DSGR Reports Significant Revenue Growth

By Philip Seaworth • Thursday, September 10 16:03 • Permanent Link

Distribution Solutions Group reported a sharp top-line jump in the latest period, with revenue rising to $484.8 million from $404.9 million a year earlier, an increase of $79.9 million, or 19.7%.

Gross profit increased to $131.9 million from $108.2 million, up $23.7 million, or 21.9%. Gross margin improved to 27.2% from 26.7%, a gain of 50 basis points.

Adjusted EBITDA climbed to $49.0 million from $40.8 million, up $8.2 million, or 20.1%. Adjusted EBITDA margin edged up to 10.1% from 10.0%.

Net income was $8.9 million, compared with $7.4 million in the prior year period, an increase of $1.5 million, or 20.3%. Diluted earnings per share rose to $0.18 from $0.15.

Operating cash flow came in at $36.8 million, versus $22.4 million a year earlier, an increase of $14.4 million. Free cash flow improved to $31.3 million from $17.0 million, up $14.3 million.

The company also noted that total debt fell to $619.7 million from $648.9 million, a reduction of $29.2 million. Net debt declined to $571.1 million from $623.5 million, down $52.4 million.

For the full year, revenue reached $1.90 billion, up from $1.66 billion, a gain of $244.6 million, or 14.8%. Gross profit rose to $528.4 million from $447.1 million, while adjusted EBITDA increased to $188.7 million from $162.5 million. Net income for the year was $36.8 million, compared with $29.0 million in the prior year. The market has reacted to these announcements by moving the company's shares 0.0% to a price of $34.75. For more information, read the company's full 8-K submission here.

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