2023 Q2 Form 10-Q Financial Statement

#000070360423000048 Filed on May 10, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2022 Q1
Revenue $378.0M $348.3M $117.9M
YoY Change 17.63% 195.45% 13.83%
Cost Of Revenue $242.0M $215.4M $57.38M
YoY Change 17.01% 275.4% 17.11%
Gross Profit $136.0M $132.9M $60.50M
YoY Change 18.74% 119.63% 10.88%
Gross Profit Margin 35.99% 38.15% 51.32%
Selling, General & Admin $112.7M $116.2M $48.42M
YoY Change 18.69% 139.87% -2.67%
% of Gross Profit 82.85% 87.42% 80.04%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $14.58M $15.72M $2.089M
YoY Change -27.97% 652.61% 7.96%
% of Gross Profit 10.72% 11.83% 3.45%
Operating Expenses $122.1M $116.2M $48.42M
YoY Change 16.67% 139.87% -2.67%
Operating Profit $13.93M $16.72M $12.08M
YoY Change 40.62% 38.46% 151.06%
Interest Expense -$9.456M $7.670M $95.00K
YoY Change 0.13% 7973.68% -70.59%
% of Operating Profit -67.9% 45.87% 0.79%
Other Income/Expense, Net -$761.0K -$975.0K $204.0K
YoY Change 318.13% -577.94% -45.16%
Pretax Income $3.559M $8.019M $12.19M
YoY Change -142.74% -34.19% 150.77%
Income Tax $535.0K $2.100M $3.200M
% Of Pretax Income 15.03% 26.19% 26.26%
Net Earnings $3.024M $5.907M $8.986M
YoY Change -164.14% -34.26% 149.89%
Net Earnings / Revenue 0.8% 1.7% 7.62%
Basic Earnings Per Share $0.14 $0.28 $0.99
Diluted Earnings Per Share $0.14 $0.28 $0.96
COMMON SHARES
Basic Shares Outstanding 21.13M shares 19.42M shares 9.121M shares
Diluted Shares Outstanding 22.00M shares 21.30M shares 9.357M shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $44.24M $31.14M $5.534M
YoY Change 147.56% 462.78% -78.95%
Cash & Equivalents $44.24M $31.14M $5.534M
Short-Term Investments
Other Short-Term Assets $53.61M $25.91M $200.0K
YoY Change 72.95% 12857.0% -80.02%
Inventory $326.2M $270.0M $77.30M
Prepaid Expenses
Receivables $238.7M $172.7M $54.94M
Other Receivables $0.00 $0.00 $7.954M
Total Short-Term Assets $662.8M $499.7M $145.9M
YoY Change 41.68% 242.45% 0.68%
LONG-TERM ASSETS
Property, Plant & Equipment $207.8M $64.43M $19.17M
YoY Change 50.44% 236.2% 22.83%
Goodwill $398.7M $348.2M $35.51M
YoY Change 880.6% 0.24%
Intangibles $277.5M $219.2M $15.61M
YoY Change 1304.04% -13.6%
Long-Term Investments
YoY Change
Other Assets $23.29M $5.520M $348.0K
YoY Change 6.37% 1486.21% 5.14%
Total Long-Term Assets $907.3M $728.6M $124.8M
YoY Change 19.63% 483.89% 4.2%
TOTAL ASSETS
Total Short-Term Assets $662.8M $499.7M $145.9M
Total Long-Term Assets $907.3M $728.6M $124.8M
Total Assets $1.570B $1.228B $270.7M
YoY Change 28.04% 353.75% 2.27%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $88.98M $90.87M $31.73M
YoY Change -4.52% 186.42% 59.9%
Accrued Expenses $82.15M $65.58M $34.52M
YoY Change 88.63% 90.01% -8.38%
Deferred Revenue $1.170M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $32.91M $16.09M $143.0K
YoY Change 94.15% 11154.55% -36.16%
Total Short-Term Liabilities $227.2M $173.1M $71.10M
YoY Change 12.76% 143.52% -25.15%
LONG-TERM LIABILITIES
Long-Term Debt $559.8M $395.2M $15.66M
YoY Change 43.51% 2423.72% 9749.06%
Other Long-Term Liabilities $81.23M $24.41M $4.047M
YoY Change 30.19% 503.21% -28.47%
Total Long-Term Liabilities $641.0M $419.6M $4.047M
YoY Change 41.67% 10268.84% -28.47%
TOTAL LIABILITIES
Total Short-Term Liabilities $227.2M $173.1M $71.10M
Total Long-Term Liabilities $641.0M $419.6M $4.047M
Total Liabilities $894.1M $655.9M $128.0M
YoY Change 30.64% 412.53% -7.03%
SHAREHOLDERS EQUITY
Retained Earnings -$16.81M -$19.83M $120.0M
YoY Change -116.53% 14.06%
Common Stock $712.3M $612.4M $31.79M
YoY Change 1826.32% 7.58%
Preferred Stock
YoY Change
Treasury Stock (at cost) $10.07M
YoY Change 11.5%
Treasury Stock Shares 248.3K shares
Shareholders Equity $676.0M $572.4M $142.7M
YoY Change
Total Liabilities & Shareholders Equity $1.570B $1.228B $270.7M
YoY Change 28.04% 353.75% 2.27%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2022 Q1
OPERATING ACTIVITIES
Net Income $3.024M $5.907M $8.986M
YoY Change -164.14% -34.26% 149.89%
Depreciation, Depletion And Amortization $14.58M $15.72M $2.089M
YoY Change -27.97% 652.61% 7.96%
Cash From Operating Activities $13.61M $13.86M -$211.0K
YoY Change -134.59% -6667.77% -85.7%
INVESTING ACTIVITIES
Capital Expenditures $6.876M $4.490M $2.057M
YoY Change -210.35% 118.28% 142.29%
Acquisitions $0.00 $56.43M
YoY Change -100.0%
Other Investing Activities -$250.9M $1.816M $0.00
YoY Change 134.45% -100.0%
Cash From Investing Activities -$257.7M -$5.094M -$2.057M
YoY Change 127.62% 147.64% 211.2%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $33.00K
YoY Change 153.85%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 277.3M -$2.394M $3.590M
YoY Change 80.72% -166.69% -5156.34%
NET CHANGE
Cash From Operating Activities 13.61M $13.86M -$211.0K
Cash From Investing Activities -257.7M -$5.094M -$2.057M
