Distribution Solutions Group Inc (DSGR) 2024 Q3 法說會逐字稿

Greetings, and welcome to the Distribution Solutions Third Quarter 2024 Earnings Conference Call.

您好，歡迎參加分銷解決方案 2024 年第三季財報電話會議。

At this time all participantts are in a listen-only mode and a question-and-answer session will follow the formal presentation.

此時，所有參與者都處於僅聽模式，正式演示之後將進行問答環節。

[Operator Instructions].

[操作員說明]。

Please note this conference is being recorded.

請注意，本次會議正在錄製中。

I will now turn the conference over to your host, Mr. Steven Hooser with Investor Relations.

現在我將會議轉交給東道主投資者關係部門的 Steven Hooser 先生。

Sir, the floor is yours.

先生，地板是你的了。

Good morning, everyone, and welcome to the Distribution Solutions Group third quarter 2024 earnings call.

大家早安，歡迎參加 Distribution Solutions Group 2024 年第三季財報電話會議。

Joining me on today's call are DSG's Chairman and Chief Executive Officer, Bryan King; and Executive Vice President and Chief Financial Officer, Ron Knutson.

參加今天電話會議的還有 DSG 董事長兼執行長 Bryan King；執行副總裁兼財務長 Ron Knutson。

In conjunction with today's call, we have provided a financial results slide deck that is posted on the company's IR website at investor.dstributionsolutionsgroup.com.

結合今天的電話會議，我們提供了財務業績幻燈片，該幻燈片發佈在公司的投資者關係網站 Investor.dstributionsolutionsgroup.com 上。

Please note that statements on this call and in today's press release contain forward-looking statements concerning goals, beliefs, expectations, strategies, plans, future operating results and underlying assumptions are subject to risks and uncertainties that could cause actual results to differ materially from those described.

請注意，本次電話會議和今天的新聞稿中的陳述包含有關目標、信念、期望、策略、計劃、未來營運績效和基本假設的前瞻性陳述，這些陳述受到風險和不確定性的影響，可能導致實際結果與預期結果有重大差異描述的。

In addition, statements made during this call are based on the company's views as of today.

此外，本次電話會議中發表的聲明是基於公司今天的觀點。

The company anticipates that future developments may cause those views to change, and we may elect to update the forward-looking statements made today but disclaim any obligation to do so.

該公司預計未來的發展可能會導致這些觀點發生變化，我們可能會選擇更新今天所做的前瞻性聲明，但不承擔任何這樣做的義務。

Management will also refer to non-GAAP measures, and reconciliations to the nearest GAAP measures can be found at the end of the earnings release.

管理層還將參考非公認會計準則衡量標準，並且可以在收益發布結束時找到最接近的公認會計準則衡量標準的調節表。

The earnings release issued earlier today was posted on the Investor Relations section of our website.

今天稍早發布的收益報告已發佈在我們網站的投資者關係部分。

A copy of the release is also included in a current report on Form 8-K filed with the SEC.

新聞稿的副本也包含在向 SEC 提交的 8-K 表當前報告中。

Lastly, this call is being webcast and on the Internet via the Distribution Solutions Group Investor page on the company's website.

最後，本次電話會議將透過公司網站上的 Distribution Solutions Group Investor 頁面進行網路直播和網路直播。

A replay of this teleconference will be available through November 14, 2024.

本次電話會議的重播將持續至 2024 年 11 月 14 日。

Now I would like to turn the call over to Bryan King.

現在我想把電話轉給布萊恩金。

Bryan?

布萊恩？

Thanks, Steven and good morning, everyone.

謝謝史蒂文，大家早安。

Thank you all for joining us today.

感謝大家今天加入我們。

We plan to share a brief overview of the quarter's results with an update on our initiatives, before opening the line for questions.

我們計劃在開始提問之前分享本季業績的簡要概述以及我們舉措的最新情況。

Starting on Slide 4, we again reported record quarterly sales, up 6.6% compared to last year's third quarter.

從投影片 4 開始，我們再次報告了創紀錄的季度銷售額，與去年第三季相比成長了 6.6%。

Although organic sales were down 2.1% this quarter, what stood out this quarter was the excellent traction we are seeing at Gexpro Services that includes new customer wins and the sequential progression that continued in certain end markets including renewables, technology and aerospace and defense.

儘管本季有機銷售額下降了2.1%，但本季最突出的是我們在Gexpro Services 看到的出色牽引力，其中包括贏得新客戶以及在可再生能源、技術、航空航天和國防等某些終端市場上持續取得的連續進展。

More broadly, we saw a continued lackluster industrial backdrop.

更廣泛地說，我們看到工業背景持續低迷。

However, our commitment to our shareholders is to focus on what is in our control and in that regard we are making solid progress.

然而，我們對股東的承諾是專注於我們控制的事情，在這方面我們正在取得紮實的進展。

At Lawson, after a year of adding sales tools, reimagining our sales territories and processes and implementing focused insights for customer engagements as we dig into our transactional data, we are excited to be in a position to begin adding to our sales rep count, following a period of critical investments, new processes and reconfiguration of our sales strategies that we believe will continue to allow our reps to operate at a higher level of productivity and importantly, allow us to recruit and retain new reps in the significantly more productive territories and provide them with better tools for success.

在Lawson，經過一年的時間，我們增加了銷售工具，重新構想了我們的銷售區域和流程，並在深入研究交易數據時對客戶參與度實施了有針對性的見解，我們很高興能夠開始增加我們的銷售代表人數，如下這是一個關鍵投資、新流程和銷售策略重新配置的時期，我們相信這將繼續使我們的銷售代表以更高的生產力水平運作，重要的是，使我們能夠在生產力顯著提高的地區招募和留住新的銷售代表，並提供他們擁有更好的成功工具。

We also confirmed as part of this process, an additional 130 new sales territories.

作為此流程的一部分，我們還確認了另外 130 個新的銷售地區。

We've made good progress on integrations across DSG, most notably on TestEquity, Hisco, where we've captured more cost savings than we underwrote and are seeing the cross selling wins we had anticipated with Hisco's OEM offering getting pulled into TestEquity and Gexpro Services' legacy customers.

我們在整個DSG 的整合方面取得了良好進展，尤其是在TestEquity、Hisco 上，我們節省的成本比我們承保的還要多，並且看到了我們預期的交叉銷售勝利，因為Hisco 的OEM 產品被納入TestEquity和Gexpro 服務' 傳統客戶。

This industrial technologies focused vertical has made tremendous strides integrating all its acquisitions.

這個專注於垂直領域的工業技術在整合其所有收購方面取得了巨大進展。

And while it has faced a tough marketplace backdrop between excess Test and Measurement inventory in the channel and weak electronics manufacturing, the channel concerns have largely been cleaned up and the vertical is enjoying stable activity even while broader industrial activity remains weak with a growing book to bill.

儘管它面臨著渠道測試和測量庫存過剩和電子製造疲軟之間的嚴峻市場背景，但渠道問題已基本得到解決，垂直市場活動穩定，儘管更廣泛的工業活動仍然疲軟，訂單量不斷增長。

We need to see the key end markets that have been soft like electronics manufacturing to spool back up to be able to demonstrate the earnings leverage that we built into this vertical.

我們需要看到電子製造業等一直疲軟的關鍵終端市場回升，以便能夠展示我們在這一垂直領域建立的獲利槓桿。

Finally, the quarter highlights include announcing three acquisitions that went through a rigorous capital allocation process, where each offer a unique value proposition to customers and the DSG platform and reflect a disciplined but programmatic and active capital acquisition strategy that is hitting stride, while accomplishing defined objectives at attractive valuations.

最後，本季的亮點包括宣布了三項經過嚴格資本分配流程的收購，其中每項收購都為客戶和DSG 平台提供了獨特的價值主張，並反映了紀律嚴明但程序性和積極的資本收購策略，該策略正在大步前進，同時實現既定目標目標估值具有吸引力。

Despite an active hurricane season, DSG's consolidated organic sales improved slightly up 0.2% in the third quarter compared to the second quarter and closer to 1%, if you weigh in the ADS of the three verticals.

儘管颶風季節活躍，但 DSG 的綜合有機銷售額在第三季度比第二季度小幅增長 0.2%，如果考慮三個垂直行業的 ADS，則接近 1%。

We also have begun to lap easier sales comps from a year ago, which should be a positive as we end the year and begin 2025, despite seasonally slower months ahead.

我們也開始比一年前更輕鬆地進行銷售比較，這在年底和 2025 年開始時應該是積極的，儘管未來幾個月將出現季節性放緩。

We generated third quarter consolidated adjusted EBITDA of $49.1 million or 10.5%, which is an improvement over last year's third quarter of 10% and sequentially over the second quarter of 10.3% of sales.

我們第三季的綜合調整後 EBITDA 為 4,910 萬美元，即 10.5%，比去年第三季的 10% 有所提高，也比第二季的 10.3% 的銷售額有所提高。

We are committed to carefully manage our costs to create better operating leverage.

我們致力於謹慎管理成本，以創造更好的營運槓桿。

We're taking a disciplined approach, but it is a journey where we do not control the end markets to optimize DSG's cost structure and sales processes with a line of sight around driving structurally higher margins and returns on invested capital.

我們正在採取嚴格的方法，但這是一個我們不控制終端市場的過程，以優化 DSG 的成本結構和銷售流程，並著眼於推動結構性更高的利潤和投資資本回報。

As I've said before, we are committed to building a better and more valuable business for all our partners and appreciate that the progression will not be linear, in the challenging market backdrop of the last year and longer in Test & Measurement equipment.

正如我之前所說，我們致力於為所有合作夥伴打造更好、更有價值的業務，並認識到，在去年和更長時間內測試與測量設備充滿挑戰的市場背景下，進展不會是線性的。

That said, we have a committed and aligned team with a mandate to scour for levers to unlock incremental profitability and operational efficiencies, while thoughtfully challenging each other around what is the best way to serve customers going forward.

也就是說，我們擁有一支忠誠且團結的團隊，其任務是尋找槓桿以釋放增量獲利能力和營運效率，同時深思熟慮地相互挑戰，探討未來為客戶提供服務的最佳方式。

Our internal mandate is to unlock incremental profitability and operational efficiencies.

我們的內部任務是提高獲利能力和營運效率。

This discipline unlocks cash flows and identifies areas to reinvest those cash flows into high return organic and inorganic opportunities that the collective shareholder focused team embraces with an emphasis on monitoring leverage and strengthening our balance sheet as we continue to add key capabilities and services to our platform with a commitment to make DSG a structurally better partner, long-term for our customers and customer facing colleagues as well as a better long-term compounder for our shareholders.

