Dorman Products, Inc. Provides Business Update on COVID-19 and Announces Date to Report First Quarter 2020 Financial Results - Seite 2

Dorman exited 2019 with a strong balance sheet and since then, in light of the COVID-19 pandemic, took proactive steps to manage its costs and bolster its balance sheet and cash position, including:

• Drawing down $99 million from its $100 million revolving credit facility, which matures in December 2022;
• Increasing the level of receivables collected under various factoring programs;
• Temporarily suspending its share repurchase program;
• Managing inventories and operating costs to quickly adjust to demand dynamics;
• Limiting non-essential operating expenses; and
• Deferring capital expenditures, as appropriate.

As a result of these actions, the Company increased its cash position and, as of April 7, 2020, the Company had approximately $300 million in cash and cash equivalents. Dorman believes that its asset light model and ample liquidity position it well to navigate the current economic disruption associated with the ongoing COVID-19 pandemic.

2020 Guidance Update
Mr. Olsen also stated, “Given the uncertainty of the current environment, we are withdrawing our previously announced guidance for fiscal 2020, which did not contemplate the impact of the COVID-19 pandemic. While the duration and magnitude of this situation remain uncertain, we believe our strong balance sheet and liquidity position us well to navigate these conditions.  Our industry is extremely resilient, and we believe that once the government-imposed lockdowns are lifted, auto and truck repairs will return to more normal levels.”

The Company will provide further insight into COVID-19’s impact on its business operations when it reports its first quarter fiscal 2020 results.

Date to Report First Quarter 2020 Financial Results
Dorman also announced today that it will report its financial results for the first quarter ended March 28, 2020 on April 27, 2020. 

2020 Annual Meeting of Shareholders
Sensitive to the public health and travel concerns of its shareholders, and the protocols that public health authorities and federal, state and local governments have imposed or may impose or recommend, Dorman intends to conduct its 2020 annual meeting of shareholders virtually. Additional information will be provided to Dorman’s shareholders in advance of the meeting when Dorman files its proxy materials with the U.S. Securities and Exchange Commission.