Distribution Solutions (DSGR) 10-Q 31 Oct 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Oct. 25, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	0-10546
Entity Registrant Name	DISTRIBUTION SOLUTIONS GROUP, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-2229304
Entity Address, Address Line One	301 Commerce Street
Entity Address, Address Line Two	Suite 1700
Entity Address, City or Town	Fort Worth,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76102
City Area Code	(888)
Local Phone Number	611-9888
Title of 12(b) Security	Common stock, $1.00 par value
Trading Symbol	DSGR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		46,837,880
Entity Central Index Key	0000703604
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 61,344	$ 83,931
Restricted cash	14,423	15,694
Accounts receivable, less allowances of $2,070 and $2,120, respectively	281,142	213,449
Inventories	347,018	315,984
Prepaid expenses and other current assets	63,427	28,272
Assets held for sale	3,358	0
Total current assets	770,712	657,330
Property, plant and equipment, net	128,927	113,811
Rental equipment, net	22,601	24,575
Goodwill	467,320	399,925
Deferred tax asset, net	0	95
Intangible assets, net	279,772	253,834
Cash value of life insurance	19,905	18,493
Right of use operating lease assets	89,806	76,340
Other assets	5,899	5,928
Total assets	1,784,942	1,550,331
Current liabilities:
Accounts payable	130,659	98,674
Current portion of long-term debt	42,078	32,551
Current portion of lease liabilities	19,287	13,549
Accrued expenses and other current liabilities	82,083	97,241
Total current liabilities	274,107	242,015
Long-term debt, less current portion, net	704,135	535,881
Lease liabilities	75,898	67,065
Deferred tax liability, net	26,203	18,326
Other liabilities	23,837	25,443
Total liabilities	1,104,180	888,730
Commitments and contingencies (Note 14)
Stockholders’ equity:
Preferred stock, $1 par value: Authorized - 500,000 shares, issued and outstanding — None	0	0
Common stock, $1 par value: Authorized - 70,000,000 shares Issued - 47,717,376 and 47,535,618 shares, respectively Outstanding - 46,837,880 and 46,758,359 shares, respectively	46,837	46,758
Capital in excess of par value	676,203	671,154
Retained deficit	(16,114)	(34,707)
Treasury stock – 879,496 and 777,259 shares, respectively	(19,552)	(16,434)
Accumulated other comprehensive income (loss)	(6,612)	(5,170)
Total stockholders’ equity	680,762	661,601
Total liabilities and stockholders’ equity	$ 1,784,942	$ 1,550,331

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Allowance for doubtful accounts	$ 2,070	$ 2,120
Stockholders’ equity:
Preferred stock, par value (in USD per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	500,000	500,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	70,000,000	70,000,000
Common stock, shares issued (in shares)	47,717,376	47,535,618
Common stock, shares outstanding (in shares)	46,837,880	46,758,359
Treasury stock (in shares)	879,496	777,259

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Revenue		$ 468,019	$ 438,909	$ 1,323,641	$ 1,165,163
Cost of goods sold		309,171	293,612	869,857	750,972
Gross profit		158,848	145,297	453,784	414,191
Selling, general and administrative expenses		139,901	132,514	417,896	370,911
Operating income (loss)		18,947	12,783	35,888	43,280
Interest expense		(15,160)	(12,895)	(39,780)	(30,057)
Change in fair value of earnout liabilities		(858)	667	(861)	646
Other income (expense), net		(15)	(1,133)	82	(2,869)
Income (loss) before income taxes		2,914	(578)	(4,671)	11,000
Income tax expense (benefit)		(19,007)	990	(23,264)	3,637
Net income (loss)		$ 21,921	$ (1,568)	$ 18,593	$ 7,363
Basic income (loss) per share of common stock (in USD per share)	[1]	$ 0.47	$ (0.03)	$ 0.40	$ 0.17
Diluted income (loss) per share of common stock (in USD per share)	[1]	$ 0.46	$ (0.03)	$ 0.39	$ 0.17
Comprehensive income (loss)
Net income (loss)		$ 21,921	$ (1,568)	$ 18,593	$ 7,363
Foreign currency translation adjustment		4,254	(3,579)	(1,442)	128
Other		0	464	0	(121)
Comprehensive income (loss)		$ 26,175	$ (4,683)	$ 17,151	$ 7,370
[1] (1) The accompanying Unaudited Condensed Consolidated Financial Statements and notes thereto have been retroactively adjusted to reflect the two-for-one stock split completed in August 2023. See Note 1 – Nature of Operations and Basis of Presentation for details.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical)		1 Months Ended
	Aug. 15, 2023	Aug. 31, 2023
Income Statement [Abstract]
Stock split ratio, common stock	2	2

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands		Total	Common Stock		Capital in Excess of Par Value		Retained Deficit	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2022	[1]		38,833,568
Beginning balance at Dec. 31, 2022		$ 562,995	$ 38,834	[1]	$ 572,379	[1]	$ (25,736)	$ (12,526)	$ (9,956)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		5,907					5,907
Foreign currency translation adjustment		2,624							2,624
Stock-based compensation		773			773	[1]
Stock-based compensation liability paid in shares		227			227	[1]
Shares issued (in shares)	[1]		22,288
Shares issued		0	$ 22	[1]	(22)	[1]
Shares issued - earnout (in shares)	[1]		3,400,000
Shares issued - earnout		0	$ 3,400	[1]	(3,400)	[1]
Tax withholdings related to net share settlements of stock-based compensation awards (in shares)	[1]		(5,278)
Tax withholdings related to net share settlements of stock-based compensation awards		(117)	$ (5)	[1]	5	[1]		(117)
Other		0			204	[1]	(4)		(200)
Ending balance (in shares) at Mar. 31, 2023	[1]		42,250,578
Ending balance at Mar. 31, 2023		572,409	$ 42,251	[1]	570,166	[1]	(19,833)	(12,643)	(7,532)
Beginning balance (in shares) at Dec. 31, 2022	[1]		38,833,568
Beginning balance at Dec. 31, 2022		562,995	$ 38,834	[1]	572,379	[1]	(25,736)	(12,526)	(9,956)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		7,363
Foreign currency translation adjustment		$ 128
Repurchase of common stock (in shares)		0
Ending balance (in shares) at Sep. 30, 2023	[1]		46,844,598
Ending balance at Sep. 30, 2023		$ 676,109	$ 46,845	[1]	670,287	[1]	(18,377)	(12,697)	(9,949)
Beginning balance (in shares) at Mar. 31, 2023	[1]		42,250,578
Beginning balance at Mar. 31, 2023		572,409	$ 42,251	[1]	570,166	[1]	(19,833)	(12,643)	(7,532)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		3,024					3,024
Foreign currency translation adjustment		1,083							1,083
Stock-based compensation		1,062			1,062	[1]
Issuance of common stock in rights offering, net of offering costs of $1,531 (in shares)	[1]		4,444,444
Issuance of common stock in rights offering, net of offering costs of $1,531		98,469	$ 4,444	[1]	94,025	[1]
Shares issued (in shares)	[1]		6,672
Shares issued		0	$ 7	[1]	(7)	[1]
Tax withholdings related to net share settlements of stock-based compensation awards (in shares)	[1]		(2,224)
Tax withholdings related to net share settlements of stock-based compensation awards		(54)	$ (2)	[1]	2	[1]		(54)
Other		0			385	[1]			(385)
Ending balance (in shares) at Jun. 30, 2023	[1]		46,699,470
Ending balance at Jun. 30, 2023		675,993	$ 46,700	[1]	665,633	[1]	(16,809)	(12,697)	(6,834)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(1,568)					(1,568)
Foreign currency translation adjustment		(3,579)							(3,579)
Stock-based compensation		1,119			1,119	[1]
Shares issued (in shares)	[1]		520
Shares issued		0	$ 1	[1]	(1)	[1]
Shares issued through employee share purchases (in shares)	[1]		144,608
Shares issued through employee share purchases		3,253	$ 144	[1]	3,109	[1]
Compensation expense related to employee share purchases		427			427	[1]
Other		464			0	[1]			464
Ending balance (in shares) at Sep. 30, 2023	[1]		46,844,598
Ending balance at Sep. 30, 2023		$ 676,109	$ 46,845	[1]	670,287	[1]	(18,377)	(12,697)	(9,949)
Beginning balance (in shares) at Dec. 31, 2023		46,758,359	46,758,359
Beginning balance at Dec. 31, 2023		$ 661,601	$ 46,758		671,154		(34,707)	(16,434)	(5,170)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(5,224)					(5,224)
Foreign currency translation adjustment		(3,138)							(3,138)
Stock-based compensation		998			998
Stock-based compensation liability paid in shares		870			870
Shares issued (in shares)			62,246
Shares issued		0	$ 62		(62)
Tax withholdings related to net share settlements of stock-based compensation awards (in shares)			(14,032)
Tax withholdings related to net share settlements of stock-based compensation awards		(449)	$ (14)		14			(449)
Ending balance (in shares) at Mar. 31, 2024			46,806,573
Ending balance at Mar. 31, 2024		$ 654,658	$ 46,806		672,974		(39,931)	(16,883)	(8,308)
Beginning balance (in shares) at Dec. 31, 2023		46,758,359	46,758,359
Beginning balance at Dec. 31, 2023		$ 661,601	$ 46,758		671,154		(34,707)	(16,434)	(5,170)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		18,593
Foreign currency translation adjustment		$ (1,442)
Repurchase of common stock (in shares)		(85,644)
Repurchases of common stock		$ (2,600)
Ending balance (in shares) at Sep. 30, 2024		46,837,880	46,837,880
Ending balance at Sep. 30, 2024		$ 680,762	$ 46,837		676,203		(16,114)	(19,552)	(6,612)
Beginning balance (in shares) at Mar. 31, 2024			46,806,573
Beginning balance at Mar. 31, 2024		654,658	$ 46,806		672,974		(39,931)	(16,883)	(8,308)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		1,896					1,896
Foreign currency translation adjustment		(2,558)							(2,558)
Stock-based compensation		1,080			1,080
Shares issued (in shares)			38,992
Shares issued		0	$ 39		(39)
Repurchase of common stock (in shares)			(55,844)
Repurchases of common stock		(1,683)	$ (56)		56			(1,683)
Tax withholdings related to net share settlements of stock-based compensation awards (in shares)			(2,561)
Tax withholdings related to net share settlements of stock-based compensation awards		(89)	$ (3)		3			(89)
Ending balance (in shares) at Jun. 30, 2024			46,787,160
Ending balance at Jun. 30, 2024		653,304	$ 46,786		674,074		(38,035)	(18,655)	(10,866)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		21,921					21,921
Foreign currency translation adjustment		4,254							4,254
Stock-based compensation		1,100			1,100
Shares issued (in shares)			80,520
Shares issued		1,080	$ 81		999
Repurchase of common stock (in shares)			(29,800)
Repurchases of common stock		$ (897)	$ (30)		30			(897)
Ending balance (in shares) at Sep. 30, 2024		46,837,880	46,837,880
Ending balance at Sep. 30, 2024		$ 680,762	$ 46,837		$ 676,203		$ (16,114)	$ (19,552)	$ (6,612)
[1] (1)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) $ in Thousands		1 Months Ended	3 Months Ended	9 Months Ended
	Aug. 15, 2023	Aug. 31, 2023	Jun. 30, 2023 USD ($) $ / shares	Sep. 30, 2024 USD ($) $ / shares	Sep. 30, 2023 USD ($) $ / shares	Jun. 30, 2024 $ / shares	Mar. 31, 2024 $ / shares	Dec. 31, 2023 $ / shares	Mar. 31, 2023 $ / shares	Dec. 31, 2022 $ / shares
Statement of Stockholders' Equity [Abstract]
Common stock, par value (in USD per share) | $ / shares			$ 1	$ 1	$ 1	$ 1	$ 1	$ 1	$ 1	$ 1
Offering costs | $			$ 1,531	$ 1,531	$ 1,531
Stock split ratio, common stock	2	2

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating activities
Net income (loss)	$ 18,593	$ 7,363
Adjustments to reconcile to net cash used in operating activities:
Depreciation and amortization	54,211	47,316
Amortization of debt issuance costs	2,093	1,662
Stock-based compensation	4,323	5,441
Compensation expense related to employee share purchases	0	427
Deferred income taxes	(2,814)	0
Change in fair value of earnout liabilities	861	(646)
(Gain) loss on sale of rental equipment	(1,586)	(1,929)
(Gain) loss on sale of property, plant and equipment	190	(86)
Charge for step-up of acquired inventory	1,760	2,866
Net realizable value adjustment and write-offs for obsolete and excess inventory	4,311	8,073
Bad debt expense	537	1,045
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(30,423)	(8,329)
Inventories	(981)	1,566
Prepaid expenses and other current assets	(33,335)	(7,288)
Accounts payable	14,091	10,552
Accrued expenses and other current liabilities	(20,183)	5,587
Other changes in operating assets and liabilities	(912)	433
Net cash provided by (used in) operating activities	10,736	74,053
Investing activities
Purchases of property, plant and equipment	(9,091)	(11,180)
Business acquisitions, net of cash acquired	(194,393)	(252,007)
Purchases of rental equipment	(5,703)	(7,735)
Proceeds from sale of rental equipment	3,795	4,202
Net cash provided by (used in) investing activities	(205,392)	(266,720)
Financing activities
Proceeds from revolving lines of credit	166,777	174,587
Payments on revolving lines of credit	(166,496)	(295,816)
Proceeds from term loans	200,000	305,000
Payments on term loans	(22,688)	(11,250)
Deferred financing costs	(2,064)	(3,419)
Proceeds from rights offering, net of offering costs of $1,531	0	98,469
Repurchase of common stock	(2,580)	0
Shares repurchased held in treasury	(538)	(171)
Proceeds from employees for share purchases	0	3,253
Payment of financing lease principal	(462)	(358)
Payment of earnout	0	(1,000)
Net cash provided by (used in) financing activities	171,949	269,295
Effect of exchange rate changes on cash and cash equivalents	(1,151)	(209)
Increase (decrease) in cash, cash equivalents and restricted cash	(23,858)	76,419
Cash, cash equivalents and restricted cash at beginning of period	99,625	24,740
Cash, cash equivalents and restricted cash at end of period	75,767	101,159
Cash and cash equivalents	61,344	80,456
Restricted cash	14,423	20,703
Total cash, cash equivalents and restricted cash	75,767	101,159
Supplemental disclosure of cash flow information
Net cash paid for income taxes	13,065	9,370
Net cash paid for interest	38,337	26,187
Net cash paid for interest on supply chain financing	2,121	1,753
Non-cash activities:
Additions of property, plant and equipment included in accounts payable	235	521
Right of use assets obtained in exchange for finance lease liabilities	390	396
Right of use assets obtained in exchange for operating lease liabilities	$ 10,807	$ 19,879

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Cash Flows [Abstract]
Offering costs	$ 1,531	$ 1,531	$ 1,531