這項規則釋放了現金流，並確定了將這些現金流再投資到以集體股東為中心的團隊所擁抱的高回報有機和無機機會的領域，重點是在我們繼續向我們的平台添加關鍵功能和在服務的同時，監控槓桿率並加強我們的資產負債表致力於使 DSG 成為我們的客戶和麵向客戶的同事的結構上更好的長期合作夥伴，並成為我們股東更好的長期複合者。

We've underscore to shareholders the ongoing comprehensive deep dive by our DSG management teams with strong support from The LKCM Headwater team and external resources where we are looking to improve our long-term customer intimacy proposition and measure key profitability and return metrics and levers to drive them sustainably higher overtime within each of our verticals.

我們向股東強調，在LKCM Headwater 團隊和外部資源的大力支持下，我們的DSG 管理團隊正在進行全面深入的研究，我們希望改善我們的長期客戶親密度主張，並衡量關鍵的盈利能力和回報指標以及槓桿，以實現我們的目標。

Our process is to rigorously evaluate opportunities for investment and then prioritize capital allocation to the best and highest returns on initiatives and acquisitions that drive accomplishing our long-term goals.

我們的流程是嚴格評估投資機會，然後優先考慮資本配置，以實現我們長期目標的舉措和收購的最佳和最高回報。

We've maintained a healthy and active pipeline of acquisitions through the first nine months of 2024, with strategic acquisition opportunities being executed for each vertical.

到 2024 年前 9 個月，我們一直保持健康、活躍的收購管道，並為每個垂直領域執行策略性收購機會。

I'll now walk through the strategic rationale for the three most recent acquisitions and then cover other initiatives within each of the verticals, afterwards.

現在，我將介紹最近三項收購的策略原理，然後介紹每個垂直領域內的其他舉措。

In August we closed on our Source Atlantic acquisition, which generates significant scale and geographic expansion in Canada to improve our strategic North American footprint.

八月，我們完成了對 Source Atlantic 的收購，這在加拿大產生了顯著的規模和地理擴張，以改善我們在北美的策略足跡。

As we discussed last quarter, Source Atlantic takes our Canadian business from a regional MRO player to a national MRO player in the country.

正如我們上季度討論的那樣，Source Atlantic 將我們的加拿大業務從區域性 MRO 參與者轉變為該國的全國性 MRO 參與者。

The combined platform will have a breadth of leading positions in fastener safety supplies and other specialty services and offering that each business alone lacked.

合併後的平台將在緊固件安全供應和其他專業服務和產品方面擁有廣泛的領先地位，而這是每個企業單獨所缺乏的。

Our team has spent more time, with a broader set of the Source Atlantic employees which has increased our excitement about the talent, capabilities, growth culture and operational discipline the Source Atlantic team is bringing to DSG.

我們的團隊花了更多時間，與更廣泛的 Source Atlantic 員工合作，這讓我們對 Source Atlantic 團隊為 DSG 帶來的人才、能力、成長文化和營運紀律更加興奮。

Not every acquisition can bring the rich heritage and thoughtful stewardship of a business like Source Atlantic does where it has roots in Eastern Canada that go back to 1867.

並非每筆收購都能像 Source Atlantic 這樣的企業帶來豐富的傳統和周到的管理，該公司的根源可追溯到 1867 年加拿大東部。

As Ron will explain further in a moment, the Canadian branch division is a new reportable segment that I felt like allows better visibility to our shareholders than having it integrated into our Lawson MRO platform allowing us all to track and follow the growth of this Canadian business.

正如羅恩稍後將進一步解釋的那樣，加拿大分公司是一個新的可報告部門，我認為與將其整合到我們的Lawson MRO 平台相比，它可以讓我們的股東獲得更好的可見性，從而使我們所有人都能追蹤和追蹤這家加拿大業務的成長。

Source Atlantic brings CAD250 million or approximately US$180 million of annual revenue 600 colleagues and 1,000 of new customers at DSG, enhancing our opportunity to serve our existing MRO customers and employees under Bolt Supply and Lawson Canada were important underwriting elements in our decision to pursue this acquisition as well as how to improve our strategic and revenue growth lens in Canada across DSG's three verticals.

Source Atlantic 帶來2.5 億加元或約1.8 億美元的年收入DSG 的600 名同事和1,000 名新客戶，增強了我們為現有MRO 客戶提供服務的機會，Bolt Supply 和Lawson Canada 的員工是我們決定追求這一目標的重要承保因素收購以及如何改善我們在加拿大 DSG 三個垂直領域的策略和收入成長鏡頭。

Our goal is to leverage the combined Source Atlantic Bolt enhanced position in the Canadian market to improve growth in what we broadly see as a ripe and growing Canadian marketplace for our collective DSG offerings.

我們的目標是利用合併後的 Source Atlantic Bolt 在加拿大市場上增強的地位，以促進我們廣泛認為是我們集體 DSG 產品的成熟且不斷增長的加拿大市場的成長。

Next, we recently announced our acquisition of ConRes Test Equipment, a carve out from Continental Resources Incorporated.

接下來，我們最近宣布收購 ConRes Test Equipment，該公司是大陸資源公司 (Continental Resources Incorporated) 旗下的子公司。

ConRes scored very high as an accretive use of capital across our priorities.

ConRes 得分非常高，因為它在我們的優先事項中增加了資本的使用。

Our analysis of TestEquity's, value-added capabilities in its Test and Measurement lines of business brought to light significant opportunities to prioritize areas that bring more customer intimacy and value-added support to our customers with improvement desired in several key geographies, most notably the Northeast.

我們對TestEquity 測試和測量業務線中的增值能力的分析揭示了重要的機會，可以優先考慮為我們的客戶帶來更多客戶親密度和增值支援的領域，並在幾個關鍵地區（尤其是東北地區）進行改進。

The addition of a Northeast calibration laboratory and ConRes' employees offer DSG added sales and support in key growth markets in the Northeast where many of our global customers have a presence.

Northeast 校準實驗室和 ConRes 員工的增加為 DSG 在東北部主要成長市場提供了額外的銷售和支持，我們的許多全球客戶都在該市場開展業務。

We believe that an accretive acquisition like ConRes allows us to accelerate historical asset utilization rates, resulting in an appreciable improvement opportunity on our returns on invested capital for our specialty lines of business like rental used and calibration.

我們相信，像 ConRes 這樣的增值收購使我們能夠加快歷史資產利用率，從而為我們的租賃使用和校準等專業業務領域的投資資本回報帶來顯著改善的機會。

We also believe in the direction adding ConRes takes our Test and Measurement line of business and engaging a more holistic long-term lens to support our customers, customer facing associates and key vendors.

我們也相信添加 ConRes 將為我們的測試和測量業務線帶來方向，並以更全面的長期視角來支援我們的客戶、面向客戶的員工和主要供應商。

ConRes reflects the transaction similar to terms and how we would assign value to purchasing a large fleet of used Test and Measurement equipment to place an inventory at what we believe is a point in time where the current market environment to grow our rental and used fleet is depressed.

ConRes 反映了類似於條款的交易，以及我們如何為購買大量二手測試和測量設備分配價值，以在我們認為當前市場環境增長我們的租賃和二手設備的時間點上庫存。

This allows for real upside as we did not have to ascribe value to the calibration lab, which was critical to our underwriting decision as it adds a third DSG lab in a key geography to an asset base and strategy where we are focused on unlocking additional value through more value-added services.

這帶來了真正的好處，因為我們不必將價值歸於校準實驗室，這對我們的核保決策至關重要，因為它將關鍵地理位置的第三個DSG 實驗室添加到資產基礎和策略中，我們專注於釋放額外價值透過更多的加值服務。

We believe shareholders will benefit or will enjoy the benefits of immediately folding in cash flows and expanding engagement through established relationships with excellent customers.

我們相信股東將受益或將享受立即折疊現金流和透過與優秀客戶建立的關係擴大參與度的好處。

We already serve many of ConRes top tier national customers in other parts of the country.

我們已經為該國其他地區的許多 ConRes 頂級國內客戶提供服務。

This tuck-in acquisition brings on day one about $12 million in annual revenues that we should be able to immediately enhance, while executing towards improved asset utilization, driving our returns and margins higher.

此次收購從第一天起就帶來了約 1,200 萬美元的年收入，我們應該能夠立即提高收入，同時提高資產利用率，提高我們的回報和利潤。

We also recently announced our Tech-Component Resources or TCR acquisition.

我們最近也宣布了對技術組件資源或 TCR 的收購。

Although smaller than the other two businesses discussed today this one is highly strategic to our Gexpro Services business as it provides an important beachhead operation in what is being called the global semiconductor supply chain hub in Southeast Asia as a distributor of fasteners, mechanical components and other industrial products serving key existing OEM customers of Gexpro Services and now TCR.

雖然規模小於今天討論的其他兩家公司，但這家公司對我們的Gexpro 服務業務具有高度戰略意義，因為它作為緊固件、機械部件和其他產品的分銷商，在東南亞所謂的全球半導體供應鏈中心提供了重要的灘頭業務。

With its headquarters in Singapore and a second location in Malaysia this business provides us with an expanded geographic footprint and an ability to pull-through our best-in-class offering around products and service capabilities to best serve the expansion efforts of existing global customers.

該業務總部位於新加坡，第二個地點位於馬來西亞，為我們提供了更大的地理覆蓋範圍，並能夠圍繞產品和服務能力提供一流的產品和服務，以最好地服務於現有全球客戶的擴張努力。

This gives our customers better access to Gexpro Services, which is a trusted partner for OEM Class C-parts in a growing critical marketplace.

這使我們的客戶能夠更好地獲得 Gexpro Services，Gexpro Services 是不斷增長的關鍵市場中 OEM C 級零件值得信賴的合作夥伴。

Expanding DSG's market potential with a critical geographic footprint for products and service offerings in these regions of the world, extends opportunities in key end markets including technology, semiconductor, industrial and manufacturing.

透過在世界這些地區提供產品和服務的關鍵地理足跡，擴大 DSG 的市場潛力，擴大技術、半導體、工業和製造業等關鍵終端市場的機會。

We know that Gexpro Services is well-positioned to expand TCR's products and service capabilities for a broader and more diversified selection of offerings, creating a superior customer value proposition.

我們知道，Gexpro Services 處於有利位置，可以擴展 TCR 的產品和服務能力，提供更廣泛、更多樣化的產品選擇，從而創造卓越的客戶價值主張。

This small acquisition also fits well into our long-term customer strategy, while enhancing our key profitability and return metric objectives for Gexpro Services and we believe was an excellent allocation of a modest amount of capital for what it is accomplishing for existing customers and the value it will unlock.

這次小型收購也非常適合我們的長期客戶策略，同時增強了Gexpro Services 的關鍵獲利能力和回報指標目標，我們認為，對於為現有客戶實現的目標和價值而言，這是對適量資本的出色配置。

Let's turn to slide 5 and I will provide updates on initiatives under our three business platforms and discuss our outlook in a few moments.

讓我們轉向幻燈片 5，我將提供有關我們三個業務平台下的舉措的最新信息，並稍後討論我們的前景。

Lawson.

