Distribution Solutions Group, Inc. · NASDAQ:DSGR
Distribution Solutions — Lawson Products Inc/New — Investor Presentation (May 2015)
18 slides from Distribution Solutions's investor presentation, May 13, 2015
Slide 1: Investor Presentation May 2015
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Investor Presentation May 2015
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 • Leading service based provider of consumables in MRO market • Serves industrial, commercial, institutional and government markets in all 50 states, Canada, Mexico, Puer
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. Regional Accounts 61% Strategic 14% Kent Automotive 17% Government 6% Other (1) 2% Customer Mix Fasteners 20% Fluid Power 16% Specialy Chemicals 14% Cutting Tools and Abrasives 14% Electrical 12% Aft
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 Selective Acqui
Slide 8: 2015 Focus: Actions Across the Value Chain
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. 2015 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 $500 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
Slide 10: Financial Highlights
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Financial Highlights • Focused on revenue growth - Number of sales reps and sales rep productivity • Ended Q1 2015 with 917 sales reps, up 10% from Q1 2014 - Added 81 net additional sales reps in YOY
Slide 11: Financial Highlights – Sales Trends
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Financial Highlights – Sales Trends •Correlation between sales levels and sales rep count •Sales rep count to increase to approximately 1,000 by 2015 year- end •New sales reps will impact productivit
Slide 12: Lawson Products: Poised for Growth
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Lawson Products: Poised for Growth • Recent Foundational Investments • Operational Excellence • Leverage Current Infrastructure • Continued Sales Force Expansion • Large Fragmented Market 12
Slide 13: 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 14: Appendices
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Appendices 14
Slide 15: Significant Foundational Activities
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Significant Foundational Activities Appendix P-1 August 2011 Implemented SAP October 2011 Commenced construction of new McCook, Ill distribution center May 2012 Relocated corporate headquarters Ju
Slide 16: 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 17: Quarterly Results
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Quarterly Results Appendix P-3 17 (Dollars in thousands) Three Months Ended Mar. 31, 2015 Dec. 31, 2014 Sep. 30, 2014 Jun. 30, 2014 Mar. 31, 2014 Number of business days 63 61 64 64 63 Average daily
Slide 18: Consolidated Balance Sheet
© 2015 Lawson Products, Inc. • Confidential Material, Reproduction, In Whole or in Part, Prohibited. Consolidated Balance Sheet Appendix P-4 18 March 31, 2015 December 31, 2014 ASSETS (Unaudited) Current assets: Cash and cash equivalents $ 1,990 $ 4,207 Restricted cash 800 800 Accounts receivable, l
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