Distribution Solutions Group Announces 2025 First Quarter Results
First Quarter Revenues Up 14.9%, Consolidated Organic Average Daily Sales Up 4.3%
FORT WORTH, Texas--(BUSINESS WIRE)--May 01, 2025--
Distribution Solutions Group, Inc. (NASDAQ:DSGR) ("DSG" or the "Company"), a premier specialty distribution company, today announced consolidated results for the first quarter ended March 31, 2025. This press release is supplemented by an earnings presentation at https://investor.distributionsolutionsgroup.com/news/events.
The following represents a summary of certain operating results (unaudited). See the reconciliations of GAAP to non-GAAP measures in Tables 2, 3 and 4.
Three Months Ended
----------------------------------------------------------------
March 31, December 31,
-------------------------------------- ------------------------
(Dollars in thousands) 2025 2024 % Change 2024 % Change
------- ------- ---------- ------- ----------
Revenue $478,029 $416,086 14.9% $480,463 (0.5)%
Operating income $ 20,097 $ 2,783 N/M $ 20,067 0.1%
Non-GAAP adjusted
operating income $ 34,392 $ 29,761 15.6% $ 37,293 (7.8)%
Non-GAAP adjusted
EBITDA $ 42,786 $ 36,067 18.6% $ 44,899 (4.7)%
Operating income (loss)
as a percent of
revenue 4.2% 0.7% 350bps 4.2% 0bps
Adjusted EBITDA as a
percent of revenue 9.0% 8.7% 30bps 9.3% -30bps
(N/M) - Not meaningful
Bryan King, CEO and Chairman, said, "Our financial results met expectations for the quarter, despite macro uncertainties that affected all U.S. companies. We are pleased with first quarter sales of $478 million, up 14.9%, comprising inorganic revenue of $51 million and an increase in organic average daily sales of 4.3%. On a constant currency basis our organic ADS was up 4.7%, which includes a full quarter of contribution from Source Atlantic. First quarter's Adjusted EBITDA grew to $42.8 million, up 18.6% and expanded to 9.0% as a percent of sales compared to 8.7% in the year-ago period.
"We are pleased to report year-over-year net margin expansion in each of our three verticals on a comparable basis. Lawson's net margins in the quarter expanded from 11.4% a year ago to 11.9%, Gexpro Services expanded from 11.0% a year ago to 12.6% and TestEquity expanded from 6.2% a year ago to 6.8%. As expected, Source Atlantic's results compressed the Canada Branch Division and DSG's net margins. Excluding the Source Atlantic impact from the consolidated results, Adjusted EBITDA margin for the first quarter would have been 9.6%. Initiatives to improve margins in each of our five 2024 acquisitions are in the early innings. We remain confident in our plan to improve DSG's structural margins and achieve our higher return goals.
"We are cautiously optimistic about 2025 and are well-positioned to help our customers navigate alternative sourcing and services as trade policies develop. In the first quarter, our capital allocation priorities allowed us to take advantage of opportunistic share repurchases totaling $11.2 million. We continue to focus on long-term value creation through the growth of our industrial distribution platform. We are building higher-margin businesses by strategically scaling our platform through a combination of organic growth and highly strategic M&A. Our focus on managing our capital structure and generating high cash flow conversion rates positions us well to generate sustaining, long-term value for our shareholders," concluded Mr. King.
2025 First Quarter Summary(1)
-- Revenue increased $61.9 million, or 14.9%, to $478.0 million, including
$50.8 million of revenue from five acquisitions closed in 2024. Organic
average daily sales grew 4.3% over a year ago but decreased 1.4%
sequentially over the fourth quarter of 2024. On a constant currency
basis, organic average daily sales grew 4.7% over a year ago quarter.
-- Operating income was $20.1 million, net of $11.6 million of non-cash
acquired intangible amortization and $2.7 million of non-recurring
severance and acquisition-related retention costs, stock-based
compensation, acquisition-related costs and other non-recurring items.