Cash From Financing Activities 277.3M -$2.394M $3.590M
Net Change In Cash 33.20M $6.592M $1.355M
YoY Change 3621.97% 386.49% -164.62%
FREE CASH FLOW
Cash From Operating Activities $13.61M $13.86M -$211.0K
Capital Expenditures $6.876M $4.490M $2.057M
Free Cash Flow $6.730M $9.368M -$2.268M
YoY Change -120.33% -513.05% -2.45%

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<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Note 1 – Nature of Operations and Basis of Presentation</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Organization</span></div><div><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Distribution Solutions Group, Inc. ("DSG"), a Delaware corporation, is a global specialty distribution company providing value-added distribution solutions to the maintenance, repair and operations ("MRO"), original equipment manufacturer ("OEM") and industrial technology markets. DSG has three principal operating companies: Lawson Products, Inc., an Illinois corporation ("Lawson"), TestEquity Acquisition, LLC, a Delaware limited liability company ("TestEquity"), and 301 HW Opus Holdings, Inc., a Delaware corporation conducting business as Gexpro Services ("Gexpro Services"). The complementary distribution operations of Lawson, TestEquity and Gexpro Services were combined on April 1, 2022 to create a specialty distribution company. A summary of the Mergers (as defined below), including the legal entities party to the transactions and the stock consideration, is presented below. </span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to “DSG”, the “Company”, "we", "our" or "us" refer to the holding company, Distribution Solutions Group, Inc., and all entities consolidated in the accompanying unaudited condensed consolidated financial statements.</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Combination with TestEquity and Gexpro Services </span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On December 29, 2021, DSG entered into:</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">• an Agreement and Plan of Merger (the “TestEquity Merger Agreement”) by and among (i) LKCM TE Investors, LLC, a Delaware limited liability company (the “TestEquity Equityholder”), (ii) TestEquity, which was a wholly-owned subsidiary of the TestEquity Equityholder, (iii) DSG and (iv) Tide Sub, LLC, a Delaware limited liability company and a wholly-owned subsidiary of DSG (“Merger Sub 1”), pursuant to the terms and subject to the conditions of which the parties agreed, among other things, that Merger Sub 1 would merge with and into TestEquity, with TestEquity surviving the merger as a wholly-owned subsidiary of DSG (the “TestEquity Merger”); and </span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">• an Agreement and Plan of Merger (the “Gexpro Services Merger Agreement” and, together with the TestEquity Merger Agreement, the “Merger Agreements”) by and among (i) 301 HW Opus Investors, LLC, a Delaware limited liability company (the “Gexpro Services Stockholder”), (ii) Gexpro Services, which was a wholly-owned subsidiary of the Gexpro Services Stockholder, (iii) DSG and (iv) Gulf Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of DSG (“Merger Sub 2”), pursuant to the terms and subject to the conditions of which the parties agreed, among other things, that Merger Sub 2 would merge with and into Gexpro Services, with Gexpro Services surviving the merger as a wholly-owned subsidiary of DSG (the “Gexpro Services Merger” and, together with the TestEquity Merger, the “Mergers”).</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">At the closing of the Mergers, each outstanding share of TestEquity and Gexpro Services common stock outstanding immediately prior to the closing of the Mergers was converted into approximately 0.3618 shares and 0.7675 shares, respectively, of DSG common stock, based on the ratio of outstanding shares of each entity immediately prior to the Mergers to the number of shares of DSG common stock acquired in the Mergers.</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Completion of the TestEquity Merger</span></div><div><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On April 1, 2022 (the "Merger Date"), the TestEquity Merger was consummated pursuant to the TestEquity Merger Agreement. In accordance with the TestEquity Merger Agreement, Merger Sub 1 merged with and into TestEquity, with TestEquity surviving as a wholly-owned subsidiary of DSG.