Distribution Solutions Group Announces 2023 Full Year and Fourth Quarter Results
- Revenue grew by 36% to $1.6 billion in 2023
- Operating cash of $102 million was generated
- Adjusted EBITDA increased by 28% to $157 million
- Organic revenue grew by 2.9% in 2023
- Total liquidity at the end of 2023 was $298 million
- The company announced an increase in the share repurchase program by $25 million
- None.
Insights
The reported revenue growth of 36.4% for Distribution Solutions Group, Inc. (DSG) to $1.6 billion in 2023 signifies a robust expansion, outpacing the growth rates typically seen in the specialty distribution sector. This performance is particularly impressive given the broader economic challenges and indicates strong market demand for DSG's offerings. The organic growth component of 3%, while modest, is a positive indicator of underlying business health. The adjusted EBITDA increase of nearly 28% to $157 million, representing a margin of 10.0%, reflects efficient operational management and successful integration of acquisitions.
DSG's strategic acquisitions, such as Hisco and the subsequent rights offering, demonstrate an aggressive growth strategy that has resulted in increased revenue but also exerted pressure on adjusted EBITDA margins, as seen by the 50 basis points decline. The share repurchase plan and disciplined capital allocation strategy indicate confidence by the management in the company's financial stability and commitment to shareholder value. However, the GAAP diluted loss per share of $0.20 compared to earnings per diluted share of $0.21 in the previous year suggests that the growth and acquisitions have not yet translated into net profitability on a per-share basis, which may be a point of concern for investors focusing on immediate earnings performance.
DSG's performance in a 'choppy sales environment' and its ability to generate significant cash flow from operations, which exceeded $102 million, highlight the company's resilience and operational efficiency. The mention of an 'asset-light model' suggests that DSG is likely leveraging partnerships or outsourcing to maintain flexibility and minimize capital expenditure, a strategy that can be advantageous in rapidly changing market conditions.
The reported contraction of organic revenue by 6% in the fourth quarter, primarily due to softness in the technology and renewable sectors, suggests sector-specific challenges that may warrant investor attention. However, the two-year stacked organic revenue growth of 10% indicates that the company is still on a positive trajectory when considering a longer-term perspective. The focus on managing working capital and the strategic allocation of capital towards high ROI initiatives are key factors that could drive future growth and stability for DSG.
The performance of DSG must be contextualized within the broader macroeconomic environment, characterized by high-interest rates and their impact on capital spending. The company's ability to grow in such an environment is commendable and indicates a strong market position. However, the sensitivity of some of DSG's end markets to macroeconomic factors, such as interest rates and technology spend, poses risks to future performance. The company's proactive measures, including the acquisition of Hisco and the rights offering, suggest a strategic approach to mitigating these risks, though the full impact of these actions on long-term growth remains to be seen.
The mention of 'delayed capital spending in the current interest-rate sensitive environment' highlights the cyclical nature of some of DSG's business segments. Investors would benefit from monitoring economic indicators and sector-specific trends that could affect the company's performance. The focus on creating 'long-term enterprise value' suggests a strategic orientation towards sustainable growth rather than short-term earnings, which aligns with the interests of long-term investors.
2023 Revenue Grew to
“2023 reflects an acceleration of growth through a disciplined execution of our strategic initiatives with accretive acquisitions, organic growth and the successful roll-out of key operational initiatives. We took deliberate actions in 2023 to improve the return profile of the Company and create long-term enterprise value through a disciplined capital allocation strategy. This strategy included the acquisition of Hisco and the related
“Fourth quarter revenue grew by
The following represents a summary of certain operating results (unaudited). See the reconciliations of GAAP to non-GAAP measures in Tables 2, 3 and 6.
|
Twelve Months Ended |
|
|
|
Three Months Ended |
|
|
||||||||||||||
|
December 31, |
|
|
|
December 31, |
|
|
||||||||||||||
(Dollars in thousands) |
2023 |
|
2022(2) |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
Revenue |
$ |
1,570,402 |
|
|
$ |
1,151,422 |
|
|
36.4 |
% |
|
$ |
405,239 |
|
|
$ |
328,850 |
|
|
23.2 |
% |
Pro forma revenue(1) |
$ |
1,570,402 |
|
|
$ |
1,269,299 |
|
|
23.7 |
% |
|
$ |
405,239 |
|
|
$ |
328,850 |
|
|
23.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss) |
$ |
42,991 |
|
|
$ |
41,786 |
|
|
2.9 |
% |
|
$ |
(289 |
) |
|
$ |
12,658 |
|
|
N/M |
|
Non-GAAP adjusted operating income(1) |
$ |
93,448 |
|
|
$ |
73,577 |
|
|
27.0 |
% |
|
$ |
17,608 |
|
|
$ |
20,131 |
|
|
(12.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-GAAP adjusted EBITDA(1) |
$ |
157,036 |
|
|
$ |
123,028 |
|
|
27.6 |
% |
|
$ |
33,880 |
|
|
$ |
34,003 |
|
|
(0.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss) as a percent of revenue |
|
2.7 |
% |
|
|
3.6 |
% |
|
|
|
|
(0.1 |
)% |
|
|
3.8 |
% |
|
|
||
Adjusted EBITDA as a percent of pro forma revenue |
|
10.0 |
% |
|
|
9.7 |
% |
|
|
|
|
8.4 |
% |
|
|
10.3 |
% |
|
|
||
(1) Full year 2022 results includes Lawson Products pre-merger results, other pro forma adjustments and certain non-operational or non-cash items |
|||||||||||||||||||||
(2) As a result of the April 1, 2022 strategic combination of Lawson Products, Gexpro Services and TestEquity, the Company's financial results are reported under reverse merger accounting treatment as required by generally accepted accounting principles ("GAAP"). Accordingly, Lawson Products results are included only for the periods following the April 1, 2022 merger closing date. GAAP results for the three and twelve months ended December 31, 2022 include the combined results of Gexpro Services and TestEquity, and the results of Lawson Products only subsequent to April 1, 2022. |
|||||||||||||||||||||
2023 Full Year Summary(1)
-
Revenue was
$1.57 billion $419.0 million 36.4% compared to 2022. On a comparable basis (including 12 months of Lawson in 2022), pro forma revenue grew23.7% . Organic revenue grew2.9% for 2023 versus 2022 and the remaining increase driven by acquisitions. -
Operating income increased
$1.2 million $43.0 million $50.5 million 27.0% to$93.4 million $73.6 million -
Non-GAAP adjusted EBITDA grew to
$157.0 million 10.0% of revenue, compared to$123.0 million 9.7% of comparable pro forma revenue in the prior year. As expected, Hisco's operations pressured the 2023 adjusted EBITDA margins by approximately 50bps. -
GAAP Diluted loss per share was
$0.20 $0.21 $1.42 $1.47 -
The Company ended 2023 with total liquidity of
$298 million $99.6 million $198.3 million $18.7 million $3.6 million $26.09
(1) See reconciliation of GAAP to non-GAAP measures in tables 3, 5 and 6.
