Financial Performance - Full year revenue reached $1.57 billion, a 36.4% increase compared to 2022, or a 23.7% increase on a pro forma basis[48] - Full year adjusted EBITDA increased 27.6% to $157 million, representing 10.0% of sales[36] - Q4 revenue was $405.2 million, up 23.2% due to acquisitions, but organic revenue decreased by 6.4%[44] - Q4 adjusted EBITDA was $33.9 million, flat compared to the previous year, representing 8.4% of sales[49] - Full year operating cash flows were $102 million[37] Segment Performance - Lawson Products' pro forma revenue increased by 9.1% year-to-date, with adjusted EBITDA at $63.7 million, or 13.6% of revenue[52] - Gexpro Services' revenue increased by 5.3% year-to-date, with adjusted EBITDA at $45.2 million, or 11.1% of revenue[59] - TestEquity's revenue increased by 63.6% year-to-date, primarily driven by acquisitions, with adjusted EBITDA at $43.3 million, or 6.7% of revenue[62] Capital Structure - The company deleveraged to 2.9x, ending the year with $100 million in cash and approximately $198 million of availability under the revolving credit facility[38]

Financial Performance - Revenue for 2023 reached $1.57 billion, an increase of 36.4% compared to 2022, with comparable pro forma revenue growth of 23.7%[8] - Operating income for the full year was $43.0 million, up 2.9% from the previous year, while adjusted operating income grew 27.0% to $93.4 million[8] - Non-GAAP adjusted EBITDA increased to $157.0 million, representing 10.0% of revenue, compared to 9.7% in the prior year[8] - Fourth quarter revenue grew by 23.2% to $405.2 million, driven by $97.3 million from acquisitions, despite a 6% decline in organic revenue[12] - Organic revenue growth for 2023 was 2.9%, with a two-year stacked organic revenue growth of nearly 17%[2] - Total revenue for Q4 2023 was $405,239, an increase of 23.2% from $328,850 in Q4 2022[19] - Gross profit for the year ended December 31, 2023, reached $551,875, up 41.1% from $390,898 in 2022[19] - Adjusted EBITDA for the fourth quarter was $33.9 million, slightly down from $34.0 million in the prior year quarter[12] - Adjusted EBITDA for the year 2023 was $157.036 million, a 27.6% increase from $123.028 million in 2022[30] - The adjusted EBITDA margin for 2023 was 10.0%, slightly down from 10.7% in 2022[30] Liquidity and Capital Structure - The company ended 2023 with total liquidity of $298 million, including $99.6 million in cash and $198.3 million available under its credit facility[8] - Total assets grew to $1,550,331 in 2023, a 27.6% increase from $1,215,610 in 2022[17] - Total liabilities increased to $888,730 in 2023, up from $652,615 in 2022, indicating higher debt levels[17] - The company executed a disciplined capital allocation strategy, including the acquisition of Hisco and a $100 million rights offering[3] - The Board of Directors announced a $25.0 million increase to the existing share repurchase program, expanding availability to $29.0 million[12] Earnings and Losses - GAAP diluted loss per share for 2023 was $0.20, compared to earnings per diluted share of $0.21 in the previous year[8] - The company reported a basic loss per share of $0.20 for the year, compared to a profit of $0.22 in 2022[19] - Net loss for the twelve months ended December 31, 2023, was $8,967 compared to a net income of $7,406 in 2022[22] - For the three months ended December 31, 2023, the net loss was $16,330,000, resulting in a diluted EPS of $(0.35), compared to a net loss of $1,883,000 and diluted EPS of $(0.05) for the same period in 2022[33] - The total operating loss for the three months ended December 31, 2023, was $289,000, compared to an operating income of $12,658,000 for the same period in 2022[46] Acquisitions and Expenses - Business acquisitions in 2023 totaled $259,835, significantly higher than $115,343 in 2022[21] - The company incurred interest expenses of $42,774 for the year, compared to $24,301 in 2022, reflecting increased borrowing costs[19] - The company incurred $2.498 million in merger and acquisition-related costs in Q4 2023, down from $4.633 million in Q4 2022[28] - The company incurred $11,400,000 in severance and acquisition-related retention expenses for the three months ended December 31, 2023, compared to $443,000 in the same period of 2022[33] - Stock-based compensation expenses for the year 2023 totaled $7.940 million, compared to a benefit of $4.237 million in 2022[30] - For the twelve months ended December 31, 2023, stock-based compensation was $7,940,000, resulting in a diluted EPS impact of $0.18, compared to $2,448,000 and $0.07 for 2022[39] Future Outlook - The company expects continued growth in 2024, driven by market expansion and new product development initiatives[28]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or o 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) (State or other jurisdiction of (I.R.S ...

FORT WORTH, Texas--(BUSINESS WIRE)--Distribution Solutions Group, Inc. (NASDAQ: DSGR) (“DSG” or the “Company"), a premier, multi-platform distribution company today announced that it will report results for the fiscal year 2023 and fourth quarter on Thursday, March 7, 2024, pre-market. The Company will host a conference call with prepared remarks beginning at 9:00 a.m. Eastern Time. Refer to the Company’s investor relations Events page for the supplemental slides at https://investor.distributionsolutionsgro ...

