Distribution Solutions Group (DSGR) came out with quarterly earnings of $0.40 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this industrial products and tools maker would post earnings of $0.29 per share when it actually produced earnings of $0.25, delivering a surprise of -13.79%. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, $1.00 par value DSGR NASDAQ Global Select Market 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 June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ...

Distribution Solutions Group Announces 2024 Second Quarter Results Quarterly Revenue Up 16.3%, Sequential Margin Growth and Strong Cash Flow FORT WORTH, TEXAS, August 1, 2024 - Distribution Solutions Group, Inc. (NASDAQ:DSGR) ("DSG" or the "Company"), a premier specialty distribution company, today announced consolidated results for the second quarter ended June 30, 2024. This press release is supplemented by an earnings presentation at https://investor.distributionsolutionsgroup.com/news/events. The follow ...

JHVEPhoto/iStock Editorial via Getty Images Introduction Distribution Solutions Group's (NASDAQ:DSGR) share price remains relatively unchanged after posting Q1 2024 results. The results came in largely with what I was expecting, and as such, I continue to believe that the core variables - internal organic growth opportunities and accretive capital allocation - remain intact to support long- term sales and EBITDA growth. Thus, at mid-$30/share, I continue to believe that prospective forward returns remain re ...

Financial Data and Key Metrics Changes - In Q1 2024, consolidated revenue was $416 million, representing a 19.5% increase driven by strategic inorganic growth compared to the previous year [43][98] - Adjusted EBITDA margin improved sequentially from 8.4% in Q4 2023 to 8.7% in Q1 2024, although still below expectations due to market softness and internal initiatives [45][100] - Adjusted diluted EPS was $0.25 for the quarter, with a GAAP diluted loss per share of $0.11, reflecting higher depreciation and amortization [102] Business Line Data and Key Metrics Changes - Lawson Products reported sales of $118.2 million, down 4.2% on comparable days, but up 7.6% compared to Q4 2023 [110] - Gexpro Services saw total sales decrease by 2.3% to $98.7 million, but increased by 4.2% on comparable days from Q4 2023, with strong demand in aerospace and defense [112][113] - TestEquity Group's sales grew 74.3% to $187.1 million, primarily due to the acquisition of Hisco, but excluding Hisco, sales were down 14.6% [107] Market Data and Key Metrics Changes - The automotive market remains strong, with S&S Automotive acquisition expected to enhance customer value proposition and expand market share [69][70] - The semiconductor industry showed signs of recovery, with improved sales expected as customer confidence returns [76][77] - Government sector delays in purchase orders have impacted organic revenue growth, but there is confidence in future spending [66] Company Strategy and Development Direction - The company aims to achieve over $3.3 billion in total sales within five years, driven by both organic and inorganic growth initiatives [48] - Recent acquisitions, including Emergent Safety Supply and S&S Automotive, are part of a strategy to enhance product offerings and customer engagement [49][50] - The focus on optimizing sales force productivity and territory management is expected to drive future growth [61][63] Management's Comments on Operating Environment and Future Outlook - Management acknowledged pockets of softness in certain end markets but expressed confidence in the long-term growth trajectory and ongoing initiatives to improve margins [45][56] - The company is optimistic about the integration of acquisitions and the potential for increased sales and profitability in the second half of 2024 [116] - There is a focus on cost rationalization and margin improvement across all business units, particularly in the TestEquity Group [85][88] Other Important Information - The company ended the quarter with approximately $284 million in liquidity, including $85.6 million in cash [117] - The cash conversion ratio was nearly 110% on a trailing 12-month basis, indicating strong cash flow management [118] - The company is actively recruiting additional sales representatives to drive growth in key territories [26][28] Q&A Session Summary Question: Context on S&S acquisition and integration - Management highlighted the importance of the S&S acquisition for enhancing the Kent Automotive division and improving EBITDA margins [9][11] Question: Outlook on margins for Q2 - Management confirmed expectations for sequential margin improvement across all segments in Q2 2024 [17][19] Question: Trend in Lawson sales representative headcount - Management acknowledged a slight decrease in headcount but emphasized ongoing recruitment efforts and strategic territory management [26][27]

This presentation contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. Terms such as "aim," "anticipate," "believe," "contemplates," "continues," "could," "ensure," "estimate," "expect," "forecasts," "if," "intend," "likely," "may," "might," "objective," "outlook," "plan," "positioned," "potential," "predict," "probable," "project," " ...

