NASDAQ$DSGR

Distribution Solutions Group Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Lawson Products announced results, revealing a decrease in sales due to the economic impact of COVID-19, while maintaining a steady gross margin and a positive cash position.

Lawson Products reported a decrease in net sales by 24.9% year-over-year due to the COVID-19 pandemic. However, the company maintained a steady gross margin of 53.1% and achieved net cash generated from operations of $14.7 million. The company ended the quarter with $8.3 million in a positive cash position, net of debt.

  • Sales decreased 24.9% year-over-year, but showed sequential improvement in May and June.
  • Gross margin remained steady at 53.1%, despite a shift in sales mix.
  • Net cash from operations was $14.7 million, with a focus on preserving cash.
  • The company had a positive cash position of $8.3 million, net of debt, and $97.3 million available under its credit facility.

Headline financials

Total Revenue

$72.1M

Previous: $96.1M-24.9%
EPS (adj)

$0.37

Previous: $0.62-40.3%
Adj. EBITDA Margin

8.7%

Previous: 9.8%-11.2%
Capital Expenditures

-$720K

Previous: -$944K+23.7%
Free Cash Flow

-$101K

Previous: $363K-127.8%
Net Income

$619K

Previous: $1.31M-52.6%
Operating Income

$569K

Previous: $1.62M-64.9%
Gross Profit

$38.3M

Previous: $51M-24.9%
Cash & Equivalents

$10M

Previous: $6.92M+44.8%
Total Assets

$196M

Previous: $209M-6.4%

Revenue & EPS history

DSG · Revenue · Quarterly

$72.1M

Q2 2020-24.9%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

DSG · $425M total across 3 segments · Q3 2023

  • TestEquity
    $208M+77.9%
  • Lawson Products
    $114M+4.6%
  • Gexpro Services
    $103M-0.5%

Forward guidance

Lawson is focused on improving sales to leverage its streamlined cost structure and expand operating margins. The company believes the actions taken will position it for solid growth, and it will be opportunistic in utilizing its strong balance sheet and cash position for accretive acquisitions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.6%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.8%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+28.1%

Q2 2015

Best reaction

-26.3%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%+3.9%+0.0%
Q4 2025-26.3%-29.6%-10.4%
Q3 2025-6.3%-9.9%-6.7%
Q1 2025-7.0%-7.2%+4.6%
Q4 2024+9.9%+10.1%-7.5%
Q3 2024-11.1%-12.7%-2.8%
Q2 2024-2.6%-1.4%+10.3%
Q1 2024+6.7%+10.3%+3.3%
Q4 2023-1.1%-1.7%+14.8%
Q3 2023-19.5%-20.4%-12.8%
Q2 2023-2.6%-8.6%-8.2%
Q1 2023+5.8%+1.5%+9.2%
Q4 2022-12.8%-10.2%-14.1%
Q3 2022+18.7%+28.5%+21.0%
Q2 2022+0.7%+0.2%-26.4%
Q1 2022+2.7%+6.2%+4.5%
Q4 2021+0.1%-7.9%-15.8%
Q3 2021+1.0%+3.1%-0.4%
Q2 2021-1.4%-1.4%-0.2%
Q1 2021+0.9%+2.9%+16.5%
Q4 2020+1.9%+5.8%-0.3%
Q3 2020-0.3%+9.8%+17.8%
Q2 2020+0.8%+6.7%+18.2%
Q1 2020-3.9%-5.0%-8.7%
Q4 2019-2.5%-2.2%-34.1%
Q3 2019+6.4%+7.3%+11.0%
Q2 2019+5.1%+5.8%-7.2%
Q1 2019+3.6%+4.0%+24.7%
Q4 2018+5.1%+4.6%+7.4%
Q3 2018+2.3%+8.8%+2.0%
Q2 2018+13.2%+15.1%+36.6%
Q1 2018-2.4%-5.0%-1.8%
Q4 2017-1.8%-0.6%+10.3%
Q3 2017-4.4%-2.1%-1.4%
Q2 2017+13.5%+13.0%+13.8%
Q1 2017+2.4%+9.3%-6.0%
Q4 2016+3.1%+8.6%-11.0%
Q3 2016+13.1%+13.5%+37.2%
Q2 2016-4.0%-13.8%-17.8%
Q1 2016-3.9%
Q4 2015-9.0%
Q3 2015+10.5%
Q2 2015+28.1%
Q1 2015+2.0%
Q4 2014-1.4%
Q3 2014+19.0%
Q2 2014+7.1%
Q1 2014-2.0%
Q4 2013-5.8%
Q3 2013+6.0%
Q2 2013-5.4%
Q1 2013-0.3%
Q4 2012+11.3%
Q3 2012-2.1%
Q2 2012-0.8%
Q1 2011-3.0%
Q1 2012+1.2%
Q4 2011+1.3%
Q3 2011-6.0%
Q3 2010-6.0%
Q4 2009-1.8%
Q2 2011-1.8%
Q2 2010-1.8%
Q4 2010-1.8%
Q1 2010+0.0%

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