Lawson Products Reports Fourth Quarter and Full Year 2020 Results

Improved Performance Continues

CHICAGO--()--Lawson Products, Inc. (NASDAQ:LAWS) (“Lawson” or the "Company"), a distributor of products and services to the MRO marketplace, today announced results for the fourth quarter and the full year ended December 31, 2020.

Summary Financial Highlights

 

Three Months Ended
December 31,

 

Year Ended
December 31,

($ in millions, except earnings per share data)

 

2020

 

2019

 

Change

 

2020

 

2019

 

Change

Net Sales

 

$98.1

 

$88.6

 

10.8%

 

$351.6

 

$370.8

 

(5.2)%

Average Daily Net Sales

 

$1.609

 

$1.452

 

10.8%

 

$1.390

 

$1.471

 

(5.5)%

Number of Business Days

 

61

 

61

 

 

 

253

 

252

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Operating (Loss) Income

 

$(0.7)

 

$(4.5)

 

NA

 

$20.6

 

$9.1

 

126.7%

Adjusted Operating Income (1)

 

$6.9

 

$5.8

 

18.6%

 

$27.4

 

$28.6

 

(4.1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (1)

 

$9.0

 

$7.3

 

22.3%

 

$34.1

 

$34.5

 

(1.1)%

Adjusted EBITDA Margin (1)

 

9.1%

 

8.3%

 

+80 bps

 

9.7%

 

9.3%

 

+40 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Diluted (Loss) Earnings Per Share

 

$0.02

 

$(0.34)

 

$0.36

 

$1.62

 

$0.77

 

$0.85

Adjusted Diluted Earnings Per Share (2)

 

$0.60

 

$0.48

 

$0.12

 

$2.16

 

$2.33

 

$(0.17)

 

(1) Excludes the impact of stock-based compensation, severance and non-recurring items. (See reconciliation in Table 1)

(2) Excludes the impact of stock-based compensation, severance and non-recurring items. (See reconciliation in Table 2)

Our fourth quarter results demonstrate the progress we are making with the ongoing recovery from the 2020 pandemic-driven economic downturn. Net sales for the quarter grew 11% to $98.1 million including a full quarter's contribution from the Partsmaster acquisition completed in the third quarter. Profitability improved as we continued to leverage our cost structure and realize the benefit from our recent acquisition. Our organic adjusted EBITDA performance has returned to pre-pandemic levels. Cash flow generated during the quarter was $12.5 million and we finished 2020 in a strong financial position," said Michael DeCata, president and chief executive officer.

We are pleased with the Partsmaster performance and it has proven to be an excellent strategic fit. During the fourth quarter, Partsmaster contributed sales of $17.2 million to the organization and was accretive to our full-year consolidated 9.7% operating margin.

Reflecting on last year’s results, I am encouraged by our performance during the most difficult business environment we have ever encountered. We were able to ensure the safety of our team while providing outstanding service to our customers at the standards they have come to expect. By adjusting our cost structure for the effect of the pandemic to protect our profitability and cash flows, we are well positioned entering 2021. We have been able to recover organic daily sales by 38% over April’s levels, improve operating margins, and integrate a significant acquisition in an uncertain business environment. With continued focus on our cost structure and almost 100 more sales reps than in 2019, we expect to continue to deliver improving results and execute on our ongoing growth strategy,” concluded DeCata.

Fourth Quarter Highlights

  • Sales increased to $98.1 million compared to $88.6 million for the fourth quarter 2019 and $90.3 million in the third quarter of 2020. Partsmaster contributed $17.2 million in sales in the quarter and $5.4 million in sales in the third quarter 2020.
  • Average daily net sales (ADS) reached $1.609 million in the quarter, up nearly 43% from the low of $1.127 million recorded in the second quarter due to the Partsmaster acquisition and a rebound in organic sales.
  • For the quarter, results improved with Lawson reporting an operating loss of $0.7 million compared to an operating loss of $4.5 million in the prior year quarter. Non-GAAP adjusted operating income was $6.9 million for the quarter compared to $5.8 million in the prior year quarter. (See table above and reconciliation in Table 1). Non-GAAP adjustments consist of stock-based compensation, severance expense, goodwill impairment and acquisition related costs.
  • Reported net income for the quarter improved to $0.2 million compared to a net loss of $3.0 million in the year ago period. Adjusted net income for the quarter also improved to $5.6 million or $0.60 adjusted earnings per diluted share compared to $0.48 adjusted earnings per diluted share in the fourth quarter of 2019. (See table above and reconciliation in Table 2).
  • We generated $12.5 million of operating cash flows in the quarter and $32.5 million for the full year 2020, ending the year with $28.4 million of cash-on-hand and $66.0 million of availability under our $100.0 million committed credit facility.