勞森。

Lawson's MRO focused vertical now includes the Canadian operating unit that we expanded significantly with Source Atlantic that we mentioned earlier.

Lawson 專注於 MRO 的垂直領域現在包括加拿大營運部門，我們之前提到過，我們透過 Source Atlantic 對該部門進行了大幅擴展。

Under Cesar's leadership we will manage and report the Bolt -- Source Atlantic financial results separately from Lawson's business.

在 Cesar 的領導下，我們將獨立於 Lawson 的業務來管理和報告 Bolt - Source Atlantic 的財務表現。

We believe this provides important visibility for management, as well as for investors to track and monitor our Canadian MRO growth strategy and it is consistent with how we as your partners will manage and measure its accomplishments.

我們相信，這為管理層以及投資者追蹤和監控我們的加拿大 MRO 成長策略提供了重要的可見性，並且它與我們作為您的合作夥伴管理和衡量其成就的方式是一致的。

Our MRO focused vertical now represents 38% of DSG's consolidated revenues on a trailing 12-month basis, which includes all of Lawson's acquisitions to date.

我們以 MRO 為重點的垂直領域目前佔 DSG 過去 12 個月綜合收入的 38%，其中包括 Lawson 迄今為止的所有收購。

On the organic side, we continue to invest in our sales force transformation, with a goal of 900 sales reps by year end and a line of sight around 1,000 reps midway through next year.

在有機方面，我們繼續投資於銷售團隊轉型，目標是到年底擁有 900 名銷售代表，並在明年中期實現 1,000 名銷售代表左右的目標。

We also have identified through our sales territory realignment and our rollout of new technology enhanced sales tools and data insights, 134 new sales territories that we did not previously have identified.

透過銷售區域的重新調整以及新技術增強銷售工具和數據洞察力的推出，我們還確定了 134 個我們之前未確定的新銷售區域。

Our team's efforts have validated that new greenfield territories, are about twice what they had been scoped and in previous periods.

我們團隊的努力已經證實，新的綠地面積大約是先前時期的兩倍。

Our rep count increased by 22, in the third quarter.

第三季我們的代表人數增加了 22 名。

While still early, our territory remapping of reps through Lawson's new CRM is making excellent progress.

雖然還處於早期階段，但我們透過 Lawson 的新 CRM 重新規劃銷售代表的區域已經取得了顯著的進展。

We also understand that adding new reps requires an investment as they ramp up, even when offered a highly targeted book of business.

我們也知道，即使提供了高度針對性的業務手冊，增加新代表也需要在他們成長的過程中進行投資。

Our commitment to our sales force is genuine, and we as we are loading them with tools and support resources and actively incentivizing production and monitoring progress, we want the sales force to be motivated to earn more than Lawson outside sellers earned in the past.

我們對銷售人員的承諾是真誠的，當我們為他們配備工具和支持資源並積極激勵生產和監控進度時，我們希望銷售人員能夠獲得比勞森外部賣家過去賺取的更多收入。

We needed these tools and measures to be in place to demonstrate to our sellers and those we are actively recruiting, that we are in a different chapter of this business a modern and growth chapter.

我們需要這些工具和措施到位，以向我們的賣家和我們正在積極招聘的賣家證明，我們正處於這項業務的不同篇章中，這是一個現代化和增長的篇章。

We continue to train all reps in the development and engagement process, with the goal of more consistent and even order flows for our customers.

我們繼續在開發和參與過程中對所有代表進行培訓，目標是為我們的客戶提供更一致和均勻的訂單流。

Getting the right people and technology synchronized on top of our territory optimization strategy, is an investment that we understood when we started it, with the recruitment of Cesar, and no one is more impatient about more -- and more committed to this initiative than me.

在我們的領土優化策略之上同步合適的人員和技術，是一項投資，我們在開始這項投資時就明白了，隨著塞薩爾的招募，沒有人比我更不耐煩，也更致力於這一舉措。

It takes time and disciplined execution to produce the results, we desire.

我們希望，需要時間和嚴格的執行才能產生結果。

For Lawson, I have believed wholeheartedly in it for a decade, as the most important initiative for the shareholders, sellers and customers of Lawson.

對於羅森，我十年來一直堅信，這是對羅森的股東、賣家和顧客來說最重要的舉措。

Some of the technology tools and insights have taken longer to roll out than we wanted, and we have been slower to start backfilling and growing our sales force than we should have been, but we have made tremendous strides with great insights ever improving accountability and are back in an investment growth mode around feet on the street, which we know in a VMI centric business, is paramount to growing customer engagement and revenues.

一些技術工具和見解的推出時間比我們想要的要長，而且我們開始回補和發展銷售隊伍的速度也比我們應有的要慢，但我們憑藉偉大的見解取得了巨大的進步，不斷改善問責制，並且回到圍繞街頭的投資成長模式，我們知道，在以 VMI 為中心的業務中，這對於提高客戶參與度和收入至關重要。

We also added the three key acquisitions that addressed areas of opportunity to drive improved margins and returns across our MRO offering this year.

我們還增加了三項關鍵收購，這些收購解決了今年推動提高 MRO 產品利潤和回報的機會領域。

We already discussed Source Atlantic, and we continue to tackle operational and selling initiatives on Emergent Safety Supply or ESS, with product brand extension strategies for Lawson in the safety category.

我們已經討論了 Source Atlantic，並且我們將繼續解決緊急安全供應（ESS）的營運和銷售計劃，以及勞森在安全類別中的產品品牌延伸策略。

We are extremely encouraged with how our S&S Automotive acquisition is already expanding our Kent Automotive division's product offering and presence, both in the auto collision repair market and now opening more opportunities with auto dealerships.

我們對 S&S Automotive 的收購擴大了 Kent Automotive 部門的產品供應和影響力，無論是在汽車碰撞修復市場還是現在為汽車經銷商提供了更多機會，這讓我們深受鼓舞。

These category and brand expansion initiatives deliver growth, better margins and an ability to scale into new markets and customers.

這些類別和品牌擴張計劃可帶來成長、更高的利潤以及擴展到新市場和客戶的能力。

S&S has an extremely profitable operating model and is helping inform our Kent Automotive division, which has enjoyed significant organic growth momentum on how to drive profitability to levels not previously contemplated.

S&S 擁有極其盈利的運營模式，並正在為我們的 Kent Automotive 部門提供信息，該部門在如何將盈利能力提高到之前未曾設想的水平方面享有顯著的有機增長勢頭。

At Gexpro Services, we continue to see a resurgence of business in four key verticals technology, renewable, transportation and aerospace and defense.

在 Gexpro Services，我們繼續看到四個關鍵垂直技術（再生能源、運輸、航空航太和國防）的業務復甦。

These end markets are now demonstrating year-over-year and strong sequential growth, which is encouraging.

這些終端市場目前呈現出逐年強勁的環比成長，這是令人鼓舞的。

It is still early days, but project business also appears to be coming back and we are staying diligent with tightly managing costs on a growing sales base.

現在還處於早期階段，但專案業務似乎也在復甦，我們將在不斷增長的銷售基礎上繼續努力嚴格管理成本。

We are aligning resources to stay ahead of business acceleration in certain verticals especially, technology.

我們正在調整資源，以在某些垂直領域（尤其是技術領域）的業務加速中保持領先。

In Gexpro Services, we are expanding our leadership team to drive the commercial efforts to expand and deepen our customer relationships, while attracting new business.

在 Gexpro Services 中，我們正在擴大領導團隊，以推動商業努力，擴大並深化我們的客戶關係，同時吸引新業務。

The growth in sales and managing our costs has resulted in strong net margin expansion in 2024.

銷售額的成長和成本管理導致 2024 年淨利潤率強勁成長。

Our 2021 and 2022 acquisitions, which collectively had great 2022s, are now more integrated and present a stronger Gexpro Services total value-added proposition to customers.

我們 2021 年和 2022 年的收購在 2022 年整體表現出色，現在更加整合，為客戶提供了更強大的 Gexpro Services 總增值主張。

As a whole, they had a tough profitability year in 2023, as we invested in them and some of their key markets softened.

總體而言，他們在 2023 年的盈利能力很艱難，因為我們對他們進行了投資，而且他們的一些關鍵市場疲軟了。

As many of their end markets are firming back up, those acquisitions are starting to demonstrate their renewed earnings benefit for the Gexpro Services vertical.

隨著許多終端市場的復甦，這些收購開始展示它們為 Gexpro Services 垂直領域帶來的新的獲利優勢。

We continue to be very pleased with our Frontier and Resolux acquisitions, as they present expanded opportunities and we are very excited about the upside potential for TCR that we just discussed earlier.

我們仍然對 Frontier 和 Resolux 的收購感到非常滿意，因為它們提供了更多的機會，而且我們對我們之前討論的 TCR 的上行潛力感到非常興奮。

At TestEquity Group, we continue to see an uptick in our Test and Measurement sales as compared to late 2023 and early 2024, a positive sign of growing demand in market activity.

在 TestEquity Group，與 2023 年底和 2024 年初相比，我們的測試和測量銷售量持續上升，這是市場活動需求不斷增長的積極跡象。

In market strength is demonstrated through improving metrics in aerospace and defense technology and R&D, which we believe aligns with new fiscal year budgets.

市場實力是透過改善航空航太和國防技術及研發指標來證明的，我們認為這與新的財政年度預算相符。

Our commitment to our key vendors and customers during the last 18 months of choppiness has resulted in gaining market share in key areas and unlocked some key growth opportunities as we remain committed to capitalizing on our improved value proposition and set of capabilities for our channel partners created by pulling together TestEquity, TEquip, and Hisco, most notably, in this vertical and how they are able to better engage with the broader DSG capabilities.

在過去18 個月的動盪期間，我們對主要供應商和客戶的承諾導致我們在關鍵領域獲得了市場份額，並釋放了一些關鍵的成長機會，因為我們仍然致力於利用我們改進的價值主張和為我們的通路合作夥伴創建的一系列能力最值得注意的是，在這個垂直領域，我們將 TestEquity、TEquip 和 Hisco 結合在一起，以及它們如何更好地利用更廣泛的 DSG 功能。

On the capital equipment side of this vertical, we are seeing record bookings for two months now, which we believe foretells a commitment by our customers to invest back in their business, even as we continue to face softness in our OEM order volume per invoice across certain manufacturing and markets in the U.S. and Mexico, especially with our electronic manufacturing customers.

在這個垂直領域的資本設備方面，我們看到兩個月來的預訂量創歷史新高，我們相信這預示著我們的客戶承諾投資回他們的業務，儘管我們繼續面臨每張發票的OEM 訂單量疲軟的局面。

Related to Hisco, our integration actions are mostly completed.

與Hisco相關，我們的整合行動已基本完成。

Our cost takeouts largely realized, and growth initiatives are well underway.

