SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) : April 17, 2003
LAWSON PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-10546 36-2229304
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) No.)
1666 East Touhy Avenue, Des Plaines, Illinois 60018
(Address of principal executive offices) (Zip code)
(Registrant's telephone number, including area code) (847) 827-9666
(Former name or former address, if changed since last report) Not Applicable
Lawson Products, Inc.
Current Report of Form 8-K
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99.1 Press release issued by Lawson Products, Inc. on April 17, 2003.
Item 9. Results of Operations and Financial Condition.
This Current Report on Form 8-K is being furnished pursuant to Item 12
of Form 8-K, in accordance with interim procedures promulgated by the
SEC in Release No. 34-47583. See Item 12 below.
Item 12. Results of Operations and Financial Condition.
On April 17, Lawson Products, Inc. issued a press release announcing
its operating results for the fiscal quarter ended March 31, 2003. A
copy of the press release is attached as Exhibit 99.1 to this Form 8-K.
The information in this Form 8-K is being furnished and shall not be
deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934 or otherwise subject to the liabilities of that Section. The information in
this Form 8-K may only be incorporated by reference in another filing under the
Securities Exchange Act or Securities Act of 1933 if such subsequent filing
specifically references this Form 8-K.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LAWSON PRODUCTS, INC.
/s/ Joseph L. Pawlick
---------------------------
Joseph L. Pawlick
Date: April 17, 2003 Chief Financial Officer
EXHIBIT INDEX
NUMBER DESCRIPTION
- ------ -----------
99.1 Press release issued by Lawson Products, Inc. on April 17, 2003.
Exhibit 99.1
PRESS RELEASE Source: Lawson Products, Inc.
Lawson Products Reports First Quarter Results
Thursday April 17, 9:00 am ET
DES PLAINES, Ill., April 17 /PRNewswire-FirstCall/ -- Lawson Products, Inc.
(Nasdaq: LAWS - News) reported net sales of $96.1 million for the first quarter
of 2003, an increase of .3% over net sales of $95.7 million for the first
quarter of 2002. For the quarter, the MRO segments recorded net sales of $79.4
million, compared to $79.7 million for last year's first quarter. Net sales for
the OEM segments increased 3.4% to $16.6 million versus $16.1 million in the
first quarter of last year.
Net income for the first quarter of 2003 was $3.76 million compared to $3.83
million recorded in the same quarter of last year. Net income per share was
$.40, the same as the first quarter of last year.
For the first quarter of 2003, the Company experienced an increase of 3.3% in
pre-tax income compared to the same period in 2002. The increase was
attributable to the expiration in March, 2002, of a special promotional program
and to the Company's continuing efforts to contain costs, partially offset by an
increase in the cost of goods sold percentage and higher healthcare costs.
However, the first quarter of 2003 was impacted by a higher effective tax rate,
resulting in a 1.9% decline in net income.
Robert J. Washlow, Chairman of the Board and CEO, said, "In a challenging
environment, our business for the quarter kept pace, and pre-tax earnings
improved. Through the continued support of our sales teams and our efforts to
make our operations more efficient, we expect to improve sales levels and
achieve growth in earnings as the year progresses."
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, including Mr. Washlow's statements, contains 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, effectiveness of our sales and marketing programs, or an economic
downturn.
LAWSON PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED SUMMARY OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31,
2003 2002 % Change
Net Sales $96,075,110 $95,745,609 0.3%
Income
Before Taxes (a) 6,621,171 6,409,831 3.3%
Provision for Income Taxes 2,863,000 2,578,000
Net Income (a) 3,758,171 3,831,831 -1.9%
Net Income per share of Common Stock:
Basic $0.40 $0.40
Diluted $0.40 $0.40
Weighted Average Shares Outstanding:
Basic 9,492,236 9,626,607
Diluted 9,511,473 9,656,648
(a) The Company used estimated gross profit rates in 2002 to determine
inventories and cost of goods sold during interim periods.
Source: Lawson Products, Inc.