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Nature of Operations and Basis of Presentation	Note 1 – Nature of Operations and Basis of Presentation Organization 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. Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to “DSG”, the “Company”, “we”, “our” or “us” refer to Distribution Solutions Group, Inc., and all entities consolidated in the accompanying unaudited condensed consolidated financial statements. Reportable Segments and Nature of Operations Change in Reportable Segments In connection with the Source Atlantic Transaction (as defined below) during the third quarter of 2024, the Company realigned its reportable segments to align with our business strategy and the manner in which our chief operating decision maker ("CODM") assesses performance and strategic execution and makes decisions regarding the allocation of resources. Prior to the third quarter of 2024, the Company had three reportable segments: Lawson, TestEquity and Gexpro Services. The Company also had an “All Other” category which included unallocated DSG holding company costs that were not directly attributable to the ongoing operating activities of our reportable segments and included the results of the Bolt Supply House (“Bolt”) non-reportable segment. Beginning in the third quarter of 2024, the Company has four reporting segments: Lawson, TestEquity, Gexpro Services and Canada Branch Division. Canada Branch Division includes the results of Bolt and Source Atlantic Limited (which we acquired during the third quarter of 2024 as described below). No changes were made to the Lawson, TestEquity and Gexpro Services reportable segments. The “All Other” category now includes only unallocated DSG holding company costs that are not directly attributable to the ongoing operating activities of our reportable segments. The segment realignment had no impact on our financial condition or results of operations. Prior period segment results have been recast to reflect our new reportable segments. Additional information regarding DSG’s reportable segments is presented in Note 16 – Segment Information. Nature of Operations A summary of the nature of operations for our reportable segments is presented below . Lawson is a distributor of specialty products and services to the industrial, commercial, institutional and governmental MRO marketplace. Lawson primarily distributes MRO products to its customers through a network of sales representatives and an inside sales channel throughout the United States and Canada. TestEquity is a distributor of test and measurement equipment and solutions, industrial and electronic production supplies, vendor managed inventory programs, and converting, fabrication and adhesive solutions from its leading manufacturer partners supporting the aerospace and defense, wireless and communication, semiconductors, industrial electronics and automotive, and electronics manufacturing industries. Gexpro Services is a global supply chain solutions provider, specializing in the development of mission critical production line management, aftermarket and field installation programs. Canada Branch Division combines the operations of our Bolt and Source Atlantic Limited subsidiaries, which distribute industrial MRO supplies, safety products, fasteners, and related value-add services to the Canadian MRO market primarily through the sale of products to its walk-up customers throu gh 38 branch loc ations. Recent Events Source Atlantic Acquisition On August 14, 2024 , DSG acquired all of the issued and outstanding capital stock of Source Atlantic Limited (“Source Atlantic” and the “Source Atlantic Transaction”). Source Atlantic, headquartered in Saint John, New Brunswick, Canada, is a wholesale distributor of industrial MRO supplies, safety products, fasteners, and related value-add services for the Canadian MRO market. The total purchase consideration exchanged was $103.1 million, net of cash acquired of $4.4 million . DSG funded the Source Atlantic Transaction with borrowings under its amended and restated credit facility (discussed below). Refer to Note 3 – Business Acquisitions for additional information about Source Atlantic and the Source Atlantic Transaction. Debt Amendment On August 14, 2024, the Company entered into the Third Amendment to Amended and Restated Credit Agreement (the “Third Amendment”). The Third Amendment provided for an additional $200 million incremental term loan and a $55 million increase in the senior secured revolving credit facility, and permits the Company to increase the commitments under the agreement from time to time by up to $300 million in the aggregate, subject to, among other things, receipt of additional commitments from existing and/or new lenders and pro forma compliance with certain financial covenants. Refer to Note 9 – Debt for additional information about DSG’s credit agreement. Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements 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, 2023 filed with the U.S. Securities and Exchange Commission (“SEC”). 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 and nine-month period ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. 2023 Stock Split: On August 15, 2023, DSG announced that its Board of Directors approved and declared a two-for-one stock split (the “Stock Split”), which entitled each stockholder of record as of the close of business on August 25, 2023 to receive one additional share of DSG common stock for each share of DSG common stock then-held. The additional shares were distributed after the close of trading on August 31, 2023, and shares of DSG common stock began trading at the split-adjusted basis on September 1, 2023. Accordingly, all share and per share amounts have been retroactively adjusted to reflect the impact of the Stock Split for all periods presented herein. Period-end Dates: The Company and its consolidated subsidiaries, except for the subsidiaries in the Gexpro Services segment, 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. For the quarter ended September 30, 2024, there was a two day difference in the period end. The consolidated financial statement impact of the two day difference arising from the different period ends for the quarter ended September 30, 2024 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies There were no significant changes to the Company’s accounting policies from those disclosed in DSG’s Annual Report on Form 10-K for the year ended December 31, 2023. See Note 2 of the 2023 consolidated financial statements included in DSG’s Annual Report on Form 10-K for the year ended December 31, 2023 for further details of the Company’s significant accounting policies. Recent Accounting Pronouncements - Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The pronouncement is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The adoption of ASU 2023-07 should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact that the adoption will have on its financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures to require greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid. The pronouncement is effective on a prospective basis for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of the adoption on its financial statement disclosures.

Business Acquisitions

Business Acquisitions	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Business Acquisitions	Note 3 – Business Acquisitions DSG and its operating companies acquired businesses during the first nine months of 2024 and the year ended December 31, 2023. The acquisitions were accounted for under ASC 805, the acquisition method of accounting. For each acquisition, the allocation of consideration exchanged to the assets acquired and liabilities assumed was based on estimated acquisition-date fair values. The final valuations will be completed within the one-year measurement period following the respective acquisition date, and any adjustments will be recorded in the period in which the adjustments are determined. 2024 Acquisitions Source Atlantic On August 14, 2024, DSG acquired all of the issued and outstanding capital stock of Source Atlantic for a purchase price of approximately $103.1 million, net of cash acquired of $4.4 million . Source Atlantic, headquartered in Saint John, New Brunswick, Canada, is a wholesale distributor of industrial MRO supplies, safety products, fasteners, and related value-add services for the Canadian MRO market. Source Atlantic has 24 branch locations across Canada with a heavy focus in Eastern Canada. Source Atlantic was acquired to expand DSG’s operating footprint in the Canadian market. The results of operations of Source Atlantic are included in the Canada Branch Division. The acquisition was funded with borrowings under the Company’s Amended Credit Agreement. Refer to Note 9 – Debt for information about the Amended Credit Agreement . The following table summarizes the preliminary allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed, including the allocation to other intangible assets acquired: Source Atlantic (in thousands) August 14, 2024 Acquisition Date Accounts receivable $ 33,679 Inventory 28,427 Other current assets 1,846 Property, plant and equipment 21,217 Right of use assets 6,780 Other intangible assets: Customer relationships 11,035 Trade names 10,012 Deferred tax liability, net of deferred tax asset (10,314) Accounts payable (17,857) Lease liabilities (6,780) Accrued expenses and other liabilities (5,422) Goodwill 30,518 Total purchase consideration exchanged, net of cash acquired $ 103,141 Cash consideration $ 98,756 Deferred consideration (1) 4,385 Total purchase consideration exchanged, net of cash acquired $ 103,141 (1) The Company paid $0.0 million of the Source Atlantic deferred consideration during the three and nine months ended September 30, 2024 . Certain estimated values for the Source Atlantic Transaction, including working capital and other liability adjustments, right of use assets, the valuation of intangibles and property, plant and equipment and income taxes are not yet finalized, and the preliminary purchase price allocation is subject to change as the Company completes its analysis of the fair value at the date of acquisition. The customer relationships and trade names intangible assets have estimated useful lives of 17 years and 8 years, respectively. Goodwill generated from the Source Atlantic Transaction is not deductible for tax purposes and is primarily attributable to the benefits we expect to derive from expected synergies, including expanded product and service offerings and cross-selling opportunities. S&S Automotive On May 1, 2024, DSG acquired all of the issued and outstanding capital stock of S&S Automotive Inc. (“S&S Automotive” and the “S&S Automotive Transaction”), with a purchase price of approximately $80.1 million, net of cash acquired of $0.7 million . S&S Automotive is a distributor of automotive, industrial, and safety supplies primarily to the automotive dealership market based near Chicago in Woodridge, Illinois. S&S Automotive was acquired to expand Lawson’s services and products to the automotive end market. Accordingly, the results of operations of S&S Automotive are included within the Lawson reportable segment. The acquisition was funded using DSG’s cash on hand and its revolving credit facility. The following table summarizes the preliminary allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed, including the allocation to other intangible assets acquired: S&S Automotive (in thousands) May 1, 2024 Acquisition Date Measurement Period Adjustments Adjusted Total Accounts receivable $ 4,100 $ — $ 4,100 Inventory 7,100 (203) 6,897 Other current assets 306 — 306 Property, plant and equipment 2,351 (117) 2,234 Right of use assets 7,581 — 7,581 Other intangible assets: Customer relationships 30,200 (6,700) 23,500 Trade names 12,200 (300) 11,900 Other assets 35 2 37 Accounts payable (1,120) — (1,120) Lease liabilities (7,604) — (7,604) Accrued expenses and other liabilities (1,989) — (1,989) Goodwill 26,892 7,318 34,210 Total purchase consideration exchanged, net of cash acquired $ 80,052 $ — $ 80,052 Cash consideration $ 78,659 $ — $ 78,659 Deferred consideration (1) 1,393 — 1,393 Total purchase consideration exchanged, net of cash acquired $ 80,052 $ — $ 80,052 (1) The Company paid $0.7 million of the S&S Automotive deferred consideration during the three and nine months ended September 30, 2024 . Certain estimated values for the Automotive Transaction, including working capital and other liability adjustments, right of use assets, the valuation of intangibles and property, plant and equipment and The customer relationships and trade names intangible assets have estimated useful lives of 17 years and 8 years, respectively. As a result of the S&S Automotive Transaction, the Company recorded tax deductible goodwill of $34.2 million in 2024 that may result in a tax benefit in future periods and is primarily attributable to the benefits we expect to derive from expected synergies, including expanded product and service offerings and cross-selling opportunities. Emergent Safety Supply On January 19, 2024, DSG acquired 100% of the certain assets of Safety Supply Illinois LLC, conducting business as Emergent Safety Supply (“ESS” and the “ESS Transaction”), with a purchase price of $9.9 million. ESS is a national distributor of safety products based near Chicago in Batavia, Illinois. ESS was acquired to expand Lawson’s safety product category. Accordingly, the results of operations of ESS are included within the Lawson reportable segment. The acquisition was funded using DSG’s cash on hand. The following table summarizes the preliminary allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed, including the allocation to other intangible assets acquired: Emergent Safety Supply (in thousands) January 19, 2024 Acquisition Date Measurement Period Adjustments Adjusted Total Accounts receivable $ 1,363 $ — $ 1,363 Inventory 1,399 — 1,399 Other current assets 10 — 10 Property, plant and equipment 228 — 228 Right of use assets 550 — 550 Other intangible assets: Customer relationships 2,700 100 2,800 Trade names 1,400 — 1,400 Other assets 11 — 11 Accounts payable (205) — (205) Lease liabilities (550) — (550) Accrued expenses and other liabilities (25) — (25) Goodwill 2,973 (100) 2,873 Total purchase consideration exchanged, net of cash acquired $ 9,854 $ — $ 9,854 Cash consideration $ 8,904 $ — $ 8,904 Deferred consideration (1) 950 — 950 Total purchase consideration exchanged, net of cash acquired $ 9,854 $ — $ 9,854 (1) The Company paid $0.2 million of the ESS deferred consideration during the three and nine months ended September 30, 2024 . Certain estimated values for the ESS Transaction, including the valuation of intangibles and property, plant and equipment, are not yet finalized, and the preliminary purchase price allocation is subject to change as the Company completes its analysis of the fair value at the date of acquisition. Following the initial fair value measurement, the Company updated the purchase price allocation for ESS primarily related to the ongoing review of the opening balance sheet and revised certain assumptions used in estimating the fair value. The adjustments resulted in a $0.1 million increase to customer relationships and a $0.1 million decrease to goodwill. The customer relationships and trade names intangible assets have estimated useful lives of 16 years and 8 years, respectively. As a result of the ESS Transaction, the Company recorded tax deductible goodwill of $2.9 million in 2024 that may result in a tax benefit in future periods and is primarily attributable to the benefits we expect to derive from expected synergies, including expanded product and service offerings and cross-selling opportunities. 2023 Acquisition On June 8, 2023, DSG acquired all of the issued and outstanding capital stock of HIS Company, Inc., a Texas corporation (“Hisco” and the “Hisco Transaction”), a distributor of specialty products serving industrial technology applications, pursuant to a Stock Purchase Agreement dated March 30, 2023 (the “Purchase Agreement”). In connection with this transaction, DSG combined the operations of TestEquity and Hisco, further expanding the product and service offerings at TestEquity, as well as all of our operating businesses under DSG. The results of operations of Hisco are included within the TestEquity reportable segment. The total purchase consideration exchanged for the Hisco Transaction was $267.2 million, net of cash acquired of $12.2 million, with a potential additional earn-out payment subject to Hisco achieving certain performance targets. Refer to Note 8 – Earnout Liabilities for additional information on the earn-out. Under the Purchase Agreement, DSG became obligated to pay $37.5 million in cash or DSG common stock in retention bonuses to certain Hisco employees that remain employed with Hisco or its affiliates for at least twelve months after the closing of the Hisco Transaction. Pursuant to the Purchase Agreement, the Company paid $1.8 million of the retention bonuses in 2023 and $34.6 million of the retention bonuses in the first nine months of 2024. The remaining balance of $1.1 million will be paid in 2025. Compensation expense is recorded over the service period for the retention bonuses as a component of Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Compensation expense inclusive of payroll taxes was $0.2 million and $16.2 million for the three and nine months ended September 30, 2024, respectively, and $10.1 million and $12.4 million for the three and nine months ended September 30, 2023, respectively. DSG funded the Hisco Transaction with borrowings under its Amended Credit Agreement and proceeds raised from the Rights Offering. Refer to Note 9 – Debt for information about the Amended Credit Agreement and Note 11 – Stockholders’ Equity for details on the Rights Offering. The Purchase Agreement allowed certain eligible Hisco employees to invest all or a portion of their respective closing payment in DSG common stock at $22.50 per share, up to an aggregate value of DSG common stock issued to such eligible Hisco employees of $25.0 million. During the third quarter of 2023, the Company issued 144,608 shares of DSG common stock to the eligible Hisco employees and received approximately $3.3 million. During the third quarter of 2023, approximately $0.4 million was recorded as compensation expense for the discount between the prevailing market price of the DSG common stock on the date of purchase and the purchase price of $22.50 per share as a component of Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The following table summarizes the allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed, including the allocation to other intangible assets acquired: Hisco (in thousands) June 8, 2023 Measurement Period Adjustments Adjusted Total Accounts receivable (1) $ 66,792 $ (2,269) $ 64,523 Inventory 61,300 (645) 60,655 Other current assets 3,858 350 4,208 Property, plant and equipment 48,326 — 48,326 Right of use assets 21,102 1,188 22,290 Other intangible assets: Customer relationships 41,800 (1,800) 40,000 Trade names 25,600 (300) 25,300 Deferred tax liability, net of deferred tax asset (2,544) 81 (2,463) Other assets 2,495 — 2,495 Accounts payable (16,689) — (16,689) Lease liabilities (22,372) 293 (22,079) Accrued expenses and other liabilities (8,961) (289) (9,250) Goodwill 49,718 122 49,840 Total purchase consideration exchanged, net of cash acquired $ 270,425 $ (3,269) $ 267,156 Cash consideration $ 252,007 $ — $ 252,007 Deferred consideration (2) 12,418 2,631 15,049 Contingent consideration 6,000 (5,900) 100 Total purchase consideration exchanged, net of cash acquired $ 270,425 $ (3,269) $ 267,156 (1) Accounts receivable had an estimated fair value of $64.5 million and a gross contractual value of $66.8 million. The difference represents the Company’s best estimate of the contractual cash flows that will not be collected. (2) The Company paid $7.2 million of the Hisco deferred consideration during the first half of 2024 and $7.8 million during 2023. As of June 30, 2024 and September 30, 2024, there is no deferred consideration remaining. Following the initial fair value measurement, the Company updated the purchase price allocation for Hisco primarily related to the ongoing review of the opening balance sheet and contractual working capital adjustments and revised certain assumptions used in estimating the fair value of the contingent consideration. During 2023 and 2024, the adjustments to these balances resulted in a $0.1 million increase to goodwill and a $3.3 million decrease to the total purchase consideration, net of cash acquired. The accounting for the Hisco Transaction was completed during the second quarter of 2024. The customer relationships and trade names intangible assets have estimated useful lives of 12 years and 8 years, respectively. As a result of the Hisco Transaction, the Company recorded tax deductible goodwill of $41.4 million in 2023 that may result in a tax benefit in future periods and is primarily attributable to the benefits we expect to derive from expected synergies, including expanded product and service offerings and cross-selling opportunities. Unaudited Pro Forma Information The following table presents estimated unaudited pro forma consolidated financial information for DSG as if the acquisitions disclosed above occurred on January 1, 2023, for the acquisitions completed during 2024 and January 1, 2022 for the acquisition completed during 2023. The unaudited pro forma information reflects adjustments including amortization on acquired intangible assets, interest expense, and the related tax effects. This information is presented for informational purposes only and is not necessarily indicative of future results or the results that would have occurred had the acquisitions been completed on the date indicated. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Revenue $ 492,144 $ 497,808 $ 1,457,666 $ 1,527,432 Net income $ 21,465 $ (3,040) $ 17,734 $ 9,438 Actual Results of Business Acquisitions The following table presents actual results attributable to our acquisitions that were included in the unaudited condensed consolidated financial statements for the third quarter and first nine months of 2024 and 2023. The results for these acquisitions are only included subsequent to their respective acquisition dates provided above. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Revenue $ 38,137 $ 104,796 $ 50,537 $ 132,797 Net income $ 3,916 $ (7,388) $ 3,505 $ (8,253) The Company incurred transaction and integration costs (credits) related to completed and contemplated acquisitions of $2.9 million and $8.5 million for the three and nine months ended September 30, 2024, respectively, and $(0.1) million and $9.1 million for the three and nine months ended September 30, 2023, respectively, which are included in Selling, general and administrative expenses in the Unaudited