Fourth Quarter Results

Net sales increased 10.8% to $98.1 million in the fourth quarter of 2020 compared to $88.6 million in the fourth quarter of 2019 primarily due to the acquisition of Partsmaster in the third quarter of 2020. Partsmaster contributed $17.2 million of sales in the fourth quarter 2020. Average daily sales grew to $1.609 million compared to $1.452 million in the prior year quarter. Excluding Partsmaster, sales declined 8.6% compared to the year ago quarter reflecting the economic effects of COVID-19. On a sequential basis, average daily sales increased 14.0% over the third quarter driven by the inclusion of Partsmaster for the full quarter. Excluding Partsmaster, Lawson average daily sales improved slightly from the third to the fourth quarter reflecting increases in most product categories offset by less sales of lower margin PPE (Personal Protective Equipment) products.

Gross profit increased $5.3 million to $52.1 million from $46.8 million in the fourth quarter of 2019 and improved as a percent of sales to 53.1% compared to 52.9% in the year ago quarter. Excluding the impact of Partsmaster, gross profit decreased $4.3 million compared to the prior year quarter due to lower sales from the impact of the COVID-19 pandemic. Prior to giving effect to service-related costs, consolidated gross profit as a percentage of sales was 58.1%, flat with the fourth quarter 2019 despite less sales on which to leverage fixed costs.

Selling expenses increased to $21.3 million in the fourth quarter of 2020 compared to $20.5 million in the prior year quarter due to the inclusion of $3.6 million of selling expense from Partsmaster this quarter. As a percent of sales, selling expenses declined to 21.7% in the fourth quarter of 2020 compared to 23.1% in the comparable period a year ago. Excluding Partsmaster, selling expenses declined $2.9 million or 13.9% primarily due to reduced compensation on lower sales, less travel related expenses and continued cost controls.

General and administrative expenses were $31.4 million in the fourth quarter of 2020 compared to $30.9 million in the prior year quarter. The increase in general and administrative expense was driven by the inclusion of $5.3 million from the Partsmaster acquisition, a goodwill impairment charge of $1.9 million, and increased severance expense of $0.3 million. These costs were partially offset by a $5.4 million decrease in stock-based compensation expense compared to the year ago quarter. Excluding the impact of the acquisition, stock-based compensation, severance, goodwill impairment and acquisition related costs, general and administrative expenses decreased by $1.5 million or 7.5% due to cost control actions taken throughout the year.

The Company's operating loss of $0.7 million in the fourth quarter of 2020 improved by $3.8 million compared to a reported operating loss of $4.5 million in the prior year quarter. Adjusted non-GAAP operating income increased 18.6% to $6.9 million in the fourth quarter of 2020 from $5.8 million in the prior year quarter. (See reconciliation in Table 2) For the quarter, adjusted EBITDA was $9.0 million or 9.1% of sales compared to $7.3 million or 8.3% of sales in the prior year quarter. (See reconciliation in Table 1)

Reported net income for the fourth quarter of 2020 was $0.2 million, or $0.02 per diluted share compared to a net loss of $3.0 million, or $0.34 per diluted share, in the fourth quarter of 2019. Adjusted net income improved to $5.6 million or $0.60 per diluted share compared to $4.3 million or $0.48 per diluted share a year ago. (See reconciliation in Table 2)

Full Year 2020 Results

Net sales were $351.6 million compared to $370.8 million in 2019, a decline of 5.2%. Sales were negatively impacted by the COVID-19 pandemic partially offset by the acquisition of Partsmaster which contributed $22.6 million in sales during 2020. While all customer categories were impacted, the most significant decline occurred in the second quarter at the onset of the pandemic. By the end of the year, organic Lawson average daily sales have recovered 38% over April's lows and were at approximately 92% of pre-pandemic levels.

