Distribution Solutions Group, Inc. · NASDAQ:DSGR
Distribution Solutions — Lawson Products Inc/New — Investor Presentation (November 2014)
18 slides from Distribution Solutions's investor presentation, Nov 10, 2014
Slide 1: Investor Presentation November 2014
This presentation is the property of Lawson Products, Inc. and may not be reproduced 1 Investor Presentation November 2014
Slide 2: Forward-Looking Statements
This presentation is the property of Lawson Products, Inc. and may not be reproduced 2 Forward-Looking Statements "Safe Harbor" Statement under the Securities Litigation Reform Act of 1995: This presentation contains certain forward-looking statements within the meaning of the Private Securities Lit
Slide 3: Lawson Products: At a Glance
This presentation is the property of Lawson Products, Inc. and may not be reproduced 3 Lawson Products: At a Glance • Leading service based provider of consumables in MRO market • Serves industrial, commercial, institutional and government markets in all 50 states, Canada, Mexico, Puerto Rico and th
Slide 4: Lawson Products: Competitive Advantages and Differentiators
This presentation is the property of Lawson Products, Inc. and may not be reproduced 4 Lawson Products: Competitive Advantages and Differentiators What differentiates Lawson: • Service intensive “high touch” value proposition • Vendor managed inventory or “keep fill” • Deep product knowledge • Broad
Slide 5: One Company, Zero Headaches
This presentation is the property of Lawson Products, Inc. and may not be reproduced 5 One Company, Zero Headaches Inventory Management Options Access to Industry Knowledge & Expertise • Approximately 300,000 products • Lawson Managed Inventory • Product recommendations from your Lawson Representati
Slide 6: Customer and Product Profile
This presentation is the property of Lawson Products, Inc. and may not be reproduced 6 Customer and Product Profile Regional Accounts 62% Strategic 14% Kent Automotive 17% Government 4% Other (1) 3% Customer Mix (1) Other consists primarily of freight revenue Fastening Systems 21% Specialty Chemical
Slide 7: Lawson Growth Strategy
This presentation is the property of Lawson Products, Inc. and may not be reproduced 7 Lawson Growth Strategy Add New Sales Reps Foundational Support Selective Acquisitions Sales Growth Driven By ERP Network Optimization Sales Transformation Lean/Six Sigma Website Drive Sales Rep Productivity
Slide 8: 2014 Focus: Actions Across the Value Chain
This presentation is the property of Lawson Products, Inc. and may not be reproduced 8 2014 Focus: Actions Across the Value Chain Driving Growth Sales Process / Sales Reps Customer Service / Order Entry Product Management / Pricing DC Operations Sourcing / Purchasing • Increase sales rep count • Onb
Slide 9: Longer Sales Rep Tenure Drives Rep Productivity
This presentation is the property of Lawson Products, Inc. and may not be reproduced 9 Longer Sales Rep Tenure Drives Rep Productivity $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 0 50 100 150 200 250 300 350 400 < 12 Mos. 1 - 2 Yrs. 3 - 5 Yrs. 5 - 10 Yrs. > 10 Yrs. A ve ra ge A n n u al Sal e s i
Slide 10: Financial Highlights
This presentation is the property of Lawson Products, Inc. and may not be reproduced 10 Financial Highlights • Focused on revenue growth - Number of sales reps and sales rep productivity • Ended Q3 2014 with 894 sales reps, up 14% from Q3 2013 - Added 88 net additional sales reps through Q3 • Strong
Slide 11: Financial Highlights – Sales Trends
This presentation is the property of Lawson Products, Inc. and may not be reproduced 11 Financial Highlights – Sales Trends • Tight correlation between sales levels and sales rep count • Added net 88 through Q3 2014 • Sales rep count to increase by approximately15% by 2014 year- end •Will continue t
Slide 12: Lawson Products: Poised for Growth
This presentation is the property of Lawson Products, Inc. and may not be reproduced 12 Lawson Products: Poised for Growth • Recent Foundational Investments • Operational Excellence • Leverage Current Infrastructure • Continued Sales Force Expansion • Large Fragmented Market
Slide 13: For More Information Contact
This presentation is the property of Lawson Products, Inc. and may not be reproduced 13 For More Information Contact: Ronald J. Knutson EVP, CFO Investor Relations (773) 304-5665 ron.knutson@lawsonproducts.com And see our Website at http://www.lawsonproducts.com/company-info/investor-relations.jsp L
Slide 14: Appendices
This presentation is the property of Lawson Products, Inc. and may not be reproduced 14 Appendices
Slide 15: Significant Foundational Activities
This presentation is the property of Lawson Products, Inc. and may not be reproduced 15 Significant Foundational Activities August 2011 Implemented SAP October 2011 Commenced construction of new McCook, Ill distribution center May 2012 Relocated corporate headquarters June 2012 Announced $20M in
Slide 16: Regulation G – GAAP Reconciliation
This presentation is the property of Lawson Products, Inc. and may not be reproduced 16 Regulation G – GAAP Reconciliation Non GAAP Reconciliation of Adjusted EBITDA to Sales Percentage The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP).
Slide 17: Quarterly Results
This presentation is the property of Lawson Products, Inc. and may not be reproduced 17 Quarterly Results Appendix P-3 (Dollars in thousands) Three Months Ended Sep. 30, 2014 Jun. 30, 2014 Mar. 31, 2014 Dec. 31, 2013 Sep. 30, 2013 Jun. 30, 2013 Mar. 30, 2013 Number of business days 64 64 63 61 64 64
Slide 18: 2014 Consolidated Balance Sheet
This presentation is the property of Lawson Products, Inc. and may not be reproduced 18 2014 Consolidated Balance Sheet Appendix P-4 September 30, 2014 December 31, 2013 ASSETS (Unaudited) Current assets: Cash and cash equivalents $ 1,078 $ 698 Restricted cash 800 800 Accounts receivable, less allow
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