Share and per share data for all periods presented reflect two-for-one stock split.
2023 Fourth Quarter Summary(2)
-
Revenue increased
$76.4 million 23.2% , to$405.2 million $97.3 million 10% despite organic revenue softness in the 2023 fourth quarter being down6.4% . The revenue headwinds were isolated to the technology end-market and project-related verticals that are both more sensitive to high interest rates connected to capital spending. -
Operating loss was
$0.3 million $10.4 million $17.9 million $12.7 million $17.6 million $20.1 million -
GAAP Diluted loss per share was
$0.35 $0.05 $0.22 $0.32 -
Adjusted EBITDA was
$33.9 million $34.0 million -
The Board of Directors announced an increase of
$25.0 million $29.0 million
(2) See reconciliation of GAAP to non-GAAP measures in tables 2, 4 and 6.
Share and per share data for all periods presented reflect two-for-one stock split.
Conference Call
Distribution Solutions Group, Inc. will conduct a conference call with investors to discuss 2023 fiscal year and fourth quarter results at 9:00 a.m. Eastern Time on March 7, 2024. The conference call is available by direct dial at 1-888-506-0062 in the
About Distribution Solutions Group, Inc.
Distribution Solutions Group (“DSG”) is a premier multi-platform specialty distribution company providing high touch, value-added distribution solutions to the maintenance, repair & operations (MRO), the original equipment manufacturer (OEM) and the industrial technologies markets. DSG was formed through the strategic combination of Lawson Products, a leader in MRO distribution of C-parts, Gexpro Services, a leading global supply chain services provider to manufacturing customers, and TestEquity, a leader in electronic test & measurement solutions.
Through its collective businesses, DSG is dedicated to helping customers lower their total cost of operation by increasing productivity and efficiency with the right products, expert technical support and fast, reliable delivery to be a one-stop solution provider. DSG serves approximately 180,000 customers in several diverse end markets supported by approximately 3,700 dedicated employees and strong vendor partnerships. DSG ships from strategically located distribution and service centers to customers in
For more information on Distribution Solutions Group please visit www.distributionsolutionsgroup.com.
This release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. Terms such as “aim,” “anticipate,” “believe,” “contemplates,” “continues,” “could,” “ensure,” “estimate,” “expect,” “forecasts,” “if,” “intend,” “likely,” “may,” “might,” “objective,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “probable,” “project,” “shall,” “should,” “strategy,” “will,” “would,” and variations of them and other words and terms of similar meaning and expression (and the negatives of such words and terms) are intended to identify forward-looking statements. Forward-looking statements can also be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations and involve inherent risks, uncertainties and assumptions, including factors that could delay, divert or change any of them, and could cause actual outcomes to differ materially from current expectations. DSG can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and DSG cautions readers not to place undue reliance on such statements, which speak only as of the date made. DSG undertakes no obligation to release publicly any revisions to forward-looking statements as a result of new information, future events or otherwise. Actual results may differ materially from those projected as a result of certain risks and uncertainties. Certain risks associated with DSG’s business are also discussed from time to time in the reports DSG files with the SEC, including DSG’s Annual Report on Form 10-K, DSG’s Quarterly Reports on Form 10-Q and DSG’s Current Reports on Form 8-K, which should be reviewed carefully. In addition, the following factors, among others, could cause actual outcomes and results to differ materially from those discussed in the forward-looking statements: (i) unanticipated difficulties, expenditures or any problems arising after combining the businesses of Lawson Products, TestEquity and Gexpro Services (the "merger"), which may result in DSG not operating as effectively and efficiently as expected; (ii) the risk that stockholder litigation in connection with the merger or any other acquisition or business combination completed by DSG or any of its subsidiaries results in significant costs of defense, indemnification and liability; and (iii) the risks that DSG may encounter difficulties integrating the business of DSG with the business of other companies that DSG has acquired or has otherwise combined with, that DSG may not achieve the anticipated synergies contemplated with respect to any such business or transactions and that certain assumptions with respect to such business or transactions could prove to be inaccurate.