Reported operating income in 2020 was $20.6 million compared to $9.1 million in 2019. The increase in operating income was driven by a decrease of $15.8 million in stock-based compensation expense compared to the prior year and the acquisition of Partsmaster offset by the impact of the COVID-19 pandemic. Adjusted non-GAAP operating income was $27.4 million in 2020 compared to $28.6 million in the prior year. For the year, adjusted EBITDA was $34.1 million or 9.7% of sales compared to $34.5 million or 9.3% a year ago. (See table above and reconciliation in Table 1)

Reported net income for 2020 was $15.1 million or $1.62 per diluted share compared to net income of $7.2 million, or $0.77 per diluted share in 2019. Adjusted non-GAAP net income was $20.1 million or $2.16 adjusted diluted earnings per share compared to $21.8 million or $2.33 per diluted share in 2019. (See table above and reconciliation in Table 2)

Cash Flow and Cash Position

The Company ended the year with $28.4 million of cash and cash equivalents on hand and generated $32.5 million of operating cash flows for the year. Additionally, we have $66.0 million of availability under our $100.0 million committed credit facility which is net of the letter of credit securing the $33.0 million payment due in May 2021 to the sellers of Partsmaster. We intend to fund the final payment to the sellers using cash-on-hand and availability under our credit facility for any remaining portion.

Capital expenditures for the year of $1.7 million were primarily for improvements to distribution centers and information technology. During the first quarter of 2020 we repurchased 47,504 shares of our common stock, on the open market, at an average purchase price of $36.93.

Conference Call

Lawson Products, Inc. will conduct a conference call with investors to discuss fourth quarter 2020 results at 9:00 a.m. Eastern Time on February 25, 2021. The conference call is available by direct dial at 1-877-737-7051 in the U.S. or 1-201-689-8878 from outside of the U.S. A replay of the conference call will be available approximately two hours after completion of the call through March 31, 2021. Callers can access the replay by dialing 1-877-481-4010 in the U.S. or 1-919-882-2331 outside the U.S. The PIN access number for the replay is 39783#. A streaming audio of the call and an archived replay will also be available on the investor relations page of Lawson's website through March 31, 2021.

About Lawson Products, Inc.

Founded in 1952, Lawson Products, Inc., headquartered in Chicago, IL, sells and distributes specialty products to the industrial, commercial, institutional and government maintenance, repair and operations market (MRO). The Company is dedicated to helping customers in the U.S. and Canada lower their total cost of operation by increasing productivity and efficiency. The combination of Lawson and Partsmaster's Managed Inventory process and the Company’s problem-solving professionals ensures customers always have the right parts to handle the job. Through The Bolt Supply House, customers in Western Canada have access to products at several branch locations. Under its Kent Automotive brand, the Company provides collision and mechanical repair products to the automotive aftermarket.

Lawson Products ships from several strategically located distribution centers to customers in all 50 states, Puerto Rico, Canada, Mexico, and the Caribbean.

For additional information, please visit https://www.lawsonproducts.com or https://www.kent-automotive.com.

This Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. The terms "may," "should," "could," "anticipate," "believe," "continues," "estimate," "expect," "intend," "objective," "plan," "potential," "project" and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These statements are based on management's current expectations, intentions or beliefs and are subject to a number of factors, assumptions and uncertainties that could cause or contribute to such differences or that might otherwise impact the business and include the risk factors set forth in Item 1A of the December 31, 2019, Form 10-K filed on February 27, 2020. The Company undertakes no obligation to update any such factor or to publicly announce the results of any revisions to any forward-looking statements whether as a result of new information, future events or otherwise.

Lawson Products, Inc.

Condensed Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)

   

 

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

Net sales

 

$

98,133

 

 

$

88,566

 

 

$

351,591

 

 

$

370,785

 

Cost of goods sold

 

 

46,054

 

 

 

41,752

 

 

 

165,053

 

 

 

173,431

 

Gross profit

 

 

52,079

 

 

 

46,814

 

 

 

186,538

 

 

 

197,354

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling expenses

 

 

21,330

 

 

 

20,478

 

 

 

76,775

 

 

 

85,342

 

General & administrative expenses

 

 

31,407

 

 

 

30,883

 

 

 

89,213

 

 

 

102,946

 

Operating expenses

 

 

52,737

 

 

 

51,361

 

 

 

165,988

 

 

 

188,288

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

(658

)

 

 

(4,547

)

 

 

20,550

 

 

 

9,066

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(325

)

 

 

(122

)

 

 

(654

)

 

 

(603

)

Other income, net

 

 

874

 

 

 

413

 

 

 

889

 

 

 

1,211

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

(109

)

 

 

(4,256

)

 

 

20,785

 

 

 

9,674

 