我們的成本支出已基本實現，成長計畫正在順利進行。

At TestEquity, our strategic focus continues to be on expanding wallet share with customers, driving repeatable business on the consumable side, and optimizing digital selling capabilities.

在 TestEquity，我們的策略重點仍然是擴大客戶的錢包份額、推動消費品方面的可重複業務以及優化數位銷售能力。

We believe that supply chains have normalized for our key vendors.

我們相信我們的主要供應商的供應鏈已經正常化。

We've grown our market share with them through persistent commitment, and our approach and platform is allowing us to expand our vendor relationships.

透過堅持不懈的承諾，我們與他們一起增加了市場份額，我們的方法和平台使我們能夠擴大我們的供應商關係。

Although, business remains choppy in some areas, we are seeing the benefit of our disciplined approach and improved platform across a number of our strategic comparatives this year and are optimistic that we will see sales and margins build quickly as our end markets return.

儘管某些領域的業務仍然不穩定，但我們今年在許多策略比較中看到了我們嚴格的方法和改進的平台的好處，並且樂觀地認為，隨著我們的終端市場的回歸，我們將看到銷售額和利潤率迅速上升。

With that, I will turn it over to Ron and then come back to add some closing comments.

這樣，我會將其交給羅恩，然後回來添加一些結束語。

Thank you, Bryan, and good morning, everyone.

謝謝布萊恩，大家早安。

As with Bryan, I will keep my comments brief, but we'll highlight a few key takeaways within each of the verticals for the quarter.

與布萊恩一樣，我的評論將保持簡短，但我們將重點介紹本季每個垂直領域的一些關鍵要點。

Turning to Slide 6.

轉到投影片 6。

DSG's consolidated revenue for the quarter was $468 million.

DSG 本季的綜合營收為 4.68 億美元。

This represents an increase of $29.1 million, or 6.6%, driven by $38.1 million coming from our 2024 acquisitions.

這意味著增加了 2,910 萬美元，即 6.6%，主要得益於 2024 年收購帶來的 3,810 萬美元。

Organic sales declined by 2.1% versus a year ago, and we will provide average daily sales by operating segment in a few moments.

有機銷售額與去年同期相比下降了 2.1%，我們稍後將提供按營運部門劃分的日均銷售額。

From the second to the third quarter, total sales sequentially grew by 6.5%, again fueled by our acquisitions, while organic sales were up 0.2%.

從第二季度到第三季度，總銷售額環比增長了 6.5%，這再次得益於我們的收購，而有機銷售額增長了 0.2%。

For the quarter, we generated adjusted EBITDA of $49.1 million, up 12.4% over the prior year, and up 8.7% versus the second quarter.

本季度，我們的調整後 EBITDA 為 4,910 萬美元，比上年同期成長 12.4%，比第二季度成長 8.7%。

Our adjusted EBITDA margin improved to 10.5%, up 50 bps compared to last year's quarter and up 20 bps sequentially.

我們調整後的 EBITDA 利潤率提高至 10.5%，與去年同期相比提高了 50 個基點，比上一季提高了 20 個基點。

As expected, the acquisition of Source Atlantic in the quarter depressed our net margins by approximately 20 bps.

正如預期的那樣，本季收購 Source Atlantic 使我們的淨利潤率下降了約 20 個基點。

We reported operating income of $18.9 million for the quarter, inclusive of $12 million of acquisition related and tangible amortization expense and $11.5 million primarily due to non-cash stock-based compensation in non-recurring charges such as retention and acquisition related costs and other one-time items.

我們報告的本季營業收入為1,890 萬美元，包括1,200 萬美元的收購相關和有形攤銷費用，以及1,150 萬美元，主要是由於非經常性費用中的非現金股票補償，例如保留和收購相關成本及其他費用-時間項目。

Adjusted operating income improved to $42.5 million, or 9.1% of sales, compared to 38 million, or 8.7% of sales compared to the year ago quarter and a sequential improvement from 8.8% of sales compared to Q2.

調整後營業收入增至 4,250 萬美元，佔銷售額的 9.1%，而去年同期為 3,800 萬美元，佔銷售額的 8.7%，與第二季相比，佔銷售額的 8.8% 環比有所改善。

We reported GAAP diluted income per share of $0.46 for the quarter, inclusive of a $0.40 tax benefit as required under GAAP based on the anticipated effective tax rate for the full year.

我們報告的本季度 GAAP 攤薄後每股收益為 0.46 美元，其中包括根據 GAAP 要求、基於全年預期有效稅率的 0.40 美元稅收優惠。

This compares to a loss per share of $0.3 in the year ago quarter.

相比之下，去年同期每股虧損 0.3 美元。

Adjusted EPS was $0.37 for the quarter compared to $0.40 in Q2 and $0.35 a year ago quarter.

本季調整後每股收益為 0.37 美元，而第二季為 0.40 美元，去年同期為 0.35 美元。

Turning to Slide 7, let me now comment briefly on each of the operating segments.

轉到幻燈片 7，現在讓我簡要評論每個操作部分。

Starting with Lawson, sales were $118 million and average daily sales with one more selling day versus a year ago were up 1.4% on acquired revenue this year.

從勞森開始，銷售額為 1.18 億美元，如果增加一個銷售日，今年的平均每日銷售額與去年同期相比成長了 1.4%。

Organic average daily sales were down 10% due to a lower sales rep counts and certain end market and customer headwinds.

由於銷售代表人數減少以及某些終端市場和客戶的不利因素，有機平均每日銷售額下降了 10%。

In particular, federal government contributed to approximately 50% of this decline as the ordering processes are being revamped at the federal level.

特別是，由於聯邦層級正在修改訂購流程，聯邦政府對此下降的影響約佔 50%。

Net rep counts increased between Q2 and Q3 and we ended the quarter with approximately 860 field sales reps compared to 835 at the end of Q2 and approximately 900 in the year ago quarter.

第二季和第三季之間的淨代表人數有所增加，本季結束時，我們有大約 860 名現場銷售代表，而第二季末為 835 名，去年同期為 900 名。

While we continue to build a stronger Lawson by investing in our sales support team, we have not yet seen the benefit of these investments roll through our financial results.

雖然我們繼續透過投資銷售支援團隊來打造更強大的羅森，但我們尚未看到這些投資的效益體現在我們的財務表現中。

These efforts take time as we are making numerous changes that will benefit our sales reps and our company on a longer-term basis.

這些努力需要時間，因為我們正在做出許多改變，這些改變將使我們的銷售代表和我們的公司長期受益。

Lawson reported adjusted EBITDA of $15.5 million or 13.1% of sales down 50 bips from Q2.

Lawson 公佈調整後 EBITDA 為 1,550 萬美元，佔銷售額的 13.1%，較第二季下降 50 個百分點。

We anticipated more uncertainty and choppiness than results for Lawson based on a ramp of sales reps and uncertainty around end markets and larger customer activity.

基於銷售代表的增加以及終端市場和更大客戶活動的不確定性，我們預期勞森的不確定性和波動性會比結果更大。

Turning to slide 8 as Bryan previewed we added a new reporting segment that combines Bolt Supply House previously included in our other segment with Source Atlantic to report separately on our Canadian Branch business supporting the MRO market.

轉向幻燈片8，正如Bryan 預覽的那樣，我們添加了一個新的報告部分，該部分將之前包含在我們其他部分中的Bolt Supply House 與Source Atlantic 結合起來，單獨報告我們支持MRO 市場的加拿大分公司業務。

We call this new affordable segment the Canada Branch division which we believe adds good visibility and accountability to this somewhat different leg under our Lawson product MRO focused business unit.

我們將這個新的經濟實惠的細分市場稱為加拿大分公司部門，我們認為該部門為我們以勞森產品MRO 為重點的業務部門下的這一有些不同的分支增加了良好的可見性和問責制。

Sales for this new Canada segment were $39.1 million including $24.7 million from the Source Atlantic acquisition mid quarter.

加拿大這項新業務的銷售額為 3,910 萬美元，其中包括季度中期收購 Source Atlantic 的 2,470 萬美元。

Excluding the acquired revenue sales increased 6.2% from the year ago quarter.

剔除已獲得的收入，銷售額較去年同期成長 6.2%。

Key operational initiatives are focused on the integration of Bolt and Source including optimizing the sales force, cost management and integrating product availability.

主要營運措施集中在 Bolt 和 Source 的整合上，包括優化銷售團隊、成本管理和整合產品可用性。

Q3 adjusted EBITDA for the Canada Branch segment was $4 million or 10.3% of sales consisting of 14.8% from Bolt and 7.6% from Source Atlantic.

第三季加拿大分公司的調整後 EBITDA 為 400 萬美元，佔銷售額的 10.3%，其中 Bolt 佔 14.8%，Source Atlantic 佔 7.6%。

Turning to Gexpro Services on slide 9.

轉向幻燈片 9 上的 Gexpro 服務。

Total average daily organic sales for the quarter were up $12.9 million or 12.5% from the year ago quarter and up 10.1% sequentially.

該季度平均每日有機銷售額總額比去年同期增長 1,290 萬美元，即 12.5%，比上一季增長 10.1%。

As Bryan mentioned, the combination of many Gexpro Services end markets recovering along with new customer wins are driving the sales growth.

正如 Bryan 所提到的，許多 Gexpro 服務終端市場的復甦以及新客戶的贏得共同推動了銷售成長。

Gexpro Services adjusted EBITDA expanded by $4.8 million to $16.4 million or 14.1% of sales up from 11.2% of sales a year ago and 11.9% of sales in the second quarter.

Gexpro Services 調整後的 EBITDA 增加了 480 萬美元，達到 1,640 萬美元，佔銷售額的 14.1%，高於去年同期的 11.2% 和第二季銷售額的 11.9%。

Sequentially, adjusted EBITDA growth and margin expansion was due primarily to operating leverage from the sales increase on relatively flat operating costs.

因此，調整後的 EBITDA 成長和利潤率擴張主要是由於銷售成長帶來的營運槓桿作用以及相對穩定的營運成本。

Operating leverage is benefiting us and Gexpro Services is capitalizing on cross sell acquisition synergies, kitting offerings and digital revenue with a growing book to bill compared to the year ago period.

營運槓桿使我們受益，Gexpro Services 正在利用交叉銷售收購協同效應、配套產品和數位收入，與去年同期相比，訂單量不斷增長。

Lastly, I will turn to TestEquity Group on slide 0.

最後，我將轉向幻燈片 0 上的 TestEquity Group。

Third quarter sales were $195.2 million with daily sales declining by 7.4% due to headwinds in the electronics assembly market or our consumables are causing softness in the electronic production supply end market.

第三季銷售額為 1.952 億美元，每日銷售額下降 7.4%，原因是電子組裝市場的不利因素或我們的消耗品導致電子生產供應終端市場疲軟。

We are seeing good traction in our Test & Measurement and chambers business as 2024 is playing out but overall softness in electronic production continues.

