Distribution Solutions Group (DSGR) FY Conference June 12, 2025 08:35 AM ET Speaker0 Thanks, Steven. So I'm gonna I'm gonna lead most of the presentation this morning. Brett may jump in on a on a few items as well and provide you really, the purpose this morning, provide you a little bit of overview of the business, and then we'll spend a little bit of time updating you just on on overall financial performance. But quite a bit of the conversation will be surrounded around a lot of the initiatives that we're ...

NASDAQ: DSGR 15th Annual East Coast IDEAS Conference June 12, 2025 Disclaimers Cautionary Note Regarding Forward-Looking Statements This presentation contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the "safe-harbor" provisions under the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. The terms "aim," "anticipate," "believe," "c ...

Group 1 - Distribution Solutions Group (NASDAQ: DSGR) has experienced a significant decline of approximately 30% from around $40 per share at the beginning of the year [1] - Following the release of Q1 earnings, the stock has continued to decrease in value [1]

Distribution Solutions Group (DSGR) Q1 2025 Earnings Call May 01, 2025 09:00 AM ET Company Participants Steven Hooser - Partner, Senior MD & President - IDEAS Conferences​J. Bryan King - Chairman & CEORon Knutson - EVP & CFOTommy Moll - Managing DirectorKevin Steinke - Managing DirectorBrad Hathaway - Managing Partner Conference Call Participants Katie Fleischer - Associate Analyst - Equity Research Operator and welcome to the Distribution Solutions Group First Quarter twenty twenty five Earnings Conference ...

Core Viewpoint - Distribution Solutions Group (DSGR) reported quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.36 per share, but showing an increase from $0.25 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was -13.89%, with the company previously expected to post earnings of $0.33 per share but actually reporting $0.42 per share in the prior quarter, resulting in a positive surprise of 27.27% [2] - Revenues for the quarter ended March 2025 were $478.03 million, missing the Zacks Consensus Estimate by 2.66%, compared to $416.09 million in the same quarter last year [3] - Over the last four quarters, the company has surpassed consensus revenue estimates two times [3] Stock Performance - Distribution Solutions shares have declined approximately 24.3% since the beginning of the year, while the S&P 500 has decreased by 5.3% [4] - The current Zacks Rank for the stock is 4 (Sell), indicating expectations of underperformance in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $509.7 million, and for the current fiscal year, it is $1.64 on revenues of $2.02 billion [8] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [7] Industry Context - The Technology Services industry, to which Distribution Solutions belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Distribution Solutions Group (DSGR) Q1 2025 Earnings Call May 01, 2025 09:00 AM ET Speaker0 and welcome to the Distribution Solutions Group First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode and a question and answer session will follow the formal presentation. Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Stephen Hoosier of Investor Relations. Sir, you may begin. Speaker1 Good morning, a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or (Exact name of registrant as specified in its charter) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 36-2229304 For the transition period from to 301 Commerce Street, Suite 1700, Fort Worth, Texas 76102 Commission file Number: ...

Revenue Growth - First quarter revenue increased by $61.9 million, or 14.9%, to $478.0 million, including $50.8 million from five acquisitions closed in 2024[6] - Revenue for the three months ended March 31, 2025, was $478.03 million, a 14.9% increase from $416.09 million in the same period of 2024[19] - Total revenue for Q1 2025 reached $478,029 thousand, up from $416,086 thousand in Q1 2024, indicating a growth of 14.9%[44] - The Canada Branch Division generated $50.54 million in revenue, a notable increase from $12.50 million in the prior year, indicating successful market expansion[26] Profitability - Adjusted EBITDA for the first quarter rose to $42.8 million, up 18.6%, representing 9.0% of sales compared to 8.7% in the prior year[11] - Adjusted EBITDA for Q1 2025 was $42,786 thousand, compared to $36,067 thousand in Q1 2024, representing an increase of 18.5%[44] - Gross profit increased to $163.98 million, up 14.4% from $143.41 million year-over-year[19] - Operating income was $20.1 million, significantly up from $2.8 million in the prior year, with adjusted operating income at $34.4 million[11] - Operating income rose significantly to $20.10 million compared to $2.78 million in the prior year, reflecting a substantial improvement in operational efficiency[19] - Non-GAAP adjusted operating income for Q1 2025 was $34,392 thousand, compared to $29,761 thousand in Q1 2024, reflecting a year-over-year growth of 8.2%[40] Net Income - Net income per diluted share was $0.07, compared to a net loss per diluted share of $0.11 in the year-ago quarter[11] - Net income for the quarter was $3.26 million, a turnaround from a net loss of $5.22 million in the same quarter of 2024[19] - The company reported a basic income per share of $0.07, compared to a loss of $0.11 per share in the same period last year[19] Liquidity and Assets - Total liquidity at the end of the quarter was $304.8 million, consisting of $80.0 million in cash and $224.7 million available under the credit facility[11] - Total assets increased to $1,762.9 million from $1,727.3 million at the end of the previous quarter[17] - Cash and cash equivalents at the end of the period were $65.44 million, down from $73.10 million at the end of Q1 2024[22] Expenses - The company incurred $19.98 million in depreciation and amortization expenses, up from $17.05 million in the prior year[22] - Interest expense increased to $14.22 million from $11.83 million year-over-year, reflecting higher borrowing costs[19] - The company incurred $14,295 thousand in total selling, general and administrative adjustments for Q1 2025, down from $26,978 thousand in Q4 2024[40] - Acquisition-related costs for Q1 2025 were $108 thousand, a decrease from $1,954 thousand in Q4 2024[40] - Stock-based compensation expenses for Q1 2025 were $974 thousand, down from $2,198 thousand in Q4 2024[40] Strategic Initiatives - The company aims to improve structural margins and achieve higher return goals through strategic scaling and M&A[5] - Capital allocation priorities included opportunistic share repurchases totaling $11.2 million during the quarter[5] Market Performance - Organic average daily sales grew 4.3% year-over-year, with a constant currency increase of 4.7%[3] - The company reported year-over-year net margin expansion in all three verticals, with Lawson's net margin increasing from 11.4% to 11.9%[4]