This compares to an operating income of $2.8 million in the prior year
quarter, net of similar items as 2024. Adjusted operating income,
excluding these non-cash and non-recurring items, was $34.4 million in
the current quarter compared to $29.8 million in the year-ago quarter and
$37.3 million in the fourth quarter of 2024.
-- Diluted net income per share was $0.07 for the quarter compared to
diluted net loss per share of $0.11 in the year-ago quarter. Non-GAAP
adjusted diluted earnings per share was $0.31 compared to $0.25 for the
same period a year ago and $0.42 for the fourth quarter of 2024.
-- Adjusted EBITDA grew $6.7 million to $42.8 million, or 9.0% of sales,
compared to $36.1 million, or 8.7% of sales in the prior year quarter.
Inclusion of the 2024 Source Atlantic acquisition compressed Adjusted
EBITDA as a percentage of sales by approximately 60bps over the year ago
quarter. Sequentially, Adjusted EBITDA decreased by $2.1 million from the
fourth quarter of 2024 and decreased as a percentage of sales by 30bps.
-- Uses of cash for the quarter included net capital expenditures of $5.1
million and share repurchases of $11.2 million.
-- The Company ended the quarter with total liquidity of $304.8 million,
consisting of $80.0 million of cash (restricted and unrestricted) and
$224.7 million of availability under its credit facility with net debt
leverage of 3.6x. (1) See reconciliation of GAAP to non-GAAP measures in
tables 2, 3 and 4.
Conference Call
Distribution Solutions Group, Inc. will conduct a conference call with investors to discuss 2025 first quarter results at 9:00 a.m. Eastern Time on May 1, 2025. The conference call is available by direct dial at 1-888-506-0062 in the U.S. or 1-973-528-0011 from outside of the U.S. The participant access code is 958334. A replay of the conference call will be available by telephone approximately two hours after completion of the call through May 15, 2025. Callers can access the replay by dialing 1-877-481-4010 in the U.S. or 1-919-882-2331 outside the U.S. The passcode for the replay is 52327. A streaming audio of the call and an archived replay will also be available on the investor relations page of Distribution Solutions Group's website. Presentations may be supplemented by a series of slides appearing on the company's investor relations home page at https://investor.distributionsolutionsgroup.com/news/events.
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 200,000 customers in several diverse end markets supported by approximately 4,400 dedicated employees and strong vendor partnerships. DSG ships from strategically located distribution and service centers to customers in North America, Europe, Asia, South America and the Middle East.
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, Section 21E of the Securities Exchange Act of 1934, as amended, and the "safe-harbor" provisions under the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. The terms "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. DSG undertakes no obligation to release publicly any revisions to forward-looking statements as a result of new information, future events or otherwise. Each forward-looking statement speaks only as of the date on which such statement is made, and DSG undertakes no obligation to update any such statement to reflect events or circumstances arising after such date. Actual results may differ materially from those projected as a result of certain risks and uncertainties. Factors that could cause or contribute to such differences or that might otherwise impact DSG's business, financial condition and results of operations include the risks that DSG may encounter difficulties integrating the business of DSG with the business of other companies that DSG has combined with or may otherwise combine with and that certain assumptions with respect to such business or transactions could prove to be inaccurate. Certain risks associated with DSG's business are also discussed from time to time in the reports DSG files with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K or other reports the Company may file from time to time with the Securities and Exchange Commission, which should be reviewed carefully.