Income tax expense (benefit)

 

 

(332

)

 

 

(1,250

)

 

 

5,672

 

 

 

2,453

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

223

 

 

$

(3,006

)

 

$

15,113

 

 

$

7,221

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per share of common stock

 

$

0.02

 

 

$

(0.34

)

 

$

1.68

 

 

$

0.81

 

 

 

 

 

 

 

 

 

 

Diluted income (loss) per share of common stock

 

$

0.02

 

 

$

(0.34

)

 

$

1.62

 

 

$

0.77

 

 

Lawson Products, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands, except unaudited share data)

(Unaudited)

 

 

 

December 31,
2020

 

December 31,
2019

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

28,393

 

 

$

5,495

 

Restricted cash

 

 

998

 

 

 

802

 

Accounts receivable, less allowance for doubtful accounts

 

 

44,515

 

 

 

38,843

 

Inventories, net

 

 

61,867

 

 

 

55,905

 

Miscellaneous receivables and prepaid expenses

 

 

7,289

 

 

 

5,377

 

Total current assets

 

 

143,062

 

 

 

106,422

 

 

 

 

 

 

Property, plant and equipment, net

 

 

15,800

 

 

 

16,546

 

Deferred income taxes

 

 

18,482

 

 

 

21,711

 

Goodwill

 

 

35,176

 

 

 

20,923

 

Cash value of life insurance

 

 

16,185

 

 

 

14,969

 

Intangible assets, net

 

 

18,503

 

 

 

12,335

 

Right of use assets

 

 

8,764

 

 

 

11,246

 

Other assets

 

 

332

 

 

 

277

 

Total assets

 

$

256,304

 

 

$

204,429

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accrued acquisition liability

 

$

32,673

 

 

$

 

Accounts payable

 

 

22,262

 

 

 

13,789

 

Lease obligation

 

 

4,568

 

 

 

3,830

 

Accrued expenses and other liabilities

 

 

38,492

 

 

 

39,311

 

Total current liabilities

 

 

97,995

 

 

 

56,930

 

 

 

 

 

 

Revolving line of credit

 

 

 

 

 

2,271

 

Security bonus plan

 

 

11,262

 

 

 

11,840

 

Lease obligation

 

 

5,738

 

 

 

9,504

 

Deferred compensation

 

 

10,461

 

 

 

6,370

 

Deferred tax liability

 

 

2,841

 

 

 

6,188

 

Other liabilities

 

 

5,585

 

 

 

3,325

 

Total liabilities

 

 

133,882

 

 

 

96,428

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock, $1 par value:

 

 

 

 

Authorized - 500,000 shares, issued and outstanding — None

 

 

 

 

 

 

Common stock, $1 par value:

 

 

 

 

Authorized - 35,000,000 shares

 

 

 

 

Issued – 9,287,625 and 9,190,171 shares, respectively

Outstanding – 9,061,039 and 9,043,771 shares, respectively

 

9,288

 

 

9,190

 

Capital in excess of par value

 

 

19,841

 

 

 

18,077

 

Retained earnings

 

 

101,609

 

 

 

86,496

 

Treasury stock – 226,586 and 146,400 shares held, respectively

 

 

(9,015

)

 

 

(5,761

)

Accumulated other comprehensive loss

 

 

699

 

 

 

(1

)

Total stockholders’ equity

 

 

122,422

 

 

 

108,001

 

Total liabilities and stockholders’ equity

 

$

256,304

 

 

$

204,429

 

LAWSON PRODUCTS, INC.

REGULATION G GAAP RECONCILIATIONS

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, the Company's management believes that certain non-GAAP financial measures may provide users of this financial information with additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain infrequently occurring, seasonal or non-operational items that impact the overall comparability. See Tables 1 and 2 below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and twelve months ended December 31, 2020 and 2019. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

Table 1 - Reconciliation of GAAP Operating Income (Loss) to Adjusted Non-GAAP Operating Income and EBITDA

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

December 31,

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

Operating (loss) income as reported per GAAP (1)

 

$

(658

)

 

$

(4,547

)

 

$

20,550

 

$

9,066

 

 

 

 

 

 

 

 

 

Stock-based compensation (2)

 

 

4,776

 

 

 

10,167

 

 

 

2,009

 

 

17,788

 

 

 

 

 

 

 

 

 

Severance expense (3)

 

 

557

 

 

 

214

 

 

 

2,077

 

 

1,756

 

 