隨著 2024 年的臨近，我們的測試與測量和腔室業務呈現出良好的勢頭，但電子生產的整體疲軟仍在繼續。

TestEquity's adjusted EBITDA for the quarter was $14.4 million or 7.4% of sales up from 6.9% as a percent of sales in the prior year quarter.

TestEquity 本季調整後 EBITDA 為 1,440 萬美元，佔銷售額的 7.4%，高於去年同期銷售額的 6.9%。

Sequentially net margin compression is primarily the result of sales mix shifts due to lower consumable sales this quarter as OpEx remained flat as a percent of sales.

淨利潤率依序壓縮主要是由於本季消耗品銷售額下降而銷售組合變化，營運支出佔銷售額的百分比保持不變。

Finally on Slide 11.

最後是幻燈片 11。

Our balance sheet is strong.

我們的資產負債表強勁。

We ended the quarter with approximately $498 million of net working capital and $328 million of liquidity, which includes $76 million of cash and cash equivalents and approximately $252 million under our existing credit facility.

本季結束時，我們的淨營運資本約為 4.98 億美元，流動資金為 3.28 億美元，其中包括 7,600 萬美元的現金和現金等價物以及我們現有信貸額度下的約 2.52 億美元。

During the quarter, we expanded our credit facility by $255 million with $200 million of that being a term loan and the remaining $55 million increasing our revolver from $200 million to $255 million.

本季度，我們將信貸額度擴大了 2.55 億美元，其中 2 億美元為定期貸款，其餘 5,500 萬美元將我們的循環貸款從 2 億美元增加到 2.55 億美元。

We closed on the Source Atlantic transaction in Q3 which added to our leverage profile.

我們在第三季完成了 Source Atlantic 交易，這增加了我們的槓桿狀況。

However, the credit facility expansion added significant flexibility and availability to support our growth initiatives.

然而，信貸額度的擴張增加了顯著的靈活性和可用性，以支持我們的成長計劃。

Leverage at the end of Q3 was 3.7 times, which remains inside of our goal of 3 times to 4 times.

第三季末的槓桿率為 3.7 倍，仍在我們 3 至 4 倍目標範圍內。

Net capital expenditures including rental equipment were $4.1 million for the third quarter $11 million year-to-date.

第三季的淨資本支出（包括租賃設備）為 410 萬美元，年初至今為 1,100 萬美元。

We expect full year CapEx to be in the range of $15 million to $18 million or approximately 1% of our revenues.

我們預計全年資本支出將在 1500 萬至 1800 萬美元之間，約佔我們收入的 1%。

We also realized trailing 12-month free cash flow conversion of approximately 90% resulting in ROIC inclusive of all of our acquisitions of approximately 10%.

我們也實現了過去 12 個月的自由現金流轉換率約為 90%，包括我們所有收購的投資報酬率約為 10%。

We fully understand that more mature distribution assets can generate ROICs north of 20%.

我們完全理解，更成熟的分銷資產可以產生 20% 以上的投資報酬率。

I'll now turn the call back over to Bryan.

我現在將把電話轉回給布萊恩。

Thank you, Ron.

謝謝你，羅恩。

With regard to the recent hurricanes, our employees and families impacted by the storms are safe and there were no material disruptions or significant financial impacts.

關於最近的颶風，我們受風暴影響的員工和家庭都很安全，沒有造成重大破壞或重大財務影響。

Customers in the affected areas were down between two and six days, mainly to power outages which I'm certain presented a challenge for many of our DSG families as well.

受影響地區的客戶數量減少了兩到六天，主要是因為停電，我確信這也為我們的許多 DSG 系列帶來了挑戰。

In fact too often we can get wrapped up in strategy and financial metrics as we focus on driving the outcomes we expect and miss the humanity of a business like DSG.

事實上，當我們專注於推動我們期望的結果時，我們常常會沉迷於策略和財務指標，而忽略了像 DSG 這樣的企業的人性。

Ours is a company whose successes and operational improvements like the many in this last quarter are really the reflection of a lot of dedicated good people, putting tremendous effort forth in the face of lots of marketplace uncertainty as their leadership like me continue to think through ways to evolve and improve this commercial platform to be the best it can be.

我們公司的成功和營運改善（如上個季度的許多成功和營運改善）實際上反映了許多敬業的好人，他們在市場不確定性面前付出了巨大的努力，而像我這樣的領導層繼續思考各種方法發展和改進這個商業平台，使其成為最好的。

With many of those new initiatives and timely accountability expectations requiring even more work from them in the next period.

許多新措施和及時的問責期望要求他們在下一時期開展更多工作。

All of our successes happened because of all of the committed colleagues across DSG's business unit and I want to thank them from all of us who represent the shareholders.

我們所有的成功都歸功於 DSG 業務部門所有盡職盡責的同事，我要向代表股東的所有人表示感謝。

Our businesses have lapped 2023 softness and will compare against somewhat easier sales comparisons over the next several quarters.

我們的業務已經擺脫了 2023 年的疲軟狀態，未來幾季的銷售情況將會改善。

But I'm more focused on demonstrating to my fellow shareholders about all the progress made by our employees across countless initiatives in a more benign marketplace backdrop by getting back to our 2022 growth trajectory.

但我更專注於透過回到 2022 年的成長軌跡，向我的股東們展示我們的員工在更良性的市場背景下透過無數舉措取得的所有進展。

We are not letting off the gas as we tackle more growth plans and initiatives, making strategic investments, and controlling all controllables as best we can.

當我們處理更多的成長計劃和舉措、進行策略性投資並盡最大努力控制所有可控因素時，我們不會放鬆警惕。

We are carefully controlling all cash outlays expenses and working capital management.

我們正在謹慎控制所有現金支出和營運資金管理。

The U.S. manufacturing Purchaser Managers Index or PMI numbers this fall continue to track around 47.

今年秋季美國製造業採購經理人指數或 PMI 數據持續維持在 47 左右。

A PMI, as many of you know, below 50 may signal more contraction than expansion in the intermediate term, which we don't like, but it is the environment we are managing within.

正如你們許多人所知，PMI 低於 50 可能意味著中期收縮多於擴張，這是我們不喜歡的，但這是我們正在應對的環境。

But like all shareholders in our management team, I can't wait to see this business when PMI is back in an expansionary mode.

但就像我們管理團隊中的所有股東一樣，當 PMI 重新回到擴張模式時，我迫不及待地想看到這項業務。

While we continue to prepare for choppiness in the demand environment for certain end markets, we are also starting to enjoy a resurgence in some of our key OEM end markets as well as improving demand in orders and Test & Measurement in our Chambers product categories, which we believe are all early indications of recovery for some broader key areas of our business.

在我們繼續為某些終端市場的需求環境波動做好準備的同時，我們也開始享受一些主要 OEM 終端市場的復甦，以及我們的 Chambers 產品類別的訂單和測試與測量需求的改善，這我們相信，這些都是我們業務的一些更廣泛的關鍵領域復甦的早期跡象。

We also are eager for the election to be behind us soon, eliminating one more overhang to customer behavior as we are also encouraged that the Fed's very recent monetary policy shift towards starting to loosen with rate cuts, should also restore confidence in more reticent customers and some encouragement towards growth in sluggish end markets.

我們也渴望選舉盡快結束，消除客戶行為的又一個懸而未決的問題，因為我們也感到鼓舞的是，美聯儲最近的貨幣政策轉向開始放鬆降息，這也應該會恢復對更加沉默寡言的客戶的信心，對低迷的終端市場的成長給予一定的鼓勵。

For the many markets that are already experiencing end market recovery, we are encouraged and expect that others will return as uncertainty and macroeconomic pressures ease.

對於許多已經經歷終端市場復甦的市場，我們感到鼓舞，並預期隨著不確定性和宏觀經濟壓力的緩解，其他市場也將回歸。

Our DSG model is built on a competitive approach to capital allocation.

我們的 DSG 模型建立在競爭性資本配置方法的基礎上。

And at the core, our fortified competitive mode is repeatedly being demonstrated and being affirmed in the marketplace a clear differentiated value proposition for our customers by delivering deep technical knowledge, extensive surface capabilities and reliable sourcing of products, while also sourcing complex and scarce products.

從本質上講，我們強化的競爭模式在市場上不斷得到證明和肯定，透過提供深厚的技術知識、廣泛的表面能力和可靠的產品採購，同時也採購複雜和稀缺的產品，為我們的客戶提供了明確的差異化價值主張。

We believe that DSG is presented with a large marketplace opportunity to continue consolidating some key capabilities, reducing complexity for our customers and improving our sales force's ability to communicate our unique value.

我們相信，DSG 面臨著巨大的市場機會，可以繼續鞏固一些關鍵能力，降低客戶的複雜性，並提高我們的銷售人員傳達我們獨特價值的能力。

It is driven by high level of fragmentation of niche product and service offerings that complement or expand our competitive position in the market, while beneficially enhancing our diversification strategy across customers, suppliers, end markets and geographies.

它是由利基產品和服務的高度分散所推動的，這些產品和服務補充或擴大了我們在市場中的競爭地位，同時有益於增強我們在客戶、供應商、終端市場和地區之間的多元化策略。

We see a substantial addressable market across a diverse set of end markets in the MRO OEM and industrial technologies focused specialty distribution categories that include products and services, where we have intimate experience and relationships across DSG and LKCM Headwater's resources.

我們在以 MRO OEM 和工業技術為重點的專業分銷類別（包括產品和服務）的多元化終端市場中看到了巨大的潛在市場，我們在 DSG 和 LKCM Headwater 的資源中擁有密切的經驗和關係。

Our verticals and increasingly DSG as a company, enjoy a trusted, proven track record of resiliency through business cycles that benefit from our asset-light model and tight working capital management.

我們的垂直行業和日益增長的 DSG 公司在整個商業週期中享有值得信賴、經過驗證的彈性記錄，這得益於我們的輕資產模式和嚴格的營運資本管理。

Distribution Solutions Group is built to generate significant free cash flow that offers us as aligned stewards the flexibility to reinvest in key areas, to improve our business and its return profile or to return capital to shareholders.

分銷解決方案集團旨在產生大量的自由現金流，使我們作為一致的管理者能夠靈活地在關鍵領域進行再投資，改善我們的業務及其回報狀況或將資本返還給股東。

We are consumed across our team and all the resources we can wrangle with a focus on creating an exceptional platform for vendors, customers and employees alike, with a paramount commitment towards a disciplined prescriptive approach to unlocking significant shareholder value that collectively sets up DSG to compound returns at an elevated level for many years to come.

我們的團隊和我們可以利用的所有資源都集中在為供應商、客戶和員工等創建一個卓越的平台上，並以嚴格的規範性方法為首要承諾，以釋放重要的股東價值，從而共同建立DSG來實現複合目標未來多年回報率將維持在高水準。

We remain as excited and confident about our strategy and DSG's future prospects.