-TABLES FOLLOW-
Distribution Solutions Group, Inc. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(Dollars in thousands, except share data) |
|||||||
(Unaudited) |
|||||||
|
December 31,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
83,931 |
|
|
$ |
24,554 |
|
Restricted cash |
|
15,695 |
|
|
|
186 |
|
Accounts receivable, less allowances |
|
213,448 |
|
|
|
166,301 |
|
Inventories |
|
315,984 |
|
|
|
264,374 |
|
Prepaid expenses and other current assets |
|
28,272 |
|
|
|
22,773 |
|
Total current assets |
|
657,330 |
|
|
|
478,188 |
|
Property, plant and equipment, net |
|
113,811 |
|
|
|
64,395 |
|
Rental equipment, net |
|
24,575 |
|
|
|
27,139 |
|
Goodwill |
|
399,925 |
|
|
|
348,048 |
|
Deferred tax asset, net |
|
95 |
|
|
|
189 |
|
Intangible assets, net |
|
253,834 |
|
|
|
227,994 |
|
Cash value of life insurance |
|
18,493 |
|
|
|
17,166 |
|
Right of use operating lease assets |
|
76,340 |
|
|
|
46,755 |
|
Other assets |
|
5,928 |
|
|
|
5,736 |
|
Total assets |
$ |
1,550,331 |
|
|
$ |
1,215,610 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
98,674 |
|
|
$ |
80,486 |
|
Current portion of long-term debt |
|
32,551 |
|
|
|
16,352 |
|
Current portion of lease liabilities |
|
13,549 |
|
|
|
9,964 |
|
Accrued expenses and other current liabilities |
|
97,241 |
|
|
|
62,677 |
|
Total current liabilities |
|
242,015 |
|
|
|
169,479 |
|
Long-term debt, less current portion, net |
|
535,881 |
|
|
|
395,825 |
|
Lease liabilities |
|
67,065 |
|
|
|
39,828 |
|
Deferred tax liability, net |
|
18,326 |
|
|
|
23,834 |
|
Other liabilities |
|
25,443 |
|
|
|
23,649 |
|
Total liabilities |
|
888,730 |
|
|
|
652,615 |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
|
|
||||
Authorized - 500,000 shares, issued and outstanding — None |
|
— |
|
|
|
— |
|
Common stock, |
|
|
|
||||
Authorized - 70,000,000 shares Issued - 47,535,618 and 39,460,724 shares, respectively Outstanding - 46,758,359 and 38,833,568 shares, respectively |
|
46,758 |
|
|
|
38,834 |
|
Capital in excess of par value |
|
671,154 |
|
|
|
572,379 |
|
Retained deficit |
|
(34,707 |
) |
|
|
(25,736 |
) |
Treasury stock – 777,259 and 627,156 shares, respectively |
|
(16,434 |
) |
|
|
(12,526 |
) |
Accumulated other comprehensive income (loss) |
|
(5,170 |
) |
|
|
(9,956 |
) |
Total stockholders’ equity |
|
661,601 |
|
|
|
562,995 |
|
Total liabilities and stockholders’ equity |
$ |
1,550,331 |
|
|
$ |
1,215,610 |
|
Distribution Solutions Group, Inc. |
|||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||
(Dollars in thousands, except per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
405,239 |
|
|
$ |
328,850 |
|
|
$ |
1,570,402 |
|
|
$ |
1,151,422 |
|
Cost of goods sold |
|
267,555 |
|
|
|
212,558 |
|
|
|
1,018,527 |
|
|
|
760,524 |
|
Gross profit |
|
137,684 |
|
|
|
116,292 |
|
|
|
551,875 |
|
|
|
390,898 |
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses |
|
137,973 |
|
|
|
103,634 |
|
|
|
508,884 |
|
|
|
349,112 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
(289 |
) |
|
|
12,658 |
|
|
|
42,991 |
|
|
|
41,786 |
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(12,717 |
) |
|
|
(7,597 |
) |
|
|
(42,774 |
) |
|
|
(24,301 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,395 |
) |
Change in fair value of earnout liabilities |
|
112 |
|
|
|
(4,431 |
) |
|
|
758 |
|
|
|
(483 |
) |
Other income (expense), net |
|
(113 |
) |
|
|
(894 |
) |
|
|
(2,982 |
) |
|
|
(670 |
) |
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes |
|
(13,007 |
) |
|
|
(264 |
) |
|
|
(2,007 |
) |
|
|
12,937 |
|
Income tax expense (benefit) |
|
3,323 |
|
|
|
1,619 |
|
|
|
6,960 |
|
|
|
5,531 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(16,330 |
) |
|
$ |
(1,883 |
) |
|
$ |
(8,967 |
) |
|
$ |
7,406 |
|
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per share of common stock |
$ |
(0.35 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.20 |
) |
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted income (loss) per share of common stock |
$ |
(0.35 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.20 |
) |
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average shares outstanding |
|
46,804,556 |
|
|
|
38,816,834 |
|
|
|
44,868,862 |
|
|
|
34,291,870 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average shares outstanding |
|
46,804,556 |
|
|
|
38,816,834 |
|
|
|
44,868,862 |
|
|
|
35,086,592 |
|
Distribution Solutions Group, Inc. |
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(Dollars in thousands) |
|||||||
