Distribution Solutions Group, Inc. · NASDAQ:DSGR
Distribution Solutions — Lawson Products Inc/New — Investor Presentation (March 2014)
20 slides from Distribution Solutions's investor presentation, Mar 10, 2014
Slide 1: Investor Presentation March 2014
This presentation is the property of Lawson Products, Inc. and may not be reproduced 1 Investor Presentation March 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 Investment Highlights
This presentation is the property of Lawson Products, Inc. and may not be reproduced 3 Lawson Investment Highlights Established presence in service segment of large MRO marketplace Diversified products, customers and markets Strong leadership team Infrastructure now in place (McCook DC, ERP,
Slide 4: Lawson Products: At a Glance
This presentation is the property of Lawson Products, Inc. and may not be reproduced 4 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 5: Lawson Products: At a Glance – Sales Coverage and Distribution Reach
This presentation is the property of Lawson Products, Inc. and may not be reproduced 5 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 6: Competitive Advantages and Differentiators
This presentation is the property of Lawson Products, Inc. and may not be reproduced 6 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 7: One Company, Zero Headaches
This presentation is the property of Lawson Products, Inc. and may not be reproduced 7 One Company, Zero Headaches Inventory Management Options Access to Industry Knowledge & Expertise • More than 300,000 products • Lawson Managed Inventory • Product recommendations from your Lawson Representative •
Slide 8: Recent Investments Lead To Investment Benefits
This presentation is the property of Lawson Products, Inc. and may not be reproduced 8 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 9: 2014 Focus: Actions Across the Value Chain Driving Growth
This presentation is the property of Lawson Products, Inc. and may not be reproduced 9 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 10: Financial Highlights
This presentation is the property of Lawson Products, Inc. and may not be reproduced 10 Financial Highlights •Focused on revenue growth Number of sales reps and sales rep productivity •Ended 2013 with over 800 sales reps, up over 6% from January 1, 2013 •2012 Actions benefited 2013 – $20M of cost
Slide 11: Financial Highlights – Sales Trends
This presentation is the property of Lawson Products, Inc. and may not be reproduced 11 Financial Highlights – Sales Trends • Added net 49 sales reps in 2013 •Will aggressively add the sales team in 2014 including Business Development Managers, Sales Service Reps, District Managers and Sales Reps in
Slide 12: Financial Highlights – Gross Margin & Cost Controls
This presentation is the property of Lawson Products, Inc. and may not be reproduced 12 (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 13: Financial Highlights – Adjusted EBITDA
This presentation is the property of Lawson Products, Inc. and may not be reproduced 13 Financial Highlights – Adjusted EBITDA In October the Company entered into an Asset Purchase Agreement to sell substantially all of the net assets of its Automatic Screw Machine Products subsidiary and as a resul
Slide 14: Lawson Products: Poised for Growth
This presentation is the property of Lawson Products, Inc. and may not be reproduced 14 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 15: For More Information Contact
This presentation is the property of Lawson Products, Inc. and may not be reproduced 15 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 16: Appendices
This presentation is the property of Lawson Products, Inc. and may not be reproduced 16 Appendices
Slide 17: Significant Foundational Activities
This presentation is the property of Lawson Products, Inc. and may not be reproduced 17 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 $20M in
Slide 18: Regulation G – GAAP Reconciliation
This presentation is the property of Lawson Products, Inc. and may not be reproduced 18 Regulation G – GAAP Reconciliation Non GAAP Reconciliation of Adjusted EBITDA to Sales Percentage The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP).
Slide 19: Quarterly Results
This presentation is the property of Lawson Products, Inc. and may not be reproduced 19 Quarterly Results Appendix P-3 ($ in thousands) Number of business days Average daily net sales $ 1,078 $ 1,066 $ 1,067 $ 1,067 $ 1,057 Sequential quarter increase (decrease) Average active sales rep. count Perio
Slide 20: 2013 Consolidated Balance Sheet
This presentation is the property of Lawson Products, Inc. and may not be reproduced 20 2013 Consolidated Balance Sheet Appendix P-4 ($ in thousands) ASSETS Current assets: Cash and cash equivalents $ 698 Restricted cash Accounts receivable, less allowance for doubtful accounts Inventories, net Misc
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