NASDAQ$DSGR

Distribution Solutions Group Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Delivered improved financial results with sales growth and increased adjusted operating income.

Lawson Products reported a 2.7% increase in net sales for Q4 2019, reaching $88.6 million, and a 75.8% increase in adjusted operating income. The company's financial results were negatively impacted by $10.2 million of stock-based compensation expense. For the full year, sales increased 6.0% and adjusted EBITDA finished at $34.5 million representing an increase of 37%.

  • Ended the year with over 1,000 Lawson segment sales reps and realized continued sales rep productivity.
  • Non-GAAP adjusted operating income increased 75.8% to $5.8 million.
  • Adjusted EBITDA improved to 8.3% for the fourth quarter 2019 from 5.9% in the year ago quarter.
  • Adjusted diluted earnings per share improved 118% to $0.48.

Headline financials

Total Revenue

$88.6M

Previous: $86.3M+2.7%
EPS (adj)

$0.48

Previous: $0.22+118.2%
Adj. EBITDA Margin

8.3%

Previous: 5.9%+40.7%
Capital Expenditures

$636K

Previous: $898K-29.2%
Free Cash Flow

$519K

No prior period
Net Income

-$3.01M

Previous: $2.6M-215.6%
Operating Income

-$4.55M

Previous: $4.09M-211.3%
Gross Profit

$46.8M

Previous: $46.1M+1.6%
Cash & Equivalents

$5.5M

Previous: $11.9M-53.8%
Total Assets

$204M

Previous: $197M+3.7%
Stock-Based Comp

$4.05M

Previous: $7.51M-46.0%

Revenue & EPS history

DSG · Revenue · Quarterly

$88.6M

Q4 2019+2.7%vs Q4 2018
Beat estimate in 12 of 16 quarters(75%)
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 enters fiscal 2020 well-positioned to take advantage of opportunities built through initiatives focused on sales rep productivity, adding to the sales team, and making compatible, 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 Q4 2019

Historical avgQ4 2019

+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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