 

 

 

 

 

 

 

Goodwill impairment (4)

 

 

1,918

 

 

 

 

 

 

1,918

 

 

 

 

 

 

 

 

 

 

 

Acquisition related costs (5)

 

 

325

 

 

 

 

 

 

880

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-GAAP operating Income

 

 

6,918

 

 

 

5,834

 

 

 

27,434

 

 

28,610

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

2,041

 

 

 

1,492

 

 

 

6,701

 

 

5,893

 

 

 

 

 

 

 

 

 

Non-GAAP adjusted EBITDA

 

$

8,959

 

 

$

7,326

 

 

$

34,135

 

$

34,503

(1)

 

Partsmaster acquisition contributed $0.1 million of GAAP income in the fourth quarter 2020 and $0.5 million of GAAP  operating income in the full year 2020.

(2)

 

Expense for stock-based compensation, of which a portion varies with the Company's stock price

(3)

 

Includes severance expense from actions taken in 2020 and 2019 along with 2020 severance and retention costs related to the Partsmaster acquisition.

(4)

 

Represents the goodwill impairment related to the 2018 acquisition of Screw Products, Inc. as the carrying value of the reporting unit exceeded its estimated fair value.

(5)

 

Primarily legal and accounting costs pertaining to the acquisition of Partsmaster.

 

Table 2 - Reconciliation of GAAP Net Income (Loss) and Diluted EPS to Non-GAAP Adjusted Net Income and Adjusted Diluted EPS (Unaudited)

(Dollars in thousands, except per share amounts)

 

Three Months Ended December 31,

 

 

2020

 

2019

 

 

Amount

 

Diluted EPS (2)

 

Amount

 

Diluted EPS (2)

Net Income (loss) as reported per GAAP

 

$

223

 

 

$

0.02

 

 

$

(3,006

)

 

$

(0.34

)

 

 

 

 

 

 

 

 

 

Pretax adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

4,776

 

 

 

0.51

 

 

 

10,167

 

 

 

1.13

 

 

 

 

 

 

 

 

 

 

Severance expense

 

 

557

 

 

 

0.06

 

 

 

214

 

 

 

0.03

 

 

 

 

 

 

 

 

 

 

Goodwill impairment

 

 

1,918

 

 

 

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition related costs

 

 

325

 

 

 

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjustments

 

 

7,576

 

 

 

0.81

 

 

 

10,381

 

 

 

1.16

 

 

 

 

 

 

 

 

 

 

Tax effect on adjustments (1)

 

 

(2,227

)

 

 

(0.23

)

 

 

(3,052

)

 

 

(0.34

)

 

 

 

 

 

 

 

 

 

Total adjustments, net of tax

 

 

5,349

 

 

 

0.58

 

 

 

7,329

 

 

 

0.82

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjusted net income

 

$

5,572

 

 

$

0.60

 

 

$

4,323

 

 

$

0.48

 

(1)

 

Tax effected at effective tax rate of 29.4% for 2020 and 29.4% for 2019, excluding discrete items

(2)

 

Pretax adjustments to diluted EPS calculated on 9.336 million and 8.961 million of diluted shares for 2020 and 2019, respectively

 

(Dollars in thousands, except per share amounts)

 

Twelve Months Ended December 31,

 

 

2020

 

2019

 

 

Amount

 

Diluted EPS (2)

 

Amount

 

Diluted EPS (2)

Net Income as reported per GAAP

 

$

15,113

 

 

$

1.62

 

 

$

7,221

 

 

$

0.77

 

 

 

 

 

 

 

 

 

 

Pretax adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

2,009

 

 

 

0.22

 

 

 

17,788

 

 

 

1.90

 

 

 

 

 

 

 

 

 

 

Severance expense

 

 

2,077

 

 

 

0.22

 

 

 

1,756

 

 

 

0.18

 

 

 

 

 

 

 

 

 

 

Goodwill impairment

 

 

1,918

 

 

 

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition related costs

 

 

880

 

 

 

0.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax adjustments

 

 

6,884

 

 

 

0.74

 

 

 

19,544

 

 

 

2.08

 

 

 

 

 

 

 

 

 

 

Tax effect on adjustments (1)

 

 

(1,879

)

 

 

(0.20

)

 

 

(4,964

)

 

 

(0.52

)

 

 

 

 

 

 

 

 

 

Total adjustments, net of tax

 

 

5,005

 

 

 

0.54

 

 

