LAWS - Earnings call transcript Q3 2021 | Distribution Solutions Group, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Lawson Products Third Quarter 2021 Earnings Call. This call will be hosted by Michael DeCata, Lawson Products' President and Chief Executive Officer; and Ron Knutson, Lawson Products' Chief Financial Officer.

During this call they will be providing an update on the business as well as covering relevant financial and operational information. There will then be time for questions and answers. Please note that statements on this call and in the press release contain forward-looking statements concerning goals, beliefs, expectations, strategies, plans, future operating results, and underlying assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those described.

during of are today. made company's on statements as views addition, this based call the In The cause views these anticipates -- company that those to future change. developments may that Please consider presented in the information light. but elect may company the made obligation at do point specifically The to any disclaims some forward-looking update statements so. to today, simulcast the on lawsonproducts.com. website, the via is Lawson the call This on Products being company's audio Internet Investor page Relations available on A the through will replay of XXXX. the November be webcast XX, website Lawson now Products' Mike turn the will to over I CEO, call DeCata.

Michael DeCata

Good and joining I'll morning. of the call. comment on thank you And for thoughts state This the share the morning third about business. quarter the some

the Additionally, integration. I discuss that the the final update in call. on initiatives I'll quarter stages second of earnings also you the growth Partsmaster mentioned will I

supply shortages. the expand CFO, comment Knutson, our questions. our chain Lastly, growth in by followed labor the to will market our a continues detailed environment, your customer I'll Ron and ongoing on review business as of more financial future results provide our due to competence

I I'd Management comment May in XXXX. our progress King XXD like the by on my remarks, Schedule Before on evaluating Capital amendment XX, to filed prepared begin Luther

taken the anticipate completion has expected, process this nearing shareholders committee of of than While shortly. special Board their the updating analysis. longer we the is And

last seeing Partsmaster Kent from year's and from over at growth core, we that, accounts, sales Overall, time. Lawson inclusion recovery this We our topic third additional Automotive will XXXX. achieving consolidated the significant growth Beyond benefited We're not performed on be any able Supply. including the quarter as pandemic. make well organic comments business well, of to the of as from Bolt strategic broad-based

pace and have related supply of shipping ongoing overall issues However, recovery. the chain slowed disruption

supply performance managing returning environment. normal continue to a improve in Our doing more and we extraordinary that confident will teams are And to chain looking this we forward while are sales job an environment. supply chain to

XX.X% disruptions will which the the quarter continue next compared a these half of is closed On expectation our growth acquisition, year. XXXX. of first the August achieved XX, on to to at that Partsmaster However, sales least as we including basis, XXXX, third consolidated

acquisition, the a and in intermediate And accounts, sales is the business, integration X.X% X good XXXX. over Partsmaster the of military $XX.X and additional broad were quarter. term. million in $XXX.X fit one of of Partsmaster sales Consolidated Partsmaster's third with growth And which rebounded slowdown the September. Both quarter very pleased Partsmaster seeing Military million. in also expect slowdown over our Excluding with primarily significant of during quarter, slowed X-month a we large strategic Partsmaster and is was to due progress we have organic generated strategic in are sales combined the in recovery. the of benefits tied the accounts recovery. realize with signs to military. Overall, were to existing showing long sales

the backorder, in for and an in in product challenging, supply The margin when disruption environment. million We're adjusted the new in EBITDA improve using to this and business quarter. for be While proved working challenging our we're $X.X achieved substitution managing team to chain is progress EBITDA making X.X% -- items consolidated supply adding suppliers adjusted chain necessary.

third Our XXXX, quarter of versus Lawson XX.X% XXXX. profit second organic and gross quarter XX.X% the was in XX.X% margin of the in

the margin. XXXX quarter PPE or of reserves the quarter Both Before inventory and impacted second were third write-downs items. into expenses the service reclassification of of by

labor and against chain up supply I'm vendor cost results. challenges, were While shortages, pleased with we very inflation, transportation these

exempt include along passing it labor chain managing through discuss important made not have customers. is bated, supply from environment, this challenges, significant chain increases cost supply is progress we challenges this. have to not to While including our When challenges. in Lawson teams

outsource labor challenges One us been find driver which with a necessary Many large driver long are opportunities. great and VMI growth. to to proposition inventory other management, Customers broad people of it VMI provides aspect our a business service-intensive vendor-managed model However, inventory of value has put-away. a labor equate discussion. warrants key aspect our and our solely of and very of inventory