NASDAQ: DSGR Q1 2025 Financial Results May 1, 2025 Safe Harbor Statement Cautionary Note Regarding Forward-Looking Statements This presentation contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the "safe-harbor" provisions under the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. The terms "aim," "anticipate," "believe," "contemp ...

Financial Data and Key Metrics Changes - The company reported revenue of $1.8 billion for fiscal 2024, an increase of almost 15%, primarily driven by strategic acquisitions [8] - Adjusted free cash flow grew to $175 million, reflecting strong operational performance [8] - The trailing twelve-month total revenues were approximately $1.95 billion, indicating significant growth since the 2021 pre-merger results [10] Business Line Data and Key Metrics Changes - Lawson Products reported Q4 sales of $111.8 million, with organic sales down 10.9% due to lower rep counts and military sales decline [53] - Gexpro Services experienced a revenue increase of 27.4% year-over-year, reaching $118.8 million, driven by organic expansion [58] - Test Equity Group's sales were $191.3 million, with adjusted EBITDA of $14.8 million, reflecting a positive growth trajectory in test and measurement [60] Market Data and Key Metrics Changes - The aerospace and defense, technology, and renewables markets showed sequential growth, contributing to Gexpro Services' performance [34] - Military sales for Lawson were down over 50%, significantly impacting total sales [32] - The company noted improvements in market conditions, particularly in the OEM vertical, which is expected to enhance performance in 2025 [17] Company Strategy and Development Direction - The company is focused on strategic acquisitions to broaden scale and geographic footprint, with five acquisitions completed in 2024 [12] - Investments in sales force and technology are aimed at enhancing customer engagement and long-term profitability [19][24] - The company is prioritizing high-growth opportunities in Southeast Asia and integrating recent acquisitions to drive future growth [14][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent macro headwinds but expressed confidence in the company's positioning for record performance in 2025 as market conditions improve [17] - The company is optimistic about the recovery in end markets and expects to see sales and margins build quickly as conditions normalize [46] - Management highlighted the importance of adapting to new regulatory environments and potential impacts from government spending [72] Other Important Information - The company ended Q4 with approximately $473 million in net working capital and $335 million in liquidity [61] - Debt leverage at the end of Q4 was 3.5 times, with a targeted range of three to four times [62] - The company repurchased $2.6 million of stock during fiscal 2024 as part of its capital allocation strategy [64] Q&A Session Summary Question: Can you provide insights on quarter-to-date sales levels across DSG compared to Q4? - Management indicated that Lawson has started strong in Q1, with sales up compared to the previous year, while consolidated sales are relatively flat [84][86] Question: How have consolidated margins trended in Q1 versus Q4? - Margins are expected to improve as 2025 develops, particularly with the realization of synergies from recent acquisitions [88][89] Question: Was the fourth quarter organic revenue growth of 3.5% a positive surprise? - Management noted that the fourth quarter was firmer than expected, reflecting better performance in several verticals [98][100] Question: What is the outlook for Lawson's margins moving through 2025? - Management expects gradual improvement in margins as investments in the sales force begin to yield results, despite challenges from military sales [106][114]