我們對我們的策略和 DSG 的未來前景仍然感到興奮和充滿信心。

Lastly, from a capital allocation perspective, we will continue to run an active, but highly focused strategic M&A playbook which continues to enjoy a robust pipeline of active opportunities.

最後，從資本配置的角度來看，我們將繼續實施積極但高度集中的策略併購策略，並繼續享受大量活躍機會。

While we continue to lean into facilitating an efficient and disciplined integration process to hold all accountable to capture the full opportunity set around these investments we are making with shareholder capital.

同時，我們繼續致力於促進高效、規範的整合流程，讓所有人都有責任抓住我們利用股東資本進行的這些投資的全部機會。

We will do this while making sure that all of our leaders appreciate the metrics we expect to effectuate, encouraging them to prioritize and unlock higher return projects as timely as possible, as we all appreciate how unlocking those sustain our primary objective which is to drive elevated value creation in the near and long-term at DSG.

我們將在做到這一點的同時，確保我們所有的領導者都欣賞我們期望實現的指標，鼓勵他們盡快優先考慮和解鎖更高回報的項目，因為我們都意識到解鎖這些項目如何維持我們的主要目標，即推動更高的回報DSG 的近期和長期價值創造。

With that, operator, let's open the line for questions.

那麼，接線員，讓我們打開提問線路。

Thank you.

謝謝。

At this time, we will now be conducting a question-and-answer session.

現在，我們將進行問答環節。

[Operator Instructions] Our first question is coming from Tommy Moll with Stephens.

[操作員說明] 我們的第一個問題來自湯米·莫爾和史蒂芬斯。

Your line is live.

您的線路已上線。

Good morning and thank you for taking my questions.

早上好，感謝您回答我的問題。

Bryan I wanted to start on Gexpro.

Bryan 我想從 Gexpro 開始。

It's now three quarters in a row where there's been a sequential step up in revenue there, although the rate of that increase improved.

目前，該地區的收入已連續三個季度連續成長，儘管成長速度有所改善。

I think you were up double digits third quarter versus second quarter.

我認為第三季與第二季相比成長了兩位數。

So, what can you do to unpack the shape of that recovery for us?

那麼，您可以做些什麼來為我們揭示復甦的形態呢？

And what if any visibility do you have going forward there?

如果您在那裡有任何知名度怎麼辦？

Thank you.

謝謝。

Yes.

是的。

Ron, you may want to help me on this, but Tommy the end markets that we've highlighted, the renewables and the semiconductor markets that had been real laggards last year, were an important part of -- we'd indicated that we thought we would see improvement in those end markets as we got in the back half of the year and we have been seeing that.

羅恩，你可能想在這方面幫助我，但湯米，我們強調的終端市場，去年真正落後的可再生能源和半導體市場，是其中的重要組成部分——我們表示我們認為今年下半年我們會看到這些終端市場的改善，而且我們已經看到了這一點。

It's not yet to the level that we've enjoyed in the past, but it is significantly better than it was as we were exiting last year.

雖然還沒有達到我們過去享受的水平，但比我們去年退出時要好得多。

And last year was a particularly tough year for renewables as well as semiconductors.

去年對於再生能源和半導體來說是特別艱難的一年。

We talked about those consistently in our quarterly calls last year.

我們在去年的季度電話會議中持續討論了這些問題。

And that impacted some of those end markets that were soft last year really did impact as we were investing in some of the acquisitions that we bought to fold into Gexpro.

這對去年疲軟的一些終端市場產生了影響，因為我們正在投資一些收購來併入 Gexpro。

And we were really leaning into investments in those acquisitions versus leaning them out last year.

去年我們確實傾向於對這些收購進行投資，而不是放棄它們。

A lot of times when you buy things, you try and pick up synergies.

很多時候，當你購買東西時，你會嘗試獲得協同效應。

In our case, the synergies that we saw were on the top-line and really were not in the cost structure of those companies like Frontier and Resolux that I alluded to on the call.

就我們而言，我們看到的協同效應是最重要的，實際上並不在我在電話會議中提到的 Frontier 和 Resolux 等公司的成本結構中。

And so we leaned into the costs or into investments in those businesses, took the cost structure up at the same time as the end market softened.

因此，我們傾向於降低成本或對這些業務進行投資，在終端市場疲軟的同時提高成本結構。

So that had a kind of a double whammy last year on profitability.

因此，去年這對獲利能力造成了雙重打擊。

And now those end markets are starting to spool back up and we're getting more performance out of those acquisitions, and we're getting the earnings leverage coming back our favor.

現在，這些終端市場開始復甦，我們從這些收購中獲得了更多的業績，我們的獲利槓桿也重新回到了我們的有利位置。

So I don't know if that's helpful.

所以我不知道這是否有幫助。

Last year, Gexpro Services core carried the profitability and made up for some deterioration in acquisitions profitability where we made investments in their operating expenses and their markets had softened.

去年，Gexpro Services 核心保持了盈利能力，並彌補了收購盈利能力的一些惡化，因為我們對其營運費用進行了投資，而且他們的市場已經疲軟。

And this year, we're getting some benefit on both sides both at Gexpro Services core and then also the benefit to cross sell or to expand our engagements with some of the customers in the marketplaces that are recovering from the help of those acquisitions.

今年，我們在 Gexpro Services 核心方面雙方都獲得了一些好處，然後還有交叉銷售或擴大我們與市場上一些客戶的合作的好處，這些客戶正在從這些收購的幫助中恢復過來。

Ron, anything you can help me on there?

羅恩，你有什麼可以幫我的嗎？

No, I think you hit it, Bryan.

不，我認為你成功了，布萊恩。

I mean as we look at aerospace and defense has been strong over quite a few of the past quarters.

我的意思是，從我們的角度來看，航空航天和國防在過去的幾個季度中一直表現強勁。

The technology side, which for Q3, our low point there was really Q3 a year ago and that technology end market for us not quite double sales from where we were a year ago quarter, but pretty close.

技術方面，對於第三季度來說，我們的低點實際上是一年前的第三季度，我們的技術終端市場的銷售額與去年同期相比並沒有翻一番，但也相當接近。

So that is a really nice recovery for us.

所以這對我們來說是一次非常好的恢復。

And then certainly on the renewable side, primarily wind, that segment, that end market continues to march up sequentially for the first three quarters of this year as well.

當然，在再生能源方面，主要是風能，該領域的終端市場在今年前三個季度也持續持續成長。

So, yes, I think those are really the, I would say, the three main end markets that are driving the majority of the growth.

所以，是的，我認為這些確實是推動大部分成長的三個主要終端市場。

And as a follow-up, I wanted to ask this one may go to Ron just on the fourth quarter or the pacing in October, Ron.

作為後續行動，我想問這個可能會在第四季或十月的節奏中交給羅恩，羅恩。

You've been active on the M&A front and so I just -- I want to get any kind of insight you can share on organic trends versus whatever acquired revenue you would expect to book in the fourth quarter.

您在併購方面一直很活躍，所以我想獲得您可以分享的任何關於有機趨勢與您期望在第四季度獲得的收入的見解。

And then similar question just on the margin side, Ron, you were in the double digit range from a consolidated EBITDA margin standpoint for the second consecutive quarter.

然後是關於利潤率方面的類似問題，羅恩，從合併 EBITDA 利潤率的角度來看，您連續第二個季度處於兩位數範圍內。

Any reason that that should not again be the case as you go into Q4?

當你進入第四季時，有什麼理由不應該再次出現這種情況嗎？

Thank you.

謝謝。

Yeah, Tommy.

是的，湯米。

So just relative to sitting here one month into the fourth quarter, I would say that, our sales levels are -- across DSG, this is just in the aggregate relatively consistent in terms of what we saw in the third quarter.

因此，相對於第四季度一個月的情況，我想說的是，我們的銷售水平在整個 DSG 中，總體上與我們在第三季度看到的情況相對一致。

So I would say no major movements from where we left off at the end of Q3 to where we are today.

因此，我想說，從第三季末的情況到今天的情況，沒有發生重大變化。

Relative to Q4 from a margin perspective, yes, fewer selling days, but we would expect that we'd still be able to perform in a double-digit margin range, even with a couple less selling days in the quarter.

從利潤率的角度來看，相對於第四季度，是的，銷售天數減少了，但我們預計，即使本季度銷售天數減少了幾個，我們仍然能夠在兩位數的利潤範圍內表現。

And that's significant for us.

這對我們來說意義重大。

Every day for us is even on the organic side is about $6.5 million or $7 million in sales.

即使在有機方面，我們每天的銷售額也約為 650 萬美元或 700 萬美元。

So two days takes $14 million or actually I think it's three days, I think it's 61 days versus 64.

所以兩天需要 1400 萬美元，或者實際上我認為是三天，我認為是 61 天與 64 天。

So But we still feel like we're going to be able to get ourselves in the double digit EBITDA range.

所以，但我們仍然認為我們將能夠使自己的 EBITDA 達到兩位數。

Thank you, both.

謝謝你們，兩位。

I'll turn it back.

我會把它轉回來。

Thanks, Tommy.

謝謝，湯米。

Thank you.

謝謝。

Our next question is coming from Kevin Steinke with Barrington Research.

我們的下一個問題來自 Barrington Research 的 Kevin Steinke。

Your line is open.

您的線路已開通。

Thanks.

謝謝。

Good morning.

早安.

Hey, Kevin, good morning.

嘿，凱文，早安。

Good morning.

早安.

Wanted to just start off by asking about Lawson and you talked about roughly 130 new sales territories there I believe.

我想先詢問 Lawson，您談到了大約 130 個新的銷售地區，我相信。

I think you mentioned greenfield.

我想你提到了綠地。

Are those all greenfield?

這些都是綠地嗎？

Or are there some kind of dividing up all the territories to make them more efficient from just a routing perspective?

或者是否有某種方式劃分所有區域，以便僅從路由的角度來看它們更有效率？

I'm just trying to get a sense as to how much more kind of revenue opportunity you're creating with those new sales territories?

我只是想了解您透過這些新的銷售區域創造了多少收入機會？

Ron, I'll let you tackle it even though I'm the enthusiastic voice here.

羅恩，我會讓你解決這個問題，儘管我是這裡熱情的聲音。

Yeah sure.

是的，當然。

No -- yes no problem so...

不——是的，沒問題，所以…

You've been working on this for 10 or 20 years but...

你已經為此工作了 10 或 20 年，但...

Yes, I know.

是的，我知道。

Yes so...

是的所以...

I've been on Ron on this one for a decade.

十年來我一直關注羅恩的這個問題。

So Kevin, I would really -- the majority of those are new territories that we feel as though we can put sales reps in and be more successful than in the past.

所以凱文，我真的會——其中大部分都是新領域，我們覺得我們可以把銷售代表放進去，並且比過去更成功。

As you're aware we have and we continue to work on optimizing our current sales territories within our existing sales reps.

