Distribution Solutions Group on Thursday said sales and earnings soared in its latest fiscal quarter, the second to be issued after the closing of the merger that created the company earlier this year.
The Chicago-based company, which changed its name after Lawson Products acquired TestEquity and Gexpro Services, again contrasted its quarterly results with the combined totals of its component companies from the third quarter of 2021 according to generally accepted accounting principles.
Under that formula, the company’s net sales increased from nearly $130 million to more than $347 million — an increase of 163% — while operating income rose more than 300% from $5.5 million to $22 million.
Adjusted net sales and operating income rose somewhat more modestly, at 46% and 118%, respectively, while adjusted EBITDA was up 63.5%. Earnings per diluted share were $0.84, up from $0.12 in the same quarter one year ago.
DSG officials praised the leaders of Lawson, TestEquity and Gexpro for their efforts on bolstering sales and cost efficiencies. Although the third quarter tends to be its strongest, the company said higher compensation and healthcare costs put a dent in the otherwise robust numbers.
"We continue to build our leadership positions in the specialty distribution industry, and believe that our disciplined execution of planned strategies will position us well to capture market share in this environment,” DSG Chairman and CEO Bryan King said in a statement.