(Unaudited) |
|||||||
|
Twelve Months Ended December 31, |
||||||
|
2023 |
|
2022 |
||||
Operating activities |
|
|
|
||||
Net income (loss) |
$ |
(8,967 |
) |
|
$ |
7,406 |
|
Adjustments to reconcile to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
63,588 |
|
|
|
45,186 |
|
Amortization of debt issuance costs |
|
2,420 |
|
|
|
1,888 |
|
Extinguishment of debt |
|
— |
|
|
|
3,395 |
|
Stock-based compensation |
|
7,940 |
|
|
|
2,448 |
|
Compensation expense related to employee share purchases |
|
427 |
|
|
|
— |
|
Deferred income taxes |
|
(8,028 |
) |
|
|
(2,406 |
) |
Change in fair value of earnout liabilities |
|
(758 |
) |
|
|
483 |
|
Gain on sale of rental equipment |
|
(2,675 |
) |
|
|
(3,632 |
) |
Loss on sale of property, plant and equipment |
|
294 |
|
|
|
— |
|
Charge for step-up of acquired inventory |
|
3,582 |
|
|
|
2,866 |
|
Net realizable value adjustment and write-offs for obsolete and excess inventory |
|
8,990 |
|
|
|
4,608 |
|
Bad debt expense |
|
784 |
|
|
|
795 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
||||
Accounts receivable |
|
18,020 |
|
|
|
(21,771 |
) |
Inventories |
|
(1,236 |
) |
|
|
(42,404 |
) |
Prepaid expenses and other current assets |
|
931 |
|
|
|
(1,874 |
) |
Accounts payable |
|
3,048 |
|
|
|
(8,839 |
) |
Accrued expenses and other current liabilities |
|
13,667 |
|
|
|
4,492 |
|
Other changes in operating assets and liabilities |
|
259 |
|
|
|
(3,670 |
) |
Net cash provided by (used in) operating activities |
|
102,286 |
|
|
|
(11,029 |
) |
Investing activities |
|
|
|
||||
Purchases of property, plant and equipment |
|
(15,337 |
) |
|
|
(8,307 |
) |
Business acquisitions, net of cash acquired |
|
(259,835 |
) |
|
|
(115,343 |
) |
Purchases of rental equipment |
|
(9,341 |
) |
|
|
(11,794 |
) |
Proceeds from sale of rental equipment |
|
5,990 |
|
|
|
8,756 |
|
Net cash provided by (used in) investing activities |
|
(278,523 |
) |
|
|
(126,688 |
) |
Financing activities |
|
|
|
||||
Proceeds from revolving lines of credit |
|
180,982 |
|
|
|
383,489 |
|
Payments on revolving lines of credit |
|
(302,083 |
) |
|
|
(320,751 |
) |
Proceeds from term loans |
|
305,000 |
|
|
|
445,630 |
|
Payments on term loans |
|
(26,375 |
) |
|
|
(335,305 |
) |
Deferred financing costs |
|
(3,419 |
) |
|
|
(11,956 |
) |
Proceeds from rights offering, net of offering costs of |
|
98,469 |
|
|
|
— |
|
Repurchase of common stock |
|
(3,619 |
) |
|
|
(1,940 |
) |
Shares repurchased held in treasury |
|
(287 |
) |
|
|
(520 |
) |
Proceeds from employees for share purchases |
|
3,253 |
|
|
|
— |
|
Payment of financing lease principal |
|
(515 |
) |
|
|
(429 |
) |
Payment of earnout |
|
(1,000 |
) |
|
|
— |
|
Payment on seller's note |
|
— |
|
|
|
(9,757 |
) |
Net cash provided by (used in) financing activities |
|
250,406 |
|
|
|
148,461 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
717 |
|
|
|
(675 |
) |
Increase (decrease) in cash, cash equivalents and restricted cash |
|
74,886 |
|
|
|
10,069 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
24,740 |
|
|
|
14,671 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
99,626 |
|
|
$ |
24,740 |
|
Cash and cash equivalents |
$ |
83,931 |
|
|
$ |
24,554 |
|
Restricted cash |
|
15,695 |
|
|
|
186 |
|
Total cash, cash equivalents and restricted cash |
$ |
99,626 |
|
|
$ |
24,740 |
|
Distribution Solutions Group, Inc. |
||||||
Table 1 - Selected Segment Financial Data |
||||||
(Dollars in thousands) |
||||||
(Unaudited) |
||||||
|
|
|
|
|||
|
Three Months Ended |
|||||
|
December 31, |
|||||
|
2023 |
|
2022 |
|||
Revenue: |
|
|
|
|||
Lawson Products |
$ |
109,807 |
|
|
$ |
108,029 |
Gexpro Services |
|
93,211 |
|
|
|
100,103 |
TestEquity |
|
190,685 |
|
|
|
105,374 |
Other |
|
13,236 |
|
|
|
15,344 |
Intersegment revenue elimination |
|
(1,700 |
) |
|
|
— |
Total |
$ |
405,239 |
|
|
$ |
328,850 |
|
|
|
|
|||
Operating income (loss): |
|
|
|
|||
Lawson Products |
$ |
5,140 |
|
|
$ |
3,746 |
Gexpro Services |
|
3,516 |
|
|
|
4,317 |
TestEquity |
|
(8,282 |
) |
|
|
3,932 |
Other |
|
(663 |
) |
|
|
663 |
Total |
$ |
(289 |
) |
|
$ |
12,658 |
DISTRIBUTION SOLUTIONS GROUP, INC. |
SEC REGULATION G GAAP RECONCILIATIONS |
The Company reports its financial results in accordance with
Distribution Solutions Group, Inc. |
||||||||||||||||||||||||||||||||||||||||
Table 2 - Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Adjusted EBITDA |
||||||||||||||||||||||||||||||||||||||||
Q4 2023 and Q4 2022 |
||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
