DSG(DSGR) - 2024 Q3 - Quarterly Results

Revenue and Income - Revenue for Q3 2024 increased by $29.1 million, or 6.6%, to$ 468.0 million, including $38.1 million from three acquisitions closed in 2024[5] - Operating income was$ 18.9 million, compared to $12.8 million in the prior year quarter, with adjusted operating income at$ 42.5 million, up from $38.0 million year-over-year[6] - Adjusted EBITDA for the quarter grew by 12.4% to$ 49.1 million, representing a margin of 10.5%, compared to 10.0% in the prior year quarter[8] - Revenue for the three months ended September 30, 2024, increased to $468,019 thousand, up 6.3% from$ 438,909 thousand in the same period last year[20] - Total revenue for Q3 2024 was $468,019,000, an increase of 6.6% compared to$ 438,909,000 in Q3 2023[25] - Operating income for Q3 2024 was $18,947,000, compared to$ 12,783,000 in Q3 2023, representing a year-over-year increase of 48.1%[25] - Non-GAAP adjusted EBITDA for Q3 2024 was $49,110,000, up from$ 43,703,000 in Q3 2023, indicating a growth of 12.4%[28] - Non-GAAP adjusted net income for Q3 2024 was $17,655,000, compared to$ 16,526,000 in Q3 2023, reflecting an increase of 6.8%[30] - The company reported a net income of $21,921,000 for Q3 2024, a significant recovery from a net loss of$ 1,568,000 in Q3 2023[30] Sales Performance - Average daily sales for Lawson increased by 1.4%, Gexpro Services by 12.5%, while TestEquity saw a decline of 7.4%[3] - Organic sales declined by 2.1% year-over-year but grew slightly by 0.2% sequentially over Q2 2024[5] - The Canada Branch Division generated revenue of $39,092,000 in Q3 2024, significantly up from$ 13,543,000 in Q3 2023, reflecting a growth of 188.5%[25] Acquisitions and Investments - The acquisition of Source Atlantic, with CAD $250 million in revenue, aims to enhance DSG's growth in the Canadian MRO market[4] - The acquisition of Source Atlantic Limited led to the establishment of a new reportable segment focused on the Canadian MRO market[24] - DSG remains focused on deploying capital for acquisitions and organic investments to maximize long-term shareholder value[5] Financial Position - The company expanded its credit facility by$ 255 million, ending the quarter with total liquidity of $328.0 million[9] - Total current assets increased to$ 770,712 thousand as of September 30, 2024, from $657,330 thousand at the end of 2023, marking a 17.2% growth[19] - Accounts receivable rose to$ 281,142 thousand, up 31.7% from $213,449 thousand at the end of 2023[19] - Long-term debt increased to$ 704,135 thousand, up 31.4% from $535,881 thousand at the end of 2023[19] - Cash and cash equivalents decreased to$ 61,344 thousand from $83,931 thousand at the end of 2023, a decline of 26.9%[19] - Total liabilities increased to$ 1,104,180 thousand as of September 30, 2024, from $888,730 thousand at the end of 2023, reflecting a 24.3% rise[19] - The company’s total assets reached$ 1,784,942 thousand as of September 30, 2024, compared to $1,550,331 thousand at the end of 2023, an increase of 15.1%[19] Earnings Per Share - Diluted income per share was$ 0.46, including a $0.40 tax benefit, compared to a diluted loss per share of$ 0.03 in the year-ago quarter[7] - The company reported a basic income per share of $0.47 for the three months ended September 30, 2024, compared to a loss of$ 0.03 in the same period last year[20] Expenses - The company incurred $3,568,000 in severance and acquisition-related retention expenses in Q3 2024, down from$ 10,478,000 in Q3 2023[32] - The company’s interest expense for Q3 2024 was $15,160,000, compared to$ 12,895,000 in Q3 2023, reflecting an increase of 17.6%[28]