Dorman Products (DORM) 10-Q 26 Jul 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 26, 2021	Jul. 22, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 26, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Trading Symbol	DORM
Title of 12(b) Security	Common stock, par value $0.01 per share
Security Exchange Name	NASDAQ
Entity Registrant Name	Dorman Products, Inc.
Entity Central Index Key	0000868780
Current Fiscal Year End Date	--12-25
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity File Number	0-18914
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	23-2078856
Entity Address, Address Line One	3400 East Walnut Street
Entity Address, City or Town	Colmar
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	18915
City Area Code	215
Local Phone Number	997-1800
Entity Common Stock, Shares Outstanding		31,829,255
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2021	Jun. 27, 2020	Jun. 26, 2021	Jun. 27, 2020
Income Statement [Abstract]
Net sales	$ 310,635	$ 233,182	$ 598,647	$ 490,912
Cost of goods sold	200,510	154,034	384,002	326,967
Gross profit	110,125	79,148	214,645	163,945
Selling, general and administrative expenses	69,517	61,525	132,386	121,260
Income from operations	40,608	17,623	82,259	42,685
Other income (expense), net	90	(297)	54	2,334
Income before income taxes	40,698	17,326	82,313	45,019
Provision for income taxes	9,080	3,441	17,965	8,359
Net income	$ 31,618	$ 13,885	$ 64,348	$ 36,660
Earnings per share:
Basic	$ 0.99	$ 0.43	$ 2.01	$ 1.13
Diluted	$ 0.99	$ 0.43	$ 2	$ 1.13
Weighted average shares outstanding:
Basic	31,942	32,269	31,995	32,312
Diluted	32,089	32,338	32,136	32,388

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 26, 2021	Dec. 26, 2020
Current assets:
Cash and cash equivalents	$ 155,539	$ 155,576
Accounts receivable, less allowance for doubtful accounts of $1,220 and $1,260, respectively	446,242	460,878
Inventories	356,759	298,719
Prepaids and other current assets	16,069	7,758
Total current assets	974,609	922,931
Property, plant and equipment, net	88,164	91,009
Operating lease right-of-use assets	38,295	39,002
Goodwill	91,080	91,080
Intangible assets, net of accumulated amortization of $10,886 and $9,194, respectively	23,513	25,207
Deferred tax asset, net	12,396	12,450
Other assets	41,420	38,982
Total assets	1,269,477	1,220,661
Current liabilities:
Accounts payable	126,463	117,878
Accrued compensation	12,634	19,711
Accrued customer rebates and returns	165,577	155,751
Other accrued liabilities	27,854	29,305
Total current liabilities	332,528	322,645
Long-term operating lease liabilities	35,950	37,083
Other long-term liabilities	4,462	3,555
Deferred tax liabilities, net	3,552	3,819
Commitments and contingencies (Note 5)
Shareholders’ equity:
Common stock, $0.01 par value; 50,000,000 shares authorized; 31,891,890 and 32,168,740 shares issued and outstanding in 2021 and 2020, respectively	319	322
Additional paid-in capital	71,947	64,085
Retained earnings	820,719	789,152
Total shareholders’ equity	892,985	853,559
Total liabilities and shareholders' equity	$ 1,269,477	$ 1,220,661

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 26, 2021	Dec. 26, 2020
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts and customer credits	$ 1,220	$ 1,260
Accumulated amortization of intangible assets	$ 10,886	$ 9,194
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	31,891,890	32,168,740
Common stock, shares outstanding	31,891,890	32,168,740

