UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): October 25, 2018
Dorman Products, Inc.
(Exact name of Registrant as Specified in Charter)
Pennsylvania | 000-18914 | 23-2078856 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
3400 East Walnut Street, Colmar, Pennsylvania 18915
(Address of Principal Executive Offices) (Zip Code)
Registrants telephone number, including area code: (215) 997-1800
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. | Results of Operation and Financial Condition. |
The information being furnished in this Item 2.02 and in Exhibit 99.1 shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such filing.
On October 25, 2018, Dorman Products, Inc. (the Company) issued a press release announcing its operating results for the third quarter ended September 29, 2018. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.
Certain statements in this document constitute forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. While forward-looking statements sometimes are presented with numerical specificity, they are based on various assumptions made by management regarding future circumstances over many of which the Company has little or no control. Forward-looking statements may be identified by words including anticipate, believe, estimate, expect, and similar expressions. The Company cautions readers that forward-looking statements, including, without limitation, those relating to future business prospects, revenues, working capital, liquidity, and income, are subject to certain risks and uncertainties that would cause actual results to differ materially from those indicated in the forward-looking statements. Factors that could cause actual results to differ from forward-looking statements include but are not limited to: (i) competition in the automotive aftermarket; (ii) unfavorable economic conditions; (iii) the loss or decrease in sales among one of our top customers; (iv) customer consolidation in the automotive aftermarket leading to less favorable customer contract terms; (v) foreign currency fluctuations and our dependence on foreign suppliers; (vi) extended credit to customers who may be unable to pay; (vii) the loss of a key vendor; (viii) limited customer shelf space; (ix) reliance on new product development; (x) changes in automotive technology and improvements in the quality of new vehicle parts; (xi) claims of intellectual property infringement made by original equipment manufacturers; (xii) quality problems with product after their production and sale to customers; (xiii) loss of third party transportation providers on whom we depend; (xiv) unfavorable results of legal proceedings; (xv) our executive chairman and his family own a significant portion of the company; (xvi) operations may be subject to quarter fluctuations and disruptions from events beyond our control; (xvii) regulations related to conflict minerals could adversely impact our business; (xviii) cyber-attacks could adversely impact our business; (xix) imposition of new taxes, duties, or tariffs could adversely affect our business; (xx) exposure to risks related to accounts receivable; (xxi) the market price of our common stock may be volatile and expose us to securities class action litigation; (xxii) losing the services of our executive officers or other highly qualified and experienced contributors could adversely affect our business; and (xxiii) we may not be able to identify suitable acquisition candidates, complete acquisitions or integrate acquisitions successfully. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. For additional information concerning factors that could cause actual results to differ materially from the information contained in this report, reference is made to the information in Part I, Item 1A Risk Factors in the Companys Annual Report on Form 10-K for the fiscal year ended December 30, 2017. You should not place undue reliance on forward-looking statements. Such statements speak only as to the date on which they are made, and we undertake no obligation to update publicly or revise any forward-looking statement, regardless of future developments or availability of new information.
Item 9.01 | Financial Statements and Exhibits. |
Exhibit Number | Description | |
99.1 | Press Release dated October 25, 2018 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DORMAN PRODUCTS, INC. | ||||||||||
Date: October 26, 2018 | By: | /s/ Michael P. Ginnetti | ||||||||
Name: Michael P. Ginnetti | ||||||||||
Title: Interim Chief Financial Officer |
Exhibit 99.1
For Immediate Release
Dorman Products, Inc. Reports Third Quarter 2018 Results
Highlights:
| Net sales of $248.0 million, up 10% compared to $224.6 million last year. |
| Diluted earnings per share (EPS) on a GAAP basis increased 29% to $1.03 compared to $0.80 last year. Adjusted diluted EPS of $1.06, up 31% compared to $0.81 last year. |
| Completed the acquisition of Flight Systems Automotive Group LLC (Flight). |
COLMAR, PA (October 25, 2018) Dorman Products, Inc. (the Company or Dorman) (NASDAQ:DORM), a leading supplier in the automotive aftermarket, today announced its financial results for the third quarter ended September 29, 2018.
3rd Quarter Financial Results
The Company reported third quarter 2018 net sales of $248.0 million, up 10% compared to net sales of $224.6 million in the third quarter of 2017. Included in net sales were approximately $10 million of sales from MAS Automotive Distribution Inc. (MAS) which was acquired in October of 2017 and $1.7 million of sales from Flight Systems Automotive Group LLC (Flight) which we acquired on August 31st, 2018. Excluding the sales contributions from MAS and Flight, net sales growth was approximately 5%.
