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Dec 31, 2022

DSG Q4 2022 Earnings Report

DSG's Q4 2022 earnings were announced, revealing strong organic sales growth and margin expansion.

Key Takeaways

Distribution Solutions Group reported a strong fourth quarter with revenue growth driven by organic sales and acquisitions. Adjusted EBITDA increased significantly, and the company saw margin expansion. The company is focused on driving returns on cash flow through organic growth, strategic acquisitions, and operational efficiencies.

GAAP revenue was $328.9 million, up 154.5% year-over-year, including revenue from acquisitions.

Non-GAAP adjusted revenue increased 42.2% to $328.9 million, driven by organic growth of 16.7% and acquisitions.

Reported operating income increased to $12.7 million, or 3.8% of GAAP revenue.

Non-GAAP adjusted EBITDA increased to $34.0 million, or 10.3% of non-GAAP adjusted revenue.

Total Revenue
$329M
Previous year: $102M
+222.2%
EPS
$0.13
Previous year: $0.52
-75.0%
Adjusted EBITDA Margin
10.3%
Previous year: 8.3%
+24.1%
Gross Profit
$116M
Previous year: $54M
+115.3%
Cash and Equivalents
$24.6M
Previous year: $4.18M
+487.3%
Free Cash Flow
$4.9M
Previous year: -$3.25M
-250.9%
Total Assets
$1.22B
Previous year: $491M
+147.4%

DSG

DSG

Forward Guidance

The company is laser-focused on driving greater returns on cash flow through a combination of organic growth, strategic acquisitions and operational efficiencies. The company believes that their disciplined approach to capital allocation through their asset light model coupled with their strengthening balance sheet positions them to further generate meaningful returns and cash flow in 2023.