Distribution Solutions Group, Inc. (NASDAQ:DSGR) Q1 2023 Earnings Conference Call May 4, 2023 9:00 AM ET

Company Participants

Steven Hooser - Investor Relations

Bryan King - Chairman & CEO

Ron Knutson - EVP and CFO

Conference Call Participants

Kevin Steinke - Barrington Research

Brad Hathaway - Far View Capital Management

Katie Fleischer - KeyBanc Capital Markets

Operator

Greetings, and welcome to the Distribution Solutions Group's First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to your host, Steven Hooser, Investor Relations. You may begin.

Steven Hooser

Good morning, and welcome to the Distribution Solutions Group First Quarter 2023 Earnings Call. In conjunction with today's call, we have provided a Q1 earnings presentation that has been posted on the company's IR website at investor.distributionsolutionsgroup.com.

Please note that statements on this call and in the press release contain forward-looking statements concerning goals, beliefs, expectations, strategies, plans, future operating results and underlying assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. In addition, statements made during this call are based on the company's views as of today.

The company anticipates that future developments may cause those views to change and we may elect to update the forward-looking statements made today, but disclaim no obligation to do so. Management will also refer to non-GAAP measures and reconciliations to the nearest GAAP measures can be found at the end of the earnings release.

The earnings press release issued earlier today was posted on the Investor Relations section of our website. A copy of the release has also been included in the current report on Form 8-K filed with the SEC. This call is being audio webcast on the internet via the Distribution Solutions Group Investor Relations page. A replay of the teleconference will be available through May 18, 2023.

I will now turn the call over to Bryan King, DSG's Chairman and Executive Officer. Bryan?

Bryan King

Thanks, Steven and thank you all for joining to review our first quarter results. Joining me for today's call is Ron Knutson, DSG's Executive Vice President and Chief Financial Officer. Distribution Solutions Group delivered another record quarter of outstanding financial performance with expansion in both revenue and profitability. Steven mentioned the slide deck that we're using in conjunction with our prepared remarks.

Starting on Slide 4, we delivered strong sales of 28% on a comparable basis, which included almost 14% of organic growth. In addition, we generated first quarter adjusted EBITDA of $39 million representing our fourth consecutive quarter of expanded EBITDA margin into the double-digits. We believe that our scale and breadth of products and services continue to provide competitive advantages in the specialty industrial distribution industry. Our DSG operational teams are working well together and we're seeing good evidence of wallet share growth, volume increases and encouraging and validating cross-selling wins as well as continued identification of an initiative to capture cost synergies across each of our verticals.