Lawson Products reported sales, including fasteners, increased 7.8% to $75.7 million in the third quarter of 2017. Average daily sales grew 9.5% to $1.2 million.

The Chicago-based distributor said sales were positively impacted by the 11% increase in sales rep productivity, the effect of acquisitions completed in 2016 and continuing improvement in the MRO marketplace. Previous acquisitions contributed 1% of the sales increase for the quarter.

Year to date average daily sales were up 8.2% over the prior year.

“We recently announced our fifth and largest acquisition in 24 months adding $34.0 million to our consolidated sales,” stated CEO Michael DeCata. “With the acquisition of The Bolt Supply House Ltd., headquartered in Calgary, Alberta we gained 27 experienced sales representatives, 13 branch locations, and a 43,000 square-foot distribution center in Calgary.

“Additionally, this acquisition allows the Lawson and Kent business to benefit through shortened customer delivery time by leveraging Bolt Supply’s western Canada presence.”

Q3 gross profit as a percent of sales increased to 60.8% from 60.6%. Gross profit dollars increased 8.1% to $46 million, driven by higher sales and vendor related initiatives.

Selling expenses increased 3.4% to $24.4 million due primarily to an increase in compensation costs resulting from higher sales, partially offset by lower health insurance expenses.

Q3 net income dropped 28% to $1.3 million.

Sales during the first nine months of 2017 rose 7.6% to $225.3 million, with gross profit gaining 6.6% to $136 million. Nine-month net income more than tripled to $9.45 million. Web: LawsonProducts.com