VMI. our includes reps others previously, needs. stated provide, value, we've from many As differentiates service and put-away, forward-thinking service-intensive our customer's who anticipates to but also their the greatly sales service This Lawson future VMI as manages refer that

major the Now process new quarterly end last to will be The I'd of the integration year. transitioning by essentially in of discuss center like of completed complete. distribution system a integration is performance. Partsmaster and fully Partsmaster this is the the Lawson moment to Partsmaster our Dallas, stage of The take into to which

mentioned utilize center fully new military As underway product this surface is product our offering. in some the extensive training parts months integrated business, cryogenically washing distribution final Torrent to and I will our quarter, system hardening With now steps ahead, Partsmaster last house is and treated expanded process. our the

I sales. sales exception in quarter growth. And core As the with modest of strategic begun X were a accounts, Partsmaster to sales counts strategic portfolio showed military Partsmaster due slowdown moment for September, for flat mentioned, third to the recover to in the which ago, quarter. have softened the

achieving perform of a X% and over nearly XX.X% ago XX% Supply sales very for second to Bolt year quarter XXXX. from a and EBITDA quarter, Our over growing business the at continues the well, quarter

DC, mentioned, the continue We new centers, that including Georgia larger make significant just Suwanee, DC distribution Calgary investments technology a and McCook, upgrades I in well to as Dallas several as in Illinois. and

and capability to the expansion growth. for capacity our significant -- add for will provide productivity investments these physical infrastructure, of All with us and

have in sales. needs. with versus quarter their working Strategic the and well to responded versus achieved the to second fifth increases third Customers us and of to anticipate the future for turning a very X% price at Now growth row accounts XX% XXXX. quarter, quarter

of customer on the of the third we This Kent Most quarter repair XXXX. of and third an vehicles Sales another the from market specifically add issues as to coming and making the growth locations engage is locations were low-speed compared highs a commented new nearly down of to drivers to the quarter, with XXX X% also integrated Our continued and new construction recreational new Automotive add Kent. XXX base, compared side achieved achieving lower partner We're and added and the continues as winning Between customers. primary to to in year, as the and of in to XXXX. PPE segment. Lawson quarter. segment progress third customer second in business Kent and also service XXXX. business, with segment added this locations. several We're expand expanding several This We strategic to customers, supply stream account government highway all-time sales account along partners large this recently quarter versus the labor body sales civilian have another excellence the auto new compared recently existing through market. new strategic decision accounts. integrated their sales our in their quarter on good operational customers September attributed Kent to to hundred These our our the XX as will XX% K supply

experienced we PPE fact, headwinds all In our of in businesses.

X.X%. business at MRO grew Lawson Our

significant additional that local, impact at in sales accelerate call state, the we're growth, and Torrent XX%. in developing to earnings of underserved our these channels all We've to On grew educational, line of X made in washing will are and over parts investing I of good markets, growth. our investments last in rollout And PPE, areas. market the XXXX newly excluding we acquired show progress products. that areas However, X confident mentioned

I our Association conference recently construction rental fact, American In in many which customers attended Rental equipment attend. of

washing was the significant received of and that parts Torrent system. customer products One enthusiasm interest the

reporting quarters be we'll in on the progress areas. coming our Over these

strategy rep focus and accretive add sales remains improvement sales of reps, growth We area. X-part versus XXXX. per X.X% third an rep key drive in day productivity sales Our realized rep Sales remains quarter unchanged, acquisitions. per make the productivity, a

been The and has strategy profitably ability Looking proposition customers been our confident Lawson been and the has that than never stronger, now. and more in for have never never our critical is forward, company value strategy. it our optimistic more to execute I

years I customers, of Lawson entering am our that of equally but all driving is this our and Next confident those to suppliers, members I all year And team accomplish. XX many to teammates shareholders from Lawson's their will you evolution. Thank success. that we will seen celebrate for phase in our look XXth I XXX% commitment forward we benefit that success. challenges, certain we've extraordinary an am Over anniversary.