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 4 – Revenue Recognition Disaggregation of Revenue The Company’s revenue is primarily comprised of product sales to customers. The Company has disaggregated revenue by geographic area and by segment as it most reasonably depicts the amount, timing and uncertainty of revenue and cash flows generated from our contracts with customers. Disaggregated consolidated revenue by geographic area (based on the location to which the product is shipped to): Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 United States $ 357,164 $ 344,920 $ 1,041,059 $ 936,289 Canada 55,912 35,727 116,278 108,380 Europe 13,853 20,805 44,700 55,261 Pacific Rim 4,958 2,477 13,447 5,468 Latin America 33,560 31,971 100,740 52,839 Other 2,987 3,009 8,895 6,926 Intersegment revenue elimination (415) — (1,478) — Total revenue $ 468,019 $ 438,909 $ 1,323,641 $ 1,165,163 See Note 16 – Segment Information for disaggregation of revenue by segment. Rental Revenue TestEquity rents new and used electronic test and measurement equipment to customers in multiple industries. Lawso n leases parts washer machines to customers. This leased equipment is included in Rental equipment, net in the Unaudited Condensed Consolidated Balance Sheets, and rental revenue is included in Revenue in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) . The unearned rental revenue related to customer prepayments on equipment leases was nominal at September 30, 2024 and December 31, 2023 . Rental revenue from operating leases: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Revenue from operating leases $ 4,115 $ 4,323 $ 12,525 $ 12,831

Supplemental Financial Statemen

Supplemental Financial Statement Information	9 Months Ended
	Sep. 30, 2024
Condensed Financial Information Disclosure [Abstract]
Supplemental Financial Statement Information	Note 5 – Supplemental Financial Statement Information Restricted Cash The Company has agreed to maintain restricted cash of $14.4 million under agreements with outside parties. During 2024, escrow accounts of $6.7 million were established in conjunction with certain business acquisitions, to be released upon meeting certain working capital and other post-closing requirements as of the one-year post-acquisition dates with a balance of $5.9 million at September 30, 2024 . The Company is restricted from withdrawing this balance without the prior consent of the sellers. The remaining restricted cash balance of $8.5 million represents collateral for certain borrowings under the Amended Credit Agreement, and the Company is restricted from withdrawing this balance without the prior consent of the respective lenders. Assets Held for Sale As of September 30, 2024, the Company had $3.4 million of Assets held for sale within the Condensed Consolidated Balance Sheets for a property committed for sale. This balance represents the carrying value of the property. No gain or loss has been recognized as the carrying amount was less than the anticipated fair value expected to be received upon sale. The sale is expected to be completed within the next twelve months. Property, Plant and Equipment, net Components of property, plant and equipment, net were as follows: (in thousands) September 30, 2024 December 31, 2023 Land $ 16,656 $ 16,916 Buildings and improvements 64,978 50,376 Machinery and equipment 55,159 48,844 Capitalized software 12,236 9,148 Furniture and fixtures 13,269 11,022 Vehicles 5,891 1,738 Construction in progress (1) 4,413 6,025 Total 172,602 144,069 Accumulated depreciation and amortization (43,675) (30,258) Property, plant and equipment, net $ 128,927 $ 113,811 (1) Construction in progress primarily relates to upgrades to certain of the Company’s information technology systems and distribution facilities that we expect to place in service in the next 12 months. Depreciation expense for property, plant and equipment and amortization expense for capitalized software, which are included in Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Depreciation expense for property, plant and equipment $ 4,125 $ 3,490 $ 11,625 $ 9,540 Amortization expense for capitalized software $ 834 $ 473 $ 2,503 $ 1,975 Rental Equipment, net Rental equipment, net consisted of the following: (in thousands) September 30, 2024 December 31, 2023 Rental equipment $ 47,109 $ 52,387 Accumulated depreciation (24,508) (27,812) Rental equipment, net $ 22,601 $ 24,575 Depreciation expense for rental equipment, which is included in Cost of goods sold in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), was as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Depreciation expense for rental equipment $ 1,693 $ 1,739 $ 5,159 $ 5,936 Refer to Note 4 – Revenue Recognition for a discussion on the Company’s activities as lessor Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: (in thousands) September 30, 2024 December 31, 2023 Accrued compensation $ 23,829 $ 25,371 Accrued and withheld taxes, other than income taxes 10,805 8,661 Deferred acquisition payments and accrued earnout liabilities 6,828 7,513 Accrued customer rebates 5,687 5,473 Deferred revenue 4,391 810 Accrued severance and acquisition related retention bonus 4,390 21,128 Accrued stock-based compensation 2,530 5,573 Accrued interest 2,283 3,301 Accrued health benefits 2,270 1,728 Accrued income taxes 1,754 1,994 Other 17,316 15,689 Total accrued expenses and other current liabilities $ 82,083 $ 97,241 Other Liabilities Other liabilities consisted of the following: (in thousands) September 30, 2024 December 31, 2023 Security bonus plan $ 7,564 $ 8,666 Deferred compensation 11,848 11,041 Other 4,425 5,736 Total other liabilities $ 23,837 $ 25,443

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Note 6 – Goodwill and Intangible Assets Goodwill Changes in the carrying amount of goodwill by segment were as follows: (in thousands) Lawson TestEquity Gexpro Services Canada Branch Division Total Balance at December 31, 2023 $ 155,915 $ 164,990 $ 55,743 $ 23,277 $ 399,925 Acquisitions (1) 37,083 (110) — 30,518 67,491 Impact of foreign exchange rates (141) — 172 (127) (96) Balance at September 30, 2024 $ 192,857 $ 164,880 $ 55,915 $ 53,668 $ 467,320 (1) Refer to Note 3 – Business Acquisitions for information related to measurement period adjustments. Intangible Assets The gross carrying amount and accumulated amortization for definite-lived intangible assets were as follows: September 30, 2024 December 31, 2023 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 141,323 $ (41,435) $ 99,888 $ 117,881 $ (30,093) $ 87,788 Customer relationships 270,933 (93,577) 177,356 233,513 (71,215) 162,298 Other (1) 8,296 (5,768) 2,528 8,011 (4,263) 3,748 Total $ 420,552 $ (140,780) $ 279,772 $ 359,405 $ (105,571) $ 253,834 (1) Other primarily consists of non-compete agreements. Amortization expense for definite-lived intangible assets is included in Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Amortization expense for intangible assets $ 11,972 $ 11,308 $ 34,924 $ 29,865 The estimated aggregate amortization expense for the remaining year 2024 and each of the next four years and thereafter are as follows: (in thousands) Amortization Remaining 2024 $ 12,280 2025 45,770 2026 42,902 2027 37,971 2028 33,770 Thereafter 107,079 Total $ 279,772

Leases

Leases	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Leases	Note 7 – Leases The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The components of lease cost were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Lease Type Classification 2024 2023 2024 2023 Operating lease expense (1) Operating expenses $ 5,528 $ 5,850 $ 17,344 $ 14,980 Financing lease amortization Operating expenses 171 133 436 393 Financing lease interest Interest expense 29 23 78 65 Financing lease expense 200 156 514 458 Sublease income (2) (160) — (266) — Net lease cost $ 5,568 $ 6,006 $ 17,592 $ 15,438 (1) Includes short-term lease expense, which is immaterial. (2) The Company subleases one of its leased properties with a remaining lease term of approximately 2 years that terminates on June 30, 2026. Sublease income is recognized on a straight-line basis over the sublease agreement and is recorded as an offset to operating lease expense. The value of net assets and liabilities related to our operating and finance leases as of September 30, 2024 and December 31, 2023 was as follows (in thousands): Lease Type September 30, 2024 December 31, 2023 Total right of use operating lease assets $ 89,806 $ 76,340 Total right of use financing lease assets 1,419 1,560 Total lease assets $ 91,225 $ 77,900 Total current operating lease obligation $ 18,793 $ 13,010 Total current financing lease obligation 494 539 Total current lease obligation $ 19,287 $ 13,549 Total long-term operating lease obligation $ 75,093 $ 66,234 Total long-term financing lease obligation 805 831 Total long-term lease obligation $ 75,898 $ 67,065 The value of lease liabilities related to our operating and finance leases and sublease income as of September 30, 2024 was as follows (in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Sublease Income Remaining 2024 $ 6,445 $ 160 $ 6,605 $ 157 2025 24,427 533 24,960 640 2026 20,298 435 20,733 326 2027 17,345 203 17,548 — 2028 14,688 96 14,784 — Thereafter 36,912 15 36,927 — Total lease payments 120,115 1,442 121,557 1,123 Less: Interest (26,229) (143) (26,372) — Present value of lease liabilities $ 93,886 $ 1,299 $ 95,185 $ 1,123 The weighted average lease terms and interest rates of leases held as of September 30, 2024 and December 31, 2023 were as follows: September 30, 2024 December 31, 2023 Operating Leases Finance Leases Operating Leases Finance Leases Weighted average remaining lease term 5.8 years 3.5 years 6.6 years 2.8 years Weighted average interest rate 7.7% 7.5% 7.8% 7.1% The cash outflows of leasing activity for the nine months ended September 30, 2024 and 2023 were as follows (in thousands): Nine Months Ended September 30, Cash Flow Source Classification 2024 2023 Operating cash flows from operating leases Operating activities $ (15,516) $ (9,083) Operating cash flows from financing leases Operating activities (77) (186) Financing cash flows from financing leases Financing activities (462) (358) Refer to Note 4 – Revenue Recognition f or a discussion on the Company’s activities as lessor.
Leases	Note 7 – Leases The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The components of lease cost were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Lease Type Classification 2024 2023 2024 2023 Operating lease expense (1) Operating expenses $ 5,528 $ 5,850 $ 17,344 $ 14,980 Financing lease amortization Operating expenses 171 133 436 393 Financing lease interest Interest expense 29 23 78 65 Financing lease expense 200 156 514 458 Sublease income (2) (160) — (266) — Net lease cost $ 5,568 $ 6,006 $ 17,592 $ 15,438 (1) Includes short-term lease expense, which is immaterial. (2) The Company subleases one of its leased properties with a remaining lease term of approximately 2 years that terminates on June 30, 2026. Sublease income is recognized on a straight-line basis over the sublease agreement and is recorded as an offset to operating lease expense. The value of net assets and liabilities related to our operating and finance leases as of September 30, 2024 and December 31, 2023 was as follows (in thousands): Lease Type September 30, 2024 December 31, 2023 Total right of use operating lease assets $ 89,806 $ 76,340 Total right of use financing lease assets 1,419 1,560 Total lease assets $ 91,225 $ 77,900 Total current operating lease obligation $ 18,793 $ 13,010 Total current financing lease obligation 494 539 Total current lease obligation $ 19,287 $ 13,549 Total long-term operating lease obligation $ 75,093 $ 66,234 Total long-term financing lease obligation 805 831 Total long-term lease obligation $ 75,898 $ 67,065 The value of lease liabilities related to our operating and finance leases and sublease income as of September 30, 2024 was as follows (in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Sublease Income Remaining 2024 $ 6,445 $ 160 $ 6,605 $ 157 2025 24,427 533 24,960 640 2026 20,298 435 20,733 326 2027 17,345 203 17,548 — 2028 14,688 96 14,784 — Thereafter 36,912 15 36,927 — Total lease payments 120,115 1,442 121,557 1,123 Less: Interest (26,229) (143) (26,372) — Present value of lease liabilities $ 93,886 $ 1,299 $ 95,185 $ 1,123 The weighted average lease terms and interest rates of leases held as of September 30, 2024 and December 31, 2023 were as follows: September 30, 2024 December 31, 2023 Operating Leases Finance Leases Operating Leases Finance Leases Weighted average remaining lease term 5.8 years 3.5 years 6.6 years 2.8 years Weighted average interest rate 7.7% 7.5% 7.8% 7.1% The cash outflows of leasing activity for the nine months ended September 30, 2024 and 2023 were as follows (in thousands): Nine Months Ended September 30, Cash Flow Source Classification 2024 2023 Operating cash flows from operating leases Operating activities $ (15,516) $ (9,083) Operating cash flows from financing leases Operating activities (77) (186) Financing cash flows from financing leases Financing activities (462) (358) Refer to Note 4 – Revenue Recognition f or a discussion on the Company’s activities as lessor.
Leases	Note 7 – Leases The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The components of lease cost were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Lease Type Classification 2024 2023 2024 2023 Operating lease expense (1) Operating expenses $ 5,528 $ 5,850 $ 17,344 $ 14,980 Financing lease amortization Operating expenses 171 133 436 393 Financing lease interest Interest expense 29 23 78 65 Financing lease expense 200 156 514 458 Sublease income (2) (160) — (266) — Net lease cost $ 5,568 $ 6,006 $ 17,592 $ 15,438 (1) Includes short-term lease expense, which is immaterial. (2) The Company subleases one of its leased properties with a remaining lease term of approximately 2 years that terminates on June 30, 2026. Sublease income is recognized on a straight-line basis over the sublease agreement and is recorded as an offset to operating lease expense. The value of net assets and liabilities related to our operating and finance leases as of September 30, 2024 and December 31, 2023 was as follows (in thousands): Lease Type September 30, 2024 December 31, 2023 Total right of use operating lease assets $ 89,806 $ 76,340 Total right of use financing lease assets 1,419 1,560 Total lease assets $ 91,225 $ 77,900 Total current operating lease obligation $ 18,793 $ 13,010 Total current financing lease obligation 494 539 Total current lease obligation $ 19,287 $ 13,549 Total long-term operating lease obligation $ 75,093 $ 66,234 Total long-term financing lease obligation 805 831 Total long-term lease obligation $ 75,898 $ 67,065 The value of lease liabilities related to our operating and finance leases and sublease income as of September 30, 2024 was as follows (in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Sublease Income Remaining 2024 $ 6,445 $ 160 $ 6,605 $ 157 2025 24,427 533 24,960 640 2026 20,298 435 20,733 326 2027 17,345 203 17,548 — 2028 14,688 96 14,784 — Thereafter 36,912 15 36,927 — Total lease payments 120,115 1,442 121,557 1,123 Less: Interest (26,229) (143) (26,372) — Present value of lease liabilities $ 93,886 $ 1,299 $ 95,185 $ 1,123 The weighted average lease terms and interest rates of leases held as of September 30, 2024 and December 31, 2023 were as follows: September 30, 2024 December 31, 2023 Operating Leases Finance Leases Operating Leases Finance Leases Weighted average remaining lease term 5.8 years 3.5 years 6.6 years 2.8 years Weighted average interest rate 7.7% 7.5% 7.8% 7.1% The cash outflows of leasing activity for the nine months ended September 30, 2024 and 2023 were as follows (in thousands): Nine Months Ended September 30, Cash Flow Source Classification 2024 2023 Operating cash flows from operating leases Operating activities $ (15,516) $ (9,083) Operating cash flows from financing leases Operating activities (77) (186) Financing cash flows from financing leases Financing activities (462) (358) Refer to Note 4 – Revenue Recognition f or a discussion on the Company’s activities as lessor.

