Open the filing on EDGARDistribution Solutions Group Announces
2026 First Quarter Results
Company Achieved 3.8% First Quarter Revenue Growth
FORT WORTH, TEXAS, April 30, 2026 - Distribution Solutions Group, Inc. (NASDAQ:DSGR) ("DSG" or the "Company"), a premier specialty distribution company, today announced consolidated results for the first quarter ended March 31, 2026. This press release is supplemented by an earnings presentation at https://investor.distributionsolutionsgroup.com/news/events.
The following represents a summary of certain operating results (unaudited). See the reconciliations of GAAP to non-GAAP measures in Tables 2, 3 and 4.
| Three Months Ended |
|---|
| March 31, | December 31, |
|---|
| (Dollars in thousands) | | 2026 | | 2025 | % Change | | 2025 | % Change |
| Revenue | $495,995 | | $478,029 | | 3.8% | | $481,599 | | 3.0% | |
| Operating income | $13,630 | | $20,097 | | (32.2)% | | $7,721 | | 76.5% | |
| Non-GAAP adjusted operating income | $29,113 | | $34,392 | | (15.3)% | | $26,517 | | 9.8% | |
| Net income (loss) | $382 | | $3,260 | | (88.3)% | | $(6,371) | | 106.0% | |
| Non-GAAP adjusted EBITDA | $37,833 | | $42,786 | | (11.6)% | | $35,437 | | 6.8% | |
| Operating income (loss) as a percent of revenue | | 2.7% | | 4.2% | | -150bps | | 1.6% | | 110bps |
| Adjusted EBITDA as a percent of revenue | | 7.6% | | 9.0% | | -140bps | | 7.4% | | 20bps |
Distribution Solutions Group delivered improved revenue and sequential profitability growth in the first quarter. Revenue increased 3.8% year-over-year to $496.0 million, driven by organic sales growth of 3.6% with daily sales improvement across all of the verticals. The first quarter acquisition of Eastern Valve contributed $0.8 million for the partial quarter.
As signaled earlier, the first quarter was going to be under some margin pressures. Profitability improved sequentially on higher sales with positive momentum exiting the fourth quarter. Adjusted EBITDA margin as a percentage of sales was 7.6%, a sequential improvement of 20bps, while a sequential improvement in operating income to $13.6 million drove adjusted earnings per share by 6 cents to $0.24. The Company estimates that certain timing and isolated expenses, as well as fewer selling days in the quarter, negatively impacted adjusted EBITDA as a percent of revenues by approximately 70bps for the quarter. Excluding these items, adjusted EBITDA would have been 8.3% for the quarter.
Total available liquidity was $415 million at quarter end. During the quarter, DSG closed on the acquisition of Eastern Valve & Control Specialties Ltd., a provider of industrial valve products and related services supporting customers across Atlantic Canada. Eastern Valve was acquired to scale and expand DSG’s operating footprint in the Canadian market.
2026 First Quarter Summary
- Revenue increased $18.0 million or 3.8% to $496.0 million, primarily driven by organic sales growth of 3.6% and $0.8 million of incremental revenue from the acquisition closed in the first quarter of 2026. Sequentially, organic sales grew 2.8% with organic average daily sales growing 3.7% over the fourth quarter of 2025. Gross margin decreased from 34.3% to 32.9% primarily due to customer and vertical sales mix shifts and higher tariff rates on inbound shipments partially offset by pricing benefits realized.
- Operating income was $13.6 million, net of $11.0 million of non-cash acquired intangible amortization and $4.5 million of non-recurring severance and acquisition-related retention costs,
stock-based compensation, acquisition-related costs and other non-recurring items. This compares to an operating income of $20.1 million in the prior year quarter which is net of $11.6 million of intangible amortization and $2.7 million of non-recurring items. Adjusted operating income, excluding these non-cash and non-recurring items, was $29.1 million in the current quarter compared to $34.4 million in the year-ago quarter and $26.5 million in the fourth quarter of 2025.
- Net income was $0.4 million for the quarter compared to net income of $3.3 million in the year-ago quarter.
- Adjusted EBITDA was $37.8 million, or 7.6% of sales, compared to $42.8 million, or 9.0% of sales in the prior year quarter and $35.4 million or 7.4% of sales in the fourth quarter of 2025.
