2020
Lawson Products sales declined slightly to $91 million in the first quarter of 2020, reflecting a 3.1% decrease in the Lawson segment sales rep productivity driven by decreases within government and core customers late in the quarter, offset by positive growth within our strategic and Kent Automotive customers. 

Sales within The Bolt Supply House segment, which represents approximately 11% of consolidated sales, increased 7.5%, reflecting strength across multiple product categories and new customers.  Average daily sales decreased to $1.42 million.

“The second half of March was noticeably affected by the COVID-19 situation,” the company stated.

Q1 gross profit was flat at $48.9 million.  Consolidated gross profit as a percentage of sales edged up to 53.7%.  Operating income more than tripled to $18.6 million, while net income jumped to $12.5 million.

 

2019
For 2019, sales increased 6% to $370.8 million, impacted by a 13.3% improvement in Bolt Supply sales spread across multiple product categories.  Average daily sales improved 5.6% to $1.471 million.

Operating income in 2019 edged down to $9.1 million.  Adjusted non-GAAP operating income improved 55.5% to $28.6 million.  Net income rose 16% to $7.2 million.

 

2018
Lawson Products reported sales, including fasteners, increased 14.3% to $349.6 million in 2018. Operating income fell 7.2% to $9.2 million.

“Our 2018 growth was achieved through broad-based demand within the Lawson segment in all customer and product categories, a full year of The Bolt Supply House included in our results and the completion of our sixth acquisition in three years at the beginning of the quarter,” stated CEO Michael DeCata.

Q4 sales increased 19.8% to $80.6 million. Average daily sales grew 17.8% to $1.32 million. Q4 gross profit increased 16% to $47 million, while margins declined slightly to 58.3%.

During 2018, Lawson Products acquired Screw Products Inc. Based in Dallas, SPI distributes bulk industrial products to large manufacturers and job shops. SPI provides fastener and components packaging, sub-assembly and kitting services.

2017
Lawson Products reported sales, including fasteners, increased 10.6% to $305.9 million in 2017. Operating income rose to $9.9 million.

“We finished 2017 with a 17.8% increase in average daily sales driven by both acquired revenue and a 6.1% growth within our Lawson business segment that helped drive our annual 2017 operating income to $9.9 million,” stated CEO Michael DeCata. “The sales growth was driven by an 8.3% increase in sales per rep per day in the Lawson segment and the acquisition of The Bolt Supply House.

“This acquisition, being our largest to date, was an important step in pursuing our growth strategy of acquiring companies that significantly add to our revenue and leverage our infrastructure.”

Q4 sales increased 19.8% to $80.6 million. Average daily sales grew 17.8% to $1.32 million.

Q4 gross profit increased 16% to $47 million, while margins declined slightly to 58.3%.

 

2016
Lawson Products reported sales, including fasteners, increased 0.25% to $276.6 million in 2016. Gross profit declined 0.6% to $168.1 million.

“Our business improved as 2016 came to a close,” stated CEO Michael DeCata.

“Fourth quarter average daily sales increased 5.4% from a year ago and also grew over the immediately preceding quarter. We are seeing evidence in our sales results that we are beginning to grow our way out of the previous downward cycle of the MRO marketplace. It appears the economic headwinds we have faced have begun to subside.”

Average daily sales increased 5.4% to $1.122 million in Q4. Total Q4 sales rose 3.6% to $67.3 million. Gross margin was unchanged at 60.2%.

Q4 sales benefited from growth in strategic, Kent Automotive and government accounts, as well as $800,000 contribution from 2016 acquisitions.


2015
Lawson Products reported sales, including fasteners, declined 3.1% to $69.7 million in the first quarter of 2016.

“Sales were impacted by a general slow-down in the MRO marketplace, continued weak demand from customers in the oil and gas industry and a decline in the Canadian dollar from a year ago,” the company stated.

Q1 operating income increased to $1.2 million compared to an operating loss of $900,000 in the first quarter of 2015. Net income fell 28% to $1 million.

During Q1 Lawson Products completed the acquisition of Perfect Products Co. of Michigan. The acquisition adds four sales reps to Lawson’s sales team.

Lawson Products reported net sales, including fasteners, declined 3.5% to $275.8 million in 2015.Average daily sales declined 3% to $1.06 million.

Sales during the first nine months of 2015 fell 2.1% to $210.9 million, while gross profit edged higher.

Fastening systems accounted for 21% of revenue.


2014
Lawson Products Inc. partnered with The Cooperative Purchasing Network to provide MRO supplies to government nationwide. Lawson’s TCPN contract includes: Fasteners, safety, electrical, HVAC, tools, fluid power, shop supplies, welding, chemicals, material handling and automotive.