Earnout Liabilities

Earnout Liabilities	9 Months Ended
	Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Earnout Liabilities	Note 8 – Earnout Liabilities Hisco Acquisition The Hisco Transaction included a potential earn-out payment of up to $12.6 million, subject to Hisco achieving certain performance targets. The earn-out payment was to be calculated based on the gross profit of Hisco and its affiliates for the twelve months ended October 31, 2023, subject to certain adjustments and exclusions set forth in the Purchase Agreement. The fair value of the contingent consideration arrangement was classified as a Level 3 instrument and was determined using a probability-based scenario analysis approach. As of June 8, 2023 (the Hisco Transaction date) and December 31, 2023, the fair value of the earn-out was $0.1 million and $0.0 million, respectively, with amounts recorded in Accrued expenses and other current liabilities in the Unaudited Condensed Consolidated Balance Sheets. As the performance targets were not achieved, no earn-out payment was made. Frontier Acquisition On March 31, 2022, Gexpro Services acquired Frontier Technologies Brewton, LLC and Frontier Engineering and Manufacturing Technologies, Inc. ("Frontier"). The consideration for the Frontier acquisition includes a potential earn-out payment of up to $3.0 million based upon the achievement of certain milestones and relative thresholds during the earn-out measurement period, which ends on December 31, 2024, with payments made annually beginning in 2023 and ending in 2025. During the first quarter of 2023, a $1.0 million earn-out payment was made based on the achievement of certain milestones in 2022. The fair value of the contingent consideration arrangement was classified as a Level 3 instrument and was determined using a probability-based scenario analysis approach. As of March 31, 2022 (the Frontier acquisition date), December 31, 2023 and September 30, 2024, the fair value of the earn-out was $0.9 million, $0.0 million and $0.9 million, respectively, with amounts recorded in Accrued expenses and other current liabilities in the Unaudited Condensed Consolidated Balance Sheets.

Debt

Debt	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Debt	Note 9 – Debt The Company’s outstanding long-term debt was comprised of the following: (in thousands) September 30, 2024 December 31, 2023 Senior secured revolving credit facility $ 778 $ — Senior secured term loan 218,750 228,125 Senior secured delayed draw term loan 45,000 46,875 Incremental term loans 485,938 297,375 Other revolving line of credit 1,827 2,301 Total debt 752,293 574,676 Less: current portion of long-term debt (42,078) (32,551) Less: deferred financing costs (6,080) (6,244) Total long-term debt $ 704,135 $ 535,881 On August 14, 2024, the Company entered into the Third Amendment to Amended and Restated Credit Agreement (the “Third Amendment”), which amended the previous credit agreement dated as of April 1, 2022 (as amended by the First Amendment dated June 8, 2023, the Second Amendment dated June 13, 2024 and the Third Amendment, the “Amended Credit Agreement”), by and among the Company, certain subsidiaries of the Company as borrowers or guarantors, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. The Third Amendment provided for an additional $200 million incremental term loan and an increase in the senior secured revolving credit facility from $200 million to $255 million. As amended, the Amended Credit Agreement provides for (i) a $255 million senior secured revolving credit facility, with a $25 million letter of credit sub-facility and a $10 million swingline loan sub-facility, (ii) a $250 million senior secured initial term loan facility, (iii) $505 million of incremental term loans, (iv) a $50 million senior secured delayed draw term loan facility and (v) the Company to increase the commitments thereunder from time to time by up to $300 million in the aggregate, subject to, among other things, the receipt of additional commitments from existing and/or new lenders and pro forma compliance with the certain financial covenants. The additional borrowings under the Third Amendment were used, among other things, to pay the purchase price, fees and other expenses incurred in connection with the acquisition of Source Atlantic. Refer to Note 3 – Business Acquisitions for further details about the acquisition of Source Atlantic. Each of the loans under the Amended Credit Agreement mature on April 1, 2027. The Company is required to repay principal of approximately $10.1 million each quarter. Future maturities of long-term debt are $40.3 million per year payable in equal quarterly installments in 2024, 2025 and 2026, with the remaining balance of $659.1 million due in 2027 upon maturity. Net of outstanding letters of credit, there w as $252.2 million of borrowi ng availability under the revolving credit facility as of September 30, 2024. The Second Amendment dated June 13, 2024 replaced a specified benchmark interest rate for certain loans under the Amended Credit Agreement, whereby effective June 28, 2024, the CDOR Rate was replaced with the CORRA Rate (each as defined in the Amended Credit Agreement). The additional margin range did not change. As amended, loans under the Amended Credit Agreement bear interest, at the Company’s option, at a rate equal to (i) the Alternate Base Rate or the Canadian Prime Rate (each as defined in the Amended Credit Agreement), plus, in each case, an additional margin ranging from 0.0% to 1.75% per annum, depending on the total net leverage ratio of the Company and its restricted subsidiaries as of the most recent determination date under the Amended Credit Agreement or (ii) the Adjusted Term SOFR Rate (as defined in the Amended Credit Agreement) or the CORRA Rate, plus, in each case, an additional margin ranging from 1.0% to 2.75% per annum, depending on the total net leverage ratio of the Company and its restricted subsidiaries as of the most recent determination date under the Amended Credit Agreement. During the third quarter of 2024, the Company incurred deferred financing costs of $1.8 million associated with the Third Amendment. Deferred financing costs of $3.4 million were incurred during 2023 in connection with the First Amendment dated June 8, 2023, and deferred financing costs of $4.0 million were incurred during 2022 in connection with the previous credit agreement. Deferred financing costs are amortized over the life of the debt instrument and reported as a component of Interest expense in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Amortization of deferred financing costs was $0.8 million and $2.1 million for the three and nine months September 30, 2024, respectively, and $0.7 million and $1.7 million for the three and nine months ended September 30, 2023, respectively. As of September 30, 2024, total deferred financing costs net of accumulated amortization were $8.3 million of which $6.1 million are included in Long-term debt, less current portion, net (related to the senior secured term loan, senior secured delayed draw term loan and incremental term loans) and $2.2 million are included in Other assets (related to the senior secured revolving credit facility) in the Unaudited Condensed Consolidated Balance Sheets. Subject to certain exceptions as set forth in the Amended Credit Agreement, the obligations of the Company and its U.S. subsidiaries under the Amended Credit Agreement are guaranteed by the Company and certain of the Company’s U.S. subsidiaries and the obligations of each of the Company’s Canadian subsidiaries under the Amended Credit Agreement are guaranteed by the Company and certain of its U.S. and Canadian subsidiaries. Subject to certain exceptions as set forth in the Amended Credit Agreement, the obligations under the Amended Credit Agreement are secured by a first priority security interest in and lien on substantially all assets of the Company, each other borrower and each guarantor. The Amended Credit Agreement contains various covenants, including financial maintenance covenants requiring the Company to maintain compliance with a consolidated minimum interest coverage ratio and a maximum total net leverage ratio, each determined in accordance with the terms of the Amended Credit Agreement. The Amended Credit Agreement contains various events of default (subject to exceptions, thresholds and grace periods as set forth in the Amended Credit Agreement). Under certain circumstances, a default interest rate will apply on all obligations at a rate equal to 2.0% per annum above the applicable interest rate. The Company was in compliance with all financial covenants as of September 30, 2024.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 10 – Stock-Based Compensation The Company recorded stock-based compensation expense of $2.4 million and $4.3 million for the three and nine months ended September 30, 2024, respectively, and expense of $1.0 million and $5.4 million for the three and nine months ended September 30, 2023, respectively, in Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) . A portion of the Company’s stock-based awards are liability-classified. Accordingly, changes in the market value of DSG common stock may result in stock-based compensation expense or benefit in certain periods. A stock-based compensation liability of $2.5 million a s of September 30, 2024 and $5.6 million as of December 31, 2023 was included in Accrued expenses and other current liabilities in the Unaudited Condensed Consolidated Balance Sheets. Restricted Stock Awards During the quarter ended June 30, 2024 , the Company issued approximately 117,000 Restricted stock awards ("RSAs") that vest over one

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Stockholders' Equity	Note 11 – Stockholders’ Equity Rights Offering The Company completed a subscription rights offering on May 30, 2023 (the “Rights Offering”) that raised gross proceeds of approximately $100.0 million and resulted in the issuance of 4,444,444 shares of DSG common stock at a purchase price of $22.50 per share. Net proceeds were approximately $98.5 million after transaction costs of $1.5 million related to the issuance of DSG common stock for the Rights Offering, which were recorded against Capital in excess of par value in the Unaudited Condensed Consolidated Balance Sheets. DSG used the proceeds from the Rights Offering, in combination with borrowings under the Amended Credit Agreement, to fund the Hisco Transaction. Stock Repurchase Program Under an existing stock repurchase program authorized by the Board of Directors, the Company may repurchase its common stock from time to time in open market transactio ns, privately negotiated transactions or by other methods. During the first nine months of 2024, the Company repurchased 85,644 shares of DSG common stock under the repurchase program at an average cost of $30.13 per share for a total cost of $2.6 million. No shares were repurchased during the first nine months of 2023 . T he remaining availability for stock repurchases under the program was $26.4 million at September 30, 2024.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Earnings Per Share	Note 12 – Earnings Per Share As a result of the Stock Split discussed in Note 1 – Nature of Operations and Basis of Presentation , all historical per share data, number of shares and numbers of equity awards were retroactively adjusted. The following table provides the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2024 2023 2024 2023 Basic income per share: Net income (loss) $ 21,921 $ (1,568) $ 18,593 $ 7,363 Basic weighted average shares outstanding 46,799,672 46,737,443 46,798,598 44,216,541 Basic income (loss) per share of common stock $ 0.47 $ (0.03) $ 0.40 $ 0.17 Diluted income per share: Net income (loss) $ 21,921 $ (1,568) $ 18,593 $ 7,363 Basic weighted average shares outstanding 46,799,672 46,737,443 46,798,598 44,216,541 Effect of dilutive securities 760,806 — 805,210 380,878 Diluted weighted average shares outstanding 47,560,478 46,737,443 47,603,808 44,597,419 Diluted income (loss) per share of common stock $ 0.46 $ (0.03) $ 0.39 $ 0.17 Anti-dilutive securities excluded from the calculation of diluted income per share — 448,910 — —