如您所知，我們已經並將繼續致力於優化現有銷售代表的當前銷售區域。

And as Bryan mentioned and I mentioned as well, we're down from a rep count perspective versus where we were a year ago, up sequentially here in the third quarter.

正如布萊恩所提到的，我也提到過，從代表數量的角度來看，我們與一年前相比有所下降，但在第三季度連續上升。

But we are also identifying and are much more data driven today than where we were historically around, where we feel that there's opportunities that we can put a sales rep into and be much more successful right out of the gate.

但我們也正在識別，並且與歷史上相比，今天更加受數據驅動，我們認為我們可以將銷售代表投入其中，並立即取得更大的成功。

So even though we continue to kind of refine the territories that we have today, these are what I would really classify as more kind of new markets where we feel like we can put a rep in and get them successful right out of the gate.

因此，即使我們繼續完善我們今天所擁有的領域，這些都是我真正將其歸類為更多類型的新市場，我們覺得我們可以在這些市場中派出代表並讓他們一開始就取得成功。

And to Bryan's point and Bryan had this in his prepared remarks.

對於布萊恩的觀點，布萊恩在他準備好的演講中也提到了這一點。

I mean it's -- we are targeting 900 reps by the end of this year, so that's still a net increase of 40 versus where we ended the quarter, and then we'll have a pretty heavy push on this for the first half of next year as well with our goal being 1000.

我的意思是，我們的目標是到今年年底實現 900 名代表，因此與本季度結束時相比仍淨增加 40 名，然後我們將在下個上半年大力推動這一目標今年我們的目標是 1000。

And I would -- the only thing I'd add to that is that part of the scoping these are -- the way they've been characterized to me is that they're net new from where we were more towards our peak of reps.

我想——我唯一要補充的是，這些範圍的一部分——對我來說，它們的特徵是，它們是全新的，我們更接近我們的代表峰值。

There has been some reorganizing and some kind of trying to make the routes and the territories more efficient, as well as trying to make sure that the territories that we have available to new hires are significantly larger in terms of scoped revenue than what we might have been hiring somebody into in years past.

我們進行了一些重組和某種嘗試，以提高航線和區域的效率，並努力確保我們為新員工提供的區域在範圍收入方面明顯大於我們可能擁有的區域過去幾年一直在僱用某人。

So it's important to us to see that the reps that we're hiring are more productive out of the gate with the tools that we've offered them with the scoping of larger available revenue that is there for new reps.

因此，對我們來說，重要的是要看到我們正在招募的銷售代表利用我們為他們提供的工具，在為新銷售代表提供更大的可用收入的範圍內提高工作效率。

And then we've got an insider kind of an internal team that we developed.

然後我們建立了一個內部團隊。

It worked well for us on the strategic account side.

它在戰略客戶方面對我們來說效果很好。

It's worked well for us on the military side, although military is a challenge right now with the order entry shift that the government is going through.

它在軍事方面對我們來說效果很好，儘管由於政府正在經歷訂單輸入轉變，軍事現在是一個挑戰。

It's impacted I think a lot of distributors and really is causing a mess at the military bases, where they're not able to get the kits and the product in timely.

我想很多經銷商都受到了影響，而且確實在軍事基地造成了混亂，他們無法及時獲得套件和產品。

But that aside, we've got a sourcing of -- and a new business development team that will help those reps grow their street business.

但除此之外，我們已經找到了一個新的業務開發團隊，將幫助這些代表發展他們的街頭業務。

And so there's a lot of initiatives that we put in place to try and be much more successful with the growth plans going forward with our sellers.

因此，我們採取了許多措施來嘗試並在與我們的賣家一起實施的成長計劃中取得更大的成功。

We rode the brake too long in my opinion about hiring reps and backfilling.

在我看來，我們在招募代表和回填方面踩煞車的時間太長了。

We were trying to get our technology and our tools in place so that we could have the right offering when we recruited.

我們正在努力讓我們的技術和工具到位，以便我們在招募時能夠提供合適的產品。

But that caused our J curve of our sales rep count to drop further than it should have and we're all cognizant of that.

但這導致我們的銷售代表數量的 J 曲線下降得比應有的還要多，我們都認識到這一點。

And if we were going to look back over the last 1.5 years, and look at all the progress we've made on the sales front and what we think we're going to be able to do restoring a very much more effective and efficient opportunity for sellers and growing revenues going forward on Lawson, that would be our kind of our Monday morning quarterbacking of what we wish we had done differently, which was in the face of slowness out of our tech team, and getting data and tools in place and reorganizing territories, all of which take a lot of time.

如果我們回顧過去 1.5 年，看看我們在銷售方面取得的所有進展，以及我們認為我們將能夠做些什麼來恢復一個更加有效和高效的機會對於賣家和勞森未來不斷增長的收入，這將是我們週一早上對我們希望採取不同做法的四分衛，面對我們技術團隊的緩慢，以及獲取數據和工具和重組領土，所有這些都需要很多時間。

I think we should have been hiring more aggressively even before we had all the tools that we now have in place.

我認為，即使在我們擁有現在擁有的所有工具之前，我們就應該更積極地招募。

Okay.

好的。

Fair enough.

很公平。

That's helpful commentary there.

這是很有幫助的評論。

But you mentioned there the wanting to hire more aggressively obviously.

但你在那裡提到顯然想要更積極地招募。

Just what is the pipeline look there in terms of your ability to find reps?

就您尋找代表的能力而言，那裡的管道是什麼樣的？

And I know it's very early days, but any initial indication of your ability to…

我知道現在還為時過早，但是任何初步跡象表明您有能力…

We're onboarding -- I think that we've got more tools to offer.

我們正在加入——我認為我們可以提供更多工具。

We've got larger initial territories and we're recruiting more deliberately in the type of reps that we're recruiting.

我們擁有更大的初始區域，並且我們正在更加謹慎地招募我們正在招募的代表類型。

We've got a lot of years of knowledge in about trying to grow rep count and watching it be very challenging in terms of attrition.

我們在嘗試增加代表數量方面擁有多年的經驗，並且觀察到這在人員流失方面非常具有挑戰性。

And so one of the concerns was not having the tools in place, not having the data in place, not having rescoped the open territories or the new territories that we are greenfield was to be out recruiting until we had the ability to recruit the very best candidates we could.

因此，我們擔心的問題之一是沒有適當的工具，沒有適當的數據，沒有重新確定我們正在開發的開放區域或新區域的範圍，否則我們將無法招募人才，直到我們有能力招募到最優秀的人才。

But we have a robust effort going right now and we're confident that we will be able to add get to a 1,000 rep count number sometime mid-year next year.

但我們現在正在大力努力，我們有信心在明年年中的某個時候將代表數量增加到 1,000 人。

So that's our objective and that's what we'll be pushing to do.

這就是我們的目標，也是我們將努力實現的目標。

So that'd be 135 net new reps between now and middle of next year.

因此，從現在到明年年中，淨新增銷售代表將達到 135 名。

And Kevin just to maybe put emphasis on Bryan's point, if we look back historically we would be hiring anywhere from the high teens maybe 20 sales reps in a month.

Kevin 只是想強調 Bryan 的觀點，如果我們回顧歷史，我們可能會在一個月內僱用 20 名十幾歲的銷售代表。

And if you look at the average monthly hires during the third quarter, it's closer to 30 on a monthly basis.

如果你看看第三季的平均每月招募人數，你會發現每個月的招募人數接近 30 人。

So we're up effectively 50% versus what historically we've hired at.

因此，與我們以往的招募水準相比，我們實際上增加了 50%。

So we have the ability and certainly it's always a little challenging to find really good talent and we're -- we continue to push on that but we've seen a nice upward tick here in the third quarter in terms of hiring rates.

因此，我們有能力，當然，找到真正優秀的人才總是有點挑戰性，我們將繼續推動這一點，但我們在第三季度看到招聘率出現了良好的上升。

Okay.

好的。

That sounds good.

聽起來很好。

I appreciate all the comments.

我感謝所有的評論。

I got to jump to another call here, but thanks again.

我必須在這裡跳到另一個電話，但再次感謝。

I’ll turn it back over.

我會把它翻過來。

Thanks, Kevin.

謝謝，凱文。

Thanks, Kevin.

謝謝，凱文。

Thank you.

謝謝。

[Operator Instructions] Our next question is coming from Brad Hathaway with Far View.

[操作員說明] 我們的下一個問題來自 Far View 的 Brad Hathaway。

Your line is live.

您的線路已上線。

Hi, guys.

嗨，大家好。

How are you doing?

你好嗎？

Good morning, Brad.

早安，布拉德。

Good morning.

早安.

Thanks.

謝謝。

I appreciate the commentary on what return on invested capital looks like for a mature distribution business.

我很欣賞關於成熟分銷業務的投資資本回報率的評論。

And I was just wondering if kind of qualitatively if you could talk a little bit about I guess the path from where return on invested capital is today to that 20% level and how you kind of think about bringing DSGR in that direction?

我只是想知道您能否從定性角度談談我猜想從今天的投資資本回報率到 20% 水平的路徑，以及您如何考慮將 DSGR 引向這個方向？

Yeah.

是的。

Look Brad the biggest challenge on returns on invested capital, obviously, are initially when you make an acquisition and you're laying out capital and you haven't yet folded in the earnings or the earnings accretion.

布拉德，投資資本報酬率面臨的最大挑戰顯然是在最初進行收購併投入資本而尚未計入收益或收益增值時。

The synergies that you expect to get out of taking out costs or driving accelerated top-line growth as you're folding it in.

您期望在削減成本或推動收入加速成長時所獲得的綜效。

So there's no doubt that our M&A activity has been absolutely weighing on our returns on invested capital the way that -- if you look at it you're going to come down some as you're building your base out.

因此，毫無疑問，我們的併購活動絕對會影響我們的投資資本回報率，如果你仔細觀察的話，你會發現，在你建立基地的過程中，我們的投資回報率會下降一些。

And then as you build your base out, you should start seeing it improve.

然後當你建立你的基地時，你應該開始看到它的改善。

When you look at -- for -- this is an example the acquisitions that we've closed this year through the ConRes close yesterday, we've spent about -- we paid about eight times EBITDA for those acquisitions collectively.

當你看一下——因為——這是我們今年透過ConRes昨天關閉而完成的收購的一個例子時，我們花了大約——我們為這些收購總共支付了大約八倍的EBITDA。

And integrate -- like we would estimate that integrated over the next year or so they'll -- we'll own them at six times.

並整合——就像我們估計的那樣，他們將在未來一年左右整合——我們將擁有它們六次。

And so that's kind of the first leg of trying to then drive your -- for that class that 2024 class of acquisitions driving your ROIC backup, after absorbing the capital outlay and not having the benefits of the earnings where you want them to be.