Now I'd financial our performance. detailed over for it more like to information to on Ron turn

Ron Knutson

the details. quarter. for And August key Thank the highlights we now morning, mind you, compare some A that I the Keep acquisition few with the the Mike. discuss quarter, will year-ago some Partsmaster start we are of quarter. everyone. lapping for against takeaways and as then in XXXX we'll good of

by $XXX.X and recovery to First, million, of $XX.X over nearly to consolidated from million Partsmaster improved or XXXX third pandemic Bolt of Supply. inclusion the the Lawson quarter continued the due and within sales XX%

Partsmaster a daily compared million. $XX.X to by Partsmaster, sales generated quarter, sales the increased of excluding For average And organic year X.X% ago.

quarter, in the quarter in improved Second, in versus chain few the our despite this and a issues percentage consolidated more XX.X% XX.X% a marketplace. minutes. talk margin global to second year-ago gross the XX.X% supply about I'll

ago. compared to the of improved the sales, $X.X $X XXXX, quarter. the for $X.X in EBITDA X.X% or improvement fourth, operating adjusted Third, a quarter X.X% the year million reported million the diluted And or of was and for quarter And our EPS adjusted a $X.XX reported sequential second to our million income million for quarter. $X.X $X.X second million our was over

our we Lawson of did we within product our we federal drive the Most decline and sales reflect the quarter. have in business, business. majority continued realized rep the increases quarter, improve Within see productivity. the the does second Bolt weakness categories with government over driven Sales on that sequential as to to a forward. in in As sales sequentially continued Partsmaster third business sequential

We on ensuring progress We driving revenue our the in continue this great generating and to on safety teammates. gross of our supporting customers focused our flows. cost continue environment controls cash and environment, in margins, in sales, while this focus make remain

our we in and many of more critical the and XXth as future organization, within anniversary labor products an near light our As customers, industries. our have expertise to especially services, anticipated shortages current become

onsite which XX.X% essentially VMI XX,XXX-plus XX.X% visits are margin, and previous On a calls, Consolidated with quarter the of to QX gross were As margin the gross current a with certain XX.X% performing the quarter. compared burdened year-ago Lawson all year MRO on in flat the our the costs was before associated cost. for in compared of customers. at our margin dropped of QX gross additional last in QX within value Both with XX.X% to and reserves came service-related basis MRO below market and quarter. we XX.X% PPE margins a XX.X% in ago essentially classification write-down standalone QX mentioned to items inventory

Excluding reserves, XX.X% gross for XXXX QX were in MRO and our XX.X% margins for these QX.

state the points over reserves all excluding Despite that over me QX of of percentage the XXXX. of marketplace a margin for core certain XXX our exist chain QX in Let XXXX Lawson and basis and gross little challenges this items, expanded the points basis today differently. supply PPE XX

related and the gross second laser-focused margins growing challenging limited where with possible. needs, concentrated fast-moving managing appropriate, many from of certain not our customers' products but delivery environment, to became products, dollars DCs this and resources with place are Specific supply McCook our are chain the when the identifying price QX forward as better gross margin are this secondary Our actions In labor quarter. in sources times fill more include, increases that cross-stocking latter the ensure closely and through on we in insight national-branded our products focus of actions to now supply, line took of year we inflation. of more we our in to our suppliers gain to including on working putting to reallocating on half

adjusting manage get ability negative service While through our our impact has actions We're had level we're challenges. sales, gross overall pleased customer a on our and to margin to products percentages, backorders our with these metrics.

that challenges chain into the supply XXXX. broader-base first half we However, exist of the of many expect may

due including million year XXXX. of pandemic included cost the ago inclusion Management a which potential Luther a For quarter, a of the $X.X the $X.X reduction amendment total million Expenses ago was post million during $XX.X the ago primarily operating evaluation Schedule sales, a related on in were to King reestablishment mark-to-market increase temporary the $XX.X offset quarter. the $X.X in filed also quarter disclosed partially the a XXD expense were year put of for May compared accounting during of year in second expenses million increase acquisition, Partsmaster XX, this stock-based Capital the in by million and over This acquisitions, to to savings compensation. proposal $XX.X in million the place

Excluding costs. were compared X.X% nonrecurring expenses adjusted second labor by operating quarter to higher XXXX, primarily up of items, the driven

income quarter an On of sales operating compared in items, $X.X $X.X was QX X.X% quarter reported adjusted capabilities. the and expand XXXX. EPS $X.X being items, QX quarter. performed XXXX, Our On other versus for basis, approximately and the nonrecurring compensation quarter. as non-GAAP $X.XX operating quarter X.X% million, distribution was quarter million $X.XX work expenditures in in for quarter excluding year-ago in compared to million nonrecurring Capital stock-based for a $X.X second an $X.XX the were million for quarter. excluding And in percent including adjusted the basis, EBITDA the million for Suwanee to the the $X.X the our year-ago income adjusted to of of improved to diluted was and