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]
Beginning Balance at Dec. 28, 2019	$ 773,584	$ 326	$ 52,605	$ 720,653
Beginning Balance, Shares at Dec. 28, 2019		32,556,263
Exercise of stock options, shares		10
Compensation expense under Incentive Stock Plan	2,718		2,718
Purchase and cancellation of common stock	(5,865)	$ (1)	(177)	(5,687)
Purchase and cancellation of common stock, Shares		(98,329)
Cancellation of non-vested stock, net of issuances	505	$ 1	504
Cancellation of non-vested stock, net of issuances, shares		(11,845)
Other stock-related activity, net of tax	(470)		(244)	(226)
Other stock related activity, net of tax, Shares		(5,686)
Net income	36,660			36,660
Ending Balance at Jun. 27, 2020	807,132	$ 326	55,406	751,400
Ending Balance, Shares at Jun. 27, 2020		32,440,413
Beginning Balance at Mar. 28, 2020	791,375	$ 325	53,454	737,596
Beginning Balance, Shares at Mar. 28, 2020		32,434,665
Compensation expense under Incentive Stock Plan	1,504		1,504
Purchase and cancellation of common stock	(86)	$ (1)	(2)	(83)
Purchase and cancellation of common stock, Shares		(1,620)
Issuance of non-vested stock, net of cancellations	506	$ 2	504
Issuance of non-vested stock, net of cancellations, Shares		10,129
Other stock-related activity, net of tax	(52)		(54)	2
Other stock related activity, net of tax, Shares		(2,761)
Net income	13,885			13,885
Ending Balance at Jun. 27, 2020	807,132	$ 326	55,406	751,400
Ending Balance, Shares at Jun. 27, 2020		32,440,413
Beginning Balance at Dec. 26, 2020	$ 853,559	$ 322	64,085	789,152
Beginning Balance, Shares at Dec. 26, 2020	32,168,740	32,168,740
Exercise of stock options	$ 736		736
Exercise of stock options, shares		17,346
Compensation expense under Incentive Stock Plan	4,491		4,491
Purchase and cancellation of common stock	(31,249)	$ (3)	(549)	(30,697)
Purchase and cancellation of common stock, Shares		(305,031)
Issuance of non-vested stock, net of cancellations	2,493		2,493
Issuance of non-vested stock, net of cancellations, Shares		20,521
Other stock-related activity, net of tax	(1,393)		691	(2,084)
Other stock related activity, net of tax, Shares		(9,686)
Net income	64,348			64,348
Ending Balance at Jun. 26, 2021	$ 892,985	$ 319	71,947	820,719
Ending Balance, Shares at Jun. 26, 2021	31,891,890	31,891,890
Beginning Balance at Mar. 27, 2021	$ 883,811	$ 321	67,596	815,894
Beginning Balance, Shares at Mar. 27, 2021		32,115,528
Exercise of stock options	420		420
Exercise of stock options, shares		5,732
Compensation expense under Incentive Stock Plan	2,380		2,380
Purchase and cancellation of common stock	(27,275)	$ (2)	(480)	(26,793)
Purchase and cancellation of common stock, Shares		(266,871)
Issuance of non-vested stock, net of cancellations	2,493		2,493
Issuance of non-vested stock, net of cancellations, Shares		38,120
Other stock-related activity, net of tax	(462)		(462)
Other stock related activity, net of tax, Shares		(619)
Net income	31,618			31,618
Ending Balance at Jun. 26, 2021	$ 892,985	$ 319	$ 71,947	$ 820,719
Ending Balance, Shares at Jun. 26, 2021	31,891,890	31,891,890

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 26, 2021	Jun. 27, 2020
Cash Flows from Operating Activities:
Net income	$ 64,348	$ 36,660
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, amortization and accretion	16,850	15,035
Gain on equity method investment		(2,498)
Provision for doubtful accounts	31	105
Benefit for deferred income taxes	(213)	(1,074)
Provision for stock-based compensation	4,491	2,718
Changes in assets and liabilities:
Accounts receivable	14,605	151,818
Inventories	(58,039)	11,564
Prepaids and other current assets	(8,288)	2,462
Other assets	(3,451)	(4,779)
Accounts payable	8,818	(8,665)
Accrued customer rebates and returns	9,826	7,557
Accrued compensation and other liabilities	(9,891)	8,498
Cash provided by operating activities	39,087	219,401
Cash Flows from Investing Activities:
Acquisition, net of cash acquired		(14,308)
Property, plant and equipment additions	(10,153)	(7,143)
Cash used in investing activities	(10,153)	(21,451)
Cash Flows from Financing Activities:
Proceeds of revolving credit line		99,000
Proceeds from exercise of stock options	736
Other stock-related activity	1,141	120
Purchase and cancellation of common stock	(30,848)	(5,865)
Cash (used in) provided by financing activities	(28,971)	93,255
Net (Decrease) Increase in Cash and Cash Equivalents	(37)	291,205
Cash and Cash Equivalents, Beginning of Period	155,576	68,353
Cash and Cash Equivalents, End of Period	155,539	359,558
Supplemental Cash Flow Information
Cash paid for interest expense	140	433
Cash paid for income taxes	$ 26,436	$ 1,750

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 26, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation As used herein, unless the context requires otherwise, “Dorman,” the “Company,” “we,” “us,” or “our” refers to Dorman Products, Inc. and its subsidiaries. Our ticker symbol on the NASDAQ Global Select Market is “DORM.” The accompanying unaudited condensed consolidated financial statements have been prepared under U.S. generally accepted accounting principles (“GAAP”) for interim financial information and under the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). However, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 26, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 25, 2021 or any future period. We may experience significant fluctuations from quarter to quarter in our results of operations due to the timing of orders placed by our customers. The introduction of new products and product lines to customers may cause significant fluctuations from quarter to quarter. These financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 26, 2020.

