid down close to $270 million over the last couple of years, which has brought our leverage down to 1x EBITDA. So the balance sheet is as strong as it's ever been. We feel really confident about our ability to navigate in this current situation. As far as the interest expense, Gary, I think using the current quarter is probably a good assumption for your model.

是的，加里，我是戴夫。如您所知，自收購以來，我們一直致力於償還債務，過去幾年我們償還了近 2.7 億美元，這使我們的槓桿率降至 1 倍 EBITDA。因此資產負債表一如既往地強勁。我們對於在當前形勢下航行的能力充滿信心。至於利息費用，加里，我認為使用當前季度可能對您的模型來說是一個很好的假設。

Okay. Great. That's very helpful. And then could you maybe -- just getting back to this whole issue with the tariffs and all that versus when this happened before, which was, I think, 2018, 2019, I believe, how much of your product was been sourced from China? And then what takeaways did you get from that experience that you could definitely use in this current environment, if the tariffs start really impacting the price of products.

好的。偉大的。這非常有幫助。然後，您能否—回到關稅問題以及所有這些問題，與之前發生的情況相比，也就是 2018 年、2019 年，有多少產品來自中國？那麼，如果關稅開始真正影響產品價格，您從那次經驗中得到了什麼教訓，可以在當前環境下運用呢？

Yes, Gary, it's Kevin. Good question. I think 6, 7 years ago when we went through that before, I believe we disclosed roughly 70-plus percent was China, Taiwan, of which a vast majority of that was China. I think that was the disclosure back then. So we're in a materially different place as we look at Dorman today.

是的，加里，我是凱文。好問題。我想，6、7年前，當我們討論這個問題的時候，我們揭露過大約70%以上是中國、台灣，其中絕大多數是中國。我認為那是當時的披露。因此，當我們今天審視多爾曼時，我們處於一個實質上不同的位置。

When we think about mitigation efforts, what have we learned? I think at the end of the day, that event 6, 7 years ago caused us to really look at diversifying the supply chain, building a more resilient supply chain, and we've been very successful doing that. So we have kind of a core base of knowledge of these other regions. We know where there's capacity. We know where we can source quality parts at the right value around the globe.

當我們思考緩解措施時，我們學到了什麼？我認為，最終，6、7 年前的事件促使我們真正考慮實現供應鏈多樣化，建立更具彈性的供應鏈，而且我們在這方面非常成功。因此，我們對這些其他地區有核心的知識基礎。我們知道哪裡有容量。我們知道在全球範圍內哪裡可以以合適的價格購買優質零件。

So we have experienced folks in all these regions at this point. At the end of the day, we've also spent a lot of time driving productivity throughout our business. We've talked about it before. We undertook an automation exercise where our strategy initiative, where we have automated our distribution facilities, and we're going to continue to look to drive cost out of the business. And whatever is left -- whatever net cost we have less, we look to offset that in price.

因此，目前我們在所有這些地區都有經驗豐富的人員。最終，我們也花了大量時間來提高整個業務的生產力。我們之前已經討論過這個了。我們進行了一項自動化演習，這是我們的策略舉措，我們已經實現了配送設施的自動化，我們將繼續尋求降低業務成本的方法。無論剩下多少——無論淨成本有多少，我們都希望透過價格來抵銷。

Okay. And then just -- if I could just sneak one more in, and it's a real easy one. You cited new products as driving growth in the quarter. Would you be able to maybe not quantify the actual number of -- level of sales, but how many basis points within a range of the growth for the quarter was contributed by new products?

好的。然後——如果我能再偷偷地再加一個，那就真的很容易了。您指出新產品是推動本季成長的關鍵。您是否無法量化實際的銷售水平，但在本季的成長範圍內有多少個基點是由新產品貢獻的？

Yes. Gary, we don't break that out, but I will tell you that as you look at the overall market growth across the industry, you're looking at a low single-digit growth -- and that's kind of compared to high single-digit POS growth that we experienced. For the most part, that differential is driven by new products. That has been our business model, and it will continue to be a business model. We've been very comfortable saying historically that we're able to significantly outperform market growth because of our business model.

是的。加里，我們不會單獨列出這一點，但我可以告訴你，當你觀察整個行業的整體市場成長時，你會看到一個較低的個位數成長 - 這與我們經歷的 POS 高個位數成長相比。在大多數情況下，這種差異是由新產品所推動的。這就是我們的商業模式，並且它將繼續是一種商業模式。從歷史上看，我們非常樂意說，由於我們的商業模式，我們能夠顯著超越市場成長。

So we think that's going to continue.

