Distribution Solutions Group reports Q4 '22 GAAP revenue spike of 154%
Distribution Solutions Group, Inc., a multi-platform distribution company serving the maintenance, repair & operations (MRO), original equipment manufacturer (OEM) and industrial technologies markets, announced its GAAP revenue for the last three months of 2022 was $328.9 million, an increase of $199.6 million or 154.5%, which included $60.2 million of additional revenue from companies acquired in 2021 and 2022 other than Lawson Products.
For the full year, the company said GAAP revenue was GAAP revenue was $1.15 billion, an increase of $631.1 million or 121.3%. The increase was driven by the inclusion of Lawson Products revenue of $324.8 million following the April 1, 2022 merger closing date and $203.6 million of additional revenue from companies acquired in 2021 and 2022 (other than Lawson Products).
“We are pleased with fourth quarter results that exceeded expectations," said Bryan King, CEO and chairman of the board. "Our continued topline growth and sequential improvement in margins further supports our strategic decision to combine Lawson Products, Gexpro Services and TestEquity. While macroeconomic uncertainties remain, we are laser-focused on driving greater returns on cash flow through a combination of organic growth, strategic acquisitions and operational efficiencies. We believe that our disciplined approach to capital allocation through our asset light model coupled with our strengthening balance sheet positions us to further generate meaningful returns and cash flow in 2023.
“Fourth quarter revenue grew to nearly $329 million, consisting of organic growth of 16.7% as well as revenue from acquisitions. Fourth quarter Adjusted EBITDA grew $16.3 million over a year ago to $34.0 million or 10.3% of adjusted revenue, with an expansion in margins over the third quarter on fewer selling days. On a full year basis, we realized strong comparable adjusted revenue growth of over 35% and adjusted margin expansion in terms of dollars and percentage. I want to congratulate our leadership teams for successfully completing five acquisitions in 2022, as well as realizing sequential margin expansion as the year developed," he concluded.
Additional Fourth Quarter Highlights
- Non-GAAP adjusted revenue, which in the fourth quarter of 2021 includes the pre-merger revenue of Lawson Products, increased approximately $97.6 million or 42.2% to $328.9 million. This improvement was driven by organic growth of 16.7% and revenue from companies acquired in 2021 and 2022 (other than Lawson Products).
- Reported operating income increased by $14.4 million from the prior year period to $12.7 million or 3.8% of GAAP revenue.
- Diluted loss per share was $0.10 for the quarter compared to a diluted loss per share of $0.47 in the year ago quarter. Non-GAAP diluted earnings per share was $0.25 in the fourth quarter 2022 compared to $0.15 for the same period a year ago.
- Non-GAAP adjusted EBITDA increased by $16.3 million from the prior year period to $34.0 million or 10.3% of non-GAAP adjusted revenue.
- In November, the Board authorized an increase of the existing share buy-back program from $7.5 million to $12.5 million. During 2022, the Company repurchased approximately 54,000 shares of its common stock for an aggregate price of $1.9 million on top of $3.0 million previously repurchased which leaves $7.6 million available under its expanded authorized share repurchase plan.
Additional Full Year Highlights
- Non-GAAP adjusted revenue was $1.27 billion, which in 2022 and 2021 includes the pre-merger revenue of Lawson Products, increased approximately $331.3 million or 35.3%.
- This improvement was driven by organic growth of 13.8% and revenue from companies acquired in 2021 and 2022 (other than Lawson Products).
- Reported operating income increased by $30.4 million from the prior year period to $41.8 million or 3.6% of GAAP revenue.
- Diluted earnings per share was $0.42 for the year compared to a loss per diluted share of $0.49 in the year ago period.
- Non-GAAP adjusted EBITDA increased by $47.8 million from the prior year period to $123.0 million or 9.7% of non-GAAP adjusted revenue.
www.distributionsolutionsgroup.com
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