Business Acquisitions and Inves

Business Acquisitions and Investments	6 Months Ended
	Jun. 26, 2021
Business Combinations [Abstract]
Business Acquisitions and Investments	2. Business Acquisitions and Investments DPL Holding Corporation (“Dayton Parts”) On June 25, 2021, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) to acquire 100% of the equity interests of Dayton Parts, a manufacturer of undercarriage and other parts designed to serve the heavy-duty vehicle sector of the aftermarket, for aggregate consideration of $338 million, subject to certain customary adjustments based on, among other things, the amount of cash, indebtedness and working capital in the business of Dayton Parts as of the closing date of the transaction. The transaction is subject to customary closing conditions, including the expiration or earlier termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. We expect the transaction to close in the second half of 2021. In connection with entering into the Merger Agreement, we have entered into a commitment letter, dated as of June 25, 2021, with certain lenders as counterparties, whereby the lenders have committed to provide us with a new $600 million revolving credit facility (the “ New Facility ”) contingent on the satisfaction of customary conditions. The New Facility would replace our existing $100 million revolving credit facility. We may finance all or a portion of the merger transaction and related fees and expenses with borrowings under the New Facility. Power Train Industries, Inc. (“PTI”) On January 2, 2020, we acquired the remaining outstanding stock of PTI not already owned by the Company. The total purchase price for PTI was approximately $30.7 million, which included $18.4 million paid for the remaining 60% of the outstanding stock, subject to customary purchase price adjustments, and $12.3 million which represents the fair value of the previously held 40% equity interest in PTI that was acquired by the Company in 2016. As a result of the acquisition, we recorded a gain of $2.5 million in other (expense) income, net during the quarter ended March 28, 2020 from the increase in fair value of our original 40% interest in PTI. We previously accounted for our 40% interest as an equity-method investment.

Sales of Accounts Receivable

Sales of Accounts Receivable	6 Months Ended
	Jun. 26, 2021
Receivables [Abstract]
Sales of Accounts Receivable	3. Sales of Accounts Receivable We have entered several customer-sponsored programs administered by unrelated financial institutions that permit us to sell certain accounts receivable at discounted rates to the financial institutions. Transactions under these agreements were accounted for as sales of accounts receivable and the related accounts receivable were removed from our Condensed Consolidated Balance Sheet at the times of the sales transactions. Under these agreements, we sold $433.7

Inventories

Inventories	6 Months Ended
	Jun. 26, 2021
Inventory Disclosure [Abstract]
Inventories	4. Inventories Inventories include the cost of material, freight, direct labor and overhead utilized in the processing of our products and are stated at the lower of cost or net realizable value. Inventories were as follows: (in thousands) June 26, 2021 December 26, 2020 Bulk product $ 163,429 $ 136,726 Finished product 188,250 157,484 Packaging materials 5,080 4,509 Total $ 356,759 $ 298,719

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 26, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	5 . Commitments and Contingencies Acquisitions We have contingent consideration related to certain of our prior acquisitions due to the uncertainty of the ultimate amount of payment which will become due as earnout payments if performance targets are achieved. As of June 26, 2021 and December 26, 2020, we accrued $10.4 million and $8.0 million, respectively, representing the fair value of the estimated payments that we expected would become due in connection with prior acquisitions based upon performance targets. For the three and six months ended June 26, 2021, we increased this accrual by $2.4 million, primarily due to the expected payout based on negotiations with the applicable counterparties. The changes in the accrual balance were included in Selling, General and Administration expenses. If the performance targets are fully achieved, the maximum contingent payments under these agreements would be $16.0 million using foreign currency exchange rates at June 26, 2021. Other Contingencies We are a party to or otherwise involved in legal proceedings that arise in the ordinary course of business, such as various claims and legal actions involving contracts, employment claims, competitive practices, intellectual property infringement, product liability claims and other matters arising out of the conduct of our business. In the opinion of management, none of the actions, individually or in the aggregate, taking into account relevant insurance coverage, would likely have a material financial impact on the Company, and we believe the range of reasonably possible losses from current matters, taking into account relevant insurance coverage, is immaterial. However, legal matters are subject to inherent uncertainties, and the possibility exists that the ultimate resolution of any of these matters could have a material adverse impact on the Company’s cash flows, financial position and results of operations in the period in which any such effects are recorded.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 26, 2021
Revenue From Contract With Customer [Abstract]
Revenue Recognition	6 . Revenue Recognition Our primary source of revenue is from contracts with and purchase orders from customers. In many instances, our contract with a customer is the customer’s purchase order. Upon acceptance of the purchase order, a contract exists with a customer as it indicates approval and commitment of the parties, identifies the rights of both parties, identifies the payment terms, has commercial substance, and makes it probable that we will collect the consideration to which we will be entitled in exchange for the goods transferred to the customer. We record estimates for cash discounts, defective and slow-moving product returns, promotional rebates, core return deposits and other discounts in the period the related product revenue is recognized (“Customer Credits”). The provision for Customer Credits is recorded as a reduction from gross sales, and reserves for Customer Credits are shown as an increase of accrued customer rebates and returns. Customer Credits are estimated based on contractual provisions, historical experience, and our assessment of current market conditions. Actual Customer Credits have not differed materially from estimated amounts for each period presented. Amounts billed to customers for shipping and handling are included in net sales. Costs associated with shipping and handling are included in cost of goods sold. We have concluded that our estimates of variable consideration are not constrained. All our revenue was recognized under the point of time approach during the six months ended June 26, 2021 and June 27, 2020. We do not have significant financing arrangements with our customers, as our credit terms are all 365 days or less. Also, we do not receive noncash consideration (such as materials or equipment) from our customers to facilitate the fulfillment of our contracts. Disaggregated Revenue The following tables present our disaggregated net sales by type of major good / product line, and geography. Three Months Ended Six Months Ended (in thousands) June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020 Powertrain $ 128,811 $ 94,598 $ 249,933 $ 202,740 Chassis 98,551 66,025 184,038 139,400 Automotive body 66,970 58,825 135,632 123,457 Hardware 16,303 13,734 29,044 25,315 Net sales $ 310,635 $ 233,182 $ 598,647 $ 490,912 Three Months Ended Six Months Ended (in thousands) June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020 Net sales to U.S. customers $ 295,081 $ 222,563 $ 568,231 $ 463,955 Net sales to non-U.S. customers 15,554 10,619 30,416 26,957 Net sales $ 310,635 $ 233,182 $ 598,647 $ 490,912

