Slide 1: Q2 2022 Financial Results
NASDAQ: DSGR Q2 2022 Financial Results August 9, 2022
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Cautionary Note Regarding Forward-Looking Statements This investor deck contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and un
Slide 3: Reverse Merger Accounting/Reg G
REVERSE MERGER ACCOUNTING/REG G Today’s Conference Call Will Discuss Results Primarily on an Adjusted (Non-GAAP) and Comparable Operations Basis. The complexities of Reverse Merger Accounting treatment makes GAAP comparisons difficult. GAAP results reported under Reverse Merger Accounting: • Combine
Slide 4: Earnings Call Agenda
EARNINGS CALL AGENDA • Q2 2022 Consolidated Highlights & Financial Results • Segment Highlights & Financial Results • Q&A 4
Slide 5: Q2 2022 Summary
Q2 2022 SUMMARY • Segment reporting structure: Lawson Products, Gexpro Services, TestEquity & Other (primarily Bolt Supply & unallocated costs) • Strong topline and bottom-line results across the three principal operating companies • Combined sales growth of 34%; organic sales growth of nearly 12%;
Slide 6: Q2 2022 Consolidated Financial Highlights
Q2 2022 CONSOLIDATED FINANCIAL HIGHLIGHTS • Sales of $321M, an increase of $80.6M or +34%; acquired sales of $52.3M; organic growth of +11.8% • Adjusted EBITDA of $31.7M; up 58% • Adjusted EBITDA of 9.9% of sales – on pace to exit 2022 over 10% Adjusted Net Sales ($000s) Adjusted EBITDA ($000s) $321
Slide 7: Q2 Condensed Consolidated Balance Sheet
Q2 CONDENSED CONSOLIDATED BALANCE SHEET • Strong financial position; cash $000s position of $17.9M and Cash $ 17,872 $85.9M of availability under Current Assets 449,938 existing credit facility Long-term Assets 758,386 Total Assets $ 1,226,196 • Net debt leverage of 3.6x at 6/30/22 • Debt levels inc
Slide 8: Operating Company Detail
JSG DISTRIBUTION » SOLUTIONS GROUP“ ° Operating Company Detail PB wo Hem, GE testecuity
Slide 9: Lawson Products – MRO Focus
LAWSON PRODUCTS – MRO FOCUS Q2 2022 Highlights: Adjusted Net Sales ($000s) • Prior year Q2 2021 results are pre 4/1/22 $107,334 merger $94,861 • Sales +13%; all organic growth • Price increases in late 2021 and 2022 being realized • Ended June 30, 2022 with 1,013 sales reps. Q2 2021 Q2 2022 Sales pe
Slide 10: Gexpro Services – OEM Focus
GEXPRO SERVICES – OEM FOCUS Q2 2022 Highlights: Adjusted Net Sales ($000s) • Sales of $99.8M; up $33.5M or 50.5%; $99,792 organic growth of 6% $66,296 • Q2 2022 sales includes $29.5M incremental revenue from 2021 and 2022 acquisitions (Omni, NEF, SIS, Resolux, Frontier) • Strong demand continues acr
Slide 11: TestEquity – Industrial Technologies Focus
TESTEQUITY – INDUSTRIAL TECHNOLOGIES FOCUS Q2 2022 Highlights: Adjusted Net Sales ($000s) • Sales of $97.9M; up $30.0M or 44.2% • Q2 2022 sales includes $22.8M incremental $97,874 revenue from 2021 and 2022 acquisitions $67,856 (MCS, TEquipment and National Test Equip). Integration well underway • O
Slide 12: Summary
SUMMARY • Great start for the initial reporting period on a combined basis • Q2 results driven by both acquired sales and organic growth – aligns with growth strategy; combined 34% sales growth • Improvement in adjusted EBITDA to 9.9% of sales • On path to exit 2022 with adjusted EBITDA > 10% of sal
Slide 13: Appendix
JSG 2srReyrion » TIONS GROUP_“ = o-0 Appendix 13
Slide 14: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Adjusted Net Sales and EBITDA Reconciliation ($000s) Lawson Products Gexpro Services TestEquity Other Consolidated DSG Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 GAAP Net Sales $ 107,334 $ - $ 99,792 $ 66,296 $ 97,874 $ 67,856 $ 1