因此，在吸收資本支出並且沒有獲得您想要的收益收益之後，這是嘗試推動您的 2024 年類別收購推動您的 ROIC 備份的第一步。

Last year we had acquisitions that we made in 2022 and 2021, that had more challenging or headwinds in their end markets, as we were thinning out some of or kind of integrating shared costs or duplicative costs on Hisco with TestEquity.

去年，我們在 2022 年和 2021 年進行了收購，這些收購在其終端市場面臨更大的挑戰或阻力，因為我們正在減少 Hisco 與 TestEquity 的部分或某種整合共享成本或重複成本。

Now we've got those costs out.

現在我們已經消除了這些成本。

And as we look to the earnings leverage that we built into the model, we'll get a lot of up draft on the ROIC there.

當我們研究模型中建構的收益槓桿時，我們會發現投資報酬率有許多上升趨勢。

We've done a good job managing working capital.

我們在營運資金管理方面做得很好。

We had -- it's been a little bit tougher the last three months, six, five months.

我們——過去三個月、六個月、五個月有點艱難。

As we've seen a little bit of choppiness in some of our end markets, you don't have your inventories reset and you haven't gotten your payables -- or I'm sorry, receivables, pulled back down.

正如我們在一些終端市場看到的一些波動，你沒有重置庫存，也沒有收到應付帳款——或者對不起，應收帳款又被拉低了。

So we expect that last year we ran it over 100% conversion.

所以我們預計去年我們的轉換率會超過 100%。

We're at 90% over the trailing 12-month right now.

目前過去 12 個月的進度為 90%。

We should get some benefits back into that, because we've been running it about 80% the last two quarters.

我們應該從中獲得一些好處，因為過去兩個季度我們的運行率約為 80%。

And so that's another way that you get a little bit of it.

這是你了解一點的另一種方式。

And then the number one thing that you get is when you start getting the top-line.

然後你得到的第一件事就是當你開始獲得營收時。

And when we look at the cross selling, we look at the revenue synergies of bringing some of these capabilities into our fold.

當我們考慮交叉銷售時，我們會考慮將其中一些功能納入我們的業務所帶來的收入綜效。

We expect that we're going to get improved profitability per dollar of revenue as well as kind of as we fold them in and we also expect to get more benefit of being able to do a better job across our customer base to grow organically.

我們預計，每美元收入的獲利能力將會提高，而且我們還期望能夠在整個客戶群中做得更好，實現有機成長，從而獲得更多好處。

And so we wouldn't be making acquisitions if we didn't think that they were going to drive organic revenue growth and a better value proposition for the customers.

因此，如果我們認為收購不能推動有機收入成長並為客戶提供更好的價值主張，我們就不會進行收購。

And that's what you really have to have to get to that -- for us to get over the 20% threshold that we expect we'll get to as we our pacing of acquisitions relative to the size of our core base is not as significant, as it has been the last couple of years.

這就是你真正必須要達到的目標——對我們來說，要超過我們預期會達到的 20% 的門檻，因為我們的收購節奏相對於我們的核心基礎規模並不那麼重要，就像過去幾年一樣。

I don't know if that's...

我不知道那是不是...

Got it.

知道了。

That's very...

那是非常...

You can tell me there's -- is that helpful?

你可以告訴我──這有幫助嗎？

Yeah.

是的。

Good.

好的。

That is helpful.

這很有幫助。

So I mean, I guess it sounds like A, it's the maturation of the acquisitions you make obviously you lay out the capital ahead of time and then the earnings and whatnot improve.

所以我的意思是，我想這聽起來像是 A，這是你所做的收購的成熟，顯然你提前佈局了資本，然後收益等等都得到了改善。

I mean is there also an opportunity on the working capital side as well to kind of increase the efficiency of the balance sheet?

我的意思是，營運資金方面是否也有機會提高資產負債表的效率？

So Brad, we've worked hard on that efficiency.

布拉德，我們在提高效率方面付出了很大的努力。

We've brought in external resources and we have made quite a bit of progress.

我們引進了外部資源，並且取得了巨大的進展。

We've got some progress left in front of us, that on the margin that's tens of millions of dollars on your invested capital base.

我們已經取得了一些進展，在您的投資資本基礎上還有數千萬美元的利潤。

It's not hundreds of millions of dollars.

這不是數億美元。

And when you're laying out $240 million or $260 million of acquisitions in a year then your biggest driver is going to be trying to double the EBITDA on those acquisitions.

當您一年內斥資 2.4 億或 2.6 億美元進行收購時，您最大的推動力將是嘗試將這些收購的 EBITDA 翻倍。

And that's where

這就是地方

…

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Got it.

知道了。

…that's what we're focused on is taking -- buying -- going and buying $30 million EBITDA and turning it into $60 million.

……這就是我們關注的重點，就是購買——購買——購買 3000 萬美元的 EBITDA，並將其變成 6000 萬美元。

Got it.

知道了。

And that's where -- that's what we've got to do.

這就是我們必須要做的。

Some of that comes from integration.

其中一些來自整合。

Most of -- some of that comes from purchasing better, the longer tail and benefit of driving ROI -- I mean, if we go back in time into the '90s and I was covering this sector back then the Fastenal and the Grainger were more acquisitive relative to the size of their base.

其中大部分——其中一些來自於更好的採購、更長的尾部和提高投資回報率的好處——我的意思是，如果我們回到90 年代，我當時正在報導這個領域，那麼Fastenal 和Grainger的表現就更好了。

And then once you got to a spot where your base was pretty well set and your offering was pretty well set then you started getting a lon- tail benefit of assembling all the right capabilities and getting organic growth out of them and you've got started working your way away from the original purchase price.

然後，一旦你的基礎已經相當完善，你的產品也已經相當完善，那麼你就開始獲得整合所有正確能力並從中獲得有機增長的長尾效益，然後你就開始了努力遠離原始購買價格。

And we've seen that model work well for us over the last two decades, as we bought distributors and we would expect that that is exactly where we sit with DSG, as we look towards the tail of continuing to compound the earnings stream out of the acquisitions that we're making.

在過去的二十年裡，我們已經看到這種模式對我們來說效果很好，因為我們收購了分銷商，我們預計這正是我們對DSG 的看法，因為我們期待著繼續複合收益流的尾部。

And when we compound it and we grow those earnings streams the incremental returns on invested capital are very, very high on these accretive acquisitions that we're making.

當我們將其複合並增加這些收入流時，我們正在進行的這些增值收購的投資資本增量回報率非常非常高。

The initial capital outlay is a burden, but as long as they're strategic and as long as they fit into the model right then it drives incremental returns on invested capital across the whole platform as well as the maturing and higher returns on invested capital that you'll get out of the acquisition itself.

初始資本支出是一種負擔，但只要它們具有策略性，並且只要它們適合模型，那麼它就會推動整個平台的投資資本回報增量，以及投資資本的成熟和更高回報。 。

And so that should drive us, long-term to very much structurally higher returns on invested capital.

因此，從長遠來看，這應該會推動我們的投資資本獲得結構性更高的回報。

Got it.

知道了。

That makes sense.

這是有道理的。

So just mathematically, obviously, the denominator doesn't change much, because you lay out the capital upfront and then current EBITDA is well below what you kind of believe fully synergized, fully operational, future EBITDA will be.

因此，從數學角度來看，顯然分母不會發生太大變化，因為您預先投入了資本，然後當前的 EBITDA 遠低於您認為完全協同、全面運營的未來 EBITDA。

So the numerator increased a lot with the denominator.

所以分子隨著分母增加了許多。

Awesome.

驚人的。

I appreciate the color on that.

我很欣賞它的顏色。

Brad, I took -- I resensitized and just looked at 2022s revenue levels, and tried to take a more stable revenue environment for all of us and took that 2022 model and ran it back through our new cost structure, and kind of our new incremental margins and where we are.

布拉德，我重新敏感了，只關注了2022 年的收入水平，並試圖為我們所有人創造一個更穩定的收入環境，並採用2022 年模型，並透過我們新的成本結構和新的增量來運行它利潤率以及我們所處的位置。

And that in and of itself has a really big lift in ROIC, assuming we aren't making the next wave of acquisitions which we will be.

假設我們沒有進行下一波收購，那麼這本身就對投資報酬率有很大的提升。

But that's the sort of -- and then from there, we -- when we -- in 2022, we expected that the acquisitions we were making, were going to take the slope of organic revenue growth up.

但這就是——然後從那時起，我們——當我們——在 2022 年時，我們預計我們正在進行的收購將提高有機收入成長的斜率。

We've been in a more choppy end -- set of end market.

我們正處於一個更動盪的終端市場。

We've been doing some tuning that's been disruptive like on the Lawson sales force, but it's critical for unlocking a lot of growth in the future.

我們一直在進行一些像勞森銷售團隊那樣具有破壞性的調整，但這對於未來釋放大量成長至關重要。

And so, as we're doing all that tuning there's challenges and disruptions to it.

因此，當我們進行所有這些調整時，就會遇到挑戰和乾擾。

But if you take that 2022 static revenue base to build off of the earnings leverage and how that then drives the ROIC, is very impactful.

但如果你以 2022 年的靜態收入為基礎來建立獲利槓桿，那麼這將如何推動投資回報率，這是非常有影響力的。

Got it.

知道了。

That’s very helpful.

這非常有幫助。

Excellent.

出色的。

Thank you for the explanation.

謝謝你的解釋。

Appreciate it.

欣賞它。

Yes.

是的。

Thanks.

謝謝。

Appreciate it Brad.

欣賞布拉德.

Always lots of questions.

總是有很多問題。

Thank you.

謝謝。

As we have no further questions in queue at this time, I would like to hand it back to Mr. King for any closing remarks.

由於目前我們沒有其他問題，我想將其交還給金先生以供結束發言。

Thank you, operator.

謝謝你，接線生。

I appreciate everybody's interest in DSG.

我感謝大家對 DSG 的興趣。

We continue to have a lot of confidence in what we're building here for the long-term, as well as in intermediate and short.

我們對我們在這裡建立的長期、中期和短期目標仍然充滿信心。

We're excited about the team we've got, the assets that we've assembled, the colleagues that we have working with us and we appreciate your interest.

我們對我們擁有的團隊、我們組建的資產、與我們一起工作的同事感到興奮，我們感謝您的關注。

On Halloween Day today, everyone stay safe and enjoy family time, if you can get it.

今天的萬聖節，如果可以的話，每個人都保持安全並享受家庭時光。

And we look forward to visiting with you in follow-up conversations for the next quarter.

我們期待在下個季度的後續對話中與您進行拜訪。

Thank you all so much, for your time.

非常感謝大家抽空。

Bye.

再見。

Thank you.

謝謝。

Ladies and gentlemen, this concludes today's conference and you may disconnect your lines at this time.

女士們、先生們，今天的會議到此結束，此時您可以掛斷電話了。

And we thank you for your participation.

我們感謝您的參與。