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 26, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	7 . Stock-Based Compensation Restricted Stock Awards (“RSAs”) and Restricted Stock Units (“RSUs”) Vesting of RSA and RSU grants is conditional based on continued employment or service for a specified period and, in certain circumstances, the attainment of performance goals. We retain the shares underlying the grant, and any dividends paid thereon, until the vesting conditions have been met. For time-based RSA and RSU grants, compensation cost related to the stock is recognized on a straight-line basis over the vesting period and is calculated using the closing price per share of our common stock on the grant date. For performance-based RSA grants tied to growth in adjusted pre-tax income, compensation cost related to the award is recognized over the performance period and is calculated using the closing price per share of our common stock on the grant date and an estimate of the probable outcome of the performance conditions at each reporting date. Since March 2020, we have granted performance-based RSU grants that vest based on our total shareholder return ranking relative to the total shareholder return of the companies comprising the S&P Mid-Cap 400 Growth Index over a three-year performance period. For performance-based RSU grants tied to total shareholder return, compensation cost related to the award is recognized on a straight-line basis over the performance period and is calculated using the simulated fair value per share of our common stock based on the application of a Monte Carlo simulation model. For the six months ended June 26, 2021, we granted 17,714 performance-based RSUs with a grant date fair value of $131.02 per share. Compensation cost related to RSA and RSU grants was $1.3 million and $1.1 million for the three months ended June 26, 2021 and June 27, 2020, respectively, and $3.1 million and $2.0 million for the six months ended June 26, 2021 and June 27, 2020, respectively, and were included in selling, general and administrative expense in the Condensed Consolidated Statements of Operations. The following table summarizes our RSA and RSU activity for the six months ended June 26, 2021: Shares Weighted Average Fair Value Balance at December 26, 2020 217,735 $ 72.77 Granted 52,001 $ 111.78 Vested (33,676 ) $ 66.38 Canceled (42,227 ) $ 74.56 Balance at June 26, 2021 193,833 $ 83.95 As of June 26, 2021, there was Stock Options We expense the grant-date fair value of stock options as compensation cost on a straight-line basis over the vesting period for which related services are performed. The compensation cost charged against income was $0.3 million for each of the three months ended June 26, 2021 and June 27, 2020, and $0.6 million and $0.5 million for the six months ended June 26, 2021 and June 27, 2020, respectively. These costs are included as selling, general and administrative expense in the Condensed Consolidated Statements of Operations. We use the Black-Scholes option valuation model to estimate the fair value of stock options granted. Expected volatility and expected dividend yield are based on the actual historical experience of our common stock. The expected life represents the period that options granted are expected to be outstanding and was calculated using historical option exercise data. The risk-free rate was based on a U.S. Treasury security with terms equal to the expected time of exercise as of the grant date. The following table summarizes our stock option activity for the six months ended June 26, 2021: Shares Weighted Average Exercise Price Weighted Average Remaining Term (In years) Aggregate Intrinsic Value Balance at December 26, 2020 250,779 $ 70.21 Granted 57,056 $ 101.50 Forfeited (5,540 ) $ 81.71 Exercised (37,534 ) $ 65.48 Balance at June 26, 2021 264,761 $ 77.38 5.5 $ 6,101,198 Options exercisable at June 26, 2021 94,722 $ 73.70 3.7 $ 2,506,557 As of June 26, 2021, there was Employee Stock Purchase Plan Under the Company’s employee stock purchase program, employees purchased 31,462

