Distribution Solutions Group, Inc. · NASDAQ:DSGR
Distribution Solutions — Lawson Products Inc/New — Investor Presentation (June 2017)
17 slides from Distribution Solutions's investor presentation, Jun 1, 2017
Slide 1: Investor Presentation May 2017
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Investor Presentation May 2017
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 Fasteners Cutting Tools Chemicals Hydraulics Other • Leading service based provider of consumables in MRO market • Serves industrial, commercial, institutional and govern
Slide 4: Competitive Advantages and Differentiators
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Competitive Advantages and Differentiators What differentiates Lawson: • Service intensive ―high touch‖ value proposition • Vendor managed inventory or ―keep fill‖ • Deep product knowledge • Broad ge
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. Customer and Product Profile (1) Other consists primarily of freight revenue offset by rebates Fastening Systems 21% Fluid Power 15% Specialty Chemicals 14% Cutting Tools and Abrasives 14% Electrical
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 Acquisitions
Slide 8: 2017 Focus: Actions Across the Value Chain
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. 2017 Focus: Actions Across the Value Chain Driving Growth Information Technology – Integration of Web and SAP Lean Six Sigma Add New Sales Reps and Drive Rep Productivity Sales Process / Sales Reps C
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 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 0 50 100 150 200 250 300 350 400 < 12 Mos. 1 - 2 Yrs. 3 - 5 Yrs. 5 -
Slide 10: Financial Highlights for First Quarter 2017
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Financial Highlights for First Quarter 2017 • Sales increased 7.0% YOY • Strong gross margins – Consistently over 60% • Adjusted EBITDA margin improving 3.8% in Q1 2017 v. 3.4% in Q1 2016 and 3.1%
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
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
Slide 14: Significant Activities
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Significant Activities Appendix P-1 August 2011 Implemented SAP October 2011 Commenced construction of new McCook, Ill distribution center May 2012 Relocated corporate headquarters June 2012 Rest
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 (Dollars in thousands) Three Months Ended Mar. 31, 2017 Dec. 31, 2016 Sep. 30, 2016 Jun. 30, 2016 Mar. 31, 2016 Number of business days 64 60 64 64 64 Average daily net
Slide 17: Consolidated Balance Sheet
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Appendix P-4 Consolidated Balance Sheet March 31, December 31, 2017 2016 ASSETS Current assets: Cash and cash equivalents $ 7,973 $ 10,421 Restricted cash 800 800 Accounts receivable, less allowance
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