the CapEx upgrades expect XXXX to at We and in to approximately allow facility total our increased to million, to future. some including the planned volume McCook range for be $X enhancements of the in now million $X.X Suwanee in

we distribution Additionally, will expanded early square with in center relocating a to location XXXX. be our footage Calgary new

to direct make in impact have in continue we particular sales. a organization, areas an the on As business, investments that

under cost improvements $X.X against to our in While chain of ended a unevenness balancing continue our pandemic and the recovery the sequential quarter and generate uncertainties the we respect and of inclusive related We net margin structure with sales trends. supply continuing to us the position position increasing in borrowing capital the the and challenges, making of $XX million, final ended acquisition on million availability $XXX credit a quarter, our second the invest our great million Partsmaster acquisitions. in and of support placing $XX.X payment for sales with in future million committed the quarter higher We this business working to quarter. the facility,

of As this will both sales technology Lawson us. reps the it. that Lawson's expectation largely all we is and now this Partsmaster in with are through organization into The coming behind the with come a have I distribution legacy And position are than order the the Mike entered systems network. from integration stated, stronger how previously managing we fulfillment utilizing center time challenging out of environment we

be Texas pieces to of certain forward, Going will certain federal a with from dedicated our requirements. in distribution government center comply business fulfilled

inflationary As disruptions. both chain I with other to costs companies, as supply Mike and due global have discussed, we have experienced the

as by We being are margins gross recovering to through challenges with in in actively our managing performance. these line our improvement including results, historical more continued evidenced our

many operator, over supply mention team. Before customers, never-ending stronger taking to questions. the The Thank challenges. more and shareholders. turn entire to now We've to I for and it the efforts the turn chain pandemic significant employees on to continues your your to through of place us commitment. our global team me still business over aspect it let I'll activities had our not the managing for fronts, you recently for up step the every operator the make on our and thank

Operator

[Operator Instructions].

from Our today first at Associates. is question Research Steinke Kevin Barrington coming

Kevin Steinke

lack I hit want start a to off the asking sales issues just just to chain to availability. related product by the of and supply about

can of more kind where, figure been but all demand that or you least a little able of you fulfill out know I qualitatively? at to a at can't there, about quantified dive and the you don't that can If is bit actually headwind be just it. is, much it you've maybe in how talk if know,

Michael DeCata

various in sure we're going jump to Yes. want aspects. both to into I'm this

product, broad-based of it is from working labor, product alternate seeing fulfill may that first availability so with we're customers' worked product And the needs, set slowdown chain closely though so we what so not customers' our substitution. trucking, the is to the done supply counter is we've running. on and challenges some for a fulfill keeps needs. that their to suppliers find to of of cases done ranges again, partnership a with products been have forth. but broader because in what we've choice that them or we So In it What customer that

So value because the see technically of longer and challenges that backorder a comes in normally environment it us, such we've XX-day the or the week period larger customers, backorders short our of generally several all the there nature a proposition, cycle one across In we XX,XXX the customer the if is are And never experiences backorder number. time of are actions for calling backorder. of experiences this never in, taken. the because within there's customer X

is it and that in slows become numerous, backorders when belief down our extend it demand. length So eventually

eventually supply its work up So can a problem. demand way to

is facing, a other in Now, while challenges MRO. labor customers servicing we're challenge everybody think in challenges, very our I themselves facing the to job unrelated that vendor-managed or doing the raw all material having that are is industry we're inventory our customers, good

there multiple on the side. dealing So and supply that dimensions customer's are we're with all the chain

customers Our experiencing same thing. the are

for does you Now, maintenance the maximizing value vendor-managed of the us about And there's is been many that customers. to of productivity and the help know, one mechanics, shortage mechanics, been truck proposition with our has driving labor things drivers of acute years diesel an service-intensive always as inventory unrelated so and forth pandemic.

with been It's cornerstone locations lots customers customers. of us been proposition noncustomers even added us because very of want the reach value But well, ultimately And core we've to? we're basically of And they're insourcing, so certain been help. because our intensified now the of and relationship turning you and out we've that to were lots helping customers incredibly because say fact call seen whatever they existing did the outsource into our and these reason fact enough we now real in us picking that cement drawing and to Ron, all cement in are So value challenges, large evidence up us now proposition. customers recently. long, are are of our that's same also new proposition, challenges. value challenges, were customers, where our for to

