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]
DSG(DSGR) - 2024 Q1 - Quarterly Results