NASDAQ$DSGR

Distribution Solutions Group Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Lawson Products' third quarter results confirmed recovery from the pandemic-led economic downturn, with net sales growing 25.1% over the prior quarter and adjusted EBITDA margin improving to 10.4%.

Lawson Products reported a decrease in net sales by 4.7% compared to the same quarter last year, but a 25.1% increase compared to the second quarter of 2020. The adjusted EBITDA margin improved to 10.4% from 8.7% in the second quarter. The company completed the acquisition of Partsmaster and is focused on rebuilding organic growth and improving operational efficiency.

  • Acquired Partsmaster, a leading MRO distributor based in Texas, for $35.3 million.
  • Third quarter sales reached $90.3 million, a 25.1% increase over the second quarter of 2020.
  • Reported operating income was $2.0 million, while adjusted operating income increased to $7.7 million, a 61.2% improvement over the second quarter of 2020.
  • Cash on hand at the end of the quarter was $17.2 million, compared to $5.5 million at the end of 2019.

Headline financials

Total Revenue

$90.3M

Previous: $94.8M-4.7%
EPS (adj)

$0.62

Previous: $0.69-10.1%
Adj. EBITDA Margin

10.4%

Previous: 10.9%-4.6%
Capital Expenditures

-$1.31M

Previous: -$1.39M+5.8%
Free Cash Flow

$427K

Previous: $3.38M-87.4%
Net Income

$1.74M

Previous: $4.77M-63.6%
Operating Income

$2M

Previous: $6.45M-69.0%
Gross Profit

$47.2M

Previous: $50.6M-6.6%
Cash & Equivalents

$17.2M

Previous: $8.63M+99.3%
Total Assets

$251M

Previous: $208M+21.0%

Revenue & EPS history

DSG · Revenue · Quarterly

$90.3M

Q3 2020-4.7%vs Q3 2019
Beat estimate in 9 of 16 quarters(56%)
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 Products expects some challenges due to the ongoing impact of the pandemic on the industrial economy, but is on the path to rebuild organic growth with better customer-facing business processes and more efficient operations.

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 Q3 2020

Historical avgQ3 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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