NASDAQ$DSGR

Distribution Solutions Group Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

DSG's Q4 2022 earnings were announced, revealing strong organic sales growth and margin expansion.

Distribution Solutions Group reported a strong fourth quarter with revenue growth driven by organic sales and acquisitions. Adjusted EBITDA increased significantly, and the company saw margin expansion. The company is focused on driving returns on cash flow through organic growth, strategic acquisitions, and operational efficiencies.

  • GAAP revenue was $328.9 million, up 154.5% year-over-year, including revenue from acquisitions.
  • Non-GAAP adjusted revenue increased 42.2% to $328.9 million, driven by organic growth of 16.7% and acquisitions.
  • Reported operating income increased to $12.7 million, or 3.8% of GAAP revenue.
  • Non-GAAP adjusted EBITDA increased to $34.0 million, or 10.3% of non-GAAP adjusted revenue.

Headline financials

Total Revenue

$329M

Previous: $102M+222.2%
EPS (adj)

$0.13

Previous: $0.52-75.0%
Adj. EBITDA Margin

10.3%

Previous: 8.3%+24.1%
Net Debt Leverage

3.1

No prior period
Capital Expenditures

$3.35M

Previous: $2.53M+32.6%
Free Cash Flow

$4.9M

Previous: -$3.25M+250.9%
Net Income

-$1.88M

Previous: -$781K-141.1%
Operating Income

$12.7M

Previous: -$825K+1634.3%
Gross Profit

$116M

Previous: $54M+115.3%
Cash & Equivalents

$24.6M

Previous: $4.18M+487.3%
Total Assets

$1.22B

Previous: $491M+147.4%

Revenue & EPS history

DSG · Revenue · Quarterly

$329M

Q4 2022+222.2%vs Q4 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

DSG · $314M total across 3 segments · Q4 2022

  • Lawson Products
    $108M+21.3%
  • TestEquity
    $105M
  • Gexpro Services
    $100M

Forward guidance

The company is laser-focused on driving greater returns on cash flow through a combination of organic growth, strategic acquisitions and operational efficiencies. The company believes that their disciplined approach to capital allocation through their asset light model coupled with their strengthening balance sheet positions them to further generate meaningful returns and cash flow in 2023.

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 2022

Historical avgQ4 2022

+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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