DISTRIBUTION SOLUTIONS GROUP INC Stock Price, News & Analysis

Distribution Solutions Group, Inc. (NASDAQ: DSGR) will announce its first quarter 2023 results on May 4, 2023, pre-market. A conference call will follow at 9:00 a.m. Eastern Time, with supplemental slides available on the investor relations page.

DSG, formed by the merger of Lawson Products, Gexpro Services, and TestEquity, is dedicated to providing multi-platform distribution solutions across MRO, OEM, and industrial technologies markets. The company serves approximately 110,000 customers globally, employing about 3,100 people and leveraging strong vendor partnerships.

More information is available on their website.

Distribution Solutions Group, Inc. (NASDAQ: DSGR) has announced a rights offering, establishing May 1, 2023 as the record date. The company aims to raise up to $100 million through this offering, with rights allocated to shareholders of record. Proceeds will be used for general corporate purposes and to fund the acquisition of HIS Company, Inc., following a Stock Purchase Agreement dated March 30, 2023.

The offering will proceed under an existing shelf registration statement with the Securities and Exchange Commission. DSGR is a leader in specialty distribution, focused on MRO, OEM, and industrial technologies, serving over 110,000 customers globally with a workforce of over 3,100 employees.

Distribution Solutions Group, Inc. (NASDAQ: DSGR) announced a rights offering to raise approximately $100 million for its common stock shareholders. The offering will allow stockholders of record to subscribe for shares at no cost, with details to be outlined in a forthcoming prospectus supplement. Currently, Luther King Capital Management owns about 77% of DSGR's stock and intends to fully subscribe to their portion. The proceeds will be used for general corporate purposes and to finance the acquisition of HIS Company, Inc. This announcement is part of continuing efforts to enhance DSG's capital structure.

Distribution Solutions Group (DSGR) announced its acquisition of Hisco, a top distributor of specialty products for industrial technology applications, with sales over $400 million and adjusted EBITDA of approximately $29 million for fiscal year ending October 31, 2022. The deal, valued at $269.1 million, is expected to close in Q2 2023 and combine operations with TestEquity, enhancing market position and product offerings. CEO Bryan King emphasized the strategic benefits and expected accretion to shareholder value.

Distribution Solutions Group, Inc. (NASDAQ:DSGR) has reinstated its universal shelf registration statement on Form S-3, allowing for future offerings of up to $500 million in equity and debt securities. This move follows a previous filing that expired in May 2022 and aims to enhance the company's access to capital markets. The company anticipates utilizing proceeds for general corporate purposes, including organic growth and acquisitions. As of now, the shelf registration statement is not yet effective.

Distribution Solutions Group (NASDAQ:DSGR) reported a strong financial performance for the fourth quarter and full year ending December 31, 2022. Q4 GAAP revenue reached $328.9 million, up 154.5% year-over-year, driven by organic growth of 16.7% and acquisitions. Full-year GAAP revenue totaled $1.15 billion, a 121.3% increase. Adjusted EBITDA for Q4 surged 92.6% to $34 million, while diluted earnings per share improved to $0.42. The company has a strong balance sheet with $24.6 million in cash and a 3.1x net debt leverage ratio. The Board has authorized an increase in the share buyback program to $12.5 million.