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 26, 2021
Earnings Per Share [Abstract]
Earnings Per Share	8 . Earnings Per Share Basic earnings per share is calculated by dividing our net income by the weighted average number of common shares outstanding during the period, excluding unvested RSAs and RSUs that are considered to be contingently issuable. To calculate diluted earnings per share, common share equivalents are added to the weighted average number of common shares outstanding. Common share equivalents are calculated using the treasury stock method and are computed based on outstanding stock-based awards. Stock-based awards that were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive were 19,000 shares and 123,000 shares for the three months ended June 26, 2021 and June 27, 2020, respectively, and 14,000 shares and 107,000 shares for the six months ended June 26, 2021 and June 27, 2020, respectively. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended (in thousands, except per share data) June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020 Numerator Net income $ 31,618 $ 13,885 $ 64,348 $ 36,660 Denominator: Weighted average basic shares outstanding 31,942 32,269 31,995 32,312 Effect of stock-based compensation awards 147 69 141 76 Weighted average diluted shares outstanding 32,089 32,338 32,136 32,388 Earnings Per Share: Basic $ 0.99 $ 0.43 $ 2.01 $ 1.13 Diluted $ 0.99 $ 0.43 $ 2.00 $ 1.13

Common Stock Repurchases

Common Stock Repurchases	6 Months Ended
	Jun. 26, 2021
Common Stock Repurchases [Abstract]
Common Stock Repurchases	9 . Common Stock Repurchases We periodically repurchase, at the then-current market price, and cancel common stock issued to the Dorman Products, Inc. 401(k) Retirement Plan and Trust (the “401(k) Plan”). Under the 401(k) Plan, participants can no longer purchase shares of Dorman common stock as an investment option. Shares are generally purchased from the 401(k) Plan when participants sell units as permitted by the 401(k) Plan or elect to leave the 401(k) Plan upon retirement, termination or other reasons. The following table summarizes the repurchase and cancellation of common stock in the 401(k) Plan: For the Three Months Ended For the Six Months Ended June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020 Shares repurchased and canceled 982 1,620 3,142 6,350 Total cost of shares repurchased and canceled (in thousands) $ 106 $ 85 $ 316 $ 400 Average price per share $ 107.63 $ 52.33 $ 100.49 $ 63.00 Our Board of Directors has authorized the repurchase of up to $500 million through December 31, 2022 under a previously announced share repurchase program. Under this program, share repurchases may be made from time to time depending on market conditions, share price, share availability and other factors at our discretion. The share repurchase program does not obligate us to acquire any specific number of shares. At June 26, 2021, $176.2 million was available for repurchase under this share repurchase program. The following table summarizes the repurchase and cancellation of common stock under the share repurchase program: For the Three Months Ended For the Six Months Ended June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020 Shares repurchased and canceled 265,889 — 301,889 91,979 Total cost of shares repurchased and canceled (in thousands) $ 27,171 $ — $ 30,934 $ 5,465 Average price per share $ 102.19 $ — $ 102.47 $ 59.41

Income Taxes

Income Taxes	6 Months Ended
	Jun. 26, 2021
Income Tax Disclosure [Abstract]
Income Taxes	1 0 . Income Taxes At June 26, 2021, we had $1.2 million of net unrecognized tax benefits, all of which would lower our effective tax rate if recognized. We recognize interest and penalties related to uncertain tax positions in income tax expense. As of June 26, 2021, accrued interest and penalties related to uncertain tax positions were not material. We file income tax returns in the United States, Canada, China, India, and Mexico. All years before 2017 are closed for U.S. federal tax purposes. Tax years before 2016 are closed for the states in which we file. Tax years before 2018 are closed for tax purposes in Canada. Tax years before 2017 are closed for tax purposes in China. Tax years before 2015 are closed for tax purposes in Mexico. All tax years remain open for India.