-TABLES FOLLOW-
Distribution Solutions Group, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share data)
(Unaudited)
March 31, December 31,
2025 2024
----------- -----------------
ASSETS
Current assets:
Cash and cash equivalents $ 65,442 $ 66,479
Restricted cash 14,595 15,247
Accounts receivable, less allowances 280,393 250,717
Inventories 349,354 348,226
Prepaid expenses and other current
assets 35,018 31,505
--------- ----------
Total current assets 744,802 712,174
Property, plant and equipment, net 125,874 125,524
Rental equipment, net 38,105 39,376
Goodwill 464,098 462,789
Deferred tax asset, net 128 136
Intangible assets, net 258,680 269,763
Cash value of life insurance 19,726 19,916
Right of use operating lease assets 106,468 91,962
Other assets 5,031 5,615
--------- ----------
Total assets $1,762,912 $ 1,727,255
========= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 134,206 $ 125,575
Current portion of long-term debt 40,740 40,476
Current portion of lease liabilities 18,664 18,951
Accrued expenses and other current
liabilities 78,628 81,259
--------- ----------
Total current liabilities 272,238 266,261
Long-term debt, less current portion,
net 712,370 693,903
Lease liabilities 94,057 77,758
Deferred tax liability, net 22,734 22,265
Other liabilities 24,800 26,525
--------- ----------
Total liabilities 1,126,199 1,086,712
Stockholders' equity:
Preferred stock, $1 par value:
Authorized - 500,000 shares, issued
and outstanding -- None -- --
Common stock, $1 par value:
Authorized - 70,000,000 shares
Issued - 47,770,100 and 47,738,290
shares, respectively Outstanding -
46,567,929 and 46,856,757 shares,
respectively 46,567 46,856
Capital in excess of par value 680,210 677,473
Retained deficit (38,778) (42,039)
Treasury stock -- 1,202,171 and 881,533
shares, respectively (30,834) (19,631)
Accumulated other comprehensive income
(loss) (20,452) (22,116)
--------- ----------
Total stockholders' equity 636,713 640,543
--------- ----------
Total liabilities and
stockholders' equity $1,762,912 $ 1,727,255
========= ==========
Distribution Solutions Group, Inc.
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
----------------------------
2025 2024
---------- ----------
Revenue $ 478,029 $ 416,086
Cost of goods sold 314,049 272,677
---------- ----------
Gross profit 163,980 143,409
Selling, general and administrative
expenses 143,883 140,626
Operating income (loss) 20,097 2,783
Interest expense (14,215) (11,827)
Change in fair value of earnout
liabilities (1,000) 5
Other income (expense), net 632 (262)
---------- ----------
Income (loss) before income taxes 5,514 (9,301)
Income tax expense (benefit) 2,253 (4,077)
---------- ----------
Net income (loss) $ 3,261 $ (5,224)
========== ==========
Basic income (loss) per share of common
stock $ 0.07 $ (0.11)
========== ==========
Diluted income (loss) per share of
common stock $ 0.07 $ (0.11)
========== ==========
Basic weighted average shares
outstanding 46,601,426 46,777,178
Diluted weighted average shares
outstanding 47,400,378 46,777,178
Distribution Solutions Group, Inc.
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
Three Months Ended March 31,
--------------------------------------
2025 2024
----------- ----------
Operating activities
Net income (loss) $ 3,261 $ (5,224)
Adjustments to reconcile to net
cash used in operating
activities:
Depreciation and
amortization 19,979 17,052
Amortization of debt
issuance costs 902 660
Stock-based compensation 974 2,198
Deferred income taxes 476 1,159
Change in fair value of
earnout liabilities 1,000 (5)
(Gain) loss on sale of
rental equipment (1,026) (432)
(Gain) loss on sale of
property, plant and
equipment (15) (5)
Net realizable value
adjustment and write-offs
for obsolete and excess
inventory 1,779 1,605
Bad debt expense 437 (333)
Changes in operating assets and
liabilities, net of
acquisitions:
Accounts receivable (29,587) (6,560)
Inventories (1,822) 1,048
Prepaid expenses and other
current assets (4,965) (6,813)
Accounts payable 7,735 3,454
Accrued expenses and other
current liabilities (2,957) (1,488)
Other changes in operating
assets and liabilities (933) 299
----------- ----------
Net cash provided by
(used in) operating
activities (4,762) 6,615
----------- ----------
Investing activities
Purchases of property, plant and
equipment (5,646) (2,454)
Proceeds from sale of property,
plant and equipment 990 --
Business acquisitions, net of
cash acquired -- (13,145)
Purchases of rental equipment (2,861) (1,221)
Proceeds from sale of rental
equipment 2,464 812
----------- ----------
Net cash provided by (used
in) investing activities (5,053) (16,008)
----------- ----------
Financing activities
Proceeds from revolving lines of
credit 93,502 8,858
Payments on revolving lines of
credit (65,334) (11,611)
Payments on term loans (10,063) (625)
Repurchase of common stock (11,203) --
Shares repurchased held in
treasury -- (449)
Stock option exercises 877 --
Payment of financing lease
principal (146) (124)
----------- ----------
Net cash provided by (used
in) financing activities 7,633 (3,951)
----------- ----------
Effect of exchange rate changes on
cash and cash equivalents 493 (680)
Increase (decrease) in cash, cash
equivalents and restricted cash (1,689) (14,024)
Cash, cash equivalents and
restricted cash at beginning of
period 81,726 99,626
----------- ----------
Cash, cash equivalents and
restricted cash at end of period $ 80,037 $ 85,602
=========== ==========
Cash and cash equivalents $ 65,442 $ 73,097
Restricted cash 14,595 12,505
----------- ----------
Total cash, cash equivalents and
restricted cash $ 80,037 $ 85,602
=========== ==========
Distribution Solutions Group, Inc.