- Diluted net earnings per share was $0.01 for the quarter compared to diluted net earnings per share of $0.07 in the year-ago quarter. Non-GAAP adjusted diluted earnings per share was $0.24 compared to $0.31 for the same period a year ago and $0.18 for the fourth quarter of 2025.
- Cash used in operations was $20.4 million for the quarter. Uses of cash for the quarter included net capital expenditures of $5.6 million.
- The Company ended the quarter with total liquidity of $415.2 million, consisting of $65.0 million of cash (restricted and unrestricted) and $350.2 million available under its credit facility with net debt leverage of 3.8x.
- Completed the acquisition of Eastern Valve & Control Specialties Ltd., a provider of industrial valve products and related services supporting customers across Atlantic Canada.
See reconciliation of GAAP to non-GAAP measures in tables 2, 3 and 4.
About Distribution Solutions Group, Inc.
Distribution Solutions Group ("DSG") is a premier multi-platform specialty distribution company providing high touch, value-added distribution solutions to the maintenance, repair & operations (MRO), the original equipment manufacturer (OEM) and the industrial technologies markets. DSG was formed through the strategic combination of Lawson Products, a leader in MRO distribution of C-parts, Gexpro Services, a leading global supply chain services provider to manufacturing customers, and TestEquity, a leader in electronic test & measurement solutions.
Through its collective businesses, DSG is dedicated to helping customers lower their total cost of operation by increasing productivity and efficiency with the right products, expert technical support and fast, reliable delivery to be a one-stop solution provider. DSG serves approximately 220,000 customers in several diverse end markets supported by approximately 4,300 dedicated employees and strong vendor partnerships. DSG ships from strategically located distribution and service centers to customers in North America, Europe, Asia, South America and the Middle East.
For more information on Distribution Solutions Group, please visit www.distributionsolutionsgroup.com.
This release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the "safe-harbor" provisions under the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. The Terms "aim," "anticipate," "believe," "contemplates," "continues," "could," "ensure," "estimate," "expect," "forecasts," "if," "intend," "likely," "may," "might," "objective," "outlook," "plan," "positioned," "potential," "predict," "probable," "project," "shall," "should," "strategy," "will," "would," and variations of them and other words and terms of similar meaning and expression (and the negatives of such words and terms) are intended to identify forward-looking statements.
Forward-looking statements notice
Forward-looking statements can also be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations and involve inherent risks, uncertainties and assumptions, including factors that could delay, divert or change any of them, and could cause actual outcomes to differ materially from current expectations. DSG can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and DSG cautions readers not to place undue reliance on such statements. DSG undertakes no obligation to release publicly any revisions to forward-looking statements as a result of new information, future events or otherwise. Each forward-looking statement speaks only as of the date on which such statement is made, and DSG undertakes no obligation to update any such statement to reflect events or circumstances arising after such date. Actual results may differ materially from those projected as a result of certain risks and uncertainties. Factors that could cause or contribute to such differences or that might otherwise impact DSG's business, financial condition and results of operations include the risks that DSG may encounter difficulties integrating the business of DSG with the business of other companies that DSG has combined with or may otherwise combine with and that certain assumptions with respect to such business or transactions could prove to be inaccurate. Certain risks associated with DSG's business are also discussed from time to time in the reports DSG files with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K or other reports the Company may file from time to time with the Securities and Exchange Commission, which should be reviewed carefully.