“Our partnership with TCPN will enable Lawson to better serve the public sector and will allow Lawson to bring much needed product and service standards to our new partners, helping them to be even more efficient and productive,” said Lawson director of government contracts Jodi Peterson-Cooper.

Lawson Products reported net sales, including fasteners, increased 6% to $285.7 million in 2014.Average daily sales grew 6.1% to $1.134 million, primarily to an increase in sales of 10% in its national accounts and 16% in its Kent Automotive division.

Fastening systems accounted for 21% of Lawson Products revenue in 2014.

In early 2014 Lawson Products divested its major fastener holdings by selling Decatur, AL-based Automatic Screw Machine Products Co. for net proceeds of $12.1 million. The transaction closed on February 14.

Automatic Screw Machine Products – now called Automatic SMP – manufactures fasteners for aerospace/defense, heavy equipment, electrical transportation, and marine industries. Customers include Caterpillar.

Lawson Products reported net sales, including fasteners, increased 3% to $69.2 million in the first quarter of 2014. Average daily sales increased 3% to $1.09 million, while gross profit edged up to 59.6%.

Fastening systems revenue contributed 21% of overall sales in 2013.

Sales in the U.S. dropped 1.7% to $241.1 million, while sales in Canada were flat at $28.4 million.


2013
Lawson Products reported 2013 sales, including fasteners, decreased 1.5% to $269.5 million, with an operating loss of $5.9 million compared to a $45.3 million loss the previous year. Net income was a loss of $5.1 million compared to a $62.5 million loss in 2012.

During the final quarter of 2013 Lawson Products agreed to sell its wholly owned subsidiary, Automatic Screw Machine Products Company, Inc., for $12.5 million. The transaction closed on February 14, 2014, and the net proceeds were utilized to pay down existing debt.

Lawson Products reported sales for the fourth quarter of 2013 grew 1.8% to $65.7 million.

Q4 average daily sales increased 2% to $1.078 million. Sales rep headcount increased by 22 reps from the end of the third quarter of 2013 to the end of the fourth quarter of 2013.

The operating loss of $3 million for Q4 resulted from a non-recurring $1.6 million gain on the sale of assets in 2012 and non-recurring charges of $2.9 million.

The company reported a Q4 net loss of $2.9 million, or $0.33 per diluted share, as compared to income of $1.7 million, or $0.20 per diluted share, for the same period the previous year.


2012
Lawson Products reported net sales, including fasteners, declined for a second straight year, falling 7% to $290.5 million during 2012. Net income declined to a loss of $62.5 million.

Fastening systems revenue contributed 22% of overall sales in 2012.

MRO sales dropped 9% to $273.6 million, with gross profit slipping 11% to $157.4 million.OEM sales rose 15.7% to $16.9 million, while gross profit rose 30% to $3.7 million.

Overall gross profit decreased 10% to $161.2 million, hurt by rising vendor costs, outbound freight charges and rising labor costs.

Lawson Products reported sales declined 4.5% to $72 million in the third quarter of 2012, driven by increased vacant sales territories and lower freight revenues.

Q3 operating income totaled $100,000 prior to severance – an improvement of $2.8 million over the prior year. The $1.4 million severance expense was primarily related to the retirement of former CEO Thomas Neri, who was replaced on October 1 by Michael G. DeCata.

Third quarter gross profit improved 0.2% to $43.4 million, with the gross margin percentage increasing to 60.2% from 56.5% for the year-ago quarter.

Net loss for the third quarter of 2012 was $1.3 million, or $0.15 per diluted share, compared to a net loss $2.2 million, or $0.25 per diluted share, in the prior year period.

Third quarter initiatives included the integration of the first of three Illinois facilities into its facility in McCook, IL. The Company expects to integrate the other two facilities over the next two quarters, making the McCook facility the hub of Lawson’s distribution network.

Lawson is also transitioning its independent agents in the U.S. to employees, a process that should be completed in the first quarter of 2013.

DeCata commented, “In the coming quarters, we will renew our emphasis on improving sales by building upon productivity enhancements, utilizing our new ERP system as our foundation for growth and restoring our sales force to a more effective level,” stated new CEO Michael DeCata.

Sales during the first nine months of 2012 declined 8.1% to $222.3 million, with gross profit dropping 13.7% to $121.5 million. Lawson reported an operating loss of $45.6 million for the nine-month period.

In late June Lawson Products announced plans to eliminate 100 jobs — 11% of its workforce — as part of restructuring efforts to stay competitive in what it called a “fragmented” MRO industry.