Segment Reporting
Change in Reportable Segments: In the third quarter of 2024, as a result of the Source Atlantic Limited ("Source Atlantic") acquisition, we realigned our reportable segments by adding a new segment with a focus on the Canadian MRO market. The new Canada Branch Division segment includes the results of Source Atlantic and Bolt Supply House ("Bolt"). The results of Bolt had previously been included in our All Other non-reportable segment prior to Q3 2024. The results of the Lawson, TestEquity and Gexpro Services reportable segments did not change. The segment realignment had no impact on our financial condition or results of operations. Prior period segment results have been recast to reflect our new reportable segments.
Distribution Solutions Group, Inc.
Table 1 - Selected Segment Financial Data
(Dollars in thousands)
(Unaudited)
Three Months Ended
March 31,
----------------------
2025 2024
------- -------
Revenue:
Lawson Products $120,462 $118,186
Canada Branch Division 50,543 12,495
Gexpro Services 118,905 98,651
TestEquity 188,773 187,149
Intersegment revenue elimination (654) (395)
------- -------
Total $478,029 $416,086
======= =======
Operating income (loss):
Lawson Products $ 6,316 $ 4,107
Canada Branch Division 651 860
Gexpro Services 11,241 5,462
TestEquity 4,130 (6,094)
All Other (2,241) (1,552)
------- -------
Total $ 20,097 $ 2,783
======= =======
DISTRIBUTION SOLUTIONS GROUP, INC.
SEC REGULATION G GAAP RECONCILIATIONS
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, the Company's management believes that certain non-GAAP financial measures may provide users of this financial information with additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflections of underlying trends of the business because they provide a comparison of historical information that excludes certain non-operational or non-cash items that impact the overall comparability. See Tables below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 31, 2025 and 2024 and the three months ended December 31, 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.
Distribution Solutions Group, Inc.
Table 2 - Reconciliation of GAAP Net Income (Loss) and GAAP Operating
Income (Loss) to Non-GAAP Adjusted EBITDA
(Dollars in thousands)
(Unaudited)
Three Months Ended
------------------------------------------
March 31, December 31,
------------------------ ----------------
2025 2024 2024
------ ------ --------
Net income (loss) $ 3,261 $(5,224) $ (25,925)
Income tax expense
(benefit) 2,253 (4,077) 30,060
Other income
(expense), net (632) 262 440
Change in fair value
of earnout
liabilities 1,000 (5) 127
Interest expense 14,215 11,827 15,365
------ ------ --------
Operating income (loss) 20,097 2,783 20,067
Depreciation and
amortization 19,979 17,052 20,165
Stock-based
compensation(1) 974 2,198 910
Severance and
acquisition related
retention
expenses(2) 1,628 10,716 639
Acquisition related
costs(3) 108 1,954 1,689
Inventory step-up(4) -- -- 1,122
Other non-recurring(5) -- 1,364 307
------ ------ --------
Non-GAAP adjusted EBITDA $42,786 $36,067 $ 44,899
====== ====== ========
Operating income (loss) as
a percent of revenue 4.2% 0.7% 4.2%
Adjusted EBITDA as a
percent of revenue 9.0% 8.7% 9.3%
(1) Expense (benefit) primarily for stock-based compensation, of which a
portion varies with the Company's stock price.