-TABLES FOLLOW-
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share data)
| March 31, 2026 | December 31, 2025 |
|---|
| ASSETS | | |
| Current assets: | | |
| Cash and cash equivalents | $52,729 | $61,753 |
| Restricted cash | 12,268 | 13,573 |
| Accounts receivable, less allowances | 306,700 | 271,331 |
| Inventories | 373,512 | 353,374 |
| Prepaid expenses and other current assets | 45,699 | 46,893 |
| Total current assets | 790,908 | 746,924 |
| Property, plant and equipment, net | 126,792 | 126,605 |
| Rental equipment, net | 39,230 | 38,956 |
| Goodwill | 474,529 | 467,905 |
| Deferred tax asset, net | 2,205 | 1,196 |
| Customer relationships intangibles, net | 138,569 | 143,503 |
| Trade names and other intangibles, net | 79,542 | 82,552 |
| Cash value of life insurance | 21,424 | 21,567 |
| Right of use operating lease assets | 108,938 | 111,117 |
| Other assets | 7,867 | 8,296 |
| Total assets | $1,790,004 | $1,748,621 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | |
| Current liabilities: | | |
| Accounts payable | $167,929 | $151,234 |
| Current portion of long-term debt | 35,422 | 35,470 |
| Current portion of lease liabilities | 20,913 | 20,624 |
| Accrued expenses and other current liabilities | 76,830 | 84,137 |
| Total current liabilities | 301,094 | 291,465 |
| Long-term debt, less current portion, net | 696,668 | 664,196 |
| Lease liabilities | 96,412 | 98,821 |
| Deferred tax liability, net | 22,506 | 20,147 |
| Other liabilities | 25,217 | 24,645 |
| Total liabilities | 1,141,897 | 1,099,274 |
| Stockholders' equity: | | |
| Preferred stock, $1 par value: | | |
| Authorized - 500,000 shares, issued and outstanding - None | - | - |
| Common stock, $1 par value: | | |
| Authorized - 70,000,000 sharesIssued - 47,876,937 and 47,860,312 shares, respectivelyOutstanding - 46,192,457 and 46,180,700 shares, respectively | 46,192 | 46,180 |
| Capital in excess of par value | 688,619 | 686,183 |
| Retained deficit | (33,312) | (33,694) |
| Treasury stock - 1,684,480 and 1,679,612 shares, respectively | (44,063) | (43,998) |
| Accumulated other comprehensive income (loss) | (9,329) | (5,324) |
| Total stockholders' equity | 648,107 | 649,347 |
| Total liabilities and stockholders' equity | $1,790,004 | $1,748,621 |
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share data)
| Three Months Ended |
|---|
| March 31, |
|---|
| 2026 | 2025 |
|---|
| Revenue | $495,995 | | $478,029 | |
| Cost of goods sold | 332,656 | | 314,049 | |
| Gross profit | 163,339 | | 163,980 | |
| Selling, general and administrative expenses | 149,709 | | 143,883 | |
| Operating income (loss) | 13,630 | | 20,097 | |
| Interest expense | (12,171) | | (14,215) | |
| Change in fair value of earnout liabilities | - | | (1,000) | |
| Other income (expense), net | (702) | | 632 | |
| Income (loss) before income taxes | 757 | | 5,514 | |
| Income tax expense (benefit) | 375 | | 2,253 | |
| Net income (loss) | $382 | | $3,261 | |
| Basic income (loss) per share of common stock | $0.01 | | $0.07 | |
| Diluted income (loss) per share of common stock | $0.01 | | $0.07 | |
| Basic weighted average shares outstanding | | 46,190,598 | | 46,601,426 |
| Diluted weighted average shares outstanding | | 47,030,280 | | 47,400,378 |
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| Operating activities | | |
| Net income (loss) | $382 | | $3,261 | |
| Adjustments to reconcile to net cash used in operating activities: | | |
| Depreciation and amortization | 19,724 | | 19,979 | |
| Amortization of debt issuance costs | 439 | | 902 | |
| Stock-based compensation | 2,424 | | 974 | |
| Deferred income taxes | (31) | | 476 | |
| Change in fair value of earnout liabilities | - | | 1,000 | |
| (Gain) loss on sale of rental equipment | (1,438) | | (1,026) | |
| (Gain) loss on sale of property, plant and equipment | 80 | | (15) | |
| Charge for step-up of acquired inventory | 24 | | - | |
| Net realizable value adjustment and write-offs for obsolete and excess inventory | 1,135 | | 1,779 | |
| Bad debt expense | 1,007 | | 437 | |
| Changes in operating assets and liabilities, net of acquisitions: | | |
| Accounts receivable | (32,943) | | (29,587) | |
| Inventories | (21,251) | | (1,822) | |
| Prepaid expenses and other current assets | 102 | | (4,965) | |
| Accounts payable | 16,295 | | 7,735 | |
| Accrued expenses and other current liabilities | (5,926) | | (2,957) | |