 

14,580

 

 

 

1.56

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjusted net income

 

$

20,118

 

 

$

2.16

 

 

$

21,801

 

 

$

2.33

 

(1)

 

Tax effected at effective tax rate of 27.3% for 2020 and 25.4% for 2019

(2)

 

Pretax adjustments to diluted EPS calculated on 9.331 million and 9.376 million of diluted shares for 2020 and 2019, respectively

 

Lawson Products Core Business

Table 3 - Quarterly Data (Unaudited)

Historical Lawson Segment Sales Representative and Productivity Information

 

 

 

 

 

(Dollars in thousands)

 

 

Three Months Ended

 

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

 

Dec. 31

2020

 

2020

 

2020

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

Number of business days

 

 

61

 

 

 

64

 

 

 

64

 

 

 

64

 

 

 

61

 

 

 

 

 

 

 

 

 

 

 

 

Average daily net sales (1)

 

$

1,439

 

 

$

1,240

 

 

$

979

 

 

$

1,265

 

 

$

1,279

 

Year over year increase (decrease)

 

 

12.5

%

 

 

(4.2

)%

 

 

(25.6

)%

 

 

(2.5

)%

 

 

1.7

%

Sequential quarter increase (decrease)

 

 

16.0

%

 

 

26.7

%

 

 

(22.6

)%

 

 

(1.1

)%

 

 

(1.2

)%

 

 

 

 

 

 

 

 

 

 

 

Average active sales rep count (2)

 

 

1,099

 

 

 

993

 

 

 

957

 

 

 

998

 

 

 

1,002

 

Period-end active sales rep count

 

 

1,090

 

 

 

1,120

 

 

 

938

 

 

 

993

 

 

 

1,006

 

 

 

 

 

 

 

 

 

 

 

 

Sales per rep per day

 

$

1.309

 

 

$

1.249

 

 

$

1.023

 

 

$

1.268

 

 

$

1.276

 

Year over year increase (decrease)

 

 

2.6

%

 

 

(4.6

)%

 

 

(23.8

)%

 

 

(3.1

)%

 

 

0.3

%

Sequential quarter increase (decrease)

 

 

4.8

%

 

 

22.1

%

 

 

(19.3

)%

 

 

(0.6

)%

 

 

(2.5

)%

(1)

 

Quarters ended December 31, 2020 and September 30, 2020 include Partsmaster revenue of $17.2 million and $5.4 million, respectively, and weighted average reps counts of 196 and 67.

(2)

 

Average active sales representative count represents the average of the month-end sales representative counts

 

Lawson Products, Inc.

Table 4 - Consolidated Quarterly Results (Unaudited)

 

 

 

 

 

(Dollars in thousands)

 

 

Three Months Ended

 

 

Dec. 31

 

Sep. 30

 

Jun. 30

 

Mar. 31

 

Dec. 31

2020

 

2020

 

2020

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

Average daily net sales

 

$

1,609

 

 

$

1,411

 

 

$

1,127

 

 

$

1,422

 

 

$

1,452

 

Year over year increase (decrease)

 

 

10.8

%

 

 

(4.7

)%

 

 

(25.0

)%

 

 

(1.9

)%

 

 

2.7

%

Sequential quarter increase (decrease)

 

 

14.0

%

 

 

25.2

%

 

 

(20.7

)%

 

 

(2.1

)%

 

 

(2.0

)%

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

98,133

 

 

$

90,277

 

 

$

72,146

 

 

$

91,035

 

 

$

88,566

 

Gross profit

 

 

52,079

 

 

 

47,225

 

 

 

38,313

 

 

 

48,921

 

 

 

46,814

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit percentage

 

 

53.1

%

 

 

52.3

%

 

 

53.1

%

 

 

53.7

%

 

 

52.9

%

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative expenses

 

$

52,737

 

 

$

45,224

 

 

$

37,744

 

 

$

30,283

 

 

$

51,361

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

$

(658

)

 

$

2,001

 

 

$

569

 

 

$

18,638

 

 

$

(4,547

)

 

Contacts

Investor Relations:
Lawson Products, Inc.
Ronald J. Knutson
Executive Vice President, Chief Financial Officer
773-304-5665

Release Summary

Lawson Products Reports Fourth Quarter and 2020 Year End Results

Contacts

Investor Relations:
Lawson Products, Inc.
Ronald J. Knutson
Executive Vice President, Chief Financial Officer
773-304-5665