Lawson Products |
|
Gexpro Services |
|
TestEquity |
|
All Other |
|
Eliminations |
|
Consolidated DSG |
|||||||||||||||||||||||||||||
Quarter Ended |
Q4 2023 |
Q4 2022 |
|
Q4 2023 |
Q4 2022 |
|
Q4 2023 |
Q4 2022 |
|
Q4 2023 |
Q4 2022 |
|
Q4 2023 |
Q4 2022 |
|
Q4 2023 |
Q4 2022 |
|||||||||||||||||||||||
Revenue from external customers |
$ |
109,475 |
|
$ |
108,029 |
|
|
$ |
91,968 |
|
$ |
100,103 |
|
|
$ |
190,560 |
|
$ |
105,374 |
|
|
$ |
13,236 |
|
$ |
15,344 |
|
|
$ |
— |
|
$ |
— |
|
$ |
405,239 |
|
$ |
328,850 |
|
Intersegment revenue |
|
332 |
|
|
— |
|
|
|
1,243 |
|
|
— |
|
|
|
125 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(1,700 |
) |
|
— |
|
|
— |
|
|
— |
|
Revenue |
$ |
109,807 |
|
$ |
108,029 |
|
|
$ |
93,211 |
|
$ |
100,103 |
|
|
$ |
190,685 |
|
$ |
105,374 |
|
|
$ |
13,236 |
|
$ |
15,344 |
|
|
$ |
(1,700 |
) |
$ |
— |
|
$ |
405,239 |
|
$ |
328,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Operating income (loss) |
$ |
5,140 |
|
$ |
3,746 |
|
|
$ |
3,516 |
|
$ |
4,317 |
|
|
$ |
(8,282 |
) |
$ |
3,932 |
|
|
$ |
(663 |
) |
$ |
663 |
|
|
|
|
|
$ |
(289 |
) |
$ |
12,658 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Depreciation and amortization |
|
4,407 |
|
|
4,063 |
|
|
|
4,026 |
|
|
4,196 |
|
|
|
7,315 |
|
|
5,055 |
|
|
|
524 |
|
|
558 |
|
|
|
|
|
|
16,272 |
|
|
13,872 |
|
|||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Merger and acquisition related costs(1) |
|
360 |
|
|
1,324 |
|
|
|
268 |
|
|
1,823 |
|
|
|
931 |
|
|
1,486 |
|
|
|
939 |
|
|
— |
|
|
|
|
|
|
2,498 |
|
|
4,633 |
|
|||
Stock-based compensation(2) |
|
2,499 |
|
|
2,003 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
|
|
|
2,499 |
|
|
2,003 |
|
|||
Severance and acquisition related retention expenses(3) |
|
46 |
|
|
217 |
|
|
|
199 |
|
|
221 |
|
|
|
11,153 |
|
|
3 |
|
|
|
2 |
|
|
2 |
|
|
|
|
|
|
11,400 |
|
|
443 |
|
|||
Inventory step-up(4) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
716 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
|
|
|
716 |
|
|
— |
|
|||
Other non-recurring(5) |
|
(30 |
) |
|
156 |
|
|
|
814 |
|
|
238 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
|
|
|
784 |
|
|
394 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Non-GAAP adjusted EBITDA |
$ |
12,422 |
|
$ |
11,509 |
|
|
$ |
8,823 |
|
$ |
10,795 |
|
|
$ |
11,833 |
|
$ |
10,476 |
|
|
$ |
802 |
|
$ |
1,223 |
|
|
|
|
|
$ |
33,880 |
|
$ |
34,003 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Operating income (loss) as a percent of revenue |
|
4.7 |
% |
|
3.5 |
% |
|
|
3.8 |
% |
|
4.3 |
% |
|
|
(4.3 |
)% |
|
3.7 |
% |
|
|
(5.0 |
)% |
|
4.3 |
% |
|
|
|
|
|
(0.1 |
)% |
|
3.8 |
% |
|||
Adjusted EBITDA as a percent of revenue |
|
11.3 |
% |
|
10.7 |
% |
|
|
9.5 |
% |
|
10.8 |
% |
|
|
6.2 |
% |
|
9.9 |
% |
|
|
6.1 |
% |
|
8.0 |
% |
|
|
|
|
|
8.4 |
% |
|
10.3 |
% |
|||
(1) |
Transaction and integration costs related to the mergers and other acquisitions |
(2) |
Expense (benefit) primarily for stock-based compensation, of which a portion varies with the Company’s stock price |
(3) |
Includes severance expense for actions taken in 2023 and 2022 not related to a formal restructuring plan and acquisition related retention expenses for the Hisco acquisition |
(4) |
Inventory fair value step-up adjustment for Lawson resulting from the reverse merger acquisition accounting and acquisition accounting for additional acquisitions completed by Gexpro Services or TestEquity |
(5) |
Other non-recurring costs consist of non-capitalized deferred financing costs incurred in conjunction with the 2023 credit agreement amendment, certain non-recurring strategic projects and other non-recurring items |
Distribution Solutions Group, Inc. |
||||||||||||||||||||||||||||||||||||||||
Table 3 - Reconciliation of GAAP Revenue to Pro Forma Revenue and GAAP Operating Income (Loss) to Non-GAAP Adjusted EBITDA |
||||||||||||||||||||||||||||||||||||||||
YTD 2023 and YTD 2022 |
||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
Lawson Products |
|
Gexpro Services |
|
TestEquity |
|
Other |
|
Eliminations |
|
Consolidated DSG |
|||||||||||||||||||||||||||||
Year Ended |
2023 |
2022 |
|
2023 |
2022 |
|
2023 |
2022 |
|
2023 |
2022 |
|
2023 |
2022 |
|
2023 |
2022 |
|||||||||||||||||||||||
Revenue from external customers |
$ |
468,379 |
|
$ |
324,783 |
|
|
$ |
404,490 |
|
$ |
385,326 |
|
|
$ |
641,643 |
|
$ |
392,358 |
|
|
$ |
55,890 |
|
$ |
48,955 |
|
|
$ |
— |
|
$ |
— |
|
$ |
1,570,402 |
|
$ |
1,151,422 |
|
Intersegment revenue |
|
332 |
|
|
— |
|
|
|
1,243 |
|
|