| Other changes in operating assets and liabilities | (382) | | (933) | |
| Net cash provided by (used in) operating activities | (20,359) | | (4,762) | |
| Investing activities | | |
| Purchases of property, plant and equipment | (3,364) | | (5,646) | |
| Proceeds from sale of property, plant and equipment | - | | 990 | |
| Business acquisitions, net of cash acquired | (16,241) | | - | |
| Purchases of rental equipment | (5,548) | | (2,861) | |
| Proceeds from sale of rental equipment | 3,329 | | 2,464 | |
| Net cash provided by (used in) investing activities | (21,824) | | (5,053) | |
| Financing activities | | |
| Proceeds from revolving lines of credit | 139,496 | | 93,502 | |
| Payments on revolving lines of credit | (98,474) | | (65,334) | |
| Payments on term loans | (8,750) | | (10,063) | |
| Repurchase of common stock | 3 | | (11,203) | |
| Shares repurchased held in treasury | (70) | | - | |
| Stock option exercises | - | | 877 | |
| Payment of financing lease principal | (159) | | (146) | |
| Net cash provided by (used in) financing activities | 32,046 | | 7,633 | |
| Effect of exchange rate changes on cash and cash equivalents | (192) | | 493 | |
| Increase (decrease) in cash, cash equivalents and restricted cash | (10,329) | | (1,689) | |
| Cash, cash equivalents and restricted cash at beginning of period | 75,326 | | 81,726 | |
| Cash, cash equivalents and restricted cash at end of period | $64,997 | | $80,037 | |
| Cash and cash equivalents | $52,729 | | $65,442 | |
| Restricted cash | 12,268 | | 14,595 | |
| Total cash, cash equivalents and restricted cash | $64,997 | | $80,037 | |
| Three Months Ended |
|---|
| March 31, |
|---|
| 2026 | 2025 |
|---|
| Distribution Solutions Group, Inc. |
| Table 1 - Selected Segment Financial Data |
| (Dollars in thousands) |
| (Unaudited) |
| Revenue: | | |
| Lawson Products | $123,736 | | $120,462 | |
| Canada Branch Division | 51,022 | | 50,543 | |
| Gexpro Services | 117,648 | | 118,905 | |
| TestEquity | 204,176 | | 188,773 | |
| Intersegment revenue elimination | (587) | | (654) | |
| Total | $495,995 | | $478,029 | |
| Operating income (loss): | | |
| Lawson Products | $3,056 | | $6,316 | |
| Canada Branch Division | 386 | | 651 | |
| Gexpro Services | 8,401 | | 11,241 | |
| TestEquity | 4,047 | | 4,130 | |
| All Other | (2,260) | | (2,241) | |
| Total | $13,630 | | $20,097 | |
DISTRIBUTION SOLUTIONS GROUP, INC.
SEC REGULATION G GAAP RECONCILIATIONS
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, the Company's management believes that certain non-GAAP financial measures may provide users of this financial information with additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflections of underlying trends of the business because they provide a comparison of historical information that excludes certain non-operational or non-cash items that impact the overall comparability. See Tables below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 31, 2026 and 2025 and the three months ended December 31, 2025. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.
| Three Months Ended |
|---|
| March 31, | December 31, |
|---|
| 2026 | 2025 | 2025 |
|---|
| Distribution Solutions Group, Inc. |
| Table 2 - Reconciliation of GAAP Net Income (Loss) and GAAP Operating Income (Loss) to Non-GAAP Adjusted EBITDA |
| (Dollars in thousands) |
| (Unaudited) |
| Net income (loss) | $382 | | $3,261 | | $(6,371) | |
| Income tax expense (benefit) | 375 | | 2,253 | | 25 | |
| Other income (expense), net | 702 | | (632) | | 1,123 | |
| Change in fair value of earnout liabilities | - | | 1,000 | | - | |
| Interest expense | 12,171 | | 14,215 | | 12,944 | |
| Operating income (loss) | 13,630 | | 20,097 | | 7,721 | |
| Depreciation and amortization | 19,724 | | 19,979 | | 20,520 | |
| Stock-based compensation | 2,424 | | 974 | | 2,048 | |
| Severance and acquisition related retention expenses | 1,141 | | 1,628 | | 1,403 | |
| Acquisition related costs | 753 | | 108 | | 178 | |
| Inventory step-up | 24 | | - | | - | |
| Other non-recurring | 137 | | - | | 3,567 | |
| Non-GAAP adjusted EBITDA | $37,833 | | $42,786 | | $35,437 | |
| Operating income (loss) as a percent of revenue | | 2.7% | | 4.2% | | 1.6% |
| Adjusted EBITDA as a percent of revenue | | 7.6% | | 9.0% | | 7.4% |
(1)Expense (benefit) primarily for stock-based compensation, of which a portion varies with the Company's stock price.