</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In accordance with and under the terms of the TestEquity Merger Agreement, in connection with the closing of the TestEquity Merger on the Merger Date, DSG: (i) issued to the TestEquity Equityholder 3,300,000 shares of DSG common stock, (ii) on behalf of TestEquity, paid certain indebtedness of TestEquity and (iii) on behalf of TestEquity, paid certain transaction expenses of TestEquity. </span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The TestEquity Merger Agreement provided that up to an additional 700,000 shares of DSG common stock would be potentially issuable to the TestEquity Equityholder in accordance with, and subject to the terms and conditions of, the earnout provisions of the TestEquity Merger Agreement. On March 20, 2023, DSG issued 700,000 shares of DSG common stock to the TestEquity Equityholder (the "TestEquity Holdback Shares") pursuant to the terms of the earnout provisions of the TestEquity </span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Merger Agreement. The TestEquity Holdback Shares issued represented the maximum number of additional shares that could be issued under the TestEquity Merger Agreement, and no further shares are available for issuance, and no additional shares will be issued, in connection with the TestEquity Merger Agreement. Refer to Note 8 – Earnout Derivative Liability for information about the earnout derivative liability related to the TestEquity Holdback Shares.</span></div><div style="text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Completion of the Gexpro Services Merger</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On the Merger Date, the Gexpro Services Merger was consummated pursuant to the Gexpro Services Merger Agreement. In accordance with the Gexpro Services Merger Agreement, Merger Sub 2 merged with and into Gexpro Services, with Gexpro Services surviving as a wholly-owned subsidiary of DSG.</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In accordance with and under the terms of the Gexpro Services Merger Agreement, in connection with the closing of the Gexpro Services Merger on the Merger Date, DSG: (i) issued to the Gexpro Services Stockholder 7,000,000 shares of DSG common stock, (ii) on behalf of Gexpro Services, paid certain indebtedness of Gexpro Services and (iii) on behalf of Gexpro Services, paid certain specified transaction expenses of Gexpro Services.</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Gexpro Services Merger Agreement provided that up to an additional 1,000,000 shares of DSG common stock would be potentially issuable to the Gexpro Services Stockholder in accordance with, and subject to the terms and conditions of, the earnout provisions of the Gexpro Services Merger Agreement. On March 20, 2023, DSG issued 1,000,000 shares of DSG common stock to the Gexpro Services Stockholder (the “Gexpro Services Holdback Shares”) pursuant to the terms of the earnout provisions of the Gexpro Services Merger Agreement. The Gexpro Services Holdback Shares issued represented the maximum number of additional shares that could be issued under the Gexpro Services Merger Agreement, and no further shares are available for issuance, and no additional shares will be issued, in connection with the Gexpro Services Merger Agreement. </span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As of April 1, 2022, approximately 538,000 of the Gexpro Services Holdback Shares had been expected to be issued under the first earnout opportunity in the Gexpro Services Merger Agreement based on certain earnout metrics related to the consummation of certain additional acquisitions which were completed prior to the Merger Date. Under the Gexpro Services Merger Agreement, if any Gexpro Services Holdback Shares remained after the calculation of the first earnout opportunity, there was a second earnout opportunity under the Gexpro Services Merger Agreement based on certain earnout performance metrics. On March 20, 2023, all 1,000,000 Gexpro Services Holdback Shares were issued under the earnout opportunities. The incremental 462,000 Gexpro Services Holdback Shares that were issued in excess of the 538,000 Gexpro Services Holdback Shares that were originally expected to be issued had been remeasured at fair value immediately prior to and reclassified to equity at December 31, 2022. Refer to Note 8 – Earnout Derivative Liability for information about the earnout derivative liability related to the Gexpro Services Holdback Shares.</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Accounting for the Mergers</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">TestEquity and Gexpro Services were treated as a combined entity as the accounting acquirer for financial reporting purposes, and DSG was identified as the accounting acquiree. Accordingly, periods prior to the April 1, 2022 Merger Date reflect the results of operations and financial position of TestEquity and Gexpro Services on a consolidated basis, and the results of operations of DSG's legacy Lawson business are only included subsequent to the April 1, 2022 Merger Date.