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]
DSG(DSGR) - 2023 Q4 - Annual Results