— |
|
|
|
125 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(1,700 |
) |
|
— |
|
|
— |
|
|
— |
|
Revenue |
|
468,711 |
|
|
324,783 |
|
|
|
405,733 |
|
|
385,326 |
|
|
|
641,768 |
|
|
392,358 |
|
|
|
55,890 |
|
|
48,955 |
|
|
|
(1,700 |
) |
|
— |
|
|
1,570,402 |
|
|
1,151,422 |
|
Pre-merger revenue(1) |
|
— |
|
|
104,902 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
12,975 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
117,877 |
|
Pro forma revenue |
$ |
468,711 |
|
$ |
429,685 |
|
|
$ |
405,733 |
|
$ |
385,326 |
|
|
$ |
641,768 |
|
$ |
392,358 |
|
|
$ |
55,890 |
|
$ |
61,930 |
|
|
$ |
(1,700 |
) |
$ |
— |
|
$ |
1,570,402 |
|
$ |
1,269,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Operating income (loss) |
$ |
32,498 |
|
$ |
6,536 |
|
|
$ |
27,000 |
|
$ |
21,291 |
|
|
$ |
(16,465 |
) |
$ |
11,375 |
|
|
$ |
(42 |
) |
$ |
2,584 |
|
|
|
|
|
$ |
42,991 |
|
$ |
41,786 |
|
|||
Pre-merger operating income(1) |
|
— |
|
|
11,096 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
980 |
|
|
|
|
|
|
— |
|
|
12,076 |
|
|||
Pro forma merger adjustments(2) |
|
— |
|
|
(4,086 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
|
|
|
— |
|
|
(4,086 |
) |
|||
Pro forma operating income (loss) |
|
32,498 |
|
|
13,546 |
|
|
|
27,000 |
|
|
21,291 |
|
|
|
(16,465 |
) |
|
11,375 |
|
|
|
(42 |
) |
|
3,564 |
|
|
|
|
|
|
42,991 |
|
|
49,776 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Depreciation and amortization |
|
19,532 |
|
|
14,716 |
|
|
|
15,986 |
|
|
15,175 |
|
|
|
26,002 |
|
|
17,480 |
|
|
|
2,068 |
|
|
2,080 |
|
|
|
|
|
|
63,588 |
|
|
49,451 |
|
|||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Merger and acquisition related costs(3) |
|
3,015 |
|
|
7,672 |
|
|
|
1,081 |
|
|
5,957 |
|
|
|
6,215 |
|
|
4,786 |
|
|
|
1,250 |
|
|
— |
|
|
|
|
|
|
11,561 |
|
|
18,415 |
|
|||
Stock-based compensation(4) |
|
7,940 |
|
|
(4,237 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
|
|
|
7,940 |
|
|
(4,237 |
) |
|||
Severance and acquisition related retention expenses(5) |
|
476 |
|
|
2,050 |
|
|
|
238 |
|
|
266 |
|
|
|
23,949 |
|
|
1,095 |
|
|
|
3 |
|
|
11 |
|
|
|
|
|
|
24,666 |
|
|
3,422 |
|
|||
Inventory net realizable value adjustment(6) |
|
— |
|
|
1,737 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
|
|
|
— |
|
|
1,737 |
|
|||
Inventory step-up(7) |
|
— |
|
|
1,943 |
|
|
|
— |
|
|
163 |
|
|
|
3,582 |
|
|
— |
|
|
|
— |
|
|
761 |
|
|
|
|
|
|
3,582 |
|
|
2,867 |
|
|||
Other non-recurring(8) |
|
202 |
|
|
1,199 |
|
|
|
886 |
|
|
354 |
|
|
|
— |
|
|
— |
|
|
|
1,620 |
|
|
44 |
|
|
|
|
|
|
2,708 |
|
|
1,597 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Non-GAAP adjusted EBITDA |
$ |
63,663 |
|
$ |
38,626 |
|
|
$ |
45,191 |
|
$ |
43,206 |
|
|
$ |
43,283 |
|
$ |
34,736 |
|
|
$ |
4,899 |
|
$ |
6,460 |
|
|
|
|
|
$ |
157,036 |
|
$ |
123,028 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Operating income (loss) as a percent of revenue |
|
6.9 |
% |
|
2.0 |
% |
|
|
6.7 |
% |
|
5.5 |
% |
|
|
(2.6 |
)% |
|
2.9 |
% |
|
|
(0.1 |
)% |
|
5.3 |
% |
|
|
|
|
|
2.7 |
% |
|
3.6 |
% |
|||
Adjusted EBITDA as a percent of revenue |
|
13.6 |
% |
|
11.9 |
% |
|
|
11.1 |
% |
|
11.2 |
% |
|
|
6.7 |
% |
|
8.9 |
% |
|
|
8.8 |
% |
|
13.2 |
% |
|
|
|
|
|
10.0 |
% |
|
10.7 |
% |
|||
Adjusted EBITDA as a percent of pro forma revenue |
|
13.6 |
% |
|
9.0 |
% |
|
|
11.1 |
% |
|
11.2 |
% |
|
|
6.7 |
% |
|
8.9 |
% |
|
|
8.8 |
% |
|
10.4 |
% |
|
|
|
|
|
10.0 |
% |
|
9.7 |
% |
|||
(1) |
Represents Lawson Products pre-merger revenue and operating income |
(2) |
Represents Lawson Products pro forma adjustments related to the merger consisting primarily of amortization of intangibles and stock based compensation |
(3) |
Transaction and integration costs related to the mergers and other acquisitions |
(4) |
Expense (benefit) primarily for stock-based compensation, of which a portion varies with the Company’s stock price |
(5) |
Includes severance expense for actions taken in 2023 and 2022, not related to a formal restructuring plan and acquisition related retention expenses for the Hisco acquisition |
(6) |
Inventory net realizable value adjustment recorded to reduce inventory related to discontinued products where the anticipated net realizable value was lower than the cost reflected in our records |
(7) |
Inventory fair value step-up adjustment for Lawson resulting from the reverse merger acquisition accounting and acquisition accounting for additional acquisitions completed by Gexpro Services or TestEquity |
(8) |