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Note 13 – Income Taxes The Company recorded an income tax benefit of $19.0 million, a (652.3)% effective tax rate for the three months ended September 30, 2024. Income tax expense of $1.0 million, a (171.3)% effective tax rate was recorded for the three months ended September 30, 2023. The effective tax rate for the three months ended September 30, 2024 differs from the U.S. statutory rate primarily due to foreign income and a change in valuation allowances related to interest expense limitation deferred tax assets. The effective tax rate for the three months ended September 30, 2023 differs from the U.S. statutory rate primarily due to adjustments to uncertain tax positions, a book loss for the quarter, and other permanent items. The Company recorded an income tax benefit of $23.3 million, a 498.1% effective tax rate for the nine months ended September 30, 2024. Income tax expense of $3.6 million, a 33.1% effective tax rate was recorded for the nine months ended September 30, 2023. The effective tax rate for the nine months ended September 30, 2024 differs from the U.S. statutory rate primarily due to foreign income and a change in the valuation allowance related to interest expense limitation deferred tax assets. The effective tax rate for the nine months ended September 30, 2023 differs from the U.S. statutory rate primarily due to state taxes, foreign operations, and other permanent items, offset by the release of a reserve for an uncertain tax benefit during the quarter. The Company and its subsidiaries are subject to U.S. federal income tax, as well as income tax of multiple state and foreign jurisdictions. As of September 30, 2024, the Company is subject to U.S. federal income tax examinations for the years 2020 through 2022 and income tax examinations from various other jurisdictions for the years 2017 through 2023.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 14 – Commitments and Contingencies Cyber Incident Litigation On February 10, 2022, DSG disclosed that its computer network was the subject of a cyber incident potentially involving unauthorized access to certain confidential information (the “Cyber Incident”). On April 4, 2023, a putative class action lawsuit (the “Cyber Incident Suit”) was filed against DSG entitled Lardone Davis, on behalf of himself and all others similarly situated, v. Lawson Products, Inc., Case No. 1:23-cv-02118, in the United States District Court for the Northern District of Illinois, Eastern Division. The plaintiff in this case, who purports to represent the class of individuals harmed by alleged actions and/or omissions by DSG in connection with the Cyber Incident, asserts a variety of common law and statutory claims seeking monetary damages, injunctive relief and other related relief related to the potential unauthorized access by third parties to personal identifiable information and protected health information. DSG disagrees with and intends to vigorously defend against the Cyber Incident Suit. The Cyber Incident Suit could result in additional costs and losses to DSG, although, at this time, DSG is unable to reasonably estimate the amount or range of reasonably possible losses, if any, that might result from adverse judgments, settlements, fines, penalties or other resolution of these proceedings based on the early stage of this proceeding, the absence of specific allegations as to alleged damages, the uncertainty as to the certification of a class or classes and the size of any certified class, if applicable, and the lack of resolution of significant factual and legal issues. Accordingly, no amounts have been recorded in the unaudited condensed consolidated financial statements for the Cyber Incident Suit. No assurance can be given that additional lawsuits will not be filed against DSG and/or its directors and officers and/or other persons or entities in connection with the Cyber Incident. Environmental Matter In 2012, it was determined that a Company-owned site in Decatur, Alabama, contained hazardous substances in the soil and groundwater as a result of historical operations prior to the Company’s ownership. The Company retained an environmental consulting firm to further investigate the contamination, prepare a remediation plan, and enroll the site in the Alabama Department of Environmental Management (“ADEM”) voluntary cleanup program. A remediation plan was approved by ADEM in 2018. The plan consists of chemical injections throughout the affected area, as well as subsequent monitoring of the area. The injection process was completed in the first quarter of 2019 and the environmental consulting firm is monitoring the affected area. At September 30, 2024 the Company had approximately $0.1 million accrued for potential monitoring costs included in Accrued expenses and other current liabilities in the Unaudited Condensed Consolidated Balance Sheets. The costs for future monitoring are not significant and have been fully accrued. The Company does not expect to capitalize any amounts related to the remediation plan.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Note 15 – Related Party Transactions Consulting Services Individuals employed by LKCM Headwater Operations, LLC, a related party of LKCM, have provided the Company with certain consulting services for interim executive management in addition to assisting in identifying cost savings, revenue enhancements and operational synergies of the combined companies. Expense of $0.4 million and $1.1 million for the three and nine months ended September 30, 2024, respectively, and $0.3 million and $0.4 million for the three and nine months ended September 30, 2023 , respectively, was recorded within Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), reflecting expenses incurred for these consulting services. Significant Shareholder LKCM, entities affiliated with LKCM and J. Bryan King (President and Chief Executive Officer of DSG and Chairman of the DSG Board of Directors), including private investment partnerships for which LKCM serves as investment manager, beneficially owned in the aggregate approximately 36,357,588 shares of DSG common stock as of September 30, 2024 representing approximately 77.6% of the outstanding shares of DSG common stock as of September 30, 2024. Leased Properties In connection with the Company’s headquarters move to Fort Worth, Texas in 2023, the Company has been utilizing office space in a building that is leased by LKCM. The Company is not charged any rent or other amounts for the use of the office space. Board of Directors M. Bradley Wallace, who became a director of the Company upon his election at the Company’s 2023 annual stockholders meeting on May 19, 2023, is a Founding Partner of LKCM Headwater Investments, the private capital investment group of LKCM.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Segment Information	Note 16 – Segment Information As a result of the Source Atlantic acquisition in the third quarter of 2024, discussed in Note 3 – Business Acquisitions, the Company realigned its reportable segments to align with its business strategy and the manner in which the CODM assesses performance and strategic execution and makes decisions regarding the allocation of resources. Beginning in the third quarter of 2024, the Company has four reporting segments: Lawson, TestEquity, Gexpro Services and Canada Branch Division. Canada Branch Division includes the results of the Bolt and Source Atlantic subsidiaries. No changes were made to the Lawson, TestEquity and Gexpro Services reportable segments. For additional details about our segment realignment in the third quarter of 2024, see Note 1 – Nature of Operations and Basis of Presentation. The segment realignment had no impact on our financial condition or results of operations. Prior period segment results have been recast to reflect our new reportable segments. A description of our reportable segments is as follows: Lawson is a distributor of specialty products and services to the industrial, commercial, institutional and governmental MRO marketplace. Lawson primarily distributes MRO products to its customers through a network of sales representatives and an inside sales channel throughout the United States and Canada. TestEquity is a distributor of test and measurement equipment and solutions, industrial and electronic production supplies, vendor managed inventory programs, and converting, fabrication and adhesive solutions from its leading manufacturer partners supporting the aerospace and defense, wireless and communication, semiconductors, industrial electronics and automotive, and electronics manufacturing industries. Gexpro Services is a global supply chain solutions provider, specializing in the development of mission critical production line management, aftermarket and field installation programs. Canada Branch Division combines the operations of our Bolt and Source Atlantic subsidiaries, which distribute industrial MRO supplies, safety products, fasteners, and related value-add services to the Canadian MRO market primarily through the sale of products to its walk-up customers throu gh 38 branch loc ations across Canada. The Company also has an “All Other” category which includes unallocated DSG holding company costs that are not directly attributable to the ongoing operating activities of our reportable segments. There is no revenue associated with the All Other category. Financial information for the Company’s segments and reconciliations of that information to the unaudited condensed consolidated financial statements is presented below. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Revenue Lawson $ 117,957 $ 114,477 $ 357,261 $ 358,903 TestEquity 195,244 207,657 579,874 451,082 Gexpro Services 116,141 103,232 321,926 312,523 Canada Branch Division 39,092 13,543 66,058 42,655 Intersegment revenue elimination (415) — (1,478) — Total revenue $ 468,019 $ 438,909 $ 1,323,641 $ 1,165,163 Operating income (loss) Lawson $ 726 $ 10,643 $ 10,962 $ 27,358 TestEquity 4,329 (5,027) (1,062) (8,183) Gexpro Services 11,543 7,332 25,096 23,484 Canada Branch Division 2,523 1,468 4,846 4,545 All Other (174) (1,633) (3,954) (3,924) Total operating income (loss) $ 18,947 $ 12,783 $ 35,888 $ 43,280 Segment revenue includes revenue from sales to external customers and intersegment revenue from sales transactions between segments. The Company accounts for intersegment sales similar to third party transactions that are conducted on an arm’s-length basis and reflect current market prices. Intersegment revenue is eliminated in consolidation. Segment revenue and the elimination of intersegment revenue was as follows: (in thousands) Lawson TestEquity Gexpro Services Canada Branch Division Elimination Total Three Months Ended September 30, 2024 Revenue from external customers $ 117,953 $ 195,210 $ 115,764 $ 39,092 $ — $ 468,019 Intersegment revenue 4 34 377 — (415) — Revenue $ 117,957 $ 195,244 $ 116,141 $ 39,092 $ (415) $ 468,019 Three Months Ended September 30, 2023 Revenue from external customers $ 114,477 $ 207,657 $ 103,232 $ 13,543 $ — $ 438,909 Intersegment revenue — — — — — — Revenue $ 114,477 $ 207,657 $ 103,232 $ 13,543 $ — $ 438,909 Nine Months Ended September 30, 2024 Revenue from external customers $ 357,204 $ 579,721 $ 320,658 $ 66,058 $ — $ 1,323,641 Intersegment revenue 57 153 1,268 — (1,478) — Revenue $ 357,261 $ 579,874 $ 321,926 $ 66,058 $ (1,478) $ 1,323,641 Nine Months Ended September 30, 2023 Revenue from external customers $ 358,903 $ 451,082 $ 312,523 $ 42,655 $ 1,165,163 Intersegment revenue — — — — — — Revenue $ 358,903 $ 451,082 $ 312,523 $ 42,655 $ — $ 1,165,163 Total assets by segment were as follows: (in thousands) September 30, 2024 December 31, 2023 Total assets by segment Lawson $ 554,384 $ 467,195 TestEquity 651,667 638,950 Gexpro Services 333,591 329,799 Canada Branch Division 193,283 71,446 All Other 52,017 42,941 Total $ 1,784,942 $ 1,550,331

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Event	Note 17 – Subsequent Event

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net income (loss)	$ 21,921	$ 1,896	$ (5,224)	$ (1,568)	$ 3,024	$ 5,907	$ 18,593	$ 7,363

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Reportable Segments and Nature of Operations	Reportable Segments and Nature of Operations Change in Reportable Segments In connection with the Source Atlantic Transaction (as defined below) during the third quarter of 2024, the Company realigned its reportable segments to align with our business strategy and the manner in which our chief operating decision maker ("CODM") assesses performance and strategic execution and makes decisions regarding the allocation of resources. Prior to the third quarter of 2024, the Company had three reportable segments: Lawson, TestEquity and Gexpro Services. The Company also had an “All Other” category which included unallocated DSG holding company costs that were not directly attributable to the ongoing operating activities of our reportable segments and included the results of the Bolt Supply House (“Bolt”) non-reportable segment. Beginning in the third quarter of 2024, the Company has four reporting segments: Lawson, TestEquity, Gexpro Services and Canada Branch Division. Canada Branch Division includes the results of Bolt and Source Atlantic Limited (which we acquired during the third quarter of 2024 as described below). No changes were made to the Lawson, TestEquity and Gexpro Services reportable segments. The “All Other” category now includes only unallocated DSG holding company costs that are not directly attributable to the ongoing operating activities of our reportable segments. The segment realignment had no impact on our financial condition or results of operations. Prior period segment results have been recast to reflect our new reportable segments. Additional information regarding DSG’s reportable segments is presented in Note 16 – Segment Information. Nature of Operations A summary of the nature of operations for our reportable segments is presented below . Lawson is a distributor of specialty products and services to the industrial, commercial, institutional and governmental MRO marketplace. Lawson primarily distributes MRO products to its customers through a network of sales representatives and an inside sales channel throughout the United States and Canada. TestEquity is a distributor of test and measurement equipment and solutions, industrial and electronic production supplies, vendor managed inventory programs, and converting, fabrication and adhesive solutions from its leading manufacturer partners supporting the aerospace and defense, wireless and communication, semiconductors, industrial electronics and automotive, and electronics manufacturing industries. Gexpro Services is a global supply chain solutions provider, specializing in the development of mission critical production line management, aftermarket and field installation programs. Canada Branch Division combines the operations of our Bolt and Source Atlantic Limited subsidiaries, which distribute industrial MRO supplies, safety products, fasteners, and related value-add services to the Canadian MRO market primarily through the sale of products to its walk-up customers throu gh 38 branch loc ations.
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation
Recent Accounting Pronouncements - Not Yet Adopted	Recent Accounting Pronouncements - Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The pronouncement is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The adoption of ASU 2023-07 should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact that the adoption will have on its financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures to require greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid. The pronouncement is effective on a prospective basis for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of the adoption on its financial statement disclosures.

Business Acquisitions (Tables)

Business Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed	The following table summarizes the preliminary allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed, including the allocation to other intangible assets acquired: Source Atlantic (in thousands) August 14, 2024 Acquisition Date Accounts receivable $ 33,679 Inventory 28,427 Other current assets 1,846 Property, plant and equipment 21,217 Right of use assets 6,780 Other intangible assets: Customer relationships 11,035 Trade names 10,012 Deferred tax liability, net of deferred tax asset (10,314) Accounts payable (17,857) Lease liabilities (6,780) Accrued expenses and other liabilities (5,422) Goodwill 30,518 Total purchase consideration exchanged, net of cash acquired $ 103,141 Cash consideration $ 98,756 Deferred consideration (1) 4,385 Total purchase consideration exchanged, net of cash acquired $ 103,141 (1) The Company paid $0.0 million of the Source Atlantic deferred consideration during the three and nine months ended September 30, 2024 . The following table summarizes the preliminary allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed, including the allocation to other intangible assets acquired: S&S Automotive (in thousands) May 1, 2024 Acquisition Date Measurement Period Adjustments Adjusted Total Accounts receivable $ 4,100 $ — $ 4,100 Inventory 7,100 (203) 6,897 Other current assets 306 — 306 Property, plant and equipment 2,351 (117) 2,234 Right of use assets 7,581 — 7,581 Other intangible assets: Customer relationships 30,200 (6,700) 23,500 Trade names 12,200 (300) 11,900 Other assets 35 2 37 Accounts payable (1,120) — (1,120) Lease liabilities (7,604) — (7,604) Accrued expenses and other liabilities (1,989) — (1,989) Goodwill 26,892 7,318 34,210 Total purchase consideration exchanged, net of cash acquired $ 80,052 $ — $ 80,052 Cash consideration $ 78,659 $ — $ 78,659 Deferred consideration (1) 1,393 — 1,393 Total purchase consideration exchanged, net of cash acquired $ 80,052 $ — $ 80,052 (1) The Company paid $0.7 million of the S&S Automotive deferred consideration during the three and nine months ended September 30, 2024 . The following table summarizes the preliminary allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed, including the allocation to other intangible assets acquired: Emergent Safety Supply (in thousands) January 19, 2024 Acquisition Date Measurement Period Adjustments Adjusted Total Accounts receivable $ 1,363 $ — $ 1,363 Inventory 1,399 — 1,399 Other current assets 10 — 10 Property, plant and equipment 228 — 228 Right of use assets 550 — 550 Other intangible assets: Customer relationships 2,700 100 2,800 Trade names 1,400 — 1,400 Other assets 11 — 11 Accounts payable (205) — (205) Lease liabilities (550) — (550) Accrued expenses and other liabilities (25) — (25) Goodwill 2,973 (100) 2,873 Total purchase consideration exchanged, net of cash acquired $ 9,854 $ — $ 9,854 Cash consideration $ 8,904 $ — $ 8,904 Deferred consideration (1) 950 — 950 Total purchase consideration exchanged, net of cash acquired $ 9,854 $ — $ 9,854 (1) The Company paid $0.2 million of the ESS deferred consideration during the three and nine months ended September 30, 2024 . The following table summarizes the allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed, including the allocation to other intangible assets acquired: Hisco (in thousands) June 8, 2023 Measurement Period Adjustments Adjusted Total Accounts receivable (1) $ 66,792 $ (2,269) $ 64,523 Inventory 61,300 (645) 60,655 Other current assets 3,858 350 4,208 Property, plant and equipment 48,326 — 48,326 Right of use assets 21,102 1,188 22,290 Other intangible assets: Customer relationships 41,800 (1,800) 40,000 Trade names 25,600 (300) 25,300 Deferred tax liability, net of deferred tax asset (2,544) 81 (2,463) Other assets 2,495 — 2,495 Accounts payable (16,689) — (16,689) Lease liabilities (22,372) 293 (22,079) Accrued expenses and other liabilities (8,961) (289) (9,250) Goodwill 49,718 122 49,840 Total purchase consideration exchanged, net of cash acquired $ 270,425 $ (3,269) $ 267,156 Cash consideration $ 252,007 $ — $ 252,007 Deferred consideration (2) 12,418 2,631 15,049 Contingent consideration 6,000 (5,900) 100 Total purchase consideration exchanged, net of cash acquired $ 270,425 $ (3,269) $ 267,156 (1) Accounts receivable had an estimated fair value of $64.5 million and a gross contractual value of $66.8 million. The difference represents the Company’s best estimate of the contractual cash flows that will not be collected. (2) The Company paid $7.2 million of the Hisco deferred consideration during the first half of 2024 and $7.8 million during 2023. As of June 30, 2024 and September 30, 2024, there is no deferred consideration remaining.
Schedule of Unaudited Pro Forma Information and Actual Results of Business Acquisitions	The following table presents estimated unaudited pro forma consolidated financial information for DSG as if the acquisitions disclosed above occurred on January 1, 2023, for the acquisitions completed during 2024 and January 1, 2022 for the acquisition completed during 2023. The unaudited pro forma information reflects adjustments including amortization on acquired intangible assets, interest expense, and the related tax effects. This information is presented for informational purposes only and is not necessarily indicative of future results or the results that would have occurred had the acquisitions been completed on the date indicated. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Revenue $ 492,144 $ 497,808 $ 1,457,666 $ 1,527,432 Net income $ 21,465 $ (3,040) $ 17,734 $ 9,438 The following table presents actual results attributable to our acquisitions that were included in the unaudited condensed consolidated financial statements for the third quarter and first nine months of 2024 and 2023. The results for these acquisitions are only included subsequent to their respective acquisition dates provided above. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Revenue $ 38,137 $ 104,796 $ 50,537 $ 132,797 Net income $ 3,916 $ (7,388) $ 3,505 $ (8,253)