(2) Includes severance expense for actions taken not related to a formal
restructuring plan and acquisition related retention expenses.
(3) Transaction and integration costs related to acquisitions.
(4) Inventory fair value step-up adjustment for acquisition accounting
related to acquisitions completed.
(5) Other non-recurring costs consist of certain non-recurring strategic
projects and other non-recurring items.
Distribution Solutions Group, Inc.
Table 3 - 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
----------------------------------------------------------
March 31, 2025 March 31, 2024 December 31, 2024
----------------- ----------------- --------------------
Diluted Diluted Diluted
Amount EPS(2) Amount EPS(2) Amount EPS(2)
-------- ------- -------- ------- --------- ---------
Net income (loss) $ 3,261 $ 0.07 $(5,224) $(0.11) $(25,925) $(0.55)
Pretax adjustments:
Stock-based
compensation 974 0.02 2,198 0.05 910 0.02
Acquisition related
costs 108 -- 1,954 0.04 1,689 0.04
Amortization of
intangible assets 11,585 0.24 10,746 0.23 12,559 0.27
Severance and
acquisition
related retention
expenses 1,628 0.03 10,716 0.23 639 0.01
Change in fair
value of earnout
liabilities 1,000 0.02 (5) -- 127 --
Inventory step-up -- -- -- -- 1,122 0.02
Other non-recurring -- -- 1,364 0.03 307 0.01
------ ----- ------ ----- ------- -----
Total pretax
adjustments 15,295 0.31 26,973 0.58 17,353 0.37
Tax effect on
adjustments(1)/(3) (4,044) (0.07) (7,334) (0.16) 2,054 0.04
Deferred tax asset
valuation
allowance(3)/(4) 190 -- (2,696) (0.06) 26,205 0.56
------ ----- ------ ----- ------- -----
Non-GAAP adjusted net
income $14,702 $ 0.31 $11,719 $ 0.25 $ 19,687 $ 0.42
====== ===== ====== ===== ======= =====
(1) The adjustment to the income tax expense (benefit) is determined by
excluding the non-GAAP adjustments by jurisdiction.
(2) Pretax adjustments to diluted EPS calculated on 47.400 million, 46.777
million and 46.849 million diluted shares for the first quarter of 2025
and 2024, and the fourth quarter of 2024, respectively.
(3) The quarter-to-date amounts are derived from the current period
year-to-date amount less the previous quarter year-to-date amount.
(4) The estimated impact to the deferred tax asset valuation allowance from
interest expense limitations under Section 163(j) determined by
including the non-GAAP adjustments by jurisdiction.
Distribution Solutions Group, Inc.
Table 4 - Reconciliation of GAAP Operating Income (Loss) to Non-GAAP
Adjusted Operating Income
(Dollars in thousands)
(Unaudited)
Three Months Ended
--------------------------------
March 31, December 31,
---------------- --------------
2025 2024 2024
------- ------- --------------
Operating income (loss) $20,097 $ 2,783 $ 20,067
Gross profit adjustments:
Inventory step-up(1) -- -- 1,122
------ ------ ----------
Total gross profit adjustments -- -- 1,122
Selling, general and administrative
expenses adjustments:
Acquisition related costs(2) 108 1,954 1,689
Amortization of intangible
assets 11,585 10,746 12,559
Stock-based compensation(3) 974 2,198 910
Severance and acquisition
related retention expenses(4) 1,628 10,716 639
Other non-recurring(5) -- 1,364 307
------ ------ ----------
Total selling, general and
administrative adjustments 14,295 26,978 16,104
Total adjustments 14,295 26,978 17,226
------ ------ ----------
Non-GAAP adjusted operating income $34,392 $29,761 $ 37,293
====== ====== ==========
(1) Inventory fair value step-up adjustment for acquisition accounting
related to acquisitions completed.