(2)Includes severance expense for actions taken not related to a formal restructuring plan and acquisition related retention expenses.
(3)Transaction and integration costs related to acquisitions.
(4)Inventory fair value step-up adjustment for acquisition accounting related to acquisitions completed.
(5)Other non-recurring costs consist of certain non-recurring strategic projects and other non-recurring items.
| Three Months Ended |
|---|
| March 31, 2026 | March 31, 2025 | December 31, 2025 |
|---|
| Amount | Diluted EPS | Amount | Diluted EPS | Amount | Diluted EPS |
|---|
| Distribution Solutions Group, Inc. |
| Table 3 - Reconciliation of GAAP Net Income (Loss) and GAAP Diluted EPS to Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted EPS |
| (Dollars in thousands, except per share data) |
| (Unaudited) |
| Net income (loss) | $382 | $0.01 | $3,261 | $0.07 | $(6,371) | $(0.14) |
| Pretax adjustments: | | | | | | |
| Stock-based compensation | 2,424 | 0.05 | 974 | 0.02 | 2,048 | 0.04 |
| Acquisition related costs | 753 | 0.02 | 108 | - | 178 | - |
| Amortization of intangible assets | 11,004 | 0.23 | 11,585 | 0.24 | 11,600 | 0.25 |
| Severance and acquisition related retention expenses | 1,141 | 0.02 | 1,628 | 0.03 | 1,403 | 0.03 |
| Change in fair value of earnout liabilities | - | - | 1,000 | 0.02 | - | - |
| Inventory step-up | 24 | - | - | - | - | - |
| Other non-recurring | 137 | - | - | - | 3,567 | 0.08 |
| Total pretax adjustments | 15,483 | 0.32 | 15,295 | 0.31 | 18,796 | 0.40 |
| Tax effect on adjustments(1)/(3) | (4,423) | (0.09) | (4,044) | (0.07) | (5,020) | (0.10) |
| Deferred tax asset valuation allowance(3)/(4) | 47 | - | 190 | - | 1,085 | 0.02 |
| Non-GAAP adjusted net income | $11,489 | $0.24 | $14,702 | $0.31 | $8,490 | $0.18 |
(1)The adjustment to the income tax expense (benefit) is determined by excluding the non-GAAP adjustments by jurisdiction.
(2)Pretax adjustments to diluted EPS calculated on 47.030 million, 47.400 million and 46.199 million diluted shares for the first quarter of 2026 and 2025, and the fourth quarter of 2025, respectively.
(3)The quarter-to-date amounts are derived from the current period year-to-date amount less the previous quarter year-to-date amount.
(4)The estimated impact to the deferred tax asset valuation allowance from interest expense limitations under Section 163(j) determined by including the non-GAAP adjustments by jurisdiction.
| Three Months Ended |
|---|
| March 31, | December 31, |
|---|
| 2026 | 2025 | 2025 |
|---|
| Distribution Solutions Group, Inc. |
| Table 4 - Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Adjusted Operating Income |
| (Dollars in thousands) |
| (Unaudited) |
| Operating income (loss) | $13,630 | | $20,097 | | $7,721 | |
| Gross profit adjustments: | | | |
| Inventory step-up | 24 | | - | | - | |
| Total gross profit adjustments | 24 | | - | | - | |
| Selling, general and administrative expenses adjustments: | | | |
| Acquisition related costs | 753 | | 108 | | 178 | |
| Amortization of intangible assets | 11,004 | | 11,585 | | 11,600 | |
| Stock-based compensation | 2,424 | | 974 | | 2,048 | |
| Severance and acquisition related retention expenses | 1,141 | | 1,628 | | 1,403 | |
| Other non-recurring | 137 | | - | | 3,567 | |
| Total selling, general and administrative adjustments | 15,459 | | 14,295 | | 18,796 | |
| Total adjustments | 15,483 | | 14,295 | | 18,796 | |
| Non-GAAP adjusted operating income | $29,113 | | $34,392 | | $26,517 | |
(1)Inventory fair value step-up adjustment for acquisition accounting related to acquisitions completed.