Gross profit grew 8% to $95.0 million in the third quarter from $88.1 million last year. Gross profit percentage for the third quarter was 38.3% compared to 39.2% in the same quarter last year. The primary change (approximately 80 Bps) in gross profit percentage is a result of the impact of acquisitions which carry lower gross margins compared to our historical levels.
Selling, general, and administrative (SG&A) expenses grew 13% to $51.3 million in the third quarter on a GAAP basis compared to $45.3 million in the same quarter last year. Excluding the impact of acquisition -related expenses, adjusted SG&A increased 11% to $49.9 million or 20.1% of net sales in the quarter compared to $45.0 million or 20.0% of net sales in the same quarter last year. The increase in adjusted SG&A was due to the inclusion of expenses of acquired operations, the reinvestment of tax savings from the Tax Cuts and Jobs Act (TCJA) in our product development and sales organizations, and wage and benefit inflation.
Income tax expense was $9.8 million in the third quarter, or 22.3% of income before income taxes down from $16.0 million, or 37.1% of income before income taxes recorded in the same quarter last year. The reduction in tax rate compared to prior year is primarily a result of the TCJA.
Net income for the third quarter of 2018 was $34.0 million, or $1.03 per diluted share compared to $27.0 million, or $0.80 per diluted share, in the prior year quarter. Adjusted net income in the third quarter was $35.0 million, or $1.06 per diluted share, up 28% compared to $27.5 million or $0.81 per diluted share in the prior year quarter.
Please refer to the Non-GAAP Financial Measures reported in the supplemental schedules at the end of this release for a detailed reconciliation of the reported (GAAP) financial information to the adjusted financial information (Non-GAAP).
Matt Barton, Dorman Products Chief Executive Officer, stated: Id like to take this opportunity to thank all of our Dorman contributors for delivering a solid quarter and to welcome all of our new contributors from Flight Systems Automotive Group that we acquired late in the third quarter. Flight generated approximately $22 million of net sales in fiscal 2017 and is a leading manufacturer and remanufacturer of complex automotive electronics and diesel fuel system components. Complex electronics and diesel fuel systems represent important growth opportunities for our Company. By combining our capabilities with Flight, we believe we will be a firmly established leader in these areas for years to come.
Kevin Olsen, Dorman Products President and Chief Operating Officer, stated: We experienced improved end market conditions with both sell-in and sell through rates improving in the quarter. Customer inventory destocking pressures, which had been a headwind earlier in the year, continued to ease in the quarter as well. New Product development remains robust, positioning us well for the future. We launched 1,478 new SKUs in the quarter, a 55% increase over last year. Additionally, net sales from our Dorman Heavy Duty Solution lines continue to be strong, growing 30% year to date.
Tariffs
Effective September 24th, the Office of the United States Trade Representative (USTR) imposed an additional tariff on approximately $200 billion worth of Chinese imports. The tariff will be approximately 10% until December 31, 2018 and will increase to 25% effective January 1, 2019. The tariffs enacted to date will increase the cost of many products that are manufactured for Dorman in China. We are taking several actions to fully mitigate the impact of the tariffs including, but not limited to, price increases to our customers and cost concessions from our suppliers. We do not anticipate that the tariffs will materially impact gross profit in the fourth quarter of 2018. Although we expect to mitigate the impact of tariffs in fiscal 2019, we expect selling price increases associated with the tariffs to be fully offset by the higher tariffs incurred.
2018 Guidance
Excluding the impact of Flight and tariffs, we are maintaining our fiscal 2018 full year sales growth guidance range of 4%-6%. On a GAAP basis, fiscal 2018 EPS is expected to be in the $3.96 to $4.08 range. We continue to expect adjusted EPS to be in the $4.15 to $4.27 range, or a 23% to 27% growth rate.
Share Repurchases
Under its share repurchase program, Dorman repurchased 86.1 thousand shares of its common stock for $6.4 million at an average share price of $73.84 during the quarter ended September 29, 2018. The Company has $42.9 million left under its current share repurchase authorization.
About Dorman Products
Dorman Products, Inc. is a leading supplier of Dealer Exclusive replacement parts to the Automotive, Medium and Heavy Duty Aftermarkets. Dorman products are marketed under the Dorman®, OE Solutions, HELP!®, AutoGrade, First Stop, Conduct-Tite®, TECHoice, Dorman® Hybrid Drive Batteries and Dorman HD Solutions brand names.
