Financial Data and Key Metrics Changes - Consolidated sales improved by $14.3 million to $117.9 million, with average daily sales increasing 12% year-over-year and 8.3% over the previous quarter [10] - Consolidated gross margin increased by $5.9 million despite global supply chain issues and inflationary pressures [11] - Reported operating income was $12.1 million, up from $4.8 million a year ago, with adjusted EBITDA at $9.2 million, slightly up from $9.1 million year-over-year [12][23] Business Line Data and Key Metrics Changes - Lawson Partsmaster MRO business grew by 12.1%, while supply sales increased nearly 27%, driven by success in branches and recovery in corporate sales [16] - The Bolt Supply House achieved record sales in March, contributing to overall sales growth [15] - Average daily sales showed a sequential increase from $1.751 million in January to $1.933 million in March [15] Market Data and Key Metrics Changes - The company experienced a 13.8% sales increase year-over-year, with approximately 9% attributed to price increases [15] - Strategic customer relationships and Kent Automotive business showed strong growth, with increases of approximately 25% and 27% respectively [16] Company Strategy and Development Direction - The company completed a strategic combination with TestEquity and Gexpro Services to form a specialty distribution company, with future discussions planned for consolidated results [6][7] - Focus remains on driving sales, protecting margins, and managing costs amid inflationary pressures [13][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in accessing certain products and improving customer backorders, but expressed confidence in navigating these issues [20] - The company expects ongoing challenges related to supply chain and inflation throughout 2022 [20] Other Important Information - Total operating expenses were $48.4 million, down from $49.8 million a year ago, with adjusted operating expenses up due to higher compensation and planned investments [21] - Health insurance costs rose by approximately $1.5 million or 50% year-over-year, impacting adjusted EBITDA margins [22] - Capital expenditures for the quarter were approximately $2.1 million, focusing on distribution center capabilities and technology investments [24] Q&A Session Summary - No questions were taken during this call, but a separate investor call is scheduled for May 5 to discuss the strategic combination and future outlook [6][7][27]
DSG(DSGR) - 2022 Q1 - Earnings Call Transcript