Distribution Solutions Group (DSGR) shares rallied 5.1% in the last trading session to close at $35.17. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.3% gain over the past four weeks.The positive response from investors can be correlated to the likely future benefits of the company’s strategic acquisition of  Safety Supply Illinois LLC, DBA Emergent Safety Supply (ESS). The acquisition of ESS is likely to ...

FORT WORTH, Texas--(BUSINESS WIRE)--Distribution Solutions Group, Inc. (NASDAQ: DSGR) (“DSG” or the “Company"), a premier, multi-platform specialty distribution company today announced that management is participating in the Gabelli Funds 34th Annual Pump, Valve, & Water Symposium on Thursday, February 22, 2024 at 10 am ET at The Yale Club, 50 Vanderbilt Avenue, New York, NY. For more information, please reference this registration link: https://www.gabelli.com/conferences/pvw. About Distribution Solution ...

• Adjusted EBITDA of $16.7M or 14.6% of Revenue up from 8.8% of Revenue over year ago quarter on revenue growth and improved gross margins NASDAQ: DSGR November 2, 2023 Cautionary Note Regarding Forward-Looking Statements 2 Today's Conference Call Will Discuss Results Primarily on an Adjusted (Non-GAAP) and Comparable Operations Basis. • Q3 2023 Consolidated Highlights & Financial Results • Segment Highlights & Financial Results See appendix for GAAP to Non-GAAP reconciliations. • Q3 Revenue of $439M, Opera ...

Financial Data and Key Metrics Changes - The company reported total sales of $439 million for Q3 2023, an increase of over 26% from the prior year, but organic growth declined by 4% [96][104] - Adjusted EBITDA was $44 million, representing 10% of sales, with an adjusted EBITDA margin of 10.7% excluding Hisco, up from 10% in the prior year's quarter [98][104] - Cash flow from operations was strong, generating $74 million year-to-date, contributing to a leverage ratio below 3% [79][74] Business Line Data and Key Metrics Changes - Lawson Products achieved organic sales growth of 6.3% on a same-day basis, with a significant increase in EBITDA margin from 8.4% to 14.5% over two years [100][113] - Gexpro Services experienced flat sales compared to the prior year, with significant softness in the technology end market, particularly in test and measurement equipment, down 45% year-over-year [116][120] - TestEquity faced pressure with comparable sales down in the mid-teens range, attributed to capital spending deferrals in technology and R&D sectors [123][125] Market Data and Key Metrics Changes - The company noted softness in technology-oriented markets, including semiconductor manufacturing and renewables, which are expected to recover as interest rates stabilize [104][116] - The small customer street business saw a 1.4% decline, contrasting with growth in larger strategic accounts [45][46] Company Strategy and Development Direction - The company is focused on integrating Hisco into its operations to enhance recurring revenue streams and improve overall margin profiles [97][121] - There is a commitment to maintaining pricing discipline and avoiding low-margin sales, particularly in the test and measurement segment [61][70] - The company aims to exit 2024 with an EBITDA margin of 10% or higher, leveraging cost savings and operational efficiencies [127][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a recovery in the test and measurement segment in the first half of 2024, citing improved visibility into order interest [60][64] - The company acknowledged challenges in the current economic environment, particularly for smaller customers, but noted that larger strategic accounts remain healthy [45][46] - Management emphasized the importance of maintaining operational discipline and focusing on profitable growth despite market fluctuations [20][19] Other Important Information - The company is actively exploring acquisition opportunities, with a robust pipeline and a disciplined approach to capital allocation [70][74] - The integration of Hisco is progressing well, with TestEquity's inventory now available on Hisco's e-commerce platform [122][121] Q&A Session Summary Question: Insights on demand softness in technology verticals - Management acknowledged delays in renewables projects due to higher capital costs but expects demand to accelerate in retrofit markets [8][7] Question: Performance of Lawson's sales productivity - Sales productivity at Lawson increased by 18%, attributed to investments in CRM tools and support roles for sales reps [21][27] Question: Expectations for Q4 performance - Management indicated a similar mid-single-digit sales decline for Q4 compared to Q3, with some compression in EBITDA margins expected [56][53] Question: Optimism for recovery in test and measurement segment - Management noted slight improvements from the trough in July and better visibility into customer RFQs, but emphasized caution regarding macroeconomic conditions [60][64]

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 September 30, 2023 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 Comme ...

Distribution Solutions Group, Inc. (NASDAQ:DSGR) Q2 2023 Earnings Conference Call August 3, 2023 9:00 AM ET Company Participants Steven Hooser - Investor Relations Bryan King - Chairman & Chief Executive Officer Ron Knutson - Executive Vice President & Chief Financial Officer Conference Call Participants Kevin Steinke - Barrington Research Ken Newman - KeyBanc Capital Markets Operator Greetings and welcome to the Distribution Solutions Group Second Quarter 2023 Earnings Conference Call. [Operator Instructio ...