FORT WORTH, Texas - Distribution Solutions Group, Inc. (NASDAQ:DSGR), a leading specialty distribution company, today reported financial results for the fourth quarter ended December 31, 2023.
The company announced a quarterly EPS of $0.22, surpassing analyst expectations of $0.13. However, the reported revenue of $405.24 million for the quarter fell short of the consensus estimate of $419 million. The stock is up 1.58% premarket.
The fourth quarter's revenue saw a significant increase of 23.2% compared to the same quarter last year, which stood at $328.85 million. This growth was primarily attributed to the acquired revenue from Hisco, although the company experienced a 6% contraction in organic revenue. Despite this contraction, the two-year stacked organic revenue grew by 10%.
Bryan King, CEO and Chairman of the Board, highlighted the company's success over the year, noting a substantial growth in profitability and the generation of over $102 million in operating cash. King pointed out that, excluding the technology end-market and project-related verticals sensitive to high interest rates, organic revenue actually grew by approximately 1% in the fourth quarter, indicating that business headwinds were isolated to specific categories.
For the full year, Distribution Solutions Group's revenue reached $1.57 billion, marking a 36.4% increase from the previous year. The company's adjusted operating income grew 27.0% to $93.4 million, and non-GAAP adjusted EBITDA increased to $157.0 million, representing 10.0% of revenue. Despite these strong results, the company's GAAP diluted loss per share was $0.20 for the year, compared to earnings per diluted share of $0.21 in the prior year.
Looking ahead, Distribution Solutions Group did not provide specific financial guidance for the upcoming quarters or fiscal year. The company's strategic initiatives, including accretive acquisitions and organic growth, are expected to continue driving long-term shareholder value. King expressed confidence in the company's asset-light model and its ability to generate meaningful cash flow for reinvestment into high ROI initiatives.
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