Distribution Solutions Group, Inc. · NASDAQ:DSGR
Distribution Solutions — Lawson Products Inc/New — Investor Presentation (November 2016)
17 slides from Distribution Solutions's investor presentation, Nov 10, 2016
Slide 1: Investor Presentation November 2016
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Investor Presentation November 2016
Slide 2: Safe Harbor Statement
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Lawson Products, Inc. "Safe Harbor" Statement under the Securities Litigation Reform Act of 1995: This presentation contains certain forward-looking statements within the meaning of the Private Secur
Slide 3: Lawson Products: At a Glance
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Lawson Products: At a Glance 3 • Leading service based provider of consumables in MRO market • Serves industrial, commercial, institutional and government markets in all 50 states, Canada, Mexico, Pu
Slide 4: Competitive Advantages and Differentiators
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Competitive Advantages and Differentiators “Not the Typical MRO Distributor” What differentiates Lawson: • Service intensive “high touch” value proposition • Vendor managed inventory or “keep fill” •
Slide 5: Our Commitment to our 70,000 Customers
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Our Commitment to our 70,000 Customers High touch service and technical expertise drives customer relationships One Company, Zero Headaches Inventory Management Options Access to Industry Knowledge &
Slide 6: Customer and Product Profile
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. (1) Other consists primarily of freight revenue offset by rebates Customer and Product Profile 6 Fastening Systems 21% Fluid Power 15% Specialty Chemicals 16% Cutting Tools and Abrasives 15% Electric
Slide 7: Lawson Growth Strategy
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Lawson Growth Strategy Sales Growth Driven By Foundational Support ERP Network Optimization Sales Transformation Lean Six Sigma Website Add New Sales Reps Drive Sales Rep Productivity Acquisitions 7
Slide 8: 2016 Focus: Actions Across the Value Chain
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. 2016 Focus: Actions Across the Value Chain Driving Growth Information Technology – Integration of Web and SAP Lean Six Sigma Sales Process / Sales Reps Customer Service / Order Entry Product Manageme
Slide 9: Longer Sales Rep Tenure Drives Rep Productivity
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Longer Sales Rep Tenure Drives Rep Productivity 9 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 0 50 100 150 200 250 300 350 400 < 12 Mos. 1 - 2 Yrs. 3 - 5 Yrs. 5
Slide 10: Financial Highlights for Third Quarter 2016
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Financial Highlights for Third Quarter 2016 • Ended Q3 2016 with 1,006 sales reps, up net 69 YTD • Continued expansion through acquisitions March 2016 Acquired Perfect Products Company of Michigan
Slide 11: Lawson Products: Poised for Growth
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Lawson Products: Poised for Growth • Foundational Investments Completed • Operational Excellence • Leverage Current Infrastructure • Continued Sales Force Expansion • Large Fragmented Market 11
Slide 12: For More Information Contact
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. 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-re
Slide 13: Appendices
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Appendices 13
Slide 14: Significant Activities
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Significant Activities Appendix P-1 14 August 2011 Implemented SAP October 2011 Commenced construction of new McCook, Ill distribution center May 2012 Relocated corporate headquarters June 2012 R
Slide 15: Regulation G – GAAP Reconciliation
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Regulation G – GAAP Reconciliation Appendix P-2 Non GAAP Reconciliation of Adjusted EBITDA to Sales Percentage The Company reports its financial results in accordance with U.S. generally accepted acc
Slide 16: Quarterly Results
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Quarterly Results Appendix P-3 16 (Dollars in thousands) Three Months Ended Sep. 30, 2016 Jun. 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sep. 30, 2015 Number of business days 64 64 64 61 64 Average daily
Slide 17: Consolidated Balance Sheet
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Consolidated Balance Sheet Appendix P-4 17 September 30, December 31, 2016 2015 ASSETS Current assets: Cash and cash equivalents $ 10,657 $ 10,765 Restricted cash 800 800 Accounts receivable, less al
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