Segment Information

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Information

Segment Information

Since all of our sales centers have similar operations and share similar economic characteristics, we aggregate our sales centers into a single reportable segment and one reportable revenue stream. These similarities include (i) the nature of our products and services, (ii) the types of customers served and (iii) the distribution methods we use. Our chief operating decision maker (CODM) is our president and chief executive officer. Our CODM evaluates each sales center based on individual performance that includes both financial and operational measures. These measures include operating income, accounts receivable and inventory management criteria. The accounting policies for our segment are the same as those described in “Note 1 - Significant Accounting Policies” in our Annual Report on Form 10-K for the year ended December 31, 2024, and in Note 1 above.

The table below presents segment revenue, operating expenses and operating income and reconciles segment operating income to consolidated income before taxes and equity in earnings (in thousands):

	Three Months Ended
	March 31,
	2025		2024
Net sales	$	1,071,526	$	1,120,810
Cost of sales	759,157		782,250
Gross profit	312,369		338,560
Compensation expenses	120,369		119,209
Freight out expenses	17,122		17,896
Other selling and administrative expenses	97,340		92,735
Operating income	77,538		108,720
Reconciliation:
Interest and other non-operating expenses, net	11,164		13,419
Income before income taxes and equity in earnings	$	66,374	$	95,301

The tables below present supplemental information for our segment (in thousands):

	Three Months Ended
	March 31,
	2025		2024
Depreciation	$	9,840	$	8,661
Amortization	2,147		2,088

	March 31,
	2025		2024
Receivables, net	$	146,209	$	150,240
Receivables pledged under receivables facility	350,867		376,935
Product inventories, net	1,460,680		1,496,947