(2) Transaction and integration costs related to acquisitions.
(3) Expense (benefit) primarily for stock-based compensation, of which a
portion varies with the Company's stock price.
(4) Includes severance expense for actions taken not related to a formal
restructuring plan and acquisition related retention expenses.
(5) Other non-recurring costs consist of certain non-recurring strategic
projects and other non-recurring items.
Distribution Solutions Group, Inc.
Table 5 - Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Adjusted EBITDA
Q1 2025 and Q1 2024
(Dollars in thousands)
(Unaudited)
Lawson Products Gexpro Services TestEquity Canada Branch Division All Other Eliminations Consolidated DSG
-------------------------- ------------------------- -------------------------- ------------------------ ------------------ -------------- --------------------------
Q1 Q1
Quarter Ended Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 2025 2024 Q1 2025 Q1 2024
------------ ------------ ------------ ----------- ------------ ------------ ----------- ----------- -------- -------- ------ ------ ------------ ------------
Revenue from
external customers $120,440 $118,162 $118,593 $98,364 $188,456 $187,065 $50,540 $12,495 $ -- $ -- $ -- $ -- $478,029 $416,086
Intersegment revenue 22 24 312 287 317 84 3 -- -- -- (654) (395) -- --
------- ------- ------- ------ ------- ------- ------ ------ ------ ------ ---- ---- ------- -------
Revenue $120,462 $118,186 $118,905 $98,651 $188,773 $187,149 $50,543 $12,495 $ -- $ -- $(654) $(395) $478,029 $416,086
======= ======= ======= ====== ======= ======= ====== ====== ====== ====== ==== ==== ======= =======
Operating income
(loss) $ 6,316 $ 4,107 $ 11,241 $ 5,462 $ 4,130 $ (6,094) $ 651 $ 860 $(2,241) $(1,552) $ 20,097 $ 2,783
Depreciation and
amortization 6,552 5,208 3,453 3,840 8,128 7,496 1,846 508 -- -- 19,979 17,052
Adjustments:
Acquisition
related
costs(1) 102 1,287 265 73 (293) 381 -- -- 34 213 108 1,954
Stock-based
compensation(2) 523 2,012 -- -- 168 -- -- -- 283 186 974 2,198
Severance and
acquisition
related
retention
expenses(3) 814 812 16 72 678 9,828 119 4 1 -- 1,628 10,716
Inventory
step-up(4) -- -- -- -- -- -- -- -- -- -- -- --
Other
non-recurring(5) -- -- -- 1,364 -- -- -- -- -- -- -- 1,364
Non-GAAP adjusted
EBITDA $ 14,307 $ 13,426 $ 14,975 $10,811 $ 12,811 $ 11,611 $ 2,616 $ 1,372 $(1,923) $(1,153) $ 42,786 $ 36,067
======= ======= ======= ====== ======= ======= ====== ====== ====== ====== ======= =======
Operating income
(loss) as a percent
of revenue 5.2% 3.5% 9.5% 5.5% 2.2% (3.3)% 1.3% 6.9% N/M N/M 4.2% 0.7%
Adjusted EBITDA as a
percent of revenue 11.9% 11.4% 12.6% 11.0% 6.8% 6.2% 5.2% 11.0% N/M N/M 9.0% 8.7%
(1) Transaction and integration costs related to acquisitions.
(2) Expense (benefit) primarily for stock-based compensation, of which a
portion varies with the Company's stock price.
(3) Includes severance expense from actions taken not related to a formal
restructuring plan and acquisition related retention expenses.
(4) Inventory fair value step-up adjustment for acquisition accounting
related to acquisitions completed.
(5) Other non-recurring costs consist of certain non-recurring strategic
projects and other non-recurring items.
(N/M) - Not meaningful
View source version on businesswire.com: https://www.businesswire.com/news/home/20250430945636/en/
CONTACT: 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
(END) Dow Jones Newswires
May 01, 2025 07:30 ET (11:30 GMT)