Related-Party Transactions

Related-Party Transactions	6 Months Ended
	Jun. 26, 2021
Related Party Transactions [Abstract]
Related-Party Transactions	11 . Related-Party Transactions We lease our Colmar, PA facility and a portion of our Lewisberry, PA facility from entities in which Steven L. Berman, our Executive Chairman, and certain of his family members are owners. Each lease is a non-cancelable operating lease. Total rental payments to those entities under these lease arrangements will be $2.3 million in fiscal 2021 and were $1.8 million in fiscal 2020. The lease for our corporate headquarters in Colmar, PA was renewed during November 2016, effective as of January 1, 2018, and will expire on December 31, 2022. The lease for our Lewisberry, PA operating facility was signed in September 2020 and will expire on December 31, 2027. In the opinion of our Audit Committee, the terms and rates of these leases were no less favorable than those which could have been obtained from an unaffiliated party when the lease for our corporate headquarters in Colmar, PA was renewed during November 2016 and when the lease for our Lewisberry, PA operating facility was signed in September 2020. We are a partner in a joint venture with one of our suppliers and own minority interests in two other suppliers. Each of these investments is accounted for under the equity method.

Fair Value Disclosures

Fair Value Disclosures	6 Months Ended
	Jun. 26, 2021
Fair Value Disclosures [Abstract]
Fair Value Disclosures	1 2 . Fair Value Disclosures The carrying value of financial instruments such as cash, accounts receivable, accounts payable, and other current assets and liabilities approximate their fair value based on the short-term nature of these instruments.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 26, 2021
Inventory Disclosure [Abstract]
Inventories	Inventories include the cost of material, freight, direct labor and overhead utilized in the processing of our products and are stated at the lower of cost or net realizable value. Inventories were as follows: (in thousands) June 26, 2021 December 26, 2020 Bulk product $ 163,429 $ 136,726 Finished product 188,250 157,484 Packaging materials 5,080 4,509 Total $ 356,759 $ 298,719

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 26, 2021
Revenue From Contract With Customer [Abstract]
Summary of Disaggregated Net Sales	The following tables present our disaggregated net sales by type of major good / product line, and geography. Three Months Ended Six Months Ended (in thousands) June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020 Powertrain $ 128,811 $ 94,598 $ 249,933 $ 202,740 Chassis 98,551 66,025 184,038 139,400 Automotive body 66,970 58,825 135,632 123,457 Hardware 16,303 13,734 29,044 25,315 Net sales $ 310,635 $ 233,182 $ 598,647 $ 490,912 Three Months Ended Six Months Ended (in thousands) June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020 Net sales to U.S. customers $ 295,081 $ 222,563 $ 568,231 $ 463,955 Net sales to non-U.S. customers 15,554 10,619 30,416 26,957 Net sales $ 310,635 $ 233,182 $ 598,647 $ 490,912

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 26, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Restricted Stock and RSU Award Activity	The following table summarizes our RSA and RSU activity for the six months ended June 26, 2021: Shares Weighted Average Fair Value Balance at December 26, 2020 217,735 $ 72.77 Granted 52,001 $ 111.78 Vested (33,676 ) $ 66.38 Canceled (42,227 ) $ 74.56 Balance at June 26, 2021 193,833 $ 83.95
Summary of Stock Option Activity	The following table summarizes our stock option activity for the six months ended June 26, 2021: Shares Weighted Average Exercise Price Weighted Average Remaining Term (In years) Aggregate Intrinsic Value Balance at December 26, 2020 250,779 $ 70.21 Granted 57,056 $ 101.50 Forfeited (5,540 ) $ 81.71 Exercised (37,534 ) $ 65.48 Balance at June 26, 2021 264,761 $ 77.38 5.5 $ 6,101,198 Options exercisable at June 26, 2021 94,722 $ 73.70 3.7 $ 2,506,557

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 26, 2021
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings per Share	The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended (in thousands, except per share data) June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020 Numerator Net income $ 31,618 $ 13,885 $ 64,348 $ 36,660 Denominator: Weighted average basic shares outstanding 31,942 32,269 31,995 32,312 Effect of stock-based compensation awards 147 69 141 76 Weighted average diluted shares outstanding 32,089 32,338 32,136 32,388 Earnings Per Share: Basic $ 0.99 $ 0.43 $ 2.01 $ 1.13 Diluted $ 0.99 $ 0.43 $ 2.00 $ 1.13

Common Stock Repurchases (Table

Common Stock Repurchases (Tables)	6 Months Ended
	Jun. 26, 2021
Common Stock Repurchases [Abstract]
Summary of Shares Repurchase and Cancellation	The following table summarizes the repurchase and cancellation of common stock in the 401(k) Plan: For the Three Months Ended For the Six Months Ended June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020 Shares repurchased and canceled 982 1,620 3,142 6,350 Total cost of shares repurchased and canceled (in thousands) $ 106 $ 85 $ 316 $ 400 Average price per share $ 107.63 $ 52.33 $ 100.49 $ 63.00 For the Three Months Ended For the Six Months Ended June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020 Shares repurchased and canceled 265,889 — 301,889 91,979 Total cost of shares repurchased and canceled (in thousands) $ 27,171 $ — $ 30,934 $ 5,465 Average price per share $ 102.19 $ — $ 102.47 $ 59.41