(2)Transaction and integration costs related to acquisitions.
(3)Expense (benefit) primarily for stock-based compensation, of which a portion varies with the Company's stock price.
(4)Includes severance expense for actions taken not related to a formal restructuring plan and acquisition related retention expenses.
(5)Other non-recurring costs consist of certain non-recurring strategic projects and other non-recurring items.
| Lawson Products | Gexpro Services | TestEquity | Canada Branch Division | All Other | Eliminations | Consolidated DSG |
|---|
| Distribution Solutions Group, Inc. |
| Table 5 - Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Adjusted EBITDA |
| Q1 2026 and Q1 2025 |
| (Dollars in thousands) |
| (Unaudited) |
| Quarter Ended | Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 |
| Revenue from external customers | $123,689 | | $120,440 | | $117,543 | | $118,593 | | $203,764 | | $188,456 | | $50,999 | | $50,540 | | $ - | | $ - | | $ - | $ - | $495,995 | | $478,029 | |
| Intersegment revenue | 47 | | 22 | | 105 | | 312 | | 412 | | 317 | | 23 | | 3 | | - | | - | | (587) | (654) | - | | - | |
| Revenue | $123,736 | | $120,462 | | $117,648 | | $118,905 | | $204,176 | | $188,773 | | $51,022 | | $50,543 | | $ - | | $ - | | $(587) | $(654) | $495,995 | | $478,029 | |
| Operating income (loss) | $3,056 | | $6,316 | | $8,401 | | $11,241 | | $4,047 | | $4,130 | | $386 | | $651 | | $(2,260) | | $(2,241) | | | | $13,630 | | $20,097 | |
| Depreciation and amortization | 6,714 | | 6,552 | | 3,129 | | 3,453 | | 8,280 | | 8,128 | | 1,601 | | 1,846 | | - | | - | | | | 19,724 | | 19,979 | |
| Adjustments: | | | | | | | | | | | | | | |
| Acquisition related costs(1) | 24 | | 102 | | 36 | | 265 | | 50 | | (293) | | 643 | | - | | - | | 34 | | | | 753 | | 108 | |
| Stock-based compensation(2) | 938 | | 523 | | 365 | | - | | 688 | | 168 | | - | | - | | 433 | | 283 | | | | 2,424 | | 974 | |
| Severance and acquisition related retention expenses(3) | 745 | | 814 | | 96 | | 16 | | 181 | | 678 | | 119 | | 119 | | - | | 1 | | | | 1,141 | | 1,628 | |
| Inventory step-up(4) | - | | - | | - | | - | | - | | - | | 24 | | - | | - | | - | | | | 24 | | - | |
| Other non-recurring(5) | 92 | | - | | - | | - | | - | | - | | 45 | | - | | - | | - | | | | 137 | | - | |
| Non-GAAP adjusted EBITDA | $11,569 | | $14,307 | | $12,027 | | $14,975 | | $13,246 | | $12,811 | | $2,818 | | $2,616 | | $(1,827) | | $(1,923) | | | | $37,833 | | $42,786 | |
| Operating income (loss) as a percent of revenue | | 2.5% | | 5.2% | | 7.1% | | 9.5% | | 2.0% | | 2.2% | | 0.8% | | 1.3% | | N/M | | N/M | | | | 2.7% | | 4.2% |
| Adjusted EBITDA as a percent of revenue | | 9.3% | | 11.9% | | 10.2% | | 12.6% | | 6.5% | | 6.8% | | 5.5% | | 5.2% | | N/M | | N/M | | | | 7.6% | | 9.0% |
(1)Transaction and integration costs related to acquisitions.
(2)Expense (benefit) primarily for stock-based compensation, of which a portion varies with the Company's stock price.
(3)Includes severance expense from actions taken not related to a formal restructuring plan and acquisition related retention expenses.
(4)Inventory fair value step-up adjustment for acquisition accounting related to acquisitions completed.
(5)Other non-recurring costs consist of certain non-recurring strategic projects and other non-recurring items.
N/M - Not meaningful
Company:
Ronald J. Knutson
Executive Vice President, Chief Financial Officer and Treasurer
1-888-611-9888
Investor Relations:
Three Part Advisors, LLC
Steven Hooser / Sandy Martin
214-872-2710 / 214-616-2207