Non-GAAP Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains Non-GAAP financial measures. The reasons why we believe these measures provide useful information to investors and a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these Non-GAAP measures are included in the supplemental schedules attached.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to the Companys future growth rates. Words such as believe, demonstrate, expect, estimate, forecast, anticipate, should and likely and similar expressions identify forward-looking statements. In addition, statements that are not historical should also be considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, competition in the automotive aftermarket industry, concentration of the Companys sales and accounts receivable among a small number of customers, the impact of consolidation in the automotive aftermarket industry, foreign currency fluctuations, the ability to successfully identify, complete, and integrate acquisitions, imposition of new taxes, duties or tariffs, and other risks detailed in the Companys filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 30, 2017. The Company is under no obligation to (and expressly disclaims any such obligation to) update any of the information in this press release if any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise.
Investor Relations Contact
Kevin Olsen, President and COO
kolsen@dormanproducts.com
(215) 997-1800
Visit our website at www.dormanproducts.com
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per-share amounts)
13 Weeks | 13 Weeks | |||||||||||||||
Third Quarter (unaudited) | 09/29/18 | Pct.* | 09/30/17 | Pct.* | ||||||||||||
Net sales |
$ | 247,954 | 100.0 | $ | 224,615 | 100.0 | ||||||||||
Cost of goods sold |
152,957 | 61.7 | 136,489 | 60.8 | ||||||||||||
Gross profit |
94,997 | 38.3 | 88,126 | 39.2 | ||||||||||||
Selling, general and administrative expenses |
51,264 | 20.7 | 45,336 | 20.2 | ||||||||||||
Income from operations |
43,733 | 17.6 | 42,790 | 19.1 | ||||||||||||
Other income (expense), net |
61 | 0.0 | 168 | 0.1 | ||||||||||||
Income before income taxes |
43,794 | 17.7 | 42,958 | 19.1 | ||||||||||||
Provision for income taxes |
9,777 | 3.9 | 15,950 | 7.1 | ||||||||||||
Net income |
$ | 34,017 | 13.7 | $ | 27,008 | 12.0 | ||||||||||
Diluted earnings per share |
$ | 1.03 | $ | 0.80 | ||||||||||||
Weighted average diluted shares outstanding |
33,095 | 33,909 | ||||||||||||||
39 Weeks | 39 Weeks | |||||||||||||||
Third Quarter (unaudited) | 09/29/18 | Pct.* | 09/30/17 | Pct.* | ||||||||||||
Net sales |
$ | 713,363 | 100.0 | $ | 675,502 | 100.0 | ||||||||||
Cost of goods sold |
437,029 | 61.3 | 407,781 | 60.4 | ||||||||||||
Gross profit |
276,334 | 38.7 | 267,721 | 39.6 | ||||||||||||
Selling, general and administrative expenses |
149,828 | 21.0 | 134,890 | 20.0 | ||||||||||||
Income from operations |
126,506 | 17.7 | 132,831 | 19.7 | ||||||||||||
Other income (expense), net |
286 | 0.0 | 472 | 0.0 | ||||||||||||
Income before income taxes |
126,792 | 17.8 | 133,303 | 19.7 | ||||||||||||
Provision for income taxes |
27,789 | 3.9 | 48,671 | 7.2 | ||||||||||||
Net income |
$ | 99,003 | 13.9 | $ | 84,632 | 12.5 | ||||||||||
Diluted earnings per share |
$ | 2.98 | $ | 2.47 | ||||||||||||
Weighted average diluted shares outstanding |
33,267 | 34,202 |
* | Percentage of sales information does not add due to rounding. |
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
09/29/18 | 12/30/17 | |||||||
Assets: |
||||||||
Cash and cash equivalents |
$ | 53,113 | $ | 71,691 | ||||
Accounts receivable |
301,049 | 241,880 | ||||||
Inventories |
239,957 | 212,149 | ||||||
Prepaid expenses |
7,838 | 7,129 | ||||||
Total current assets |
601,957 | 532,849 | ||||||
Property, plant & equipment, net |
96,794 | 92,692 | ||||||
Goodwill and other intangible assets, net |
100,772 | 88,157 | ||||||
Deferred income taxes, net |
4,297 | 7,884 | ||||||
Other assets |
45,242 | 44,342 | ||||||
Total assets |
$ | 849,062 | $ | 765,924 | ||||
Liabilities & shareholders equity: |
||||||||
Accounts payable |
$ | 97,937 | $ | 80,218 | ||||
Accrued expenses and other |
29,922 | 30,563 | ||||||
Total current liabilities |
127,859 | 110,781 | ||||||
Other long-term liabilities |
19,250 | 20,336 | ||||||
Shareholders equity |
701,953 | 634,807 | ||||||
Total liabilities and equity |
$ | 849,062 | $ | 765,924 |
Selected Cash Flow Information (unaudited):
13 Weeks | 39 Weeks | |||||||||||||||
(in thousands) | 09/29/18 | 09/30/17 | 09/29/18 | 09/30/17 | ||||||||||||
Depreciation, amortization and accretion |
$ | 6,669 | $ | 5,776 | $ | 19,673 | $ | 15,968 | ||||||||
Capital expenditures |
$ | 6,683 | $ | 5,504 | $ | 18,099 | $ | 17,436 |
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
(in thousands, except per-share amounts)
The Companys financial results include certain financial measures not derived in accordance with generally accepted accounting principles (GAAP). Non-GAAP financial measures should not be used as a substitute for GAAP measures, or considered in isolation, for the purpose of analyzing our operating performance, financial position or cash flows. Additionally, these non-GAAP measures may not be comparable to similarly titled measures reported by other companies. However, the Company has presented these non-GAAP financial measures because management believes this presentation, when reconciled to the corresponding GAAP measure, provides useful information to investors by offering additional ways of viewing the Companys results, profitability trends, and underlying growth relative to prior and future periods and to our peers. Non-GAAP financial measures may reflect adjustments for charges such as fair value adjustments, amortization, transaction costs, and other similar expenses related to acquisitions which the Company has determined are material as well as other items that are not related to the Companys ongoing performance.