Ron Knutson

Kevin, One, -- touched pieces. bit. backorder. little increase Yes, I'll seen of the terms there's on Mike impact two just on in a it have sales, we our an in

June our our know a measure the we of value of So is. if that in end the not on that mentioned headwind we what the had the It's of in from sales. not on included What's that, of backorders order September, as may certainly the items Mike our backorders just end through however, through again. X% end number, about what place customers is are

we know lost that take recurring some -- replenishment think typically those would -- place we So on that that of backorders. place we've

the on So that's measure. least We replenishments. know the actual at a on difficult number X% in probably orders, back increase a of multiple pretty but it's it's missed that to the

Kevin Steinke

have Okay. did a mostly in chain nice Can year? you helpful That's we half the a feel business. you the all least margin increase? that next increases first the improving quarters coming like the thought going sequentially challenges do supply you're job price mentioned continuing commentary. attribute to that given Lawson MRO of implement the at in you more price I gross to very Yes, And here through

Ron Knutson

Ron. is this Kevin, Yes,

second of see some pricing from perspective that a in later helped taking quarter. did a actions given us we the place those So lift

trying get quarter our the when doing better our labor. the right? think the are into those combination facility. full centers benefit it's out getting we're cross-stock items to in It's DC. to third of into It manage So McCook more to we insight that. distribution to coming also But products also, what products of kind forward got It's a is I

So just of But some we've also we're taken that certainly the seen pricing actions logistically in we've the improvements what DCs. helped. given doing within

from in is we take see to not to to price we transportation would to monitor to our our of continue come suppliers, within increases then that's environment. or margins. In our cost landed are going through, that future, whether specifically. I What if tough continue the the we'll terms And question or cost actions answer inflationary say in necessary protect increases the

improvements it very, from place some in took monitoring here of quarter. as we're So could very the see the that closely, third you

Michael DeCata

[indiscernible] just Kevin, point. data the add to with

a week and X we center the was of center. During in the distribution openings out, that the catch where struggling orders inefficiencies largest distribution overtime meant third which the And in up all job quarter and also working had point that point weekends, than of At effect fewer there have we same was our on transportation. to get this XX openings. paying

you expect labor have. overtime cost would lower we So of the because efficiency fewer of hours, the labor

challenge. to has lot ability happened a difficult through a in navigate and So manage our

ability So successfully well we cost sold, of of it, that own of feel to we're the as like those labor cost ability like we along. our And pressures cost getting on we're getting both DCs. our to ahead ahead increases manage in of internal pass the our goods because feel

Kevin Steinke

to That's right. good All hear.

the here? feel So But or sequentially, given the know actions do improve we to can gross as at taken it forward margin at in like least gross but hold be to this all to you've is fluid a forward, further just it's very margin tough where actions take I is it -- you hold move environment, least might that future going answer question a you too.

Michael DeCata

you're cost. value yes, willing to years for really a value to proposition us that point by associated fluid like saying is raised customers. it's the we Customers situation. that We we that for been And are feel Yes, we proposition. have with valued offer Kevin, right, pay price

been for So for gross at and we've -- many a this time. margin long years very, very now

little hard so predict break that's going trucking could out little a challenging price logjam and so For cost coming quarters finally It's forth. and more could and to and all year. many become we to chain over the how next play on years associated Supply always our or increases. with with this a are bit increases containers

but maintain our percent stores. that grocery margin. strategic say got the take grow we've margin to we place dollars So you the continue and good as very is I process to store in to percent we like critical, not accounts, will to feel a grocery

and both very usually large focus with new when also of Kent you numbers in We've important in driving factories. got looking picking existing quarter that, going an success deeper you especially up penetration So accounts, into -- relationship factor strategic Same the our into margin dozens coming on think integrated company, exclusively choice, we accounts. Kent. partner new at large really margin in And percents. locations, strategic high-profile incredible And that and forward, the dollars of the our is up had given not we context this bring accounts with very and to supply with business. of an thing growing large us picking And is account they and customers. business, supply in dozens true large accounts company, us integrated new you've supply a turn but their integrated will

a large when effect we And with an real of are now partnership. business real and integrated very leveraging a supplier. integrated close with we a multiplying number partner doing it's So suppliers

a So put this as percent. when long margin way count dollars it's saying as all much every you bit of margin together, of

Kevin Steinke

locations that, what's adding and account strategic that understood. No, contributing sense. maybe on and just following also, just makes you up bit customers? little new strategic a talk Right. account new Can That more on to momentum

Michael DeCata

the been this at XX for we've Beyond -- normal years.

