Distribution Solutions Group, Inc. · NASDAQ:DSGR
Distribution Solutions — Q4 2024 Earnings Presentation
19 slides from Distribution Solutions's earnings presentation, Mar 6, 2025
Slide 1: 2024 Financial Results
NASDAQ: DSGR 2024 Financial Results March 6, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement Cautionary Note Regarding Forward-Looking Statements This presentation 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
Slide 3: Earnings Call Agenda
Earnings Call Agenda Today’s Conference Call Will Discuss Results Primarily on an Adjusted (Non-GAAP) and Comparable Operations Basis. Agenda • 2024 Full Year and Q4 Consolidated Highlights & Financial Results • Segment Highlights & Financial Results • Q&A Change in Reportable Segments: In the third
Slide 4: 2024 Full Year and Q4 Commentary
2024 Full Year and Q4 Commentary • Full year revenue was $1.8B, an increase of 14.9% or $234M, primarily from 2023 and 2024 acquisitions. • Full year adjusted EBITDA grew to $175M or 9.7% of sales compared to $157 million or 10.0% of revenue in the prior year. • Q4 revenue was $480M, an increase of
Slide 5: Leading Specialty Industrial Distribution Platform
Leading Specialty Industrial Distribution Platform MRO Focus OEM Focus Industrial Technologies Focus VMI Focus Canadian Branch Focus Leading vendor managed Leading wholesale distributor of Leading global supply chain services Leading supplier of electronic and inventory provider of C-parts to MRO su
Slide 6: 2024 Consolidated Financial Highlights
2024 Consolidated Financial Highlights • Q4 revenue of $480.5M; up $75.2M or 18.6% over a year ago and 2.7% sequentially over Q3 primarily from five acquisitions closed in 2024. Organic sales grew 3.5% over a year ago. • Q4 adjusted EBITDA of $44.9M or 9.3% of sales compared to $33.9M or 8.4% in the
Slide 7: Lawson Products – MRO Focus
Lawson Products – MRO Focus 2024 Highlights: Year-to-Date Adjusted EBITDA Revenue • 2024 impacted by early stages of sales transformation. Average rep count (in millions) (in millions) during 2024 down ~80 reps vs. 2023 as evolution of sales rep enhancements $468.7 $469.0 $63.7 and customer/channel
Slide 8: Canada Branch Division – Canadian MRO Focus
Canada Branch Division – Canadian MRO Focus 2024 Highlights: Year-to-Date Adjusted EBITDA Revenue • Revenue up sequentially and over prior year driven by the Source (in millions) (in millions) Atlantic acquisition which contributed $70.3M of sales in 2024 and $125.1 $45.6M in Q4. Excluding Source At
Slide 9: Gexpro Services – OEM Focus
Gexpro Services – OEM Focus 2024 Highlights: Year-to-Date Adjusted EBITDA Revenue • Revenue +8.6% or $35.0M YTD. Q4 revenue up 27.4% or $25.6M (in millions) (in millions) primarily from organic growth with +$0.6M of acquired revenue. $405.7 $440.7 Organic average daily sales up ~23% on significant i
Slide 10: TestEquity – Industrial Technologies Focus
TestEquity – Industrial Technologies Focus Year-to-Date 2024 Highlights: Adjusted EBITDA Revenue (in millions) (in millions) • YTD revenue +20.2% or $129.4M; primarily driven by 2023 and 2024 acquisitions. YTD organic revenue down 6.8% or $28.0M primarily $56.3 $771.2 driven by slowdown in the elect
Slide 11: Capital Allocation
Capital Allocation Robust Net Working Capital Focus on Deleveraging via Earnings Growth and Free Cash Flow Total Liquidity Investment Generation $473.3M 3.6x Leverage(1) at April 1, 2022 Merger Close ~$335M Accounts $250.7M Receivable $348.2M Inventory ò 3.5x $(125.6)M Accounts Payable Leverage(1) a
Slide 12: 2024 Year in Review
2024 Year in Review Demonstrated our ability to execute strategic goals; completed 5 acquisitions, expanded revenues, margins, and generated significant operating cash flow • Accelerated growth through a disciplined execution of our M&A playbook ◦ Deployed capital of approximately $216 million compl
Slide 13: Appendix
5SG DISTRIBUTION 2 SOLUTIONS GROUP_/“ Appendix 13
Slide 14: 2024 Consolidated Financial Highlights
2024 Consolidated Financial Highlights Results Inclusive of Pre-Acquisition Results • Adjusted Revenue and adjusted EBITDA below include the reported GAAP results and the pre-acquisition results of other businesses that were acquired at any time during the Q4 2023-Q4 2024 period. Adjusted Revenue (i
Slide 15: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Q4 Revenue and Adjusted EBITDA Reconciliation ($000s) (Unaudited) Canada Branch Lawson Products Gexpro Services TestEquity Division All Other Eliminations Consolidated DSG Quarter Ended Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q
Slide 16: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Fiscal Year Revenue and Adjusted EBITDA Reconciliation ($000s) (Unaudited) Canada Branch Lawson Products Gexpro Services TestEquity Division Other Eliminations Consolidated DSG Year Ended 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Revenue f
Slide 17: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Adjusted Revenue and Adjusted EBITDA Reconciliation ($000s) Results Inclusive of Acquisitions – Pre-Acquisition Date (Unaudited) Consolidated DSG Quarter Ended Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Revenue $ 405,239 $ 416,086 $ 439,536 $ 468,019 $ 480,463 Pre-acqui
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Adjusted Revenue and EBITDA Reconciliation – Table Footnotes (1) Represents additional revenue and operating income of acquisitions prior to their acquisition dates not in reported GAAP results. (2) Transaction and integration costs related to acquisitions. (3) Expen
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations GAAP Net Income (Loss) and GAAP Diluted EPS to Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted EPS Reconciliation ($000s, except per share data) (Unaudited) Consolidated DSG (3),(4) Q4 2024 Q4 2023 Q3 2024 Full Year 2024 Full Year 2023(4) Diluted Diluted D
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