Other non-recurring costs consist of non-capitalized deferred financing costs incurred in conjunction with the 2023 credit agreement amendment, certain non-recurring strategic projects and other non-recurring items |
Distribution Solutions Group, Inc. |
|||||||||||||||
Table 4 - Reconciliation of GAAP Net Income (Loss) and GAAP Diluted EPS to Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted EPS |
|||||||||||||||
(Dollars in thousands, except per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
||||||||||||||
|
Three Months Ended |
||||||||||||||
|
December 31, 2023 |
|
December 31, 2022(3)(4) |
||||||||||||
|
Amount |
|
Diluted EPS(2) |
|
Amount |
|
Diluted EPS(2) |
||||||||
Net income (loss) |
$ |
(16,330 |
) |
|
$ |
(0.35 |
) |
|
$ |
(1,883 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
||||||||
Pretax adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
2,499 |
|
|
|
0.05 |
|
|
|
2,003 |
|
|
|
0.05 |
|
Merger and acquisition related costs |
|
2,498 |
|
|
|
0.05 |
|
|
|
4,633 |
|
|
|
0.12 |
|
Amortization of intangible assets |
|
10,398 |
|
|
|
0.22 |
|
|
|
8,186 |
|
|
|
0.21 |
|
Severance and acquisition related retention expenses |
|
11,400 |
|
|
|
0.24 |
|
|
|
443 |
|
|
|
0.01 |
|
Change in fair value of earnout liabilities |
|
(112 |
) |
|
|
— |
|
|
|
4,431 |
|
|
|
0.11 |
|
Inventory step-up |
|
716 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Other non-recurring |
|
784 |
|
|
|
0.02 |
|
|
|
394 |
|
|
|
0.01 |
|
Total pretax adjustments |
|
28,183 |
|
|
|
0.60 |
|
|
|
20,090 |
|
|
|
0.51 |
|
Tax effect on adjustments(1) |
|
(7,412 |
) |
|
|
(0.16 |
) |
|
|
(5,264 |
) |
|
|
(0.14 |
) |
Deferred tax asset valuation allowance(5) |
|
6,144 |
|
|
|
0.13 |
|
|
|
124 |
|
|
|
— |
|
Non-GAAP adjusted net income |
$ |
10,585 |
|
|
$ |
0.22 |
|
|
$ |
13,067 |
|
|
$ |
0.32 |
|
(1) |
The estimated tax effect on the adjustments is determined by applying the jurisdictional rate of the originating territory of the non-GAAP adjustments. |
(2) |
Pretax adjustments to diluted EPS calculated on 46.805 million and 38.817 million diluted shares for the fourth quarter of 2023 and 2022, respectively. |
(3) |
In 2023, the Company changed the treatment of amortization of intangible assets and the deferred tax asset valuation allowance to be included in the calculation of Non-GAAP adjusted net income and Non-GAAP adjusted diluted EPS. The calculation of the tax effect on adjustments was revised to consider the jurisdictional rate of the originating territory of the non-GAAP adjustments. Prior periods have been adjusted to conform to current period presentation. |
(4) |
Share and per share data for all periods presented reflect two-for-one stock split. |
(5) |
Represents expense related to the deferred tax asset valuation allowance from interest expense limitations under Section 163(j). |
Distribution Solutions Group, Inc. |
|||||||||||||||
Table 5 - Reconciliation of GAAP Net Income (Loss) and GAAP Diluted EPS to Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted EPS |
|||||||||||||||
(Dollars in thousands, except per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
||||||||||||||
|
Twelve Months Ended |
||||||||||||||
|
December 31, 2023 |
|
December 31, 2022(3)(4) |
||||||||||||
|
Amount |
|
Diluted EPS(2) |
|
Amount |
|
Diluted EPS(2) |
||||||||
Net income (loss) |
$ |
(8,967 |
) |
|
$ |
(0.20 |
) |
|
$ |
7,406 |
|
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
||||||||
Pretax adjustments: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
7,940 |
|
|
|
0.18 |
|
|
|
2,448 |
|
|
|
0.07 |
|
Merger and acquisition related costs |
|
11,561 |
|
|
|
0.26 |
|
|
|
15,441 |
|
|
|
0.44 |
|
Amortization of intangible assets |
|
40,263 |
|
|
|
0.90 |
|
|
|
29,097 |
|
|
|
0.83 |
|
Severance and acquisition related retention expenses |
|
24,666 |
|
|
|
0.55 |
|
|
|
2,796 |
|
|
|
0.08 |
|
Change in fair value of earnout liabilities |
|
(758 |
) |
|
|
(0.02 |
) |
|
|
483 |
|
|
|
0.01 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
3,395 |
|
|
|
0.10 |
|
Inventory net realizable value adjustment |
|
— |
|
|
|
— |
|
|
|
1,737 |
|
|
|
0.05 |
|
Inventory step-up |
|
3,582 |
|
|
|
0.08 |
|
|
|
2,867 |
|
|
|
0.08 |
|
Other non-recurring |
|
2,708 |
|
|
|
0.06 |
|
|
|
1,597 |
|
|
|
0.05 |
|
Total pretax adjustments |
|
89,962 |
|
|
|
2.01 |
|
|
|
59,861 |
|
|
|
1.71 |
|
Tax effect on adjustments(1) |
|
(23,660 |
) |
|
|
(0.53 |
) |
|
|
(15,684 |
) |
|
|
(0.45 |
) |
Deferred tax asset valuation allowance |
|
6,144 |
|
|
|
0.14 |
|
|
|
124 |
|