Canada, location, strategic attractive can all anywhere very pretty your in are have, servicing supply much our accounts. and that's and sales service the reps you U.S. to broad Our integrated chain, we the supply we the footprint,

competitor, long in. that came And us the this they X geography brought interestingly, us a or were and strategic an several large that relationship, supply a being we a by large very detailed won in customer. to Beyond state, that into us that integrated but they X underserved is have, brought Kent they geography locations specifically accounts, hundred so customers didn't into, existing

reputation, new the in I to companies done excellence, I aside, specifically the their Vegas operational come as conference who expanding. And came is before. not guys us X with market with music our that were X a we And about the demographics Now cases even they running, all ears. I'm labor. in I noncustomer our and contrast, way, help by an was spoke previously me. their booth several That's By keep labor our other internal And us at hadn't to talked Association Rental all customers. came challenge business about Las and out desperate, believe specifically my weeks shop to will American our said up ago. can't the they at you

look we're fragmented through forward able future customer-managed insource. our that enable a course, fair operational we to in accelerating and large to outsource, what And us now it's outsource market. our belief in people it see. win than inventory, is what that do Of customers as it's But and coverage of for will big calls being a all more this percentage investors. environment I and to excellence exactly That our buying to share of new sell, quantify they very shifting, and it's tremendously beginning That's business. my

Kevin Steinke

Okay. Great.

you quick consolidated ones have quarter side. as the monthly more just and in here what you the in average trend move do a just number the Just on more Ron, maybe -- sales for through the you've on seen third daily October? couple me

Ron Knutson

Sure.

So I can give those you, Kevin. to

it So and the in million ADS, August in month September. on of $X.XXX a million give million July, consolidated $X.XXX $X.XXX basis, to I'll you in in

October kind couple So first that are million. of business $X.XXX of would we've up of seen quarter what I continuing here say ended $X.XXX the for all Pieces up along. relative weeks slightly to we quarter. is versus in What I of right our third for slight, to at the say move would for the million

would I major the in say, no third again, saw changes, quarter. what So from we

Kevin Steinke

then we would -- little guess, we as we as the do And into lastly, headwinds we the a I PPE get or bit as I right. just XXXX? to more, past suppose start move quarter fourth in All

Ron Knutson

-- little bit. yes, we Yes, we do a

just So the were And PPE as Mike third X.X%. the in relative against Lawson, legacy in be some we mentioned mentioned, we Lawson of kind restated this, and it the here were probably Mike business, items. isolate if quarter headwinds deserves up to that you up to

over we XX%. PPE, up Excluding were

So be at degree. versus against still a I as we'll third -- pretty nearly up And quarter that look significant headwinds still to not a the the fourth of year but bit headwind, quarter, ago. little

about I quarter trend month And that sales In fact, fourth million. PPE every currently, in current $X.X kind of the million were is on our average range. $X.X running think

I we saw yes, clearly as much not in not quarter. as third -- So -- here what the

Operator

[Operator Instructions].

question-and-answer Mike session. in questions queue. I like over remarks. conference no have DeCata back to concludes for our any This We the turn closing would to

Michael DeCata

future you. Thank you. customers' you Lawson's productivity time machine are general. today. And service-intensive notice, maximize vendor-managed I utilization. and we taking reaching thank and the customers enables and than market us believe market in our have is and potential customers model ever Labor anticipates well-established to for out the joining and the to more customers Thank on their intensifying long-standing inventory before. pressures call needs

strong our operational offering for environment. on our years and experiencing And services. to geographic being excellence, demand challenging bear Our coverage, we're experience expanded products market brought product nearly and are of this XX

Have as in a believe the suppliers, extraordinary further speaking customers to we are you, the Our actions process that in critical, growth converting your partner and to to you practitioner and component navigate to with economy and and teammates, people, a restoring investment our committed showing of Thank all and enabling in and environment trusted and a this in forward you our vendor-managed Thank -- next day. waters to customers. this and I our orientation we'll ourselves look commitment a is call. that from critical XX,XXX through inventory service-intensive expect. wonderful on are environment succeed our competition. customers differentiate I innovative us difficult analytical Lawson resilient, well

Operator

you The attending for Thank concluded. conference has now presentation. today's

disconnect. now may You

Distribution Solutions (DSGR) 30 Oct 212021 Q3 Earnings call transcript