</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">For more information about the Mergers, refer to Note 3 – Business Acquisitions.</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Nature of Operations </span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">A summary of the nature of operations for each of DSG's operating companies is presented below. Information regarding DSG's reportable segments is presented in Note 16 – Segment Information. </span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;text-decoration:underline">Lawson</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> is a distributor of specialty products and services to the industrial, commercial, institutional and government maintenance, repair and operations market.</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;text-decoration:underline">TestEquity</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> is a distributor of test and measurement equipment and solutions, electronic production supplies, and tool kits from its leading manufacturer partners supporting the technology, aerospace, defense, automotive, electronics, education, and medical industries.</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;text-decoration:underline">Gexpro Services</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> is a global supply chain solutions provider, specializing in developing and implementing vendor managed inventory and kitting programs to high-specification manufacturing customers. </span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Basis of Presentation and Consolidation </span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Mergers were accounted for as a reverse merger under the acquisition method of accounting in accordance with the accounting guidance for reverse acquisitions as provided in Accounting Standards Codification ("ASC") 805, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Business Combinations</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> ("ASC 805"). Under this guidance, TestEquity and Gexpro Services were treated as a combined entity as the accounting acquirer for financial reporting purposes, and DSG was identified as the accounting acquiree. This determination was primarily made as TestEquity and Gexpro Services were under the common control of an entity that owns a majority of the voting rights of the combined entity, and therefore, only DSG experienced a change in control. Accordingly, the unaudited condensed consolidated financial statements for the three months ended March 31, 2023</span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> and 2022 </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">reflect the results of operations of TestEquity and Gexpro Services on a consolidated basis, and the results of operations of DSG's legacy Lawson business are included only in the unaudited condensed consolidated financial statements for the three months ended March 31, 2023 for activity subsequent to the April 1, 2022 Merger Date. The unaudited condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 reflect the financial position of TestEquity, Gexpro Services and DSG's legacy Lawson business on a consolidated basis.</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company and its consolidated subsidiaries, except for Gexpro Services, operate on a calendar year-end. Gexpro Services operates on a calendar year-end for annual reporting purposes. However, quarterly financial statements for Gexpro Services are prepared on financial close dates that may differ from that of the Company. The consolidated financial statement impact of the one day difference arising from the different period ends for the quarter ended March 31, 2023 was not material. The Company utilizes the exchange rates in effect at Gexpro Services’ reporting date and the appropriate weighted-average rate for its fiscal reporting period.</span></div>The accompanying unaudited condensed consolidated financial statements of DSG have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not contain all disclosures required by GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with DSG's audited consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2022 filed with the U.S. Securities and Exchange Commission ("SEC") and the Lawson Products, Inc. unaudited condensed consolidated financial statements and accompanying notes included in DSG’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022. All normal recurring adjustments have been made that are necessary to fairly state the results of operations for the interim periods. Operating results for the three month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.
