Lawson Products reports sales, including fasteners, rose 20.5% to $90.4 million in the second quarter of 2018. Average daily sales increased 21.3% to $1.41 million, boosted by $9.8 million from the inclusion of the Bolt Supply acquisition and a 9.1% improvement in Lawson’s sales per rep per day productivity.

Organic Lawson segment average daily sales, excluding the Bolt Supply House, increased 7.5% compared to the prior year quarter “driven by the sixth consecutive quarterly increase in sales rep productivity, which increased 9.1% for the quarter.”

Bolt Supply, which was acquired in October 2017, added $9.8 million of sales and $0.9 million of adjusted EBITDA in Q2.

Operating income declined 29% to $5.6 million. Non-GAAP adjusted EBITDA gained 71% to $7.7 million. Adjusted EBITDA was $6.8 million, up 50%.

“Demand for our value-added MRO services remained robust in the second quarter as evidenced by the increase in our average daily sales,” said CEO Michael DeCata. “The 20.5% sales increase was largely driven by improved Lawson sales rep productivity as well as the inclusion of Bolt Supply.”

Second quarter gross profit increased 8.9% to $49.1 million, primarily due to increased sales and the acquisition of Bolt Supply, offset by $3.4 million due to the adoption of the new revenue recognition accounting standard.

Sales during the first six months of 2018 increased 16% to $174.8 million, with gross profit up 5.5% to $95.3 million and net income down 45% to $4.4 million. Web: LawsonProducts.com