DSG Q1 2024 Earnings Report
Key Takeaways
Distribution Solutions Group reported a 19.5% increase in revenue to $416 million for the first quarter of 2024, driven by acquisitions. The adjusted EBITDA margin improved to 8.7% compared to 8.4% in the previous quarter. The Lawson MRO vertical had strong performance, Gexpro Services OEM vertical returned to double-digit margins, and TestEquity industrial technology vertical margins stabilized.
Revenue increased by 19.5% to $416.1 million, including $99.2 million from recent acquisitions.
Two-year stacked organic revenue grew by 4.7%, despite an 8.6% decrease in current quarter organic revenue.
Operating income was $2.8 million, including $10.7 million in non-cash acquired intangible amortization and $16.2 million in non-recurring expenses.
Adjusted EBITDA was $36.1 million, representing 8.7% of revenue, compared to $39.4 million in the prior year quarter.
DSG
DSG
Forward Guidance
The company is actively working its pipeline of acquisition targets, incremental margin enhancement initiatives, and cost savings -- and expect sequential margin improvements as 2024 develops.