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CY2023Q1 dsgr Number Of Principal Operating Segments
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CY2022Q1 us-gaap Business Combination Acquisition Related Costs
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CY2022Q4 us-gaap Business Acquisition Purchase Price Allocation Goodwill Expected Tax Deductible Amount
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CY2023Q1 dsgr Revenue From Contract With Customer Number Of Revenue Streams
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CY2023Q1 dsgr Revenue From Contract With Customer Number Of Revenue Streams
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CY2023Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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348270000 usd
CY2022Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2022Q4 us-gaap Inventory Gross
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CY2023Q1 us-gaap Inventory Valuation Reserves
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CY2022Q4 us-gaap Inventory Valuation Reserves
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CY2022Q4 us-gaap Inventory Valuation Reserves
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CY2023Q1 us-gaap Inventory Write Down
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CY2023Q1 us-gaap Inventory Valuation Reserves
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CY2022Q4 us-gaap Property Plant And Equipment Gross
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18418000 usd
CY2023Q1 us-gaap Property Plant And Equipment Net
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CY2022Q4 us-gaap Property Plant And Equipment Net
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CY2023Q1 us-gaap Other Liabilities Noncurrent
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164000 usd
CY2023Q1 us-gaap Goodwill
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CY2022Q1 us-gaap Amortization Of Intangible Assets
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20680000 usd
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54786000 usd
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138000 usd
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CY2023Q1 dsgr Finance Lease Cost
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164000 usd
CY2022Q1 dsgr Finance Lease Cost
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86000 usd
CY2023Q1 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
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7600000 usd
CY2023Q1 us-gaap Lease Cost
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5046000 usd
CY2022Q1 us-gaap Lease Cost
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1922000 usd
CY2023Q1 us-gaap Operating Lease Right Of Use Asset
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46403000 usd
CY2022Q4 us-gaap Operating Lease Right Of Use Asset
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CY2023Q1 us-gaap Finance Lease Right Of Use Asset
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CY2022Q4 us-gaap Finance Lease Right Of Use Asset
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CY2023Q1 dsgr Lease Assets Rightof Use Asset
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CY2022Q4 dsgr Lease Assets Rightof Use Asset
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CY2023Q1 dsgr Lease Liability Current
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CY2023Q1 us-gaap Finance Lease Liability Noncurrent
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CY2022Q4 dsgr Lease Liability Noncurrent
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CY2023Q1 dsgr Operating Lease Rightof Use Asset Accumulated Depreciation
OperatingLeaseRightofUseAssetAccumulatedDepreciation
13600000 usd
CY2022Q4 dsgr Operating Lease Rightof Use Asset Accumulated Depreciation
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CY2023Q1 us-gaap Finance Lease Liability Payments Remainder Of Fiscal Year
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
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CY2023Q1 us-gaap Finance Lease Liability Payments Due Next Twelve Months
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CY2023Q1 dsgr Net Lease Liability Payments Due Year One
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CY2023Q1 us-gaap Finance Lease Liability Payments Due Year Two
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Three
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CY2023Q1 us-gaap Finance Lease Liability Payments Due Year Three
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Four
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CY2023Q1 us-gaap Finance Lease Liability Payments Due Year Four
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CY2023Q1 dsgr Net Lease Liability Payments Due Year Four
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CY2023Q1 dsgr Lessee Operating Lease Liability To Be Paid After Year Four
LesseeOperatingLeaseLiabilityToBePaidAfterYearFour
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CY2023Q1 dsgr Finance Lease Liability To Be Paid After Year Four
FinanceLeaseLiabilityToBePaidAfterYearFour
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CY2023Q1 dsgr Net Lease Liability Payments Due After Year Four
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due
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CY2023Q1 us-gaap Finance Lease Liability Payments Due
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CY2023Q1 dsgr Net Lease Liability Payments Due
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CY2023Q1 us-gaap Finance Lease Liability Undiscounted Excess Amount
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189000 usd
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CY2023Q1 us-gaap Operating Lease Liability
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CY2023Q1 dsgr Finance Lease Liability Present Value
