Chicago-based Distribution Solutions Group reported 2022 third-quarter net sales of $347.2 million, an increase of $215.1 million or 162.8% over the same quarter last year.
Non-GAAP adjusted net sales increased approximately $109.5 million, or 46.1%, driven by organic growth of 15.4% and $68.4 million of additional sales from companies acquired in 2021 and 2022 other than Lawson Products, the company said.
In May, Lawson Products changed its name to Distribution Solutions Group after merging with distributor TestEquity and supply chain solutions provider Gexpro Services a month earlier.
In 3Q, DSG’s Lawson segment netted $109.4 million in sales. The Gexpro segment had $103.7 million in sales, while the TestEquity segment touted $116.7 million.
“We are excited to report strong third quarter results for DSG,” Chairman and CEO Bryan King said in a Nov. 3 statement announcing 3Q 2022 results. “These results support our confidence in the strategic combination of Lawson Products, Gexpro Services and TestEquity earlier this year. Each of the operating companies had strong performance during the quarter on significant sales growth over the year ago quarter with solid sequential sales increases over the second quarter of 2022. The leadership teams of all three companies are demonstrating outstanding focus on sales growth, leveraging best practices and driving incremental cost synergies. We are excited about the future of these best-in-class specialty distributors and believe we can drive significant value creation for all shareholders.”
In MDM’s 2022 Top Distributors rankings, DSG ranks 34th among Top Industrial Distributors and 16th among Top MRO Distributors.
For DSG in 3Q, reported operating income was $22 million or 6.3% of net sales including merger related costs, an inventory net realizable value adjustment and amortization expense “as a result of the reverse merger acquisition accounting,” the company said. The figure is an improvement of $16.5 million over the prior year. Earnings per diluted share was $0.84 for the quarter compared to $0.12 in 3Q 2021, DSG said.