Distribution Solutions Group, Inc. · NASDAQ:DSGR
Distribution Solutions — Lawson Products Inc/New — Investor Presentation (March 2016)
17 slides from Distribution Solutions's investor presentation, Mar 16, 2016
Slide 1: Investor Presentation March 2016
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Investor Presentation March 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 Regional Accounts 61% Strategic 14% Kent Automotive 17% Government 6% Other (1) 1% Customer Mix Fasten
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 “DNA” Acquisiti
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 Manage
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 $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
Slide 10: Financial Highlights for Full Year 2015
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Financial Highlights for Full Year 2015 • Ended 2015 with 937 sales reps, up net 21 from 2014 • Significant improvement in cash generated from operations $9.3 million in 2015 vs. $2.3 million in 20
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 Foundational Activities
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Significant Foundational Activities Appendix P-1 14 August 2011 Implemented SAP October 2011 Commenced construction of new McCook, Ill distribution center May 2012 Relocated corporate headquarters
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 Dec. 31, 2015 Sep. 30, 2015 Jun. 30, 2015 Mar. 31, 2015 Dec. 31, 2014 Number of business days 61 64 64 63 61 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 December 31, 2015 December 31, 2014 ASSETS Current assets: Cash and cash equivalents $ 10,765 $ 4,207 Restricted cash 800 800 Accounts receivable, less allo
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