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue by Geographic Area	Disaggregated consolidated revenue by geographic area (based on the location to which the product is shipped to): Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 United States $ 357,164 $ 344,920 $ 1,041,059 $ 936,289 Canada 55,912 35,727 116,278 108,380 Europe 13,853 20,805 44,700 55,261 Pacific Rim 4,958 2,477 13,447 5,468 Latin America 33,560 31,971 100,740 52,839 Other 2,987 3,009 8,895 6,926 Intersegment revenue elimination (415) — (1,478) — Total revenue $ 468,019 $ 438,909 $ 1,323,641 $ 1,165,163
Schedule of Rental Revenue from Operating Leases	Rental revenue from operating leases: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Revenue from operating leases $ 4,115 $ 4,323 $ 12,525 $ 12,831

Supplemental Financial Statem_2

Supplemental Financial Statement Information (Tables)	9 Months Ended
	Sep. 30, 2024
Condensed Financial Information Disclosure [Abstract]
Schedule of Components of Property, Plant and Equipment, Net and Rental Equipment, Net	Components of property, plant and equipment, net were as follows: (in thousands) September 30, 2024 December 31, 2023 Land $ 16,656 $ 16,916 Buildings and improvements 64,978 50,376 Machinery and equipment 55,159 48,844 Capitalized software 12,236 9,148 Furniture and fixtures 13,269 11,022 Vehicles 5,891 1,738 Construction in progress (1) 4,413 6,025 Total 172,602 144,069 Accumulated depreciation and amortization (43,675) (30,258) Property, plant and equipment, net $ 128,927 $ 113,811 (1) Construction in progress primarily relates to upgrades to certain of the Company’s information technology systems and distribution facilities that we expect to place in service in the next 12 months. Depreciation expense for property, plant and equipment and amortization expense for capitalized software, which are included in Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Depreciation expense for property, plant and equipment $ 4,125 $ 3,490 $ 11,625 $ 9,540 Amortization expense for capitalized software $ 834 $ 473 $ 2,503 $ 1,975 Rental equipment, net consisted of the following: (in thousands) September 30, 2024 December 31, 2023 Rental equipment $ 47,109 $ 52,387 Accumulated depreciation (24,508) (27,812) Rental equipment, net $ 22,601 $ 24,575 Depreciation expense for rental equipment, which is included in Cost of goods sold in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), was as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Depreciation expense for rental equipment $ 1,693 $ 1,739 $ 5,159 $ 5,936
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following: (in thousands) September 30, 2024 December 31, 2023 Accrued compensation $ 23,829 $ 25,371 Accrued and withheld taxes, other than income taxes 10,805 8,661 Deferred acquisition payments and accrued earnout liabilities 6,828 7,513 Accrued customer rebates 5,687 5,473 Deferred revenue 4,391 810 Accrued severance and acquisition related retention bonus 4,390 21,128 Accrued stock-based compensation 2,530 5,573 Accrued interest 2,283 3,301 Accrued health benefits 2,270 1,728 Accrued income taxes 1,754 1,994 Other 17,316 15,689 Total accrued expenses and other current liabilities $ 82,083 $ 97,241
Schedule of Other Liabilities	Other liabilities consisted of the following: (in thousands) September 30, 2024 December 31, 2023 Security bonus plan $ 7,564 $ 8,666 Deferred compensation 11,848 11,041 Other 4,425 5,736 Total other liabilities $ 23,837 $ 25,443

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in the Carrying Amount of Goodwill by Segment	Changes in the carrying amount of goodwill by segment were as follows: (in thousands) Lawson TestEquity Gexpro Services Canada Branch Division Total Balance at December 31, 2023 $ 155,915 $ 164,990 $ 55,743 $ 23,277 $ 399,925 Acquisitions (1) 37,083 (110) — 30,518 67,491 Impact of foreign exchange rates (141) — 172 (127) (96) Balance at September 30, 2024 $ 192,857 $ 164,880 $ 55,915 $ 53,668 $ 467,320 (1) Refer to Note 3 – Business Acquisitions for information related to measurement period adjustments.
Schedule of Gross Carrying Amount and Accumulated Amortization for Definite-Lived Intangible Assets	The gross carrying amount and accumulated amortization for definite-lived intangible assets were as follows: September 30, 2024 December 31, 2023 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 141,323 $ (41,435) $ 99,888 $ 117,881 $ (30,093) $ 87,788 Customer relationships 270,933 (93,577) 177,356 233,513 (71,215) 162,298 Other (1) 8,296 (5,768) 2,528 8,011 (4,263) 3,748 Total $ 420,552 $ (140,780) $ 279,772 $ 359,405 $ (105,571) $ 253,834 (1) Other primarily consists of non-compete agreements. Amortization expense for definite-lived intangible assets is included in Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Amortization expense for intangible assets $ 11,972 $ 11,308 $ 34,924 $ 29,865
Schedule of Estimated Aggregate Amortization Expense	The estimated aggregate amortization expense for the remaining year 2024 and each of the next four years and thereafter are as follows: (in thousands) Amortization Remaining 2024 $ 12,280 2025 45,770 2026 42,902 2027 37,971 2028 33,770 Thereafter 107,079 Total $ 279,772

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Schedule of Expenses Related to Leasing Activity and Weighted Average Lease Terms and Interest Rates of Leases Held and Cash Outflows of Leasing Activity	The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The components of lease cost were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Lease Type Classification 2024 2023 2024 2023 Operating lease expense (1) Operating expenses $ 5,528 $ 5,850 $ 17,344 $ 14,980 Financing lease amortization Operating expenses 171 133 436 393 Financing lease interest Interest expense 29 23 78 65 Financing lease expense 200 156 514 458 Sublease income (2) (160) — (266) — Net lease cost $ 5,568 $ 6,006 $ 17,592 $ 15,438 (1) Includes short-term lease expense, which is immaterial. (2) The Company subleases one of its leased properties with a remaining lease term of approximately 2 years that terminates on June 30, 2026. Sublease income is recognized on a straight-line basis over the sublease agreement and is recorded as an offset to operating lease expense. The weighted average lease terms and interest rates of leases held as of September 30, 2024 and December 31, 2023 were as follows: September 30, 2024 December 31, 2023 Operating Leases Finance Leases Operating Leases Finance Leases Weighted average remaining lease term 5.8 years 3.5 years 6.6 years 2.8 years Weighted average interest rate 7.7% 7.5% 7.8% 7.1% The cash outflows of leasing activity for the nine months ended September 30, 2024 and 2023 were as follows (in thousands): Nine Months Ended September 30, Cash Flow Source Classification 2024 2023 Operating cash flows from operating leases Operating activities $ (15,516) $ (9,083) Operating cash flows from financing leases Operating activities (77) (186) Financing cash flows from financing leases Financing activities (462) (358)
Schedule of Value of Net Assets and Liabilities Related to Operating and Finance Leases	The value of net assets and liabilities related to our operating and finance leases as of September 30, 2024 and December 31, 2023 was as follows (in thousands): Lease Type September 30, 2024 December 31, 2023 Total right of use operating lease assets $ 89,806 $ 76,340 Total right of use financing lease assets 1,419 1,560 Total lease assets $ 91,225 $ 77,900 Total current operating lease obligation $ 18,793 $ 13,010 Total current financing lease obligation 494 539 Total current lease obligation $ 19,287 $ 13,549 Total long-term operating lease obligation $ 75,093 $ 66,234 Total long-term financing lease obligation 805 831 Total long-term lease obligation $ 75,898 $ 67,065
Schedule of Value of Lease Liabilities Related to Operating Leases	The value of lease liabilities related to our operating and finance leases and sublease income as of September 30, 2024 was as follows (in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Sublease Income Remaining 2024 $ 6,445 $ 160 $ 6,605 $ 157 2025 24,427 533 24,960 640 2026 20,298 435 20,733 326 2027 17,345 203 17,548 — 2028 14,688 96 14,784 — Thereafter 36,912 15 36,927 — Total lease payments 120,115 1,442 121,557 1,123 Less: Interest (26,229) (143) (26,372) — Present value of lease liabilities $ 93,886 $ 1,299 $ 95,185 $ 1,123
Schedule of Value of Lease Liabilities Related to Finance Leases	The value of lease liabilities related to our operating and finance leases and sublease income as of September 30, 2024 was as follows (in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Sublease Income Remaining 2024 $ 6,445 $ 160 $ 6,605 $ 157 2025 24,427 533 24,960 640 2026 20,298 435 20,733 326 2027 17,345 203 17,548 — 2028 14,688 96 14,784 — Thereafter 36,912 15 36,927 — Total lease payments 120,115 1,442 121,557 1,123 Less: Interest (26,229) (143) (26,372) — Present value of lease liabilities $ 93,886 $ 1,299 $ 95,185 $ 1,123
Schedule of Lessor, Operating Lease, Payment to be Received, Maturity	The value of lease liabilities related to our operating and finance leases and sublease income as of September 30, 2024 was as follows (in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Sublease Income Remaining 2024 $ 6,445 $ 160 $ 6,605 $ 157 2025 24,427 533 24,960 640 2026 20,298 435 20,733 326 2027 17,345 203 17,548 — 2028 14,688 96 14,784 — Thereafter 36,912 15 36,927 — Total lease payments 120,115 1,442 121,557 1,123 Less: Interest (26,229) (143) (26,372) — Present value of lease liabilities $ 93,886 $ 1,299 $ 95,185 $ 1,123

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of Outstanding Long-Term Debt	The Company’s outstanding long-term debt was comprised of the following: (in thousands) September 30, 2024 December 31, 2023 Senior secured revolving credit facility $ 778 $ — Senior secured term loan 218,750 228,125 Senior secured delayed draw term loan 45,000 46,875 Incremental term loans 485,938 297,375 Other revolving line of credit 1,827 2,301 Total debt 752,293 574,676 Less: current portion of long-term debt (42,078) (32,551) Less: deferred financing costs (6,080) (6,244) Total long-term debt $ 704,135 $ 535,881

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings Per Share	The following table provides the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2024 2023 2024 2023 Basic income per share: Net income (loss) $ 21,921 $ (1,568) $ 18,593 $ 7,363 Basic weighted average shares outstanding 46,799,672 46,737,443 46,798,598 44,216,541 Basic income (loss) per share of common stock $ 0.47 $ (0.03) $ 0.40 $ 0.17 Diluted income per share: Net income (loss) $ 21,921 $ (1,568) $ 18,593 $ 7,363 Basic weighted average shares outstanding 46,799,672 46,737,443 46,798,598 44,216,541 Effect of dilutive securities 760,806 — 805,210 380,878 Diluted weighted average shares outstanding 47,560,478 46,737,443 47,603,808 44,597,419 Diluted income (loss) per share of common stock $ 0.46 $ (0.03) $ 0.39 $ 0.17 Anti-dilutive securities excluded from the calculation of diluted income per share — 448,910 — —

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Schedule of Financial Information of Reportable Segments	Financial information for the Company’s segments and reconciliations of that information to the unaudited condensed consolidated financial statements is presented below. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Revenue Lawson $ 117,957 $ 114,477 $ 357,261 $ 358,903 TestEquity 195,244 207,657 579,874 451,082 Gexpro Services 116,141 103,232 321,926 312,523 Canada Branch Division 39,092 13,543 66,058 42,655 Intersegment revenue elimination (415) — (1,478) — Total revenue $ 468,019 $ 438,909 $ 1,323,641 $ 1,165,163 Operating income (loss) Lawson $ 726 $ 10,643 $ 10,962 $ 27,358 TestEquity 4,329 (5,027) (1,062) (8,183) Gexpro Services 11,543 7,332 25,096 23,484 Canada Branch Division 2,523 1,468 4,846 4,545 All Other (174) (1,633) (3,954) (3,924) Total operating income (loss) $ 18,947 $ 12,783 $ 35,888 $ 43,280 (in thousands) Lawson TestEquity Gexpro Services Canada Branch Division Elimination Total Three Months Ended September 30, 2024 Revenue from external customers $ 117,953 $ 195,210 $ 115,764 $ 39,092 $ — $ 468,019 Intersegment revenue 4 34 377 — (415) — Revenue $ 117,957 $ 195,244 $ 116,141 $ 39,092 $ (415) $ 468,019 Three Months Ended September 30, 2023 Revenue from external customers $ 114,477 $ 207,657 $ 103,232 $ 13,543 $ — $ 438,909 Intersegment revenue — — — — — — Revenue $ 114,477 $ 207,657 $ 103,232 $ 13,543 $ — $ 438,909 Nine Months Ended September 30, 2024 Revenue from external customers $ 357,204 $ 579,721 $ 320,658 $ 66,058 $ — $ 1,323,641 Intersegment revenue 57 153 1,268 — (1,478) — Revenue $ 357,261 $ 579,874 $ 321,926 $ 66,058 $ (1,478) $ 1,323,641 Nine Months Ended September 30, 2023 Revenue from external customers $ 358,903 $ 451,082 $ 312,523 $ 42,655 $ 1,165,163 Intersegment revenue — — — — — — Revenue $ 358,903 $ 451,082 $ 312,523 $ 42,655 $ — $ 1,165,163 Total assets by segment were as follows: (in thousands) September 30, 2024 December 31, 2023 Total assets by segment Lawson $ 554,384 $ 467,195 TestEquity 651,667 638,950 Gexpro Services 333,591 329,799 Canada Branch Division 193,283 71,446 All Other 52,017 42,941 Total $ 1,784,942 $ 1,550,331

Nature of Operations and Basi_2

Nature of Operations and Basis of Presentation (Details) $ in Millions			1 Months Ended	3 Months Ended	6 Months Ended	9 Months Ended
	Aug. 14, 2024 USD ($) branch	Aug. 15, 2023	Aug. 31, 2023	Sep. 30, 2024 segment	Jun. 30, 2024 segment	Sep. 30, 2024 branch	Aug. 25, 2023 shares
Product Information [Line Items]
Number of reportable segments | segment				4	3
Number of branches | branch						38
Stock split ratio, common stock		2	2
Stock split, additional shares to be received per share already owned (in shares) | shares							1
Incremental term loans | Line of Credit
Product Information [Line Items]
Maximum borrowing capacity increase amount	$ 200
Revolving Credit Facility | Line of Credit
Product Information [Line Items]
Maximum borrowing capacity increase amount	55
Accordion feature	$ 300
Source Atlantic
Product Information [Line Items]
Number of branches | branch	24
Preliminary purchase price	$ 103.1
Cash acquired from acquisition	$ 4.4