Distribution Solutions Group (DSGR) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -13.79%. A quarter ago, it was expected that this industrial products and tools maker would post earnings of $0.14 per share when it actually produced earnings of $0.22, delivering a surprise of 57.14% ...

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, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file Number: 0-10546 DISTRIBUTION SOLUTIONS GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 36-2229304 301 Commerce ...

Revenue Performance - First quarter revenue increased by 19.5% to $416.1 million compared to $348.3 million in the same quarter last year, with a sequential increase of 2.7% from $405.2 million in Q4 2023[6] - Revenue for Q1 2024 was $416.1 million, a 19.5% increase from $348.3 million in Q1 2023[23] - Total revenue from the TestEquity segment increased significantly to $187.1 million in Q1 2024 from $107.4 million in Q1 2023, marking a 74.2% increase[23] Profitability Metrics - Adjusted EBITDA for the first quarter was $36.1 million, representing 8.7% of revenue, down from $39.4 million and 11.3% in the prior year quarter, but up from $33.9 million and 8.4% sequentially[9] - Non-GAAP adjusted EBITDA for Q1 2024 was $36.1 million, compared to $39.4 million in Q1 2023, a decrease of 5.9%[27] - Operating income as a percentage of revenue was 0.7%, down from 4.8% in the prior year quarter[6] - The company reported an operating income of $2.8 million, a significant decrease of 83.4% from $16.7 million in the prior year quarter, primarily due to non-recurring costs[6] - Operating income for Q1 2024 was $2,783,000, a decrease from $16,721,000 in Q4 2023[37] - Non-GAAP adjusted operating income for Q1 2024 was $29,761,000, compared to $32,783,000 in Q1 2023[37] Net Income and Loss - Net loss for Q1 2024 was $5.2 million, compared to a net income of $5.9 million in Q1 2023[21] - Diluted loss per share for the quarter was $0.11, compared to diluted income per share of $0.14 in the year-ago quarter, with non-GAAP adjusted diluted earnings per share at $0.25[9] - The company reported a basic loss per share of $0.11 in Q1 2024, down from a profit of $0.14 per share in Q1 2023[21] Cash and Liquidity - Total liquidity at the end of the first quarter was $283.9 million, consisting of $85.6 million in cash and $198.3 million available under its credit facility[9] - Total cash, cash equivalents, and restricted cash at the end of Q1 2024 was $85.6 million, up from $31.3 million at the end of Q1 2023[21] - Cash used in investing activities was $16.0 million in Q1 2024, compared to $5.1 million in Q1 2023[21] - The company acquired businesses net of cash acquired for $13.1 million in Q1 2024[21] Acquisitions and Growth Strategy - The company completed the acquisition of Emergent Safety Supply in January 2024 and announced the acquisition of S&S Automotive, which has annual revenues of approximately $40 million, to enhance its product offerings[3] - Two-year stacked organic revenue grew by 4.7%, despite a current quarter organic revenue decline of 8.6% on comparable days, with growth driven by acquisitions[9] - The company is actively pursuing a pipeline of acquisition targets and margin enhancement initiatives to maximize long-term shareholder value[4] Expenses and Adjustments - Total selling, general and administrative expenses adjustments increased to $26,978,000 in Q1 2024 from $16,062,000 in Q1 2023[37] - Amortization of intangible assets was $10,746,000 in Q1 2024, up from $9,152,000 in Q1 2023[37] - Acquisition related costs were $1,954,000 in Q1 2024, down from $4,099,000 in Q4 2023[37] - Stock-based compensation remained relatively stable at $2,198,000 in Q1 2024 compared to $2,204,000 in Q1 2023[37] - Severance and acquisition related retention expenses were $10,716,000 in Q1 2024, significantly higher than $351,000 in Q1 2023[37] - Other non-recurring expenses increased to $1,364,000 in Q1 2024 from $256,000 in Q1 2023[37] - Total adjustments for Q1 2024 were $26,978,000, compared to $16,062,000 in Q1 2023[37] - The company reported a gross profit adjustment of $716,000 in Q4 2023, which was not present in Q1 2024[37] Future Outlook - The company expects sequential margin improvements as 2024 progresses, supported by its asset-light business model and focus on cash flow growth[4]

Distribution Solutions Group, Inc. (DSGR) will report first-quarter 2024 results on May 2, before the bell.The company’s earnings surprise history has been decent. Earnings beat the Zacks Consensus Estimate in two of the four trailing quarters and missed twice, the average surprise being 13.3%.Q1 ExpectationsThe Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $430.6 million, indicating year-over-year growth of 23.6%. We expect recent acquisitions to have made significant con ...