Adjusted Net Income:
13 Weeks | 13 Weeks* | 39 Weeks | 39 Weeks* | |||||||||||||
(unaudited) | 09/29/18 | 09/30/17 | 09/29/18 | 09/30/17 | ||||||||||||
Net income (GAAP) |
$ | 34,017 | $ | 27,008 | $ | 99,003 | $ | 84,632 | ||||||||
Pretax acquisition-related inventory fair value adjustment [1] |
| | 1,779 | | ||||||||||||
Pretax acquisition-related intangible assets amortization [2] |
483 | | 1,474 | | ||||||||||||
Pretax acquisition-related transaction and other costs [3] |
857 | 310 | 1,189 | 310 | ||||||||||||
Pretax investment impairment [4] |
| | 1,064 | | ||||||||||||
Tax adjustment (related to above items) [5] |
(326 | ) | (108 | ) | (1,157 | ) | (108 | ) | ||||||||
Tax (benefit) charge related to pre 2016 state tax matters [5] |
| 254 | (368 | ) | 763 | |||||||||||
Adjusted net income (Non-GAAP) |
$ | 35,031 | $ | 27,464 | $ | 102,984 | $ | 85,597 | ||||||||
Diluted earnings per share (GAAP) |
$ | 1.03 | $ | 0.80 | $ | 2.98 | $ | 2.47 | ||||||||
Pretax acquisition-related inventory fair value adjustment [1] |
| | 0.05 | | ||||||||||||
Pretax acquisition-related intangible assets amortization [2] |
0.01 | | 0.04 | | ||||||||||||
Pretax acquisition-related transaction and other costs [3] |
0.03 | 0.01 | 0.04 | 0.01 | ||||||||||||
Pretax investment impairment [4] |
| | 0.03 | | ||||||||||||
Tax adjustment (related to above items) [5] |
(0.01 | ) | 0.00 | (0.03 | ) | 0.00 | ||||||||||
Tax (benefit) charge related to pre 2016 state tax matters [5] |
| 0.01 | (0.01 | ) | 0.02 | |||||||||||
Adjusted diluted earnings per share (Non-GAAP) |
$ | 1.06 | $ | 0.81 | $ | 3.10 | $ | 2.50 | ||||||||
Weighted average diluted shares outstanding |
33,095 | 33,909 | 33,267 | 34,202 |
* | Adjusted diluted earnings per share (Non-GAAP) may not add due to rounding. |
[ 1 ] Pretax acquisition-related inventory fair value adjustments result from adjusting the value of acquired inventory from historical cost to fair value. Such costs were $1.8 million pretax (or $1.3 million after tax) during the thirty-nine weeks ended September 29, 2018 and were included in Cost of Goods Sold.
[ 2 ] Pretax acquisition related intangible asset amortization results from allocating the purchase price of acquisitions to the acquired tangible and intangible assets of the acquired business and recognizing the cost of the intangible asset over the period of benefit. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe it is important for investors to understand that such intangible assets contribute to sales generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Such costs were $0.5 million pretax (or $0.4 million after tax) during the thirteen weeks ended September 29, 2018 and $1.5 million pretax (or $1.1 million after tax) during the thirty-nine September 29, 2018 and were included in Selling, General and Administrative expenses.