Business Acquisitions - 2024 Ac

Business Acquisitions - 2024 Acquisition Source Atlantic (Narrative) (Details)		9 Months Ended
	Aug. 14, 2024 USD ($) branch	Sep. 30, 2024 USD ($) branch
Business Acquisition [Line Items]
Number of branches | branch		38
Source Atlantic
Business Acquisition [Line Items]
Preliminary purchase price	$ 103,100,000
Cash acquired from acquisition	$ 4,400,000
Number of branches | branch	24
Expected tax deductible goodwill amount		$ 0
Source Atlantic | Customer relationships
Business Acquisition [Line Items]
Useful life (in years)		17 years
Source Atlantic | Trade names
Business Acquisition [Line Items]
Useful life (in years)		8 years

Business Acquisitions - Schedul

Business Acquisitions - Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed of Source Atlantic (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Aug. 14, 2024	Sep. 30, 2024	Sep. 30, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill		$ 467,320	$ 467,320	$ 399,925
Source Atlantic
Business Acquisition [Line Items]
Accounts receivable	$ 33,679
Inventory	28,427
Other current assets	1,846
Property, plant and equipment	21,217
Right of use assets	6,780
Deferred tax liability, net of deferred tax asset	(10,314)
Accounts payable	(17,857)
Lease liabilities	(6,780)
Accrued expenses and other liabilities	(5,422)
Goodwill	30,518
Total purchase consideration exchanged, net of cash acquired	103,141
Cash consideration	98,756
Deferred consideration	4,385
Deferred consideration transferred		$ 0	$ 0
Source Atlantic | Customer relationships
Business Acquisition [Line Items]
Other intangible assets	11,035
Source Atlantic | Trade names
Business Acquisition [Line Items]
Other intangible assets	$ 10,012

Business Acquisitions - 2024 _2

Business Acquisitions - 2024 Acquisition (Narrative) (Details) - USD ($) $ in Thousands			5 Months Ended	8 Months Ended	9 Months Ended
	May 01, 2024	Jan. 19, 2024	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2024
S&S Automotive Inc.
Business Acquisition [Line Items]
Preliminary purchase price	$ 80,100
Cash acquired from acquisition	$ 700
Other intangible assets, measurement period adjustments					$ 7,000
Increase (decrease) in goodwill			$ 7,318		7,300
Expected tax deductible goodwill amount			34,200	$ 34,200	$ 34,200
S&S Automotive Inc. | Customer relationships
Business Acquisition [Line Items]
Other intangible assets, measurement period adjustments			$ 6,700
Useful life (in years)			17 years	17 years	17 years
S&S Automotive Inc. | Trade names
Business Acquisition [Line Items]
Other intangible assets, measurement period adjustments			$ 300
Useful life (in years)			8 years	8 years	8 years
Safety Supply Illinois LLC
Business Acquisition [Line Items]
Preliminary purchase price		$ 9,900
Increase (decrease) in goodwill				$ (100)
Expected tax deductible goodwill amount			$ 2,900	2,900	$ 2,900
Business acquisition (as a percent)		100%
Safety Supply Illinois LLC | Customer relationships
Business Acquisition [Line Items]
Other intangible assets, measurement period adjustments				$ (100)
Useful life (in years)			16 years	16 years	16 years
Safety Supply Illinois LLC | Trade names
Business Acquisition [Line Items]
Useful life (in years)			8 years	8 years	8 years

Business Acquisitions - Sched_2

Business Acquisitions - Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed of S&S Automotive Inc (Details) - USD ($) $ in Thousands		3 Months Ended	5 Months Ended	9 Months Ended
	May 01, 2024	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill		$ 467,320	$ 467,320	$ 467,320	$ 399,925
S&S Automotive Inc.
Business Acquisition [Line Items]
Accounts receivable	$ 4,100	4,100	4,100	4,100
Inventory	7,100	6,897	6,897	6,897
Inventory, measurement period adjustments			(203)
Other current assets	306	306	306	306
Property, plant and equipment	2,351	2,234	2,234	2,234
Property, plant, and equipment , measurement period adjustments			(117)
Right of use assets	7,581	7,581	7,581	7,581
Other intangible assets, measurement period adjustments				(7,000)
Other assets	35	37	37	37
Other assets, measurement period adjustments			2
Accounts payable	(1,120)	(1,120)	(1,120)	(1,120)
Lease liabilities	(7,604)	(7,604)	(7,604)	(7,604)
Accrued expenses and other liabilities	(1,989)	(1,989)	(1,989)	(1,989)
Goodwill	26,892	34,210	34,210	34,210
Goodwill, measurement period adjustments			7,318	7,300
Total purchase consideration exchanged, net of cash acquired	80,052	80,052	80,052	80,052
Total purchase consideration exchanged, net of cash acquired, measurement period adjustments			0
Cash consideration	78,659		78,659
Deferred consideration	1,393		1,393
Deferred consideration transferred		700		700
S&S Automotive Inc. | Customer relationships
Business Acquisition [Line Items]
Other intangible assets	30,200	23,500	23,500	23,500
Other intangible assets, measurement period adjustments			(6,700)
S&S Automotive Inc. | Trade names
Business Acquisition [Line Items]
Other intangible assets	$ 12,200	$ 11,900	11,900	$ 11,900
Other intangible assets, measurement period adjustments			$ (300)

Business Acquisitions - Sched_3

Business Acquisitions - Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed of Safety Supply Illinois LLC (Details) - USD ($) $ in Thousands		3 Months Ended	8 Months Ended	9 Months Ended
	Jan. 19, 2024	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill		$ 467,320	$ 467,320	$ 467,320	$ 399,925
Safety Supply Illinois LLC
Business Acquisition [Line Items]
Accounts receivable	$ 1,363	1,363	1,363	1,363
Inventory	1,399	1,399	1,399	1,399
Other current assets	10	10	10	10
Property, plant and equipment	228	228	228	228
Right of use assets	550	550	550	550
Other assets	11	11	11	11
Accounts payable	(205)	(205)	(205)	(205)
Lease liabilities	(550)	(550)	(550)	(550)
Accrued expenses and other liabilities	(25)	(25)	(25)	(25)
Goodwill	2,973	2,873	2,873	2,873
Goodwill, measurement period adjustments			(100)
Total purchase consideration exchanged, net of cash acquired	9,854	9,854	9,854	9,854
Total purchase consideration exchanged, net of cash acquired, measurement period adjustments			0
Cash consideration	8,904		8,904
Deferred consideration	950		950
Deferred consideration transferred		200		200
Safety Supply Illinois LLC | Customer relationships
Business Acquisition [Line Items]
Other intangible assets	2,700	2,800	2,800	2,800
Other intangible assets, measurement period adjustments			100
Safety Supply Illinois LLC | Trade names
Business Acquisition [Line Items]
Other intangible assets	$ 1,400	$ 1,400	$ 1,400	$ 1,400

Business Acquisitions - 2023 Ac

Business Acquisitions - 2023 Acquisition (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 08, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2025	Jun. 07, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Proceeds from employees for share purchases				$ 0	$ 3,253
Hisco
Business Acquisition [Line Items]
Preliminary purchase price	$ 267,200
Cash acquired from acquisition	12,200
Cash exchanged for equity related to retention bonuses	$ 37,500
Retention bonuses				34,600				$ 1,800
Retention bonuses compensation expense		$ 200	$ 10,100	$ 16,200	$ 12,400
Price per share (in dollars per share)	$ 22.50		$ 22.50		$ 22.50
Maximum stock employees can purchase	$ 25,000
Stock sold (in shares)			144,608
Proceeds from employees for share purchases			$ 3,300
Increase in goodwill							$ 122
Compensation expense			$ 400
Total purchase consideration exchanged, net of cash acquired, measurement period adjustments							$ 3,269
Expected tax deductible goodwill amount								$ 41,400
Hisco | Forecast
Business Acquisition [Line Items]
Cash exchanged for equity related to retention bonuses						$ 1,100
Hisco | Customer relationships
Business Acquisition [Line Items]
Useful life (in years)		12 years		12 years
Hisco | Trade names
Business Acquisition [Line Items]
Useful life (in years)		8 years		8 years

Business Acquisitions - Sched_4

Business Acquisitions - Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed of HIS Company, Inc. (Details) - USD ($)		6 Months Ended	12 Months Ended
	Jun. 08, 2023	Jun. 30, 2024	Jun. 07, 2024	Dec. 31, 2023	Sep. 30, 2024
Business Acquisition [Line Items]
Goodwill				$ 399,925,000	$ 467,320,000
Hisco
Business Acquisition [Line Items]
Accounts receivable	$ 66,792,000				64,523,000
Accounts receivable, measurement period adjustments			$ (2,269,000)
Inventory	61,300,000				60,655,000
Inventory, measurement period adjustments			(645,000)
Other current assets	3,858,000				4,208,000
Other current assets, measurement period adjustments			350,000
Property, plant and equipment	48,326,000				48,326,000
Right of use assets	21,102,000				22,290,000
Right of use assets, measurement period adjustments			1,188,000
Deferred tax liability, net of deferred tax asset	(2,544,000)				(2,463,000)
Deferred tax liability, net of deferred tax asset, measurement period adjustments			81,000
Other assets	2,495,000				2,495,000
Accounts payable	(16,689,000)				(16,689,000)
Lease liabilities	(22,372,000)				(22,079,000)
Lease liabilities, measurement period adjustments			293,000
Accrued expenses and other liabilities	(8,961,000)				(9,250,000)
Accrued expenses and other liabilities, measurement period adjustments			(289,000)
Goodwill	49,718,000				49,840,000
Goodwill, measurement period adjustments			122,000
Total purchase consideration exchanged, net of cash acquired	270,425,000				267,156,000
Total purchase consideration exchanged, net of cash acquired, measurement period adjustments			(3,269,000)
Cash consideration	252,007,000		252,007,000
Deferred consideration	12,418,000		15,049,000
Deferred consideration, measurement period adjustments			2,631,000
Contingent consideration	6,000,000		100,000
Contingent consideration, measurement period adjustments			(5,900,000)
Deferred consideration transferred		$ 7,200,000		$ 7,800,000
Deferred consideration payable		$ 0			0
Hisco | Customer relationships
Business Acquisition [Line Items]
Other intangible assets	41,800,000				40,000,000
Other intangible assets, measurement period adjustments			(1,800,000)
Hisco | Trade names
Business Acquisition [Line Items]
Other intangible assets	$ 25,600,000				$ 25,300,000
Other intangible assets, measurement period adjustments			$ (300,000)

Business Acquisitions - Sched_5

Business Acquisitions - Schedule of Unaudited Pro Forma Information and Actual Results of Business Acquisitions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Pro forma, revenue	$ 492,144	$ 497,808	$ 1,457,666	$ 1,527,432
Pro forma, net income	21,465	(3,040)	17,734	9,438
Revenue	38,137	104,796	50,537	132,797
Net income	$ 3,916	$ (7,388)	$ 3,505	$ (8,253)

Business Acquisitions - Actual

Business Acquisitions - Actual Results of Business Acquisitions (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Merger transaction costs	$ 2.9	$ (0.1)	$ 8.5	$ 9.1

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Disaggregation of Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 468,019	$ 438,909	$ 1,323,641	$ 1,165,163
Intersegment revenue elimination
Disaggregation of Revenue [Line Items]
Total revenue	(415)	0	(1,478)	0
United States
Disaggregation of Revenue [Line Items]
Total revenue	357,164	344,920	1,041,059	936,289
Canada
Disaggregation of Revenue [Line Items]
Total revenue	55,912	35,727	116,278	108,380
Europe
Disaggregation of Revenue [Line Items]
Total revenue	13,853	20,805	44,700	55,261
Pacific Rim
Disaggregation of Revenue [Line Items]
Total revenue	4,958	2,477	13,447	5,468
Latin America
Disaggregation of Revenue [Line Items]
Total revenue	33,560	31,971	100,740	52,839
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 2,987	$ 3,009	$ 8,895	$ 6,926

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Rental Revenue from Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue from operating leases	$ 468,019	$ 438,909	$ 1,323,641	$ 1,165,163
Rental Program
Disaggregation of Revenue [Line Items]
Revenue from operating leases	$ 4,115	$ 4,323	$ 12,525	$ 12,831

Supplemental Financial Statem_3

Supplemental Financial Statement Information - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Condensed Financial Information Disclosure [Abstract]
Restricted cash	$ 14,423	$ 15,694	$ 20,703
Escrow accounts established in conjunction with certain business acquisitions	6,700
Escrow deposit	5,900
Restricted cash as collateral for certain borrowings	8,500
Assets held for sale	$ 3,358	$ 0

Supplemental Financial Statem_4

Supplemental Financial Statement Information - Schedule of Components of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total	$ 172,602	$ 144,069
Accumulated depreciation and amortization	(43,675)	(30,258)
Property, plant and equipment, net	128,927	113,811
Land
Property, Plant and Equipment [Line Items]
Total	16,656	16,916
Buildings and improvements
Property, Plant and Equipment [Line Items]
Total	64,978	50,376
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total	55,159	48,844
Capitalized software
Property, Plant and Equipment [Line Items]
Total	12,236	9,148
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total	13,269	11,022
Vehicles
Property, Plant and Equipment [Line Items]
Total	5,891	1,738
Construction in progress
Property, Plant and Equipment [Line Items]
Total	$ 4,413	$ 6,025

Supplemental Financial Statem_5

Supplemental Financial Statement Information - Schedule of Depreciation Expense for Property, Plant and Equipment and Amortization Expense (Details) - Property, Plant and Equipment, Excluding Rental Equipment - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Line Items]
Depreciation expense for property, plant and equipment	$ 4,125	$ 3,490	$ 11,625	$ 9,540
Amortization expense for capitalized software	$ 834	$ 473	$ 2,503	$ 1,975

Supplemental Financial Statem_6

Supplemental Financial Statement Information - Schedule of Rental Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items]
Rental equipment, net	$ 22,601	$ 24,575
Rental Equipment
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items]
Rental equipment	47,109	52,387
Accumulated depreciation	(24,508)	(27,812)
Rental equipment, net	$ 22,601	$ 24,575

Supplemental Financial Statem_7

Supplemental Financial Statement Information - Schedule of Depreciation Expense for Rental Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Rental Equipment
Property, Plant and Equipment [Line Items]
Depreciation expense for rental equipment	$ 1,693	$ 1,739	$ 5,159	$ 5,936

Supplemental Financial Statem_8

Supplemental Financial Statement Information - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]
Accrued compensation	$ 23,829	$ 25,371
Accrued and withheld taxes, other than income taxes	10,805	8,661
Deferred acquisition payments and accrued earnout liabilities	6,828	7,513
Accrued customer rebates	5,687	5,473
Deferred revenue	4,391	810
Accrued severance and acquisition related retention bonus	4,390	21,128
Accrued stock-based compensation	2,530	5,573
Accrued interest	2,283	3,301
Accrued health benefits	2,270	1,728
Accrued income taxes	1,754	1,994
Other	17,316	15,689
Total accrued expenses and other current liabilities	$ 82,083	$ 97,241

