NASDAQ$DSGR

Distribution Solutions Group Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Lawson Products' financial performance benefited from continuing recovery in customers' end markets, the inclusion of the 2020 Partsmaster acquisition, and ongoing operational investments.

Lawson Products reported a strong second quarter with sales reaching $107 million, driven by recovery in customer end markets, the Partsmaster acquisition, and operational investments. The company also successfully transitioned Partsmaster sales representatives to the Lawson platform.

  • Achieved second quarter sales of $106.5 million compared to $72.1 million in the prior year quarter and $103.6 million in the first quarter.
  • Reported operating income was $3.4 million in the second quarter of 2021 compared to $0.6 million in the second quarter of 2020.
  • Reported net income of $2.9 million for the quarter, or $0.31 per diluted share compared to $0.07 in the prior year quarter.
  • Ended the quarter with cash on hand, net of borrowings of $0.9 million and $91.9 million of availability under the credit facility after final payment in May 2021 of the $33.0 million accrued acquisition liability for Partsmaster.

Headline financials

Total Revenue

$107M

Previous: $72.1M+47.7%
EPS (adj)

$0.60

Previous: $0.37+62.2%
Adj. EBITDA Margin

8.3%

Previous: 8.7%-4.6%
Capital Expenditures

-$3.87M

Previous: -$720K-438.1%
Free Cash Flow

-$939K

Previous: -$101K-829.7%
Net Income

$2.94M

Previous: $619K+374.2%
Operating Income

$3.38M

Previous: $569K+494.4%
Gross Profit

$54.6M

Previous: $38.3M+42.6%
Cash & Equivalents

$5.86M

Previous: $10M-41.5%
Total Assets

$245M

Previous: $196M+24.9%

Revenue & EPS history

DSG · Revenue · Quarterly

$107M

Q2 2021+47.7%vs Q2 2020
Beat estimate in 8 of 16 quarters(50%)
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

While continuing to give due respect to the uncertainties and unevenness of the pandemic recovery, the company remains in position to continue executing on all three pillars of its strategy to grow through sales rep productivity, expansion of its sales team and make accretive acquisitions on a reduced cost structure.

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 2021

Historical avgQ2 2021

+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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