Lawson Products Reports Quarterly Results
DES PLAINES, Ill., Oct. 21 /PRNewswire-FirstCall/ --
Lawson Products, Inc. (Nasdaq: LAWS) today reported results for the third
quarter and nine months ended September 30, 2002. Third quarter 2002 net
income increased 13.5% over the third quarter of 2001 to $3.8 million. Net
income per share at $.39 was 14.7% over the same period last year. Net sales
for the quarter were $98.5 million, a decrease of 1.5% compared to the same
period a year ago.
For the nine-month period ended September 30, 2002, net income increased 16.6% from the prior year to $12.3 million. Diluted net income per share increased 18.5% to $1.28. Net sales increased 4.1% over 2001 to
$294.1 million. The increased sales in the nine-month period reflect sales generated by sales representatives who joined the Company as part of the acquisition of certain assets of Premier Industrial on March 30, 2001.
For the third quarter, the absence of costs linked to the Premier acquisition, cost containment efforts, discontinuance of goodwill amortization, and a decrease in interest expense were responsible for the increase in net income. For the nine-month period, those factors, along with increased sales and a lower effective tax rate, were responsible for the improvement in net income.
For the third quarter of 2002, the domestic MRO segment, which accounted for 79% of the Company's revenue, experienced a 3% decline in net sales. Net sales of the OEM and International segments increased 3% and 12%, respectively. For the nine-month period, domestic MRO sales increased 2%. Sales by the OEM and International segments increased 9% and 25%, respectively.
Lawson Products is an international seller and distributor of systems, services and products to the industrial, commercial and institutional maintenance, repair and replacement marketplace. The Company also manufactures, sells and distributes production and specialized component parts to the original equipment marketplace, including the automotive, appliance, aerospace, construction and transportation industries.
This press release may contain historical information and forward-looking
statements and opinions. Statements looking forward in time are included in
this press release pursuant to the safe harbor
provision of the Private
Securities Litigation Reform Act of 1995. These statements are based on
management's current expectations or beliefs and are subject to a number of
factors and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. The factors that
could cause actual results to differ materially from those described in the
forward-looking statements include increased competition, seasonality, or an
economic downturn.
LAWSON PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED SUMMARY OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 % Change 2002 2001 % Change
Net Sales $98,473,865 $99,999,682 -1.5% $294,110,197 $282,629,523 4.1%
Income
Before
Taxes (a) 6,628,489 5,837,443 13.6% 21,094,204 18,589,786 13.5%
Provision
for Income
Taxes 2,869,000 2,525,000 8,807,000 8,051,000
Net Income
(a) $3,759,489 $3,312,443 13.5% $12,287,204 $10,538,786 16.6%
Net Income
per share of
Common Stock:
Basic $0.39 $0.34 14.7% $1.28 $1.09 17.4%
Diluted $0.39 $0.34 14.7% $1.28 $1.08 18.5%
Weighted Average
Shares
Outstanding:
Basic 9,550,908 9,685,520 9,592,807 9,700,381
Diluted 9,576,114 9,714,872 9,618,654 9,726,165
(a) The Company uses estimated gross profit rates to determine inventories
and cost of goods sold during interim periods.
Make Your Opinion Count - Click Here
http://tbutton.prnewswire.com/prn/11690X57651442
SOURCE Lawson Products, Inc.
-0- 10/21/2002
/CONTACT: Joseph L. Pawlick, Chief Financial Officer of Lawson Products, Inc., +1-847-827-9666/
(LAWS)
CO: Lawson Products, Inc.
ST: Illinois
IN: MAC
SU: ERN
JK-MF
-- CGM008 --
5907 10/21/2002 09:00 EDT http://www.prnewswire.com