Business Acquisitions and Inv_2

Business Acquisitions and Investments - Additional Information (Detail) - USD ($)	Jun. 25, 2021	Jan. 02, 2020	Mar. 28, 2020	Jun. 24, 2021
Power Train Industries, Inc. [Member]
Business Acquisition [Line Items]
Fair value of previously held equity interest		$ 12,300,000
Equity method investment, ownership percentage		40.00%
Revolving Credit Facility [Member]
Business Acquisition [Line Items]
Credit facility maximum borrowing capacity				$ 100,000,000
Dayton Parts [Member]
Business Acquisition [Line Items]
Business acquisition, percentage of outstanding stock acquired	100.00%
Total purchase price	$ 338,000,000
Dayton Parts [Member] | Revolving Credit Facility [Member]
Business Acquisition [Line Items]
Credit facility maximum borrowing capacity	$ 600,000,000
Power Train Industries, Inc. [Member]
Business Acquisition [Line Items]
Business acquisition, percentage of outstanding stock acquired		60.00%
Total purchase price		$ 30,700,000
Business acquisition, value of outstanding stock acquired		$ 18,400,000
Business combination, separately recognized transactions, net gains and losses			$ 2,500,000

Sales of Accounts Receivable -

Sales of Accounts Receivable - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2021	Jun. 27, 2020	Jun. 26, 2021	Jun. 27, 2020
Sale Of Accounts Receivable [Line Items]
Sale of accounts receivable			$ 433,700	$ 496,400
Selling, general and administrative expenses	$ 69,517	$ 61,525	$ 132,386	121,260
Maximum credit terms allow to customers			365 days
Accounts Receivable Sales Programs [Member]
Sale Of Accounts Receivable [Line Items]
Selling, general and administrative expenses	$ 2,900	$ 6,800	$ 5,500	$ 9,600

Inventories - Inventories (Deta

Inventories - Inventories (Detail) - USD ($) $ in Thousands	Jun. 26, 2021	Dec. 26, 2020
Inventory Disclosure [Abstract]
Bulk product	$ 163,429	$ 136,726
Finished product	188,250	157,484
Packaging materials	5,080	4,509
Total	$ 356,759	$ 298,719

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 26, 2021	Jun. 26, 2021	Dec. 26, 2020
Commitments And Contingencies Disclosure [Abstract]
Estimated contingent payments	$ 10.4	$ 10.4	$ 8
Increase (reduction) in accrual	$ 2.4	2.4
Maximum contingent payments upon full achievement of targets using foreign currency exchange rates		$ 16

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail)	6 Months Ended
	Jun. 26, 2021
Revenue From Contract With Customer [Abstract]
Maximum credit terms allow to customers	365 days

Revenue Recognition - Summary o

Revenue Recognition - Summary of Disaggregated Net Sales (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2021	Jun. 27, 2020	Jun. 26, 2021	Jun. 27, 2020
Disaggregation Of Revenue [Line Items]
Net sales	$ 310,635	$ 233,182	$ 598,647	$ 490,912
U.S. Customers [Member]
Disaggregation Of Revenue [Line Items]
Net sales	295,081	222,563	568,231	463,955
Non-U.S. Customers [Member]
Disaggregation Of Revenue [Line Items]
Net sales	15,554	10,619	30,416	26,957
Powertrain [Member]
Disaggregation Of Revenue [Line Items]
Net sales	128,811	94,598	249,933	202,740
Chassis [Member]
Disaggregation Of Revenue [Line Items]
Net sales	98,551	66,025	184,038	139,400
Automotive Body [Member]
Disaggregation Of Revenue [Line Items]
Net sales	66,970	58,825	135,632	123,457
Hardware [Member]
Disaggregation Of Revenue [Line Items]
Net sales	$ 16,303	$ 13,734	$ 29,044	$ 25,315

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 26, 2021	Jun. 27, 2020	Jun. 26, 2021	Jun. 27, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted, Shares			52,001
Weighted-average grant-date fair value			$ 111.78
Compensation cost related to stock options	$ 0.3	$ 0.3	$ 0.6	$ 0.5
Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock shares purchased	31,462	10,735	31,462	10,735
Compensation cost	$ 0.7	$ 0.1	$ 0.7	$ 0.2
Performance-Based Restricted Stock Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted, Shares			17,714
Weighted-average grant-date fair value			$ 131.02
RSA and RSU [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation cost related to restricted stock	1.3	$ 1.1	$ 3.1	$ 2
Restricted Stock and Restricted Stock Units Award [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested stock options	9.5		$ 9.5
Unrecognized compensation cost related to nonvested stock options, weighted-average period			2 years 4 months 24 days
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested stock options	$ 3.4		$ 3.4
Unrecognized compensation cost related to nonvested stock options, weighted-average period			3 years

