Distribution Solutions Group, Inc. · NASDAQ:DSGR
Distribution Solutions — Q1 2025 Earnings Presentation
16 slides from Distribution Solutions's earnings presentation, May 1, 2025
Slide 1: Q1 2025 Financial Results
NASDAQ: DSGR Q1 2025 Financial Results May 1, 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 • 2025 Q1 Consolidated Highlights & Financial Results • Segment Highlights & Financial Results • Q&A Change in Reportable Segments: In the third quarter of 20
Slide 4: 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 5: 2025 Consolidated Financial Highlights
2025 Consolidated Financial Highlights • Q1 revenue of $478M; up $62M or 14.9% over a year ago primarily from five acquisitions closed in 2024; down 0.5% sequentially over Q4. Organic average daily sales grew 4.3% (4.7% on a constant currency basis) over a year ago. • Q1 adjusted EBITDA of $42.8M or
Slide 6: Lawson Products – MRO Focus
Lawson Products – MRO Focus Q1 2025 Highlights: Revenue (in millions) • Q1 average daily sales (ADS) up 1.9% over year-ago quarter and $118.2 $120.5 $111.8 4.3% sequentially over Q4 2024. S&S acquisition contributed $10.4M of revenue in Q1. Organic ADS down ~6.8% over prior year due to decline in mi
Slide 7: Canada Branch Division – Canadian MRO Focus
Canada Branch Division – Canadian MRO Focus Q1 2025 Highlights: Revenue (in millions) • Q1 revenue up over year-ago quarter driven by the Source $59.0 Atlantic acquisition which contributed $37.4M of sales in Q1. $50.5 Excluding Source Atlantic, revenue up $0.7M or 5.3% (~13% on a constant currency
Slide 8: Gexpro Services – OEM Focus
Gexpro Services – OEM Focus Q1 2025 Highlights: Revenue (in millions) • Q1 organic revenue up $19.1M or 19.4% from year-ago quarter $118.8 $118.9 on 2 fewer days; organic average daily sales (ADS) up 23.3% $98.7 from year-ago quarter and 4.6% sequentially. Q1 acquired revenue of $1.1M from TCR close
Slide 9: TestEquity – Industrial Technologies Focus
TestEquity – Industrial Technologies Focus Q1 2025 Highlights: Revenue (in millions) • Q1 average daily sales (ADS) up 2.5% from year-ago quarter; down 4.5% sequentially on softer test & measurement sales. Q1 $187.1 $191.3 $188.8 acquired revenue of $1.9M from ConRes closed in Q4 2024. • Key operati
Slide 10: Capital Allocation Strategy
Capital Allocation Strategy Focus on Deleveraging via Return Capital to Organic Growth M&A Robust Net Working Capital Earnings Growth and Free Cash Flow Shareholders Investment Generation • Adding scale, $495.6M 3.6x • Authorized $37.5M • Market share share repurchase growth footprint, product progr
Slide 11: Appendix
5SG DISTRIBUTION 2 SOLUTIONS GROUP_/“ Appendix 11
Slide 12: 2025 Consolidated Financial Highlights
2025 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 Q1 2024-Q1 2025 period. Adjusted Revenue (i
Slide 13: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Q1 Revenue and Adjusted EBITDA Reconciliation ($000s) (Unaudited) Canada Branch Lawson Products Gexpro Services TestEquity Division All Other Eliminations Consolidated DSG Quarter Ended Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q
Slide 14: 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 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Revenue $ 416,086 $ 439,536 $ 468,019 $ 480,463 $ 478,029 Pre-acqui
Slide 15: 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 16: 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 Q1 2025 Q1 2024 Q4 2024 Diluted Diluted Diluted Amount EPS(2) Amount EPS(2) Amount
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