因此我們認為這種情況將會持續下去。

Justin Ages, CJS Securities.

賈斯汀·艾吉斯（Justin Ages），CJS 證券公司。

I appreciate the color on how much is sourced from China. Can you give us any indication how that split out amongst the segments like -- of that 30% to 40%, is the majority going to light duty? Or any color on that would be helpful.

我很欣賞來自中國的顏色。您能否告訴我們，各個部分之間的分配情況如何？例如，在 30% 到 40% 中，大部分是用於輕型工作嗎？或任何顏色都會有幫助。

Yes, Justin, good question. We're not going to get into the details or disclose the impact in our different segments, mainly because, frankly, it's too fluid at this point and for competitive reasons. I will make a couple of comments, though, on each individual segment. In light duty, as I mentioned before, we believe we have a very diversified supply chain and footprint. We have less exposure, as I mentioned before, to the overall hard parts market in the aftermarket, we think significantly so.

是的，賈斯汀，問得好。我們不會深入討論細節或揭露其對我們不同部門的影響，主要是因為坦白說，目前情況過於不確定，而且出於競爭原因。不過，我將針對每個部分發表一些評論。在輕型運輸方面，正如我之前提到的，我們相信我們擁有非常多樣化的供應鏈和足跡。正如我之前提到的，我們認為我們對售後市場中整體硬體零件市場的接觸較少，這一點相當明顯。

So overall, we view that we have a competitive advantage in relation to the competitive set in light duty. If you look at heavy duty, very modest impact from tariffs. We believe, again, as we look around the competitive landscape that we're well advantaged there. In specialty vehicle, we do have some exposure to China, but we also have a large manufacturing footprint in the U.S. in Madison, Indiana.

因此總體而言，我們認為我們在輕型商用車的競爭中具有競爭優勢。如果你看一下重稅，你會發現關稅的影響非常小。我們再次相信，當我們環顧競爭格局時，我們擁有很大的優勢。在專用車輛領域，我們確實在中國有一些業務，但我們在美國印第安納州麥迪遜也擁有大量的製造基地。

If we look at that entire industry, it's very heavily indexed to China. So again, we think we're well positioned as we look against the competitive set. And also keep in mind, Justin, that we do have a pretty good footprint here in the U.S. As I mentioned before, we do source roughly 30% of our products here in the U.S., some of that through our own plants. We do have 6 Dorman-owned manufacturing plants in the U.S.

如果我們看一下整個產業，就會發現它與中國的連結非常緊密。因此，我們再次認為，在與競爭對手的競爭中，我們處於有利地位。賈斯汀，請記住，我們在美國確實有相當好的業務。正如我之前提到的，我們大約 30% 的產品確實來自美國，其中一些是透過我們自己的工廠生產的。我們在美國確實有 6 家 Dorman 旗下製造工廠。

And obviously, we'll look to leverage them as much as we can where it makes sense.

顯然，我們會在合理的情況下盡可能地利用它們。

Scott Stember, Roth Capital Partners.

羅斯資本合夥公司的 Scott Stember。

Just one follow-up, these 232 tariffs. Just trying to figure out if you guys have been able to ascertain whether there'll be any exemptions and also talking about -- the President talking about on auto parts there being some kind of a clawback. I'm not sure if that is related to just the OEM and OEM production? Or is there some benefit or offset for the pure aftermarket?

接下來是這 232 項關稅。只是想弄清楚你們是否能夠確定是否會有任何豁免，並且還在談論——總統談到汽車零件方面是否存在某種回扣。我不確定這是否僅與 OEM 和 OEM 生產有關？或者對於純售後市場來說是否存在一些好處或補償？

Yes. Scott, we're still working through that. But in general, the auto part, the 232 tariffs is really tied to the HTS code and where we have parts to fall into those codes were obviously subject to that tariff. And there's a bunch of other tariffs as well, and they all interplay. But -- for the most part, it's -- that exemption was for the OE, but we're still evaluating the impact on Dorman.

是的。斯科特，我們仍在努力解決這個問題。但總體而言，對於汽車零件而言，232 關稅實際上與 HTS 代碼相關，而凡是符合這些代碼的零件顯然都要受到該關稅的約束。此外還有許多其他關稅，它們相互影響。但是 — — 在大多數情況下 — — 該豁免是針對 OE 的，但我們仍在評估對 Dorman 的影響。

Ladies and gentlemen, that concludes the question-and-answer session. Thank you all for joining, and you may now disconnect.

女士們、先生們，問答環節到此結束。感謝大家的加入，現在可以斷開連線了。