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
(in thousands, except per-share amounts)
[3] Pretax acquisition related transaction costs include costs incurred to complete and integrate acquisitions as well as accretion expenses related to contingent consideration obligations. Such costs were $0.9 million pretax (or $0.7 million after tax) during the thirteen weeks ended September 29, 2018 and $1.2 million pretax (or $0.9 million after tax) during the thirty-nine weeks ended September 29, 2018 and were included in Selling, General and Administrative expenses. Similar costs were $0.3 million pretax (or $0.2 million after tax) during the thirteen and thirty-nine weeks ended September 30, 2017.
[4] Pretax investment impairment results from the acquisition of the remaining outstanding shares of a previously unconsolidated entity. The estimated fair value of the net assets acquired was less than our prior investment in the entity. Such costs were $1.1 million pretax (and $1.1 million after tax) during the thirty-nine weeks ended September 29, 2018 and were included in Selling, General and Administrative expenses.
[5] These adjustments represent the aggregate tax effect of all Non-GAAP adjustments reflected in the table above of $0.3 million during the thirteen weeks ended September 29, 2018 and $1.2 million during the thirty-nine weeks ended September 29, 2018. Such items are estimated by applying the Companys overall estimated tax rate to the pretax amount, or, by applying a specific tax rate if one is appropriate. Also included in Provision for Income Taxes for the thirteen and thirty-nine weeks ended September 29, 2018 and September 30, 2017 are tax adjustments resulting from pre 2016 tax matters.
Adjusted SG&A Expenses:
13 Weeks | 13 Weeks | |||||||||||||||
(unaudited) | 09/29/18 | Pct.* | 09/30/17 | Pct.* | ||||||||||||
SG&A expenses (GAAP) |
$ | 51,264 | 20.7 | $ | 45,336 | 20.2 | ||||||||||
Pretax acquisition-related intangible assets amortization |
(483 | ) | (0.2 | ) | | | ||||||||||
Pretax acquisition-related transaction and other costs |
(857 | ) | (0.3 | ) | (310 | ) | (0.1 | ) | ||||||||
Adjusted SG&A expenses (Non-GAAP) |
$ | 49,924 | 20.1 | $ | 45,026 | 20.0 | ||||||||||
Net sales |
$ | 247,954 | $ | 224,615 |
* | Percentage of sales information does not add due to rounding. |
39 Weeks | 39 Weeks | |||||||||||||||
(unaudited) | 09/29/18 | Pct. | 09/30/17 | Pct. | ||||||||||||
SG&A expenses (GAAP) |
$ | 149,828 | 21.0 | $ | 134,890 | 20.0 | ||||||||||
Pretax acquisition-related intangible assets amortization |
(1,474 | ) | (0.2 | ) | | | ||||||||||
Pretax acquisition-related transaction and other costs |
(1,189 | ) | (0.2 | ) | (310 | ) | 0.0 | |||||||||
Pretax investment impairment |
(1,064 | ) | (0.1 | ) | | | ||||||||||
Adjusted SG&A expenses (Non-GAAP) |
$ | 146,101 | 20.5 | $ | 134,890 | 20.0 | ||||||||||
Net sales |
$ | 713,363 | $ | 675,502 |
DORMAN PRODUCTS, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
(in thousands, except per-share amounts)
2018 Guidance:
The Company provided the following guidance ranges related to their fiscal 2018 outlook:
December 29, 2018 | ||||||||
Fiscal Year Ended (unaudited) | Low End* | High End* | ||||||
Diluted earnings per share (GAAP) |
$ | 3.96 | $ | 4.08 | ||||
Pretax acquisition-related inventory fair value adjustment [1] |
0.09 | 0.09 | ||||||
Pretax acquisition-related intangible assets amortization [2] |
0.06 | 0.06 | ||||||
Pretax acquisition-related transaction and other costs [2] |
0.07 | 0.07 | ||||||
Pretax investment impairment [2] |
0.03 | 0.03 | ||||||
Tax adjustment (related to above items) [3] |
(0.05 | ) | (0.05 | ) | ||||
Tax benefit related to pre 2016 state tax matters [3] |
(0.01 | ) | (0.01 | ) | ||||
Adjusted diluted earnings per share (Non-GAAP) |
$ | 4.15 | $ | 4.27 | ||||
Weighted average diluted shares outstanding |
33,267 | 33,267 |
[1] - Included in Cost of Goods Sold
[2] - Included in Selling, General, and Administrative Expenses
[3] - Included in Provision for Income Taxes
* | Adjusted diluted earnings per share (Non-GAAP) may not add due to rounding. |
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