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Dec 31, 2023

DSG Q4 2023 Earnings Report

DSG's Q4 2023 performance was influenced by strategic acquisitions and specific end-market challenges.

Key Takeaways

Distribution Solutions Group reported a 23% increase in revenue to $405.2 million, driven by acquisitions, although organic revenue contracted by 6%. The company faced headwinds in the technology end-market and project-related verticals, impacting overall performance. Adjusted EBITDA remained nearly flat at $33.9 million compared to the prior year quarter.

Revenue increased by 23% to $405.2 million, primarily due to acquired revenue from Hisco.

Organic revenue contracted by 6%, but two-year stacked organic revenue grew by 10%.

Operating loss was $0.3 million, impacted by non-cash amortization and non-recurring expenses.

Adjusted EBITDA was $33.9 million, with Hisco operations pressuring adjusted EBITDA margins by approximately 35bps.

Total Revenue
$405M
Previous year: $329M
+23.2%
EPS
$0.22
Previous year: $0.13
+69.2%
Adjusted EBITDA Margin
8.4%
Previous year: 10.3%
-18.4%
Gross Profit
$127M
Previous year: $116M
+9.5%
Cash and Equivalents
$83.9M
Previous year: $24.6M
+241.8%
Free Cash Flow
$22.5M
Previous year: $4.9M
+358.8%
Total Assets
$1.55B
Previous year: $1.22B
+27.5%

DSG

DSG

Forward Guidance

The company did not provide a specific forward guidance in this earnings report.