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]
DSG(DSGR) - 2025 Q1 - Quarterly Results