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of RSA and RSU Award Activity (Detail)	6 Months Ended
	Jun. 26, 2021$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Beginning Balance, Shares | shares	217,735
Granted, Shares | shares	52,001
Vested, Shares | shares	(33,676)
Canceled, Shares | shares	(42,227)
Ending Balance, Shares | shares	193,833
Beginning Balance, Weighted Average Price | $ / shares	$ 72.77
Granted, Weighted Average Price | $ / shares	111.78
Vested, Weighted Average Price | $ / shares	66.38
Canceled, Weighted Average Price | $ / shares	74.56
Ending Balance, Weighted Average Price | $ / shares	$ 83.95

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 26, 2021USD ($)$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Beginning Balance, Shares | shares	250,779
Granted, Shares | shares	57,056
Forfeited, Shares | shares	(5,540)
Exercised, Shares | shares	(37,534)
Ending Balance, Shares | shares	264,761
Options Exercisable, Shares | shares	94,722
Beginning Balance, Weighted Average Exercise Price | $ / shares	$ 70.21
Granted, Weighted Average Exercise Price | $ / shares	101.50
Forfeited, Weighted Average Exercise Price | $ / shares	81.71
Exercised, Weighted Average Exercise Price | $ / shares	65.48
Ending Balance, Weighted Average Exercise Price | $ / shares	77.38
Options Exercisable, Weighted Average Exercise Price | $ / shares	$ 73.70
Ending Balance, Weighted Average Remaining Terms (years)	5 years 6 months
Options Exercisable, Weighted Average Remaining Terms (years)	3 years 8 months 12 days
Ending Balance, Aggregate Intrinsic Value | $	$ 6,101,198
Options Exercisable, Aggregate Intrinsic Value | $	$ 2,506,557

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 26, 2021	Jun. 27, 2020	Jun. 26, 2021	Jun. 27, 2020
Earnings Per Share [Abstract]
Stock-based awards considered as anti-dilutive	19,000	123,000	14,000	107,000

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2021	Jun. 27, 2020	Jun. 26, 2021	Jun. 27, 2020
Numerator
Net income	$ 31,618	$ 13,885	$ 64,348	$ 36,660
Denominator:
Weighted average basic shares outstanding	31,942	32,269	31,995	32,312
Effect of stock-based compensation awards	147	69	141	76
Weighted average diluted shares outstanding	32,089	32,338	32,136	32,388
Earnings Per Share:
Basic	$ 0.99	$ 0.43	$ 2.01	$ 1.13
Diluted	$ 0.99	$ 0.43	$ 2	$ 1.13

Common Stock Repurchases - Summ

Common Stock Repurchases - Summary of Shares Repurchase and Cancellation (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2021	Jun. 27, 2020	Jun. 26, 2021	Jun. 27, 2020
Common Stock Repurchases [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares repurchased and canceled	982	1,620	3,142	6,350
Total cost of shares repurchased and canceled (in thousands)	$ 106	$ 85	$ 316	$ 400
Average price per share	$ 107.63	$ 52.33	$ 100.49	$ 63
Share Repurchase Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares repurchased and canceled	265,889		301,889	91,979
Total cost of shares repurchased and canceled (in thousands)	$ 27,171		$ 30,934	$ 5,465
Average price per share	$ 102.19		$ 102.47	$ 59.41

Common Stock Repurchases - Addi

Common Stock Repurchases - Additional Information (Detail) - Share Repurchase Program [Member]	6 Months Ended
	Jun. 26, 2021USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share repurchase program shares authorized to be repurchased	$ 500,000,000
Share repurchase program shares authorized to be repurchased expiration date	Dec. 31, 2022
Shares available for repurchase under share repurchase program amount	$ 176,200,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Millions	Jun. 26, 2021USD ($)
Income Tax Disclosure [Abstract]
Net unrecognized tax benefits	$ 1.2

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 26, 2021Supplier	Dec. 25, 2021USD ($)	Dec. 26, 2020USD ($)
Related Party Transaction [Line Items]
Rental payments based upon the terms of the lease | $			$ 1.8
Lease effective date	Jan. 1, 2018
Joint Venture [Member]
Related Party Transaction [Line Items]
Number of suppliers with company partners Joint Venture | Supplier	1
Minority interests in number of suppliers | Supplier	2
Scenario, Forecast [Member]
Related Party Transaction [Line Items]
Rental payments based upon the terms of the lease | $		$ 2.3
Colmar, PA [Member]
Related Party Transaction [Line Items]
Lease expiration date	Dec. 31, 2022
Lewisberry, PA [Member]
Related Party Transaction [Line Items]
Lease expiration date	Dec. 31, 2027