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Mar 31, 2023

DSG Q1 2023 Earnings Report

Achieved record revenue and profit growth, driven by strong organic revenue.

Key Takeaways

Distribution Solutions Group reported strong first-quarter results with a 28% increase in adjusted revenue, fueled by 13.7% organic growth, and adjusted EBITDA expansion to $39.4 million, representing 11.3% of revenue.

GAAP revenue was $348.3 million, an increase of $194.2 million or 126.0%, which included $38.9 million of additional revenue from companies acquired in 2022 other than Lawson Products.

Non-GAAP adjusted revenue increased 28.1% or approximately $76.3 million, driven by strong organic growth of 13.7% plus revenue from companies acquired in 2022 (other than Lawson Products).

Reported operating income increased by $13.7 million from the prior year period to $16.7 million or 4.8% of GAAP revenue; Non-GAAP adjusted EBITDA increased by 73.6% from the prior year period to $39.4 million or 11.3% of revenue.

Diluted income per share was $0.28 for the quarter compared to a diluted loss per share of $0.25 in the year-ago quarter; Non-GAAP diluted earnings per share was $0.52 in the first quarter 2023 compared to $0.00 for the same period a year ago.

Total Revenue
$348M
Previous year: $118M
+195.5%
EPS
$0.26
Previous year: $0.57
-54.4%
Adjusted EBITDA Margin
11.3%
Previous year: 7.8%
+44.9%
Gross Profit
$133M
Previous year: $60.5M
+119.6%
Cash and Equivalents
$31.1M
Previous year: $5.53M
+462.8%
Free Cash Flow
$9.37M
Previous year: -$13.9M
-167.2%
Total Assets
$1.23B
Previous year: $271M
+353.7%

DSG

DSG

Forward Guidance

The company anticipates continued year-over-year revenue and profitability expansion as 2023 progresses with a focus on organic growth, strategic acquisitions and improved operational efficiencies.