Supplemental Financial Statem_9

Supplemental Financial Statement Information - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]
Security bonus plan	$ 7,564	$ 8,666
Deferred compensation	11,848	11,041
Other	4,425	5,736
Total other liabilities	$ 23,837	$ 25,443

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Schedule of Changes in the Carrying Amount of Goodwill by Segment (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 399,925
Acquisitions	67,491
Impact of foreign exchange rates	(96)
Goodwill, ending balance	467,320
Lawson
Goodwill [Roll Forward]
Goodwill, beginning balance	155,915
Acquisitions	37,083
Impact of foreign exchange rates	(141)
Goodwill, ending balance	192,857
TestEquity
Goodwill [Roll Forward]
Goodwill, beginning balance	164,990
Acquisitions	(110)
Impact of foreign exchange rates	0
Goodwill, ending balance	164,880
Gexpro Services
Goodwill [Roll Forward]
Goodwill, beginning balance	55,743
Acquisitions	0
Impact of foreign exchange rates	172
Goodwill, ending balance	55,915
Canada Branch Division
Goodwill [Roll Forward]
Goodwill, beginning balance	23,277
Acquisitions	30,518
Impact of foreign exchange rates	(127)
Goodwill, ending balance	$ 53,668

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule of Gross Carrying Amount and Accumulated Amortization for Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 420,552		$ 420,552		$ 359,405
Accumulated Amortization	(140,780)		(140,780)		(105,571)
Total	279,772		279,772		253,834
Amortization expense for intangible assets	11,972	$ 11,308	34,924	$ 29,865
Trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	141,323		141,323		117,881
Accumulated Amortization	(41,435)		(41,435)		(30,093)
Total	99,888		99,888		87,788
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	270,933		270,933		233,513
Accumulated Amortization	(93,577)		(93,577)		(71,215)
Total	177,356		177,356		162,298
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	8,296		8,296		8,011
Accumulated Amortization	(5,768)		(5,768)		(4,263)
Total	$ 2,528		$ 2,528		$ 3,748

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Schedule of Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remaining 2024	$ 12,280
2025	45,770
2026	42,902
2027	37,971
2028	33,770
Thereafter	107,079
Total	$ 279,772	$ 253,834

Leases - Schedule of Expenses R

Leases - Schedule of Expenses Related to Leasing Activity (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) property	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) property	Sep. 30, 2023 USD ($)
Leases [Abstract]
Operating lease expense	$ 5,528	$ 5,850	$ 17,344	$ 14,980
Financing lease amortization	171	133	436	393
Financing lease interest	29	23	78	65
Financing lease expense	200	156	514	458
Sublease income	(160)	0	(266)	0
Net lease cost	$ 5,568	$ 6,006	$ 17,592	$ 15,438
Number of leased properties subleased | property	1		1
Lease term (in years)	2 years		2 years

Leases - Schedule of Value of N

Leases - Schedule of Value of Net Assets and Liabilities Related to Operating and Finance Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Total right of use operating lease assets	$ 89,806	$ 76,340
Total right of use financing lease assets	1,419	1,560
Total lease assets	$ 91,225	$ 77,900
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Total current lease obligation	Total current lease obligation
Total current operating lease obligation	$ 18,793	$ 13,010
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Total current lease obligation	Total current lease obligation
Total current financing lease obligation	$ 494	$ 539
Total current lease obligation	$ 19,287	$ 13,549
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Total long-term lease obligation	Total long-term lease obligation
Total long-term operating lease obligation	$ 75,093	$ 66,234
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Total long-term lease obligation	Total long-term lease obligation
Total long-term financing lease obligation	$ 805	$ 831
Total long-term lease obligation	$ 75,898	$ 67,065

Leases - Schedule of Value of L

Leases - Schedule of Value of Lease Liabilities Related to Operating and Finance Leases (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Operating Leases
Remaining 2024	$ 6,445
2025	24,427
2026	20,298
2027	17,345
2028	14,688
Thereafter	36,912
Total lease payments	120,115
Less: Interest	(26,229)
Present value of lease liabilities	93,886
Financing Leases
Remaining 2024	160
2025	533
2026	435
2027	203
2028	96
Thereafter	15
Total lease payments	1,442
Less: Interest	(143)
Present value of lease liabilities	1,299
Total
Remaining 2024	6,605
2025	24,960
2026	20,733
2027	17,548
2028	14,784
Thereafter	36,927
Total lease payments	121,557
Less: Interest	(26,372)
Present value of lease liabilities	95,185
Sublease Income
Remaining 2024	157
2025	640
2026	326
2027	0
2028	0
Thereafter	0
Total lease payments	$ 1,123

Leases - Schedule of Weighted A

Leases - Schedule of Weighted Average Lease Terms and Interest Rates of Leases Held (Details)	Sep. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Operating leases, weighted average remaining lease term	5 years 9 months 18 days	6 years 7 months 6 days
Operating leases, weighted average interest rate	7.70%	7.80%
Finance leases, weighted average remaining lease term	3 years 6 months	2 years 9 months 18 days
Finance leases, weighted average interest rate	7.50%	7.10%

Leases - Schedule of Cash Outfl

Leases - Schedule of Cash Outflows of Leasing Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating cash flows from operating leases	$ (15,516)	$ (9,083)
Operating cash flows from financing leases	(77)	(186)
Financing cash flows from financing leases	$ (462)	$ (358)

Earnout Liabilities (Details)

Earnout Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Sep. 30, 2024	Dec. 31, 2023	Jun. 08, 2023	Mar. 31, 2022
Hisco
Business Acquisition [Line Items]
Fair value of earn-out liability			$ 0	$ 0.1
Frontier
Business Acquisition [Line Items]
Fair value of earn-out liability		$ 0.9	$ 0		$ 0.9
Earn-out payments	$ 1
Maximum | Hisco
Business Acquisition [Line Items]
Fair value of earn-out liability				$ 12.6
Maximum | Frontier
Business Acquisition [Line Items]
Fair value of earn-out liability					$ 3

Debt - Schedule of Outstanding

Debt - Schedule of Outstanding Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Total debt	$ 752,293	$ 574,676
Less: current portion of long-term debt	(42,078)	(32,551)
Total long-term debt	704,135	535,881
Line of Credit
Line of Credit Facility [Line Items]
Less: deferred financing costs	(8,300)
Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Less: deferred financing costs	(6,080)	(6,244)
Line of Credit | Revolving Credit Facility | Senior secured revolving credit facility
Line of Credit Facility [Line Items]
Total debt	778	0
Line of Credit | Revolving Credit Facility | Other revolving line of credit
Line of Credit Facility [Line Items]
Total debt	1,827	2,301
Line of Credit | Secured Debt
Line of Credit Facility [Line Items]
Total debt	45,000	46,875
Less: deferred financing costs	(6,100)
Line of Credit | Secured Debt | Senior secured term loan
Line of Credit Facility [Line Items]
Total debt	218,750	228,125
Line of Credit | Incremental term loans
Line of Credit Facility [Line Items]
Total debt	$ 485,938	$ 297,375

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended		9 Months Ended
	Aug. 14, 2024	Jun. 28, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Aug. 13, 2024	Dec. 31, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Long-term debt, year one			$ 40,300		$ 40,300
Long-term debt, year two			40,300		40,300
Long-term debt, year three			40,300		40,300
Long-term debt, year four			659,100		659,100
Amortization of debt issuance costs					2,093	$ 1,662
Line of Credit
Line of Credit Facility [Line Items]
Deferred financing costs net of accumulated amortization			8,300		8,300
Debt instrument, covenant, default rate	2%
Line of Credit | Alternate Base Rate or Canadian Prime Rate | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)		0%
Line of Credit | Alternate Base Rate or Canadian Prime Rate | Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)		1.75%
Line of Credit | Adjusted Term SOFR or CORRA Rate | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)		1%
Line of Credit | Adjusted Term SOFR or CORRA Rate | Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)		2.75%
Incremental term loans | Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity increase amount	$ 200,000
Maximum borrowing capacity	505,000
Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity increase amount	55,000
Maximum borrowing capacity	255,000						$ 200,000
Accordion feature	300,000
Quarterly payments	10,100
Deferred financing costs net of accumulated amortization			6,080		6,080			$ 6,244
Debt issuance costs, net			2,200		2,200
Letter of Credit | Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	25,000
Bridge Loan | Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	10,000
Secured Debt | Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	250,000
Line of credit facility, remaining borrowing capacity			252,200		252,200
Deferred financing costs incurred			1,800		1,800			$ 3,400	$ 4,000
Amortization of debt issuance costs			800	$ 700	2,100	$ 1,700
Deferred financing costs net of accumulated amortization			$ 6,100		$ 6,100
Secured Debt | Line of Credit | Senior Secured Delayed Draw Term Loan
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 50,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Stock-Based Compensation Details
Stock-based compensation expense	$ 2.4		$ 1	$ 4.3	$ 5.4
Stock-based compensation liability	$ 2.5			$ 2.5		$ 5.6
Restricted Stock Awards
Stock-Based Compensation Details
Stock-based awards issued (in shares)		117,000
Vested in period, fair value		$ 3.8
Restricted Stock Awards | Minimum
Stock-Based Compensation Details
Vesting period (in years)		1 year
Restricted Stock Awards | Maximum
Stock-Based Compensation Details
Vesting period (in years)		5 years

Stockholders' Equity - Rights O

Stockholders' Equity - Rights Offering (Narrative) (Details) - Rights Offering $ / shares in Units, $ in Millions	May 30, 2023 USD ($) $ / shares shares
Class of Stock [Line Items]
Common stock, value, subscription price	$ 100
Stock sold (in shares) | shares	4,444,444
Price per share (in dollars per share) | $ / shares	$ 22.50
Proceeds from issuance of common stock	$ 98.5
Sale of stock, transaction costs	$ 1.5

Stockholders' Equity - Stock Re

Stockholders' Equity - Stock Repurchase Program (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Sep. 30, 2024	Sep. 30, 2023
Equity [Abstract]
Repurchase of common stock (in shares)			85,644	0
Stock repurchased (in USD per share)			$ 30.13
Repurchases of common stock	$ 897	$ 1,683	$ 2,600
Remaining amount	$ 26,400		$ 26,400

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended						9 Months Ended
		Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Basic income per share:
Net income (loss)		$ 21,921	$ 1,896	$ (5,224)	$ (1,568)	$ 3,024	$ 5,907	$ 18,593	$ 7,363
Basic weighted average shares outstanding (in shares)		46,799,672			46,737,443			46,798,598	44,216,541
Basic income (loss) per share of common stock (in USD per share)	[1]	$ 0.47			$ (0.03)			$ 0.40	$ 0.17
Diluted income per share:
Net income (loss)		$ 21,921	$ 1,896	$ (5,224)	$ (1,568)	$ 3,024	$ 5,907	$ 18,593	$ 7,363
Basic weighted average shares outstanding (in shares)		46,799,672			46,737,443			46,798,598	44,216,541
Effect of dilutive securities (in shares)		760,806			0			805,210	380,878
Diluted weighted average shares outstanding (in shares)		47,560,478			46,737,443			47,603,808	44,597,419
Diluted income (loss) per share of common stock (in USD per share)	[1]	$ 0.46			$ (0.03)			$ 0.39	$ 0.17
Anti-dilutive securities excluded from the calculation of diluted income per share (in shares)		0			448,910			0	0
[1] (1) The accompanying Unaudited Condensed Consolidated Financial Statements and notes thereto have been retroactively adjusted to reflect the two-for-one stock split completed in August 2023. See Note 1 – Nature of Operations and Basis of Presentation for details.

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ (19,007)	$ 990	$ (23,264)	$ 3,637
Effective income tax rate	(652.30%)	(171.30%)	498.10%	33.10%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Sep. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Accrued environmental matter costs	$ 0.1

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Related Party Transaction [Line Items]
Selling, general and administrative expenses	$ 139,901	$ 132,514	$ 417,896	$ 370,911
Related Party | Related Party, Managed Services Agreements
Related Party Transaction [Line Items]
Selling, general and administrative expenses	$ 400	$ 300	$ 1,100	$ 400
Majority Shareholder | Distribution Solutions Group | LKCM Headwater Operations, LLC
Related Party Transaction [Line Items]
Shares owned by related party (in shares)	36,357,588		36,357,588
Noncontrolling ownership (as a percent)	77.60%		77.60%

Segment Information - Narrative

Segment Information - Narrative (Details)	3 Months Ended	6 Months Ended	9 Months Ended
	Sep. 30, 2024 segment	Jun. 30, 2024 segment	Sep. 30, 2024 branch
Segment Reporting [Abstract]
Number of reportable segments | segment	4	3
Number of branches | branch			38

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Revenue	$ 468,019	$ 438,909	$ 1,323,641	$ 1,165,163
Operating income (loss)	18,947	12,783	35,888	43,280
Intersegment revenue elimination
Segment Reporting Information [Line Items]
Revenue	(415)	0	(1,478)	0
All Other
Segment Reporting Information [Line Items]
Operating income (loss)	(174)	(1,633)	(3,954)	(3,924)
Lawson
Segment Reporting Information [Line Items]
Revenue	117,953	114,477	357,204	358,903
Lawson | Operating Segments
Segment Reporting Information [Line Items]
Revenue	117,957	114,477	357,261	358,903
Operating income (loss)	726	10,643	10,962	27,358
Lawson | Intersegment revenue elimination
Segment Reporting Information [Line Items]
Revenue	4	0	57	0
TestEquity
Segment Reporting Information [Line Items]
Revenue	195,210	207,657	579,721	451,082
TestEquity | Operating Segments
Segment Reporting Information [Line Items]
Revenue	195,244	207,657	579,874	451,082
Operating income (loss)	4,329	(5,027)	(1,062)	(8,183)
TestEquity | Intersegment revenue elimination
Segment Reporting Information [Line Items]
Revenue	34	0	153	0
Gexpro Services
Segment Reporting Information [Line Items]
Revenue	115,764	103,232	320,658	312,523
Gexpro Services | Operating Segments
Segment Reporting Information [Line Items]
Revenue	116,141	103,232	321,926	312,523
Operating income (loss)	11,543	7,332	25,096	23,484
Gexpro Services | Intersegment revenue elimination
Segment Reporting Information [Line Items]
Revenue	377	0	1,268	0
Canada Branch Division
Segment Reporting Information [Line Items]
Revenue	39,092	13,543	66,058	42,655
Canada Branch Division | Operating Segments
Segment Reporting Information [Line Items]
Revenue	39,092	13,543	66,058	42,655
Operating income (loss)	2,523	$ 1,468	$ 4,846	$ 4,545
Canada Branch Division | Intersegment revenue elimination
Segment Reporting Information [Line Items]
Revenue	$ 0

Segment Information - Reportabl

Segment Information - Reportable Segments by Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Segment Reporting Information [Line Items]
Assets	$ 1,784,942	$ 1,550,331
Canada Branch Division
Segment Reporting Information [Line Items]
Assets	52,017	42,941
Lawson | Operating Segments
Segment Reporting Information [Line Items]
Assets	554,384	467,195
TestEquity | Operating Segments
Segment Reporting Information [Line Items]
Assets	651,667	638,950
Gexpro Services | Operating Segments
Segment Reporting Information [Line Items]
Assets	333,591	329,799
Canada Branch Division | Operating Segments
Segment Reporting Information [Line Items]
Assets	$ 193,283	$ 71,446