Distribution Solutions Group Inc (NAS:DSGR)
$ 40.66 5.56 (15.83%) Market Cap: 1.90 Bil Enterprise Value: 2.68 Bil PE Ratio: 2,033.00 PB Ratio: 2.80 GF Score: 85/100
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Q3 2024 Distribution Solutions Group Inc Earnings Call Transcript

Oct 31, 2024 / 01:00PM GMT
Release Date Price: $38.5 (-4.32%)

Key Points

Positve
  • Distribution Solutions Group Inc (DSGR) reported record quarterly sales, up 6.6% compared to last year's third quarter.
  • The company has made significant progress in integrating acquisitions, capturing more cost savings than anticipated.
  • DSGR announced three strategic acquisitions, enhancing its geographic footprint and service offerings.
  • The company is expanding its sales force, with plans to increase the number of sales reps to 1,000 by mid-next year.
  • DSGR's adjusted EBITDA improved to $49.1 million, up 12.4% over the prior year, indicating better operating leverage.
Negative
  • Organic sales declined by 2.1% compared to the previous year, indicating challenges in core business growth.
  • The industrial backdrop remains lackluster, with weak electronics manufacturing impacting certain verticals.
  • The company faces challenges in the federal government sector, contributing to a decline in sales.
  • DSGR's leverage increased to 3.7 times due to recent acquisitions, which may impact financial flexibility.
  • The company is experiencing choppiness in demand across certain end markets, affecting overall performance.
Operator

Greetings and welcome to the Distribution Solutions third quarter, 2024 earnings conference call.

At this time, all participants are on a listen-only mode and a question and answer session will follow the formal presentation.

If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

Please note this conference is being recorded.

I will now turn the conference over to your host, Mr Stephen Hoosier with investor relations, sir. The floor is yours.

Steven Hooser
Distribution Solutions Group Inc - Investor Relations

Good morning, everyone and welcome to the Distribution Solutions Group third quarter, 2024 earnings call. Joining me on today's call are Ds G's Chairman and Chief Executive Officer, Brian King and Executive Vice President and Chief Financial Officer, Ron Knutson.

In conjunction with today's call, we have provided a financial results slide deck posted on the company's IR website at investor dot distribution solutions group dotcom.

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