Distribution Solutions Group Inc. has announced results for the first quarter ended March 31, with CEO Bryan King calling them “in line with near term expectations.”
The company’s MRO vertical — Lawson — had a “strong performance,” said King, who added that Lawson continued to invest in its sales organization.
Overall, DSG sales grew 19.5% year-over-year to $416 million. Sales also increased 2.7% sequentially over Q4 ‘23. While King referred to “soft” organic sales “as anticipated,” the company has still seen organic revenue increases in the past two years, with sequential improvements in many end markets.
A diluted loss per share of $0.11 for the quarter was tied to non-recurring costs like acquisitions and severance, as well as higher depreciation and amortization expenses. King added that the company’s “asset-light business model, combined with our focus on growing operating cash flows and accelerating returns on invested capital, positions us well to maximize long-term shareholder value.”
Likewise, the company – no. 18 on ID’s 2023 Big 50 List – says incremental margin enhancement initiatives and cost savings will contribute to its overall expectation of margin improvements throughout the remainder of the year.
The company, comprised of Lawson Products, Gexpro Services and TestEquity, recently added S&S Automotive Inc., an automotive and industrial parts supplier based near Chicago in Woodridge, Illinois. Lawson’s Kent Automotive division distributes automotive and industrial class C-parts to auto dealerships and collision repair centers throughout North America. Lawson also closed on its acquisition of Emergent Safety Supply in Q1.
King said the company continues to be “actively working our pipeline of acquisition targets.”
