Distribution Solutions Group, Inc. · NASDAQ:DSGR
Distribution Solutions — Lawson Products Inc/New — Q1 2021 Earnings Presentation
20 slides from Distribution Solutions's earnings presentation, May 18, 2021
Slide 1: Investor Presentation First Quarter 2021
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. Investor Presentation First Quarter 2021 Presenters: Michael DeCata, President & CEO Ronald Knutson, EVP & CFO
Slide 2: Safe Harbor Statement
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. "Safe Harbor" Statement under the Securities Litigation Reform Act of 1995: This presentation contains certain forward-looking statements within the meaning of the Private Securiti
Slide 3: Lawson Products: At a Glance
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. • Leading service based provider of consumables in MRO market • Serves industrial, commercial, institutional and government markets in all 50 states, Canada, Mexico, Puerto Rico an
Slide 4: Competitive Advantages and Differentiators
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. 4 Competitive Advantages and Differentiators What differentiates Lawson: • Service intensive “high touch” value proposition • Vendor managed inventory or “keep fill” • Deep product
Slide 5: Our Commitment to our 90,000+ Customers
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. High touch service and technical expertise drives customer relationships 5 Our Commitment to our 90,000+ Customers Before After One Company, Zero Headaches Inventory Management Opt
Slide 6: Customer and Product Profile
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. 6 Customer and Product Profile Retain over 90% of customer revenues from year to year Fastening Systems 23%Fluid Power 13% Specialty Chemicals 12% Cutting Tools and Abrasives 15% E
Slide 7: Partsmaster Acquisition
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. 7 Partsmaster Acquisition What adds to • Very good strategic fit Similar high touch, consumable MRO provider High quality VMI service to customers Diverse, complimentary prod
Slide 8: COVID-19 Impact
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. • Safety of our team members • Significant cost reductions to protect earnings and cash position • Support and retention of team members • Strong leadership-commitment to coming ou
Slide 9: Financial Highlights for First Quarter 2021
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. 9 Financial Highlights for First Quarter 2021 • Sales increased 13.8% compared to Q1 2020 and 5.6% compared to Q4 2020 • Includes $15.7 million from Partsmaster acquisition • MRO s
Slide 10: Historical Financial Performance
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. 10 Historical Financial Performance Recent sales growth and earnings expansion providing financial flexibility $200,000 $250,000 $300,000 $350,000 $400,000 Consolidated Revenues $0
Slide 11: Capital Allocation: M&A, Reinvest, Return Capital
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. Pursue Disciplined M&A Reinvest for Growth Return Capital • Increased our borrowing capacity to $100.0 million (additional $50.0 million accordion) in late 2019 • Capital expenditu
Slide 12: Lawson Growth Strategy
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. 12 Lawson Growth Strategy Sales Growth Driven By Foundational Support ERP Network Optimization Sales Transformation Lean Six Sigma Website New Sales Reps Sales Rep Productivity Acq
Slide 13: 2021 Focus: Actions Across the Value Chain
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. 13 2021 Focus: Actions Across the Value Chain Driving Growth Add New Sales Reps and Drive Rep Productivity Sales Process / Sales Reps Customer Service / Order Entry Product Managem
Slide 14: Longer Sales Rep Tenure Drives Rep Productivity
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. 14 Longer Sales Rep Tenure Drives Rep Productivity $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 < 12 Mos. 1 - 2 Yrs. 3 - 5 Yrs. 5 - 10 Yrs. >
Slide 15: Lawson Products: Poised for Growth
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. 15 Lawson Products: Poised for Growth • Leverage Current Infrastructure • Continued Sales Growth • Foundational Investments Completed • Operational Excellence • Large Fragmented Ma
Slide 16: For More Information Contact
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. 16 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/co
Slide 17: Appendices
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. Appendices 17
Slide 18: Significant Activities
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. 18 Significant Activities Appendix P-1 August 2011 Implemented SAP October 2011 Commenced construction of new McCook, Ill distribution center May 2012 Relocated corporate headqu
Slide 19: Regulation G – GAAP Reconciliation
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. 19 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.
Slide 20: Consolidated Balance Sheet
© 2021 Lawson Products, Inc. All rights reserved. Confidential Material, Reproduction, In Whole or in Part, Prohibited. 20 Consolidated Balance Sheet Appendix P-3
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