|
|
— |
|
Non-GAAP adjusted net income |
$ |
63,479 |
|
|
$ |
1.42 |
|
|
$ |
51,707 |
|
|
$ |
1.47 |
|
(1) |
The estimated tax effect on the adjustments is determined by applying the jurisdictional rate of the originating territory of the non-GAAP adjustments. |
(2) |
Pretax adjustments to diluted EPS calculated on 44.869 million and 35.087 million diluted shares for the twelve months ended December 31, 2023 and 2022, respectively. |
(3) |
In 2023, the Company changed the treatment of amortization of intangible assets and the deferred tax asset valuation allowance to be included in the calculation of Non-GAAP adjusted net income and Non-GAAP adjusted diluted EPS. The calculation of the tax effect on adjustments was revised to consider the jurisdictional rate of the originating territory of the non-GAAP adjustments. Prior periods have been adjusted to conform to current period presentation. |
(4) |
Share and per share data for all periods presented reflect two-for-one stock split. |
(5) |
Represents expense related to the deferred tax asset valuation allowance from interest expense limitations under Section 163(j). |
Distribution Solutions Group, Inc. |
|||||||||||||
Table 6 - Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Adjusted Operating Income |
|||||||||||||
(Dollars in thousands) |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||
|
December 31, |
|
December 31, |
||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||
Operating income (loss) |
$ |
(289 |
) |
|
$ |
12,658 |
|
$ |
42,991 |
|
$ |
41,786 |
|
Pre-merger operating income(1) |
|
— |
|
|
|
— |
|
|
— |
|
|
12,076 |
|
Pro forma merger adjustments(2) |
|
— |
|
|
|
— |
|
|
— |
|
|
(4,086 |
) |
Pro forma operating income (loss) |
|
(289 |
) |
|
|
12,658 |
|
|
42,991 |
|
|
49,776 |
|
|
|
|
|
|
|
|
|
||||||
Gross profit adjustments: |
|
|
|
|
|
|
|
||||||
Inventory step-up(3) |
|
716 |
|
|
|
— |
|
|
3,582 |
|
|
2,867 |
|
Inventory net realizable value adjustment(4) |
|
— |
|
|
|
— |
|
|
— |
|
|
1,737 |
|
Total gross profit adjustments |
|
716 |
|
|
|
— |
|
|
3,582 |
|
|
4,604 |
|
|
|
|
|
|
|
|
|
||||||
Selling, general and administrative expenses adjustments: |
|
|
|
|
|
|
|
||||||
Merger and acquisition related costs(5) |
|
2,498 |
|
|
|
4,633 |
|
|
11,561 |
|
|
18,415 |
|
Stock-based compensation(6) |
|
2,499 |
|
|
|
2,003 |
|
|
7,940 |
|
|
(4,237 |
) |
Severance and acquisition related retention expenses(7) |
|
11,400 |
|
|
|
443 |
|
|
24,666 |
|
|
3,422 |
|
Other non-recurring(8) |
|
784 |
|
|
|
394 |
|
|
2,708 |
|
|
1,597 |
|
Total selling, general and administrative adjustments |
|
17,181 |
|
|
|
7,473 |
|
|
46,875 |
|
|
19,197 |
|
|
|
|
|
|
|
|
|
||||||
Total adjustments |
|
17,897 |
|
|
|
7,473 |
|
|
50,457 |
|
|
23,801 |
|
Non-GAAP adjusted operating income |
$ |
17,608 |
|
|
$ |
20,131 |
|
$ |
93,448 |
|
$ |
73,577 |
|
(1) |
Represents Lawson Products pre-merger operating income |
(2) |
Represents Lawson Products pro forma adjustments related to the merger consisting primarily of amortization of intangibles and stock based compensation |
(3) |
Inventory fair value step-up adjustment for Lawson resulting from the reverse merger acquisition accounting and acquisition accounting for additional acquisitions completed by Gexpro Services or TestEquity |
(4) |
Inventory net realizable value adjustment recorded to reduce inventory related to discontinued products where the anticipated net realizable value was lower than the cost reflected in our records |
(5) |
Transaction and integration costs related to the mergers and other acquisitions |
(6) |
Expense (benefit) primarily for stock-based compensation, of which a portion varies with the Company’s stock price |
(7) |
Includes severance expense for actions taken in 2023 and 2022 not related to a formal restructuring plan and acquisition related retention expenses for the Hisco acquisition |
(8) |
Other non-recurring costs consist of non-capitalized deferred financing costs incurred in conjunction with the 2023 credit agreement amendment, certain non-recurring strategic projects and other non-recurring items |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240306370463/en/
Company:
Distribution Solutions Group, Inc.
Ronald J. Knutson
Executive Vice President, Chief Financial Officer and Treasurer
1-888-611-9888
Investor Relations:
Three Part Advisors, LLC
Steven Hooser / Sandy Martin
214-872-2710 / 214-616-2207
Source: Distribution Solutions Group, Inc.
FAQ
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