Distribution Solutions Group Inc · Q3 2022 earnings

Briefing

Reported strong third quarter results with sales of $347 million and organic sales growth of 15%.

Distribution Solutions Group reported strong Q3 2022 results, with net sales of $347.2 million, including 15.4% organic growth. Adjusted EBITDA increased by $13.5 million year-over-year to $34.7 million, representing 10.0% of adjusted net sales. Earnings per diluted share was $0.84, and non-GAAP diluted earnings per share was $0.64.

• GAAP net sales were $347.2 million, an increase of $215.1 million or 162.8%.
• Non-GAAP adjusted net sales increased approximately $109.5 million or 46.1% driven by organic growth of 15.4%.
• Reported operating income was $22.0 million or 6.3% of net sales.
• Non-GAAP adjusted EBITDA increased by $13.5 million from the prior year period to $34.7 million or 10.0% of adjusted net sales.

Headline financials

Revenue & EPS history

While the global market outlook remains cautious, we are investing in growth and in high ROIC projects to improve our return profile and strengthen our competitive positioning. Although demand is strong today, we are managing our business to rapidly adapt to changing market conditions. We continue to build our leadership positions in the specialty distribution industry, and believe that our disciplined execution of planned strategies will position us well to capture market share in this environment. We plan to prudently manage the business for growth, returns and cash flow as we maximize long-term value for shareholders