Of course, investors hate to see large pullbacks in the market even if corrections can be healthy for the long term. Amid the call for the market to correct itself, some of the strongest-performing stocks can cool and then continue their extended rallies.Given the strong performance of the Zacks Business Services sector over the last year this could be the case for Distribution Solutions Group (DSGR)  and TriNet (TNET)  which have been two of the top performers.Performance Overview Distribution Solutions Gr ...

iantfoto/E+ via Getty Images Introduction Distribution Solutions Group (NASDAQ:DSGR) has quickly come up on the radar of more investors, and rightfully so. Run by CEO Bryan King, who has a lengthy investment management background, via a number of acquisitions in addition to their Lawson merger in 2022, the team has added a good amount of value to the business via M&A since their merger. Adjusted for the stock split, the stock is up ~75% on a 1-year basis and is now beginning to trade at a level more app ...

Distribution Solutions Group (DSGR) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following ...

Financial Data and Key Metrics Changes - The company reported 2023 annual sales of $1.6 billion, an increase of over 36%, with comparable sales rising by almost 24% despite a challenging sales environment in key markets like technology and renewables [2][10] - Adjusted EBITDA for the year was $157 million, up nearly 28%, with an EBITDA margin of 10% [136] - The company ended the year with a GAAP diluted loss per share of $0.20, compared to earnings per share of $0.21 in the previous year [12] Business Segment Data and Key Metrics Changes - Lawson Products achieved sales of $468.7 million for the full year, a 9.1% increase, while fourth-quarter sales were $109.8 million, slightly up from $108 million year-over-year [13] - Gexpro Services' full-year adjusted EBITDA grew to $45.2 million, or 11.1% of sales, compared to $43.2 million the previous year [15] - TestEquity's fourth-quarter sales increased by $85.3 million to $190.7 million, with Hisco contributing $96.6 million, although organic volume declined by 11.4% [16] Market Data and Key Metrics Changes - The renewables marketplace is expected to improve in 2024, supported by a positive book-to-bill ratio [7] - The technology market faced challenges, delaying several customer projects into 2024, which negatively impacted EBITDA by over $8.4 million for the year [7][57] Company Strategy and Development Direction - The company aims to increase consolidated EBITDA margin into the teens and ensure all business verticals operate with a margin above 12% within the next few years [3] - The integration of Hisco is expected to unlock significant cost synergies and enhance revenue opportunities across the company's verticals [4][8] - The company plans to continue making prudent decisions to create value and improve long-term returns while generating cash [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current market challenges and highlighted a commitment to driving business growth through innovative leadership and distribution experience [20] - There are indications of increased quoting activity and a potential revenue reacceleration in softer market segments [21] - Management acknowledged the need for normalization of inventory levels and customer spending to achieve positive organic growth in the second half of 2024 [27][46] Other Important Information - The company ended 2023 with $99.6 million in cash and no borrowings on its revolver, while also increasing its share repurchase program by $25 million [47][48] - A successful rights offering and a two-for-one stock split were executed to balance capital structure and liquidity objectives [48] Q&A Session Summary Question: What is the outlook for organic growth in 2024? - Management indicated that organic growth is expected to return in the second half of 2024, contingent on improvements in softer end markets [27][46] Question: How are margins trending in the first quarter? - Management noted that margin pressure is anticipated in Q1, similar to Q4, but expects sequential improvement as the year progresses [52][88] Question: What are the impacts of inventory destocking on revenue? - Management acknowledged that inventory destocking has affected revenue, particularly in the test and measurement equipment sector, but expects recovery as market conditions normalize [55][57] Question: How is the integration of Hisco progressing? - The integration of Hisco is expected to enhance margins and operational efficiencies, with significant synergies anticipated over the next few years [119][120] Question: What is the company's approach to share buybacks? - The company is focused on disciplined capital allocation and will consider share buybacks if the stock price is significantly below its perceived terminal value [115][125]

Q4 Revenue and Adjusted EBITDA Reconciliation ($000s) (Unaudited) | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------------|---------------|---------|---------------------------|-------|---------|---------------------------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 0-10546 DISTRIBUTION SOLUTIONS GROUP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S ...

Distribution Solutions Group Announces 2023 Full Year and Fourth Quarter Results 2023 Revenue Grew to $1.6 Billion, Generating $102 Million of Operating Cash FORT WORTH, TEXAS, March 7, 2024 - Distribution Solutions Group, Inc. (NASDAQ:DSGR) ("DSG" or the "Company"), a premier specialty distribution company, today announced consolidated results for the 2023 full year and fourth quarter ended December 31, 2023. This press release is supplemented by an earnings presentation at https://investor.distributionsol ...

FORT WORTH, Texas--(BUSINESS WIRE)--Distribution Solutions Group, Inc. (NASDAQ: DSGR) (“DSG” or the “Company"), a premier, multi-platform distribution company today announced that it will report results for the fiscal year 2023 and fourth quarter on Thursday, March 7, 2024, pre-market. The Company will host a conference call with prepared remarks beginning at 9:00 a.m. Eastern Time. Refer to the Company’s investor relations Events page for the supplemental slides at https://investor.distributionsolutionsgro ...

Distribution Solutions Group (DSGR) shares rallied 5.1% in the last trading session to close at $35.17. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.3% gain over the past four weeks.The positive response from investors can be correlated to the likely future benefits of the company’s strategic acquisition of  Safety Supply Illinois LLC, DBA Emergent Safety Supply (ESS). The acquisition of ESS is likely to ...

FORT WORTH, Texas--(BUSINESS WIRE)--Distribution Solutions Group, Inc. (NASDAQ: DSGR) (“DSG” or the “Company"), a premier, multi-platform specialty distribution company today announced that management is participating in the Gabelli Funds 34th Annual Pump, Valve, & Water Symposium on Thursday, February 22, 2024 at 10 am ET at The Yale Club, 50 Vanderbilt Avenue, New York, NY. For more information, please reference this registration link: https://www.gabelli.com/conferences/pvw. About Distribution Solution ...