The cuts include elimination of several senior executive positions, including the open COO position, but will not reduce Lawson’s sales force.

Other cost-cutting measures include rationalizing inventory and reducing travel, marketing and outbound freight expenses.

Collectively the reductions are expected to save Lawson Products about $20 million annually.

Lawson Products saw sales fall 11.6% to $74.3 million in the second quarter of 2012 based on “a decline of $3.8 million in government sales primarily due to military bases that support troop deployment, lower freight revenues, increased attrition among smaller customers and a decline in sales representatives.” During the second quarter the company reported an operating loss of $41.4 million and a net loss of $61.1 million.

Six-month revenue declined 9.8% to $150.3 million, with a net loss of $62.9 million for the period.


2011
Calling 2011 a “transformational” year, Lawson Products reported net sales, including fasteners, declined 0.6% to $314.9 million during 2011. Net income declined to a loss of $4.62 million.

Fastening systems revenue contributed 21% of overall sales in 2011.

MRO sales dropped 0.9% to $300.4 million, with gross profit slipping 8.1% to $176.9 million. OEM sales rose 6.7% to $14.56 million, while gross profit rose 27.3% to $2.9 million.

Overall gross profit decreased 7.7% to $179.8 million, hurt by rising vendor costs, outbound freight charges, rising labor costs and lower margin business.

In late 2010 Lawson sold Assembly Component Systems Inc. and Rutland Tool & Supply Co. The company still owns Decatur, AL-based Automatic Screw Machine Products Co., which distributes components, fasteners, and fittings for OEMs. Automatic Screw accounted for 5% of Lawson’s net sales in 2011.


2010
Lawson Products reported net sales, including fasteners, grew 10.2% to $82.6 million during the first quarter of 2011, boosted by continued growth in the company’s national, government, and automotive segment.

Q1 operating income increased 72% to $1.6 million, while gross profit gained 7% to $49.9 million. Cash-on-hand improved to $27.2 million with no outstanding debt.

Sales during 2010 increased 5% to $316.8 million, with gross profit growing to $194.8 million and net income climbing to $6.9 million.

“During the (fourth) quarter, we… sold Rutland Tool & Supply, which generated $11 million of cash and furthers our strategic focus on growing Lawson’s core MRO business,” commented CEO Thomas Neri.

Fastening systems revenue contributed 21% of overall sales in 2010, down from 22% the previous year. MRO sales increased 4.6% to $303.1 million, with gross profit growing 4.3% to $192.5 million. OEM sales rose 13% to $13.6 million, while gross profit more than doubled to $2.28 million.


2009
Lawson Products reported revenue decreased 21.9% to $378.9 million in 2009, while gross profit fell to $217.8 million and the company’s operating loss narrowed from $20.2 million in 2008 to $5.6 million last year.

In 2009, 93% of net sales were generated in the U.S. and 7% from Canada.

Fastening systems accounted for 19% of company revenue in 2009, down from 20% the previous year.

MRO sales, including fasteners, declined 20.6% to $320.4 million, with gross profit slipping 22% to $207.1 million. Fastening systems make up 20% of MRO revenue.

OEM sales, including fasteners, dipped 28% to $58.5 million. Gross profit fell 15% to $10.6 million.

During the year Lawson closed two MRO distribution centers: Charlotte, NC and Dallas, TX. Other cost reductions included trimming its workforce by over 18%.

Lawson’s OEM segment includes Assembly Component Systems, which provides fasteners and components to durable goods manufacturers, and Automatic Screw Machine Products Co., which manufactures and distributes components, fasteners and fittings for use by OEMs.


2008
Looking to cut costs, Lawson Products said it would layoff 150 employees – about 11% of its overall workforce. Likewise, Lawson is closing its distribution center in Dallas, TX, which is expected to be shuttered by the end of the second quarter. Lawson will incur a charge of $5.5 million to $7 million. In addition, Lawson cut more than 100 sales positions.

The cuts came after Lawson reported sales dropped 5% to $485.2 million during 2008, with a net loss of $27.6 million. MRO sales, including fasteners, declined 6% to $403.5 million, with gross profit slipping 6% to $266.4 million. Fastening systems make up 20% of MRO revenue. OEM sales, including fasteners, dipped 1.7% to $81.6 million. Gross profit fell 34% to $12.6 million.


COMPANY INFO
Corporate Office: 8770 W. Bryn Mawr Ave., Suite 900, Chicago, IL 60631-3515.
Tel: 708 827-9666
Web: lawsonproducts.com
CEO: Michael DeCata
Employees: 1,770