Distribution Solutions Group, Inc. · NASDAQ:DSGR
Distribution Solutions — Lawson Products Inc/New — Investor Presentation (August 2014)
19 slides from Distribution Solutions's investor presentation, Aug 15, 2014
Slide 1: Investor Presentation August 2014
This presentation is the property of Lawson Products, Inc. and may not be reproduced 1 Investor Presentation August 2014
Slide 2: Forward-Looking Statements
This presentation is the property of Lawson Products, Inc. and may not be reproduced 2 Forward-Looking Statements "Safe Harbor" Statement under the Securities Litigation Reform Act of 1995: This presentation contains certain forward-looking statements within the meaning of the Private Securities Lit
Slide 3: Lawson Products: At a Glance
This presentation is the property of Lawson Products, Inc. and may not be reproduced 3 Lawson Products: At a Glance • Leading service based provider of consumables in MRO market • Founded in 1952; listed on NASDAQ (LAWS) since 1970 • Serves industrial, commercial, institutional and government market
Slide 4: Sales Coverage and Distribution Reach Across North America
This presentation is the property of Lawson Products, Inc. and may not be reproduced 4 Legend: Sales Penetration Distribution Center Chicago, IL (HQ) Sales Coverage and Distribution Reach Across North America; Distribution Centers: McCook, IL Fairfield, NJ Reno, NV Suwanee, GA Mississauga, ON (Canad
Slide 5: Competitive Advantages and Differentiators
This presentation is the property of Lawson Products, Inc. and may not be reproduced 5 Lawson Products: Competitive Advantages and Differentiators What differentiates Lawson: • Service intensive “high touch” value proposition • Vendor managed inventory or “keep fill” • Deep product knowledge • Broad
Slide 6: One Company, Zero Headaches
This presentation is the property of Lawson Products, Inc. and may not be reproduced 6 One Company, Zero Headaches Inventory Management Options Access to Industry Knowledge & Expertise • Approximately 300,000 products • Lawson Managed Inventory • Product recommendations from your Lawson Representati
Slide 7: Recent Investments Lead To:
This presentation is the property of Lawson Products, Inc. and may not be reproduced 7 Recent Investments Lead To: Investment Benefits ERP • Platform for growth • Easier ordering • Improved customer service •Data consistency • Centralized market-based pricing • Enables new E Commerce Site Network Op
Slide 8: 2014 Focus: Actions Across the Value Chain Driving Growth
This presentation is the property of Lawson Products, Inc. and may not be reproduced 8 2014 Focus: Actions Across the Value Chain Driving Growth Sales Process / Sales Reps Customer Service / Order Entry Product Management / Pricing DC Operations Sourcing / Purchasing • Increase sales rep count • Sal
Slide 9: Financial Highlights
This presentation is the property of Lawson Products, Inc. and may not be reproduced 9 Financial Highlights •Focused on revenue growth Number of sales reps and sales rep productivity •Ended Q2 2014 with 878 sales reps, up 14% from Q2 2013 –Added 72 net additional sales reps in 2014 •Strong balance
Slide 10: Financial Highlights – Sales Trends
This presentation is the property of Lawson Products, Inc. and may not be reproduced 10 Financial Highlights – Sales Trends • Added net 49 sales reps in 2013; added net 72 in 2014 year to date •Will continue to aggressively add to the sales team in 2014 including Business Development Managers, Sales
Slide 11: Financial Highlights – Gross Margin & Cost Controls
This presentation is the property of Lawson Products, Inc. and may not be reproduced 11 (1) Q2 2012 includes a $3.9M charge for discontinuing certain stocked products (2) Q3 and Q4 2012 benefited from sell through of discontinued product at better than anticipated pricing (3) Increase over Q1 2012 d
Slide 12: Financial Highlights – Adjusted EBITDA
This presentation is the property of Lawson Products, Inc. and may not be reproduced 12 Financial Highlights – Adjusted EBITDA Adjusted EBITDA excludes non-recurring costs, severance, stock based compensation and gains on disposal of properties - See Regulation G Non-GAAP reconciliation in appendix
Slide 13: Lawson Products: Poised for Growth
This presentation is the property of Lawson Products, Inc. and may not be reproduced 13 Lawson Products: Poised for Growth Established presence in service segment of large MRO marketplace Diversified products, customers and markets Strong leadership team Infrastructure now in place (McCook D
Slide 14: For More Information Contact
This presentation is the property of Lawson Products, Inc. and may not be reproduced 14 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-relations.jsp L
Slide 15: Appendices
This presentation is the property of Lawson Products, Inc. and may not be reproduced 15 Appendices
Slide 16: Significant Foundational Activities
This presentation is the property of Lawson Products, Inc. and may not be reproduced 16 Significant Foundational Activities August 2011 Implemented SAP October 2011 Commenced construction of new McCook, IL distribution center May 2012 Relocated corporate headquarters June 2012 Announced $20M in
Slide 17: Regulation G – GAAP Reconciliation
This presentation is the property of Lawson Products, Inc. and may not be reproduced 17 Regulation G – GAAP Reconciliation Non GAAP Reconciliation of Adjusted EBITDA to Sales Percentage The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP).
Slide 18: Quarterly Results
This presentation is the property of Lawson Products, Inc. and may not be reproduced 18 Quarterly Results Appendix P-3 ($ in thousands) Jun. 30, 2014 Mar. 31, 2014 Dec. 31, 2013 Sep. 30, 2013 Jun. 30, 2013 Number of business days 64 63 61 64 64 Average daily net sales $ 1,126 $ 1,098 $ 1,078 $ 1,066
Slide 19: 2014 Consolidated Balance Sheet
This presentation is the property of Lawson Products, Inc. and may not be reproduced 19 2014 Consolidated Balance Sheet Appendix P-4 ASSETS Current assets: Cash and cash equivalents $ 1,589 Restricted cash Accounts receivable, less allowance for doubtful accounts Inventories, net Miscellaneous recei
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