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1632000 usd
CY2023Q1 dsgr Net Lease Liability Present Value
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49805000 usd
CY2023Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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P5Y8M12D
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CY2023Q1 us-gaap Finance Lease Weighted Average Remaining Lease Term1
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CY2022Q1 us-gaap Finance Lease Interest Payment On Liability
FinanceLeaseInterestPaymentOnLiability
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CY2022Q1 us-gaap Finance Lease Principal Payments
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CY2023Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Purchases
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43900000 usd
CY2023Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Gain Loss Included In Earnings
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CY2023Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Purchases
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CY2023Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Gain Loss Included In Earnings
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CY2023Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
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CY2023Q1 us-gaap Debt Instrument Carrying Amount
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CY2022Q4 us-gaap Debt Instrument Carrying Amount
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CY2023Q1 us-gaap Long Term Debt Current
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CY2023Q1 us-gaap Long Term Debt
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CY2022Q4 us-gaap Long Term Debt
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CY2023Q1 us-gaap Allocated Share Based Compensation Expense
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2200000 usd
CY2022Q1 us-gaap Allocated Share Based Compensation Expense
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0 usd
CY2023Q1 us-gaap Deferred Compensation Sharebased Arrangements Liability Current And Noncurrent
DeferredCompensationSharebasedArrangementsLiabilityCurrentAndNoncurrent
4500000 usd
CY2022Q4 us-gaap Deferred Compensation Sharebased Arrangements Liability Current And Noncurrent
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3300000 usd
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1
P5Y
CY2022Q2 dsgr Share Based Compensation Arrangement By Share Based Payment Award Option Ratio To Common Stock
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionRatioToCommonStock
1 shares
CY2023Q1 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions
9800000 usd
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
288000 shares
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
77.59
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
605821 shares
CY2023Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
72.74
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
893821 shares
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
74.30
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
40000 shares
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
27.01
CY2023Q1 us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
0 shares
CY2023Q1 us-gaap Net Income Loss
NetIncomeLoss
5907000 usd
CY2022Q1 us-gaap Net Income Loss
NetIncomeLoss
-2537000 usd
CY2023Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
21120770 shares
CY2022Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
10300866 shares
CY2023Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.28
CY2022Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.25
CY2023Q1 us-gaap Net Income Loss
NetIncomeLoss
5907000 usd
CY2022Q1 us-gaap Net Income Loss
NetIncomeLoss
-2537000 usd
CY2023Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
21120770 shares
CY2022Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
10300866 shares
CY2023Q1 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
183434 shares
CY2022Q1 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
0 shares
CY2023Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
21304204 shares
CY2022Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
10300866 shares
CY2023Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.28
CY2022Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.25
CY2023Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
0 shares
CY2022Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
266984 shares
CY2023Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
2100000 usd
CY2023Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.263
CY2022Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-1000000 usd
CY2022Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.274
CY2022Q4 us-gaap Accrual For Environmental Loss Contingencies
AccrualForEnvironmentalLossContingencies
100000 usd
CY2023Q1 us-gaap Unrecorded Unconditional Purchase Obligation Due In Next Rolling Twelve Months
UnrecordedUnconditionalPurchaseObligationDueInNextRollingTwelveMonths
174000000 usd
CY2022Q1 us-gaap Related Party Transaction Expenses From Transactions With Related Party
RelatedPartyTransactionExpensesFromTransactionsWithRelatedParty
500000 usd
CY2022Q2 dsgr Settlement Of Related Party Obligations
SettlementOfRelatedPartyObligations
5300000 usd
CY2023Q1 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
3 segment
CY2023Q1 dsgr Number Of Branches
NumberOfBranches
14 branch
CY2023Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
348270000 usd
CY2022Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
154085000 usd
CY2023Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
16721000 usd
CY2022Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
2988000 usd

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